VINCI - 2008 annual report

Notes to the fi nancial statements
A. Key events
1. Changes in shareholdings
The value of VINCI’s shareholding in ASF has been revised at 31 December 2008. The combined eff ect of this re-estimation and the payment
in 2007 of an exceptional dividend of €3.3 billion, of which €2.5 billion was paid to VINCI, has led to the recognition of an impairment loss of
€1,158 million in respect of the shares.
In November 2008, VINCI sold its shareholding in ADP to a subsidiary of VINCI Concessions for €139.1 million, realising a capital loss of
€86.6 million.
2. Transactions on treasury shares
During 2008, VINCI purchased 5,258,274 of its own shares for a total of €241.6 million, an average price of €45.96 per share (excluding purchases
and sales of shares eff ected under a liquidity contract).
During the same period, 176,641 shares were sold for €2 million to benefi ciaries of share purchase options exercised.
The value of VINCI treasury shares has been adjusted on the basis of the average share price in December, leading to recognition of an impairment
loss of €393.7 million.
300,000 shares have been sold under a liquidity contract managed by Rothschild & Cie Banque. This was suspended on 23 December 2008 and
the bank has returned €73 million to VINCI.
3. Payment of stock dividend
At the Shareholders’ General Meeting of 15 May 2008, a resolution was put allowing VINCI’s shareholders to opt for payment of the 2007 fi nal
dividend of €1.05 per share in VINCI shares. This resulted in the issue of 4,440,132 new shares and an increase in equity of €196.9 million.
4. Employee shareholding plans
VINCI has complied with the new accounting rules (CRC Regulation 2008-15) and tax legislation relating to the treatment of benefi ts connected
with employee shareholding, in particular those relating to free share plans and the company savings fund plans.
In this connection, in the last quarter of 2008, VINCI has recharged the cost of the 2007 free share plan to its subsidiaries for a total of €100.5 million.
B. Accounting rules and methods
The fi nancial statements at 31 December 2008 have been prepared in accordance with the rules applicable in France:
- the French law of 30 April 1983 and its application decree of 29 November 1983; and
- the 1999 French General Accounting Plan, as described in Regulation 1999-03 of the Comité de la réglementation comptable (CRC) and amending
regulations.
However, in a departure from the General Accounting Plan and to improve clarity, VINCI has decided to present changes in provisions relating to
income and expense items on the same line of the income statement as determined by their nature, which may be operating, fi nancial, exceptional
or tax. Transactions relating to shareholdings and associated changes in provisions are therefore reported under exceptional income and
expenses except for dividends received and transactions on treasury shares, which are presented under fi nancial income and expenses.
Changes in accounting policy:
CRC Regulation 2008-15, relating to the accounting treatment of employee share purchase or subscription options plans and free share plans, has
set down the methods for determining the corresponding liabilities. This regulation provides that whenever an expense becomes probable, a provision
should be recognised on a straight-line basis over the vesting period of the rights. Previously, VINCI recognised a liability for the total amounts
of the rights.
In accordance with the possibility off ered by CNC Recommendation 2009-R-01, VINCI has elected for prospective application of this change of
policy.
Application of this new policy in 2008 has led VINCI to recognise an expense of €41.6 million in respect of the existing employee shareholding
plans.
260 VINCI __ 2008 ANNUAL REPORT