npm/cnp : a holding company, a professional shareholder
COMPAGNIE NATIONALE À PORTEFEUILLE/NATIONALE PORTEFEUILLEMAATSCHAPPIJ's long-term objective is to maximize shareholders' value. Its shareholders may assess the fulfilment of this goal by following the estimated value and the dividend per share. This fundamental aspect of NPM/CNP's corporate charter must be understood by its shareholders, be they controlling or minority, institutional or private.
As
regards its own investments or those which are controlled indirectly via PARGESA/GBL/PARFINANCE,
NPM/CNP does not limit itself to any particular sectors; nevertheless, NPM/CNP prefers to locate the following investments in its existing shareholdings : those which are close to the latter’s core businesses, start-up activities, businesses with high technology content and geographic diversifications far from home. If it perceives an opportunity, NPM/CNP may also take minority interests in European or world-wide sized companies which the firm believes has an interesting appreciation potential. The investments which NPM/CNP controls or which it is seeking must have reached a threshold of sufficient maturity or size such that they enjoy total autonomy in daily management. Although NPM/CNP is diversified in terms of sectors, its activity is focused on the five core skills which constitute its professional shareholder activity : - strategy to be adopted in managing risk and the related expected returns, - approval of investments and divestments, - definition and provision of long-term resources as well as dividend policy, - appointment and motivation of senior management, - development of contacts between companies of the Group, at their mutual benefits.
Through the above NPM/CNP seeks homogeneity between return on its investments and its own shareholders' expectations.
However, the efforts made in these various core skills vary in intensity depending on the percentage of interest, the size and the context - a crisis situation for example - of the investments ; these skills rely upon a strong reporting and a reciprocal information process, which is the basis for a profitable collaboration between NPM/CNP and its shareholdings.
The role of a shareholder is clearly not the same as that of a manager. The former sets return and risk objectives, while the second manages and works to attain them. The manager has considerable autonomy and flexibility in order to react quickly. Confidence does not exclude control, but the latter must not get in the way of action.
The representatives of NPM/CNP on the Boards of Directors play a role of support to the management and act, at the same time, as counterweights to this latter, applying well accepted corporate governance principles.
On 22 April 1997, THE BANKING AND FINANCIAL COMMISSION authorized the use of this document as a reference for any public investment offer which may be made by COMPAGNIE NATIONALE A PORTEFEUILLE/NATIONALE PORTEFEUILLEMAATSCHAPPIJ up to the date of publication of its next annual report, under the provisions of Title II of Royal Decree no. 185 of 9 July 1935, under the dissociated information procedure. Under this procedure, this annual report should be accompanied by an operations note in order for it to constitute a prospectus within the meaning of article 29 of Royal Decree no. 185 of 9 July 1935. This prospectus will be submitted for the approval of the BANKING AND FINANCIAL COMMISSION in accordance with article 29ter. §1, 1st sentence of Royal Decree no. 185 of 9 July 1935 and the provisions of the Royal Decree of 13 February 1996.
financial highlights equity and value
(1) The consolidation perimeter and the restricted consolidation perimeter are described page 68.
2
results
(1) The consolidation perimeter and the restricted consolidation perimeter are described page 68.
3
directors, executive management and auditors
Board of directors
John DILS, Chairman Gilles SAMYN, Managing Director Jean CLAMON Willy DE CLERCQ Victor DELLOYE Thierry DORMEUIL Jacques FOREST Baron FRÈRE Gérald FRÈRE Jean-Pierre GERARD Philippe HUSTACHE Marcel NICOLAÏ Thierry de RUDDER Baron SANTENS Giuseppe SANTINO Gustaaf VAN DEN BEMPT Philippe WILMES
Statutory auditors
KLYNVELD PEAT MARWICK GOERDELER, Reviseurs d’Entreprises S.C., represented by Georges M. TIMMERMAN DELOITTE & TOUCHE, Reviseurs d’Entreprises S.C., represented by Claude POURBAIX
Elections of directors
The terms of office of Messrs. John DILS and Willy DE CLERCQ, expire at the end of the Annual General Meeting to be held on 11 june 1997 ; the AGM will decide to renew their terms of office or appoint others.
Executive committee
Gilles SAMYN, Chairman
Audit Committee
Philippe HUSTACHE, Chairman
Jean CLAMON Laurent DASSAULT Victor DELLOYE John DILS Jacques FOREST Gérald FRÈRE Marcel NICOLAÏ Giuseppe SANTINO
John DILS Marcel NICOLAÏ
4
personnel and organization
Belgium
MANAGING DIRECTOR Gilles SAMYN SECRETARY AND LEGAL ADVISOR Victor DELLOYE Jean-Charles d’ASPREMONT LYNDEN (1) LONG-TERM INVESTMENTS Gilles SAMYN Roland BORRES Maximilien de LIMBURG STIRUM Eric TAELEMANS Philippe THIBAUT TREASURY, SHORT-TERM INVESTMENTS AND DERIVATIVES Michel LOIR Etienne COUGNON Jacques LAMBEAUX (1) Philippe THIBAUT ACCOUNTING AND ADMINISTRATION Fernand MIGEOT (1) Jean-Pierre CAPRON (1) Jean-Marie LABRASSINE (1) FINANCIAL CONTROL, CONSOLIDATION AND INFORMATION Roland BORRES Jacques LAMBEAUX (1) Maximilien de LIMBURG STIRUM
Luxembourg
Geneviève PISCAGLIA Valérie BARTHOL
Netherlands
Aart COOIMAN Pieter SCHWENCKE
Switzerland
Georges BETTERMANN Chirita DUMITRU Fabienne RUDAZ Gaël BALLERY
(1) Employed by CENTRE DE COORDINATION DE CHARLEROI
5
message to the shareholders un actionnaire professionnel
On 1 April 1997, COMPAGNIE NATIONALE À PORTEFEUILLE/NATIONALE PORTEFEUILLEMAATSCHAPPIJ moved its offices to Loverval, in the green outskirts of Charleroi. The Board of Directors has decided to transfer the registered office of NPM/CNP to this new location.
The first day of April marked nine years to the day that NPM/CNP joined the FRÈRE Group. We believe that this is a good time to remind you of the Group's general structure, its main operating rules and to report on the achievement of its value generation goals: THE GROUP'S OVERALL STRUCTURE • The structure of control • The place of PARGESA/GBL/PARFINANCE THE DISTRIBUTION OF INVESTMENTS • Direct interests • Interests held by the PARGESA/GBL/PARFINANCE Group •Investments by existing shareholdings OPERATING PRINCIPLES AND PROCEDURES • The Board of Directors • The Executive Committee • The Audit Committee • The Auditors • Personnel • Overhead • NPM/CNP’s role as shareholder GENERATING VALUE • Performance objectives and measurements • Creating value - As shareholder - Inside the shareholdings • The achievements - The Total Shareholders' Return - The discount - The dividend
6
MESSAGE TO THE SHAREHOLDERS
THE GROUP'S OVERALL STRUCTURE THE STRUCTURE OF CONTROL
NPM/CNP is the listed entity of the Group known as the "Charleroi Group". This Group, controlled by Mr. Albert FRÈRE, is composed of four sub-groups : FRÈRE-BOURGEOIS, ERBE, FIBELPAR and NPM/CNP, each of which has its own controlled financial subsidiaries. • FRÈRE-BOURGEOIS is the parent company FRÈRE-BOURGEOIS 54.5 %
whose capital is fully held by the FRÈRE family. • ERBE is the link between the family and the PARIBAS Group, its partner since several decades.
PARIBAS
ERBE 57.1 %
• ERBE holds the majority of the capital of
GÉNÉRALE AXA - UAP ROYALE BELGE ELECTRAFINA
FIBELPAR
holders: the Group of SOCIETE GENERALE DE
53.5 %
BELGIQUE, AXA/UAP, ROYALE BELGE and ELEC-
Market
NPM/CNP
FIBELPAR beside a few large institutional share-
TRAFINA. • NPM/CNP constitutes the partnership with the The percentages indicated above are the consolidation percentages in effect at 31.12.1996.
Market.
The Group exists thanks to its partners. Its base, its creative force and initiative is family- and patrimony-based.
The various levels of this chain of control held shareholdings before NPM/CNP was taken over. The goal was to gradually simplify the Group's organization by placing most of these interests under NPM/CNP. Besides its non-financial assets, FRÈRE-BOURGEOIS only kept its traditional interest in PARGESA, which it decided to manage in partnership with NPM/CNP in the AGESCA NEDERLAND Group; AGESCA’s structure reflects the distribution of holdings and voting power which prevailed at the outset at the PARGESA level between FRÈRE-BOURGEOIS and NPM/CNP. PARGESA is of course part of the alliance with the POWER Group. NPM/CNP currently holds nearly all (approximately 97 %, based on estimated values) of the investments of the "Charleroi Group"; interests still held directly by ERBE and FIBELPAR (the vineyards CHÂTEAU RIEUSSEC and L'EVANGILE, the wine distribution and bottling with PALAIS DU VIN / LE CLOS DU RENARD and the tax free shops BELGIAN SKY SHOPS) did not seem to present a good fit with the programme presented to NPM/CNP's Shareholders or are currently the subject of uncertainty as regards their valuation.
7
THE PLACE OF PARGESA/GBL/ PARFINANCE
FRÈRE-BOURGEOIS
NPM/CNP
In
addition
to
its
direct
holdings,
the NPM/CNP Group holds investments indi10.5 % Interest 51 % Vote
Joint Control
89.5 % Interest 49 % Vote
rectly through a chain of holdings controlled by PARJOINTCO : PARGESA/GBL/PARFI-
AGESCA NEDERLAND/N.F.A.
the Group combined under PARJOINTCO its
50 % POWER - 50 %
NANCE and their Group's companies. In 1990, shareholding in PARGESA with that of
PARJOINTCO
POWER CORPORATION DU CANADA, which is also a family-controlled company (controlled
55.0 % Interest 62.7 % Vote
by Paul DESMARAIS Sr. and members of his family).
This alliance concerns PARGESA,
its subsidiaries and its strategic interests, PARGESA/GBL/PARFINANCE and their financial subsidiaries
including its joint holdings with NPM/CNP (PETROFINA, ROYALE BELGE, DUPUIS, TRANSCOR and BERNHEIM-COMOFI) and
SHAREHOLDINGS
PARGESA/GBL/PARFINANCE
FIBELPAR (BELGIAN SKY SHOPS).
and their controlled financial subsidiaries are managed by
autonomous but close teams, which makes their members and members of the Charleroi Group colleagues in the full sense of the term.
Accordingly, the NPM/CNP Group may be analysed on two levels: •the direct approach, which highlights the assets held by the NPM/CNP sub-group, with PARGESA being considered as a single investment, • the transitive approach, which combines the assets held directly by NPM/CNP with those which are indirectly held through PARGESA and its controlled holding companies. This two-part approach is available to Shareholders on both the breakdown of estimated value (see page 21 to 27) and the Profit and Loss Statement (see pages 28 and 29).
THE DISTRIBUTION OF INVESTMENTS
The NPM/CNP Group invests : • directly at NPM/CNP's level or in an integrated financial subsidiary, • with or through PARGESA/GBL/PARFINANCE and their financial subsidiaries, • through its existing shareholdings.
DIRECT INTERESTS
Most of NPM/CNP's recent investments are of this type and considerable efforts are made to find new ones.
8
MESSAGE TO THE SHAREHOLDERS
INTERESTS HELD BY THE PARGESA/GBL/ PARFINANCE GROUP
Interests held jointly with this Group are a legacy of the past and are currently limited to those held with GBL.
Interests which are only held by the PARGESA/GBL/PARFINANCE Group are of course considered by NPM/CNP as creators of value, but the managers of the holding companies which hold it are responsible for monitoring them. NPM/CNP and the POWER Group jointly exercise their role as professional shareholders of PARGESA.
INVESTMENTS BY EXISTING SHAREHOLDINGS
Many acquisitions which are proposed to us as investments have a natural place in companies in which we already hold an interest, particularly in the case of the same sector or a sector which is close to that in which this company is active. The same applies to start-ups, high-technology investments or investments which are geographically too remote or for the monitoring of which NPM/CNP does not have sufficient resources or competence.
NPM/CNP is diversified in terms of sectors, but focuses its efforts : • geographically close to its bases, • functionally on its activity as professional shareholder. It expects the companies in which it has a shareholding to be concentrated in a given sector while showing broader territorial ambition.
OPERATING PRINCIPLES AND PROCEDURES
The Group is based on a family controlled shareholder, which is supported by financial partners, of which the market at the NPM/CNP level and at that of its major shareholdings. The only way for such a structure to last over time is by respecting Shareholders. The Group has therefore made this one of its fundamental beliefs, with the following corollaries: •transparency and availability of complete and high-quality financial information • appropriate operating procedures, described below.
THE BOARD OF DIRECTORS
The
Board of Directors settles the Company's long-term strategic, investment, divestment
and financing decisions. It provides the Shareholders with financial and accounting information and appoints members of the Executive and Audit Committees. Its composition is balanced ; at the date that this document was published, it was composed of two representatives of the controlling shareholder, eight representatives of other shareholders (direct and indirect), five independent directors and two managers.
9
THE EXECUTIVE COMMITTEE
The Executive Committee, headed by the Managing Director, analyses, prepares and proposes to the Board of Directors the Company's long-term strategic, investment, divestiture, and financing decisions. The Executive Committee is currently composed of a representative of the controlling shareholder, five representatives of other shareholders (direct and indirect), an independent director and two managers.
THE AUDIT COMMITTEE
This
Committee assists the Board of Directors with internal control, accounting decisions
and external information; it meets prior to each meeting of the Board of Directors, whose purpose is to take a decision on one of these areas. This Committee is currently composed of two directors representing non-controlling shareholders and an independent director.
THE AUDITORS
The auditors of NPM/CNP have three missions: • certify the annual accounts and consolidated accounts as set out in the law, •provide assistance in assessing certain accounting decisions, • validate any transaction conditions between sub-groups or affiliated companies. In this framework, DELOITTE & TOUCHE, one of the Company's statutory auditors, is common, upstream, with the FIBELPAR, ERBE and FRÈRE-BOURGEOIS groups, and, downstream, with, among others, the GBL Group. This facilitates the respect of the legislation on the conflicts of interest.
PERSONNEL
All the companies of the Charleroi Group are managed by the same team; each member of the team performs the same functions regardless of the sub-group in which he operates. The team is small and is composed of a dozen professionals, all of whom participate in the value creation process directly (monitoring and research of investments or cash management) or indirectly (support functions such as management control, accounting, law and taxation). This small team is stable. In order to avoid lethargy, it was decided to encourage osmosis between the team and the shareholdings. The Finance Director of one of the shareholdings became the Finance Director of CENTRE DE COORDINATION DE CHARLEROI and one of the members of the team became Director of Strategy and Finance at the SUZY Group. This is one of the results of our zero-base effort announced to you in the 1995 Annual Report.
10
MESSAGE TO THE SHAREHOLDERS
Pragmatism and simplicity led the Charleroi Group to distribute overhead among the various
OVERHEAD
sub-groups through: • a co-ordination centre for support activities, • a company which re-invoices its services, • a cost pooling association. The first two companies bill their services on the basis of actual services provided; expenses of the cost association are distributed on the basis of a key which currently allocates just over 60% of charges to the NPM/CNP sub-group (see page 108).
NPM/CNP’S ROLE AS SHAREHOLDER
NPM/CNP's representatives on the Boards of Directors of the companies in which a shareholding is held act as professional shareholders in order to enhance the value of these companies over the long-term. They work on behalf of the shareholders of these companies, and therefore on your behalf as well.
This
philosophy is simple, but there are occasional obstacles or problems. Our interest
in ARTEMIS exemplifies this. Despite all of the efforts by NPM/CNP's team and its representatives on the company's Board of Directors, they have not come to an agreement with the other members on a new strategy to be implemented or on an alternative plan, whose purpose was to better safeguard, in their view, investment value for all shareholders. As such, and no more so than others, they do not claim to be always right and rather than endanger the company as a result of ongoing disagreements, they did not solicit the renewal of their mandates as directors at the last Annual General Meeting. As shareholder, NPM/CNP will of course continue to be attentive to the value of its investment.
GENERATING VALUE
PERFORMANCE OBJECTIVES AND MEASUREMENTS
Periodically (once a week from end of May 1997), NPM/CNP publishes an estimated value which is calculated on the basis of conservative principles (see page 21). This value is based on objective criteria but is below the real value of the assets. For example, as was noticed at the time of the sale of SCI & ASSOCIÉS, published estimated value for this shareholding was 15% below the selling price.
In addition to the issue related to the publication of an estimated value per share, NPM/CNP's major concern is that of any shareholder: assessing the real value of its assets, particularly for acquisitions and sales. These latter valuations must be based on cash flow simulation models. These flows are discounted using the cost of capital, which includes a risk premium and a risk-free yield.
11
Market volatility modifies the instantaneous level of the cost of capital. However, NPM/CNP adopts a long-term perspective and enjoys a more stable value, by adding a premium, which reflects the investment's risk profile, to a risk-free rate that reflects its long-term interest rate forecasts on a long period. Its true value added is the result of a close monitoring and a sound knowledge of its investments which reduce uncertainty. As a result, its cost of capital is less volatile than the instant return expected by the market, which enables it to resist the temptation to overpay during periods of euphoria. Ex-ante, the cost of capital is the minimum internal rate of return required for an investment. Expost, the cost of capital is compared to the actual total return. This concept therefore constitutes the ultimate aggregate for prospective financial efforts and for the analysis of performance. We therefore decided to include in our annual report (see pages 22 to 25) the Total Shareholders’ Return (TSR) over a long period and over the year ended, both overall and for each of NPM/CNP's assets.
CREATING VALUE
As shareholder NPM/CNP is convinced - since it experiences this everyday - that an asset has several values, among others, based on who holds it and the latter's view of the asset's potential and prospects. NPM/CNP accepts that a shareholding may have a higher value for a third party, which may cause it to sell the asset to the latter. The managers of the companies in which NPM/CNP has an interest, themselves value managers, are aware of this. Estimating the value of NPM/CNP's assets is a continuous work, which makes it possible to take advantage of any selling opportunities, while knowing that the purchase is the first opportunity to make a profit. NPM/CNP uses two methods to benefit from market volatility: • by acquiring or selling securities at favourable terms in relation to what it believes to be the real value, • by issuing derivative products on interests held in a long-term perspective in order to reduce carrying costs.
Inside the shareholdings NPM/CNP's representatives on the Boards of the companies in which it holds an interest monitor the application of the same rigorous principles with regard to value management, mainly in terms of investments and divestments by these companies. As a result, shareholdings and shareholders are in perfect agreement. What is good for one is also good for the others.
THE ACHIEVEMENTS
The Total Shareholders' Return Given the diversified composition of NPM/CNP's portfolio and the blue-chip quality of its assets, the market represents a reasonable yardstick of comparison of Total Shareholders' Return. The objective of the management team is to beat the market over the long-term. NPM/CNP offers its Shareholders access to certain unlisted interests which offer more attractive returns and to the fruit of the management team's work, particularly in the determination of investment and divestment timing.
12
MESSAGE TO THE SHAREHOLDERS
The table below shows the return obtained by NPM/CNP on its investments over the long-term (from the date on which NPM/CNP became part of the FRERE Group in 1988 until 31 December 1996) and over the year just ended. value created by NPM/CNP since april 1988 TSR(1) %
mio BEF
ESTIMATED VALUE (beginning of period) TRANSFERTS FLOWS WITHAVEC THE LES SHAREHOLDERS ACTIONNAIRES
mio BEF
1996 financial year TSR(1) %
mio BEF
mio BEF
1 668
60 833
38 247
(2 552)
CAPITAL INCRASES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 . . . . 880 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . DIVIDENDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14 . . . . . 633) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(2 . . .552) . . . . . . . . . . . . . . . . . . . . . . . TOTAL VALUE CREATED
30 295
11 930
PARGESA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.4 . . . . . . . . . . . 13 . . . .436 . . . . . . . . . . . . . . . . . . . . . .25.5 . . . . . . . . . . . .4 . . 895 . . . . . . . . . . . . . . . . . . . . . . . SOCIÉTÉ GÉNÉRALE DE BELGIQUE . 10.0 . . . . . . . . . . . . .2. .052 . . . . . . . . . . . . . . . . . . . . . . . 5.9 . . . . . . . . . . . . . 247 . . . . . . . . . . .. . . . . . . . . . . . PETROFINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1.4 . . . . . . . . . .1 . . .842 . . . . . . . . . . . . . . . . . . . . . .15.2 . . . . . . . . . . . .2 . . 074 . . . . . . . . . . . . . . . . . . . . . . . ROYALE BELGE . . . . . . . . . . . . . . . . . . . . . . . . . . .6.9 . . . . . . . . . .1 . . .473 . . . . . . . . . . . . . . . . . . . . . .14.6 . . . . . . . . . . . . . . 370 . . . . . . . . . . . . . . . . . . . . . . . SCI & ASSOCIÉS (sold in 1996) . . . . . . . . 15.8 . . . . . . . . . . . . 1 . . .344 . . . . . . . . . . . . . . . . . . . . . .22.5 . . . . . . . . . . . . . . 962 . . . .. . . . . . . . . . . . . . . . . . . COMPAGNIE GÉNÉRALE DES EAUX . . .8.0 . . . . . . . . . . . . .948 . . . . . . . . . . . . . . . . . . . . . .36.8 . . . . . . . . . . . .1 . . 205 . . . . . . . . . . .. . . . . . . . . . . . ELF AQUITAINE . . . . . . . . . . . . . . . . . . . . . . . . 11.0 . . . . . . . . . . . . . . .923 . . . . . . . . . . . . . . . . . . . . . .37.8 . . . . . . . . . . . .1 . . 063 . . . . . . . . . . . . . . . . . . . . . . . TRANSCOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.5 . . . . . . . . . . . . . . .809 . . . . . . . . . . . . . . . . . . . . . .18.2 . . . . . . . . . . . . . . 109 . . . . . . . . . . . . . . . . . . . . . . . ELECTRAFINA (sold in 1994) . . . . . . . . . 13.0 . . . . . . . . . . . . . . .765 . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . GBL (sold in 1991) . . . . . . . . . . . . . . . . . . . . . . . .6.7 . . . . . . . . . . . . .703 . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . . . . COBEPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6.5 . . . . . . . . . . . . .669 . . . . . . . . . . . . . . . . . . . . . .13.5 . . . . . . . . . . . . . . 174 . . . . . . . . . . . . . . . . . . . . . . . BERNHEIM-COMOFI . . . . . . . . . . . . . . . . . . . . .7.2 . . . . . . . . . . . . .525 . . . . . . . . . . . . . . . . . . . . . . .(2.5) . . . . . . . . . . . . . .(29) . . . . . . . . . . . . . . . . . . . . . . ACP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 . . . . . . . . . . . . . . .463 . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . . . . HEMMA (sold in 1994) . . . . . . . . . . . . . . . . . 37.4 . . . . . . . . . . . . . . .219 . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . . . . AGM (sold in 1991) . . . . . . . . . . . . . . . . . . . . . 10.3 . . . . . . . . . . . . . . .192 . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . . . . EDITIONS DUPUIS . . . . . . . . . . . . . . . . . . . . . . 21.7 . . . . . . . . . . . . . . .126 . . . . . . . . . . . . . . . . . . . . . .10.5 . . . . . . . . . . . . . . . .37 . . . . . . . . . . . . . . . . . . . . . ESFH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.3 . . . . . . . . . . . . .103 . . . . . . . . . . . . . . . . . . . . . .40.5 . . . . . . . . . . . . . . 292 . . . . . . . . . . . . . . . . . . . . . . . EMG HOLDING (sold in 1990) . . . . . . . . . 36.8 . . . . . . . . . . . . . . . . 84 . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . . . . HÉLIO CHARLEROI . . . . . . . . . . . . . . . . . . . . . 26.4 . . . . . . . . . . . . . . . . 72 . . . . . . . . . . . . . . . . . . . . .24.6 . . . . . . . . . . . . . . . .33 . . . . . . . . . . . . . . . . . . . . . ARTEMIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(14.6) . . . . . . . . . . . . . . (371) . . . . . . . . . . . . . . . . . . . . . . (51.9) . . . . . . . . . . . . . . .(249) . . . . . . . . . . . . . . . . . . . . . . . OTHER SHAREHOLDINGS . . . . . . . . . . . . . . n.a. . . . . . . . . . . . . . .389 . . . . . . . . . . . . . . . . . . . . . . n.a. . . . . . . . . . . . . . . . .82 . . . . . . . . . . . . . . . . . . . . . TANGIBLE FIXED ASSETS . . . . . . . . . . . . . . n.a. . . . . . . . . . . . . . . . . .0. . . . . . . . . . . . . . . . . . . n.a. . . . . . . . . . . . . . . . . .0 . . . . . . . . . . . . . . . . . . . . LONG-TERM ASSETS
6.6
26 764
20.3
11 265
TREASURY (NET)
8.6
5 767
11.4
815
OTHER INCOME/(EXPENSES)
(2 236)
(2)
ESTIMATED VALUE (end of period) (3)
7.0
YEARLY RETURN (dividends reinvested)
8.6
(150) 70 211
19.6
70 211
20.0
(1) TSR: the Total Shareholders’ Return is a yearly cumulative internal rate of return. (2) Includes the costs of capital increases and public issues for BEF 719 million (3) The TSR of 7,0 % comes down to 6,9% when fully diluted; the TSR of 19,6% comes down to 18,7% when fully diluted.
As you can see, the Total Shareholders’ Return obtained on the long term is 7.0%. An index approach similar to that used to determine the Spot Return Index of the Brussels Stock Market (assuming that dividend flows are reinvested) yields a composed annual rate of internal value creation of 8.6%, compared to 9.0% for the Stock Exchange over the same period.
13
Given their cost of acquisition and the fact that their shares have underperformed the Stock Market, PETROFINA and ARTEMIS generated individual returns which weighed down the total on the long period; the other investments performed well. As we said above, the conservative method used to calculate estimated value affects the Total Shareholders' Return displayed in the table on page 13. By way of an example, despite results which were far better than those of 1995, the TSR on the interest in ACP was zero in 1996, which was the result of posting ACP at its cost of acquisition, which was over shareholders' equity, and the lack of a dividend payment. In this specific case, the creation of value on ACP will only be reflected if a dividend is paid, if shareholders' equity exceeds the acquisition cost or if a capital gain is realized on the disposal of this asset.
The discount Unfortunately, NPM/CNP's shareholders do not have direct access to this internal performance, as the stock price did not fully reflect this performance. NPM/CNP's discount rose during the period from 8% in April 1988 to 27% at the end of 1996. The many efforts made to resolve this problem have not been as successful as expected. The question of the discount was discussed in detail in the 1991 Annual Report, which explained, among other things, that a stable long-term shareholder could reasonably expect to sell out with a discount identical to that at the time that he became a shareholder, thereby resolving the delicate problem which he faces. NPM/CNP, agreeing with the concerns of the market and outside observers in terms of continuous information on the estimated value of its own shares this year decided to go one step further. As of the end of May 1997, the estimated value and discount of NPM/CNP shares will be made public on a weekly basis in the main Belgian financial press media and on NPM/CNP's Internet site (http://www.cnp.be). Aware of the true value of its shares, NPM/CNP took advantage of the high discount level in 1996 to purchase its own shares, believing it to be an investment opportunity. However, this acquisition should not be seen as an attempt to counter the market in order to reduce the discount, but rather, as taking advantage of an incorrect assessment by the market of the Company's share value, and, of course, is limited to the extent authorized by the Annual General Meeting.
14
MESSAGE TO THE SHAREHOLDERS
The dividend A significant portion of the value created by NPM/CNP is distributed to its Shareholders in the form of dividends. NPM/CNP's policy is to be a 'flow-through' between its Shareholders and its assets, and therefore to directly distribute to them the dividends collected from its subsidiaries, which means distributing over the long-term its restricted consolidated net result. The Company's dividend is high (5% based on the stock price at the end of 1996) and has risen 31% in adjusted data per share since 1988. This distribution objective must be understood by the managers of the companies in which NPM/CNP has a shareholding, as well as by our Shareholders. The former must include this constraint when managing their cash-flows. Our dividend offers the latter a low (or even zero or negative during periods of low interest rates) carrying cost, which enables them to be indifferent at times when the discount is high and to view their investment in NPM/CNP as a long-term, bluechip investment.
Gilles SAMYN,
John DILS,
Managing Director
Chairman of the Board of Directors
15
directors’ report
Dear Shareholders, ladies and gentlemen, We are pleased to present the Directors’ report on the activities of your Company and Group for the year and to submit the accounts at 31 December 1996 for your approval.
MAIN EVENTS IN 1996 AND DURING THE FIRST FEW MONTHS OF 1997 DIRECT INVESTMENTS
In 1996 the portfolio of investments directly held by NPM/CNP underwent the following modifications: • In the first half of the year, the NPM/CNP Group sold 53,000 ROYALE BELGE shares on the Stock Market, lowering its interest to 2.35% ; capital gains of BEF 91 million (restricted consolidation) and BEF 85 million (consolidation) were recorded on this sale. • At the beginning of the second half of the year, NPM/CNP sold its interest in SCI & ASSOCIÉS (and its BARRY subsidiary) to the CALLEBAUT A.G. Group and its interest in VITAL SOGEVIANDES to the SCI Group, earning a capital gain of BEF 1,051 million (restricted consolidation) and BEF 756 million (consolidation) on this transaction. • GROUPE JEAN DUPUIS, equally controlled by NPM/CNP and GBL, acquired 50% of the capital of HEXANE S.A., publisher of L'ÉVENTAIL magazine. • During the course of 1996, the NPM/CNP Group sold 1,784,000 shares of ESPIRITO SANTO FINANCIAL HOLDING, enabling it to reverse in 1996 a BEF 259 million write-down booked the previous year; the Group still holds 263,000 shares in ESPIRITO SANTO FINANCIAL HOLDING. • In addition, call options issued on 150,000 shares of COMPAGNIE FINANCIÈRE DE PARIBAS were exercised in January 1997. This investment was reclassified to short-term investments at 31 December 1996; a BEF 65 million reversal of write-down was made based on the actual sale price and appears under capital result for 1996. • The Board of Directors also felt appropriate -given the evolution of ARTEMIS' situation and the decision of the representatives of Groupe NPM/CNP on this company's Board of Directors not to request the renewal of their mandates- to value this interest at its the stock market value, rather than at shareholders' equity ; the result was a BEF 249 million write-off in 1996. • At the beginning of 1997 the Company acquired 100% of the capital of the SUZY Group, which includes three companies which are mainly active in the Benelux countries in the waffle and biscuit sector.
16
DIRECTORS’ REPORT
PARJOINTCO ACTIVITIES
PARJOINTCO
N.V. was established in 1990 as a joint venture between FRÈRE-
BOURGEOIS/NPM-CNP groups and POWER CORPORATION OF CANADA on the basis of equal ownership and management. The PARGESA/GBL/PARFINANCE sub-group is controlled by PARJOINTCO. In September 1996, the agreements between the two groups were extended until 2014. As of 31 December 1996, PARJOINTCO held some 55.5% of PARGESA (of which 55.0% consolidated, representing 62.7% of the undiluted voting rights). In 1996, PARJOINTCO paid a dividend of NLG 87 million, approximately the dividend received from PARGESA.
PARGESA/GBL/ PARFINANCE GROUP
In 1996, PARFINANCE continued to divest its non-strategic interests, responding favourably to the Public Offer of Exchange / Public Offer of Purchase launched by CROWN CORK AND SEAL on CARNAUDMETALBOX at FRF 225 per share. PARFINANCE realized a capital gain of FRF 170 million on this transaction. Following this transaction, PARFINANCE's treasury totalled roughly FRF 2.5 billion; it used most of this amount in a Public Offer to Purchase 11 million of its own shares at FRF 215 per share. Following the cancellation of these shares, PARGESA's and GBL's interests in PARFINANCE were 48.6% and 40.5% respectively.
The audio-visual sector saw some major changes. In April 1996, ELECTRAFINA acquired from PARIBAS and UAP about 17% of AUDIOFINA's capital and acquired 35% of CLMM's capital from GBL. CLMM is the controlling stockholder in AUDIOFINA. These acquisitions were financed by a capital increase by ELECTRAFINA in the form of three new shares and a 1996-1999 4.5% Bond Redeemable in Shares, each for BEF 3,000, for 12 existing shares. The agreement entered into in April 1996 with BERTELSMANN materialized at the beginning of 1997 by the latter's contribution of its UFA subsidiary to COMPAGNIE LUXEMBOURGEOISE DE TÉLÉDIFFUSION; CLT-UFA HOLDING is now jointly controlled by BERTELSMANN and AUDIOFINA. The latter received DEM 1,556 million (roughly BEF 32 billion) from this transaction.
In
September 1996, ELECTRAFINA sold its entire interest in TRACTEBEL to SOCIÉTÉ
GÉNÉRALE DE BELGIQUE for BEF 14,500 per share, thereby realizing a capital gain of some BEF 19 billion; NPM/CNP's transitive share in the latter, which is over BEF 1 billion, is posted to consolidated capital result. ROYALE BELGE also sold its interest in TRACTEBEL, thereby realizing a capital gain of BEF 4 billion.
During the last quarter of 1996, ELECTRAFINA acquired 10 million shares (approximately 6% of the capital) of COMPAGNIE DE SUEZ. On 18 April 1997, this interest was just over 11%.
17
MAJOR DEVELOPMENTS AT SHAREHOLDINGS’ LEVEL
Of course, NPM/CNP supports the investments made by the companies in which it holds an interest and plays an active role in their development: • PETROFINA invested some BEF 33.7 billion in 1996, principally in the exploration and production sector, with, among others, the continuation of the new developments at EKOFISK in Norway. Major investments were also dedicated to the modernizing and the extension of the FINA gas stations and shops network and the development of new production lines and new product ranges in petrochemicals; • During 1996, IMETAL continued its internal and external growth policy by investing over FRF 1 billion, almost 10% of its market capitalisation: acquisition of the European refractory manufacturer PLIBRICO and of the refractory firing-tiles producer LOMBA and the opening of four new terracotta factories. IMETAL also took control of STRATMIN GRAPHITE, the first Canadian producer of natural graphite; • The investments of ROYALE BELGE include the increase from 80% to 100% of its shareholding in UAB, a subsidiary selling insurance products through a network of exclusive intermediaries, and the taking of 50% of the capital of the insurance companies created in partnership with LA POSTE; • At CLT, the investments are reflected in the accounts in the form of start-up losses on the new projects for LUF 2,880 million. As far as divestments are concerned, the cost of LUF 4,127 million linked to the termination of its own project of digital pay-TV CLUB RTL was more than covered by the LUF 6.7 billion capital gain on the the sale to England's EMAP of all of the capital of the companies which publish TELE STAR and TOP SANTE for FRF 1.4 billion; • BBL carried on with its foreign expansion by taking a 5% share in the VYSYA BANK (India), acquiring an 11% stake in AMERBANK (Poland) and taking a majority shareholding in the French stockbroker FERRI; • BERNHEIM-COMOFI took a 50% interest in INTERNATIONAL STORAGE MANAGEMENT in order to acquire a new business: the renting of small individual storage spaces to individuals and companies; • ORIOR made numerous acquisitions, of which that of the Swiss agri-food group RIEDER and 71.4% of the watch components manufacturer STERN. ORIOR also increased its stake in RAPELLI from 80% to 100% and that in FREDAG to 68% from 56.4% ; • The TRANSCOR Group created TRANSCOR GmbH in order to develop its coal trading business in Germany and in the countries of Eastern Europe and opened an office in Pittsburgh (USA) with the purpose of growing its business in the United States and supplying the Group with raw materials; • In Tertre (Belgium), ACP is currently making an investment which will provide it with a second source of CO2. • EDITIONS DUPUIS acquired the 50 % interest in MEDIATOON which was held by its partner ASTRAL. DUPUIS consequently now holds 100% of MEDIATOON and intends to use it to develop audio-visual productions based on both its own characters and those of others.
18
DIRECTORS’ REPORT
TREASURY MANAGEMENT
On
31 December 1996, net available short-term funds directly held by NPM/CNP
(that is NPM/CNP, its Swiss financial branch and its restricted consolidated financial subsidiaries) was BEF 12 billion (Group share - estimated value) before distribution of the dividend (compared to BEF 4.8 billion twelve months earlier and an average of BEF 7 billion throughout 1996). In 1996 the NPM/CNP Group made profits on short-term investments - net of losses and write-downs of BEF 314 million (compared to BEF 423 million in 1995). In accounting terms, total treasury income including the items described above, net interest and other interest charges and income totalled BEF 573 million - the Group's share being BEF 600 million in the restricted consolidated accounts, representing 8.1% of the year's average treasury. In business terms taking into account the evolution of unrealized gains, the Company earned a return on treasury of 11.4% during the year.
USE OF DERIVATIVES
The Board of Directors of NPM/CNP has authorized the use of derivatives within strict limits, in order to increase the profitability of the portfolio. This has provided the Company with an opportunity to issue two type of options in order to generate related income: • covered call options which are only written in respect of securities held by the Company at an exercise price that will produce a profit, • put options on strategic securities which the Company intends to acquire. In 1996, premiums received, net of their purchase, totalled BEF 31 million and no options were exercised; one single transaction - described in the Notes to the Consolidated Accounts - was still pending at 31 December 1996. The latter was exercised at the beginning of 1997, allowing NPM/CNP to reverse a BEF 65 million write-down.
19
CONSTRUCTION OF A NEW HEADQUARTERS BUILDING
NPM/CNP’s offices were transferred in April 1997 to a new building built by its subsidiary COMPAGNIE IMMOBILIÈRE DE ROUMONT. This company granted 50 year leases to the various firms occupying the building (FRÈRE-BOURGEOIS, among others) so as to ensure an equitable contribution on the part of each to the building’s expenses. The financial contribution of FRÈRE-BOURGEOIS was the subject of special reports in pursuance of articles 60 and 60 bis of the Co-ordinated Laws on Commercial Companies, described at page 20 of the 1995 Annual Report.
The construction costs of the new premises are allocated to the various occupying companies on the basis of surface areas used. The total cost is approximately BEF 385 million, including the land, the lay-out of the surroundings, the construction of the building and its interior fixtures, architects’ and engineering fees, and VAT. Of this amount, FRÈRE-BOURGEOIS bears some BEF 62 million and is charged with an additional BEF 24 million in connection with finishings carried out at its request. Besides FRÈRE-BOURGEOIS, the other companies making use of the premises are COMPAGNIE NATIONALE À PORTEFEUILLE, CENTRE DE COORDINATION DE CHARLEROI and COMPAGNIE IMMOBILIÈRE DE ROUMONT. Taking into account items expensed to date and provisions made by NPM/CNP in 1996 as well as the cost allocation methods described on page 11, the share of the NPM/CNP Group in the net book value of the premises represents approximately 0.2% of the estimated value of the Company.
OWN SHARES
During the year, the NPM/CNP Group used the facility granted by the Annual General Meeting, held on 12 June 1996, to purchase its own shares; it purchased 479,869 shares (1.89% of the capital) during the year for BEF 872 million. At 31 December 1996, these shares were still held by the Company and appear in the consolidated assets under the heading "short-term investments - own shares" (see page 75).
20
DIRECTORS’ REPORT
ESTIMATED VALUE
Your Company's estimated value was BEF 70,211 million (BEF 2,740 per share, fully diluted) at the end of 1996, after payment in June 1996 of gross dividends of BEF 2,552 million (BEF 100 per common share), compared to BEF 60,833 million (BEF 2,393 per share) one year earlier. At 30 April 1997, estimated value was approximately BEF 3,150 per share.
METHOD USED TO CALCULATE THE ESTIMATED VALUE
In determining the estimated value, NPM/CNP attempted to be prudent and objective. The following criteria were used depending on the various types of assets:
Types of assets
Valuation criteria
Financial investments • Holding companies controlled alone or jointly • Other listed companies • Other unlisted companies
Estimated value based on the same criteria as those applied by NPM/CNP and described hereafter. Stock market price. Book value (1) or share of shareholders' equity (2), whichever is higher.
Tangible fixed assets
Book value (1).
Monetary assets and liabilities • Own shares • Other listed assets • Deposits, liquid assets and debts
Stock market price. Stock market price. Book value (1).
(1) Acquisition price less any amortization or write-downs. (2) CLT's value is nevertheless inferred from AUDIOFINA's market price.
As a conservative measure, the potential diluting effects related to the exercising of existing warrants is taken into account as soon as these are "in the money" compared to the estimated value.
WEEKLY NOTIFICATION OF ESTIMATED VALUE
In order to improve transparency, NPM/CNP will publish its estimated value on a weekly basis beginning on 31 May 1997 in Belgium's two leading financial newspapers (L'ÉCHO and DE FINANCIEEL ECONOMISCHE TIJD); this information will also be available on the Company's Internet site (http://www.cnp.be). This weekly estimated value will be determined based on the same criteria used to determine the estimated value published in the Annual Reports. However, certain simplifying assumptions will be made: modifications made to the portfolio and to results which have accumulated since the last publication of accounts may not be taken into account if the combination of these factors has an effect of less than 1% on the estimated value.
21
VALUE CREATION AND TOTAL SHAREHOLDERS’ RETURN IN 1996 estimated value 31/12/95 Assets
criteria (1)
variation
breakdown mio BEF % (2)
shareholders value mio BEF mio BEF (3)
31/12/96 interest mio BEF
criteria
(5)
(1)
(4)
breakdown mio BEF % (6)
PARGESA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ev . . . . . . . . . . . . . .19 . . . 186 . . . . . . . . . . .31.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 . . .187 . . . . . . . . . . . . . . . . . -. . . . . . . . . . ev . . . . . . . . . . . . . .23 . . . 373 . . . . . . . . . . .33.3 . . . . . . . . . . PETROFINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . .13 . . . 615 . . . . . . . . . . .22.4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 . . .546 . . . . . . . . . . . . . . . . . -. . . . . . . . . .sm . . . . . . . . . . . . . .15 . . . 161 . . . . . . . . . . .21.6 . . . . . . . . . . COMPAGNIE GÉNÉRALE DES EAUX . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .3 . . 277 . . . . . . . . . . . . 5.4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1. .108 . . . . . . . . . . . . . . . . .. . . . . . . . . .sm . . . . . . . . . . . . . . .4 . . 384 . . . . . . . . . . . . 6.2 . . . . . . . . . SOCIÉTÉ GÉNÉRALE DE BELGIQUE . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .4 . . 155 . . . . . . . . . . . . 6.8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 . . . . . . . . . . . . . . . .. . . . . . . . . .sm . . . . . . . . . . . . . . .4 . . 206 . . . . . . . . . . . . 6.0 . . . . . . . . . ELF AQUITAINE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .2 . . 811 . . . . . . . . . . . . 4.6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .933 . . . . . . . . . . . . . . . . . -. . . . . . . . . .sm . . . . . . . . . . . . . . .3 . . 744 . . . . . . . . . . . . 5.3 . . . . . . . . . ROYALE BELGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .2 . . 531 . . . . . . . . . . . . 4.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181 . . . . . . . . . . . . . (247) . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .2 . . 465 . . . . . . . . . . . . 3.5 . . . . . . . . . COBEPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .1 . . 294 . . . . . . . . . . . . 2.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112 . . . . . . . . . . . . . . . . . -. . . . . . . . . .sm . . . . . . . . . . . . . . .1 . . 406 . . . . . . . . . . . . 2.0 . . . . . . . . . BERNHEIM-COMOFI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .1 . . 176 . . . . . . . . . . . . 1.9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(93) . . . . . . . . . . . . . . . . -. . . . . . . . . .sm . . . . . . . . . . . . . . .1 . . 083 . . . . . . . . . . . . 1.5 . . . . . . . . . TRANSCOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . se . . . . . . . . . . . . . . . . . 596 . . . . . . . . . . . . 1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 . . . . . . . . . . . . . . . . -. . . . . . . . . . se . . . . . . . . . . . . . . . . . 681 . . . . . . . . . . . . 1.0 . . . . . . . . . ACP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . bv . . . . . . . . . . . . . . . . . 576 . . . . . . . . . . . . 0.9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . 3 . . . . . . . . . . bv . . . . . . . . . . . . . . . . . 580 . . . . . . . . . . . . 0.8 . . . . . . . . . EDITIONS DUPUIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . se . . . . . . . . . . . . . . . . . 356 . . . . . . . . . . . . 0.6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 . . . . . . . . . . . . . . . . -. . . . . . . . . . se . . . . . . . . . . . . . . . . . 381 . . . . . . . . . . . . 0.5 . . . . . . . . . ARTEMIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . se . . . . . . . . . . . . . . . . . 480 . . . . . . . . . . . . 0.8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (249) . . . . . . . . . . . . . . . . . .3. . . . . . . . . .sm . . . . . . . . . . . . . . . . . 234 . . . . . . . . . . . . 0.3 . . . . . . . . . HÉLIO CHARLEROI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . se . . . . . . . . . . . . . . . . . 132 . . . . . . . . . . . . 0.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 . . . . . . . . . . . . . . . . -. . . . . . . . . . se . . . . . . . . . . . . . . . . . 157 . . . . . . . . . . . . 0.2 . . . . . . . . . ESFH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . . . . 719 . . . . . . . . . . . . 1.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259 . . . . . . . . . . . . . (869) . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . . . . 110 . . . . . . . . . . . . 0.2 . . . . . . . . . SCI & ASSOCIÉS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . se . . . . . . . . . . . . . . .4 . . 278 . . . . . . . . . . . . 7.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (273) . . . . . . . . . . . .(4 . . .005) . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . -. . . . . . PARIBAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . . . . 244 . . . . . . . . . . . . 0.4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 . . . . . . . . . . . . (310) . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . -. . . . . . OTHER SHAREHOLDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . bv . . . . . . . . . . . . . . . . . 114 . . . . . . . . . . . . 0.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2. . . . . . . . . . . . . .9 . . . . . . . . . .bv . . . . . . . . . . . . . . . . . 125 . . . . . . . . . . . . 0.2 . . . . . . . . . TANGIBLE FIXED ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . bv . . . . . . . . . . . . . . . . . . .77 . . . . . . . . . . 0.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . 144 . . . . . . . . . . . . .bv . . . . . . . . . . . . . . . . . 221 . . . . . . . . . . . . 0.3 . . . . . . . . . LONG TERM ASSETS
55 618
91.4
7 963
(5 272)
58 309
83.0
DEPOSITS, CASH AND DEBT . . . . . . . . . . . . . . . . . . . . . . . bv . . . . . . . . . . . . . . .1 . . 797 . . . . . . . . . . . . 3.0 . . . . . . . . . . . . . . (2 . . . 552) . . . . . . . . . . .3 . . .751 . . . . . . . . . . . .4. . 257 . . . . . . . . . . . . .bv . . . . . . . . . . . . . . .7 . . 253 . . . . . . . . . . .10.3 . . . . . . . . . . OWN SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . 0.0 . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . 88 . . . . . . . . . . . . .872 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . . . . 960 . . . . . . . . . . . . 1.4 . . . . . . . . . SHARES AND BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .3 . . 418 . . . . . . . . . . . . 5.6 . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . .128 . . . . . . . . . . . . . .143 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .3 . . 689 . . . . . . . . . . . . 5.3 . . . . . . . . . TREASURY (NET)
ESTIMATED VALUE (NON DILUTED)
5 215
8.6
(2 552)
3 967
5 272
11 902
17.0
60 833
100.0
(2 552)
11 930
-
70 211
100.0
WARRANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . 887 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 . . 887 . . . . . . . . . . . . . . . . . . . . . ESTIMATED VALUE (FULLY DILUTED)
ESTIMATED VALUE (BEF/share)
64 720
(2 552)
11 930
2 393
-
74 098
2 740
(1) valuation criteria a) ev : estimated value b) sm : stock market price c) se : shareholders' equity d) bv : book value (2) estimated value at 31.12.1995 (3) capital increases (BEF 0 in 1996) less dividends (BEF 2 552 in 1996) (4) value creation without effect on the profit & loss account (5) internal allocation of funds: investments and divestments at book value (6) estimated value at 31.12.1996 = (2) + (3) + (4) + (5) (7) value creation with effect on the profit & loss account: dividends, interests and profit and losses on short-term investments (8) value creation with effect on the profit & loss account: capital gains and losses (9) result without effect on the estimated value: write-downs and reversals of write-downs (10) total result (Group) = (7) + (8) + (9) (11) total value created: (4) + (7) + (8) (12) Total Shareholders' Return over the period: (11)/(1)-1
22
DIRECTORS’ REPORT
restricted consolidated result (group) in mio bef with effect on value
without effect
operating
capital
capital
(7)
(8)
(9)
assets (10)
708 708 528 528 . . . . . . . . . 97 . . . . . . . . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . .97 . .. . . . . . . . . . . . . 196 . . . . . . . . . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . 196 . . . .. . . . . . . . . . . . . 130 . . . . . . . . . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . 130 . . . .. . . . . . . . . . . . . . 98 . . . . . . . . . . . . . . . . . .92 . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . 189 . . . .. . . . . . . . . . . . . . 62 . . . . . . . . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . .62 . .. . . . . . . . . . . . . . 64 . . . . . . . . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . .64 . .. . . . . . . . . . . . . . 24 . . . . . . . . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . .24 . .. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . 12 . . . . . . . . . . . . . . . . . . . .- . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . .12 . .. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . (249) . . . . . . . . . . . . . . . . . (249) . . . . .. . . . . . . . . . . . . . . .8 . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . 8 .. . . . . . . . . . . . . . 32 . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . 259 . . . . . . . . . . . . . . . . . .292 . . .. . . . . . . . . . . . . 184 . . . . . . . . . . . . . . .1 . . 051 . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . 1 . . .235 . . .. . . . . . . . . . . . . . 15 . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . .65 . . . . . . . . . . . . . . . . .80 . .. . . . . . . . . . . . . . . .1 . . . . . . . . . . . . . . . . (1) . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .
1 142
tsr
total
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .
2 159
total value created
75
3 376
PARGESA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PETROFINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COMPAGNIE GÉNÉRALE DES EAUX . . . . . . . . . . . . . . . . . . . . . . . SOCIÉTÉ GÉNÉRALE DE BELGIQUE . . . . . . . . . . . . . . . . . . . . . . . ELF AQUITAINE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ROYALE BELGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COBEPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BERNHEIM-COMOFI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TRANSCOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ACP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EDITIONS DUPUIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ARTEMIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HÉLIO CHARLEROI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ESFH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SCI & ASSOCIÉS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PARIBAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OTHER SHAREHOLDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TANGIBLE FIXED ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LONG TERM ASSETS
mio BEF
%
(11)
(12)
4 895 25.5 2 074 15.2 . . . . . . . . . . .1 . . 205 . . . . . . . . . . . .36.8 . . . . . . . . . . . . . . . . . . . . 247 . . . . . . . . . . . . . 5.9 . . . . . . . . . . . . . . . . .1 . . 063 . . . . . . . . . . . .37.8 . . . . . . . . . . . . . . . . . . . . 370 . . . . . . . . . . . .14.6 . . . . . . . . . . . . . . . . . . . . 174 . . . . . . . . . . . .13.5 . . . . . . . . . . . . . . . . . . . . . (29) . . . . . . . . . . . .(2.5) . . . . . . . . . . . . . . . . . . . 109 . . . . . . . . . . . .18.2 . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . -. . . . . . . . . . . . . . . . . .37 . . . . . . . . . .10.5 . . . . . . . . . . . . . . . . . . . .(249) . . . . . . . . . . . (51.9) . . . . . . . . . . . . . . . . . . . . . . .33 . . . . . . . . . .24.6 . . . . . . . . . . . . . . . . . . . . 292 . . . . . . . . . . . .40.5 . . . . . . . . . . . . . . . . . . . . 962 . . . . . . . . . . . .22.5 . . . . . . . . . . . . . . . . . . . . . .80 . . . . . . . . . .32.6 . . . . . . . . . . . . . . . . . . . . . . .2 . . . . . . . . . . 2.5 . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11 265
286 286 DEPOSITS, CASH AND DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OWN SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . .314 . . . . . . . . SHARES AND BONDS
20.3
286 88 . . . . . . . . . . . . . .441 . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
600
-
-
600
TREASURY (NET)
(142)
(8)
-
(150)
OTHER REVENUES/(COSTS)
75
3 826
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .
3 751
815 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RESTRICTED CONSOLIDATED RESULT
11.4
(150)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11 930
19.6
18.7
18.7
OPINION OF THE STATUTORY AUDITORS ON THE ESTIMATED VALUE To the Shareholders of COMPAGNIE NATIONALE À PORTEFEUILLE / NATIONALE PORTEFEUILLEMAATSCHAPPIJ, We have examined the calculation of the estimated value per share of NPM/CNP as of 31 December 1996. This calculation was made by NPM/CNP based on its shareholders' equity, that of the holding companies controlled alone or jointly, and the assets held in their respective portofolios, the latter being valued according to the criteria described hereby. In conclusion, we confirm that the use of these criteria produces a value of BEF 2,740 per NPM/CNP share cum dividend at 31 December 1996. 18 April 1997 Statutory Auditors KPMG Reviseurs d'Entreprises S.C. Represented by Georges M. Timmerman
DELOITTE & TOUCHE Reviseurs d'Entreprises S.C. Represented by Claude Pourbaix
23
VALUE CREATION AND TOTAL SHAREHOLDERS’ RETURN FROM 1988 TO 1996 estimated value 1/4/88 Assets
criteria (1)
variation
breakdown mio BEF % (2)
shareholders value mio BEF mio BEF (3)
31/12/96 interest mio BEF
criteria
(5)
(1)
(4)
breakdown mio BEF % (6)
PARGESA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . 9. . .295 . . . . . . . . . . 14 . . . .078 . . . . . . . . . . . . . ev . . . . . . . . . . . . . .23 . . . 373 . . . . . . . . . . .33.3 . . . . . . . . . . PETROFINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . . . . 534 . . . . . . . . . . .32.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(3 . . .355) . . . . . . . . . . 17 . . . .982 . . . . . . . . . . . . .sm . . . . . . . . . . . . . .15 . . . 161 . . . . . . . . . . .21.6 . . . . . . . . . . COMPAGNIE GÉNÉRALE DES EAUX . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . .754 . . . . . . . . . . . .3. . 630 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .4 . . 384 . . . . . . . . . . . . 6.2 . . . . . . . . . SOCIÉTÉ GÉNÉRALE DE BELGIQUE . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . .828 . . . . . . . . . . . .3. . 378 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .4 . . 206 . . . . . . . . . . . . 6.0 . . . . . . . . . ELF AQUITAINE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . .541 . . . . . . . . . . . .3. .203 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .3 . . 744 . . . . . . . . . . . . 5.3 . . . . . . . . . ROYALE BELGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . .723 . . . . . . . . . . . .1. .742 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .2 . . 465 . . . . . . . . . . . . 3.5 . . . . . . . . . COBEPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . .267 . . . . . . . . . . . .1. .138 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .1 . . 406 . . . . . . . . . . . . 2.0 . . . . . . . . . BERNHEIM-COMOFI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . .162 . . . . . . . . . . . . . .921 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .1 . . 083 . . . . . . . . . . . . 1.5 . . . . . . . . . TRANSCOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . .355 . . . . . . . . . . . . . .326 . . . . . . . . . . . . . se . . . . . . . . . . . . . . . . . 681 . . . . . . . . . . . . 1.0 . . . . . . . . . ACP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . .580 . . . . . . . . . . . . . bv . . . . . . . . . . . . . . . . . 580 . . . . . . . . . . . . 0.8 . . . . . . . . . EDITIONS DUPUIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 . . . . . . . . . . . . .301 . . . . . . . . . . . . . se . . . . . . . . . . . . . . . . . 381 . . . . . . . . . . . . 0.5 . . . . . . . . . ARTEMIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . (438) . . . . . . . . . . . . . . .672 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . . . . 234 . . . . . . . . . . . . 0.3 . . . . . . . . . HÉLIO CHARLEROI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 . . . . . . . . . . . . .100 . . . . . . . . . . . . . se . . . . . . . . . . . . . . . . . 157 . . . . . . . . . . . . 0.2 . . . . . . . . . ESFH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . . .(49) . . . . . . . . . . . . .159 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . . . . 110 . . . . . . . . . . . . 0.2 . . . . . . . . . SCI & ASSOCIÉS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . -. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . ELECTRAFINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . -. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . GBL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . (877) . . . . . . . . . . . . . . . .877 . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . HEMMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . -. . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . AGM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ev . . . . . . . . . . . . . . . . . 564 . . . . . . . . . . .33.8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (528) . . . . . . . . . . . . . . . .(36) . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . EMG HOLDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . -. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . OTHER SHAREHOLDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . bv . . . . . . . . . . . . . . . . . 388 . . . . . . . . . . .23.3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (476) . . . . . . . . . . . . . . .213 . . . . . . . . . . . . .bv . . . . . . . . . . . . . . . . . 125 . . . . . . . . . . . . 0.2 . . . . . . . . . TANGIBLE FIXED ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1. . . . . . . . . . .220 . . . . . . . . . . . . .bv . . . . . . . . . . . . . . . . . 221 . . . . . . . . . . . . 0.3 . . . . . . . . . LONG TERM ASSETS
1 486
89.1
7 341
49 482
58 309
83.0
DEPOSITS, CASH AND DEBT . . . . . . . . . . . . . . . . . . . . . . . bv . . . . . . . . . . . . . . . . . 182 . . . . . . . . . . .10.9 . . . . . . . . . . . . . . .38 . . . .247 . . . . . . . . . 22 . . . . 606 . . . . . . . . . .(53 . . . . 782) . . . . . . . . . . . . .bv . . . . . . . . . . . . . . .7 . . 253 . . . . . . . . . . .10.3 . . . . . . . . . . OWN SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . -. . . . . . . . . . . 88 . . . . . . . . . . . . .872 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . . . . 960 . . . . . . . . . . . . 1.4 . . . . . . . . . SHARES AND BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .sm . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . .-. . . . . . . . . . . . . . . . . . -. . . . . . . . . .261 . . . . . . . . . . . .3. .428 . . . . . . . . . . . . .sm . . . . . . . . . . . . . . .3 . . 689 . . . . . . . . . . . . 5.3 . . . . . . . . . TREASURY (NET)
ESTIMATED VALUE (NON DILUTED)
182
10.9
38 247
22 954
1 668
100.0
38 247
30 295
(49 482)
11 902
17.0
70 211
100.0
WARRANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . 887 . . . . . . . . . . . . . . . . . . . . . ESTIMATED VALUE (NON DILUTED)
1 668
ESTIMATED VALUE (BEF/share)
2 171
38 247
30 295
-
74 098
2 740
(1) valuation criteria a) ev : estimated value b) sm : stock market price c) se : shareholders' equity d) bv : book value (2) estimated value at 1.4.1988 (3) flows with the shareholders: capital increases (BEF 58.880 million) less dividends (BEF 14.633 million) (4) value creation without effect on the profit & loss account (5) internal allocation of funds: investments and divestments at book value (6) estimated value at 31.12.1996 = (2) + (3) + (4) + (5) (7) value creation with effect on the profit & loss account: dividends, interests and profit and losses on short-term investments (8) value creation with effect on the profit & loss account: capital gains and losses (9) result without effect on the estimated value: write-downs and reversals of write-downs (10) total result (Group) = (7) + (8) + (9) (11) total value created: (4) + (7) + (8) (12) Total Shareholders' Return over the period
24
DIRECTORS’ REPORT
restricted consolidated result (group) in mio bef with effect on value
without effect
operating
capital
capital
(7)
(8)
(9)
assets
2 912 2 506
(10)
mio BEF
%
(11)
(12)
PARGESA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PETROFINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COMPAGNIE GÉNÉRALE DES EAUX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SOCIÉTÉ GÉNÉRALE DE BELGIQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ELF AQUITAINE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ROYALE BELGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COBEPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BERNHEIM-COMOFI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TRANSCOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ACP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ÉDITIONS DUPUIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ARTEMIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HÉLIO CHARLEROI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ESFH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SCI & ASSOCIÉS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ELECTRAFINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GBL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HEMMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AGM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EMG HOLDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OTHER SHAREHOLDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TANGIBLE FIXED ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13 436 1 . . . . . . . . . .11.4 .... 1 842. . . . . . . . . . . .1.4 .. 948. . . . . . . . . . . .8.0 .. 2 052. . . . . . . . . .10.0 .... 923. . . . . . . . . .11.0 .... 1 473. . . . . . . . . . . .6.9 .. 669. . . . . . . . . . . .6.5 .. 525. . . . . . . . . . . .7.2 .. 809. . . . . . . . . .23.5 .... 463. . . . . . . . . .11.1 .... 126. . . . . . . . . .21.7 .... (371) . . . . . . . . . (14.6) ..... 72. . . . . . . . . .26.4 .... 103. . . . . . . . . . . .2.3 .. 1 344. . . . . . . . . .15.8 .... 765. . . . . . . . . .13.0 .... 703. . . . . . . . . . . .6.7 .. 219. . . . . . . . . .37.4 .... 192. . . . . . . . . .10.3 .... 84. . . . . . . . . .36.8 .... 389. . . . . . . . . n.v.t ..... .-. . . . . . . . n.v.t .....
................................................................
LONG TERM ASSETS
26 764
2 912 . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . 2 . . . 506 ...........
DEPOSITS, CASH AND DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OWN SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SHARES AND BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 912. . . . . . . . . . . . . . 88. . . . . . . . . . . . . . 2 767. . . . . . . . . . . . . .
4 975
(813)
18 610
................................................................ ................................................................
