LEGRAND HOLDING SA · PDF fileNet proceeds from sales of fixed assets 28.6 11.0 Capital ... Investments in marketable securities ... statements of Legrand Holding SA and

LEGRAND HOLDING SA CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2004 Summary Consolidated statements of income French Gaap 2 Consolidated balance sheets French Gaap 3 Consolidated statements of cash flows French Gaap 5 Accounting policies and details 6 Notes to consolidated financial statements 7 to 40 Consolidated statements of income US Gaap 33 Consolidated balance sheets US Gaap 34 Consolidated statements of cash flows US Gaap 36
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Consolidated statements of income FRENCH GAAP
he accompanying notes on pages 7 to 40 are an integral part of these financial statements.
Six-month period ended Jun 30, 2004
Euros, in millions
Net sales (note 1 (i)) 1 486.2 1 389.0
Operating expenses (note 20 (a))Cost of goods sold (790.4) (884.0)Administrative and selling expenses (381.1) (373.0)Research and development expenses (125.7) (132.0)Other operating income (expenses) 7.9 5.0Amortization of goodwill (21.5) (21.0)
Operating income (loss) 175.4 (16.0)
Interest income (expense) (note 21) (123.2) (65.0)Profits (losses) from disposal of fixed assets 6.3 1.0Other income (expenses) (note 20 (b)) (13.0) (27.0)
Income (loss) before taxes, minority interests and equity in earnings of investees 45.5 (107.0)
Income taxes (note 22) (28.6) 19.0
Net income (loss) before minority interests and equity in earnings of investees 16.9 (88.0)
Minority interests (0.8) 0.0Equity in earnings of investees 1.3 1.0
Net income (loss) attributable to Legrand Holding 17.4 (87.0)
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Consolidated balance sheets FRENCH GAAP
Jun 30, 2004 Dec 31, 2003Euros, in millions
ASSETS
Current assetsCash and cash equivalents 58.9 67.9Marketable securities (note 10) 12.0 32.6Restricted cash (note 7) 40.5 37.0Trade accounts receivable (note 9) 588.1 509.9Deferred income taxes (notes 1 (h) and 22) 34.8 34.7Other current assets 103.8 112.1Inventories (notes 1 (g) and 8) 414.6 385.5Total current assets 1 252.7 1 179.7
Property, plant and equipment, net (note 4) 860.8 914.9Investments (note 5) 22.7 21.8Goodwill, net (notes 1 (e) and 2) 794.0 810.4Trademarks, net (note 3) 1 596.5 1 591.1Developed Technology, net (note 3) 396.5 449.9Restricted cash (note 7) 69.7 90.5Deferred income taxes (notes 1 (h) and 22) 35.3 32.3Other non-current assets (note 6) 92.0 93.9
3 867.5 4 004.8
Total assets 5 120.2 5 184.5
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Jun 30, 2004 Dec 31, 2003Euros, in millions
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilitiesShort-term borrowings (note 18) 179.1 130.8Accounts and notes payable 331.4 252.7Deferred income taxes (notes 1 (h) and 22) 3.0 3.0Other current liabilities (note 19) 327.8 328.4Total current liabilities 841.3 714.9
Deferred income taxes (notes 1 (h) and 22) 164.3 168.3Other non-current liabilities (note 17) 224.3 227.3Long-term borrowings (note 16) 2 086.5 2 308.8Subordinated securities (note 14) 89.2 108.9
Payment-In-Kind loans (PIK) (note 15) 1 243.0 1 213.6
Minority interests 18.7 18.2
Shareholders' equityCapital stock (note 11) 759.4 759.4Accumulated deficits (note 13 (a)) (238.1) (255.8)Translation reserve (note 13 (b)) (68.4) (79.1)
452.9 424.5
Total liabilities and shareholders' equity 5 120.2 5 184.5
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Consolidated statements of cash flows FRENCH GAAP
Euros, in millions
Net income attributable to Legrand Holding 17.4 (87.0)Reconciliation of net income to net cash provided from (used in) operating activities :- depreciation of tangible assets 72.6 81.0- amortization of intangible assets 88.6 95.0- changes in long-term deferred taxes (9.2) (55.0)- changes in other long-term assets and liabilities (5.1) 9.0- minority interests 0.8 0.0- equity in earnings of investees (1.3) (1.0)- other items having impacted the cash 34.9 101.0(Gains) losses on fixed asset disposals (6.3) 1.0(Gains) losses on sales of securities 0.0 0.0Changes in operating assets and liabilities, net of effectof investments in consolidated entities :- inventories (25.6) (19.0)- accounts receivable (73.5) (25.0)- accounts and notes payable 76.7 20.0- other operating assets and liabilities 29.2 (30.0)Net cash (used in) provided from operating activities 199.2 90.0
Net proceeds from sales of fixed assets 28.6 11.0Capital expenditures (43.1) (65.0)Proceeds from sales of marketable securities 43.9 196.0Investments in marketable securities (5.7) (5.0)Investments in consolidated entities 0.0 (39.0)Investments in non-consolidated entities 0.9 0.0Net cash (used in) provided from investing activities 24.6 98.0
