2007 Reference document (PDF) - Valeo

Provisions
The balance sheet at December 31, 2007 showed total provisions of
1,102 million euros (including a non-current portion of 778 million
euros), versus 1,355 million euros at the previous year-end (including
a non-current portion of 937 million euros).
Total provisions for reorganization expenses fell 49 million euros
on the year-earlier period, to 127 million euros.
Provisions for pensions and other employee benefits totaled
608 million euros at year-end, 140 million euros lower than
Cash flows and debt
In 2007, net cash provided by operating activities amounted to
582 million euros (709 million euros in gross operating cash flows)
compared with 680 million euros one year earlier (717 million euros
in gross operating cash flows).
Excluding the impact of changes in the scope of consolidation,
net cash used in investing activities during the year totaled
529 million euros (138 million euros relating to intangible assets
and 435 million relating to property, plant and equipment),
compared to 610 million euros in 2006 (165 million euros relating
to intangible assets and 494 million euros relating to property, plant
and equipment). Changes in the scope of consolidation resulted in
a net inflow of 208 million euros (including proceeds of 237 million
euros on the disposal of the Wiring Harness business) compared with
a net inflow of 124 million euros in 2006.
Management Report
Cash fl ows and debt
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at December 31, 2006. The decrease in this item reflects (i) the
recognition in equity of actuarial gains and losses for an amount
of 79 million euros; (ii) changes in the scope of consolidation
for 13 million euros; and (iii) translation adjustments for
26 million euros.
Other provisions fell from 431 million euros at end-2006 to
367 million euros at December 31, 2007 due in part to lower
provisions for contingencies and litigation.
Financing activities generated net cash outflows of 98 million euros
(including dividend payments to shareholders amounting to
85 million euros) compared to net cash outflows of 643 million
euros in 2006, which included 553 million in repayments of longterm
debt.
The net increase in consolidated cash and cash equivalents for 2007
amounted to 167 million euros, compared to a net decrease of
448 million euros in the previous year.
Net debt – which is the sum of debt, net current financial
liabilities, short-term loans and bank overdrafts, less cash and cash
equivalents – totaled 799 million euros at year-end, compared to
968 million euros at December 31, 2006. The consolidated gearing
ratio is therefore 45% at December 31, 2007, compared to 55%
at December 31, 2006.
2007 Reference document - VALEO
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