2010 annual report - touax group

Annual report 2010
At December 31, 2008
Types of financial liability Consolidated financial Valuation at Diff en% Sensitivity Diff compared
(€ thousands) statements fair value +1% with fair value
Financial liabilities valued at amortized cost 297,161 299,339 0.73% 292,607 -2.25%
Financial liabilities valued at fair value 743 743 0.00% 0 0.00%
TOTAL 297,904 300,082 0.73% 292,607 -2.49%
As stated in note 1.18.3, financial liabilities are valued at cost
amortized by the “effective interest rate” method.
Applying the “fair value” principle would give financial liabilities
a value of €333,217,000 using closing prices on December 31,
2010.
• The fair value of fixed-rate debt is determined for each borrowing
by discounting future cash-flows. The discount rate used
is the average rate of fixed-rate debt considered representative
of the financing rate for the Group's risk class with no
listed securities (credit derivatives or bond yields).
• The net book value of variable-rate debt (both long-term and
short-term) provides a reasonable approximation of their fair
value.
Derivative liabilities are assessed using the values obtained
from first-rate financial institutions.
➜ OBSAR
The fair value of the debt component was calculated on the original
date (in 2007), using a market interest rate for an
equivalent non-convertible loan. The remainder – which is the
value of the equity component related to the conversion option
– is included in consolidated reserves (see the Schedule of
Changes in Shareholders’ Equity).
The bonded debt in the Balance Sheet may be analyzed as
follows:
(€ thousands) 2010
Par value of the equity warrant bond loan
at the issue date (March 8, 2007) 40,393
Loan issue costs (712)
Shareholders' equity component (628)
Debt component during initial
recognition of the loan 39,053
Interest payable 1,944
Coupons paid (1,543)
Accrued coupons (200)
Debt component at December 31, 2007: 39,254
Interest payable 2,493
Coupons paid (2,242)
Debt component at December 31, 2008: 39,505
Interest payable 1,194
Coupons paid (926)
Debt component at December 31, 2009: 39,773
Interest payable 857
Coupons paid (585)
Debt component at December 31, 2010: 40,045
Redemption date March 8, 2012
❙ note 18.2.2. Breakdown by due date of loans and payments as of December 31, 2010
(€ thousands) 2011 2012 2013 2014 2015 > 5 years Total
Bond issues 40,393 40,393
Medium/long-term loans with recourse 4,398 3,615 3,484 2,829 1,021 1,143 16,490
Medium/long-term loans without recourse 3,208 2,959 2,959 9,741 2,959 19,361 41,187
Finance leasing commitments 18,233 18,222 18,619 17,644 15,615 26,188 114,521
Short-term loans with recourse 50,215 1,333 51,548
Short-term loans without recourse 7,003 42,000 49,003
Total capital flow on loans 83,057 66,522 67,062 30,214 19,595 46,692 313,142
Future interest flow on loans 9,076 7,088 5,643 4,374 2,919 3,530 32,630
Total flow on loans 92,133 73,610 72,705 34,588 22,514 50,222 345,772
This table only shows cash flows actually contracted for, and
accordingly excludes those connected with borrowing such as
overdrafts and annually renewed lines of credit to which the
banks have not made a firm commitment. These renewable
sources of finance are shown under Current Financial Liabilities
and described in note 18.2.1
Interest payable in the future on variable rate loans has been
estimated on the basis of the interest rates prevailing on
December 31, 2010.
❙ note 18.2.3. Commitments and specific clauses
of the Loans
Some short and medium term bank loans include default
clauses based on the respect of financial ratios (financial covenants).
These clauses applied to €171 million of debt as of
December 31, 2010 (see the following table). They entitle banks
to insist on early repayment if the terms of the covenant are not
met.
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