5 419 (1 123)
tsr
total
4 0131 . . . . . . . . . . . . . 128 . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . 4 . . . 141 ........... 4 749 . . . . . . . . . . . . . 447 . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . 5 . . . 197 ........... 194 . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . 194 ........... 1 140 . . . . . . . . . . . . . . .83 . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . 1 . . . 224 ........... ........... 382 . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . 382 661 . . . . . . . . . . . . . . .90 . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . 750 ........... 401 . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . 401 ........... 363 . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . 363 ........... 454 . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . 454 ........... 46 . . . . . . . . . . . . . 417 . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . 463 ........... 46 . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . .46 ......... 63 . . . . . . . . . . . . . . . . .4. . . . . . . . . . . . . . . (438) . . . . . . . . . . . . . . . . . . . . (371) ............ 15 . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . .15 ......... 152 . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . .(49) . . . . . . . . . . . . . . . . . . . 103 ........... . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . 1 . . . 344 ........... 293 . . . . . . . . . . 1. . . 051 266 . . . . . . . . . . . . . 499 . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . 765 ........... 668 . . . . . . . . . . . . . 911 . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . 1 . . . 579 ........... . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . 219 ........... 72 . . . . . . . . . . . . . 147 125 . . . . . . . . . . . . . 595 . . . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . 720 ........... 4 . . . . . . . . . . . . . . .80 . . . . . . . . . . . . . . . . . . . . . . -. . . . . . . . . . . . . . . . . .84 ......... . . . . . . . . . . . . . . . . . . . (327) . . . . . . . . . . . . . . . . . . . . . 538 ........... 340 . . . . . . . . . . . . . 525 - . . . . . . . . . . . . . . . .(1) . . . . . . . . . . . . . . . . . . . . .1. . . . . . . . . . . . . . . . . . . . -. . . . . . . 14 448
total value created
-
-
5 419
TREASURY (NET)
5 767
(1 113)
-
(2 236)
OTHER REVENUES/(COSTS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2 236) ..............
(813)
21 793
................................................................
22 606
6.6
RESTRICTED CONSOLIDATED RESULT
30 295
8.6
7.0
6,9
6,9
25
26
DIRECTORS’ REPORT
27
RESULTS
Total consolidated income in 1996 was BEF 5,083 million (BEF 200.58 per share), compared to BEF 2,364 million (BEF 93.28 per share) in 1995 ; restricted consolidated results were BEF 3,826 million (BEF 150.99 per share) in 1996, compared to BEF 2,100 million (BEF 82.88 per share) for the previous year.
Results in 1996 were favourably influenced by capital results - BEF 1,147 million or BEF 45.27 per share (consolidated) and BEF 1,210 million or BEF 47.74 per share (restricted consolidated) respectively -, resulting from the following: Restricted Consolidation
CONTRIBUTION TO CAPITAL RESULTS Write-downs and reversals • ESPIRITO SANTO FINANCIAL HOLDING • COMPAGNIE FINANCIÈRE DE PARIBAS • ARTEMIS • Others Capital gains and losses on sales of long-term investments • SCI & ASSOCIÉS • TRACTEBEL • Others Reversal of provisions on release of NPM/CNP from its commitment to compensate FIBELPAR based on possible exercise by ELF AQUITAINE of its option to sell NPM/CNP shares (1) Amortization of goodwill (2)
Consolidation (transitively)
Mio BEF
BEF/share
Mio BEF
BEF/share
259 65 (249) -
10.23 2.57 (9.84) -
259 5 (249) (29)
10.23 0.20 (9.84) (1.15)
1 051 92
41.47 3.62
756 1 048 254
29.83 41.36 10.02
136
5.37
136
5.37
(1)
(0.03)
(769)
(30.36)
Taxes on capital operations
(37)
(1.48)
(37)
(1.48)
Provision for moving expenses
(20)
(0.79)
(20)
(0.79)
Incidental expenses on headquarters building
(57)
(2.23)
(57)
(2.23)
Other capital results
(29)
(1.15)
(150)
(5.89)
1 210
47.74
1 147
45.27
Total
(1) In October 1996, FIBELPAR purchased the related NPM/CNP shares from ELF AQUITAINE at the stock market price. Consequently no compensation was necessary. (2) Including a BEF 411 million exceptional goodwill amortization due to the capital gain on TRACTEBEL.
28
DIRECTORS’ REPORT
Restricted consolidated operating income rose slightly to BEF 2,616 million (BEF 103.25 per share), compared to BEF 2,589 million (BEF 102.17 per share) in 1995. The increase in the flow of recurring dividends from long-term investments more than offset the fall in the return on short-term investments, whose net income represents only 8% of the average balance held over the period (compared to 13.5% in 1995). In business terms, if we take into consideration the variation in unrealized gains, performance was much better, as described on page 19 of this report, but this is not reflected in the Profit and Loss Accounts.
On a consolidated basis, the increase in operating result was greater (+9.2%) to BEF 3,936 million, compared to BEF 3,604 million in 1995 (BEF 155.31 per share, compared to BEF 142.24 in 1995) given the strong performances of industrial and commercial companies accounted for by the equity method, principally PETROFINA, ROYALE BELGE (its result being influenced by the sale of its TRACTEBEL shares) and TRANSCOR.
The contribution of the various components of the operating result may be analysed as follows (in BEF million): Consolidation
Restricted consolidation
Direct contribution
Transitive (1) contribution
1995
1996
1995
1996
1995
1996
1 021
990
INTEGRATED HOLDING COMPANIES
1 021
990
1 021
990
691
708
PARGESA and controlled holdings
1 110
1 308
192
82
9 61 21 8 480 110 74 114 877
64 12 8 528 98 184 24 918
ACP ARTEMIS BBL BERNHEIM-COMOFI CLT ÉDITIONS DUPUIS HÉLIO CHARLEROI IMETAL PETROFINA ROYALE BELGE SCI & ASSOCIÉS (2) TRACTEBEL (3) TRANSCOR Others Equity-accounted companies
33 (2) 90 31 20 735 178 362 22 4 1 473
53 (37) 38 28 1 021 265 184 83 3 1 638
33 (2) 131 109 90 35 22 199 874 283 362 127 24 104 2 391
53 149 (45) 87 42 31 310 1 222 452 184 88 93 198 2 864
2 589
2 616
OPERATING INCOME
3 604
3 936
3 604
3 936
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) After reallocation of the contribution from operating companies accounted for by the equity method by PARGESA and its controlled holdings. (2) Income for 1995 includes one year of income from SCI & ASSOCIÉS. For 1996 (the year of the sale), the amount posted to the consolidated accounts corresponds -in the absence of financial data on this interest- to the dividend received, which does not differ significantly from budgeted income up to the sale date. (3) Following the sale by ELECTRAFINA of its interest in TRACTEBEL in the second half of 1996, only results from the first half of 1996 were accounted for by the equity method.
We should note that, to date, all of the results from operating companies accounted for by the equity method have been posted by NPM/CNP to operating income. However, given the size of certain non-recurring items, NPM/CNP will have to make a decision in 1997 as to whether it could and should make a distinction between current and non-current items in these companies' results.
29
PROSPECTS
On a restricted consolidated basis, dividends paid in 1997 by companies in which NPM/CNP holds an interest will generally be higher than those for 1996. Still, it is premature to forecast income on short term investments given the impact of changes in interest rates and stock markets. The consolidated accounts, which will also be influenced by the financial markets, will above all depend on the materialization of current growth prospects in the sectors in which NPM/CNP is present through companies accounted for by the equity method. In the absence of any major economic or stock market event, NPM/CNP intends to continue with its current dividend policy through 1997.
LEGAL NOTICE
Pursuant to article 64 (thrice) of the Co-ordinated Laws on Commercial Companies, the Board of Directors informs you that DELOITTE & TOUCHE, Statutory Auditor of the Company received in 1996 a special fee of BEF 207,000 in connection with particular assignments relating to the enlargement of the consolidation perimeter and to a number of consultations. The Board of Directors
30
appropriation of profit and shareholders’ calendar
APPROPRIATION OF PROFIT
At the end of the 1996 financial year the profit available for allocation in the parent company amounted to BEF 7,984,433,646 being the profit of the year of BEF 4,910,215,897 together with the balance brought forward of BEF 3,074,217,749. The Board of Directors proposes to increase the gross dividend per share for 1996 to BEF 102, compared to BEF 100 for 1995. In total, the allocation of profit is as follows : • dividends on 25,340,000 shares • allocation to the unavailable reserve for own shares • profit carried forward
2,584,680,000 362,795,145 5,036,958,501 7,984,433,646
SHAREHOLDERS’ CALENDAR
The Annual General Meeting will take place on 11 June 1997 at 10:00 a.m. at the new registered office 12, rue de la Blanche Borne at 6280 Loverval (Belgium).
Subject to approval by the Annual General Meeting, the dividend shall be paid as of 25 June 1997 upon presentation of coupon nr. 44 at the Company's registered office, as well as at the following banks : • BANQUE BRUXELLES LAMBERT • BANQUE DEGROOF • BANQUE INTERNATIONALE À LUXEMBOURG • BANQUE PARIBAS BELGIQUE • BANQUE PARIBAS (FRANCE) • BANQUE PARIBAS LUXEMBOURG
Information concerning the half-year accounts at 30 June 1997 shall be made public following the meeting of the Board of Directors on 8 August (statutory and restricted consolidation) and 3 October 1997 (consolidated).
31
group structure
32
major shareholdings
(1) PARJOINTCO is 50 % held by the AGESCA NEDERLAND Group, a 89.5 % subsidiary of NPM/CNP (2) AUDIOFINA is 17.1% held by ELECTRAFINA and 51.1 % held by CLMM which is held 59.9 % by ELECTRAFINA (3) ROYALE VENDÔME, jointly controlled by UAP (74.9 %) and GBL (25.1 %), holds 51.2 % of ROYALE BELGE (4) ROYALE BELGE also holds 12.4 % of BBL (5) percentages are related to UAP only (before merger with AXA) (6) acquired early 1997 (7) of which 17.6 % are held by FRATEL, a 95.9 % subsidiary of AUDIOFINA (8) transitive holding including NPM/CNP’s share through the consolidated controlling holding companies of the PARGESA / GBL / PARFINANCE Group.
33
Pargesa Holding
PARGESA HOLDING, incorporated under Swiss law, invests in Europe through three holding companies: GBL in Belgium, PARFINANCE in France and ORIOR in Switzerland. Its investment strategy is based on concentrating its portfolio on a limited number of large interests in which the Group becomes fully involved as professional strategic shareholder.
In
1996 and during the first few months of 1997,
control 97 % of CLT's capital. On 13 January 1997, CLT
PARGESA continued to act as a professional shareholder by
and UFA, BERTELSMANN's audio-visual subsidiary, merged
developing its operating subsidiaries, which are held by various
to form a new entity called CLT-UFA, in which AUDIOFINA
intermediary holding companies.
currently has a 49 % interest.
Following
the sale of its interest in CARNAUDMET-
In May 1996, ELECTRAFINA raised its interest in CLMM
ALBOX at the beginning of 1996, PARFINANCE made a
to 60 % by purchasing GBL's 35 % interest in said group.
Public Offer to Purchase its own shares in May 1996 for
ELECTRAFINA also acquired 17.2 % of AUDIOFINA.
FRF 2.4 billion. As PARGESA did not contribute its securities
GBL's transitive interest in the latter fell from 23.9 % to
to the offer, its percentage interest rose significantly,
22.9 %.
In
reaching 49.1 % at the end of 1996,
September 1996, ELECTRA-
compared to 32.4 % a year earlier.
FINA and ROYALE BELGE sold their
As GBL did not contribute either,
interests in TRACTEBEL to SOCIÉTÉ
its interest in PARFINANCE also rose,
GÉNÉRALE
from 27 % to 41 %. Consequently,
BEF 48 billion.
DE
BELGIQUE
ELECTRAFINA
PARGESA and GBL together now
has
for
acquired
control 90 % of the capital of their
a shareholding in COMPAGNIE DE
French subsidiary.
SUEZ, which reached 6.1 % at the end
The effect of the Public Offer was
of 1996 and more than 11 % on the 18 April 1997.
to raise to around 70 % IMÉTAL's share estimated
ORIOR continued to grow its food
assets. PARFINANCE's interest in
business by acquiring the RIEDER
IMÉTAL remained virtually unchan-
Group. Its interest in the RAPELLI
in
PARFINANCE's
net
Group was raised from 80 % to 100 %
ged at 52.5 %.
PARGESA's
49.1 % interest in GBL remained stable
and the Group's share in the capital of FREDAG AG went from
during the year, although its interest in ORIOR rose from
56.4 % to 68 % in 1996. The ORIOR Group's strategy in
69.0 % to 74.1 % through stock market purchases.
Switzerland was reflected by the taking of a 71.3 % interest in
In
April
1996,
AUDIOFINA
and
the capital of STERN CRÉATIONS, a manufacturer of watch
Germany's
dials and components.
BERTELSMANN reached a 50-50 partnership agreement to
Contribution to :
Consolidated key figures (CHF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
2,388
2,563
2,498
2,790
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
708
27.9
0
23,373
922.4
0
162
168
272
103.6
103.3
165.7
Gross dividend per share (CHF)
68.0
69.0
70.0
71.0
Estimated value per share (CHF)
2,067
1,925
1,934
2,497
Earnings per share (CHF)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
159
105.9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.0 0.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
Groupe Bruxelles Lambert GBL, Belgium's second largest holding company, holds direct and indirect interests in a series of leading companies, including PETROFINA, ROYALE BELGE, BANQUE BRUXELLES LAMBERT and BERNHEIM-COMOFI in Belgium, CLT-UFA in Luxembourg and IMÉTAL in France. In addition to the above, which represent some 70 % of its estimated value, GBL also holds interests in unlisted firms such as BELGIAN SKY SHOPS, which operates duty free stores in the Brussels-National Airport and GILLAM, which is active in telecommunications.
For the 1996 business year, GBL had a consolidated profit
enabled GBL to bring its interest in the latter from 27 % to 41 %,
of BEF 16.9 billion (compared to BEF 6.6 billion the previous
which is part of the Group's strategy to get closer to PARFINANCE's assets, particularly IMÉTAL. GBL and its parent
year) and current income rose by 16.6 %.
During 1996, GBL continued to act as professional share-
company PARGESA together hold 90% of PARFINANCE.
The interest in PETROFINA is held by an intermediary
holder by investing in the development of its operating
holding company, ELECTRAFINA, in which GBL further
subsidiaries.
In
Germany's
increased its position in June 1996 at the time of the
BERTELSMANN reached a 50-50 partnership agreement
increase in long-term funds of BEF 30 billion. It now holds a
April
1996,
AUDIOFINA
and
for the control of 97 % of CLT's capital. On 13 January 1997,
57 % interest, including the 8 % held by ROYALE BELGE.
CLT and UFA merged to form a new unit called CLT-UFA
In September 1996, ELECTRAFINA decided to sell its
bringing AUDIOFINA's interest in CLT-UFA to 49 %. This oper-
interest in TRACTEBEL to SOCIÉTÉ GÉNÉRALE DE
ation enabled CLT to confirm its position as Europe's leading
BELGIQUE. This operation provided it with BEF 41 billion in
audio-visual group.
additional cash.
ELECTRAFINA
In May 1996, GBL sold to ELECTRAFINA its 35% interest
has
acquired
a
shareholding
in
LUXEM-
COMPAGNIE DE SUEZ, which
BOURGEOISE MULTI MEDIA
reached 6.1 % at the end of 1996
(CLMM), the controlling share-
and more than 11 % on the
holder of AUDIOFINA-CLT, for
18 April 1997.
in
COMPAGNIE
At
BEF 18.3 billion. Following this
31 December 1996, the
transaction ELECTRAFINA held
estimated value of the GBL share
60 % of CLMM.
was BEF 5,838. On that date, the
The public offer to purchase
market price was BEF 4,085, a discount of 30 %.
its own shares launched by PARFINANCE in February 1996
Contribution to :
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
71,370
74,184
75,597
88,676
6,382
6,633
6,602
16,891
281
282
281
722
Gross dividend per share (BEF)
195.3
195.3
195.3
200.0
Estimated value per share (BEF)
5,121
4,705
4,959
5,838
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0.0
0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.0
Earnings per share (BEF)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
0
0.0
0
0.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36
Parfinance
PARFINANCE, whose securities are listed on the Paris Stock Market, is the holding company through which GBL and PARGESA, which hold 41 % and 49.1 % respectively, invest in France. PARFINANCE's portfolio includes a 52.5 % interest in IMÉTAL, an industrial group specialized in industrial minerals, building materials and metals processing, as well as interests in PARIBAS (3.2 %) and in the insurer UAP (1.9 %). After the sale at the beginning of 1996 of its 6.9 % share in
It rose as a result of capital gains on short term investments and
CARNAUDMETALBOX, PARFINANCE made a Public Offer to
the absence of financial expenses on bonds redeemable in
Purchase its own shares for FRF 2.4 billion. As the GBL and
shares, which more than offset the lack of dividend from
PARGESA groups did not contribute their securities to the offer,
CARNAUDMETALBOX and the fall in interest income due to the
their respective interests rose considerably. Moreover,
purchase of its own shares;
the 52.5 % interest in IMÉTAL, virtually unchanged in 1996,
• capital results showed a loss of FRF (297) million in 1996,
now represents 70 % of the estimated net asset value of
compared to a profit of FRF 18 million in 1995. These include
PARFINANCE. Based on the stock market price for listed secu-
a FRF 170 million capital gain on the sale of the CARNAUD-
rities, the net book value for unlisted securities and before
METALBOX shares, losses and provisions on the PARIBAS
taking into account latent taxes, PARFINANCE's estimated net
shares -whose value was reduced to the level of the share-
value was FRF 8,603 million at the end of 1996 (i.e. FRF 378
holders' equity per share of this company-, and provisions for
per share), up 38.5%.
real estate assets and interests in investment companies.
The year's consolidated net income was FRF 126 million,
It will be proposed to the Annual General Meeting that the
compared to FRF 393 million in 1995 and may be broken down
firm pay a dividend of FRF 7.50 per share, the same as was paid
as follows:
the previous year.
PARFINANCE
• the contribution of
decided
IMÉTAL, the only interest
to contribute all of its UAP
accounted for by the
securities to the public
equity method since 1995,
offer of exchange launched
was FRF 299 million,
by AXA and in 1997
compared to FRF 291 mil-
received AXA shares and
lion last year;
the same number of guar-
• operating income of
anteed value certificates.
fully consolidated holding
On 21 March 1997, PARFI-
companies
FRF
NANCE had a 0.7% interest
124 million, compared to
in the capital of AXA-UAP,
was
the newly formed group's
FRF 83 million in 1995.
holding company.
Contribution to :
Consolidated key figures (FRF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
8,097
8,094
8,262
5,909
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity (before allocation)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0,0
0
0
0,0
0
296
387
393
126
Earnings per share (FRF)
9.4
12.3
12.5
4.6
Dividend per share (FRF)
7.5
7.5
7.5
7.5
Estimated value per share (FRF)
289
264
273
378
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0,0 0,0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
Electrafina ELECTRAFINA is PETROFINA's largest shareholder (with a 22.8 % interest ) and controls -both directly and through its 60 % interest in COMPAGNIE LUXEMBOURGEOISE MULTIMEDIA (CLMM)- 69 % of AUDIOFINA. These two interests represent 72 % of the estimated value of its consolidated portfolio. ELECTRAFINA is also pursuing the development of its own oil-related activities through the AMERICAN COMETRA Group (research, development and exploration of oil and gas fields in North America) and MONUMENT OIL & GAS, an independent oil exploration company in Great Britain. ELECTRAFINA's 1996 business year, which ended with
sold petrol assets for USD 400 million to LOMAK PETRO-
a net profit of BEF 24,269 million, was influenced by the
LEUM. This transaction will have a positive impact -estimated
sale in September of its 20.4 % interest in TRACTEBEL
at more than BEF 4.5 billion- on ELECTRAFINA's consolidated
to SOCIÉTÉ GÉNÉRALE DE BELGIQUE. This operation
accounts in 1997.
totalled BEF 41 billion and yielded a consolidated capital
In June 1996, ELECTRAFINA acquired GBL's 35% interest
gain of BEF 18.9 billion. Current income rose 15 % to
in COMPAGNIE LUXEMBOURGEOISE MULTI MEDIA (CLMM),
BEF 6,984 million, mainly due to another increase in
as well as 17% of AUDIOFINA. ELECTRAFINA thus brought its
PETROFINA's contribution to income.
interest in CLMM to 60%, with the latter holding 51% of
In 1996, PETROFINA's profits rose 38% to BEF 16 billion.
AUDIOFINA's capital.
On
This was mainly attributable to the large increase in the price
13 January 1997, CLT and UFA, BERTELSMANN's
of petrol and gas for the upstream sector, as well as better
German subsidiary, merged to form a new entity called CLT-
refining margins and an increase in downstream trading
UFA. AUDIOFINA now co-controls CLT-UFA with a 49%
volumes. However, this favourable development was partially
interest.
E LECTRAFINA
offset by the general weakening of margins in petrochemicals.
MONUMENT's
has acquired a shareholding in
COMPAGNIE DE SUEZ, which reached 6.1% at the end of 1996
1996 business year was characterized
and more than 11% on the 18 April 1997.
by the restructuring of its shareholding through an optional
In
cash compensation offer. ELECTRAFINA decided to reinvest
June 1996, ELECTRAFINA decided to reinforce its
the related treasury flow in MONUMENT OIL & GAS secu-
shareholders' equity by BEF 30 billion by creating 7,448,328
rities and acquired additional securities in the market.
new shares and 2,482,776 bonds redeemable in shares.
At
At 31 December 1996, ELECTRAFINA held a 25.7 % direct
31 December 1996, the estimated value of the
interest in MONUMENT
ELECTRAFINA share was
OIL & GAS.
BEF 4,041. On that date,
In
February 1997,
the market price was BEF
AMERICAN COMETRA
3,016, a discount of 25.4%.
Contribution to :
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
68,724
77,745
77,159
121,024
4,194
5,342
5,294
24,269
165
190
178
724
Gross dividend per share (BEF)
133.3
137.4
140.0
142.0
Estimated value per share (BEF)
4,094
3,698
3,845
4,041
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0.0
0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.0
Earnings per share (BEF)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
0
0.0
0
0.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
Audiofina
AUDIOFINA was the controlling shareholder of CLT until 13 January 1997. Since that date it controls CLT-UFA,
the largest television and radio group in Europe, in partnership with Germany's BERTELSMANN Group. In addition to its interest in CLT-UFA, AUDIOFINA has a 4% interest in the HAVAS Group and treasury amounting to LUF 32 billion.
During 1996, AUDIOFINA's portfolio remained almost
The CLT-UFA partnership, which marks the continu-
unchanged. The LUF 3,306 million profit, up 2 % from the
ation of AUDIOFINA's strategy of developing and accom-
previous year, reflects the slight rise in CLT's contribution
panying CLT, will offer the following advantages :
and AUDIOFINA's good results in its treasury manage-
• a consolidation of CLT's existing activities and markets
ment.
via the stabilisation of RTL-TELEVISION's shareholding
The
new CLT-UFA Group, created by the merger
and an expansion of the radio activities in Germany ;
between CLT and UFA, the audio-visual subsidiary of
• new perspectives for existing activities of CLT : the rein-
BERTELSMANN, is the largest television and radio
forcement of production activity via TREBITSCH and UFA
company in Europe, with a turnover of approximately
Berlin and the development of the " rights " business;
LUF 110 billion, through its interests in 19 television
• an entry into new markets, including PREMIÈRE pay
stations and about 20 radio stations in 10 European coun-
TV ;
tries. The new entity is also is a key player in the acqui-
• the support of a powerful shareholding : BERTELS-
sition of rights and in the production sector.
MANN, a global communications giant, in partnership
The
purpose of the CLT-UFA alliance is to create a
with AUDIOFINA, which holds LUF 32 billion in cash.
F ollowing
European group capable of playing a significant role in the
reimbursements
of
535,568
bonds
international audio-visual markets which are character-
redeemable in shares (BRS) at the end of 1996,
ized by greater competition and by the emergence and the
the number of AUDIOFINA shares totalled 61,532,300.
gradual introduction of new digital technologies.
The number of BRS remaining in circulation is 5,133,070.
Contribution to :
Consolidated key figures (LUF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
Equity (before allocation)
5,548
13,136
22,800 25,715
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1996
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0.0
0
0
0.0
0
1,659
3,826
3,232
3,306
53.9
123.1
53.0
54.2
Gross dividend per share (LUF)
19.0
20.4
21.0
22.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
Net profit (Group share)
Earnings per share (LUF)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.0 0.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39
Petrofina
PETROFINA is an international oil and chemical group whose activities cover all sectors of the oil industry : exploration, production, transport, refining, petrochemicals, research, distribution and sale of oil and chemical products. The Group is also very active in the paint industry and in oleo-chemicals. Total
consolidated income (minority interests included)
was supported in Europe and the United States by the produc-
totalled BEF 16.7 billion in 1996, compared to BEF 12.3 billion
tion capacity increase and by the development of new products.
in 1995 (an increase of 36%). The Group's share of this income
In Europe, the rise in raw materials prices which took place in
rose by 38% to BEF 16.0 billion in 1996 (BEF 690 per share),
the summer was only reflected in end-user prices at the end of
compared to BEF 11.6 billion in 1995 (BEF 500 per share).
the year.
Capital gains on sales of assets and other extraordinary
The
Group plans to invest BEF 37 billion in 1997,
revenues were absorbed by non-recurring charges. Cash flow in
compared to BEF 34 billion in 1996. This investment will
1996 was BEF 45 billion, compared to BEF 39 billion in 1995.
mainly be used in the downstream sector to continue the devel-
PETROFINA's
opment of EKOFISK II, ARMADA in the North Sea and TEMPA
1996 results differed from those of the
previous year in three ways:
ROSSA in Italy and, in the chemical sector, to increase produc-
• there was considerable growth in upstream sector income due
tion capacities by debottlenecking, as well as to expand the
to the increase in the price of crude oil and American natural gas;
high-density polyethylene factory in the United States. In the
• an improvement in downstream sector income in Europe
downstream sector, the investment will extend marketing activ-
following the increase in volumes processed and sold and
ities in Europe and in the United States.
The gross dividend rose 14% to BEF 400 per share, for a
the improvement of refining margins, particularly in the
total distribution of BEF 9.3 billion. After the dividend has been
second half of the year, on conversion margins ; • a fall in income in the chemical sector
paid, VVPR shares may be exchanged
following the general weakening of
against a common share and a strip so
margins.
that only one line is listed on the
In the upstream sector, the project
Brussels Stock Market. The Company
to redeploy EKOFISK installations
has applied for a listing on the New
continued, while in the downstream
York Stock Exchange. In order to
sector, the competitive advantages of
simplify
the Antwerp refinery's deep conversion
PETROFINA has proposed to the
equipment materialized thanks to
minority shareholders of FINA Inc. that
market changes. The chemical sector
the two companies merge.
Contribution to :
the
Group's
structures,
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
Equity
127,064
122,969
122,207 133,069
Turnover
563,193 624,594
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1996
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
528
20.9
1,222
15,161
598.3
18,107
580,676
7,144
10,262
11,608
16,048
Earnings per share (BEF)
307
441
500
690
Gross dividend per share (BEF)
280
320
352
400
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
558,982
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48.2 714.5
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41
Compagnie Générale des Eaux
COMPAGNIE GÉNÉRALE DES EAUX manages and directs the leading French private services group in the environmental (water, power, cleaning and transport), construction and communications sectors. It has become the world-wide leader in diversified municipal and community services.
The Group's turnover totalled FRF 165.9 billion, up 3.4 %
dilution profits of FRF 3.9 billion, as well as net provisions
on constant group perimeter and exchange rate basis.
for FRF 2.2 billion, including FRF 5.3 billion of provisions
This includes growth of 7.6 % in environmental services and
(mainly in real estate and communications) and FRF 2.9 billion
growth of 64.5 % in communications in France. On the other
reversals on the provision for replacements in the water busi-
hand, turnover fell 6.2 % in the construction and real estate
ness following a change in accounting methods used.
Income
sector, reflecting the contraction of the market and the selec-
from companies accounted for by the equity
method was FRF 1,387 million, with a FRF 685 million extra-
tivness efforts. Outside France the Group had a turnover of FRF 51.1 billion, up 8 %, mainly in
ordinary capital gain from the sale by
service businesses.
ELECTRAFINA of its interest in
The
Group's operating income
TRACTEBEL, and conversely, from
was FRF 3.8 billion, 2.6 times what it
the share of the EIFFAGE Group's
was in 1995 on a constant group
losses of FRF (293) million.
After
perimeter basis and slightly higher
accounting for taxes of
than the 1994 figure. In environ-
FRF 1,190 million, employee profit
mental-related services, operating
sharing of FRF 260 million and a
income was FRF 6 billion, up 5.3% on
positive contribution of minority
a comparable basis. Income from the
interests (construction and real estate
Group's
companies,
companies) of FRF 370 million,
slightly negative at FRF (22) million,
the Group's share of consolidated net
was marked by the fall in road activity
income was FRF 1,953 million.
construction
C ash
in France and was still affected by the
flow
went
from
accounting for probable losses from the completion of several
FRF 6.8 billion to FRF 11.5 billion and operating cash flow
construction yards abroad. As expected, telecommunications
went from FRF 4.9 billion to FRF 7.5 billion. The slight fall in
produced a FRF (1.1) billion loss under the weight of invest-
investment volume to FRF 16.2 billion allowed for a debt reduc-
ments.
tion from FRF 51.7 billion to FRF 45.1 billion. financial income was FRF 2.2 billion negative,
At the beginning of 1997, CGE contributed its interest in
a considerable improvement over the previous year
CANAL PLUS to HAVAS, which will hold a 34.4% interest.
(FRF 3.4 billion negative).
CGE is now the largest shareholder of HAVAS, with the objec-
Net
Extraordinary
tive of bringing its shareholding in this Group up to 30 %.
income was close to zero, compared to
FRF (2.4) billion in 1995. It mainly includes capital gains and
Contribution to :
Consolidated key figures (FRF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
31,613
34,446
30,176
33,682
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
Turnover
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
97
3.8
97
4,384
173.0
4,384
156,157
3,205
3,346
162,961 165,914 (3,686)
1,953
Earnings per share (FRF)
31.5
30.1
(31.3)
15.8
Dividend per share (FRF)
11.00
11.25
11.25
12.00
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
147,609
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.8 173.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42
Elf Aquitaine ELF AQUITAINE, present in 80 countries, is one of the ten largest petroleum groups world-wide and is the fourth largest producer of natural gas in Europe. Its ELF ATOCHEM subsidiary is the thirteenth largest chemical group world-wide. In the health sector, SANOFI is among the 30 largest laboratories. Since its privatisation in 1994, ELF has focused on its core businesses (Hydrocarbons, Chemicals and Health), has implemented a cost-cutting policy aimed at improving its profitability and has continued to grow in emerging markets. In
1996, current operating income rose 44 % to
wide business in the sale of lubricants and liquefied petrol gas
FRF 22.3 billion and net current income rose 41 % to
(LPG). The rise in the contribution of the Refinery-Distribution
FRF 7.5 billion, or FRF 28 per share. Net income was
and International Trading sector is mainly due to productivity
FRF 7 billion.
gains. Its operating income was FRF 0.4 billion in 1996;
The increase of the operating cash flow to FRF 31,1 billion
• Chemicals : the activities of ELF ATOCHEM are distributed
and a good control of the investments allowed the Group to
among specialized chemicals world-wide and basic chemicals
pursue its financial debt reduction policy while buying back
(petrochemicals, chlorochemicals and fertilisers) in Europe.
