VINCI - 2005 annual report
VINCI - 2005 annual report VINCI - 2005 annual report
282 VINCI 2005 ANNUAL REPORT Consolidation method VINCI group holding VINCI Construction Filiales Internationales Sogea-Satom and its subsidiaries (various African countries) FC 100.00 Warbud (Poland) FC 99.74 SBTPC (Reunion) FC 100.00 Hídépítö (Hungary) FC 97.69 SMP CZ (Czech Republic) FC 95.95 First Czech Construction Company (Czech Republic) FC 100.00 Dumez-GTM Calédonie FC 100.00 Sogea Réunion FC 100.00 GTM Guadeloupe FC 100.00 Nofrayane (French Guyana) FC 100.00 Sogea Martinique FC 100.00 SKE (Germany) FC 100.00 VINCI Bautec (Germany) FC 100.00 VINCI Construction UK VINCI PLC (UK) FC 100.00 Rosser and Russel (UK) FC 100.00 Crispin and Borst (UK) FC 100.00 VINCI Investment (UK) FC 100.00 Compagnie d’Entreprises CFE (Belgium) FC 45.38 CFE FC 45.38 BPC, Nizet Entreprises, Van Wellen, Sogesmaint FC 45.38 Dredging Environmental and Marine Engineering – DEME PC 22.69 CFE Netherland FC 45.38 VINCI Construction Grands Projets FC 100.00 Socaso FC 100.00 Socatop PC 66.67 Constructora VCGP Chile SA FC 100.00 Janin Atlas (Canada) FC 100.00 Freyssinet FC 100.00 Freyssinet France FC 100.00 Terre Armée Internationale FC 100.00 The Reinforced Earth Cy – RECO (USA) FC 100.00 Ménard Soltraitement FC 100.00 Freyssinet International et Cie FC 100.00 Immer Property (Australia) FC 70.00 Freyssinet Korea FC 90.00 Freyssinet Hong Kong FC 100.00 5. PROPERTY VINCI Immobilier FC 100.00 FC: full consolidation; PC: proportionate consolidation; EM: equity method.
CONSOLIDATED FINANCIAL STATEMENTS REPORT OF THE STATUTORY AUDITORS ON THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2005 To the Shareholders, In accordance with our appointment as Statutory Auditors by your Shareholders General Meeting, we have audited the accompanying consolidated financial statements of VINCI for the year ended 31 December 2005. The Board of Directors is responsible for the preparation of the consolidated financial statements. Our role is to express an opinion on these financial statements based on our audit. 1. OPINION ON THE CONSOLIDATED FINANCIAL STATEMENTS We conducted our audit in accordance with the auditing standards generally applicable in France. Those standards require that we plan and perform the audit in such a way as to obtain reasonable assurance that the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. 2. JUSTIFICATION OF OUR ASSESSMENTS As required by Article L.823-9 of the French Code of Commerce regarding disclosure of the reasons for our conclusions, we inform you of the following: As shown in Note B.3 to the financial statements, headed “Construction contracts”, the Group recognises income from long-term contracts using the percentage of completion method on the basis of the best available estimates of the final outcome of contracts. If the estimate of the final outcome of a contract indicates a loss, a provision is made for the loss on completion. We have assessed the reasonableness of the assumptions used and the resulting evaluations. 3. SPECIFIC PROCEDURES These financial statements have been prepared for the first time under the International Financial Reporting Standards (IFRS) as endorsed by the European Union. They include data relating to 2004 restated under the same standards, for comparison. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements give a true and fair view of the financial position, the assets and liabilities and the results of the operations of the companies included in the consolidation, in accordance with the International Financial Reporting Standards as endorsed by the European Union. We have also examined the accounting positions adopted by VINCI regarding the accounting for concessions, for which no particular provisions are included in the International Financial Reporting Standards as endorsed by the European Union and we have ascertained that Note B of the Notes to the consolidated financial statements provides appropriate information in this regard. These conclusions were formed as part of our audit of the annual consolidated financial statements taken as a whole and have therefore contributed to the formation of our opinion, given in the first part of this report. We also performed the procedures to verify the information given in the Board of Directors’ report on the Group. We have no comments to make as to its fair presentation and its conformity with the consolidated financial statements. Neuilly-sur-Seine and Paris, 2 March 2006 The Statutory Auditors Deloitte & Associés Salustro Reydel Thierry Benoit KPMG International Bernard Cattenoz Benoît Lebrun This is a free translation into English of the Statutory Auditors’ reports issued in the French language and is provided solely for the convenience of English-speaking readers. The Statutory Auditors’ report includes for the information of the reader, as required under French law in any auditor’s report, whether qualified or not, an explanatory paragraph separate from and presented below the audit opinion discussing the auditors’ assessments of certain significant accounting and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not to provide separate assurance on individual account caption or on information taken outside of the consolidated financial statements. Such report should be read in conjunction and construed in accordance with French law and French auditing professional standards. 283
