APC 2011 Annual Report Download - page 150

148 2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
BUSINESS REVIEW
4REVIEW OF THE CONSOLIDATED FINANCIAL STATEMENTS
Adjusted EBITA by operating segment
Adjusted EBITA is defi ned as EBITA before Restructuring costs and
before Other operating income and expense (of which Acquisition,
integration and separation costs).
Power achieved an Adjusted EBITA margin of 21%, this rate is
down 0.6point compared to December31, 2010.
Infrastructure achieved an Adjusted EBITA margin of 10.4%,
stable compared to December31, 2010 (10.3%).
Industry achieved an Adjusted EBITA margin of 17.7%, down
1point compared to December31, 2010.
IT achieved an Adjusted EBITA margin of 16.2%, down 0.4point
compared to December31, 2010.
Buildings achieved an Adjusted EBITA margin of 9.3%, down
1.3point compared to December31, 2010.
Net financial income/loss
Net fi nancial income/loss is a net loss of EUR415 million at
December31, 2011, compared to EUR347million at December31,
2010.
Net fi nance costs totaled EUR301 million, up EUR19 million
compared to 2010. This increase is mainly due to a higher net
fi nancial debt.
Exchange gains and losses, including the impact of the Group’s
foreign currency hedges, was a negative effect of EUR40million in
2011, compared to an income of EUR25million in 2010.
The fi nancial component of pension plan and other post-employment
benefi t costs represents a net expense of EUR45million compared
to EUR49million in 2010.
Finally, other net fi nancial expense, in the amount of EUR37million,
can mainly be explained by bank fees linked to issuance or
settlement of credit lines.
Tax
The effective tax rate at December31, 2011 was 23.1% compared
to 24.0% at December31, 2010.
Share of profit/(losses) of associates
The share of profi t/losses of associates represents income of
EUR28million at December31, 2011. It principally comprises the
share in net income of Electroshield-Samara in Russia (EUR14million)
and the Fuji Electric joint venture in Japan (EUR12million).
Non-controlling interests
Minority interests in net income for fi nancial year 2011 totaled
EUR84million, compared to EUR76million in 2010. This represents
the share in net income attributable mainly to the minority interests
of certain Chinese companies.
Profit for the period
Net income for the period attributable to the equity holders of the
parent company amounted to EUR1,820million, a EUR100million
increase over 2010 (EUR1,720million).
Earnings per share
Earnings per share (taking into account the division of the nominal
value of the shares by two, effective on September 2, 2011)
amounted to EUR3.39 in 2011 compared with EUR3.30 in 2010.
Review of balance sheet and cash flow statement items
Total consolidated balance sheet amounted to EUR35,886million
as at December31, 2011, up 15.6% compared with December31,
2010. Non-current assets amounted to EUR22,540million or 63%
of total assets.
Goodwill
Goodwill amounted to EUR12,773million or 36% of total assets, up
by EUR2,560million compared with December31, 2010.
The Group’s acquisitions – mainly comprising Areva Distribution –
in 2011 accounted for EUR2,356million of the increase. Changes
in foreign exchange rates accounted for EUR142 million of the
increase.
The Group’s impairment tests did not lead to the recognition of any
additional impairment losses during the period.
Property, plant and equipment and intangible
assets
Property, plant and equipment and intangible assets amounted to
EUR7,277million or 20% of total assets, up 10% compared with
December31, 2010.
Intangible assets
Trademarks amounted to EUR2,529million at December31, 2011,
an increase of EUR103million compared with December31, 2010
mainly as a result of acquired entities Telvent, Steck and Luminous
and foreign exchange differences.
Gross capitalised development costs totaled EUR1,292 million
(EUR809million net), including the capitalisation of costs for current
projects in an amount of EUR217million.
Other intangible assets, net, consisting primarily of customer
relationships recognised on acquisition, software and patents,
increased by EUR252 million over the year primarily due to the
EUR436million of intangible assets recognised in the balance sheet
following the acquisition of Telvent, Leader & Harvest and Summit
Energy.
Property, plant and equipment
Net property, plant and equipment came to EUR2,573million, an
increase of EUR236million compared with December31, 2010.