Related to shareholders' equity :- capital increase 0.0 0.0- dividends paid by Legrand Holding's subsidiaries (0.5) 0.0Other financing activities :- reduction of subordinated securities (19.7) (21.0)- new borrowings 5.0 676.0- repayment of borrowings (207.1) (693.0)- debt issuance cost 0.0 (7.0)- increase (reduction) of commercial paper 0.0 (508.0)- increase (reduction) of bank overdrafts (10.8) (83.0)Net cash (used in) provided from financing activities (233.1) (636.0)
Net effect of currency translation on cash 0.3 (9.0)Increase (reduction) of cash and cash equivalents (9.0) (457.0)Cash and cash equivalents at the beginning of the period 67.9 559.0Cash and cash equivalents at the end of the period 58.9 102.0
Cash interest during the period 94.4 43.8Income taxes paid during the period 16.7 52.2
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Consolidated statements of shareholders equity FRENCH GAAP
Capital Additional Retained Translation Total stock, at paid-in earnings reserve shareholders'par value capital equity
Euros, in millions
As of July 31, 2002 0.0 0.0 0.0 0.0 0.0Net income for the period (128.9) (128.9)Capital increase 759.4 759.4Changes in translation reserve 0.0 (4.5) (4.5)
As of December 31, 2002 759.4 0.0 (128.9) (4.5) 626.0Net income for the period (126.9) (126.9)Capital increase 0.0 0.0Changes in translation reserve 0.0 (74.6) (74.6)
As of December 31, 2003 759.4 0.0 (255.8) (79.1) 424.5Net income for the period 17.4 17.4Capital increase 0.0 0.0Changes in translation reserve 10.7 10.7Other changes 0.3 0.3
As of June 30, 2004 759.4 0.0 (238.1) (68.4) 452.9
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS List of consolidated companies The consolidated financial statements comprise the financial statements of Legrand Holding SA and its 111 controlled subsidiaries. Investments in six affiliated companies are accounted for by the equity method. The most significant consolidated operating subsidiary, Legrand SA is 100 % owned (operating subsidiaries of Legrand SA are all 100% owned by Legrand SA except for Fael, which is 93% owned). The following is a list of Legrand Holding SA's significant subsidiaries:
French subsidiaries: Legrand SAS (formerly FIMAF) Legrand SA APW Arnould-FAE Baco Inovac Legrand Deri Legrand SNC Martin & Lunel Planet-Wattohm Ura Foreign subsidiaries: Anam Legrand ...................................................................................................................... South KoreaBticino ................................................................................................................................... ItalyBticino de Mexico ................................................................................................................ MexicoBticino Quintela..................................................................................................................... SpainBufer Elektrik ....................................................................................................................... TurkeyElectro Andina ...................................................................................................................... ChileFael ........................................................................................................................................ PolandLegrand ................................................................................................................................. GermanyLegrand ................................................................................................................................. ItalyLegrand ................................................................................................................................. GreeceLegrand Electric ................................................................................................................... United KingdomLegrand Electrica .................................................................................................................. PortugalLegrand Electrique ............................................................................................................... BelgiumLegrand Espanola ................................................................................................................. SpainLegrand India ........................................................................................................................ IndiaLuminex ...............................................................

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LEGRAND HOLDING SA · PDF fileNet proceeds from sales of fixed assets 28.6 11.0 Capital ... Investments in marketable securities ... statements of Legrand Holding SA and