Registration Document - Pernod Ricard

Cash and capital
Reconciliation of net financial debt. — The Group uses net financial
debt in the management of its cash and its net debt capacity. A
reconciliation of net financial debt and the main balance-sheet items
MANAGEMENT REPORT 3
Cash and capital
is provided in Note 18 – Financial instruments in the Notes to the
consolidated annual financial statements. The following table shows
the change in net debt over the year:
In euro million 30.06.2008 30.06.2009
Profit from recurring operations 1,522 1,846
Other operating income and expenses (166) (205)
• Depreciation of fixed assets
166 157
• Net changes in provisions, excluding investments in the pension funds
acquired from Allied Domecq (120) (81)
• Net change in impairment of goodwill and intangible assets
3 147
• Fair value adjustments on commercial derivatives and biological assets
(8) (8)
• Net (gain)/loss on disposal of assets
(4) (225)
• Share-based payment
36 38
• Non-cash impact from other operating income and expenses (1) 108 115
SUB-TOTAL DEPRECIATION OF FIXED ASSETS, CHANGE IN PROVISIONS AND OTHER 181 141
Self-financing capacity 1,537 1,782
Decrease/(increase) in net working capital requirements (1) (533) 246
Net i nterest and tax payments (3) (501) (794)
Net acquisitions of non-financial assets and other (2) (188) (197)
Free cash flow 315 1,037
Net d isposals of financial assets, investments in the pension funds acquired from Allied Domecq and others (2)(3) (277) 367
Change in the scope of consolidation 0 (5,933)
• Capital increase and other change in shareholders’ equity
13 1,001
• Dividends paid
(280) (301)
• (Acquisition)/disposal of treasury shares
196 6
SUB-TOTAL DIVIDENDS, PURCHASE OF TREASURY SHARES AND OTHER (71) 707
Decrease/(increase) in debt (before exchange-rate impacts) (34) (3,823)
Net effect of exchange rate changes 405 (922)
DECREASE/(INCREASE) IN DEBT (AFTER EXCHANGE-RATE IMPACTS) 372 (4,746)
(1) As of 30 June 2008, after restatement for the non-cash impact of the cancellation of the 30 million dollar advance historically granted to SPI Group.
(2) As of 30 June 2008, after the reclassification as acquisitions of financial assets of the payment made to SPI Group in March 2008, constituting an expense attributable
directly to the acquisition of V&S.
(3) As of 30 June 2008, after the reclassification of a residual charge relating to the disposal of operations acquired from Allied Domecq with a view to being sold.
The setting up of various programmes involving the factoring or sale
of receivables had the following impact as of 30 June 2009:
◆ a €351 million improvement in working capital requirements;
a €(22) million increase in financial assets (security deposits paid
to banks).
I REFERENCE DOCUMENT 2008/2009 I PERNOD RICARD 43
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