12,3 million ELF AQUITAINE shares when the Government
The 1996 business year was marked by acquisitions (FINDLEY
withdrew from its capital. The gearing ratio is now 37 %,
ADHESIVES INC. in the United States and the European acti-
though it would have been 30 % without the purchase of its own
vities of LAPORTE PLC in adhesives and mastics) in accor-
shares.
dance with ELF ATOCHEM's strategy to develop and interna-
The various businesses contributed as follows :
tionalize speciality chemicals. Operating income from
• Exploration-Production : 1996 marked the first time that
chemicals was FRF 3.6 billion in 1996 ;
production exceeded the equivalent of 1 million petroleum
• Health : the consequences of the slowdown in consumption
barrels per day (3/4 petrol, 1/4 gas).
on the European beauty market were
Current operating income from
offset by the positive developments of
Exploration-Production rose 96 % to
SANOFI's major international medi-
FRF 15.7 billion. Productivity gains
cations. In 1996, SANOFI made
and growth in hydrocarbon produc-
significant progress towards bringing
tion account for nearly FRF 2 billion
to the market three very important
of this growth, the balance being due
molecules based on its research.
to the rise in petrol prices ;
Its operating income remained
• Refinery-Distribution :
ELF
unchanged at FRF 2.5 billion.
AQUITAINE has developed a world-
Contribution to :
Consolidated key figures (FRF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
84,088
76,472
78,672
80,062
209,675
207,674
208,290
232,707
1,070
(5,439)
5,035
6,977
4.2
(21.0)
18.9
26.0
13.0
13.0
13.0
14.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
Turnover
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
130
5.1
130
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.1
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
3,744
147.8
3,744
147.8
Earnings per share (FRF)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividend per share (FRF)
43
Transcor
The TRANSCOR Group is active in the distribution and trading of energy products: mainly coal and petrol. The oil trading is carried out by the ASTRA Group and its various subsidiaries, which are located to ensure a world-wide coverage.
After
a difficult year in 1995 which was marked by
As for commercial structure, 1996 also saw the opening of
the lightening of its operating structure, ASTRA saw a consid-
two new subsidiaries, one in Germany, the other in
erable improvement in its operations in 1996. Despite an oil
the United States. Both began trading coal products in
market characterized by greater competitive pressures, ASTRA
January 1997.
HAUTERAT & WATTEYNE, the Belgian subsidiary which
took advantage of its strategy of concentration on promising
distributes and markets oil products, continued its expansion
market niches.
On the other hand, its subsidiaries active in the trading
in the thinners sector while maintaining its market share in the sale of fuel oil to Belgian industrial clients.
and distribution of coal saw a sharp reduction in volumes;
Overall,
this was mainly the result of the fall in consumption of coke
1996 results were much better than those of
used in the steel industry, as well as the closing of a coal
the previous year, mainly as a result of the turnaround of
terminal located in England, which had been losing money due
the ASTRA Group.
to a change in market conditions. The entire cost of said closure was posted to the year's results.
Contribution to :
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
1,360
1,271
1,203
1,431
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
Turnover
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
24
0.9
93
681
26.9
758
59,045
33,324
42,051
150
257
45
173
Dividends
240
240
50
145
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
72,885
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.7 29.9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Paribas The activities of the PARIBAS Group are organized around two businesses : • the international commercial bank with - BANQUE PARIBAS, focused on commercial banking, market activities, institutional and private management, securities custody and consulting ; - PARIBAS Affaires Industrielles which takes interests in other companies. • Specialized Financial Services with COMPAGNIE BANCAIRE. The PARIBAS Group recorded a net income (Group share)
lion, compared to FRF 2,173 million, benefiting from the strong
of FRF 4,350 million after a loss of FRF (3,998) million
rise in capital gains from sales (16% of AUDIOFINA, 35% of
in 1995 due to extraordinary provisions on the interest in
AXIME, 5% of POLIET - the remaining 52% being sold over
COMPAGNIE DE NAVIGATION MIXTE and on real estate
3 years -, 13% of POWER CORP, UGC DA), despite the reduction
assets which no longer had an impact on the 1996 results.
in results from equity-accounted companies;
This year, the PARIBAS Group completed its FRF 15 billion
• the contribution of COMPAGNIE BANCAIRE was FRF (583) million, compared to FRF 338 million. A capital gain on the sale of
asset sale programme.
According to PARIBAS' usual presentation, this result may
6% of CETELEM and strong business results (savings and loans)
be explained as follows:
partially offset the FRF 2.5 billion extraordinary provision on
• the contribution of BANQUE PARIBAS was FRF 1,661 million,
real estate;
compared to FRF (3,720) million, reflecting strong revenue
• CREDIT DU NORD, which contributed FRF 190 million
growth (Commercial Banking, Capital Markets and Financial
(compared to FRF 3 million) will be gradually sold to SOCIÉTÉ
Services) which exceeded the rise in operating charges,
GÉNÉRALE, which will acquire a 62% interest of said firm in
the maintenance at a moderate level of banking provisions,
1997, with the sale of the remainder taking place over the next
a positive contribution from non-operating items (which had
three years;
been quite negative in 1995) and a lower tax burden.
• the contribution of holding activity (the holding company's
BANQUE
debt
PARIBAS'
and
overhead)
financial resources were
of FRF (115) million,
strengthened, in partic-
compared to FRF (2,792)
ular by a FRF 4 billion
million, benefited from
capital increase;
capital
gains
from
of
sales of interests of
PARIBAS Affaires Indus-
COMPAGNIE DE NAVI-
trielles was FRF 3,197 mil-
GATION MIXTE.
• the
contribution
Contribution to :
Consolidated key figures (FRF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
Equity (before allocation)
41,364
45,261
40,166
40,329
Net profit (Group share)
1,449
1,715
(3,998)
4,350
Earnings per share (FRF)
14.3
15.6
(33.9)
39.7
Dividend per share (FRF)
12.0
12.0
12.0
13.0
Estimated value per share (FRF)
580
493
438
483
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
15
0.6
74
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
0
0.0
1,127
44.5
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46
Cobepa
COBEPA, traditionally operating in Benelux and Canada, carries out two major functions as a merchant bank
and an active investor, bringing added value over the long-term to its investments. Its inclusion in the worldwide network of PARIBAS gives it access to professional expertise, market information and business contacts, allowing it to deal with the international nature of business today.
In 1996, its fortieth business year, COBEPA continued its
PARIBAS DEELNEMINGEN invested nearly BEF 1 billion
policy to refocus its portfolio, broaden its client base, simplify
in the capital of three Dutch small- and medium-sized enter-
structures, maximise its shares' visibility and improve
prises: KONINKLIJKE SENS LABEL, a family-owned company
results.
which is one of Europe's largest label manufacturers, VEGRO
COBEPA sold most of its interest in POWER CORPORA-
BEHEER, leader in the wholesale distribution of heating and
TION OF CANADA for CAD 326 million, generating a yearly
sanitary equipment and APPLEBEE, a new chain of American-
average internal rate of return of 23% in CAD and 14.5% in BEF.
style restaurants.
IBEL
Following this operation, Canadian subsidiary P.P.L. maintains
took a 18% interest in INDUSTRIAL LAUNDRY
GROUP, a manufacturer of industrial washing machines present
a 2.5% interest in POWER CORPORATION.
At the beginning of September, COBEPA underwrote 5%
in Belgium and in the United States, by the side of its manage-
of the BEF 11 billion capital increase of MOBISTAR,
ment. It also took a 1% interest in TELENET HOLDING, a new
a company which develops and operates Belgium's second
cable telephony project.
largest mobile phone network. Its MOSANE and IBEL
COBEPA played its merchant bank role in the acquisition of
subsidiaries underwrote 5 % and 1.01 %, respectively, of the
DESIMPEL by HANSON BRICKS, AXA's public offer of exchange
capital, a total investment for the Group of BEF 1,210 mil-
on AXA BELGIUM, the offer by S.C.L. (SAFMARINE-CMB) on
lion. The MOBISTAR network began operations on
COMPAGNIE GÉNÉRALE MARITIME as part of its privatisation
schedule and has been an excellent commercial success.
by the French government, the purchase of GAN BELGIUM by
In November, as part of its partnership agreement, COBEPA
SWISS LIFE and the acquisition of France's SACREN, a credit
and HOLDING GROUPE JOSI sold
insurance company, by Germany's
COMPAGNIE D'ASSURANCES GROUPE
GERLING
JOSI to WINTERTHUR-EUROPE ASSUR-
subsidiary, ASSURANCES DU CRÉDIT DE
ANCES, creating a consolidated capital
NAMUR.
In
gain of BEF 800 million. COBEPA partici-
Group
and
its
Belgian
1996, the net economical
pated for BEF 1 billion in the capital
income totalled BEF 5,890 million.
increase
WINTERTHUR-EUROPE
The allocation of negative currency
ASSURANCES by taking up 4.8% of its
translation adjustments, posted to
capital. COBEPA still has a 22.2% interest
income at the time of the deconsolida-
in HOLDING GROUPE JOSI, which took a
tion of the interest in POWER
of
9.6% interest in WINTERTHUR-EUROPE
CORPORATION, brought the Group's
ASSURANCES.
share of net income to BEF 3,209 million.
Contribution to :
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
42,388
47,744
47,056
50,064
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
62
2.5
62
1,406
55.5
1,406
3,749
4,577
3,361
3,209
90.6
107.1
78.9
75.0
Gross dividend per share (BEF)
46.6
49.8
53.3
57.3
Estimated value per share (BEF)
1,461
1,353
1,423
1,662
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
Net profit (Group share)
Earnings per share (BEF)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.5 55.5
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
Compagnie de Suez
The SUEZ Group is one of France's largest holding companies. SUEZ transformed itself from a group dominated by banking at the beginning of the year to a group dominated by industry following the sale of BANQUE INDOSUEZ and it acquisition of a larger interest in TRACTEBEL. After eight years of indebtedness, SUEZ once again has a positive treasury and is making a profit. Five events marked 1996:
39.8% to 64.2%. This reinforcement, which represented an investment of around FRF 8 billion, was made for two reasons.
• the sale of 100% of BANQUE INDOSUEZ to CRÉDIT AGRICOLE (51% on 1 July and the balance at the end of
The strategic reason: SUEZ decided to develop its presence in
December) for FRF 11.9 billion gave rise to a consolidated
the sector of services to local authorities and infrastructures.
capital gain of FRF 300 million and put an end to the Group's
The financial reason: this operation has a positive impact on
exposure to the volatility of market activity;
SGB and SUEZ results;
• treasury at SUEZ turned positive with more than FRF 5 billion
• throughout 1996, the shareholder structure was modified.
at the end of 1996. At the end of
Four groups, supporting its new
1995, SUEZ still had net debt of
strategy now form the heart of the
FRF 4.5 billion and during 1996 had
shareholding
to finance FRF 5 billion in real estate
AGRICOLE, SAINT-GOBAIN, GROUPE
losses. Positive treasury at the end of
BRUXELLES LAMBERT and AXA-
1996 is mainly explained by the sale
UAP. The cross holding with ELF
of INDOSUEZ, as well as by other
AQUITAINE was terminated.
The
efforts aimed at refocusing its
structure:
CRÉDIT
1996 business year ended
business during the year (sale of
with a profit of FRF 843 million,
GARTMORE, SALINS DU MIDI,
with current income rising 38% to
FONCIÈRE LYONNAISE,..);
FRF 2,312 million. Net income for
• given the still difficult Paris real
1996 was still marked by the effect of
estate market, SUEZ stepped up the
the real estate crisis -which had a
pace of its exit from this sector due to
FRF 2,541 million negative effect (compared to FRF 5,003 million in
be completed by the year 2001 by entering into agreements with WHITEHALL (GOLDMAN
1995)- and by a provisioning effort, in particular on the interest
SACHS) on the sale of its entire portfolio of real estate receiv-
in AXA-UAP, for FRF 500 million.
ables from third parties and its own real estate developments
After having determined and commenced implementa-
for a net value of FRF 4 billion, reflected by a capital loss of
tion of its strategy, reconstituted its margins of manoeuvre
FRF 1 billion in the 1996 accounts. In three years, SUEZ
and rediscovered the way to profits, SUEZ must now show its
divided its net commitments by six, from FRF 14.1 billion at the
will to create shareholders’ value. It is with this in mind that
end of 1995 to FRF 4.8 billion at the end of 1996;
the Board of Directors will propose to the Annual General
• in September 1996, SOCIÉTÉ GÉNÉRALE DE BELGIQUE,
Meeting that its own shares (4.96 % of capital) be cancelled
a subsidiary in which SUEZ has an 63% interest, acquired the
and that the conditions of the merger of SUEZ and
interests of GROUPE BRUXELLES LAMBERT and ROYALE
LYONNAISE DES EAUX be approved in order to create a
BELGE in TRACTEBEL, thereby raising its shareholding from
world-wide utility group.
Contribution to :
Consolidated key figures (FRF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
50,665
46,089
41,460
42,735
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0.0
0
0
0.0
740
1,575
(4,784)
(3,959)
843
Earnings per share (FRF)
11.56
(32.69)
(26.53)
5.52
Dividend per share (FRF)
8.20
8.20
8.20
24.60
Estimated value per share (FRF)
469
355
323
345
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.0 29.2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
Société Générale de Belgique SOCIÉTÉ GÉNÉRALE DE BELGIQUE, Belgium's largest holding company, holds interests in seven international companies in industry and services: TRACTEBEL (electricity, gas, engineering, the environment), GÉNÉRALE DE BANQUE (bank and financial services), FORTIS AG (insurance and financial services), UNION MINIÈRE (non-ferrous metals), RECTICEL (polyurethane foam), COFICEM/SAGEM (electronic and telecommunications equipment) and ARBED (steel). Up to 19 February 1997, SGB was the largest shareholder of ACCOR, world-wide leader in the hotel sector.
In 1996, and for the fifth year in a row, GÉNÉRALE once
in capital, in order to maintain its percentage interest in both.
again improved its operating income, despite the persistent
During the year, all of the interests in ELF AQUITAINE and
economic crisis.
The
year's largest transaction was the purchase in
in COMPAGNIE DE SUEZ were sold. In February 1997,
September 1996 of more than 3 million TRACTEBEL shares from
GÉNÉRALE sold its interest in ACCOR to institutional investors.
ELECTRAFINA and ROYALE BELGE for BEF 49.6 billion, thereby
TRACTEBEL, GÉNÉRALE DE BANQUE and FORTIS AG
raising GÉNÉRALE's percentage interest in TRACTEBEL from
which, together represent 81% of the portfolio, saw their results
39.8% to 64.2%. GÉNÉRALE followed its acquisition by maintai-
rise sharply in 1996.
ning the share price on the Stock Market and the issuing of puts.
UNION MINIÈRE closed 1996 with a positive net income
At the beginning of 1997, TRACTEBEL and its POWERFIN subsi-
for the first time since 1990, while RECTICEL, still slightly in
diary decided to merge their activities, which would bring
the red, continued its turnaround which began during the
GÉNÉRALE's interest in TRACTEBEL down to 50.3%.
second half of 1996. COFICEM/SAGEM, in which GÉNÉRALE
GÉNÉRALE
has maintained its 20% interest, also made a positive contribu-
also invested in GÉNÉRALE DE BANQUE
tion to the Group's results.
and in FORTIS AG at the time of their respective increases
Contribution to :
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
163,519
165,769
166,470 166,335
Net profit (Group share)
8,688
11,011
9,205
11,220
Earnings per share (BEF)
128
156
130
159
Gross dividend per share (BEF)
104
114
116
116
Estimated value per share (BEF)
2,977
2,769
2,998
3,443
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
1996
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
196
7.7
196
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.7
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
4,206
166.0
4,206
166.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
Royale Belge
ROYALE BELGE is an insurance and financial services group which is active in the Benelux and the North of Europe. Its goal is to be a global insurance company in this market, offering a complete line of life and non-life insurance products, savings products and investment products, as well as loans to individuals.
In
In
Belgium, the Group continued its multi-partnership
1996, the consolidated turnover of ROYALE BELGE
policy while reinforcing its relationships with brokerage firms.
rose 2.8 % to BEF 112.4 billion, of which 61 % came from
The distribution of insurance products by exclusive intermedia-
Belgium, 35 % from the Netherlands and 4 % from
ries continues to be managed by the Group's UAB subsidiary
Luxembourg. In Belgium, turnover from life insurance
and represents 7% of insurance turnover from individuals.
products rose 3.6 %, while non-life turnover remained
Since January 1997, a single sales organization common to
unchanged overall, despite the weak market for individuals.
banking and to insurance has been managing the insurance
The weak growth of turnover in the Netherlands was the
brokers and appointed agents of the
result of rate adjustments in non-life
bank IPPA. Collaboration agreements
insurance and the abandoning of
have been signed with large Belgian
certain product lines with insuffi-
banks, among them GÉNÉRALE DE
cient profits.
As
BANQUE, BANQUE BRUXELLES
has been the case in the
LAMBERT and CRÉDIT COMMUNAL
past, the contribution of the Belgian
DE BELGIQUE. The partnership with
insurance sector to consolidated
LA POSTE (Belgian post services) is
income
beginning to bear fruit and the crea-
Technical results improved in all
tion of two captive insurance compa-
branches, both in direct insurance
nies, held in equal parts by ROYALE
and in policies sold through brokers.
BELGE and LA POSTE, gives the
Rationalization
Group direct access to a distribution
operating costs by nearly 1 %. Results
channel destined to become larger.
from Dutch and Luxembourg insu-
remained
dominant.
efforts
reduced
rance activities also improved.
In February 1997, ROYALE BELGE signed a sales co-operation agreement with the future LA FAMILLE-ASSUBEL Group in
The Group's share of consolidated income was BEF 11.3 bil-
order to participate in its development. The latter is expected to
lion, including extraordinary income of BEF 4.2 billion
become the leader in its market.
from capital gains on the sale of TRACTEBEL shares.
In the Netherlands, after taking control of UAP-NIEUW-
Recurring income rose 14.8 % to BEF 7.1 billion, compared to
ROTTERDAM, a newly merged firm, ROYALE BELGE continued
BEF 6.2 billion in 1995. Return on shareholders' equity,
its efforts to restructure its multi-branch business.
which was nearly BEF 62 billion at the end of the year,
With
a view to growing in Northern Europe, ROYALE
was consequently 12.6%. Consolidated unrealized gains on
BELGE acquired the Swedish non-life branch of UAP France.
listed securities and on buildings were BEF 64 billion,
In 1996 this entity had BEF 810 million in turnover and closed
compared to BEF 51.1 billion at the end of 1995 and
the year with a profit of nearly BEF 37 million.
BEF 28 billion at the end of 1994.
Contribution to :
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
Equity
50,052
51,696
56,436
61,899
Premium income
69,759
75,123
4,875
5,505
6,176
11,315
Earnings per share (BEF)
305
344
386
708
Gross dividend per share (BEF)
215
236
260
360
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
98
3.9
452
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
2,465
97.3
4,013
109,353 112,436
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.8 158.4
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
Banque Bruxelles Lambert Based on its total assets, BBL is one of the ten largest banks in Benelux and one of Belgium's largest banking institutions.
It is active in three main activities : banking services to individuals and to companies, financial markets banking activities and international banking. It acts as a local bank in its domestic market through its 20 regional offices, 960 traditional branches and 300 Self’ Banks. It provides insurance, leasing, factoring and travel services through specialized entities.
BBL's international strategy has three components:
operation agreement with VYSYA BANK (India), opened a
• extending the local bank concept to neighbouring countries
subsidiary in Labuan (Malaysia), an office in Dublin (Ireland),
(Germany, France, Luxembourg, the Netherlands and the
acquired an 11 % interest in AMERBANK (Poland), became
United Kingdom);
present in the Czech Republic (PATRIA FINANCE) via MC-BBL
• a direct presence in the largest financial centres (London,
EASTERN HOLDINGS and opened representative offices in
New York, Singapore and Hong Kong);
Moscow and Johannesburg. In 1996, the foreign network
• a network of more than 5,000 correspondent banks world-
accounted for 38.9% of consolidated net income, compared with
wide.
27.9% in 1995;
The turnaround which began at the end of the 1991-1992
• as for financial markets, the Bank created BBL ASSET
business year continued in Belgium and abroad:
MANAGEMENT SINGAPORE Ltd, an asset management
• in Belgium, the Bank carried on with its "Network 2000"
company for BBL unit trusts invested in South-East Asia.
pluriannual plan, which is aimed at transforming all of its oper-
Moreover, BBL FRANCE took a majority interest in FERRI S.A.,
ating offices into business units focused on commercial activity.
one of the largest brokerage firms in Paris.
These favourable developments produced a consolidated
It also continued setting up "main branches" with greater authority in terms of
net income of BEF 10,291
loans, international trade
million, compared with
and financial transac-
BEF 8,941 million the
tions;
previous year (i.e. a rise
• internationally, the
of 15.1 %). Income per
Bank
its
share rose 11.7%, from
network: it signed a co-
BEF 472.6 to BEF 527.9.
enlarged
Contribution to :
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
67,578
71,671
79,686
89,381*
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
Interests and similar revenue
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0.0
149
0
0.0
1,905
179,717 202,603 214,925
Net profit (Group share)
6,733
7,753
8,941
10,291
Earnings per share (BEF)
368.4
409.8
472.6
527.9
Gross dividend per share (BEF)
195.3
215.5
233.3
253.3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
198,122
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.9 75.2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
* including BEF 2,287 million allocation to Provisions for Banking Risks
52
Bernheim-Comofi
BERNHEIM-COMOFI is a real estate group active in five businesses: real estate development (Belgium, Budapest, Berlin and Prague), ownership and operation of public parking lots, ownership and operation of self-storage businesses, real estate securitization and provision of building sites. The loss of confidence in real estate investments following
The first year of operations at BEFIMMO SICAFI, in which
the crises affecting most European capitals and historically low
BERNHEIM-COMOFI has a 33.9% share, was favourable;
inflation levels have postponed any recovery in the market.
its building portfolio was worth BEF 6.7 billion at 31 December
The postponement of the German government's move to
1996.
Berlin destabilized the local market in a way which is expected
The BERNHEIM-COMOFI Group acquired a 50% interest in
to affect, for the medium-term, the profits on real estate invest-
ISM in order to develop its self-storage business (rental of small
ments made on large scale since the fall of the Wall. The
secured storage areas to individuals, merchants and companies)
BERNHEIM Group therefore decided to book a BEF 375 million
in continental Europe. The Group decided to open its first site
provision for the expected cash-drain of its Berlin projects.
in Dusseldorf.
The
Group's other real state development activities are
As
far as securitization is concerned, assets under
going according to plan: the buildings in Prague and Budapest
management totalled BEF 14.7 billion for an issued value of
are fully rented; in Brussels, the projects at Avenue de
BEF 11.2 billion.
Cortenbergh, Boulevard de la Plaine, Rue Joseph II and Avenue
Business in the development plot sector was down as a
des Communautés have begun.
result of delays in obtaining new permits.
INTERPARKING, in which BERNHEIM-COMOFI has a 50%
The provisions for the projects in Berlin and the lack of
interest, continued its expansion strategy in the countries in
strength in the real estate market led the Group to show a loss
which it operates. At the end of 1996, the firm managed
of BEF 160 million in 1996. The Group is expected to return to
211 parking lots and more than 100,000 parking spaces, after
profitability in 1997.
the purchase of CODEPARC in France.
Contribution to :
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
Equity
4,361
4,470
4,586
4,132
Turnover
1,921
1,030
431
199
443
400
426
(160)
149.8
135.5
144.1
(54.3)
87.5
94.3
100.0
100.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
64
2.5
-45
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
-1.8
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
1,083
42.7
1,313
51.8
Earnings per share (BEF)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross dividend per share (BEF)
53
AXA - UAP Preliminary remark : as the merger between AXA and UAP had not yet taken place on the 31 december 1996, the comment presented below relates to UAP only.
The UAP Group earns most of its turnover from insurance. It is also active in banking through its 100 % subsidiary Banque WORMS and its interest in the capital of BNP.
In
premium contributions in France. Non-Life insurance turnover
France, where it realizes about 40% of its turnover,
rose by 3.2%. Total turnover in Reinsurance and Financial
the Group is active in all branches of insurance.
Outside
Services - Holding companies (mainly Banque WORMS in
of France, the Group's activities are organized
around four profit centres:
France, the IPPA bank in Belgium and KÖLNISCHE
• in Central and Eastern Europe around COLONIA KONZERN
BAUSPARKASSE in Germany) was FRF 11.5 billion.
At the end of 1996, AXA and UAP announced their plans
(CKAG); • in Benelux, around ROYALE BELGE, the second largest
to merge to form the world's second largest insurance company
insurer in Belgium;
and the largest asset management company.
The
• in Great Britain and Ireland, around SUN LIFE, one of
accounts of the UAP Group, prepared in view of
the largest British life insurance companies, in which UAP
the merger with AXA, include extraordinary negative items of
retains a 60% interest, after the listing on the London Stock
FRF (7,585) million:
Market of 40% of its capital in 1996, and PROVINCIAL
• as a result of the UAP Group ceasing to exist: deconsolidation
INSURANCE, a damage insurance company;
of BNP, provisioning of real estate companies and cancellation
• other countries and related activities (assistance, European
of positive deferred taxes for FRF (3,842) million;
life insurance, coverage of large corporate risks and transport
• the re-valuation of asset and liability items in life insurance
insurance).
and damage insurance in France, damage insurance in Italy
Consolidated
and Banque WORMS for FRF (3,743) million.
turnover (Insurance and Reinsurance,
Given
Financial Services and Holding companies) was FRF 163.5 bil-
a net profit (excluding extraordinary items) of
lion, down 3.4% from 1995 as a result of the deconsolidation of
FRF 1,139 million, the Group's share of net income was
SCOR, its reinsurance subsidiary and the sale of two German
FRF (6,446) million in 1996, compared to FRF (2,065) million
subsidiaries. On a comparable basis,
in 1995. UAP will not pay a dividend
this figure rose 1.8%.
for the 1996 financial year. The UAP
Consolidated
from
shareholders having brought their
Insurance in 1996 was FRF 152 bil-
shares to the AXA offer in 1997
lion, almost equally divided between
will receive a FRF 7.5 dividend
Life and Non-Life. Life rose 5.3 %,
per AXA-UAP share, equivalent to a
with the recovery of the British
FRF 3.0 dividend per UAP share.
turnover
market offsetting the fall in single
Contribution to :
Consolidated key figures (FRF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
33,649
40,386
35,624
32,024
141,480
151,606
157,644
152,548
1,423
1,568
(2,065)
(6,446)
Earnings per share (FRF)
5.5
5.3
(6.7)
(19.1)
Dividend per share (FRF)
3.0
3.0
3.0
-
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity (before allocation)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
Premium income
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0.0
19
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.7
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
0
0.0
810
32.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54
Imétal
The IMÉTAL Group has three core industrial areas : building materials (terracotta tiles, bricks, slates and industrial ceramics), industrial minerals (kaolin, refractory fire clay, and clay for ceramics and porcelain) and metals processing (structural and mechanical tubes and bimetal wires). had a good year in 1996 despite unfavourable
The stability of turnover in Building Materials, excluding
economic and climatic conditions in most of the Group's busi-
IMÉTAL
the effect of the variation of perimeter resulting from the decon-
nesses. Turnover was FRF 8,100 million, a 4.7% rise over 1995
solidation of the tile business and the acquisition of LOMBA,
and stability on a constant group perimeter and exchange rate
a manufacturer of technical ceramics, reflected this branch's
basis.
resistance to difficult economic and climatic conditions in the
IMÉTAL
continued its dynamic internal and external
French construction sector.
growth in its three businesses, with, in particular the opening
Sales in the Metals Processing branch rose by 1.9%, but fell
of four new terracotta factories and new acquisitions in tech-
by 1.4% on a constant perimeter and exchange rate basis.
nical ceramics and industrial minerals. Moreover, the Group
Business was strong in mechanical tubes, although prices were
completed its exit from non-strategic activities, including the
down overall. Sales of bi-metallic wires for the telecommunica-
sale of the remainder of its interest in ERAMET and a petro-
tions market continue to show strong growth.
T he
leum products trading business.
Group's share of net current income was
In 1996, most of the growth and improvement in results
FRF 606 million, up 10% over 1995. In view of extraordinary
was due to Industrial Minerals. This branch benefited from a
income of FRF 8 million, the result of capital gains on the sale
robust refractory market and its
of assets offset by the negative impact
strategic reinforcement with the
of allocations to provisions and extra-
acquisition of GEORGIA MARBLE in
ordinary charges, the Group's share of
the United States at the end of 1995
net income was FRF 614 million,
and PLIBRICO, a European refractory
compared to FRF 596 million in
manufacturer, in 1996.
1995.
Contribution to :
CONSOLIDATED KEY FIGURES (FRF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
Equity
4,672
5,038
5,329
5,800
Turnover
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0.0
310
0
0.0
5,759
7,510
7,737
8,100
294
550
596
614
Earnings per share (FRF)
24.4
41.8
40.3
41.3
Dividend per share (FRF)
10.5
12.5
14.5
16.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
6,291
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12.2 227.3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56
ACP
ACP is the market leader in Belgium for carbon dioxide in its various forms (bulk, bottled and as dry ice) and is also active in neighbouring countries. ACP holds 100% of ANTWERP GAS TERMINAL (AGT), a company that operates a gas discharge, storage and distribution terminal in the port of Antwerp.
The C0
business was fair in 1996, although bulk volumes
the considerable demand for CO2 in the summer and to aim its
fell slightly from 1995 levels, which had been favourably influ-
sights at a more geographically diversified market (France and
enced by a hot summer. Dry ice turnover was relatively stable,
Southern and Eastern Europe).
2
AGT's
as was bottling turnover, despite weakness in the hotel, restau-
profitability continued to improve in 1996; this
company contributed BEF 100 million to ACP's consolidated
rant and cafe sector.
ACP decided to invest in a new liquid CO
2
results.
plant at the
Tertre site in Belgium. This unit will have a yearly production
ACP is confident about its future developments and will
capacity of 120,000 tons and will be operational as of the begin-
propose to the next Annual General Meeting the payment of
ning of 1998. This additional capacity will enable ACP to satisfy
dividends amounting to BEF 100 million.
