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4Financial position – resultsOverview of the Group’s financial position at 31 December 2012Overview of the Group’s financial positionat 31 December 2012Consolidated resultsReported sales for 2012 were €3,852 million, compared with€3,944 million for 2011.Recurring operating income declined 37% to €56 million, downfrom €89 million in 2011 (which included a €25 million gainarising on changes to pension funds).The Group posted an operating loss of €68 million in 2012, comparedwith a loss of €3 million recorded one year previously. Thisincluded “Other operating income and expenses, net” for a negativeamount of €124 million, mainly comprising:■ ■ €52 million in restructuring costs (€44 million in 2011);■■net additions to provisions for asset impairment losses of€53 million, of which €30 million were recorded by Arjowigginsand €23 million by Antalis (in 2011, Arjowiggins booked netadditions of €61 million).The net financial loss of €51 million was a deterioration on theprior year loss of €40 million due to the combined effect of:■■a €5 million increase in interest expense in line with the highermargin applicable to amounts drawn down by the Group on thecredit facilities renewed in April 2012;■■amortisation of the costs of renewing these credit facilities on astraight-line basis for an amount of €4 million.The Group’s effective tax rate in 2012 was 0% due to a net taxexpense of zero for the period, versus a negative rate of 81.4% in2011. These rates mainly reflect the impacts of the following:■ ■ €25 million in unrecognised deferred tax assets in respect oftax loss carryforwards in 2012, compared to an amount of€40 million in 2011;■■tax savings of €3 million on unrecognised prior-year tax losses,compared with cancellation of net recognised prior-periodlosses of €11 million in 2011;■ ■ €7 million in impairment recognised on goodwill and deemedto be non-deductible for tax purposes (€7 million was also recognisedin 2011).Net loss attributable to owners was €119 million, compared to anet loss of €77 million in 2011.Consolidated assets totalled €2,474 million at 31 December 2012,versus €2,711 million one year earlier.Non-current assets totalled €1,176 million at 31 December 2012,compared to €1,240 million at 31 December 2011. The differencewas mainly due to €53 million in impairment loss provisions recognisedon fixed assets during the period.Shareholders’ equity totalled €654 million compared with€669 million at 31 December 2011.Gross debt, i.e., short- and long-term debt, fell from €934 millionat 31 December 2011, to €723 million at 31 December 2012.Net debt, i.e., gross debt less cash and cash equivalents totalling€183 million (€323 million in 2011) and sundry items amountingto €2 million (€2 million in 2011) also dropped to €538 million at31 December 2012, compared to €609 million one year previously.92 | Sequana | 2012 Document de référence (English version)