VINCI - 2008 annual report

Parent company fi nancial statements
Retirement benefi t obligations are calculated on the basis of the following assumptions:
268 VINCI __ 2008 ANNUAL REPORT
31/12/2008 31/12/2007
Discount rate 5.60% 5.25%
Infl ation rate 2.0% 1.9%
Rate of salary increases 2% - 4.2% 2% - 4.2%
Rate of pension increases 1.5% - 2.5% 1.5% - 2.5%
Probable average remaining working life of employees 10 to 15 years 10 to 15 years
Provisions for other liabilities relate in particular to VINCI’s obligation to deliver shares under the free share plans decided by the Board of
Directors on 12 December 2006 (with eff ect from 2 January 2007) and on 11 December 2007 (with eff ect from 2 January 2008).
Provisions have been taken in this respect for €6.6 million and €35 million respectively taking account of the probability, at 31 December
2008, that these shares will be defi nitively granted.
Provisions for other liabilities also relate to disputes and cases of an exceptional nature and to balance sheet warranties relating to disposal
of shareholdings in subsidiaries and affi liated companies in previous years.
8. Net financial debt
(in € millions) 2008 2007
Bonds 998.2 1,000.0
Borrowings from fi nancial institutions 1,750.0 1,750.0
Accrued interest on bonds 30.4 30.4
Long-term fi nancial debt 2,778.6 2,780.4
Borrowings from fi nancial institutions and bank overdrafts 32.5 18.9
Other borrowings and fi nancial debt 16.1 145.0
Cash management current accounts of related companies 3,119.7 2,525.5
Short-term fi nancial debt 3,168.3 2,689.4
Total fi nancial debt 5,946.9 5,469.8
Receivables connected to investments in subsidiaries and affi liated companies and loans (*) (1,324.8) (875.7)
Liquidity contract UCITS (5.0) (59.4)
Marketable securities (2,602.7) (1,951.9)
Cash management current accounts of related companies (562.5) (332.8)
Cash (99.7) (15.5)
Short-term cash (3,269.9) (2,359.6)
Net fi nancial debt 1,352.2 2,234.5
*This item includes the loans granted by VINCI to its subsidiaries for €1,240.6 million at 31 December 2008 and €822.2 million at 31 December 2007
VINCI’s net fi nancial debt at 31 December 2008 amounted to €1,352.2 million, compared with €2,234.5 million the year before, a decrease of
€882.3 million.
The line item Bonds relates to the €1 billion issue made in three tranches in July 2002 (€600 million), November 2002 (€250 million), and May
2003 (€150 million). This loan pays interest at 5.875% and matures on 22 July 2009.
The €3 billion syndicated loan aff orded by a bank syndicate in connection with the fi nancing of the acquisition of ASF in 2006 was partially
repaid in 2007, for €1,250 million, reducing the amount outstanding at 31 December 2007 to €1,750 million. There was no change in 2008.
At the 2007 balance sheet date, the item Other borrowings and fi nancial debt included commercial paper outstanding for €145 million. No
issues of commercial paper were outstanding at the 2008 balance sheet date.
The cash management current accounts of related companies, shown under assets and liabilities, represent the balance of movements of cash
between the subsidiaries and the holding company under the Group’s centralised cash management system.
Marketable securities mainly comprise certifi cates of deposit and UCITS with maturities of usually less than three months of which the carrying
amount is close to their cash-in value. For information, this was €2,591.8 million at 31 December 2008. The item Marketable securities
also includes the premiums paid on call options on VINCI shares.