<<

. 96
( 208 .)



>>

Working capital $ 389,503 $ 193,758 $ 178,399 $ 192,693 $ 204,083 $ 202,076
Property, plant and equip-
ment”at cost 799,367 736,739 673,946 630,754 606,757 570,538
Total assets 1,459,749 1,372,585 1,300,723 1,252,819 1,178,826 1,118,473
Long-term debt 244,820 123,420 135,467 141,085 166,389 201,028
Common shareholders™
equity 603,594 556,123 636,029 679,711 670,789 606,139
Capital additions 93,888 80,448 71,955 35,356 71,617 61,880
Depreciation and amortiza-
tion 59,300 49,443 45,174 42,277 38,548 32,430
450 Prospective Analysis: Valuation Theory and Concepts




11-46
Prospective Analysis: Valuation Theory and Concepts




SELECTED FINANCIAL DATA (continued)

1990 1989 1988 1987 1986 1985
...................................................................................................................................................
Share Data
Earnings per common share:
Primary:
Continuing operations $4.76 $3.95 $4.15 $4.01 $3.59 $3.53




Schneider and Square D
Discontinued operations .18 .03 .29 (.19) (.17) (.51)
Net earnings 4.94 3,98 4.44 3.82 3.42 3.02
Fully diluted:
Continuing operations 4.57 3.88 4.13 3.98 3.56 3.50
Discontinued operations .16 .03 .29 (.19) (.17) (.50)
Net earnings 4.73 3.91 4.42 3.79 3.39 3.00
Cash dividends declared per
common share 2.20 2.00 1.94 1.86 1.84 1.84
Common shares outstanding
at December 31 22,886 23,489 25,691 27,660 28,966 28,864
Common shareholders™
equity per share $26.37 $23.68 $24.76 $24.57 $23.16 $21.00

Key Financial Relationships
Gross pro¬t 34.1% 35.7% 34.6% 37.0% 35.6% 35.6%
Current ratio 2.0:1% 1.4:1% 1.5:1% 1.7:1% 1.9:1% 1.8:1%
Average total debt to average
total equity 66.2% 55.7% 38.2% 29.0% 39.2% 40.5%
Average long-term debt to
average capital 23.3% 13.6% 15.6% 16.7% 22.0% 19.8%
...................................................................................................................................................
All financial data for the periods prior to 1990 have been restated for discontinued operations.
All financial data for the periods prior to 1988 have been restated for the consolidation of a majority-owned subsidiary.
451
Prospective Analysis: Valuation Theory and Concepts




11-47 Part 2 Business Analysis and Valuation Tools




EXHIBIT 3
Schneider Financial Statements and Accounting Policies

STATEMENT OF INCOME

(in FF million for the year ended December 31) 1990 1989 1988
......................................................................................................................................
Schneider and Square D




Net sales 49,884 45,127 40,493
Cost of goods sold, personnel and administrative
expenses (44,978) (41,008) (36,766)
Depreciation and amortization (1,565) (1,166) (1,272)
Operating expenses (46,543) (42,174) (38,038)
Operating income 3,341 2,953 2,455
Interest expense “ net (832) (757) (182)
Income before non-recurring items, amortization
of goodwill, taxes and minority interest 2,509 2,196 2,273
Non-recurring items:
Gains on disposition of assets “ net 419 550 484
Other non-recurring income and expense “ net (367) (343) (642)
Income before taxes, employee pro¬t-sharing,
amortization of goodwill and minority interests 2,561 2,403 2,115
Employee pro¬t-sharing (158) (130) (126)
Income taxes (802) (912) (701)
Net income of fully consolidated companies
before amortization of goodwill 1,601 1,361 1,288
Amortization of goodwill (236) (235) (345)
Net income of fully consolidated companies 1,365 1,126 943
Group™s share of income of companies accounted
for by the equity method 4 17 (53)
Minority interests (445) (266) (330)
Net income (Schneider SA share) 924 877 560
Net income (Schneider SA share) per share “ in FF 62.96 63.06 48.85
Net income (Schneider SA share) per share after
dilution “ in FF 61.65 60.53 N/A
......................................................................................................................................
452 Prospective Analysis: Valuation Theory and Concepts




11-48
Prospective Analysis: Valuation Theory and Concepts




BALANCE SHEET

(in FF million for the year ended December 31) 1990 1989 1988
..................................................................................................................................................
ASSETS
Current Assets
Cash and equivalents 1,841.3 3,400.3 1,579.6




