registration document France Telecom 2009 - Orange.com

9 ANALYSIS
analysis of the financial position and earnings
OF THE GROUP’S FINANCIAL POSITION AND EARNINGS
NET FINANCIAL DEBT
(in millions of euros)
Financial years ended December 31
2009
2008
historical basis
2007
historical basis
Net financial debt 33,941 35,859 37,980
Weighted average cost of net fi nancial debt (1) 6.54% 6.66% 6.46%
Average maturity of net fi nancial debt (2) 7.3 years 7.5 years 7.1 years
(1) The weighted average cost of net fi nancial debt is calculated as the ratio of net interest expenses, less exceptional and non-recurring items, to the average amount outstanding, based
on net fi nancial debt adjusted for non-interest bearing amounts, such as accrued interest payable and liabilities in respect of commitments to buy out non-controlling interests.
(2) Excluding perpetual bonds redeemable for shares (TDIRAs). See Note 28 to the consolidated fi nancial statements.
At December 31, 2009, the liquidity position of France Telecom
appeared to be suffi cient to cover 2010 obligations linked to the
net fi nancial debt, independently of cash fl ow to be generated in
2010 (see Note 28.3 to the consolidated fi nancial statements).
EBITDA in 2009 takes into account a total expense of
1,533 million euros relative to i) the ruling handed down by the
European Court of First Instance (ECFI) in respect of the dispute
over the special business tax (taxe professionnelle) regime in
France prior to 2003, for a total of 964 million euros, and ii)
the recognition of a provision covering the “Part-Time Seniors”
plan in France for a total of 569 million euros (see Section
9.1.1.4 Key events in 2009). In order to compare the ratio of net
fi nancial debt in 2009 with those of previous years, the EBITDA
used in the following table for 2009 has been restated to take
this expense into account. Accordingly, the ratio of net fi nancial
debt to adjusted EBITDA worked out at 1.97 in 2009. Excluding
the effect on net fi nancial debt of the public tender offer to
acquire ECMS shares for a total of 1,082 million euros (see
Section 9.1.1.4 Key events in 2009), the ratio of net fi nancial
debt to adjusted EBITDA worked out at 1.90 in 2009.
(in millions of euros)
Financial years ended December 31
2009
2008
historical basis
2007
historical basis
Ratio of net fi nancial debt to equity 1.18 1.17 1.12
Ratio of net fi nancial debt to adjusted EBITDA (1) 1.97 / 1.90 (2) 1.96 1.99
(1) EBITDA including Orange in the United Kingdom, for consistency with net external fi nancial debt, which includes Orange in the United Kingdom (see Notes 11, 22 and 28.7 to the
consolidated fi nancial statements), and restated in 2009 as described above.
(2) Net fi nancial debt excluding the effect of the public tender offer to acquire ECMS shares for a total of 1,082 million euros (see Notes 3, 22, 28, 29, 31 and 32 to the consolidated
fi nancial statements).
2009 vs. 2008
(in millions of euros)
Financial years ended
December 31
Net financial debt as of December 31, 2008 (historical basis) 35,859
Organic cash fl ow (1) (8,350)
Dividends paid to owners of the parent company (2) 3,141
Payment of the balance of the dividend due for 2008 (0.80 euros per share)
excluding payment in shares 1,553
Payment of the interim dividend for 2009 (0.60 euros per share) 1,588
Effect of the public tender offer to acquire ECMS shares (3) 1,082
Net impact of the acquisition of 18.4% of France Telecom España (4) 577
Impact of derivatives and foreign exchange fl uctuations on net fi nancial debt
and non-monetary impact of the buyback of perpetual bonds redeemable for shares (TDIRAs) 652
Dividends paid and capital changes relative to non-controlling interests 609
Other acquisitions and proceeds from sales of investment securities
(net of cash acquired or transferred) (1) 131
Other items 240
Net financial debt as of December 31, 2009 33,941
(1) See Section 9.1.4.1 Liquidity and cash fl ows .
(2) See Section 9.1.1.4 Key events in 2009 and Notes 21, 28 and 30 to the consolidated fi nancial statements.
(3) See Notes 3, 22, 28, 29, 31 and 32 to the consolidated fi nancial statements.
(4) Acquisition of 18.4% of FT España for 1,387 million euros, partially offset by the end of the price guarantee in 2009 given to the minority shareholders of FT España for 810 million
euros (see Section 9.1.1.4 Key events in 2009 and Notes 3, 21, 22, 29 and 31 to the consolidated fi nancial statements).
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM