2011 Annual report - touax group

❙ Impact of the exchange rate on the operating income before tax and extraordinary items and on shareholders'
equity
The Group’s exposure to fluctuations in exchange rates is mainly concentrated on shifts in the US dollar, the Czech crown and
the Polish zloty; other foreign currencies are insignificant. The parity used to convert foreign currency accounts of subsidiaries
into euros has the following impact on the Group’s income and share of shareholders’ equity in case of a 10% fall in value:
Impact on operating income Impact on shareholders' equity
after distribution to investorsl
(Group's share)
Fall of 10% in the US dollar -2.29% -2.82%
Fall of 10% in the Czech crown -0.68% -0.90%
Fall of 10% in the zloty -1.30% -0.45%
The Modular Buildings division works mainly in euros, in Czech
crowns and in Polish zloty. The River Barges and Freight
Railcars divisions are mainly denominated in euros within
Europe, and in USD in the USA and South America. The business
of leasing and selling shipping containers is international, and
mainly conducted in USD, the remainder being billed in some
25 international currencies – since the containers may be
returned in about 25 different countries.
For long-term assets and liabilities the Group's policy is to
correlate fixed assets denominated in foreign currency with
borrowings denominated in the same currency, to avoid
exposure to foreign exchange risk.
➜ Equity Risk
Equity risk is the risk of an adverse change in the price of
equity securities held by the Group.
The Group’s investment strategy provides for only investing
surplus liquidity in cash-based mutual funds (UCITS) for short
periods. The Group has no dealings on the financial stock
markets.
The main equity risk concerns the liquidity agreement it signed
with an investment services provider. The amounts currently
invested do not represent a significant risk for the Group.
➜ Raw material prices risk
This risk is explained in section 4.4.2.
note 27. Related Parties as defined in IAS 24
The definition used for related parties is that given in IAS 24.9.
Related parties are the key management personnel of TOUAX
SCA, i.e. those who have authority and responsibility for planning,
managing, and controlling the Group’s activities. The officers
who fit this description are Fabrice and Raphaël WALEWSKI,
the Managing Partners of TOUAX SCA, as well as Société Holding
de Gestion et de Participation (SHGP) and Société Holding de
Gestion et de Location (SHGL), General Partners. Members of
the Supervisory Board, in view of their control function, are
also regarded as related parties.
The amount paid to the General Partners during 2011 for their
2010 compensation in accordance with the articles of association
was €936,000.
A related party has a significant influence if it is able to take
part in financial and operational policy decisions, without
however exerting control over these policies. This influence is
deemed to be significant if a physical person, legal entity or group
of persons holds over 20% of the voting rights: Alexandre,
Fabrice and Raphaël WALEWSKI acting together hold directly
and indirectly over 20% of the shares.
The Group has not concluded any significant transactions with
related parties.
Compensation of the key management personnel does not
include any of the five criteria of IAS 24.16: short-term benefits,
post-employment benefits, other long-term benefits, termination
benefits or share-based payments. The corporate officers
receive none of these benefits. (cf. details in Section 15 page 41).
A transaction was indirectly concluded between TOUAX SCA
and its Managing Partners, through a real estate investment
trust, relating to the leasing of its premises in the Tour Franklin
for a total of €814,000.
The Group manages equipment with a gross value of €500,000
belonging to the Managing Partners, and of €2 million belonging
to the General Partners. These investments generated total
income of approximately €118,000. The Managing Partners
and General Partners receive no preferential treatment in
these dealings, since this equipment is managed under the
same terms as equipment managed on behalf of third parties.
In addition, management of this equipment is governed by a
Code of Practice approved by the Supervisory Board.
The total compensation of the corporate officers amounted to
€828,100 in 2011.
The pension and supplementary pension commitments for
members of the Executive Committee are immaterial (statutory
retirement benefits). No stock options are granted to the corporate
officers. They are granted to the other members of the Executive
Committee (cf. stock option table given in note 21 of the Notes
to the consolidated financial statements, page 89).
Consolidated financial statements
Financial information concerning the issuer’s assets, financial position and result
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