Contribution to :
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
Equity
2,542
2,601
1,243
1,330
Turnover
1,178
1,084
1,119
1,159
Net profit (Group share)
1,089
74
132
201
-
-
1,482
100
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0.0
53
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
580
22.9
580
22.9
Dividends
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57
Hélio Charleroi
HELIO CHARLEROI is active in the magazine, catalogue and advertising brochure printing business. In addition to HELIO COLOR, ROTOCALCO and HELIO CORBEIL which belong to the HACHETTE Group, its plant is part of a group of four heliogravure companies which are present throughout Europe. HELIO CHARLEROI is 50 % held by GROUPE JEAN DUPUIS and 50 % held by HACHETTE FILIPACCHI PRESSE. After a transition period marked by an increase in volume
health while reducing its indebtedness by BEF 184 million, a pace which exceeded original forecasts.
and production interruptions brought about by the tuning of the
Pre-tax
additional press installed at the end of 1994, 1996 saw more
income, up for the fifth straight year, was
regular and harmonious use of the new investment and, as a
BEF 99 million compared to BEF 49 million in 1995. This result
result, the resumption of growth in business volume and
was reached despite accelerated amortization on new invest-
productivity gains; value added rose 3% over 1995.
ments, which had a negative effect on pre-tax income of some
Armed with a high-tech tool, as well as a latest generation
BEF 70 million, as well as provisions of BEF 20 million for major repairs.
filmless engraving machine added at the end of 1995, HELIO CHARLEROI consolidated its market share and financial
Contribution to :
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
183
192
230
329
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
Turnover
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
8
0.3
31
157
6.2
175
1,507
2,229
2,016
5
20
49
81
Dividends
-
-
-
-
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
1,553
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2 6.9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58
Orior Holding The ORIOR Group currently holds four main investments : • an agri-food business, with some of the leading companies in the Swiss market ; • Groupe STERN, which is present in top-of-the-line watch components ; • a real estate portfolio ; • net treasury, not allocated to industrial activities, of some CHF 46 million. ORIOR HOLDING's considerable purchases of interests in
Despite a generally unfavourable environment (fall in
other companies during the year increased its presence in the
household consumption in Switzerland, lower sales in the
industrial sector.
meat industry and the crisis of confidence brought about by
ORIOR's interest in the capital of RAPELLI was increased
the mad cow disease), the food group saw its sales grow
from 80% to 100%. Moreover, the Group's share in the capital
1.3 % on a constant perimeter basis and its net consolidated
of FREDAG AG rose from 56.4% at the end of 1995 to 68.0%
operating income remained unchanged from the previous
in 1996. ORIOR's presence in the Swiss market was reinforced
year (CHF 12.4 million).
by the acquisition of RIEDER. This investment enabled the food
The Group's share of net consolidated operating income
group to consolidate its market share in the pork pastry and
was CHF 10.1 million, up 30 % from the previous year. All of
fresh pasta markets while offering interesting industrial
this growth came from the agri-food business, whose contribu-
and commercial synergy possibilities. The 1996 business year
tion, given the year's acquisitions, was CHF 10.5 million
saw the beginning of the involvement in China, with the launch
compared to CHF 7.1 million in 1995.
The Group's share of the net consolidated income of ORIOR
of a project to build a factory specialized in the processing of
was CHF 6.8 million (1995: CHF 12.4 million), after accounting
poultry products, which will open in the second half of 1997.
ORIOR's
intervention strategy was materialized by the
for non-operating and net extraordinary items.
taking of a 71.3% interest in the capital of STERN COMPAGNIE
The payment of a dividend of CHF 33 per share will be
S.A., the parent company of a Geneva-based group which
proposed to the Annual General Meeting (i.e. a total distribu-
manufactures top-of-the-line watch dials and components. This
tion of CHF 7.1 million). This dividend represents a 70 % pay-
commitment, made in collaboration with management and with
out ratio in relation to the year's consolidated net operating
a syndicate of banks, represents an investment in capital and
income.
loans of CHF 15.3 million.
Contribution to :
Consolidated key figures (CHF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
147.5
162.3
178.5
178.1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0.0
30
0
0.0
1,025
15.7
19.8
12.4
6.8
Earnings per share (CHF)
78.6
98.4
57.4
31.4
Gross dividend per share (CHF)
30.0
32.0
33.0
33.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2 40.4
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
60
Suzy
At the beginning of 1997, NPM/CNP acquired the SUZY Group. Until that time, this Group, active in the waffle and biscuit sector, belonged to GRAND METROPOLITAN.
The SUZY Group is active through three entities:
players in the market. Its efforts are focused in exporting and
• SUZY (located in Buizingen, Belgium) manufactures and sells
the company has considerable turnover in France and in the
waffles under its own brand and for mass distribution.
United States.
The SUZY brand, the only well-known brand in the waffle
• DRIEHOEK (located in Alkmaar, the Netherlands) makes
sector, began its turnaround four years ago and currently has
several types of industrial pastries (cakes, "kano's," etc.),
a market share of roughly 20%. The company will continue
mainly for mass distribution. A small part of its production is
handling the distribution in Belgium of the HAAGEN DAZS and
sold under its own brand name.
Results
GREEN GIANT products for the next two years.
for 1996 were not meaningful, as they were
• DESOBRY (located in Tournai, Belgium) manufactures biscuit
affected by charges which were not directly related to
assortments for distributor brands and is one of the largest
operations.
Contribution to :
Consolidated key figures (BEF millions) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
n.a.
n.a.
n.a.
51
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1.446
n.a.
n.a.
n.a.
(27)
Dividends
n.a.
n.a.
n.a.
-
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
Turnover
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
n.a. n.a.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
61
1996
CLT-UFA Under the terms of an agreement signed between AUDIOFINA and Germany's BERTELSMANN, the third largest communication group world-wide, CLT combined in January 1997 its own audio-visual interests and activities with all those of UFA, BERTELSMANN's audio-visual subsidiary. The new CLT-UFA entity, now held equally by AUDIOFINA and BERTELSMANN, is the largest private commercial radio and television operator in Europe. This
alliance, which took effect at 13 January 1997,
The contribution of UFA's 37.5% interest in PREMIÈRE, number
signals the birth of the first audio-visual European group with
one in pay TV in Germany, also consolidated the Group's posi-
interests in 19 television stations and about 20 radio stations in
tion in Europe's largest market.
In France, a difficult market, RTL maintained its market
10 European countries.
In 1996, advertising revenues at the M6 television station
share and came in first place among French multi-topic radio
grew faster than those of any other station in France and M6
stations for the 15th consecutive year. The Group, also present in
obtained a 12.5% market share. In Germany, RTL TELEVISION,
FUN RADIO and in RTL2, increased its interest in the later from
of which 89% is held by the CLT-UFA Group, saw profits rise
46.6% to 100%.
In Germany, the 1997 contribution by UFA of its large local
and its leadership role maintained in Germany.
In
1996, CLT also strengthened its presence in the
and regional radio networks consolidated the Group's position
Netherlands in the HOLLAND MEDIA GROEP (HMG) by increa-
on this market. In the spring of 1996, CLT acquired an interest
sing its interest in the RTL4 station from 47.3% to 60.8%.
in two stations in Sweden, 104.7 RTL and BANDIT 105.5,
In the United Kingdom, having obtained the right to operate the
which in September became leaders in their market.
Start-up
5th and last British television ground network, CLT and its part-
losses and pre-launch expenses incurred by the
ners (UNITED NEWS AND MEDIA, PEARSON and WARBURG
Group's new projects and costs incurred in the closing of CLUB
PINCUS) launched CHANNEL 5 in March 1997.
RTL (the German-speaking pay TV digital television project which
The Group also invested in new markets in Eastern Europe
was abandoned due to the particularly difficult and uncertain
with the December 1996 launch of the Polish-language RTL7
state of the German market) were offset by extraordinary
generalist station, which is broadcasted by satellite and cable.
gains from the sale of the TÉLÉSTAR press group
In addition to its activities in the television advertising
(LUF 6.7 billion) and the sale of the building which used to house CLT's headquarters in Luxembourg (LUF 0.9 billion).
sector, the Group entered the French pay-TV market by
In
participating in the creation and launch last December
1996, the Group's share of estimated net income rose to LUF 3,372 million from
of TPS, a group of digital generalist and topical
LUF 3,335 million in 1995.
stations which also offer interactive services.
Contribution to :
Consolidated key figures (LUF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
Equity (before profit allocation)
12,675
14,550
18,021
23,472
Turnover
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0.0
87
0
0.0
2.632
84,768
91,192
92,766
3,005
3,307
3,335
3,372
Dividends
1,212
1,333
1,437
1,461
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estidmated value at 31.12.1996
75,589
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.4 103.9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63
Éditions Dupuis
ÉDITIONS DUPUIS is the world leader in French-language comic strips, with some 11 million albums sold annually. Starting from its core business, the company has developed its peripheral businesses in audio-visual, licensing and mail order sales. DUPUIS also publishes the Journal de Spirou, the last major weekly comic strip.
The year 1996 was a favourable year for all of ÉDITIONS
the sale of publishing rights, the distribution of other publishers' work and mail order sales- made a significant contribution to
DUPUIS' businesses.
The core business - the publishing of albums and comic
the improvement in the Group's consolidated income, which
strips- maintained its excellent results thanks to the ongoing
in 1996 totalled BEF 77 million, up BEF 15 million over 1995,
enlargement of its catalogue of 1,200 titles by 60 to 70 new
despite the fact that MEDIATOON start-up losses weighed down
titles annually and as a result of its wide-ranging sales efforts,
income by some BEF 20 million. The latter, in which ÉDITIONS
tailored to each of the various markets and collections.
DUPUIS holds a 100 % interest since January 1997 following
In 1996, the HUMOUR LIBRE collection -which, as its name
the purchase of ASTRAL's shares, intends to build a portfolio
suggests, is more specifically geared to humour- was created.
of cartoon series in order to improve the presence of DUPUIS
Journal de Spirou sales rose sharply and are currently at
catalogue heroes on television screens world-wide; to do so,
about 75,000 copies per issue ; this medium is highly effec-
MEDIATOON is counting on the cartoon production studio
tive as a promoter of both reading and comic strips among its
which ÉDITIONS DUPUIS has created in Paris.
As
young audience.
The
a result of its profit growth and diversification
diversification efforts undertaken by ÉDITIONS
strategy based on a catalogue of great comic strips, ÉDITIONS
DUPUIS to diversify beyond the frontiers of its core business -
DUPUIS looks to the future with confidence. The year's divi-
such as the licensing and publishing of multimedia products,
dend was raised to BEF 75 million.
Contribution to :
Consolidated key figures (BEF million) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
Equity (before profit allocation)
1,022
686
692
762
Turnover
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
12
0.5
42
381
15.0
424
1,637
1,675
1,799
59
86
62
77
Dividends
28
30
36
75
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
1,454
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.7 16.7
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
Artemis
The ARTEMIS Group acts as trader and investor in high-quality works of art (paintings, drawings and engravings of modern and old masters, antiques). ARTEMIS operates among an established clientele of museums and international private collectors and acts on its own account and/or in association with other galleries, dealers or reputable experts.
The Art Market has again been through an uneven year.
The
The sales from stock were not as numerous as they should be
Group's interest in Antiquities is represented by
ROBERT HABER & ASSOCIATES in New York. This market has
and were down 35 % to USD 8.5 million. These included a
been very slow but the New York Fair in the autumn produced
superb painting by Burne-Jones sold to the Dallas Museum of
a satisfactory result. However, there does not appear to be any
Fine Arts and a wonderful flower painting by Ambrosius
sign of a resurgence in activity.
Bosschaert the Elder sold to a private collector in America.
ARTEMIS increased its office space in New York and now
However, ARTEMIS was entrusted with the sale of important
houses both C.G. BOERNER and itself in the new premises.
paintings on commission, of which a magnificent still-life by
The first exhibition of Roman Views held in the 1996-97 finan-
Cézanne, the most expensive work ever sold by ARTEMIS,
cial year sold well. At the same time, the space in London has
bought by the Getty Museum. These commissions contributed
been reduced by letting off one and a half floors of the building
most significantly to the result of the year with a total of USD
in Duke Street.
The
1.9 million, compared to USD 0,2 million last year.
operating result for the Group was a profit of
The Group purchase of C.G. BOERNER has continued to
USD 336,522 before the write-down of the London properties to
contribute significantly to the Group's results. Some important
their market value. After this USD 1.7 million write-down, the
prints and drawings were sold during the year and special
loss was USD 1,565,121. No dividend was decided by the
mention must be made of two rare sets of German romantic
Annual General Meeting.
prints which were sold to museums in Chicago and Milwaukee.
Contribution to :
Consolidation key figures (USD thousand) Restricted consolidation
Consolidation (transitive)
1993
1994
1995
1996
57,947
57,607
52,377
50,735
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mio BEF
BEF/share
Mio BEF
BEF/share
Turnover
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating result 1996
0
0.0
0
234
9.2
234
12,335
13,161
8,504
254
551
(5,235)
(1,565)
Earnings per share (USD)
0.27
0.58
(5.49)
(1.64)
Gross dividend per share (USD)
1.00
1.00
0
0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated value at 31.12.1996
8,873
Net profit (Group share)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.0 9.2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65
NPM/CNP NATIONALE PORTEFEUILLEMAATSCHAPPIJ Compagnie nationale à portefeuille
Financial supplement – Annual Report 1996
66
NPM/CNP NATIONALE PORTEFEUILLEMAATSCHAPPIJ Compagnie nationale à portefeuille
CONSOLIDATED ACCOUNTS
Introduction............................................................................................................................ 68 Consolidated key figures........................................................................................................ 69 Consolidated balance sheets .................................................................................................. 70 Consolidated profit and loss statements ................................................................................ 72 Notes to the accounts ............................................................................................................. 74 Appendix to the consolidated accounts at 31 December 1996 .............................................. 81 Consolidated statement of cash flows.................................................................................... 89 Consolidated statements of cash flows - comments .............................................................. 90 Auditors’ report...................................................................................................................... 91 PARJOINTCO - summary consolidated accounts................................................................. 92 Summarized financial statements of major non-listed shareholdings ................................... 98
67
CONSOLIDATED ACCOUNTS
INTRODUCTION
In accordance with the Royal Decree concerning consolidated accounts and following the agreements signed in 1990 - and extended in 1996 - between the POWER and FRÈRE-BOURGEOIS/NPM-CNP groups, that resulted in the pooling of their holdings in PARGESA, NPM/CNP enlarged the scope of its consolidation by equity accounting for PARJOINTCO (which consolidates PARGESA and thus includes GBL and PARFINANCE) and the shareholdings of at least 20 % in companies held by the Group. However, the company continues to publish restricted consolidated accounts that fully consolidate fully owned financial companies, AGESCA NEDERLAND (89.54 % held) and its subsidiary N.F. ASSOCIATES and proportionally consolidate the statutory accounts of PARJOINTCO, GROUPE JEAN DUPUIS and CENTRE DE COORDINATION DE CHARLEROI, jointly controlled. The restricted consolidated accounts thus include, other than the results of financial integrated companies, only the dividend flows (compared to the results in the consolidated accounts) as far as PARGESA and the more than 20 % held companies are concerned (ACP, ARTEMIS - until 1995 - , BERNHEIM-COMOFI, ÉDITIONS DUPUIS, HELIO CHARLEROI, PETROFINA, ROYALE BELGE, SCI & ASSOCIÉS - until 30 June 1996 - and TRANSCOR). The following should be noted : · As regards the holding of 49 % in SCI & ASSOCIÉS acquired in June 1994, only the results of the second half year were included in the 1994 consolidated accounts. This shareholding was sold at the beginning of the 2nd half year of 1996 with effect on 1 January 1996. In the financial statements as of 30 June 1996, SCI & ASSOCIÉS was no longer included in the consolidation of the NPM/CNP Group and, consequently, the dividend not eliminated. Following comments from Control Authorities, this accounting practice was modified for the yearly consolidated accounts ; an amount equal to the dividend received was recorded as profit from equity accounted companies and the dividend eliminated ; this did not affect the total profit of NPM/CNP, the only change being a reclassification from dividend to profit from equity accounted companies. · The representatives of NPM/CNP at the Board of Directors of ARTEMIS have decided not to solicit the renewal of their mandates at the Annual General Meeting ; consequently, NPM/CNP is no longer in a position to influence the management of ARTEMIS and this shareholding has no longer been equity accounted since 1996. · GROUPE JEAN DUPUIS, the holding company of the Group of the same name, was not included in the restricted consolidation in 1994 but only in the consolidated accounts. In 1995 a co-ordination centre was established, providing services to GROUPE JEAN DUPUIS, further integrating its administrative management with that of other group companies ; it was therefore judged opportune and more in line with the real control exercised by NPM/CNP to include this company in the restricted consolidated accounts from 1995 onwards.
68
CONSOLIDATED ACCOUNTS
CONSOLIDATED KEY FIGURES (BEF thousands except for data per share)
Consolidated accounts 1996
Restricted consolidated accounts
1995
1994
1996
1995
1994
EQUITY - total
55,556,575
52,172,585
52,591,496
54,227,614
52,693,654
53,071,313
- Group share
53,486,338
50,526,275
50,982,588
52,588,592
51,350,577
51,727,206
2,070,237
1,646,310
1,608,908
1,639,022
1,343,077
1,344,107
- minority interests NET PROFIT - total
5,253,325
2,451,973
3,479,222
3,881,119
2,152,229
2,865,014
- Group share :
5,082,664
2,363,655
3,387,882
3,826,174
2,100,296
2,810,443
3,239,280
2,616,402
2,589,112
2,406,590
148,602
1,209,772
·
operating income
3,935,461
3,604,356
·
capital result
1,147,203
(1,240,701)
including amortization of goodwill (transitively) (1)
- minority interests GROSS DIVIDENDS
NUMBER OF SHARES IN ISSUE
(821)
(488,816) -
403,853
(769,204)
(403,248)
(460,935)
-
170,661
88,318
91,340
54,945
51,933
54,571
2,584,680
2,552,188
2,485,826
2,584,680
2,552,188
2,485,826
25,340,000
25,340,000
25,340,000
25,340,000
25,340,000
25,340,000
ADJUSTED DATA PER SHARE (BEF thousands) - operating income - capital result including amortization of goodwill (transitively) (1)
155.31
142.24
127.84
103.25
102.17
94.97
45.27
(48.96)
5.86
47.74
(19.29)
15.94
(30.36)
(15.91)
(18.19)
(0.03)
-
-
- earnings per share
200.58
93.28
133.70
150.99
82.88
110.91
- gross dividend per ordinary share
102.00
100.00
98.00
102.00
100.00
98.00
(1) Includes amortization of goodwill by NPM/CNP as well as NPM/CNP’s transitive share in the amortization of goodwill recorded by its financial subsidiaries and by PARJOINTCO, PARGESA, GBL, PARFINANCE and the sub-holdings controlled by those groups.
69
CONSOLIDATED ACCOUNTS
CONSOLIDATED BALANCE SHEETS (BEF thousands)
ASSETS
FIXED ASSETS I. II. III. IV.
V.
Formation expenses Intangible assets Goodwill Tangible fixed assets A. Land and buildings B. Plant, machinery and equipment C. Furniture and vehicles D. Leasing and other similar rights E. Other tangible assets F. Assets under construction and advance payments Investments A. Equity-accounted companies 1. Shares 2. Bonds B. Other companies 1. Stocks and shares 2. Bonds and other amounts receivable
CURRENT ASSETS VI.
Amounts receivable after more than one year A. Trade receivables B. Other receivables VII. Stocks and contracts in progress A. Stocks B. Contracts in progress VIII. Amounts receivable within one year A. Trade receivables B. Other receivables IX. Short-term investments A. Own shares B. Other investments and deposits X. Cash at bank and in hand XI. Deferred expenses and accrued income
TOTAL ASSETS
Consolidated accounts
Restricted consolidated accounts
1996
1995
1994
1996
1995
1994
46,390,729
49,787,068
50,678,292
45,244,680
50,441,983
51,271,233
1,998,161 220,486 20,541 17,323 -
2,199,310 76,737 28,539 9,032 -
2,505,931 14,200 10,849 -
220,689 20,541 17,526 -
76,986 28,539 9,281 -
14,505 11,154 -
182,622 44,172,082 32,424,814 32,349,814 75,000 11,747,268 11,747,262 6
39,166 47,511,021 35,151,974 33,303,978 1,847,996 12,359,047 12,359,040 7
3,351 48,158,161 35,236,325 33,463,329 1,772,996 12,921,836 12,921,766 70
182,622 45,023,991 45,023,991 44,948,985 75,006
39,166 50,364,997 50,364,997 48,516,994 1,848,003
3,351 51,256,728 51,256,728 49,483,662 1,773,066
23,464,663
13,423,037
12,842,227
23,520,320
13,498,005
12,782,204
9,201,745 7,023 9,194,722 7,006,513 872,095 6,134,418 7,161,654 94,751
3,577,524 7,045 3,570,479 6,050,957 6,050,957 3,633,138 161,418
3,390,131 3,390,131 7,622,497 7,622,497 1,708,427 121,172
9,070,976 7,023 9,063,953 7,189,652 872,095 6,317,557 7,164,153 95,539
3,579,505 7,045 3,572,460 6,079,693 6,079,693 3,677,372 161,435
3,305,046 3,305,046 7.622.511 7,622,511 1,733,213 121,434
69,855,392
63,210,105
63,520,519
68,765,000
63,939,988
64,053,437
70
CONSOLIDATED ACCOUNTS
CONSOLIDATED BALANCE SHEETS (BEF thousands)
LIABILITIES AND EQUITY
Consolidated accounts
Restricted consolidated accounts
1996
1995
1994
1996
EQUITY
53,486,338
50,526,275
50,982,588
52,588,592
I.
4,751,250 4,751,250 4,751,250 4,751,250 4,751,250 4,751,250 42,824,428 42,824,428 42,824,428 8,627,375 6,129,391 6,317,924 226,029 222,231 221,811 (2,942,744) (3,401,025) (3,132,825) -
Share capital A. Issued capital B. Uncalled capital II. Share premium account III. Revaluation reserves IV. Reserves V. Negative goodwill VI. Translation adjustments VII. Investment grants
1995
1994
51,350,577 51,727,207
4,751,250 4,751,250 4,751,250 4,751,250 4,751,250 4,751,250 42,824,428 42,824,428 42,824,428 4,945,187 3,703,693 4,155,585 149,459 149,459 72,884 (81,732) (78,253) (76,940) -
MINORITY INTERESTS
2,070,237
1,646,310
1,608,908
1,639,022
1,343,077
1,344,107
VIII. Minority interests
2,070,237
1,646,310
1,608,908
1,639,022
1,343,077
1,344,107
PROVISIONS AND DEFERRED TAXATION
41,500
303,357
58,107
41,500
269,250
24,000
IX.
41,500 41,500 -
303,357 303,357 -
58,107 21,500 36,607 -
41,500 41,500 -
269,250 269,250 -
24,000 21,500 2,500 -
LIABILITIES
14,257,317
10,734,163
10,870,916
14,495,886
X.
Amounts payable after more than one year A. Financial liabilities 1. Subordinated loans 2. Unsubordinated debentures 3. Finance leasing liabilities 4. Amounts due to financial institutions 5. Other loans B. Trade payables 1. Suppliers 2. Notes payable C. Advances received on contracts in progress D. Other liabilities XI. Amounts payable within one year A. Current portion of long-term debt B. Financial debts 1. Amounts due to financial institutions 2. Other loans C. Trade payables 1. Suppliers 2. Notes payable D. Advances received on contracts in progress E. Taxes, salaries and social charges payable 1. Taxes 2. Salaries and social charges F. Other liabilities XII. Accrued expenses and deferred income
3,273,750 3,273,750 3,273,750 10,737,303 7,662,381 1,462,116 6,200,265 47,852 47,852 114,170 108,775 5,395 2,912,900 246,264
3,273,750 3,273,750 3,273,750 7,139,612 4,238,123 1,338,123 2,900,000 24,586 24,586 53,786 48,954 4,832 2,823,117 320,801
3,273,750 3,273,750 3,273,750 7,207,836 20,000 4,621,303 1,521,303 3,100,000 1,540 1,540 72,907 72,398 509 2,492,086 389,330
3,493,032 3,493,032 3,273,750 219,282 10,742,200 7,664,054 1,462,116 6,201,938 47,852 47,852 117,394 111,999 5,395 2,912,900 260,654
TOTAL LIABILITIES AND EQUITY
69,855,392
63,210,105
63,520,519
68,765,000
A. Provisions for liabilities and charges 1. Pensions and similar obligations 2. Tax provisions 3. Major repairs and maintenance 4. Other liabilities and charges B. Deferred taxation
71
10,977,084 10,958,123 3,510,311 3,510,311 3,273,750 236,561 7,139,607 4,238,123 1,338,123 2,900,000 24,586 24,586 53,786 48,954 4,832 2,823,112 327,166
3,273,750 3,273,750 3,273,750 7,294,582 20,000 4,706,388 1,606,388 3,100,000 1,540 1,540 74,568 74,059 509 2,492,086 389,791
63,939,988 64,053,437
CONSOLIDATED ACCOUNTS
CONSOLIDATED PROFIT AND LOSS STATEMENTS (BEF thousands)
EXPENSES
Consolidated accounts
Restricted consolidated accounts
1996
1995
1994
1996
1995
1994
444,711 155,541 152,436 86,086 79,538 7,249
465,452 283,405 155,420 70,428 79,369 4,362
394,838 101,897 239,418 67,492 58,023 4,269
456,316 156,916 821 86,086 96,522 7,249
475,140 290,532 72,220 83,452 4,362
399,966 102,130 68,798 61,941 4,269
3,003 252,463 249,330 3,133 16,295 15 16,280 105,754 59,219 37,528 5,253,325 170,661 5,082,664
6,241 703,407 556,403 147,004 6,410 17,709 293 3,937 13,479 136,000 29,791 47,997 2,451,973 88,318 2,363,655
8,857 201,370 201,370 53 53 185,244 23,772 3,479,222 91,340 3,387,882
3,049 252,463 249,330 3,133 16,295 15 16,280 105,754 65,970 3,881,119 54,945 3,826,174
6,297 741,234 594,230 147,004 6,410 17,709 293 3,937 13,479 136,000 29,791 2,152,229 51,933 2,100,296
8,942 308,450 107,080 201,370 53 53 167,639 29,726 2,865,014 54,571 2,810,443
TOTAL EXPENSES
6,653,148
4,457,964
4,764,455
5,128,560
4,015,376
4,016,928
Appropriation and transfers C. Transfers to / (from) reserves 1. Consolidated reserves F. Profit to be distributed 1. Dividend to shareholders
2,497,984 2,497,984 2,584,680 2,584,680
(188,533) (188,533) 2,552,188 2,552,188
902,056 902,056 2,485,826 2,485,826
1,241,494 1,241,494 2,584,680 2,584,680
(451,892) (451,892) 2,552,188 2,552,188
324,617 324,617 2,485,826 2,485,826
5,082,664
2,363,655
3,387,882
3,826,174
2,100,296
2,810,443
A. B. B.bis C. D. E. F. G. H. I.
J. K. K.bis L. L.bis L.ter
Interest expense Other financial expense Amortization of goodwill Miscellaneous goods and services Payroll expenses Miscellaneous operating expenses Depreciation and write-off of formation expenses, tangible and intangible assets Write-down on 1. investments 2. current assets Provisions for liabilities and charges Losses on disposal of 1. tangible and intangible fixed assets 2. investments 3. current assets Exceptional expenses Taxes Losses of equity-accounted companies Profit for the period Minority interests in profit Group share of profit
72
CONSOLIDATED ACCOUNTS
CONSOLIDATED PROFIT AND LOSS STATEMENTS (BEF thousands)
REVENUES
Consolidated accounts
Restricted consolidated accounts
1996
1995
1994
575,358 533,414 41,944 663,277 182,514 27,679 44,338
596,138 514,519 81,619 652,176 95,620 26,274 47,003
535,471 500,453 35,018 815,908 152,947 23,282
2,241,655 2,199,711 41,944 668,823 204,249 27,679 44,338
2,579,858 2,498,239 81,619 653,281 95,620 26,274 47,003
16,277 426,403 324,441 101,962 1,080,054 108 849,051 230,895 136,238
35,137 53,291 53,291 2,500 538,995 8,489 530,506 -
16,277 19 19 24,741 937,133 609,683 327,450 -
426,403 324,441 101,962 1,373,408 108 1,142,405 230,895 136,238
53,291 53,291 2,500 538,995 8,489 530,506 -
6 6 24,741 1,014.5 653,877 360,638 -
5,767 3,495,243 -
15,436 2,395,394 -
3,718 2,254,959 -
5,767 -
18,554 -
3,718 -
TOTAL REVENUES
6,653,148
4,457,964
4,764,455
5,128,560
4,015,376
4,016,928
Transfers and appropriations A. Profit available for appropriation 1. Profit for the period
5,082,664 5,082,664
2,363,655 2,363,655
3,387,882 3,387,882
3,826,174 3,826,174
2,100,296 2,100,296
2,810,443 2,810,443
5,082,664
2,363,655
3,387,882
3,826,174
2,100,296
2,810,443
A.
J. K.
Revenue from investments 1. Dividends 2. Interests Revenue from current assets Other financial revenue Revenue from services rendered Other operating revenue Reversals of depreciation or write-off of tangible and intangible assets Write-back of 1. investments 2. current assets Reversals of provisions for liabilities and charges Profits on disposal of 1. tangible and intangible fixed assets 2. investments 3. current assets Exceptional revenue Taxation adjustments and reversals of tax provisions
K.bis L. L.bis L.ter
Profits of equity-accounted companies Loss for the period Minority interest in loss Group share of loss
B. C. D. E. F. G. H. I.
73
1996
1995
1994 1,967,668 1,932,650 35,018 823,606 159,392 23,282
CONSOLIDATED ACCOUNTS NOTES TO THE ACCOUNTS (BEF thousands) ASSETS III. Goodwill This represents the excess of the cost of investments in subsidiaries and equity-accounted companies over the value of NPM/CNP’s share of their net assets on the date of acquisition or initial consolidation and is analysed as follows :
PETROFINA ROYALE BELGE BERNHEIM-COMOFI ACP Total
Gross amounts at 31.12.96 2,403,094 546,152 82,303 786 3,032,335
Cumulative amortization at 31.12.96 (792,078) (214,236) (27,820) (40) (1,034,174)
1996 1,611,016 331,916 54,483 746 1,998,161
Consolidated net amounts 1995 1,730,504 410,202 58,604 2,199,310
1994 1,847,838 595,813 62,280 2,505,931
Goodwill is allocated to the investments to which it is related and is amortized at a rate of 5 % per annum. Additional amortization is provided as appropriate. V.
