ANNUAL REPORT 2007 | 2008 - Gimv

Other operating income and expenses
OPERATING INCOME:
Financial result
2007-2008 2006-2007 Change
Foreign exchange income 273 195 78
Result from derivatives 4 741 1 406 3 334
Other operating income 378 290 88
Total operating income
OPERATING EXPENSES:
5 393 1 892 3 500
Other fi nancial expenses -931 -1 107 176
Provisions for liabilities and charges -7 919 -4 155 -3 764
Provision for pensions 425 -1 568 1 993
Taxes and operating costs -890 -1 103 213
Foreign exchange expenses -52 -43 -9
Other operating expenses -5 484 742 -6 226
Total operating expenses -14 851 7 234 -7 617
Operating result -9 459 -5 342 -4 117
The other operating result fell by EUR 4 117. This fall is due
to positive hedging results and a lower provision for pensions.
Provisions for liabilities and charges and other operating expenses
rose.
2007-2008 2006-2007 Change
Financial income 21 270 20 298 972
Financial costs -9 080 -353 -8 727
Total 12 191 19 945 -7 754
The fi nancial result fell by EUR 7 754. This is due mainly to
the EUR 8 946 increase in the reduction in value on fi nancial
derivatives, in particular on CDOs in the treasury portfolio.
Income taxes
Gimv traditionally pays little tax. The Group’s main activity consists
of taking shareholdings with the intention of reselling them
later with a capital gain. Capital gains are tax-exempt in Belgium.
Gimv NV has extensive tax loss carryforwards and fi nally taxed
income from the past. With the introduction of notional interest
deduction, an additional buffer of notional interest deduction
is created every year, which can be carried forward for seven
years.
Gimv does not record deferred taxation on the deductible
temporary differences and on tax loss carryforwards. This is
because, in the group’s specifi c tax situation, the likelihood that
these can be applied in the near future is considered low.
Minority interests
The minority interests relate mainly to the portion of the net
profi t due to employees who participate in the co-investment
companies, and results from the positive evolution in the value
of the underlying portfolio. Another important minority interest is
the shareholding in the Gimv ARKIV ICT Fund of Arkimedes.
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