2011 Annual report - touax group

9. Analysis of the financial position and income
9.1. Financial position
The financial position is analyzed in the management report in
section 26.1 page 111.
9.2. Operating income
The operating income is analyzed in the management report in
section 26.1 page 111.
9.2.1. Unusual factors
Not applicable
9.2.2. Major changes
Not applicable
9.2.3. Governmental, economic, budgetary,
monetary and political factors
Not applicable
10. Cash and capital
10.1. Group capital
The Group’s financial and cash resources are described in the
Notes to the consolidated financial statements in section 20.1
page 48 and in note 18 page 81 with details on the liquidity and
interest rate risks.
10.2. Cash flow
The Group’s cash flow is described and explained in the cash flow
statement in the consolidated financial statements in section 20.1
on page 48.
10.3. Borrowing conditions
and financing structure
The borrowing conditions and financing structure are described
in the Notes to the consolidated financial statements in section
20.1, note 18.2.1 page 84 with details on the liquidity and interest
rate risks in section 20.1, note 26 page 91.
The Group uses a wide range of instruments to meet its financing
requirements:
• Spot lines (364 days) and overdraft lines are used for
occasional working capital financing needs and pre-financing
of assets (in order to create high-value asset portfolios prior
to long-term financing or sale to third-party investors);
• Revolving credit lines which can be drawn by provisory notes
are used for pre-financing the assets;
• Bond loans with redeemable warrants are used for
pre-financing the assets;
• Medium-term loans and lines for financing assets with
recourse (leasing, financial leasing, etc.) are used for financing
assets kept by the Group;
• Non-recourse credit lines are used for pre-financing assets
(shipping containers and railcars) as well as the long-term
financing of equipment that the Group wishes to keep on its
balance sheet.
10.4. Restriction on the use of
capital that has had or could have
a significant direct or indirect effect
on the issuer’s operations
To the best of our knowledge, there are no restrictions on
either cash flows from the subsidiaries to the parent company
or on the use of the Group’s cash, subject to default clauses
for bank loans presented in note 18.2.3 on page 86.
10.5. Expected sources of financing
in order to meet investment
commitments
The financing sources are detailed in the firm investment
commitments in section 5.2.3 page 31.
Cash and capital 39