Investments A.1 Equity-accounted companies - Shares
PARJOINTCO PETROFINA SCI & ASSOCIÉS ROYALE BELGE BERNHEIM-COMOFI ACP TRANSCOR GROUPE JEAN DUPUIS - ÉDITIONS DUPUIS - HÉLIO CHARLEROI - Others ARTEMIS Total
Percentage of ownership 1996 1995 1994 50.00 % 50.00 % 50.00 % 6.46 % 6.46 % 6.46 % 49.00 % 49.00 % 2.35 % 2.69 % 2.92 % 21.69 % 21.69 % 21.69 % 28.32 % 28.12 % 28.12 % 47.59 % 47.59 % 47.59 % 50.00 % 50.00 % 50.00 % 25.00 % 25.00 % 50.00 % 50.00 % 31.14 % 28.92 %
Consolidated accounts 1996 1995 1994 18,966,721 17,757,949 17,411,257 9,204,380 8,438,526 8,433,119 2,504,777 2,307,999 1,594,055 1,629,577 1,624,486 960,140 1,061,437 1,032,431 408,818 353,496 735,355 680,941 596,246 719,332 660,237 380,873 355,625 82,236 57,483 71,650 68,618 480,244 539,113 32,349,814 33,303,978 33,463,329
A.2 Equity-accounted companies - Bonds Consolidated accounts 1996 1995 1994 - SCI & ASSOCIÉS : 2,940,000 bonds (49 %), 4 %, each with a nominal value FRF 100 and redeemable on 20 December 1998 for 10 SCI & ASSOCIÉS shares. - HÉLIO CHARLEROI 10.4 % subordinated loan. Total
74
75,000 75,000
1,772,996 75,000 1,847,996
1,772,996 1,772,996
CONSOLIDATED ACCOUNTS
B.1 Other companies - Stocks and shares This mainly includes :
ACIDE CARBONIQUE PUR ARTEMIS BERNHEIM-COMOFI CAIM COBEPA COMPAGNIE GÉNÉRALE DES EAUX CPC SOFINIM ELF AQUITAINE ESPIRITO SANTO FINANCIAL HOLD. GROUPE JEAN DUPUIS - ÉDITIONS DUPUIS - HÉLIO CHARLEROI HEXANE (L’ÉVENTAIL) PARGESA registered shares PARGESA bearer shares PARIBAS PETROFINA ROYALE BELGE SCI & ASSOCIÉS SOCIÉTÉ GÉNÉRALE DE BELGIQUE TRANSCOR
Number of shares held Consolidated accounts Restricted consolidated accounts 1996 1995 1994 1996 1995 1994 28,316 28,121 28,121 299,592 299,592 296,953 275,748 640,606 640,606 640,606 47,000 47,000 47,000 47,000 1,165,435 1,165,435 1,165,435 1,165,435 1,165,435 1,165,435 1,115,335 1,115,335 1,115,335 1,115,335 1,115,335 1,115,335 29,250 29,250 1,296,695 1,296,695 1,296,695 1,296,695 1,296,695 1,296,695 263,474 2,047,169 2,047,169 263,474 2,047,169 2,047,169 150,000 639,187 639,187 100,000 100,000 210 210 544,694 544,694 544,694 396,250 396,250 396,250 151,514 151,514 151,514 151,514 1,501,078 1,501,078 1,501,078 376,263 429,688 467,900 - 52,432,054 52,432,054 1,689,185 1,689,185 1,689,185 1,689,185 1,689,185 1,689,185 7,439 7,439 7,439
B.2 Other companies - Bonds and other amounts receivable Consolidated accounts 1996 1995 1994 - SCI & ASSOCIÉS : 2,940,000 ORA 4 % 1993-1998 - HÉLIO CHARLEROI 10.4 % subordinated loan - Other amounts receivable Total
Restricted consolidated accounts 1996 1995 1994
-
-
-
-
1,772,996
1,772,996
6 6
7 7
70 70
75,000 6 75,006
75,000 7 1,848,003
70 1,773,066
VIII. Amounts receivable within one year B.
Other receivables
- Tax receivables - Loans to associated companies - Receivables related to shares sold - Others Total IX.
Consolidated accounts 1996 1995 1994 543,110 509,341 501,198 8,329,829 3,025,000 2,669,920 302,842 159,197 18,941 36,138 59,816 9,194,722 3,570,479 3,390,131
Restricted consolidated accounts 1996 1995 1994 543,110 509,341 501,198 8,199,060 3,025,000 2,584,960 302,842 159,197 18,941 38,119 59,691 9,063,953 3,572,460 3,305,046
Short-term investments A.
Own shares At 31 December 1996, the NPM/CNP Group held 479,869 of its own shares for a value of 872,095, with a total nominal value of 89,975. Of these own shares 15,213 were held by NPM/CNP, 184,752 by INVESTOR, and 279,904 by FINGEN. The dividends received on these shares have been eliminated from the (restricted) consolidated accounts.
B.
Other investments and deposits
- Shares and bonds - Cash deposits Total
Consolidated accounts 1996 1995 1994 3,245,024 3,259,746 4,701,490 2,889,394 2,791,211 2,921,007 6,134,418 6,050,957 7,622,497
75
Restricted consolidated accounts 1996 1995 1994 3,428,163 3,288,482 4,701,490 2,889,394 2,791,211 2,921,021 6,317,557 6,079,693 7,622,511
CONSOLIDATED ACCOUNTS
LIABILITIES AND EQUITY I.
Share capital The Board was authorized by the Shareholders’ Meeting of 12 June 1996 to increase the share capital by 2,000,000 and to issue debentures with conversion or subscription rights which could lead to an increase in the share capital of the same amount. The capital increase by 318,750 following the exercise of the warrants currently in issue would be deducted from the authorized capital.
IV.
Reserves This records NPM/CNP’s share of profits transferred to reserves by NPM/CNP, its subsidiaries and equity-accounted companies. Movements on the reserve were as follows :
Opening balance
Consolidated accounts 1996 1995 1994 6,129,391 6,317,924 5,415,868
Restricted consolidated accounts 1996 1995 1994 3,703,693 4,155,585 3,830,968
Profit of the year Dividends
5,082,664 (2,584,680)
2,363,655 (2,552,188)
3,387,882 (2,485,826)
3,826,174 (2,584,680)
2,100,296 (2,552,188)
2,810,443 (2,485,826)
Closing balance
8,627,375
6,129,391
6,317,924
4,945,187
3,703,693
4,155,585
V.
Negative goodwill Negative goodwill is the difference between the cost of investments in subsidiaries and equity-accounted companies and the value of NPM/CNP’s share of the equity of these companies at the date of their acquisition or first consolidation.
VI.
Translation adjustments These adjustments are the result of movements in the exchange rates of currencies in which the accounts of subsidiaries or equity-accounted companies are expressed. They represent the difference between the value on translation of the assets and liabilities of foreign subsidiaries at the closing rate and their net worth at historic rates as well as the difference arising from the balance sheet being translated at the closing rate while the income statement is translated at the average rate for the year. The differences shown mainly relate to PETROFINA (see last table page 77).
VIII. Minority interests The minority interests mainly represent 10.5 % of the capital of AGESCA NEDERLAND. IX.
Provisions for liabilities and charges Consolidated accounts 1996 1995 1994 - Potential compensation to FIBELPAR in case of exercise by ELF AQUITAINE of its put option on NPM/CNP-shares (provision reversed in 1996) - FRF exchange hedging costs (liquidation January 1996) - Provisions for COMPAGNIE GÉNÉRALE DES EAUX put options - VITAL SOGEVIANDES potential losses - Tax provision - Removal costs - Others Total
Restricted consolidated accounts 1996 1995 1994
-
136,000
-
-
136,000
-
-
126,840
-
-
126,840
-
20,000 21,500 41,500
6,410 34,107 303,357
34,107 21,500 2,500 58,107
20,000 21,500 41,500
6,410 269,250
21,500 2,500 24,000
76
CONSOLIDATED ACCOUNTS
X.
Amounts payable after more than one year
- Bonds A (1) - Bonds B (2) - 50 % Group’s share in PARJOINTCO’s borrowing of CHF 18,500,000 (ended 14.07.1999 – 4.875 % rate) Total
Consolidated accounts 1996 1995 1994 1,500,000 1,500,000 1,500,000 1,773,750 1,773,750 1,773,750
Restricted consolidated accounts 1996 1995 1994 1,500,000 1,500,000 1,500,000 1,773,750 1,773,750 1,773,750
3,273,750
219,282 3,493,032
3,273,750
3,273,750
236,561 3,510,311
3,273,750
(1) 30,000 bonds A 6.70 % 1994-1999 each with a nominal value of BEF 50,000 (2) 750,000 bonds B 5.0625 % 1994-1999 each with a nominal value of BEF 2,365 and with 2 warrants attached which can be exercised from 1 to 15 June 1994 to 1999 at BEF 2,365 per share
XI.
Amounts payable within one year B.
Financial debts Consolidated accounts 1996 1995 1994
- Market rate loans from FIBELPAR, ERBE and FRÈRE-BOURGEOIS Group companies - Foreign currency credits covering short-term investments - Others Total F.
Restricted consolidated accounts 1996 1995 1994
6,200,265
2,900,000
3,100,000
6,201,938
2,900,000
3,100,000
1,462,116 7,662,381
1,330,973 7,150 4,238,123
1,510,541 10,762 4,621,303
1,462,116 7,664,054
1,330,973 7,150 4,238,123
1,595,626 10,762 4,706,388
Other liabilities Consolidated accounts 1996 1995 1994 2,584,680 2,552,188 2,485,826 6,398 6,150 6,260 315,930 255,625 5,892 9,154 2,912,900 2,823,117 2,492,086
- Dividends for the year - Dividends relating to prior years - Liabilities related to share purchases - Others Total
Restricted consolidated accounts 1996 1995 1994 2,584,680 2,552,188 2,485,826 6,398 6,150 6,260 315,930 255,625 5,892 9,149 2,912,900 2,823,112 2,492,086
RECONCILIATION OF BALANCE SHEET AT 31.12.96 (RESTRICTED CONSOLIDATED ACCOUNTS - CONSOLIDATED ACCOUNTS) Other companies stock and shares
Other assets and liabilities of PARJOINTCO
44,948,985
182,699
(15,535,950) (579,679) (920,793) (300,565) (25,220) (13,718,132) (1,741,541) (325,521) (54,322)
(182,699)
Effect of equity accounting
(33,201,723 )
(182,699)
Amount in consolidated accounts
11,747,262
Amount in restricted consolidated accounts
Equity-accounted companies : PARJOINTCO/PARGESA (1) ACP BERNHEIM-COMOFI ÉDITIONS DUPUIS HÉLIO CHARLEROI PETROFINA ROYALE BELGE TRANSCOR Others
Goodwill Positive Negative 0
149,459
746 54,483
1,451 22,128 21,271
1,611,016 331,916 31,720
0
Consolidated reserves
Translation adjustments
Minority interests
Equityaccounted companies : shares
4,945,187
(81,732)
1,639,032
0
3,729,885 (171,713) 93,003 58,180 35,745 (620,754) 183,880 356,634 17,328
(547,620) 147 827
431,205
18,966,721 408,818 960,140 380,873 82,236 9,204,380 1,594,055 680,941 71,650
(2,281,982) 550 (32,934)
1,998,161
76,570
3,682,188
(2,861,012)
431,205
32,349,814
1,998,161
226,029
8,627,375
(2,942,744)
2,070,237
32,349,814
(1) Relates to PARGESA shares held, in the restricted consolidation, by PARJOINTCO.
77
CONSOLIDATED ACCOUNTS
EXPENSES A.
Interest expense
- On long-term loans - Others Total B.
Consolidated accounts 1996 1995 1994 190,296 190,296 150,653 254,415 275,156 244,185 444,711 465,452 394,838
Restricted consolidated accounts 1996 1995 1994 200,796 195,528 150,653 255,520 279,612 249,313 456,316 475,140 399,966
Consolidated accounts 1996 1995 1994
Restricted consolidated accounts 1996 1995 1994
121,018
251,284
29,628
122,393
244,424
29,628
25,976
26,867
29,442
25,976
26,867
29,442
8,547 155,541
5,254 283,405
10,933 31,894 101,897
8,547 156,916
19,241 290,532
10,933 32,127 102,130
Other financial expense
- Exchange differences on assets and liabilities denominated in foreign currencies - Costs related to the quotation of shares and to the payment of the dividends - Costs related to the purchase of options issued on shares (1) - Others (2) Total
(1) The income generated by these being included in other financial revenue (2) Mainly relates to costs of buying and selling securities
B.bis Amortization of goodwill This includes amortization at the rate of 5 % of the goodwill on consolidation arising on the equity accounted companies. In the consolidated accounts of 1994, the goodwill on the ARTEMIS shares (76,438) was fully written off. G.1
Write-down on investments
ARTEMIS ESPIRITO SANTO FINANCIAL HOLD. PARIBAS Others Total
Consolidated accounts 1996 1995 1994 249,330 43,639 308,687 194,077 10,000 249,330 556,403
-
G.2
Write-down on current assets These include the write-downs at year-end on securities included in short-term investments.
J.
Exceptional expenses Consolidated accounts 1996 1995 1994 - Full expenses of the capital increases and the loan note issues - Provision for potential compensation to FIBELPAR in case of exercise by ELF AQUITAINE of its put option on NPM/CNP-shares - Provision for removal costs - Costs relating to the new premises - Others Total
Restricted consolidated accounts 1996 1995 1994 249,330 81,466 107,080 308,687 194,077 10,000 249,330 594,230 107,080
Restricted consolidated accounts 1996 1995 1994
-
-
149,193
-
-
149,193
20,000 56,576 29,178 105,754
136,000 136,000
36,051 185,244
20,000 56,576 29,178 105,754
136,000 136,000
18,446 167,639
78
CONSOLIDATED ACCOUNTS
REVENUES A.1
Revenue from investments - dividends This consists of dividends received from the following companies :
ACP ARTEMIS BERNHEIM-COMOFI COBEPA COMPAGNIE GÉNÉRALE DES EAUX ÉDITIONS DUPUIS ÉDITIONS HEMMA ELECTRAFINA ELF AQUITAINE ESPIRITO SANTO FINANCIAL HOLD. GROUPE JEAN DUPUIS PARGESA PETROFINA ROYALE BELGE SCI & ASSOCIÉS SOCIÉTÉ GÉNÉRALE DE BELGIQUE TRANSCOR Others Total B.
Consolidated accounts 1996 1995 1994 82,903 157,139 170,549 580,374 495,037 645,359 663,277 652,176 815,908
Restricted consolidated accounts 1996 1995 1994 89,549 157,139 170,549 579,274 496,142 653,057 668,823 653,281 823,606
Consolidated accounts 1996 1995 1994 111,547 60,003 78,905 30,630 43,361
Restricted consolidated accounts 1996 1995 1994 133,282 60,003 85,350 30,630 43,361
31,950 8,387 182,514
31,950 8,387 204,249
Other financial revenue
- Exchange gains - Income arising from options issued - Pro rata temporis income from the loan issue premium - Others Total G.1
Restricted consolidated accounts 1996 1995 1994 416,607 8,690 9,904 64,061 60,394 56,115 62,160 58,026 54,309 97,330 93,908 4,931 12,000 21,068 14,018 74,629 130,470 127,117 124,699 32,260 42,076 40,974 12,750 790,283 771,914 718,158 528,379 480,345 420,302 97,828 110,279 100,827 149,768 195,945 193,377 175,955 23,978 114,423 114,189 15,249 15 10,890 2,199,711 2,498,239 1,932,650
Revenue from current assets
- Dividends - Interests Total C.
Consolidated accounts 1996 1995 1994 48 62,160 58,026 54,309 97,330 93,908 4,931 14,018 74,629 130,470 127,117 124,699 32,260 42,076 40,974 195,945 193,377 175,955 15,249 15 10,890 533,414 514,519 500,453
31,950 3,667 95,620
25,294 5,387 152,947
31,950 3,667 95,620
25,294 5,387 159,392
Write-back of investments
- ESPIRITO SANTO FINANCIAL HOLD. - PARIBAS - Others Total
Consolidated accounts 1996 1995 1994 259,301 65,140 19 324,441 19
79
Restricted consolidated accounts 1996 1995 1994 259,301 65,140 324,441 -
6 6
CONSOLIDATED ACCOUNTS
I.2
Profits on disposal of investments
- Disposal of ELECTRAFINA shares - Disposal of ÉDITIONS HEMMA shares - Disposal of PETROFINA shares - Disposal of SCI & ASSOCIÉS - Disposal of ROYALE BELGE shares - Others Total
Consolidated accounts 1996 1995 1994 467,747 101,383 40,553 755,793 85,334 7,924 8,489 849,051 8,489 609,683
Restricted consolidated accounts 1996 1995 1994 488,630 147,077 18,170 1,050,758 91,647 8,489 1,142,405 8,489 653,877
I.3
Profits on disposal of current assets These are the result of a number of trading transactions, mainly in Belgian and French shares and bonds.
J.
Exceptional revenue In 1996, this consists primarily of an exceptional write-back of provisions of 136,000 relating to potential compensation to FIBELPAR in case of exercise by ELF AQUITAINE on FIBELPAR of its put option on NPM/CNP shares. Following the repurchase by FIBELPAR of these shares at market value the provision has become unnecessary.
K.bis Profits/(losses) of equity-accounted companies This includes revenue from the following :
ACP ARTEMIS BERNHEIM-COMOFI GROUPE JEAN DUPUIS - ÉDITIONS DUPUIS - HÉLIO CHARLEROI - Others PARJOINTCO PETROFINA ROYALE BELGE SCI & ASSOCIÉS TRANSCOR Total
Profits Losses
1996 52,969 (37,528) 37,806 20,298 3,032 1,863,094 1,021,124 264,552 149,768 82,600 3,495,243 (37,528)
1995 33,202 (47,997) 89,695 31,851 12,376 3,679 1,085,036 735,012 178,350 204,569 21,624 2,395,394 (47,997)
1994 16,893 2,660 83,938 48,029 1,084,153 647,823 158,623 90,396 122,444 2,254,959 -
RECONCILIATION OF THE CONSOLIDATED PROFIT AND THE RESTRICTED CONSOLIDATED PROFIT (GROUP SHARE) OPERATING Direct contribution PARJOINTCO (PARGESA) ACP BERNHEIM-COMOFI ÉDITIONS DUPUIS HÉLIO CHARLEROI PETROFINA ROYALE BELGE SCI & ASSOCIÉS TRANSCOR Others
Restricted consolidated results
Results of equity accounted companies
707,636 64,061 12,000 7,800 528,379 97,828 183,912 23,978 990,808
1,308,088 52,969 (37,528) 37,806 20,298 1,021,124 264,552 149,768 82,600 3,032
Total
2,616,402
In BEF per share
103.25
2,902,709
CAPITAL
Dividend
Consolidated accounts
Restricted consolidated results
(707,636) (64,061) (12,000) (528,379) (97,828) (149,768) (23,978) -
1,308,088 52,969 (37,528) 37,806 28,098 1,021,124 264,552 183,912 82,600 993,840
91,647 1,050,758 67,367
744,768 -
7,096 (6,313) (294,965) -
(361,541) (39) (4,115) (120,155) (27,305) -
3,935,461
1,209,772
744,768
(294,182)
(513,155)
155.31
47.74
(1,583,650)
80
Results of equity accounted companies
Others
Amortization of goodwill
Consolidated accounts 390,323 (39) (4,115) (120,155) 58,029 755,793 67,367
Total 1,698,411 52,930 (41,643) 37,806 28,098 900,969 322,581 939,705 82,600 1,061,207
1,147,203
5,082,664
45.27
200.58
CONSOLIDATED accountS
APPENDIX TO THE CONSOLIDATED ACCOUNTS AT 31 DECEMBER 1996
(BEF thousands)
I.
Principles, Group structure and methods of consolidation In addition to the consolidated accounts required by the Royal Decrees of 6 March 1990 and 25 November 1991, the Company also publishes restricted consolidated accounts. The latter fully consolidate the results of the parent company and those of fully owned financial companies, AGESCA NEDERLAND (89.54 % held) and its subsidiary N.F. ASSOCIATES (see list at point II below), and proportionally consolidate CENTRE DE COORDINATION DE CHARLEROI, GROUPE JEAN DUPUIS and PARJOINTCO, which are jointly controlled. These restricted consolidated accounts are published for information purposes only ; as they have no statutory nature, no further details are provided in this Appendix. The consolidated accounts which are analysed in this appendix fully consolidate the accounts of the parent company and those of its subsidiaries in which there is a shareholding of 100 %, of AGESCA NEDERLAND and of N.F. ASSOCIATES, proportionally consolidate CENTRE DE COORDINATION DE CHARLEROI and GROUPE JEAN DUPUIS and consolidate by the equity method the accounts of companies in which there is a shareholding, directly or indirectly, of at least 20 %, as well as those of PARJOINTCO, which is jointly controlled. This accounting treatment is intended to better reflect the true picture of the assets of the NPM/CNP Group, with PARJOINTCO fully consolidating PARGESA and therefore the GBL and PARFINANCE Groups. In order to give shareholders a more complete picture of the Group, a summary presentation of the consolidated accounts of PARJOINTCO is included (see pages 92 to 97).
81
CONSOLIDATED accountS
The Group structure at 31 December 1996 can be presented as follows : FRÈRE-BOURGEOIS GROUP
Consolidation
54.5 % 10.5 % Equity
ERBE GROUP
Restricted consolidation
57.1 %
51.0 % Votes (1)
FIBELPAR GROUP 53.5 %
NPM / CNP and consolidated financial holdings 49.0 % Votes (1)
89.5 % Equity
AGESCA NEDERLAND
N.F. ASSOCIATES 50.0 %
PARJOINTCO
(2)
62.7 % Votes
55.0 % Equity
PARGESA HOLDING
47.4 %
GBL and consolidated financial holdings
46.1 %
PARFINANCE
41.0 %
50.0 %
50.0 %
GROUPE JEAN DUPUIS
100.0 %
ACP
50.0 %
28.3 %
ÉDITIONS DUPUIS HÉLIO CHARLEROI
6.5 %
PETROFINA
22.8 %
52.5 %
IMÉTAL
47.6 %
TRANSCOR
47.6 %
74.1 %
ORIOR
2.4 %
ROYALE BELGE
12.9 %
100.0 %
12.4 % 12.4 %
BBL 20.4 %
21.7 %
BERNHEIM-COMOFI
25.7 %
MONUMENT OIL & GAS
97.1 %
CLT
38.0 %
BELGIAN SKY SHOPS
49.0 %
DEWAAY
40.5 %
(1) Agreement between the FRÈRE-BOURGEOIS and NPM/CNP Groups providing equal management control (2) Company jointly held with POWER CORPORATION OF CANADA
82
COMETRA
CONSOLIDATED accountS II.
National identification or VAT number
Fully consolidated subsidiaries
AGESCA NEDERLAND N.V. - Rotterdam CARPAR S.A. - Charleroi COMPAGNIE IMMOBILIÈRE DE ROUMONT S.A.- Charleroi FINGEN S.A. - Luxembourg INVESTOR S.A. - Charleroi N.F. ASSOCIATES N.V. - Rotterdam ORILUX S.A. - Luxembourg SLP S.A. - Charleroi SWILUX S.A. - Luxembourg
441.649.215 455.738.167 426.114.070 429.364.758 -
Percentage of shares held by consolidated equity-accounted subsidiaries companies 89.5 100.0 100.0 100.0 100.0 100.0 (1) 100.0 100.0 100.0
-
(1) 100 % of the ordinary equity is held by AGESCA NEDERLAND N.V.
III.
National identification or VAT number
Proportionally consolidated subsidiaries
CENTRE DE COORDINATION DE CHARLEROI SA Charleroi GROUPE JEAN DUPUIS S.A. - Charleroi IV.
454.199.332 405.630.244 National identification or VAT number
Major equity-accounted companies
ACIDE CARBONIQUE PUR S.A. - Brussels BERNHEIM-COMOFI S.A. - Brussels ÉDITIONS DUPUIS S.A. - Marcinelle ELECTRAFINA S.A. - Brussels GROUPE BRUXELLES LAMBERT S.A. - Brussels HÉLIO CHARLEROI S.A. - Fleurus PARFINANCE S.A. - Paris PARGESA HOLDING S.A. - Geneva PARJOINTCO N.V. - Rotterdam PETROFINA S.A. - Brussels ROYALE BELGE S.A. - Brussels ROYALE VENDÔME S.A. - Brussels TRANSCOR S.A. - Brussels
402.117.062 403.231.968 429.160.563 407.040.209 403.228.010 434.915.138 403.079.441 403.292.346 432.525.869 402.981.550
Percentage of shares held by consolidated equity-accounted subsidiaries companies 52.7 50.0
20.9 50.0
Percentage of shares held by consolidated equity-accounted subsidiaries companies 28.1 21.7 100.0 (1) 50.0 (1) 50.0 6.5 2.4 47.6
60.9 55.9 47.4 87.1 55.0 22.8 51.2 (2) 25.1 47.6
(1) investment held by GROUPE JEAN DUPUIS (2) investment held by ROYALE VENDÔME
V.
National identification or VAT number
Other companies in which there is a shareholding of at least 10 %
ARTEMIS S.A. - Luxembourg HEXANE S.A. - Brussels
451.175.506
Percentage of shares held by consolidated equity-accounted subsidiaries companies 31.4 50.0 (1)
11.7 -
(1) investment held by GROUPE JEAN DUPUIS
For the sake of the clarity and conciseness necessary to give a good overall view of the Group, the above lists are not exhaustive. Subsidiaries controlled by companies included under point IV have been omitted, as they are considered as economically being an integral part of these companies. Also excluded were the entities or Groups in which the companies included under point II do not have any direct shareholding or which are not part of a chain leading to a shareholding accounted for under the equity method. Complete details are available at the Company’s Registered Office and will be filed with the NATIONAL BANK OF BELGIUM together with the consolidated accounts.
83
CONSOLIDATED accountS VI.
Accounting policies The accounting policies applied in the preparation of the consolidated accounts are the same as those which apply to the statutory accounts (cf. point XX of the Appendix to the annual accounts). As allowed by the Royal Decree of 6 March 1990, financial statements of equity-accounted companies or groups have not been restated, except where the accounting policies applied in these accounts are incompatible with those laid down by Belgian law and European Directives. ·
Intercompany balances are eliminated ; the Group’s share of intercompany profits earned from both subsidiaries and equity-accounted companies is eliminated.
·
The assets and liabilities of foreign companies are translated using the closing rate method ; the income statements of these companies are converted at the average rate for the year as published by the NATIONAL BANK OF BELGIUM.
·
Goodwill is the difference on consolidation calculated when a company is included in the consolidation for the first time. For those companies falling within the restricted consolidation, where positive goodwill arises, it is as far as possible allocated to the individual assets which justified the payment of the premium. If no such allocation can be made it is fully written off in the year in which it arises. Positive goodwill on equity-accounted companies is amortized at 5 % per annum. The Board of Directors believes that amortizing goodwill over 20 years corresponds more closely to economic reality (goodwill is paid in the expectation of future profits) rather than the 5 year limit suggested by the Royal Decree. Extraordinary amortization is made when the Board considers that the goodwill is overstated. Negative goodwill is reported as a component of the shareholders’ equity and remains there for as long as the shares to which it relates stay within the Group.
VII.
VIII.
IX.
Statement of formation expenses Opening net book value Movements in the year - additional costs incurred - amounts written off
-
Closing net book value
-
-
Statement of intangible assets Opening net book value Movements in the year - additional costs incurred - amounts written off
-
Closing net book value
-
-
Statement of tangible fixed assets Land and buildings a)
c)
Acquisition cost Opening balance Movement in the year - acquisitions - disposals Closing balance Depreciation Opening balance Movement in the year - charged - written back Closing balance
Closing net book value
Assets under construction
28,539
33,643
39,166
(7,998)
16,273 (9,942)
143,456 -
20,541
39,974
182,622
-
(24,611)
-
-
(3,003) 4,963
-
-
(22,651)
20,541
84
Furniture and vehicles
17,323
182,622
CONSOLIDATED accountS X.
Statement of investments Companies equity-accounted 1. Shareholdings a) Acquisition cost Opening balance Movements in the year - acquisitions - disposals and withdrawals - transfers
36,397,066 3,237 (2,479,184) (719,396)
Closing balance b) Revaluation surplus Opening balance Movements in the year - revaluations - cancellations Closing balance c) Amounts written-off Opening balance Movements in the year - amounts charged - amounts written back - transfer between items Closing balance d) Increases or reductions resulting from consolidation under the equity method Opening balance Movements in the year - acquisitions - profits - dividends received - disposals - other Closing balance e) Amounts not called Opening balance Movements in the year Closing balance Closing net book value 2. Bonds and amounts receivable Opening net book value Movements in the year - additions - repayments or disposals - amounts written off Closing net book value
other
12,876,540 8,500 (958,934) 186,932
33,201,723
12,113,038
-
-
-
-
-
-
(43,639)
(516,620)
43,639
(249,330) 324,441 76,613
-
(364,896)
(3,049,449)
-
(786) 3,457,715 (1,666,297) (228,206) 635,114
-
(851,909)
-
-
(880) -
-
(880)
32,349,814
11,747,262
1,847,996
7
(1,772,996) -
(1) -
75,000
6
-
-
Cumulative write-offs on receivables at the end of the financial year
85
CONSOLIDATED accountS XI.
XII.
Statement of reserves 6,129,391
Opening net book value Movement in the year - profit - dividends paid - other
5,082,664 (2,584,680) -
Closing net book value
8,627,375
Statement of goodwill Subsidiaries positive Opening net book value Movements in the year - adjustments resulting from an increase in shareholding percentage - adjustments resulting from a decrease in shareholding percentage - amortization - differences taken to results - others Closing net book value
XIII.
-
negative 149,459
821
-
(821) -
-
-
149,459
Equity-accounted companies positive negative 2,199,310 72,772
786 (50,320) (151,615) -
3,798
1,998,161
76,570
Statement of liabilities
due within one year (current portion) A. Analysis of amounts originally payable after more than one year Financial liabilities 2. Unsubordinated debentures
-
with more than one year but less than five years to run
3,273,750 3,273,750
1996 114,170
C. Taxes, salaries and social charges payable 1. Taxes b) not overdue tax payable c) accrued tax charges 2. Salaries and social charges b) other salaries and social charges
3,065 105,710 5,395
86
with more than five years to run
-
CONSOLIDATED accountS XIV.
Other information regarding operating results
B.l. Average number of employees Personnel is included in the records of the NPM/CNP Cost Association which is then allocated among the members at the end of the year. B.2. Payroll expenses a) salaries and direct social charges b) employers’ social insurance contributions c) employers’ additional insurance contributions d) other employment costs D. Taxes on results 1. Taxes on the profit for the year a) taxes and withholdings paid or payable b) excess payment of taxes or withholdings included in the balance sheet c) estimated additional taxes 2. Taxes on the profits for previous years XV.
