Annual Report 2011 - Analist.be

Other investmentsIberdrola(http://www.iberdrola.es)Iberdrola is a major international player in the generation,distribution and commercialization of electricity and naturalgas and is emerging as a global leader in renewable energythrough its subsidiary Iberdrola Renovables. The group holdsleading positions in Spain and Latin America and recentlyextended its activities to the United Kingdom and the UnitedStates through the acquisitions of Scottish Power (2007) andEnergy East (2008) respectively. In 2011, Iberdrola bought theminority shares of its subsidiary Iberdrola Renovables andacquired Elektro, a Brazilian company.Iberdrola improved its gross margin in 2011, helped by afavourable group structure effect and strict year-on-year costcontrol of 1.6% for a total of EUR 7,650 million. EBIT declinedby 6.7% to EUR 4,505 million and was affected by impairmentsof assets in the amount of EUR 332 million.Net income, group’s share, slipped at end 2011 toEUR 2,805 million (EUR 2,871 million in 2010). The declinein financial expenses and taxes only partially offset thedecrease in operating income.Net financial debt at end 2011 amounted to EUR 31.7 billion(EUR 30.0 billion at end 2010), representing 95% of shareholders’equity (same as in 2010).The group will propose to the General Meeting of shareholdersto distribute a dividend balance of at least EUR 0.18 per share,bringing the total dividend payout per share for 2011 to a levelat least equivalent to its 2010 level (EUR 0.326 per share).The dividend contribution to GBL’s cash earnings in 2011amounted to EUR 7.9 million (EUR 10.7 million in 2010),or the equivalent of 1.5% of total cash earnings.As a reminder, during the first half of 2007, GBL acquireda 3% stake in Iberdrola at a cost of nearly EUR 1.4 billion.This investment was partially divested at end 2007 and early2008 at a sale price of more than EUR 1.3 billion, resulting ina total capital gain of EUR 184 million over these two years.PAI Europe III (PAI)GBL has paid up around 95% of its 2001 investmentcommitment of EUR 40 million in PAI (out of a total ofEUR 1.8 billion). The sale of investments has allowed PAIto pay out to GBL cumulative distributions of EUR 105 million.During 2011, PAI concluded its disposal of Yoplait, GruppoCoin and Compagnie Européenne de Prévoyance and soldon the Stock Exchange a part of its interest in Chr Hansen.On 31 December 2011, the portfolio included the investmentin FTE and a residual position in Chr Hansen.SagardIn 2002, GBL initially agreed to invest in the primary Sagardfund (Sagard I) in the amount of EUR 50 million (slightlyincreased since then), out of a total commitment ofEUR 536 million. During financial year 2006, GBL investedin that fund’s successor, Sagard II, for an initial amountof EUR 150 million, reduced in 2009 to EUR 120 million.Overall commitments to the Sagard II fund represent nearlyEUR 810 million.Situation of Sagard I fundThe total amount paid out since the creation of the fund standsat EUR 53 million. On a cumulative basis, GBL has collectedpayouts of EUR 105 million from Sagard I. In 2011, Sagard Isold its stake in Souriau, Kiloutou, Olympia and increased itsmargin in Hermes Metal Yudigar. As of 31 December 2011,the Sagard I portfolio includes Hermes Metal Yudigar andRégie Linge Développement.Situation of Sagard II fundOn 31 December 2011, GBL had invested a total ofEUR 69 million in this fund. During 2011, Sagard II reinvestedpartially in Kiloutou, confident in the growth potential of thisinvestment. The Sagard II portfolio includes five investmentsat end December 2011: Corialis, Vivarte, Fläkt Woods, Cevaand Kiloutou.GBL’s residual investment in Iberdrola stood at 0.2% of capitalfollowing its disposal of 0.4% in 2011 for a capital gain ofEUR 10.6 million. At end December 2011, Iberdrola shareprice was EUR 4.84.64 Annual Report 2011