12
Statement of source and application of funds:
(in millions of guilders)
1986
1985
Cash flow
678
598
Investments
517
497
Other funds applied
114
12
Dividends paid
130
73
Funds applied
761
582
In contrast to previous years, the share
of dividends in arrears in this amount
was small. Expressed as a percentage
of shareholders' equity, net profit rose
from 12.1% to 12.7%.
Per share of N.fl. 25.— the net profit rose
from N.fl. 10.33 to N.fl. 11.11.
Financing structure as at December 31:
(in millions of guilders):
1986
1985
Amount
Amount
Group founds
2,641
46
2.467
47
Deferred taxes and Equalization account
666
11
616
12
Other provisions
270
5
202
4
Debts
2.204
38
1,965
37
5.781
100
5,250
100
Cash flow
(in millions of guilders)
430
499
588
598
678
1982 1983 1984 1985 1986
Source and Application of Funds
Cash flow - Group profit after tax plus
depreciation and the movements in the
provisions - was N.fl. 678 million, com
pared with N.fl. 598 million in the previous
financial year. Cash flow thus increased
by 13.4%.
Taking into account the part allocable to
minority interests, the cash flow per share
was N.fl. 23.98. compared with N.fl. 21.62
in 1985.
The total funds applied rose by N.fl. 179
million to N.fl. 761 million. The invest
ments in tangible fixed assets were
N.fl. 430 million, compared with N.fl. 461
million in 1985. Investments mainly took
place in the Netherlands (N.fl. 166 mil
lion). France (N.fl. 57 million), Spain
(N.fl. 48 million), Italy (N.fl. 39 million)
and the Bahamas (N.fl. 23 million). Invest
ments in financial fixed assets amounted
to N.fl. 46 million, whilst N.fl. 41 million
was spent in connection with extension
of the consolidated interests. The net
working capital, excluding the balance
of cash at bank and in hand, securities
and short-term indebtedness to credit
institutions, rose by N.fl. 114 million.
The dividends paid of N.fl. 130 million
include N.fl. 40 million in cash dividend
within the framework of the bonus issue.
Financing and liquidity
Group funds rose by N.fl. 174 million to
N.fl. 2,641 million. The principal reasons
for the increase were the profit retention
of N.fl. 195 million and the rise in minority
interests by N.fl. 125 million as a result
of the full consolidation of the Spanish
affiliate El Aguila, whilst Group funds
declined through the payment of N.fl. 40
million cash dividend in connection with
the bonus issue and the net movement
by reason of revaluations of N.fl. 95 mil
lion.
The ratio between Group funds and other
capital employed was 0.84, compared
with 0.89 in 1985.
The shareholders' equity per share rose
from N.fl. 85.63 to N.fl. 87.51.
The proportion of fixed assets financed
by Group funds remained at 0.76. The
ratio between current assets and current
liabilities improved from 1.40 to 1.45.
The long-term debts rose by N.fl. 181
million as a result of the contracting of
new debts to an amount of N.fl. 313 mil
lion and repayments of N.fl. 132 million.
In 1986 a Euro-guilder Notes loan of
N.fl. 150 million, interest 6.5%, was con
tracted, partly in view of the repayment
in 1987 of the existing Euro-guilder Notes
loan of N.fl. 100 million.
