APC 2011 Annual Report Download - page 151

1492011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
BUSINESS REVIEW
4
REVIEW OF THE CONSOLIDATED FINANCIAL STATEMENTS
Investments in associates
Investments in associates amounted to EUR489 million, a steep
rise compared to the balance of EUR42million as at December31,
2010.
Non-current financial assets
Non-current fi nancial assets totaled EUR557 million. They mainly
comprised listed equity investments (mainly AXA and NVC Lighting
shares) for EUR191million and potential assets linked to acquisitions.
Cash and net debt
Net cash provided by operating activities before changes in
operating assets and liabilities came to EUR2,579 million versus
EUR2,534 million in 2010, and represented 11.5% of revenue
compared with 12.9% the year before.
Change in working capital requirement consumed EUR327million
in cash, refl ecting the increase in inventories generated by the
corresponding rise in revenue.
In all, net cash provided by operating activities totalled
EUR2,252million in 2011 compared with EUR2,262million in 2010.
Net capital expenditure, which includes capitalised development
projects, represented an outlay of EUR746 million, or 3.3% of
revenue, compared with EUR528million, or 2.7% in 2010.
The year’s acquisitions represented a cash outfl ow of
EUR2,873million in 2011 compared to 1,754million in 2010, net
of cash acquired. Numerous acquisitions took place in 2011, such
as Telvent, Leader & Harvest, Luminous, Summit Energy, Steck
and Digilink; the main acquisition of 2010 was Areva Distribution for
EUR1,208million.
There was no sale of treasury stock in 2011 when the sale of treasury
stock in 2010 generated a net cash infl ow of EUR249 million.
Dividends paid totaled EUR925million, of which EUR69million to
minority interests. This is an increase compared to EUR241million
paid in 2010 (out of which EUR46million to minority interests), as a
result of an increase in the dividend per share that was entirely paid
in cash (when part of it was paid in shares in 2010).
Net debt at December31, 2011 totaled EUR5,266million or 32.7%
of equity attributable to equity holders of the parent. This represents
an increase of EUR2,530 million from the year before with the
purpose of fi nancing 2011 acquisitions.
The Group ended the year with cash and cash equivalents
of EUR2,771 million, of which EUR1,515 million in cash,
EUR634 million in marketable securities and EUR622 million in
short-term negotiable instruments such as commercial paper,
money market mutual funds and equivalents.
Total current and non-current fi nancial liabilities amounted to
EUR8,037million. Of this, bonds represented EUR5,540million and
non-current bank loans EUR1,464million. Five new bond issues, in
an aggregate amount of EUR1,692million, were launched in 2011,
while EUR500million worth of bonds were redeemed at maturity.
Equity
As at December31, 2011 equity attributable to equity holders of the
parent company came to EUR15,898million, or 44% of the balance
sheet total. The EUR1,113million increase over the period was the
net result of the following:
•profi t for the year of EUR1,820million,
•payment of the 2010 dividend in an amount of EUR856million,
•actuarial losses on defi ned benefi t plans of EUR275million,
•foreign exchange differences in an amount of EUR159million,
•share issues for EUR178million,
•the exercise of stock options for EUR51million,
•disposal of own shares for EUR38million.
Minority interests amounted to EUR192 million, down
EUR12million compared with December31, 2010 as a net effect
of the EUR84million profi t for the year, the dividend payments of
EUR69million and various negative items for EUR27million.
Provisions
Current and non-current provisions totaled EUR3,363million, or 9%
of the balance sheet total, of which EUR960million covered items
that are expected to be paid out in less than one year. This item
primarily comprises provisions for pensions and healthcare costs in
an amount of EUR1,723million. The EUR219million increase over
the year corresponds mainly to actuarial variances, linked to the
decrease of discount rates.
Other provisions excluding employee benefi ts totaled
EUR1,640million at December31, 2011. These provisions cover
economic risks (tax risks, fi nancial risks generally corresponding to
seller’s warranties) for EUR739 million, product risks (warranties,
disputes over identifi ed defective products) for EUR420 million,
restructuring for EUR137 million, customer risks (customer
disputes and losses on long-term contracts) for EUR87million and
environmental risks for EUR57million. The EUR176million increase
over the year principally corresponds to the acquisitions of the
period (EUR167million).
Deferred taxes
Deferred tax assets came to EUR1,444million as at December31,
2011, refl ecting unused tax losses of an amount of EUR294million,
future tax savings on provisions for pensions of an amount of
EUR553million, and non-deductible provisions and accruals of an
amount of EUR247million.
Deferred tax liabilities totaled EUR944 million and primarily
comprised deferred taxes recognised on trademarks, customer
relationships and patents acquired in connection with business
combinations.