Michelin couv courteGB

Strategy • Fundamentals • Businesses • Résultats Earnings
Parent Company and CFM Financial Statements
Compagnie Générale
des Etablissements Michelin
Compagnie Générale des Etablissements Michelin (CGEM) is the
Group’s parent Company*.
The Company posts earnings up
CGEM’s corporate accounts show earnings up €116.9 million,
at €295,151,971.68 versus €178,237,815.34 in 2003.
Operating income rose €27.7 million, owing to the combined
effect of an €9.3 million increase in royalties paid by
the subsidiaries, and a reduction in external costs, owing in
particular to the change in research costs.
Net interest and other investment income rose €112.1 million,
reflecting changes in the following main factors:
• a reversal of dividend distribution by MFPM in an amount of
€74.9 million;
• a full year increase of interest expenses of €30 million, in connection
with the (T.S.D.R.) junior debt repayable in cash that
was issued on December 3, 2003;
• a reduction in the income from receivables in connection with
holdings.
Income from ordinary activities thus amounted to €322.3
million, versus €182.6 million in 2003.
Lastly, taxes borne by the Company amounted to €27.2
million.
The balance sheet structure change
On May 5, 2004 CGEM subscribed to the capital increase of
Compagnie Financière Michelin (CFM) in the form of 2,341,381
Corporate Accounts
Condensed Balance Sheet
(in € million)
registered shares. The subscribed shares were fully paid up
through receivables compensation, in an amount of
€529,587,275.
On November 17, 2004 CGEM subscribed an additional capital
increase by CFM, for 1,317,029 registered shares. The shares
subscribed were paid for in cash in an amount of €301,714,982.
Finally, pursuant to Article 39 of Loi de finances rectificative du
30 décembre 2004, (Amendment to France’s finance law) CGEM
charged to its shareholders’ equity a non-recurring 2.5% tax on
special reserve funds on long-term gains capped at €200 million,
subject to €500,000 base deduction. This exceptional tax
amounted to €4,987,500.
* A simplified flowchart of Michelin Group’s legal entities appears on the cover flap of
this Report.
Simplified Statement of Income
(in € million)
2004 2003
Operating income 366.1 356.8
Operating expenses 285.7 304.1
Income from operations 80.4 52.7
Financial income 241.9 130.0
Current income 322.3 182.6
Non-recurring items, net 0.0
Income tax 27.2 4.3
Net income 295.2 178.2
Assets Dec. 31,04 Dec.31, 03 Liabilities and Shareholders’ equity Dec. 31, 04 Dec. 31, 03
Intangible assets, net 0.0 0.0 Shareholders’ equity 4,343.7 4,226.8
Property, plant and equipment, net 0.2 0.2 Provisions for contingencies
Investments, net 5,088.7 4,953.7 and charges – –
Fixed assets, net 5,088.9 4,953.9
Long and short-term debt 855.8 853.5
Other receivables, prepaid expenses
and accrued income 196.0 200.9 Other payables, deferred income
Cash equivalents 0.0 4.9 and accrued expenses 85.5 79.4
Cash 0.1 0.1 Trade payables –
Current assets 205.9 Liabilities 941.3 932.9
Total assets 5,285.0 5,159.7 Total Liabilities 5,285.0 5,159.7
54•55