Schneider and Square D
Marketable securities 3,020.9 1,924.3 1,243.7
Accounts receivable “ trade 14,597.4 14,987.3 13,998.5
Other receivables and prepaid expenses 4,738.1 3,876.5 4,054.9
Deferred taxes 407.5 290.2 236.9
Inventories and work in process 7,712.6 7,159.0 29,715.3
Total current assets 32,317.8 31,637.6 50,828.9
Non-Current Assets
Property, plant and equipment 14,293.9 13,107.5 12,019.7
Accumulated depreciation (6,691.5) (6,365.6) (6,409.5)
Property, plant and equipment “ net 7,602.4 6,741.9 5,610.2
Investments accounted for by the equity method 175.9 135.7 244.9
Other equity investments 1,727.9 571.3 684.6
Other investments 573.0 618.3 909.8
Total investments 2,476.8 1,325.3 1,839.3
Intangible assets “ net 147.5 153.5 115.0
Goodwill “ net 7,032.8 6,087.8 5,596.8
Total non-current assets 17,259.5 14,308.5 13,161.3
Total assets 49,577.3 45,946.1 63,990.2

LIABILITIES AND SHAREHOLDERS™ EQUITY
Current Liabilities
Accounts payable “ trade 9,867.9 9,614.6 8,440.8
Taxes and bene¬ts payable 4,822.5 4,795.8 3,748.4
Other payables and accrued liabilities 5,230.4 4,332.2 3,405.5
Short-term debt 3,120.5 3,165.8 3,081.3
Customer prepayments 2,509.5 3,848.3 27,606.1
Total current liabilities 25,547.2 25,756.7 46,282.1
Long-term debt 9,958.4 7,345.9 7,712.1
of which: convertible bonds 3,950.2 1,108.8 500.5
Provisions for contingencies 3,942.6 3,890.0 3,758.8
Invested Capital 24,030.1 20,189.4 17,708.1
Capital stock 1,414.4 1,397.2 1,146.3
Retained earnings 6,091.1 5,344.6 3,046.6
Shareholders™ Equity 7,505.5 6,741.8 4,192.9
Minority interests 2,623.6 2,211.7 2,044.3
Total shareholders™ equity and minority interests 10,129.1 8,953.5 6,237.2
Total liabilities and shareholders™ equity 49,577.3 45,946.1 63,990.2
..................................................................................................................................................
453
Prospective Analysis: Valuation Theory and Concepts




11-49 Part 2 Business Analysis and Valuation Tools




STATEMENT OF CASH FLOWS

(in FF million for the year ended December 31) 1990 1989
.......................................................................................................................................

I. Operating activities
Net income of fully consolidated companies 1,368.5 1,143.7
Depreciation, amortization and provisions, net of recoveries 2,164.0 2,283.0
(Gains) on disposals of assets (418.7) (550.1)
Schneider and Square D




Others (0.8) (28.7)
Net cash provided by operating activities before changes in
operating assets and liabilities 3,113.0 2,847.9
Decrease (increase) in accounts receivable (944.4) 1,170.4
Inventories and work in process 675.4 (1,708.6)
Increase (decrease) in accounts payable 578.7 (16.3)
Other current assets and liabilities (1,681.4) 736.0
Net change in operating assets and liabilities (1,371.7) 181.5
Net cash provided by operating activities 1,741.3 3,029.4
II. Investing activities
Disposals of ¬xed assets 712.9 1,394.8
Purchases of property, plant and equipment and intangible assets (2,589.5) (2,154.3)
Financial investments (2,788.2) (1,068.8)
Other long-term investments 125.5 13.4
Net cash used in investing activities (4,539.3) (1,814.9)
III. Financing activities
Reduction in long-term debt (1,626.4) (3,045.2)
New borrowings 1,508.7 2,435.1
Convertible bonds issued 2,655.6 634.7
Common stock issued 71.9 1,877.0
Dividends paid:
Schneider SA shareholders (174.6) (126.1)
Minority interests (116.5) (69.7)
Net cash provided by ¬nancing activities 2,318.7 1,705.8
IV. Net effect of exchange rate and other changes 13.8 178.5
Net increase (decrease) in cash and cash equivalents
(I + II + III + IV) (465.5) 3,098.8
Cash and cash equivalents at beginning of year 3,424.9 326.1
at end of year 2,959.4 3,424.9
.......................................................................................................................................


The following notes are an integral part of these ¬nancial statements.
454 Prospective Analysis: Valuation Theory and Concepts




11-50
Prospective Analysis: Valuation Theory and Concepts




SELECTED NOTES TO FINANCIAL STATEMENTS

1. ACCOUNTING PRINCIPLES are translated into French francs as follows:
“ Assets and liabilities are translated at year-end
The consolidated ¬nancial statements of
exchange rates;
Schneider SA have been prepared in accordance
“ Income statement and cash ¬‚ow items are trans-
with French generally accepted accounting princi-
lated at average exchange rates.
ples and with the international accounting principles
Differences arising on translation are recorded
recommended by the International Accounting Stan-




Schneider and Square D
under shareholders™ equity.
dards Committee (I.A.S.C.). The differences between
these principles and U.S. GAAP are explained in
Note l.m), below.
c) Translation of foreign currency
The ¬nancial statements of consolidated subsid-
transactions
iaries, which are prepared in accordance with
accounting principles generally accepted in the
With the exception of the transactions described
countries in which they operate, have been restated
below, foreign currency debts and receivables are
in accordance with the principles applied by the
translated into French francs at year-end exchange

<<

. 96
( 208 .)



>>