Annual Report 2011 - Analist.be

GlossaryFor terms found in the section presenting financial data onthe investments, from page 21 to page 65, please refer tothe definitions provided by each company in their financialcommunication.The specific terminology used in the section on “Accounts on31 December 2011” refers to the IFRS (International FinancialReporting Standards) rules as adopted by the European Union.The terms used in the “Corporate governance statement” referdirectly to the 2009 Belgian Code on Corporate Governanceand other specific legislation.Adjusted net assetsAdjusted net assets are a conventional reference obtainedby adding the other assets to the investments portfolio anddeducting its debts.The following valuation principles have been applied:• Investments in listed companies, including GBL treasuryshares, are valued at the closing price. However, the valueof shares allocated to cover any commitments made by thegroup is capped at the conversion/exercise price.• Investments in unlisted companies are valued at theirbook value, less any impairments, or at their share in theequity capital if this latter is higher, with the exception ofnor consolidated nor accounted under the equity methodcompanies within the Private equity sector, which are valuedat market value.• Cash/net debt, made up of cash and cash equivalents lessdebts from GBL group’s Holding component, is valuedat book value or at market value.Earnings analysisCash earnings• Cash earnings primarily include dividends on investments,income from management of net cash and tax refunds, lessgeneral overheads and taxes. Cash earnings also constitutea factor for determining the company’s dividend payout level.Mark to market and other non-cash• The concept of mark to market is one of the foundationsof the fair value method of valuation as defined in IFRSinternational accounting standards, the principle of whichis to value assets at their market value on the last day of thefinancial year.• Mark to market and other non-cash items in GBL’s accountsreflect the changes in fair value of the financial instrumentsbought or issued (trading assets, options), the actuarialcosts of financial liabilities valued at their amortized cost,as well as the elimination of certain cash earnings inaccordance with IFRS rules (dividends approved but notpaid out during the financial year, costs of capital increase/share buybacks, dividends on treasury shares, etc.). Thesechanges do not influence the group’s cash position.Operational companies (associated or consolidated) and private equity• This column shows earnings from associated operationalcompanies, namely operational companies in whichthe group has significant influence. Significant influenceis presumed to exist if the group has more than 20%voting rights, directly or indirectly through its subsidiaries.Associated operational companies are recorded in theconsolidated financial statements using the equity method.• Also included is income, group’s share, from consolidatedoperational companies, i.e. controlled by the group. Controlis presumed to exist when GBL has more than 50% votingrights in an entity, either directly or indirectly.• This column also includes the contribution of incomefrom private equity (Ergon Capital Partners I, II and III,PAI Europe III, Sagard and Sagard II).Eliminations, capital gains, impairments and reversals• The eliminations, capital gains, impairments and reversalsinclude the elimination of dividends received fromassociated or operational consolidated companies as wellas earnings on disposals, impairments and reversalsof non-current assets and on discontinued activities.Weighted average number of ordinary shares(basic calculation)This corresponds to the number of outstanding ordinaryshares at the start of the financial period, less treasury shares,adjusted by the number of ordinary shares reimbursed (capitalreduction) or issued (capital increase), or sold or bought backduring the period, multiplied by a time-based weighting factor.Weighted average number of ordinary shares(diluted calculation)It is obtained by adding potential dilutive shares to the weightedaverage number of ordinary shares (basic calculation). In thiscase, potential dilutive shares correspond to call options issuedby the group.Group’s shareholding• In capital it is the percentage interest held directly andindirectly through consolidated intermediate companies,calculated on the basis of the number of shares in issueon 31 December.• In voting rights it is the percentage held directly orindirectly through consolidated intermediate companies,calculated on the basis of the number of voting rightsexisting on 31 December, including suspended voting rights.174 Annual Report 2011