VINCI - 2005 annual report
VINCI - 2005 annual report VINCI - 2005 annual report
Finance leases 31/12/2005 Currency Nominal Carrying Overall Overall Contractual Maturity remaining amount effective rate effective rate interest due before taking after taking rate account of account of (in € millions) derivatives (1) derivatives (1) Airport services SFS France EUR 17.5 17.5 2.64% 2.64% Euribor 6m June 2014 SFS Germany EUR 14.3 14.3 6.88% 6.88% 6.88% September 2019 Eurovia SLAG EUR 9.9 9.9 2.99% 6.05% Euribor 3m March 2012 CFE Dredging International Luxembourg (DEME) (2) EUR 12.8 12.8 3.90% 3.90% 3.90% February 2012 Other loans 108.1 108.1 (3) Total finance leases 162.5 162.5 (1) Including all flows connected to the issue (fees, premium, etc.); the variable rates applying are 2.49% for Euribor 3 months and 2.64% for Euribor 6 months. (2) VINCI’s share (proportionate consolidation at 50%). (3) Including €27 million in VINCI Energies, €19 million in VINCI Park. 26.1.2 Breakdown of long-term debt between fixed, floating and capped floating rates borrowing Long-term debt breaks down as follows between fixed and floating rates, before and after taking account of the related derivative instruments, whether considered as hedges or not: 31/12/2005 31/12/2004 (in € millions) Amount Share Amount Share Fixed rate 4,422.6 77% 5,138.4 80% Floating rate 1,329.9 23% 1,281.3 20% Incidence of fair value hedging and accrued interest (1) 241.4 247.1 Total before hedging 5,993.9 100% 6,666.8 100% Fixed rate 2,141.8 37% 2,157.5 34% Floating rate 2,824.5 49% 4,038.7 63% Capped floating rate 786.2 14% 223.5 3% Incidence of fair-value hedging and accrued interest (1) 241.4 247.1 Total after hedging 5,993.9 100% 6,666.8 100% (1) Including accrued interest not matured. On this basis, the average cost of the Group’s net debt is 4.36% in 2005 against 4.37% in 2004. 26.1.3 Sensitivity of financial expenses to interest rate trends At 31 December 2005, the Group’s gross floating rate debt, amounting to €4.9 billion, breaks down as follows: (in € millions) 31/12/2005 31/12/2004 Long-term floating-rate financial debt after hedging 3,610.7 4,262.2 Short-term financial debt 1,329.3 598.6 Total gross floating-rate financial debt after hedging 4,940.0 4,860.8 250 VINCI 2005 ANNUAL REPORT
Based on this position, a 1% increase in interest rates would generate extra financial expenses of €49 million. Such an increase in interest rates would conversely also result in comparable greater income from the Group’s cash surpluses, which amounted to 5.5 billion at 31 December 2005. 26.2 LIQUIDITY AND FINANCIAL RATINGS 26.2.1 Liquidity position The Group’s liquidity position at 31 December 2005 was €9.4 billion, taking account of cash and cash-management financial assets of €5.4 billion and unused credit facilities of €4 billion (see detail in Note 25.3.1 and 25.3.2). 26.2.2 Management of liquidity risk and maturity of financial debt In connection with the management of liquidity risk, the Group analyses the average maturity of its debt at more than one year by type of activity financed. At 31 December 2005, the average maturity of the Group’s financial debt is 7.4 years (against 8.1 years at 31 December 2004). The average maturity CONSOLIDATED FINANCIAL STATEMENTS Also, at 31 December 2005, derivatives that are not considered as hedges for accounting purposes amount to €4.6 million at market value; for a uniform increase of 1% in interest rates, the market value would rise by €2 million. Unused commercial paper at 31 December 2005 amounts to €657 million (see Note 25.3.1). is 3.4 years for VINCI SA, 8.8 years for the Concessions and Services division and 3.2 years for the rest of the Group. The VINCI Group’s