1996
1995
1994
96,521 72,045 14,899 3,498 6,079
79,369 58,270 13,442 3,596 4,061
58,023 42,477 10,744 2,381 2,421
59,219 262,909
24,697 261,551
23,772 253,139
(262,909) 59,219 -
(261,551) 24,697 5,094
(253,139) 23,772 -
Off-balance sheet rights and commitments 1. Within the framework of the 1990 agreement - renewed in 1996 - between the FRÈRE-BOURGEOIS/NPM-CNP and POWER Groups with respect to the joint control of PARGESA HOLDING S.A., the partners acknowledged the following mutual rights and commitments : in the case of the loss of control by the FRÈRE-BOURGEOIS/NPM-CNP Group or by the POWER Group of PARJOINTCO N.V. or, should that company be dissolved, of the companies to which ownership of the PARGESA shares will be transferred, subject to settlement by arbitration, the defaulting Group will grant an option to the other Group to acquire the shareholding in PARGESA held by PARJOINTCO N.V. or by companies of the defaulting Group, at the stock market price at the time of the arbitration settlement for PARGESA shares and at the issue price for any other PARGESA security. 2. As part of the sale of SCI & ASSOCIÉS and its subsidiary CACAO BARRY, NPM/CNP has granted to the purchaser guarantees which are usual for sales of companies (mainly a net assets guarantee - with a deductible - expiring at 31 December 1997). At the date of press of the present document, the Company is not aware of any risk regarding this matter. 3. NPM/CNP has issued call options on 150,000 PARIBAS shares exercisable in January 1997 at a price of FRF 333 per share. At 31 December 1996, the share price was above the exercise price. As the PARIBAS shares were written down during previous financial years, these were written back up to the amount of the exercise price. 4. In order to cover the exchange risk related to the ELF AQUITAINE shares, the NPM/CNP Group carried out a BEF/FRF exchange rate and interest rate swap for a period of 5 years covering some FRF 514 million. At 31 December 1996, rates had moved favourably to the position taken by the Group ; as the gain was not realized, it was not reported in income. 5. At 31 December 1996, 1,700,000 NPM/CNP warrants were still in circulation, giving the right to subscribe for the same number of shares in the company up to 1999 on the following conditions : -
1,500,000 shares at a price of BEF 2,365 (warrants issued in 1994) 200,000 shares reserved for the personnel at a price of BEF 1,696 (warrants issued in 1990)
87
CONSOLIDATED accountS XVI.
Intercompany balances with associated and related companies Associated companies 1996 1. 2. 3. 4.
7.
Investments - shares - receivables Receivables - due within one year Short-term investments - shares - receivables Payables - falling due beyond one year - long-term liabilities due within one year - due within one year Finance income/expense - Income - from investments - from current assets - other financial income - Expense - on payables - other financial costs
1995
Related companies 1994
1996
1995
21,142,561 75,000
18,239,675 75,000
18,071,494 -
9,613,198 -
15,064,303 1,772,996
15,391,835 1,772,996
8,329,629
3,025,000
2,869,929
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,200,265
3,062,105
3,100,000
303,353
93,413
-
7,800 272,074 -
121,812 -
148,116 -
34,144 -
81,619 -
35,018 1,200 -
154,435 -
156,989 -
82,895 -
-
-
-
XVII. Financial relations with Directors 1996 A.
B.
1994
Amounts of remuneration paid during the year to Members of the Board of Directors of the parent company by fully or proportionally consolidated companies Loans and advances granted to Directors
24,279 -
88
1995
19,985 -
1994
19,739 -
CONSOLIDATED accountS
STATEMENTS OF CASH FLOWS (BEF thousands)
SOURCES OF LONG-TERM FUNDS Cash-flow of the year Net profit (Group) (Minority interests) Depreciation and net write-offs Provisions for liabilities and charges Capital increase (including share premiums) Other changes in equity Other changes in minority interests Long-term debt
Consolidated accounts 1996 1995 1994 5,082,664 170,661 (18,501) (261,857)
2,363,655 88,318 776,640 245,250
462,079 260,554 5,695,600
2,584,680 146,752 (3,455,475) (724,043)
3,387,882 91,340 582,542 30,666
Restricted consolidated accounts 1996 1995 1994 3,826,166 54,953 (170,070) (227,750)
2,100,296 51,933 694,240 245,250
2,810,443 54,571 466,579 (3,441)
6,992,379 (267,780) (1,148,791) (50,916) (16,379) 3,253,750 3,155,167 13,173,389
(3,479) 241,000 (17,279) 3,703,541
6,992,379 75,262 (194,883) (52,963) (63,477) 236,561 3,253,750 3,350,579 13,315,921
2,552,188 2,485,826 149,193 68,778 10,049 (277,075) 8,866,011 2,343,891 11,511,079
2,584,680 146,752 (5,415,296) (2,683,864)
2,552,188 2,485,826 149,193 68,778 11,745 (297,501) 9,610,438 2,323,465 12,257,202
APPLICATIONS OF LONG-TERM FUNDS Dividends paid Capital increase and bond issues expenses Tangible assets Financial assets Net increase/(decrease) in long-term funds
6,419,643
811,276
1,662,310
6,387,405
1,027,114
1,058,719
(22) 7,045 5,624,243 180,348 872,095 (15,368) (1,477,827) 3,528,516 1,924,711 (66,667) 40,246 9,942,797 674,523
(5,192) 2,908,236 2,807,437 (24,786) 115,463 5,801,158
(22) 7,045 5,491,493 267,414 872,095 139,035 (1,449,105) 3,486,781 1,944,159 (65,896) 40,001 9,923,486 809,514
(5,325) 2,823,103 2,807,451 (503,389) 115,592 5,237,432
3,424,258 23,266 60,384 89,783 (74,537) 3,523,154
(20,000) (383,180) 23,046 (19,121) 331,031 (68,529) (136,753)
20,000 3,436,101 793 (1,661) 356,820 326,795 4,138,848
3,425,931 23,266 63,608 89,788 (66,512) 3,536,081
20,000 3,521,186 793 (45,129) 356,820 325,043 4,178,713
6,419,643
811,276
1,662,310
6,387,405
CHANGES IN WORKING CAPITAL Increase/(decrease) in current assets Trade receivables within one year Other amounts receivable within one year Short-term investments - own shares Short-term investments - other investments and deposits Cash at bank and in hand Deferred charges and accrued income Increase/(decrease) in current liabilities Transfers from long-term debt Financial liabilities Trade payables Taxes, salaries and social charges payable Other amounts payable within one year Accrued charges and deferred income Net increase/(decrease) in working capital
89
(20,000) (468,265) 23,046 (20,782) 331,026 (62,625) (217,600) 1,027,114
1,058,719
CONSOLIDATED accountS
STATEMENTS OF CASH FLOWS – COMMENTS
In February / March 1996 the NPM/CNP proceeded with a threefold operation of strengthening its long-term funds for a total amount of BEF 10,266 million, consisting of BEF 6,992 million of equity and BEF 3,274 million by the issue in two phases of unsubordinated debentures. In February 1994, in the context of the privatisation of the French company ELF AQUITAINE, the NPM/CNP Group formed part of the Group of Stable Shareholders and purchased 1,250,000 shares representing 0.5 % of the share capital of the company. This investment amounted to FRF 514 million which was financed in this currency. During the summer of 1994 NPM/CNP opted for the dividend in shares distributed by ELF AQUITAINE, thus increasing its holding to 1,296,695 shares. During 1994 NPM/CNP took a holding of shares in COMPAGNIE GÉNÉRALE DES EAUX amounting to 1 % of the share capital at 31 December 1994. Following dilution of the holding the NPM/CNP currently holds 0.9 % of this company. In June 1994 NPM/CNP acquired an interest of 49 % in SCI & ASSOCIÉS, a French farm-produce group active in the converting of coffee beans and the production of chocolate through CACAO BARRY as well as in beef-based processed foods through VITAL SOGEVIANDES. This interest was disposed of at the start of the second half-year of 1996 for a total sum of BEF 5,056 million, on which a profit on disposal was made of BEF 1,051 million in the restricted consolidation and BEF 756 million in the consolidated accounts. During June 1994, NPM/CNP sold an interest of 2.2 % in ELECTRAFINA to COMPAGNIE GÉNÉRALE DES EAUX. Following this transaction the Group’s interest in ELECTRAFINA are now concentrated in GROUPE BRUXELLES LAMBERT. In the context of a restructuring of the Group’s interests in the publishing sector, NPM/CNP sold its 40 % holding in ÉDITIONS HEMMA to GROUPE DE LA CITÉ in 1994. In the first half of 1996 NPM/CNP Group sold some 53,000 shares in ROYALE BELGE for an amount of BEF 339 million, reducing its interest to 2.35 % compared to 2.7 % at the end of 1995. In the course of 1996 NPM/CNP also sold 1,783,695 shares in ESPIRITO SANTO FINANCIAL HOLDING for an amount of BEF 869 million. In addition, 150,000 shares in COMPAGNIE FINANCIÈRE DE PARIBAS formed the object of call options subsequently exercised in January 1997. This holding was reclassified to Short-term investments at 31 December 1996.
90
CONSOLIDATED accountS
AUDITORS’ REPORT
Ladies, Gentlemen, In our role as Auditors of NATIONALE PORTEFEUILLEMAATSCHAPPIJ / COMPAGNIE NATIONALE À PORTEFEUILLE , and in accordance with the statutory provisions relating to holding companies, we have examined the consolidated accounts for the year ending 31 December 1996. This work was carried out by us, in conjunction with auditing standards and guidelines laid down by D’ENTREPRISES (Institute of Auditors). In the course accounting policies outlined in the financial appendix correctly applied.
other experts, in accordance with the the INSTITUT DES REVISEURS of our work we have verified that the to the management report have been
There has been consistency in the presentation of the accounts and the application of the accounting policies, taking into account the changes in the Group structure over the past year. During our audit of the consolidated accounts we relied on documents supplied by various companies which were subject to audit by those companies’ auditors. Finally, we studied the consolidated management report which contains the information required by the Royal Decree of 6 March 1990 and is consistent with the consolidated accounts. In conclusion, we confirm that the consolidated balance sheet, with a total amounting to BEF 69,855,392 (000), and the consolidated income statement, showing a Group share of profit of BEF 5,082,664 (000), gives a true and fair view of the assets, financial situation and results of the group of companies included within the consolidation of NATIONALE PORTEFEUILLEMAATSCHAPPIJ / COMPAGNIE NATIONALE À PORTEFEUILLE at 31 December 1996. They have been prepared in accordance with the accounting policies described in the financial appendix to the management report and which comply with the legal provisions applicable in Belgium.
Brussels, 17 April 1997
Statutory Auditors
DELOITTE & TOUCHE Reviseurs d’Entreprises S.C. represented by Claude POURBAIX
KLYNVELD PEAT MARWICK GOERDELER Reviseurs d’Entreprises S.C. represented by Georges M. TIMMERMAN
91
CONSOLIDATED accountS
PARJOINTCO – SUMMARY CONSOLIDATED ACCOUNTS
Introduction PARJOINTCO N.V., a company registered under Dutch law, was set up in 1990, on the basis of equality of shareholding and management control between the FRÈRE-BOURGEOIS/NPM-CNP Group on the one hand and POWER CORPORATION OF CANADA on the other. It is the financial vehicle for joint control of the PARGESA/GBL/PARFINANCE groups, consolidating approximately 55.0 % of the capital of PARGESA which, in turn, controls GBL. These two latter companies together control PARFINANCE (87.1 % of the capital). Principles of consolidation The audited accounts of the companies listed above were included as transmitted by their auditors, the only exceptions being the correcting entries necessary to bring them in line with the Belgian accounting principals and those allowing the change from consolidation under the equity method to full consolidation of GBL and PARFINANCE by PARGESA ; the accounts presented here also consolidate ELECTRAFINA, CLMM, AUDIOFINA and FRATEL, which are included in GBL’s accounts. As already stated, positive goodwill relating to the various companies is not allocated but is shown as part of the cost of the companies on which it has arisen and amortized at a rate of 5 % per annum. However, following the sale by ELECTRAFINA of its shares in TRACTEBEL in the second half of 1996, PARGESA considered it appropriate to record an exceptional amortization charge of BEF 431 million against its goodwill in GBL (BEF 237 million relating to the part belonging to PARJOINTCO). PARJOINTCO itself charged exceptional amortization of BEF 680 million, calculated as the difference, at the time of its creation in 1990, between the stock market value of the TRACTEBEL shares and their consolidated book value within the PARGESA/GBL/PARFINANCE Group. Highlights of the 1996 financial year During the 1995 financial year, the equity of PARJOINTCO changed as follows (in million BEF) : -
equity at 31.12.1995 profit for the year distributed dividend translation adjustments
36,165 3,726 (1,590) 229
-
equity at 31.12.1996
38,530
PARJOINTCO, as such, did not conduct significant financial operations during the 1995 financial year. Operations conducted by PARJOINTCO’s subsidiaries (PARGESA, GBL, PARFINANCE, ELECTRAFINA, CLMM, AUDIOFINA and FRATEL) are described in the management report section. As indicated, the most significant operations in terms of the impact on the accounts relate to the Public Offer to Purchase its own shares carried out by PARFINANCE which had the effect of taking the percentage of share capital of PARFINANCE held by PARGESA and GBL from 57.2 % to 87.1 %, as well as to the sale by ELECTRAFINA of its interest in TRACTEBEL, which was equity accounted for until 30 June 1996.
92
CONSOLIDATED accountS Consolidation structure (simplified chart of the Group at 31 December 1996)
PARJOINTCO
55.0 %
PARGESA HOLDING
46.1 %
47.4 % 41.0 %
PARFINANCE
GROUPE BRUXELLES LAMBERT
47.9 % ELECTRAFINA
8.0 %
25.1 %
59.9 % ROYALE VENDÔME CLMM 51.1 %
17.1 %
AUDIOFINA 51.2 % 95.9 % FRATEL 17.6 %
79.5 %
CLT 52.5 %
IMETAL
22.8 %
PETROFINA
25.7 %
MONUMENT OIL & GAS
100 %
COMETRA
ROYALE BELGE 12.4 % BBL
12.4 %
BERNHEIM-COMOFI
40.5 %
TRANSCOR
47.6 %
DUPUIS
50.0 %
FULLY CONSOLIDATED
BELGIAN SKY SHOP
38.0 %
PROPORTIONALLY CONSOLIDATED
DEWAAY
49.0 %
74.1 %
ORIOR HOLDING
CONSOLIDATION UNDER THE EQUITY METHOD
93
20.4 %
CONSOLIDATED ACCOUNTS
PARJOINTCO - CONSOLIDATED BALANCE SHEETS (million BEF)
ASSETS
Group share
Minority interests
Total
1996
1995
1994
1996
1995
1994
1996
1995
1994
3,862
5,532
5,874
24,971
13,580
14,800
28,833
19,112
20,674
Equity-accounted companies
21,411
19,622
20,792
87,446
97,510
93,977
108,857
117,132
114,769
Other fixed assets and investments
11,775
11,967
9,119
35,858
40,315
29,009
47,633
52,282
38,128
37,048
37,121
35,785
148,275
151,405
137,786
185,323
188,526
173,571
8,830
9,963
11,556
31,704
22,012
24,353
40,534
31,975
35,909
45,878
47,084
47,341
179,979
173,417
162,139
225,857
220,501
209,480
Goodwill
Current assets Total
LIABILITIES AND EQUITY
Group share
Minority interests
1996
1995
1994
38,530
36,165
35,508
-
-
-
-
-
162,843
Provisions for liabilities and charges
1,018
824
885
Long-term debt
4,405
6,336
Current liabilities
1,925 45,878
Equity (Group) Minority interests
Total
1996
1996
1995
1994
-
38,530
36,165
35,508
148,337
138,293
162,843
148,337
138,293
1,389
1,065
1,411
2,407
1,889
2,296
7,981
11,959
13,977
17,278
16,364
20,313
25,259
3,759
2,967
3,788
10,038
5,157
5,713
13,797
8,124
47,084
47,341
179,979
173,417
162,139
225,857
220,501
209,480
94
1995
Total
1994
CONSOLIDATED ACCOUNTS
PARJOINTCO – CONSOLIDATED PROFIT AND LOSS STATEMENTS (million BEF)
Group share 1996 Dividends and interests Results of equity-accounted companies Income from investments Gains on disposal of current assets Other financial revenue Interest expenses Losses, amounts written off and written back on current assets
1995
Minority interests 1994
1996
Total
1995
1994
1996
1995
1994
325
445
384
796
1,293
1,028
1,121
1,738
1,412
2,414
2,031
2,068
11,652
10,994
9,485
14,066
13,025
11,553
2,739
2,476
2,452
12,448
12,287
10,513
15,187
14,763
12,965
79
76
108
104
224
101
183
300
209
885
800
710
2,397
1,750
1,455
3,282
2,550
2,165
(360)
(537)
(495)
(1,254)
(1,707)
(1,403)
(70)
14
-
(894) -
(1,170)
(908)
(261)
(7)
-
(331)
7
Other financial expenses
(220)
(122)
(165)
(673)
(341)
(492)
(893)
(463)
(657)
Other expenses and operating revenue
(297)
(211)
(213)
(481)
(467)
(447)
(778)
(678)
(660)
Operating income before taxes
2,826
2,412
2,411
12,901
12,022
10,215
15,727
14,434
12,626
Gains on disposal of investments
2,832
315
503
17,515
959
2,932
20,347
1,274
3,435
(246)
(111)
31
(1,410)
(441)
(269)
Losses, amounts written off and written back on investments Amortization of goodwill Other extraordinary revenue/(expenses) Capital result before taxes Taxes Net profit
907 (7) 3,726
(580)
(337)
(529)
(1,659)
(1,034)
(2)
(150)
(722)
(239)
(145)
(3)
(92)
2,170
2,174
95
14,554 (18) 27,437
21 (391) (115) 11,516
91
(826)
(448)
(1,214)
(3,069)
(1,475)
(732)
(991)
1,077 (179) 11,113
15,461 (25) 31,163
122 (1,743)
19
(882)
(630)
932
(118)
(271)
13,686
13,287
CONSOLIDATED ACCOUNTS PARJOINTCO - ANALYSIS OF THE MAJOR ITEMS (million BEF) GOODWILL Group share
Minority interests
Total
1996
1995
1994
1996
1995
1994
1996
1995
1994
PARGESA PETROFINA ROYALE BELGE GBL IMÉTAL PARIBAS Others
1,330 1,091 536 417 331 157
2,093 1,124 599 804 474 438
2,249 1,171 681 771 478 223 301
7,627 1,518 342 588 14,896
8,278 1,675 644 1,513 1,470
8,899 1,953 618 1,557 717 1,056
1,330 8,718 2,054 759 919 15,053
2,093 9,402 2,274 1,448 1,987 1,908
2,249 10,070 2,634 1,389 2,035 940 1,357
Total
3,862
5,532
5,874
24,971
13,580
14,800
28,833
19,112
20,674
INVESTMENTS IN EQUITY-ACCOUNTED COMPANIES Holding % 1996 IMÉTAL PETROFINA BBL (1) TRACTEBEL ROYALE BELGE ORIOR HOLDING CLT COMETRA BERNHEIM-COMOFI (1) NIMEX/MONUMENT PARIBAS Others
1995
Group share
1994
Total
1996
1995
1994
1996
1995
1994
1996
1995
1994
7,098 4,069 2,987 2,292 1,721 1,342 611 373 228 690
4,028 3,563 2,751 2,594 2,054 1,749 1,081 488 426 215 673
3,376 3,463 2,435 2,408 1,926 1,285 875 499 405 214 2,914 992
12,601 28,454 8,459 6,489 1,406 21,145 4,270 1,058 1,595 1,969
12,839 26,254 7,695 19,118 5,743 1,400 16,249 3,595 1,192 1,587 1,838
10,868 26,311 6,986 18,298 5,524 1,028 7,513 3,764 1,161 1,625 9,381 1,518
19,699 32,523 11,446 8,781 3,127 22,487 4,881 1,431 1,823 2,659
16,867 29,817 10,446 21,712 7,797 3,149 17,330 4,083 1,618 1,802 2,511
14,244 29,774 9,421 20,706 7,450 2,313 8,388 4,263 1,566 1,839 12,295 2,510
21,411 19,622
20,792
87,446
97,510
93,977
52.5 52.7 53.2 22.8 22.8 22.8 12.4 12.4 12.4 - 20.5 20.4 12.9 13.0 13.1 74.1 69.0 58.5 97.1 96.8 62.4 100.0 100.0 100.0 40.5 40.5 40.5 25.7 66.7 66.5 4.4
Total
Minority interests
108,857 117,132 114,769
(1) In addition to the above-mentioned percentages, ROYALE BELGE holds 12.4 % of BBL and 20.4 % of BERNHEIM-COMOFI; the equity-accounting for those holdings is included in the value of ROYALE BELGE.
PROFITS OF EQUITY-ACCOUNTED COMPANIES Group share 1996 IMÉTAL PETROFINA ROYALE BELGE BBL TRACTEBEL CLT ORIOR HOLDING COMETRA BERNHEIM-COMOFI PARIBAS Others Total
692 450 418 333 196 194 68 54 (18) 352 2,739
Minority interests
1995
1994
443 310 234 292 283 200 118 33 43 75
389 257 212 250 255 200 161 46 32 102 164
2,031
2,068
96
Total
1996
1995
1994
1996
1995
1994
1,229 3,158 1,183 943 1,374 3,049 55 380 (50) 1,127
1,412 2,287 655 817 2,083 3,008 94 241 122 275
1,332 1,982 608 715 1,964 1,562 129 354 91 348 400
1,921 3,608 1,601 1,276 1,570 3,243 123 434 (68) 1,479
1,855 2,597 889 1,109 2,366 3,208 212 274 165 350
1,721 2,239 820 965 2,219 1,762 290 400 123 450 564
10,994
9,485
13,025
11,553
12,448
15,187
CONSOLIDATED ACCOUNTS
GAINS ON DISPOSAL OF INVESTMENTS Group share
Minority interests
Total
1996
1995
1994
1996
1995
1994
1996
1995
1994
TRACTEBEL CARNAUDMETALBOX Audio-visual companies Others
2,341 370 121
215 100
425 78
16,434 658 423
637 322
2,543 389
18,775 1,028 544
852 422
2,968 467
Total
2,832
315
503
17,515
959
2,932
20,347
1,274
3,435
LOSSES ON DISPOSAL OF INVESTMENTS (-), AMOUNTS WRITTEN OFF (-) AND WRITTEN BACK (+) Group share
Minority interests
Total
1996
1995
1994
1996
1995
1994
1996
1995
1994
PARIBAS STRAFOR FACOM Others
(181) (65)
(53) (58)
33 (2)
(490) (90)
(170) (167)
111 (20)
(671) (155)
(223) (225)
144 (22)
Total
(246)
(111)
31
(580)
(337)
91
(826)
(448)
122
AMORTIZATION OF GOODWILL Group share 1996 PARGESA by PARJOINTCO GBL by PARGESA PETROFINA AUDIOFINA / CLT ROYALE BELGE IMÉTAL PARIBAS Others Total
1995
Minority interests 1994
1996
1995
Total
1994
1996
1995
1994
(840) (330) (86) (54) (50) (42) (8)
(156) (94) (82) (52) (41) (16)
(156) (121) (77) (59) (31) (39) (46)
(269) (601) (529) (140) (74) (46)
(76) (605) (145) (132) (76)
(98) (592) (169) (108) (132) (115)
(840) (599) (687) (583) (190) (116) (54)
(156) (170) (687) (197) (173) (92)
(156) (219) (669) (228) (139) (171) (161)
(1,410)
(441)
(529)
(1,659)
(1,034)
(1,214)
(3,069)
(1,475)
(1,743)
97
CONSOLIDATED ACCOUNTS SUMMARIZED FINANCIAL STATEMENTS OF MAJOR NON-LISTED SHAREHOLDINGS The financial statements of the major non-listed shareholdings (other than PARJOINTCO) equity-accounted by NPM/CNP are presented hereafter in a summarized version :
ACIDE CARBONIQUE PUR (million BEF) 1996
1995
1994
1993
1992
Intangible assets Tangible assets Investments Inventories Receivables Other current assets Assets Equity Minority interests Provisions for liabilities and charges Long-term debt Non financial short-term debt Other short-term liabilities Liabilities and equity
1,763 43 58 720 1,348 3,932 1,330 1 163 740 1,086 612 3,932
1,926 11 56 663 1,359 4,015 1,243 1 187 952 528 1,104 4,015
5 2,149 31 56 720 2,121 5,082 2,601 1 186 1,198 859 237 5,082
9 1,995 434 51 239 1,749 4,477 2,542 1 222 1,134 360 218 4,477
17 2,086 412 64 341 1,066 3,986 1,554 1 71 471 491 1,398 3,986
Turnover Cash flow (before tax) Total profit (before tax) Net income Dividends
1,159 457 213 201 100
1,119 434 153 132 1,482
1,084 330 110 74 -
1,178 1,462 1,231 1,089 -
1,857 372 172 126 -
1996
1995
1994
1993
1992
ÉDITIONS DUPUIS (million BEF)
Intangible assets Tangible assets Investments Inventories Receivables Other current assets Assets Equity (before profit allocation) Minority interests Provisions for liabilities and charges Long-term debt Non financial short-term debt Other short-term liabilities Liabilities and equity
238 203 14 378 735 265 1,833 762 58 1,013 1,833
310 214 46 288 460 292 1,610 692 23 66 729 100 1,610
299 232 11 294 386 408 1,630 686 25 77 692 150 1,630
349 126 2 358 516 546 1,897 1,022 30 88 757 1,897
399 151 2 237 475 539 1,803 969 34 99 701 1,803
Turnover Cash flow (before tax) Total profit (before tax) Net income Dividends
1,799 248 117 77 75
1,675 232 84 62 36
1,637 172 103 86 30
1,454 108 87 59 28
1,253 142 62 47 25
98
CONSOLIDATED ACCOUNTS
HÉLIO CHARLEROI (million BEF) 1996
1995
1994
1993
1992
Intangible assets Tangible assets Investments Inventories Receivables Other current assets Assets Equity (before profit allocation) Minority interests Provisions for liabilities and charges Long-term debt Non financial short-term debt Other short-term liabilities Liabilities and equity
856 3 64 547 135 1,605 329 65 597 416 198 1,605
1,083 3 184 663 181 2,114 230 30 804 784 266 2,114
1,259 2 62 352 95 1,770 192 5 939 400 234 1,770
937 4 40 289 98 1,368 183 5 553 550 77 1,368
1,004 6 51 439 52 1,552 199 5 628 644 76 1,552
Turnover Cash flow (before tax) Total profit (before tax) Net income Dividends
2,018 312 99 81 -
2,229 267 49 49 -
1,507 168 20 20 -
1,553 152 5 5 -
1,744 85 (12) (12) -
TRANSCOR (million BEF)
Intangible assets Tangible assets Investments Inventories Receivables Other current assets Assets Equity (before profit allocation) Minority interests Provisions for liabilities and charges Long-term debt Non financial short-term debt Other short-term liabilities Liabilities and equity Turnover Cash flow (before tax) Total profit (before tax) Net income Dividends
1996
1995
1994
1993
1992
47 82 2,272 2,306 844 5,551 1,431 36 3,662 422 5,551
60 20 1,179 2,145 968 4,372 1,253 37 2,884 198 4,372
78 37 1,599 3,158 1,728 6,600 1,511 9 35 3,689 1,356 6,600
74 59 2,002 4,396 1,398 7,929 1,600 15 38 3,384 2,892 7,929
81 25 2,608 4,153 2,229 9,096 1,589 22 5,628 1,857 9,096
42,051 208 193 173 145
33,324 82 66 45 50
59,045 324 294 257 240
72,885 189 160 150 240
73,841 324 288 211 200
99
100
NPM/CNP NATIONALE PORTEFEUILLEMAATSCHAPPIJ COMPAGNIE NATIONALE À PORTEFEUILLE
NON-CONSOLIDATED ACCOUNTS
Balance sheets...................................................................................................................... 102 Profit and loss statements .................................................................................................... 104 Extract from the notes to the non-consolidated accounts at 31 December 1996................. 106
NOTICE In accordance with article 80bis of the Co-ordinated Laws on Commercial Companies, the statutory accounts presented in this chapter are an abridged version of the Parent Company accounts, and they include neither all the notes and information required by law nor the report of the Statutory Auditors, who have provided an unqualified opinion. The complete accounts will be deposited at the NATIONAL BANK OF BELGIUM and will also be available at the Company’s head office.
101
NON-CONSOLIDATED ACCOUNTS
BALANCE SHEETS (BEF thousands)
ASSETS
1996
FIXED ASSETS III.
IV.
Tangible fixed assets C. Furniture and vehicles F. Assets under construction and advance payments Investments A. Subsidiaries 1. Shareholdings B. Related companies 1. Shareholdings 2. Receivables C. Other investments 1. Stocks and shares 2. Amounts receivables and cash guarantees
VIII.
IX. X.
Amounts receivables within one year A. Trade receivables B. Other receivables Short-term investments A. Own shares B. Other investments Cash at bank and in hand Deferred expenses and accrued income
TOTAL ASSETS
1994
48,326,675
48,281,150
1,718
4,547
1,718
4,547
-
48,172,317 13,306 9,955
48,324,957
3,351 48,276,603
48,159,011
25,060,164
22,973,042
23,834,110
15,342,469 -
18,995,785 1,772,996
12,999,589 1,772,996
7,922,324 -
4,534,780 -
9,552,246 70
CURRENT ASSETS VII.
1995
16,401,285
19,146,808
7,841,266
12,565,431 12,565,431
7,841,266 5,356,005 28,396 5,327,609
16,165,353 8,329,648 8,329,648
4,118,532 4,118,532
7,117,093 7,117,093
3,080,752 123,262
2,250,780 212,065
544,426 174,186
64,727,960
67,427,958
64,337,670
102
NON-CONSOLIDATED ACCOUNTS
BALANCE SHEETS (BEF thousands)
LIABILITIES AND EQUITY
1996
EQUITY I. II. IV.
V.
Capital A. Issued capital Share premium account Reserves A. Legal reserve B. Non-distributable reserves 1. Own shares 2. Others C. Tax-free reserves D. Distributable reserves Profit carried forward
A. Provisions for liabilities and charges 2. Tax provisions 4. Other liabilities and charges
51,416,304
4,751,250
4,751,250
4,751,250
4,751,250 42,824,428 1,129,203
IX.
X.
Amounts payable after more than one year A. Financial liabilities 2. Unsubordinated debentures Amounts payable within one year A. Current portion of long-term debt B. Financial debts 1. Amounts due to financial institutions 2. Other loans C. Trade payables 1. Suppliers E. Taxes, salaries and social charges payable 1. Taxes 2. Salaries and social charges F. Other liabilities Accrued expenses and deferred income
TOTAL LIABILITIES AND EQUITY
51,574,974 4,751,250 4,751,250
42,824,428 766,408
42,824,428 2,046,231
475,125
475,125
475,125
362,795 215 221,068 70,000
215 221,068 70,000
215 1,500,891 70,000
5,036,959
3,074,218
1,953,065
23,500
142,410
24,000
23,500 23,500
LIABILITIES VIII.
1994
53,741,840
PROVISIONS AND DEFERRED TAXATION VII.
1995
142,410 142,410
24,000 21,500 2,500
10,962,620
15,869,244
12,738,696
3,273,750
3,273,750
3,273,750
3,273,750
3,273,750 7,190,344
3,273,750 12,320,565
9,102,396
-
-
20,000
1,019,941 3,500,000
995,612
1,218,125
2,065
1,098
801
77,064 176 2,591,098
48,186 176 11,275,493
65,497 176 7,797,797
498,526
274,929
362,550
64,727,960
67,427,958
64,337,670
103
NON-CONSOLIDATED ACCOUNTS
PROFIT AND LOSS STATEMENTS (BEF thousands)
EXPENSES A. B. C. D. E. F. G.