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CONSOLIDATED FINANCIAL STATEMENTS<br />
REPORT OF THE STATUTORY AUDITORS<br />
ON THE CONSOLIDATED FINANCIAL STATEMENTS<br />
YEAR ENDED 31 DECEMBER <strong>2005</strong><br />
To the Shareholders,<br />
In accordance with our appointment as Statutory Auditors by your Shareholders<br />
General Meeting, we have audited the accompanying consolidated<br />
financial statements of <strong>VINCI</strong> for the year ended 31 December <strong>2005</strong>.<br />
The Board of Directors is responsible for the preparation of the consolidated<br />
financial statements. Our role is to express an opinion on these<br />
financial statements based on our audit.<br />
1. OPINION ON THE CONSOLIDATED FINANCIAL STATEMENTS<br />
We conducted our audit in accordance with the auditing standards generally<br />
applicable in France. Those standards require that we plan and perform<br />
the audit in such a way as to obtain reasonable assurance that the consolidated<br />
financial statements are free of material misstatement. An audit<br />
includes examining, on a test basis, evidence supporting the amounts and<br />
disclosures in the financial statements. An audit also includes assessing the<br />
accounting principles used and significant estimates made by management,<br />
as well as evaluating the overall presentation of the financial statements.<br />
2. JUSTIFICATION OF OUR ASSESSMENTS<br />
As required by Article L.823-9 of the French Code of Commerce regarding<br />
disclosure of the reasons for our conclusions, we inform you of the<br />
following:<br />
As shown in Note B.3 to the financial statements, headed “Construction<br />
contracts”, the Group recognises income from long-term contracts using<br />
the percentage of completion method on the basis of the best available<br />
estimates of the final outcome of contracts. If the estimate of the final<br />
outcome of a contract indicates a loss, a provision is made for the loss on<br />
completion. We have assessed the reasonableness of the assumptions used<br />
and the resulting evaluations.<br />
3. SPECIFIC PROCEDURES<br />
These financial statements have been prepared for the first time under the<br />
International Financial Reporting Standards (IFRS) as endorsed by the<br />
European Union. They include data relating to 2004 restated under the<br />
same standards, for comparison.<br />
We believe that our audit provides a reasonable basis for our opinion.<br />
In our opinion, the consolidated financial statements give a true and fair<br />
view of the financial position, the assets and liabilities and the results of<br />
the operations of the companies included in the consolidation, in accordance<br />
with the International Financial Reporting Standards as endorsed by<br />
the European Union.<br />
We have also examined the accounting positions adopted by <strong>VINCI</strong> regarding<br />
the accounting for concessions, for which no particular provisions are<br />
included in the International Financial Reporting Standards as endorsed<br />
by the European Union and we have ascertained that Note B of the Notes<br />
to the consolidated financial statements provides appropriate information<br />
in this regard.<br />
These conclusions were formed as part of our audit of the <strong>annual</strong><br />
consolidated financial statements taken as a whole and have therefore<br />
contributed to the formation of our opinion, given in the first part of<br />
this <strong>report</strong>.<br />
We also performed the procedures to verify the information given in the<br />
Board of Directors’ <strong>report</strong> on the Group. We have no comments to make<br />
as to its fair presentation and its conformity with the consolidated financial<br />
statements. Neuilly-sur-Seine and Paris, 2 March 2006<br />
The Statutory Auditors<br />
Deloitte & Associés Salustro Reydel<br />
Thierry Benoit KPMG International<br />
Bernard Cattenoz Benoît Lebrun<br />
This is a free translation into English of the Statutory Auditors’ <strong>report</strong>s issued in the French language and is provided solely for the convenience of English-speaking readers. The Statutory Auditors’ <strong>report</strong> includes for<br />
the information of the reader, as required under French law in any auditor’s <strong>report</strong>, whether qualified or not, an explanatory paragraph separate from and presented below the audit opinion discussing the auditors’<br />
assessments of certain significant accounting and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not to<br />
provide separate assurance on individual account caption or on information taken outside of the consolidated financial statements. Such <strong>report</strong> should be read in conjunction and construed in accordance with French<br />
law and French auditing professional standards.<br />
283