VINCI - 2005 annual report

PARENT COMPANY FINANCIAL
STATEMENTS
A. SUMMARY OF PARENT COMPANY FINANCIAL
STATEMENTS
The parent company’s detailed financial statements are available from
the VINCI Investor Relations Department.
1. KEY EVENTS IN 2005
1.1 OCEANE BONDS
Early redemption of the 2001-2007 OCEANE bonds
Following the strong increase in its share price, VINCI decided to redeem
early all the OCEANE bonds issued on 20 July 2001 maturing in January
2007.
The early redemption was proposed on 22 August 2005 at €103.19 per
bond plus accrued interest since 1 January 2005 of €0.57, making a total
of €103.76 per bond.
Conversion into shares was requested for almost all the bonds (99.72%),
leading to the issue of 11,468,262 shares resulting in an increase in the
Company’s equity of €516.1 million.
1.2 SHARE BUY-BACK POLICY
Between 1 January 2005 and 6 June 2005, the Company purchased
6,299,788 shares at an average price of €58.70 per share. During this same
period, 2,500,000 shares were cancelled, by a reduction of the share
capital.
Given its development projects, VINCI has not bought any of its treasury
shares since June 2005. Furthermore, on 6 September 2005 the Board of
Directors decided to alter the allocation of the treasury shares available for
cancellation by allowing them to be used as consideration in an external
growth transaction or to be sold.
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VINCI 2005 ANNUAL REPORT
VINCI’s individual fi nancial statements have been prepared in accordance
with the French accounting rules and regulations (CRC Regulation 99-03).
Early redemption of the 2002-2018 OCEANE bonds
VINCI also decided to redeem early all the OCEANE bonds issued on
2 May 2002 maturing in January 2018.
The early redemption was proposed for 1 January 2006 at €96.52 per
bond plus accrued interest at 1 January 2006 of €1.80, making a total of
€98.32 per bond.
Conversion into shares was requested for almost all the bonds (99.90%)
during the fourth quarter, leading to the issue of 11,105,716 shares resulting
in an increase in the equity of €499.8 million.
Together, these two transactions have resulted in a reduction of the net fi nancial debt of €1,015.9 million and a strengthening of equity by the same
amount.
1,683,478 shares were sold in 2005 in connection with the exercise of
share purchase options.
As a result, VINCI held 6,835,016 treasury shares at 31 December 2005
(representing 3.5% of the share capital) of which 2,059,228 shares were
allocated to covering share option plans. The balance, of 4,775,788 shares,
is intended to be used as consideration in external growth transactions or to
be sold.