2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

3CONSOLIDATED FINANCIAL STATEMENTSNotes to the consolidated fi nancial statementsFinance receivables break down as follows by maturity:€ millionsNot yet duePast due,not impairedRestructurednot yet dueAccumulatedimpairmentlosses(1) (2) (3) (4)2010 733 7 89 141 9692009 530 - 81 140 751(1) Receivables with no payment incidents.(2) Receivables past due but not impaired.(3) Receivables for which payments have been rescheduled.(4) Receivables with at least one payment outstanding for more than one month and for which an impairment loss has been taken.TotalCredit risk on other financial assets – comprising cash and cashequivalents, available-for-sale financial assets and certain derivativefinancial instruments – corresponds to the risk of failure by thecounterparty to fulfil its obligations. The maximum risk is equal to theinstruments’ carrying amount.Counterparty risk related to other assetsOther assets, mainly comprising tax receivables, repayment rightsand amounts due from the Venezuelan government, are neither pastdue nor impaired.Note 31.4. Liquidity riskThe Group had confirmed credit facilities totalling €1,994 million(including €1,989 million unutilised) and available cash of €2,813 millionat 31 December 2010, ensuring that it has sufficient liquidity to meetits needs.Loans with financial covenants represent about 15% of the total,mainly concerning subsidiaries in France, Brazil and Colombia. TheGroup’s loan and bond agreements also include the customarycovenants and default clauses, including pari passu, negative pledgeand cross-default clauses.Bonds placed on the euro market do not include any covenantsrelated to financial ratios.At 31 December 2010, the consolidated net debt to consolidatedEBITDA ratio stood at 2.14 compared with a minimum requirementof 3.5. The Group considers that it can comply comfortably with itscovenants over the next twelve months.Some of the loan agreements, in an aggregate principal amount of€3,705 million, contain an acceleration clause at the lender’s discretionshould Casino, Guichard-Perrachon SA’s long-term senior debt ratingbe downgraded to non-investment grade due to a change of majorityshareholder. In this case, the Group would be obliged to pay therelevant loans on demand. Other loan agreements, in an aggregateprincipal amount €3,159 million, contain a coupon step-up clauseincreasing the interest rate should Casino, Guichard-Perrachon SA’slong-term senior debt rating be downgraded to non-investmentgrade.At 31 December 2010, the covenants related to the main types ofdebt carried by the parent company were as follows:■■■■the €1.2 billion syndicated credit line renewed in August 2010 andthe BNP Paribas and Santander confirmed credit lines are subject toa consolidated net debt to consolidated EBITDA ratio of < 3.5;the other confirmed credit lines and the Alaméa financing facilityare subject to a consolidated net debt to consolidated EBITDAratio of < 3.7;the Calyon structured loan is subject to a consolidated net debt toconsolidated EBITDA ratio of < 4.3;the ratios applicable to the US Private Placement Notes are asfollows:RatioRequiredActual31 December 2010Consolidated net debt (3) /consolidated EBITDA (2) < 3.50 (1) 2.14Consolidated net debt/consolidated equity < 1.20 0.48Consolidated intangible assets/consolidated equity < 1.25 0.89(1) The consolidated net debt to consolidated EBITDA requirement decreased from 3.7 to 3.5 in 2010 due to the inclusion of the new syndicated credit line in the covenants applicable to theUS Private Placement Notes.(2) EBITDA (earnings before interest, taxes, depreciation and amortisation) = trading profi t plus operating depreciation and amortisation.(3) Net debt as defi ned in the loan agreements is not the same as net debt recognised in the consolidated fi nancial statements (see 1.5.29). It corresponds to borrowings and fi nancial liabilitiesless cash and cash equivalents, as increased or reduced by the net impact of fair value hedges of debt with a positive or negative fair value.Monoprix, GPA and Exito are also subject to financial covenants. The Group complied with all these financial ratios at 31 December 2010.114 Casino Group | Registration Document 2010