2005 Annual Report - Touax

sale are financed entirely by financial debt. In summary,
the Group’s investment policy is to limit the
debt-to-equity ratio to 2-to-1 to finance assets on its
balance sheet, part of which is intended for sale.
The sale of assets to investors forms part of the
Group’s strategy and allows it to finance growth
without recourse to debt. The Group’s growth allows
economies of scale and hence increased margins.
The Group does not use financing tools for current
assets such as “Dailly” assignment, factoring, securitization
or assignment of receivables.
It should be noted that leasing contracts are classified
as finance leases where the Group benefits from
the advantages and risks inherent in ownership. For
example, the existence of an automatic ownership
transfer clause, the existence of a purchase option
at a value well below market value, equivalence between
the term of the lease and the life of the asset
or between the discounted value of future payments
in respect of the lease and the value of the asset are
factors which generally lead to leasing contracts
being considered as finance leases.
Net investments during financial years (€ thousands) 2005 2004
Net intangible investments 99 28
Net tangible investments 21,083 (12,285)
Net financial investments 381 (576)
Total net investments 21,563 (12,833)
Breakdown of net investments by business segment (€ thousands) 2005 2004
Shipping containers (1,414) (530)
Modular buildings 10,284 (11,638)
River barges 7,434 (1,037)
Railcars 4,725 319
Miscellaneous 534 53
Total 21,563 (12,833)
Financing conditions of net investments (€ thousands) 2005 2004
Treasury / borrowings 21,265 2,314
Leasing 6,694 (250)
Management contract with third-party investors (6,396) (14,897)
Total 21,563 (12,833)
annual report 2005
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