Registration Document 2005 - Total.com

The non-current debt in dollars described in note 20 to the
consolidated financial statements (page 200) is generally raised by
the central treasury entities either in dollars or in euros, or in other
currencies which are then systematically exchanged for dollars or
euros according to general corporate needs, though issue swaps.
The proceeds from these debt issuances are principally loaned
to affiliates whose accounts are kept in dollars and any remaining
balance is held in dollar-denominated investments. Thus, the net
sensitivity of these positions to currency exposure is not material.
Short-term currency swaps for which the nominal amount appears
in note 27 to the consolidated financial statements (page 210) are
used with the aim of optimization of centralized management of
the cash of the Group. Thus the sensitivity to currency fluctuations
which may be induced is likewise considered negligible.
As a result of this policy, the impact of currency exchange on
consolidated net income, as illustrated in note 7 to the consolidated
financial statements (page 187), has not been significant despite
the considerable fluctuation of the dollar (positive 78 M€ in 2005,
negative 75 M€ in 2004).
Liquidity risk
Management of counterparty risk
Risk factors
Market risks 4
The Group has established standards for market transactions
according to which bank counterparties must be approved in
advance, based on an assessment of the counterparty’s financial
soundness and its rating (Standard & Poors, Moody’s), which must
be of high quality.
An overall authorized credit limit is set for each bank and is divided
among the subsidiaries and the Group’s central treasury entities
according to their needs.
Stock market risk
The Group holds interests in a number of publicly-traded
companies (see note 13 to the consolidated financial statements,
page 192). The market values of these holdings fluctuate due to
various factors, including stock market trends, valuations of the
sectors in which the companies operate, and the economic and
financial condition of each individual company.
TOTAL S.A. has confirmed lines of credit granted by international banks, which would allow it to manage its short-term liquidity needs as
required. (see page 72).
The following table shows the maturity of the financial assets and debts of the Group as of December 31, 2005 (see note 20 to the
consolidated financial statements, page 200).
As of December 31, 2005 (in millions of euros)
Less than Between 1 year More than
ASSETS/(LIABILITIES)
1 year and 5 years
5 years Total
Financial debt after swaps (3,619) (9,057) (4,259) (16,935)
Cash and cash equivalents 4,318 - - 4,318
Net amount 699 (9,057) (4,259) (12,617)
As of December 31, 2004 (in millions of euros) Less than Between 1 year More than
ASSETS/(LIABILITIES)
1 year and 5 years
5 years Total
Financial debt after swaps (3,480) (6,637) (3,136) (13,253)
Cash and cash equivalents 3,860 - - 3,860
Net amount 380 (6,637) (3,316) (9,393)
TOTAL - Registration Document 2005
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