The Benetton Group Annual Report 1996

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Statements of consolidated cash flows for the years ended December 31, 1994, 1995 and 1996 (in millions of Lire) (Thousands Cash flows from operating activities of US $) (1) 1994 1995 1996 1996 Income before minority interests 207,189 222,436 250,529 164,930 Depreciation and amortization 95,612 100,989 94,912 62,483 Amortization of deferred charges on long-term loans 1,832 2,033 4,596 3,026 Provision for collection losses and other non-cash charges 82,537 84,615 103,616 68,213 Provision/(utilization) of exchange fluctuations reserve (7,400) (4,139) 9,137 6,015 Extraordinary provision for contingencies - 25,398 19,236 12,664 Provision for income taxes 150,554 188,659 206,638 136,035 Losses (gains) on disposal of assets, investments, net 4,579 13,877 7,695 5,066 Payment of termination indemnities and use of other reserves (9,271) (19,547) (28,523) (18,777) Self-financing 525,632 614,321 667,836 439,655 Payment of taxes (250,458) (149,553) (175,755) (115,704) Increase in accounts receivable (100,768) (106,688) (112,045) (73,762) (Increase) decrease in other operating receivables (69,621) 28,301 (9,450) (6,221) (Increase) decrease in inventories (47,988) (17,202) 79,169 52,119 (Decrease) increase in accounts payable (18,338) 13,670 22,286 14,671 (Decrease) increase in other operating payables and accruals 37,101 (14,006) (12,908) (8,498) Increase in operating capital (199,614) (95,925) (32,948) (21,691) Net cash flows from operating activities 75,560 368,843 459,133 302,260 Cash flows from investing activities Purchase of new consolidated subsidiaries (21,701) (17,994) (16,926) (11,143) Purchase of tangible fixed assets (108,952) (120,605) (81,061) (53,365) Investment in intangible fixed assets (32,580) (16,068) (29,788) (19,610) Sales of tangible fixed assets 24,344 26,381 30,191 19,876 Disposal of intangible fixed assets 1,754 650 4,530 2,982 Net change in investment-related receivables and payables (2,512) 660 1,842 1,213 Net cash used in investing activities (139,647) (126,976) (91,212) (60,047) Cash flows from other investing activities Purchase of investments (358) (8,318) (3,429) (2,257) Purchase of investments to be consolidated (29,613) (11,269) (18,781) (12,364) Sales of investments 24,463 7,793 3,987 2,624 (Increase) decrease in other financial assets (6,614) (1,464) 19,610 12,910 Net cash used in other investing activities (12,122) (13,258) 1,387 913 Payment of dividends (80,200) (75,719) (78,997) (52,006) Net financing (requirement) surplus (156,409) 152,890 290,311 191,120 (1) Exchange rate: US $ 1 = Lire 1,519 as of December 31, 1996.
Cash flows from financing activities (in millions of Lire) (Thousands of US $) (1) 1994 1995 1996 1996 Change in stockholders' equity 300,767 4,900 1,384 911 Change in short-term borrowing (158,270) 99,378 253,564 166,928 Proceeds from issuance of long-term debt 56,422 52,703 36,498 24,028 Repayment of long-term debt (147,932) (75,937) (358,931) (236,294) Change in securities held as fixed assets (133,784) (1,069) 58,301 38,381 Increase in other financial assets (2,588) (11,361) (4,933) (3,248) Decrease in other financial assets 2,871 17,854 12,017 7,911 Assets leased to third parties 77,006 156 174 115 Decrease in lease financing (6,340) 1,883 2,261 1,488 Net cash provided (used) by financing activities (11,848) 88,507 335 220 Effect of translation adjustments (1,510) (15,217) 40,978 26,977 Net increase (decrease) in cash and cash equivalents (2) (169,767) 226,180 331,624 218,317 Cash and cash equivalents of newly acquired and disposed of subsidiaries, net (5,442) (5,768) (4,876) (3,210) Effect of translation adjustment on cash and cash equivalents 5,419 12,257 (39,362) (25,913) Cash and cash equivalents at the beginning of the year 813,065 643,275 875,944 576,659 Cash and cash equivalents at the end of the year 643,275 875,944 1,163,330 765,853 Supplemental disclusures of cash flow information: Cash paid during the year for interest expense 234,492 156,156 183,590 120,862 The "Payment of taxes" and "Change in other operating receivables" captions are stated net of tax credits totaling Lire 60,855 million, which were transferred within the Group in order to reduce the payment of outstanding taxes and advances. (1) Exchange rate: US $ 1 = Lire 1,519 as of December 31, 1996. (2) Cash and cash equivalents include liquid funds, other securities and other financial receivables considered financial assets not held as fixed assets. The accompanying notes to consolidated financial statements are an integral part of these consolidated statements.
Page 1: The Benetton Group Annual Report 19
Page 5: Dear Shareholders, in 1996 the Bene
Page 8 and 9: Manufacturing companies invested su
Page 11: Signori Azionisti, nell’esercizio
Page 14 and 15: Gli investimenti I programmi di inn
Page 17 and 18: Consolidated financial statements a
Page 19: The Benetton Group The Benetton Gro
Page 23 and 24: Management’s discussion and analy
Page 25: Net capital employed Net working ca
Page 28 and 29: Consolidated balance sheet as of De
Page 30 and 31: Consolidated balance sheet as of De
Page 32 and 33: Consolidated statements of income f
Page 34 and 35: Statement of changes in consolidate
Page 38 and 39: NOTES TO THE CONSOLIDATED FINANCIAL
Page 40 and 41: 4. Accounting policies The accounti
Page 42 and 43: Reserve for employee termination in
Page 44 and 45: OTHER INFORMATION 5. Purchase of su
Page 46 and 47: COMMENTS ON THE PRINCIPAL ASSET CAP
Page 48 and 49: 8. Financial fixed assets Equity in
Page 50 and 51: CURRENT ASSETS 9. Inventories Inven
Page 52 and 53: Differentials on forward transactio
Page 54 and 55: Reconciliation of the stockholders'
Page 56 and 57: 20. RESERVES FOR RISKS AND CHARGES
Page 58 and 59: 22. ACCOUNTS PAYABLE The compositio
Page 60 and 61: Due to other providers of finance A
Page 62 and 63: 23. ACCRUED EXPENSES AND DEFERRED I
Page 64 and 65: Sales of core products, by business
Page 66 and 67: Writedowns The "Writedown of curren
Page 68 and 69: Expense This caption includes: 1995
Page 70 and 71: As those proceedings continue, a se
Page 72 and 73: Generally accepted US accounting pr
Page 74 and 75: The following tables summarize the
Page 76 and 77: Differences which do not have an ef
Page 78 and 79: Companies and Groups included withi
Page 80 and 81: Consolidated balance sheets as of A
Page 82 and 83: Consolidated statements of income f
Page 84 and 85: REPORT OF THE BOARD OF STATUTORY AU
Page 87:
Information for Stockholders Inform
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The Benetton Group Annual Report 1996

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