VINCI - 2005 annual report

1.3 OTHER FINANCIAL TRANSACTIONS
The following transactions also affected VINCI Holding’s securities portfolio
in 2005:
– formation of VINCI Immobilier, bringing together the companies Elige
and Sorif, with Sorif Investissements being merged into Elige Participations;
2. SUMMARY STATEMENT OF INCOME
PARENT COMPANY FINANCIAL STATEMENTS
– transfer to VINCI Concessions of VINCI’s shareholding in Consortium
Stade de France;
– transfer to VINCI Construction of VINCI Holding’s 1.63% shareholding
in CFE and its 16.34% shareholding in the Peruvian building and civil
engineering company, Grana y Montero.
(in € millions) 2005 2004 2003
Revenue 20.1 24.3 23.1
Other operating income 78.2 80.8 61.7
Operating expenses (98.3) (102.3) (94.8)
Operating profi t / (loss) 0.0 2.8 (10.0)
Net income from subsidiaries and affi liated companies 511.1 337.7 179.5
Net fi nancial expense(1) 91.0 (78.5) (71.5)
Foreign currency translation and other gains / (losses) (0.1) 95.7 0.7
Other fi nancial provisions 62.5 (46.1) (34.0)
Net fi nancial income / (expense) 664.5 308.8 74.7
Net exceptional income / (expense) 36.4 4.7 1,888.0
Income from group tax regime, less tax charge 15.3 14.2 112.9
Net profi t for the year 716.1 330.5 2,065.6
(1) including changes in provisions for redemption premiums on the OCEANE bonds, i.e. a net reversal of €99.5 million in 2005, and expenses of €31.8 million in 2004 and of €31.7 million in 2003.
Net fi nancial income was sharply up, by €355.7 million, increasing from
€308.8 million net in 2004 to €664.5 million net in 2005. This was mainly
the result of:
– an increase in the total income from shareholdings of €173.4 million
deriving from:
- the €92.7 million increase in the dividend from VINCI Construction
(€194.2 million in 2005 against €101.5 million in 2004), the
€102.4 million increase in the dividend from VINCI Concessions
(€166.7 million in 2005 against €64.3 million in 2004) and the
payment of a dividend of €44.6 million in 2005 by Socofreg, which
paid no dividend in 2004;
- these changes were partially offset by a €56.8 million reduction in the
dividend paid by Eurovia (€96.6 million in 2005 against €153.4
million in 2004).
– the impact of the conversion of the two OCEANE bonds, mentioned
above. This resulted in a net reversal of provisions for redemption premiums
for €99.5 million and a saving in fi nancial expenses of the order
of €16 million in 2005, as no coupon was paid on the converted
bonds;
– an improvement in the return on cash investments in 2005;
– the reversal of the provision for impairment of the shares in Elige
(€58.4 million), following the merger with Sorif, and the record-
ing in 2004 of an impairment loss of €45 million against the
shares in and loans made to VINCI Services Aéroportuaires;
– it should also be remembered that fi nancial income in 2004 included
income of €95.5 million related to the unwinding of the equity swap
entered into in 2003 relating to 4.2% of the share capital of ASF.
Net exceptional income increased from €4.7 million in 2004 to
€36.4 million in 2005. This increase was mainly due to the increase in
gains on disposals. In 2005 these included the sale of the shares in Consortium
Stade de France to VINCI Concessions (€40.2 million), and the gain
arising on the exchange of the shares in Sorif (€18.9 million) resulting
from its acquisition-merger by and with VINCI Immobilier. In 2004 the
gains were recorded on the sales of the shares in Gefyra (€15.1 million)
and Severn (€6.5 million), transferred to VINCI Concessions.
The net income from the Group tax regime remained stable at €15.3 million
in 2005 (€14.2 million in 2004). It mainly arose from the taking into
account, at Holding company level, of carryforward tax losses of subsidiaries
included in the regime.
Taking account of the above, the net profi t for 2005 (€716.1 million) was
more than double that of 2004 (€330.5 million).
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