VINCI - 2005 annual report

The maturities of contractual obligations are as follows:
CONSOLIDATED FINANCIAL STATEMENTS
(in € millions) Total within 1 year between 1 and 5 years in more than 5 years
Operating leases 703.8 197.2 321.2 185.3
Purchase and capital expenditure obligations (1) 167.6 52.1 103.2 12.3
Capital expenditure obligations connected
with the acquisition of ASF (2) 9,100.0 9,100.0
(1) Excluding investment obligations related to concession contracts.
(2) ) See Key Events (Note A.1.2).
29.2 OTHER COMMITMENTS MADE
Sureties and guarantees
The amount of €314.6 million relates to sureties and guarantees made
by the Group that are not directly in respect of construction contracts,
concession contracts or property contracts. They may relate to guarantees
given on financing.
Collateral securities (mortgages and collateral pledged in exchange for finance)
Collateral security given, other than under concession contracts, mainly
relates to CFE (property projects and dredging activity at DEME, 50%
subsidiary of CFE) and to Vinci Immobilier.
Joint and several guarantees covering unconsolidated partnerships (SNCs, Economic Interest
Groupings, etc.)
Part of VINCI’s business in the Construction and Roads business lines is
conducted through joint-venture partnership entities (SEPs), in line with
industry practice. In partnerships, partners are legally jointly and severally
liable for that entity’s debts to third parties, without limit. In order to
contain its risks, the Group usually makes a study of its partners’ solvency
when partnerships are entered into, which may result in the setting up of
crossed counter guarantees between partners.
Whenever the Group is aware of a particular risk relating to a joint venture
partnership’s activity, a provision is taken in the consolidated financial
statements.
The amount shown under off balance sheet commitments in respect of
joint and several guarantees is 100% of the liabilities of the partnerships
in question less equity and financial debt (loans or current account
advances) due to partners.
If the commitment were to be weighted by the Group’s proportionate
holding in these companies, the commitment would reduce from €123.3
million to €70.7 million.
Given in particular the quality of its partners, the Group considers that the
risk of its guarantee being invoked in respect of these commitments is
slight.
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