Notes to the Financial Statements - Efacec

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On 30 November 2006, a second Commercial Paper programme was also agreed with the Santander Totta Bank to a maximum value of 7,500,000 Euro. The programme has a contract period of 5 years with annual renewals. EFACEC Capital can issue Commercial Paper by direct placement. As far as Mediation Rates are concerned, the issues have a maximum rate equal to the Euribor rate for the period in question, plus 0.325%. The current issues fall due on 17 March 2008. Bank overdrafts These overdrafts do not have a defi ned reimbursement date, and can be renewed at various times and are short term in nature. The average interest rate on them is based on Euribor plus an average spread of around 0.4%. Contractual exposure The exposure of Group loans to changes in interest rates and their contractual renegotiation dates are as follows: < 1 year 1-5 years > 5 years Total As at 31 December 2007 Bank overdrafts 6.156.341 0 0 6.156.341 Commercial paper 7.500.000 26.000.000 0 33.500.000 Bank loans 4.500.000 18.000.000 4.500.000 27.000.000 Other 0 0 0 0 As at 31 December 2006 18.156.341 44.000.000 4.500.000 66.656.341 Bank overdrafts 222.342 0 0 222.342 Commercial paper 7.000.000 26.000.000 0 33.000.000 Bank loans 0 0 27.000.000 27.000.000 Other 0 0 0 0 7.222.342 26.000.000 27.000.000 60.222.342 Non Current Maturity Dates Non current borrowing maturity dates are as follows: 2007 2006 Up to 3 years 26.000.000 30.500.000 Between 3 and 5 years 18.000.000 13.500.000 Over 5 years 4.500.000 9.000.000 Total 48.500.000 53.000.000 Effective Interest Rates The effective interest rates as at the balance sheet date were as follows: 2007 2006 Euros Euros Bank overdrafts 4,91% 4,15% Commercial paper 4,74% 3,82% Bank loans 4,92% 4,54% The fair value of current and non current bank borrowings is close to that of the balance sheet, in view of the fact that the contracted interest rate is the same as that of the market. Interest Rate Risk Final Rate Annual Cost Impact Reference fi gures (base 31 Dec.2007) 4,81% 3.587.829 Sensitivity 0,50% 5,31% 3.960.785 372.955 - 0,50% 4,31% 3.214.874 -372.955 During 2007, the net cash outfl ow of interest was 3,587 thousand Euro (Note 14). As at 31 December 2007, the average overall interest rate of EFACEC Capital’s borrowings was 4.81%. 57 2007 Consolidated and Individual Financial Statments
Statistically, as of that date, this rate meant an annual gross cost of 3,206 thousand Euro. If there were a worsening of the overall average rate of 0.5%, the annual interest cost would be 3,961 thousand Euro. If on the other hand there were a drop in overall average interest rates of 0.5%, the annual interest rate cost would be 3,215 thousand Euro. The gross impact would be +/- 373 thousand Euro. Efacec Capital Group manages the interest rate risk through derivatives contracted on its medium and long term fi nancing, thus enabling the impact of interest changes to be mitigated (Note 5). Denomination of Loans The accounting value of Group loans is entirely denominated in Euro. Unused Credit Lines The Group also has the following credit lines that have not yet been used: 2007 2006 At variable rates Due within one year 15.155.000 12.128.000 Due after 1 year 12.500.000 0 27.655.000 12.128.000 Those credit lines falling due within one year are automatically renewed for the consolidation of the fi nancial liabilities of the Group. 12. Deferred taxes Deferred tax assets and liabilities are set off against each other if the company has a legally executable right to set off current tax assets against current tax liabilities, and when the deferred taxes concern the same tax authority. The deferred tax assets and liabilities are as follows: 2007 2006 Deferred tax assets: Deferred tax assets recoverable after 12 months 598.579 606.903 Deferred tax assets recoverable within 12 months 0 0 Deferred tax liabilities: 598.579 606.903 Defered tax liabilities recoverable after 12 months 3.513.491 3.461.021 Defered tax liabilities recoverable within 12 months 0 0 3.513.491 3.461.021 -2.914.912 -2.854.117 The movements on deferred tax assets and liabilities during the year were as follows: Provisions for Investments 58 Receivables/Other Debtor Provisions Adjust. IFRS Other Total As at 1 January 2006 676.377 825.000 184.902 1.978.340 3.664.619 Carried to profi t and loss -112.353 -825.000 - -1.950.907 -2.888.260 Carried to profi t and loss - Fin Instrs. -169.455 -169.455 As at 31 December 2006 564.024 0 15.447 27.433 606.904 Carried to profi t and loss -295 0 -1.876 6.366 4.195 Carried to profi t and loss - Fin Instrs. 0 0 -12.520 0 -12.520 Other movements/reclassifi cations -41.411 41.411 0 0 0 As at 31 December 2007 522.318 41.411 1.051 33.799 598.579 Deferred tax assets for provisions will be written off proportionately to the use of the related provisions. Deferred tax assets for provisions on investments correspond to shareholdings in Liaoyang EFACEC Electric Equipment Corp and Portugal Space. In 2006, the reversal of provisions on Trade and Other debtors concerns the cancellation of the provision set up for Universal Motors, after the write off of the debt.
Page 2 and 3:
1 2 Index Consolidated Financial St
Page 4 and 5:
EFACEC Capital, SGPS, S.A. and Affi
Page 6 and 7: Attributable to shareholders Reserv
Page 8 and 9: A. General Information Notes to the
Page 10 and 11: 1.3 Reporting by segments A busines
Page 12 and 13: 1.7 Asset impairment Assets that do
Page 14 and 15: a) Sales The income recognised, in
Page 16 and 17: 2.3 Estimates of fair value The fai
Page 18 and 19: 3.2 Information by geographical seg
Page 20 and 21: 5.2 Goodwill The breakdown of goodw
Page 22 and 23: 8. Derivatives In relation to fi na
Page 24 and 25: 11. Stocks 31.12.2007 31.12.2006 Ra
Page 26 and 27: Commercial Paper On 8 July 2005, a
Page 28 and 29: Denomination of Loans The accountin
Page 30 and 31: 17. Provisions for risks and charge
Page 32 and 33: 21. Net financial charges 22. Incom
Page 34 and 35: 27.1 Transactions that took place i
Page 36 and 37: 27.4 Commitments and contingencies
Page 38 and 39: Foreign companies Company Name Head
Page 40 and 41: 41 2007 Consolidated and Individual
Page 42 and 43: EFACEC Capital, SGPS, S.A. Profit a
Page 44 and 45: Reserves Financial Instruments Merg
Page 46 and 47: A. General Information Notes to the
Page 48 and 49: 1.5 Investments Investments in grou
Page 50 and 51: 2.2 Accounting for financial instru
Page 52 and 53: 4. Investments in group and associa
Page 54 and 55: 6. Customers and Accrued Income 200
Page 58 and 59: Deferred tax booked in shareholders
Page 60 and 61: 17. Profit per share Basic The basi
Page 62 and 63: 21.4 Loans to related parties 2007
Page 64 and 65: To the Shareholders, Report and Opi
Page 66: ��
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Notes to the Financial Statements - Efacec

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