6 - Vicat

1010.3.CASH FLOW AND EQUITYINDEBTEDNESSThe interest rate risk related to the variable rate ofVicat S.A. banking lines was limited by setting up capagreements for a total amount of € 260 million over a5-year term (140 million payable at en 2013 and 120million at the beginning of 2014).The interest rate risk on the variable rate debt of theNational Cement Company was limited by settingup in 2008 3-year hedging agreements for a totalamount of € 60 million equally distributed betweencaps and swaps. An additional cap agreement for10 million dollars was concluded in 2009 for a periodof 2 years.Fixed Rate/Variable Rate Indebtedness as atDecember 31, 2009300250200150100Due date for the gross indebtedness as atDecember 31, 2009227(in millions of euros)10812625213526 %fixed-ratedebt74 %variable-ratedebt504002010 2011 2012 2013 2014 >=2015Due dateAverage maturity is slightly more than 3 years. The2010 due date essentially corresponds to final maturityof the first tranche of the Vicat PPUS (€ 141million), and to maturity of a short-term credit line atBastas in Turkey (109 million Turkish Lira, equivalentto € 51 million). Those after 2013 correspond to tworepayment terms of the PPUS (2013 and 2015) andto the Vicat SA bilateral lines (2014) used to hedgethe liquidity risk of commercial paper and spots(€ 216 million at 31 December, 2009).10.3.3. Cash surplusesCash and cash equivalents include cash at bank (€ 57million as at December 31, 2009) and short-term investmentshaving a due date of less than 3 monthsand not presenting a risk of variation of value of theprincipal (€ 178 million as at December 31, 2009).Cash is managed country by country, under the controlof the Group’s financial management, with cashpooling systems in France, the United States andSwitzerland. Any surplus is either invested locally orreplaced if necessary into the Group. When the cashsurplus is intended to be used within a limited periodfor financing needs in the country concerned, thissurplus is placed locally.10.3.4. Net indebtednessThe Group’s net indebtedness is analysed asfollows :(in millions of euros) 12/31/09 12/31/08Change%Grossindebtedness 888 787 13Cash and cashequivalents 235 110 114Net indebtedness 653 677 -4The gearing was 31.4 % at the end of 2009, comparedwith 34.6 % at December 31, 2008.90 VICAT - 2009 registration document