H. I.
Interest expense Other financial expense Miscellaneous goods and services Payroll expenses Miscellaneous operating expenses Depreciation and write-off of formation expenses, tangible and intangible assets Write-off on 1. investments 2. current assets Provisions for liabilities and charges Losses on disposal of 1. tangible and intangible fixed assets 2. investments 3. current assets Exceptional expenses Taxes Profit for the year
1996
1995
1994
395,844 143,179 311,465 34,532 140
487,591 82,611 48,293 38,432 184
570,062 163,228 65,694 45,053 206
2,560 234
3,351 1,021,627
50,951 171,840
234
941,174 80,453
171,840
3,500 650 16 634
6,410 179,773 293 168,530 10,950
2,500 73,331 28 72,201 1,102
25,987 55,716 4,910,216
136,000 29,020 2,393,518
15,986 2,114,782
TOTAL EXPENSES
5,884,023
4,426,810
3,273,633
O. Profit for the year available for appropriation
4,910,216
3,673,341
2,114,782
J. K. M.
PROFIT APPROPRIATION (BEF thousands)
1996 C. Transfer to reserves 2. To the legal reserve 3. To other reserves D. Profit carried forward 1. Profit carried forward F. Profit to be distributed 1. Dividends to shareholders
1995 362,795
362,795
-
5,036,959 5,036,959
3,074,218
2,584,680
1,953,065 1,953,065
2,552,188 2,552,188
7,984,434
60,289 60,289 -
3,074,218
2,584,680
104
1994
2,485,826 2,485,826
5,626,406
4,499,180
NON-CONSOLIDATED ACCOUNTS
PROFIT AND LOSS STATEMENTS (BEF thousands)
REVENUES A. Revenue from investments 1. Dividends 2. Interests B. Revenue from current assets C. Other financial revenue E. Other operating revenue G. Write-back on 1. investments 2. current assets H. Reversals of provisions for liabilities and charges I. Profits on disposal of 1. tangible and intangible fixed assets 2. investments 3. current assets J. Extraordinary revenue L. Adjustment of income taxes and write-back of tax provisions
1996
1995
2,732,037 2,697,893 34,144
2,237,842 2,163,936 73,906
10,091 54,579
890,163 66,387 31,566 84,316 84,316
142,410 2,089,104 108 1,901,008 187,988
1,611,171 1,576,153 35,018
722,403 93,528 34,050 64,670
TOTAL REVENUES
1994
988,694 111,918 18,933 15,126 7 15,119
2,500 1,102,255 706,762 395,493
3,150 523,096 37 251,237 271,822
60
-
5,761
11,781
5,884,023
4,426,810
3,273,633
-
1,279,823
-
N. Transfer from tax-free reserves
1,545
PROFIT APPROPRIATION (BEF thousands)
1996 A. Profit available for appropriation 1. Profit for the year available for appropriation 2. Profit brought forward from the previous year
1995
7,984,434 4,910,216 3,074,218
105
5,626,406 3,673,341 1,953,065
7,984,434
1994 4,499,180 2,114,782 2,384,398
5,626,406
4,499,180
NON-CONSOLIDATED ACCOUNTS
EXTRACT FROM THE NOTES TO THE PARENT COMPANY ACCOUNTS AT 31 DECEMBER 1996 VIII.
Statement of capital A.
Share capital 1. Issued capital - opening balance - changes during the year
In BEF thousands 4,751,250 -
25,340,000 -
closing balance
4,751,250
25,340,000
4,651,281 9,075 144 45,375 45,375
24,806,830 48,400 770 242,000 242,000
-
2. Description of capital 2.1. Types of shares - ordinary - AFV 1 - AFV 2 - AFV 3 - AFV 4 2.2. Registered or bearer shares - registered - bearer D.
E.
Number of shares
19,172,302 6,167,698
Commitments to issue shares 2. Subscription rights - Number of subscription rights in issue - until 1999, at BEF 1,696 per share - until 1999, at BEF 2,365 per share - Capital to be subscribed - Maximum number of shares to be issued
200,000 1,500,000 318,750 1,700,000 2,000,000
Capital authorized but not issued
G. Shareholding structure (law of 2 March 1989) At 31 December 1996, based on declarations received by that date : Number of shares held
Shareholders INVESTOR FINGEN NPM/CNP Sub-Group NPM/CNP
Percentages non fully diluted diluted
Date of declaration
184,752 139,952 2,600 327,304
0.73 0.55 0.01 1.29
0.68 0.52 0.01 1.21
03.10.96 03.10.96 03.10.96 03.10.96
FIBELPAR AGESPAR BELGIAN SKY SHOPS IMMOBILIÈRE BERNHEIM-OUTREMER
13,643,352 478,506 192,424 71,001
53.84 1.89 0.76 0.28
50.46 1.77 0.71 0.26
03.10.96 03.10.96 03.10.96 03.10.96
FIBELPAR Group and associated companies (1)
14,712,587
58.06
54.41
03.10.96
UAP VIE ROYALE BELGE URBAINE UAP LLOYD BELGE L’ASSURANCE LIEGEOISE FOYER BELGE
1,261,066 1,149,382 266,666 69,595 42,000 10,666
4.98 4.54 1.05 0.27 0.17 0.04
4.66 4.25 0.99 0.26 0.16 0.04
21.03.94 21.03.94 21.03.94 21.03.94 21.03.94 21.03.94
UAP and ROYALE BELGE Groups
2,799,375
11.05
10.35
21.03.94
(1) as a result of a subsequent declaration, the percentages have increased to 58.66 % and 55.36 % respectively on 25.04.1997
106
NON-CONSOLIDATED ACCOUNTS
XX.
Accounting policies 1. Formation expenses Formation expenses are written off by at least 20 % per annum. The issue costs of borrowed capital, discounts and premiums on loans are written off over the loan period. In any event, the Board of Directors can decide to write off the formation expenses in the year in which they were incurred. 2. Tangible fixed assets Tangible fixed assets are recorded at cost or at the contributed value. The straight line depreciation method is used and the following annual rates are applied : -
buildings vehicles furniture and office equipment computer equipment telephone facilities
5% 25 % 20 % 33 % 15 %
3. Investments a) Shareholdings and other securities Shareholdings and other securities are recorded at cost, taking account of any adjustments to the value which may be necessary, excluding incidental costs which are written off in the year in which they are incurred. Shareholdings Shareholdings value is estimated at the end of each financial year, based primarily on a prudent assessment of the underlying net assets, taking into account latent gains and losses which are considered to be of a permanent nature in view of the circumstances, profitability and known prospects of the Company. The value of shareholdings is reduced to the extent that there has been a permanent impairment in value. However, as provided for in article 34 of the Royal Decree of 8 October 1976, the Board may decide to take permanent increases in the value of investments directly to section III of the balance sheet without passing through the income statement. Other securities Shares quoted on the stock exchange or in public sale are valued at the market price, if significant. Unquoted shares, and shares in which there is not considered to be significant trading, are valued in the same way as shareholdings. The carrying value is reduced where there has been a permanent impairment in value. b) Other investments These are recorded at their cost or nominal value. The carrying value is reduced where there has been a permanent impairment in value. c) Receivables and guarantees Receivables, including fixed interest bonds, included in investments, are written down where repayment at maturity, in whole or in part, is uncertain or otherwise compromised. 4. Amounts receivable after more than one year These are valued in the same way as receivables included in other investments. 5. Amounts receivable within one year These are valued in the same way as receivables included in other investments but without considering the permanent nature of impairments in value.
107
NON-CONSOLIDATED ACCOUNTS 6. Short-term investments These are recorded at cost excluding incidental expenses which are charged to the income statement. In general, shares quoted on the stock exchange or in public sale are valued in the same way as other securities included in investments. However, write-downs are recorded, whether or not they are considered to be permanent. 7. Provisions for liabilities and charges At the end of each financial year, the Board of Directors examines previous provisions and considers new provisions required to cover possible liabilities or charges. 8. Commitments and recourse against third parties The Board of Directors values commitments and recourse against third parties at the nominal value of the legal commitment referred to in the contract ; if there is no nominal value or in borderline cases, they will be noted for the record only. 9. Assets and liabilities recorded in foreign currencies These are translated at the buying rate on the last day of the financial year. 10. Cost Association The Company is a member of a cost association (Association de frais), set up as an autonomous grouping with no legal personality, by a number of related companies, with the aim of rationalizing and reducing their administrative costs by combining their staff, offices, property, equipment and, in general, all the expenses incurred in managing their operations. The allocation of expenses and costs incurred by the association is carried out in accordance with the following rules : -
Expenses and costs - mainly payroll and miscellaneous costs - relating to operations and particular events occurring during the financial year and involving one or more of the members of the association are charged directly to the member or members concerned on an actual or lumpsum basis depending on the circumstances, and on the basis of appropriate documentation.
-
The balance of the expenses and charges is allocated proportionally among the members of the association in accordance with a formula based primarily on estimated net assets, annual movement in net assets and gross operating income.
A statement of costs is drawn up at the end of each financial year indicating, by income statement item, the share allocated to each member of the association.
108
NPM/CNP NATIONALE PORTEFEUILLEmaatschappij COMPAGNIE NATIONALE À PORTEFEUILLE
REFERENCE DOCUMENT RELATING TO A POSSIBLE PUBLIC SUBSCRIPTION OFFER OF SHARES AND THEIR LISTING ON THE PRIMARY MARKET
In the framework of the dissociated information procedure laid down by the Royal Decree of 13 February 1996, NPM/CNP has adapted the content of its annual report to allow it to be used as reference document for the possible issue of listed shares. In such a case, this document together with the operations note published at the time of the issue will constitute the prospectus in accordance with schemes A or B of the Royal Decree of 18 September 1990. In order to aid the reader locate the information provided by this Royal Decree, this document incorporates a reference table ; in those cases where the information is not readily available by other means, the information itself is provided. If a public issue does indeed take place, the information included in the present annual report will be updated in the transaction notice.
It should however be expressly noted that, at the date of press of this document, the Company has no intention of proceeding with a new public share issue, nor is it considering any project in this direction.
109
REFERENCE DOCUMENT Part I
:
INFORMATION REGARDING RESPONSIBILITY FOR THE PROSPECTUS AND FOR THE AUDIT OF THE ACCOUNTS These informations will be included in the eventual operations note.
Part II :
INFORMATION RELATING TO THE SHARES AND THEIR LISTING ON THE PRIMARY MARKET This information will be included in the eventual operations note.
Part III :
INFORMATION ABOUT THE COMPANY AND ITS SHARE CAPITAL
3.1. Identification of the Company
3.1.0. Name, registered and administration offices NATIONALE PORTEFEUILLEMAATSCHAPPIJ N.V. / COMPAGNIE NATIONALE À PORTEFEUILLE S.A., abbreviated to NPM/CNP. The registered office of the Company is at Eikenstraat 9, 2000 Antwerp. In the course of May 1997, the registered office will be transferred to Rue de la Blanche Borne 12, 6280 Loverval (Gerpinnes) which has been the Company’s administration office since April 1997, itself transferred from Boulevard Tirou 11, 6000 Charleroi. The registered office may be transferred to any location in Belgium by decision of the Board of Directors.
3.1.1. Date of incorporation and duration The Company was incorporated for an unlimited duration on 20 November 1906 under the name « LE GAZ RICHE » as a public company with limited liability (« société anonyme »), by public deed executed by Maître Émile LEFÈBVRE, public Notary in Antwerp, published in the annex of the Belgian « Official Gazette » dated 3-4 December 1906, under number 6133. The articles of incorporation have been amended for the last time by public deed executed by Maître Johan KIEBOOMS, public Notary in Antwerp, on 12 June 1996, published in the annex of the Belgian « Official Gazette » dated 9 July 1996. They will amended by public deed executed by Maître Hubert MICHEL, public Notary in Charleroi under the intervention of Maître Gilberte RAUCQ, public Notary in Brussels, in May and June 1997 ; these deeds will be published subsequently in the annex of the Belgian « Official Gazette ».
3.1.2. Legislation under which the Company operates and legal form See point 3.1.1.
3.1.3. Objects of the Company According to Article 3 of the statutes : « The objects of the Company are the purchase, the sale, the assignment, the exchange and the management of any securities, shares, bonds, government bonds or any other financial or non financial assets or rights ; the holding under any form, in any company or business in the production and/or distribution of energy, or in industry, commerce, finance, real estate or other, existing or to be incorporated. Among others, NPM/CNP may acquire through purchase, exchange, contribution, subscription, underwriting, option or any other means, any security, asset, receivables or intangible asset ; participate in any association or merger ; manage or enhance the value of its securities and participations portfolio ; realize or liquidate such assets by assignment, sale or any other means. NPM/CNP may conduct any financial, commercial, industrial and real estate operations or transactions, directly or indirectly related to its objects or designed to realize such objects. ».
3.1.4. Commercial registers The Company is registered in the commercial registers of Antwerp under number 53, and in Charleroi under number 161,072. The transfer of the registered office to Loverval will have as consequence the striking off of the Company from the commercial register in Antwerp.
3.1.5. Places of consultation of public documents The co-ordinated articles of incorporation of NPM/CNP may be consulted at the Commercial Court in Charleroi and in the registered office of NPM/CNP. The annual accounts are filed with the NATIONAL BANK OF BELGIUM. All appointment and dismissal of the representatives of NPM/CNP are published in the annex of the Belgian « Official Gazette ». Financial notices are published in the financial press. The other documents available to the public and mentioned in an eventual prospectus may be consulted at the registered office of NPM/CNP. The annual reports are sent to the registered shareholders and to each person asking to receive them.
110
REFERENCE DOCUMENT 3.2. Share capital
3.2.0. Issued capital The fully paid share capital of the Company amounts to BEF 4,751,250,000. It is represented by 25,340,000 shares with no designated nominal value of which 24,806,830 are ordinary shares, 48,400 are AFV1 shares, 770 are AFV2 shares, 242,000 are AFV3 shares and 242,000 are AFV4 shares. The ordinary shares include notably 1,474,970 VVPR shares issued by public subscription and 1,740,460 VVPR shares placed with the company FIBELPAR which were the object of a limited subscription with the issuer. The rights attached to the shares are the following : a. Right to vote at General Meetings Each share carries one vote. b. Preferential rights in the event of share capital increases In the event of a share capital increase by cash subscription, the new shares must be offered in the first instance to existing shareholders pro rata to the number of shares held on the day of issue, as prescribed by law. The General Meeting nonetheless has the right to cancel or to limit the preferential subscription rights in the interest of the company to the extent permitted by the Co-ordinated Laws on Commercial Companies, or to suspend the rights for a limited period. Any proposal by the Board of Directors to limit or to suspend the preferential subscription rights must be justified in a detailed report, which covers in particular the issue price and the financial consequences for Shareholders. A report is also made up by the Auditors, in which they state that the financial information and the accounts contained in the report by the Board are correct. These reports are filed with the clerk of the Commercial Tribunal. In the event of a share capital increase by cash subscription, the holders of convertible bonds, of bonds redeemable in shares, of subscription rights or of other securities, may convert their holding or exercise their subscription rights and thus participate in the new issue to the extent that this right is bestowed on existing shareholders. The Board of Directors always retains the right to conclude agreements under, conditions which it deems appropriate, with any third party in order to ensure the subscription of all or part of the issue shares. c. Appropriation of profits Net profits are allocated as follows : 1. A minimum of 5 % is transferred to the legal reserve until this reaches 10 % of share capital. 2. The remaining amount is allocated as decided upon by the General Meeting following a proposal by the Board of Directors. Nevertheless, existing AFV shares which benefit from the advantages provided for by Royal Decrees 15 and 150, are also assigned the saving made by the company as a result of the tax exemption of income assigned to such AFV shares - to the extent that an ordinary dividend is declared. This additional benefit is limited to tax savings made, or which will be made in the future, in relation to the financial year ending no later than 31 December 1996 (tax year 1997). The Board of Directors may, within the conditions laid down by law, distribute advances on the dividend for the year. d. Liquidation In the event of the liquidation of the company, the net assets, after payment of all debts, charges and liquidation costs, will be used in the first instance to reimburse the paid up portion of share capital - in cash or in securities. The remaining balance will be distributed equally over all shares.
3.2.1. Authorized share capital By decision of the Shareholders’ Extraordinary General Meeting of 12 June 1996, the Board of Directors authorized, for a period of five years starting on 9 July 1996, to increase share capital by up to BEF 2 billion in one or more stages. The method used to increase the share capital is to be determined by the Board and may consists of the issue of shares with or without voting rights. This authorization may be renewed in accordance with relevant laws. The increase in share capital decided on with regards to this authorization may incorporate cash or non-cash consideration or may, to the extent permitted by the Co-ordinated Laws on Commercial Companies (CLCC), incorporate the use of reserves including the share premium reserve. The use of reserves may take place with or without the issue of new securities. The Board of Directors is expressly permitted to proceed with share capital increases under the condition laid down by the CLCC, in the case of a take-over bid relating to securities issued by the company and on condition that notice to this effect is given to the BANKING AND FINANCE COMMISSION within 3 years of the Extraordinary General Meeting of 12 June 1996. In the event where the Board of Directors decides to increase share capital in the framework of the authorization by the issue of shares by cash subscription, of convertible bonds, of bonds redeemable in shares, of subscription rights or of other securities, it may, in the interest of the company and under the conditions laid down by the CLCC, limit or cancel the preferential rights of existing shareholders, to the advantage of a person or specific persons even if these are not staff members of the company or its subsidiaries.
111
REFERENCE DOCUMENT Under the same conditions and in accordance with 101 bis and 101 octies of the CLCC. The Board of Directors is also authorized to proceed with the issue of convertible bonds or bonds redeemable in shares (whether subordinated or non-subordinated), of subscription rights or other securities (whether or not attached to bonds), or other financial instruments which could lead to an increase in share capital of up to BEF 2 billion. In the framework of this authorization, the exercising of all warrants in issue would utilise authorized share capital of BEF 318,750,000 (i.e. the maximum increase in share capital resulting from the exercising of the 1,500,000 warrants issued on 28 February 1994 and the 200,000 warrants granted to staff members and certain Directors).
3.2.2. Shares not representing the capital There are no such shares.
3.2.3. Bonds issued, liabilities and commitments of the Company In March 1994, the company issued 30,000 A bonds 6.70 % 1994-1999 with a unitary nominal value of BEF 50,000, totalling BEF 1,500,000,000. Simultaneously the company issued 750,000 B bonds 5.0625 % 1994-1999 with a unitary nominal value of BEF 2,365, totalling BEF 1,773,750,000. These bonds were accompanied by two warrants exercisable between 1 June and 15 June of 1994 and 1999 by subscription to one NPM/CNP share at the price of BEF 2,365 ; this gives a total of 1,500,000 warrants. In accordance with the aim of the Company to gradually widen the membership, these bonds were however offered on the Belgian market accompanied by one warrant only, and the other 750,000 were sold on the international market. The detail of the most significant other debts can be found on page 77 of this annual report. None of the Company’s bonds or debts are subject to specific guarantees given on any of its assets. Major off-balance sheet commitments are detailed on page 87 of this annual report.
3.2.4. Conditions for changes to the capital and to the rights of the various categories of shares The statutes of the Company do not include provisions regarding capital and rights modifications which would be more restrictive than the legal provisions.
3.2.5. Changes in the share capital over the last three years and during the current year (in BEF) Date 28.02.1994
Number of shares issued 1,474,970
Type of shares ordinary shares
Amount of the capital increase 276,556,875
28.02.1994
1,740,460
ordinary shares
326,336,250
3.2.6. 3.2.7. 3.2.8. 3.2.9. Part IV :
Share premiums 2,599,634,62 5 3,789,851,65 0
Description against cash, by public offer for sale
Issue price per share 1,950
against cash, reserved for FIBELPAR
2,365
Persons in a position to influence the Company .......................................................................................... page 7 Shareholders holding more than 5 % of the capital................................................................................. page 106 Brief description of the Group ....................................................................................... pages 7, 8, 32, 82 and 93 Own shares................................................................................................................................... pages 20 and 75 INFORMATION ON THE ACTIVITIES OF THE COMPANY
4.1. Major activities of the Company
4.1.0. 4.1.1. 4.1.2. 4.1.3.
Description of the major activities of the Company ............................................................................ inside cover Breakdown of profit and of estimated value.................................................................................... pages 22 to 29 Major branches and real-estate properties.................................................................................. pages 19 and 20 Assessment of economically exploitable reserves and their probable duration This information is not relevant in the case of NPM/CNP.
4.1.4. Exceptional events......................................................................................................................................page 28 4.2. Dependence on licences and contracts The activity of the Company does not depend on licences or on specific contracts having a significant impact on its future financial situation. 4.3. Research and development As a holding company, NPM/CNP does not conduct research and development efforts.
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REFERENCE DOCUMENT 4.4. Litigations or arbitrations To the Board of Directors’ best knowledge, there is no pending litigation or arbitration which could have a significant impact on the financial situation of the Company. 4.5. Going concern The Company has not experienced recently any interruption in its business and is not aware of any event likely to compromise the conduct of its activities. 4.6. Average staff number and evolution ........................................................................................................... pages 10 and 87 4.7. Investment policy
4.7.0. Major investments of the last three years and of the current financial year ....................... pages 16 to 18 and 90 4.7.1. Major investments in progress and financing.................................................................................. pages 16 to 18 4.7.2. Major investment commitments No significant investment commitment was made by the Company, at the date of press of this document.
Part V :
FINANCIAL INFORMATION
5.1. Accounts
5.1.0. Balance sheet and profit and loss accounts................................................................................. pages 102 to 105 5.1.1. Consolidated balance sheet and profit and loss accounts............................................................... pages 70 to 73 5.1.2. Net operating profit per share The non-consolidated net operating profit per share has been (in BEF) : 1996 119.37
1995 115.74
1994 76.33
NPM/CNP being a holding company, the non-consolidated accounts are of little significance. The restricted consolidated and consolidated results per share are shown page 3.
5.1.3. Dividend per share ......................................................................................................................... pages 3 and 31 5.1.4. Half-year results In case more than nine months have elapsed since the end of the latest financial year, half-year results will be included in the operations note.
5.1.5. Additional information in the case of non conformity to the European Guidelines The accounts of NPM/CNP being in conformity with the guidelines of the European Union, no additional information needs to be provided.
5.1.6. Sources and applications of funds ................................................................................................ pages 89 and 90 5.2. Information on shareholdings of the Company ........................................................................................... pages 33 to 65 and 83 5.3. Information on more than 10% held shareholdings ........................................................................... pages 33 to 65 and 83 5.4. Information on the consolidated accounts ................................................................................................................ pages 67 to 99 5.5. Information in parts 4 and 7, extended to the Group level The information required in parts 4 and 7 is already extended to the Group level.
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REFERENCE DOCUMENT Part VI :
INFORMATION ABOUT DIRECTORS, MANAGEMENT AND AUDITORS
6.1. Name, functions and major activities of the Directors, the members of the Executive Committee and the Statutory Auditors John DILS, Chairman of the Board of Directors Independent Director Mr. John DILS is Chairman of the Board of Directors of. CONTRÔLE TECHNIQUE AUTOMOBILE « C.T.A. », Chairman of the ROYAL AUTOMOBILE CLUB DE BELGIQUE « R.A.C.B. », Honorary Vice-Chairman of BBL and Director of the ANTWERP DIAMOND BANK, of the ANTWERP DIAMOND BANK (Switzerland) and of S.G.S. BELGIUM (SOCIÉTÉ GÉNÉRALE DE SURVEILLANCE). Gilles SAMYN, Managing Director Representing the management Mr. Gilles SAMYN is Managing Director of FRÈRE-BOURGEOIS, ERBE and FIBELPAR. He is member of the Management Committee of PARGESA and of GROUPE BRUXELLES LAMBERT, and Director of various companies including IMÉTAL, PETROFINA and CLT-UFA. Jean CLAMON, Director Representing a direct or an indirect shareholder Mr. Jean CLAMON is Member of the Directorate of BANQUE PARIBAS and Managing Director of ERBE. He is also Director of COMPAGNIE DE NAVIGATION MIXTE, of COBEPA, of FIBELPAR and of COMPAGNIE GÉNÉRALE MOSANE. Laurent DASSAULT, Member of the Executive Committee Representing a direct or an indirect shareholder Mr. Laurent DASSAULT is Managing Director of DASSAULT INVESTISSEMENTS and of FONCIÈRE INDUSTRIELLE D’INVESTISSEMENT ; he is also Director of FINANCIÈRE ET IMMOBILIÈRE MARCEL DASSAULT, of DASSAULT INDUSTRIES and of numerous companies of this aviation and electronics Group. Willy DE CLERCQ, Director Independent Director Mr. Willy DE CLERCQ is Minister of State, Member of the European Parliament, Chairman of the Commission for Legal Affairs and Citizenship, Vice-Chairman of the International European Movement and Chairman of the Belgian European Movement. He is also Chairman of the Board of Directors of UCB and Member of the Board of Directors of ROYALE BELGE. Victor DELLOYE, Director - Secretary-General Representing the management Mr. Victor DELLOYE is Director of FRÈRE-BOURGEOIS and of related companies. He is also Director of ROYALE BELGE. Thierry DORMEUIL, Director Representing a direct or an indirect shareholder Mr. Thierry DORMEUIL is responsible for the management of Group PARIBAS, Director of COMPAGNIE DE NAVIGATION MIXTE, of GUYORMARC’H, NORD EST, AXA RE FINANCE and COBEPA. He represents SOCIÉTÉ GÉNÉRALE COMMERCIALE ET FINANCIÈRE at the Board of Directors of VIA BANQUE. Jacques FOREST, Director Representing a direct or an indirect shareholder Mr. Jacques FOREST is Chairman ot the Management Committee of P&V ASSURANCES, Censor of the NATIONAL BANK OF BELGIUM and Director of several companies including MULTIPHARMA and NAGELMACKERS. Baron FRÈRE, Director Representing the controlling shareholder Mr. Albert FRÈRE is Chairman of the Board of Directors of FRÈRE-BOURGEOIS, ERBE, FIBELPAR and PETROFINA, Chairman of the Board and Managing Director of GROUPE BRUXELLES LAMBERT, Vice-Chairman of PARFINANCE and of ROYALE BELGE and Director of several listed companies including CLT-UFA, HAVAS, TF1 and PERNOD RICARD. Gérald FRÈRE, Director Representing the controlling shareholder Mr. Gérald FRÈRE is Managing Director of FRÈRE-BOURGEOIS and Chairman of the Executive Committee of GBL. He is among other things Director of ERBE, FIBELPAR, PARGESA, PARFINANCE, BBL, ROYALE BELGE, COBEPA and GIB. He is also Censor at the NATIONAL BANK OF BELGIUM. Jean-Pierre GERARD, Director Representing a direct or an indirect shareholder Mr. Jean-Pierre GERARD is Managing Director of ROYALE BELGE. He is Member ot the Executive Committee of ROYALE BELGE and of AXA-UAP. Director of other companies, including BBL, he is also Chairman of the UNION PROFESSIONNELLE DES ENTREPRISES D’ASSURANCES (Professional Association of Insurance Companies).
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REFERENCE DOCUMENT Philippe HUSTACHE, Director Representing a direct or an indirect shareholder Mr. Philippe HUSTACHE is Managing Director of FINANCIÈRE ET IMMOBILIÈRE MARCEL DASSAULT and Director of several companies including SANOFI et BANQUE VERNES. He represents FINANCIÈRE ET IMMOBILIÈRE MARCEL DASSAULT at the Board of RHONE-POULENC. Marcel NICOLAÏ, Director Representing a direct or an indirect shareholder Mr. Marcel NICOLAÏ is manager of UAP - GESTION FINANCIÈRE and of several unit trusts. Thierry de RUDDER, Director Representing a direct or an indirect shareholder Mr. Thierry de RUDDER is Managing Director of GROUPE BRUXELLES LAMBERT and of ELECTRAFINA. He is Director of AUDIOFINA, BANQUE BRUXELLES LAMBERT, BERNHEIM-COMOFI, ROYALE BELGE, PETROFINA, TRACTEBEL, MONUMENT OIL AND GAS (U.K.) and of several companies of GROUPE BRUXELLES LAMBERT and of ELECTRAFINA. Baron SANTENS, Director Mr. Marc SANTENS is Chairman of the SANTENS Group.
Independent Director
Giuseppe SANTINO, Director Representing a direct or an indirect shareholder Mr. Giuseppe SANTINO is Managing Director of MOSANE and Member ot the Management Committee of COBEPA. He is also Chairman of BERGINVEST and of T. PALM. He is Director of several other companies, including FLORIDIENNE, SCHRÉDER, AUTOMATIC SYSTEMS, ARVAL BELGIUM and L’ÉCHO. Gustaaf VAN den BEMPT, Director Independent Director Mr. Gustaaf VAN den BEMPT is Master in Law and in Notary Right and Qualified Accountant. He works as crisis manager for companies experiencing difficulties and as management consultant for small and medium-sized companies. Philippe WILMES, Director Independent Director Mr. Philippe WILMES is Chairman of the Executive Committee of SOCIÉTÉ FÉDÉRALE D’INVESTISSEMENT and of SOCIÉTÉ BELGE D’INVESTISSEMENT INTERNATIONAL. He is also Director of the NATIONAL BANK OF BELGIUM and of several companies including TRACTEBEL, CODITEL and of the BANK FOR INTERNATIONAL PAYMENTS. Statutory Auditors KLYNVELD PEAT MARWICK GOERDELER, Reviseurs d’Entreprises S.C., Spoorweglaan, 3 – B-2610 Wilrijk Represented by Georges M. TIMMERMAN DELOITTE & TOUCHE, Reviseurs d’Entreprises S.C., Brussels Airport Business Park - Berkenlaan, 6 – B-1831 Diegem Represented by Claude POURBAIX
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REFERENCE DOCUMENT 6.2. Relations with Directors and Managers
6.2.0. Salaries and fringe benefits Based upon the 1996 accounts (in 000 BEF) : Paid by the company 21,336
To Directors of the Parent Company To Members of the Executive Committee not Members of the Board of Directors Advances and loans granted to Directors
Paid by subsidiaries of the company 2,943
300
-
-
-
The fees paid in 1996 to the Statutory Auditors of the Company amounted to BEF 567(000).
6.2.1. Shares and options of the Company As at 31 December 1996, no Director or Auditor was listed as a registered shareholder of the Company. Members of the Board of Directors and of the Executive Committee were registered for 101,750 warrants at the same date. These warrants can be exercised until November 1999 by subscription to one NPM/CNP share at the price of BEF 1,696.
6.2.2. Conflicts of interests In such instances, the Board of Directors establishes a special report included in the Annual Report of the Company in accordance with legal requirements. The sharing of the construction costs of the new building in Loverval between several related companies gave rise to such a report, which was presented on page 20 of the 1995 Annual Report.
6.2.3. Loans and advances See 6.2.0. 6.3. Stock option plan The Company issued on 30 June 1990 200,000 warrants reserved for the Personnel and the Managers ; these warrants can be exercised until November 1999 by subscription to one NPM/CNP share at a price of BEF 1,696. At the date of press of this document, no warrant had been exercised yet.
Part VII : INFORMATION ON THE RECENT EVOLUTION AND PROSPECTS OF THE COMPANY Information available at the date of press of this document is included in the Directors’ report (see pages 16, 18 and 30) ; should a public subscription offer take place, the related information would be updated in the operations note.
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