financial debts break down as follows by maturity: 31/12/2005 31/12/2004 VINCI SA Concessions Other Total Total (in € millions) and services business lines Accrued interest not matured 26.3 57.5 1.1 84.8 Maturing in less than one year 0.5 311.0 177.5 489.1 511.2 Current part of financial debt at redemption value 26.8 368.5 178.6 573.8 511.2 Maturing in more than 1 year and not after 2 years (at redemption value) 1.1 371.4 63.7 436.3 342.7 Maturing in more than 2 years and not after 5 years (at redemption value) 1,002.0 882.0 171.0 2,055.0 2,287.8 Maturing in more than 5 years and not after 10 years (at redemption value) 369.5 82.0 451.6 355.7 Maturing after 10 years (at redemption value) 2,303.8 18.7 2,322.6 1,937.9 Non-current part of financial debt 1,003.1 3,926.8 335.6 5,265.5 4,924.1 Impact of amortised cost and adjustment of fair value of debt 26.0 129.1 (0.5) 154.6 133.5 Financial debt (excluding OCEANE) 1,055.9 4,424.4 513.7 5,993.9 5,568.8 251
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Finance leases<br />
31/12/<strong>2005</strong><br />
Currency Nominal Carrying Overall Overall Contractual Maturity<br />
remaining amount effective rate effective rate interest<br />
due before taking after taking rate<br />
account of account of<br />
(in € millions) derivatives (1) derivatives (1)<br />
Airport services<br />
SFS France EUR 17.5 17.5 2.64% 2.64% Euribor 6m June 2014<br />
SFS Germany EUR 14.3 14.3 6.88% 6.88% 6.88% September 2019<br />
Eurovia<br />
SLAG EUR 9.9 9.9 2.99% 6.05% Euribor 3m March 2012<br />
CFE<br />
Dredging International Luxembourg<br />
(DEME) (2) EUR 12.8 12.8 3.90% 3.90% 3.90% February 2012<br />
Other loans 108.1 108.1 (3)<br />
Total finance leases 162.5 162.5<br />
(1) Including all flows connected to the issue (fees, premium, etc.); the variable rates applying are 2.49% for Euribor 3 months and 2.64% for Euribor 6 months.<br />
(2) <strong>VINCI</strong>’s share (proportionate consolidation at 50%).<br />
(3) Including €27 million in <strong>VINCI</strong> Energies, €19 million in <strong>VINCI</strong> Park.<br />
26.1.2 Breakdown of long-term debt between fixed,<br />
floating and capped floating rates borrowing<br />
Long-term debt breaks down as follows between fixed and floating rates,<br />
before and after taking account of the related derivative instruments,<br />
whether considered as hedges or not:<br />
31/12/<strong>2005</strong> 31/12/2004<br />
(in € millions) Amount Share Amount Share<br />
Fixed rate 4,422.6 77% 5,138.4 80%<br />
Floating rate 1,329.9 23% 1,281.3 20%<br />
Incidence of fair value hedging and accrued interest (1) 241.4 247.1<br />
Total before hedging 5,993.9 100% 6,666.8 100%<br />
Fixed rate 2,141.8 37% 2,157.5 34%<br />
Floating rate 2,824.5 49% 4,038.7 63%<br />
Capped floating rate 786.2 14% 223.5 3%<br />
Incidence of fair-value hedging and accrued interest (1) 241.4 247.1<br />
Total after hedging 5,993.9 100% 6,666.8 100%<br />
(1) Including accrued interest not matured.<br />
On this basis, the average cost of the Group’s net debt is 4.36% in <strong>2005</strong> against 4.37% in 2004.<br />
26.1.3 Sensitivity of financial expenses to interest rate trends<br />
At 31 December <strong>2005</strong>, the Group’s gross floating rate debt, amounting<br />
to €4.9 billion, breaks down as follows:<br />
(in € millions) 31/12/<strong>2005</strong> 31/12/2004<br />
Long-term floating-rate financial debt after hedging 3,610.7 4,262.2<br />
Short-term financial debt 1,329.3 598.6<br />
Total gross floating-rate financial debt after hedging 4,940.0 4,860.8<br />
250<br />
<strong>VINCI</strong> <strong>2005</strong> ANNUAL REPORT
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