Appropriation of profit
According to the Profit and Loss Account for 1985 the Net
profit is N.fl. 265,411,000. In accordance with Article 12 of
the Articles of Association it is proposed that
N.fl. 67.433,000 be appropriated for payment of dividend -
correspondingtoN.fi. 3.50 per share of N.fl. 25-, of which
an amount of N.fl. 1.50 per share of N.fl. 25 - was already
made payable on September 20. 1985 - and that the
remainder of N.fl. 197,978,000 be added to the General
If this proposal is approved by the General Meeting of
Shareholders to be held on April 25. 1986. the final
dividend of N.fl. 2 - per share of N.fl. 25.- for the financial
year will be made payable on dividend coupon No. 33 on
May 15. 1986.
It will be proposed that one bonus share be issued for every
three old shares against the Revaluation reserve and that a
cash dividend of N.fl. 2.083 per old share, equal to the
Netherlands tax to be withheld in respect of this bonus
issue, be paid against the General reserve.
The new shares will fully qualify for dividend for 1986.
Financing and liquidity
At December 31, 1985, the financing structure was (in
millions of guilders):
Deferred taxation and
The principal reasons for the change in Group funds were
profit retention (N.fl. 198 million) and a net revaluation
(- N.fl. 83 million.)
The ratio between Group funds and other capital employed
was 0.89, compared with 0.91 in 1984.
The shareholders equity per share rose by N.fl. 5.96 to
The capital was employed as follows (in millions of
Of the fixed assets. 0.76 was financed by Group funds,
compared with 0.75 in 1984. The ratio between current
assets and current liabilities improved from 1.31 to 1.40 in
the past financial year.
Source and application of funds
Cash flow - Group profit after tax plus depreciation and the
other items which are not cash movements - was N.fl. 598 mil
lion. compared with N.fl. 588 million in 1984,
Taking into account the part allocable to minority interests,
the cash flow per share was N.fl. 28.83, compared with
N.fl. 28 - in the previous financial year.
The total funds generated rose from N.fl. 760 million to
N.fl. 827 million.
The investments in tangible fixed assets amounted to
N.fl. 461 million, which was virtually the same as the 1984
level (N.fl. 473 million). The investments related mainly to
the Netherlands with N.fl. 132 million, Greece N.fl. 92 mil
lion, France N.fl. 79 million and Italy N.fl. 42 million. Our
share in the investments in Spain was N.fl. 11 million.
As regards financial fixed assets, net investment in parti
cipations was N.fl. 12 million and net investment in loans
and other financial assets was N.fl. 24 million.
The long-term debts rose by N.fl. 70 million through the
contracting of new debts to an amount of N.fl. 181 million
and the repayments of N.fl. 111 million.
An amount of N.fl. 73 million was paid in dividend in respect
of the financial year.
The net working capital, excluding the balance of cash at
bank and in hand, securities and indebtedness to credit
institutions, rose by N.fl. 12 million.
The total funds applied were N.fl. 693 million, compared
with N.fl. 820 million in 1984.
The liquidity position, consisting of the sum of cash at bank
and in hand and securities less the indebtedness to credit
institutions, rose by N.fl. 134 million to N.fl. 423 million.
Early in 1986 the liquidity position was further strengthened
by the issue of a 61/2% Euro-guilder Notes loan amounting
to N.fl. 150 million.