A N N U A L R E P O R T - Bouygues

NOTE 13: OPERATING PROFIT 1,748
Current operating profit
2005 2004
Sales 24,073 20,894
Other revenues from operations 147 141
Purchases used in production and external charges (15,906) (13,499)
Taxes other than income tax (512) (470)
Personnel costs (4,808) (4,380)
Net depreciation, amortisation, provisions and impairment
Depreciation and amortisation (1,196) (1,103)
Net charge to provisions and impairment losses (457) (283)
Changes in production & property development inventories 58 (13)
Other operating income and expenses 453 270
Reversals of provisions no longer required (1) 223 (1) 125
Net gain on disposal of non-current assets 84 91
Other income and expenses 146 54
Current operating profit 1,852 1,557
Non-current operating income and expenses (2) (104) 0
Operating profit 1,748 1,557
See Note 17 for a breakdown by business segment
(1) Reversals of provisions no longer required are individually immaterial.
(2) fines for anti-competitive practices in 2005:
- fine for alleged collusion in the mobile telephony market (ruling by the French competition commission) 58
- construction segment 46
NOTE 14: COST OF NET DEBT AND OTHER
FINANCIAL INCOME AND EXPENSES (187)
Cost of net debt 2005 2004
Cost of gross debt (224) (234)
Interest income on cash and equivalents 37 75
Total (187) (159)
The cost of net debt breaks down as follows:
• Net interest charges on debt (216) (212)
• Interest charges on finance leases (6) (6)
• Net interest charges related to cash and equivalents 2 15
• Positive and negative effects of financial instruments on net debt (5) (4)
• Income from available-for-sale securities and cash equivalents 38 48
Under IFRS, foreign exchange gains and losses are treated as operating items.
(187) (159)
Other financial income and expenses 2005 2004
Dividends from non-consolidated companies 5 4
Net charges: provisions and impairment of financial items 8 (3)
Net discounting expense (12) (1) (3)
Change in fair value of other financial assets and financial liabilities 4 (2)
Current account waivers, gains / losses on disposals of investments in
non-consolidated companies and other financial assets, net interest other
than on debt, commitment and arrangement fees, advance rent and other (34) (26)
Total (29) (30)
See Note 17 for an analysis of the cost of net debt by business segment
(1) includes: (10) in respect of the liability recognised for the promise to buy Bouygues Telecom shares from BNP Paribas
190