s regards its own investments or those which are ... · roland borres maximilien de limburg stirum...
TRANSCRIPT
COMPAGNIE NATIONALE À PORTEFEUILLE/NATIONALE PORTEFEUILLEMAATSCHAPPIJ's long-term objec-
tive is to maximize shareholders' value. Its shareholders may assess the fulfilment of this goal by following the esti-
mated value and the dividend per share. This fundamental aspect of NPM/CNP's corporate charter must be under-
stood 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 invest-
ments 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 matu-
rity 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 objec-
tives, 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.
npm/cnp: a holding company, a professional shareholder
On 22 April 1997, THE BANKING AND FINANCIAL COMMISSION authorized the use of this document as a reference for any public investment offer whichmay be made by COMPAGNIE NATIONALE A PORTEFEUILLE/NATIONALE PORTEFEUILLEMAATSCHAPPIJ up to the date of publication of its next annualreport, 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 article29 of Royal Decree no. 185 of 9 July 1935. This prospectus will be submitted for the approval of the BANKING AND FINANCIAL COMMISSION in accordancewith 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.
2
financial highlightsequity and value
(1) The consolidation perimeter and the restricted consolidation perimeter are described page 68.
3
results
(1) The consolidation perimeter and the restricted consolidation perimeter are described page 68.
4
directors, executive managementand auditors
John DILS, Chairman
Gilles SAMYN, Managing Director
Jean CLAMONWilly DE CLERCQVictor DELLOYEThierry DORMEUILJacques FORESTBaron FRÈREGérald FRÈREJean-Pierre GERARDPhilippe HUSTACHEMarcel NICOLAÏThierry de RUDDERBaron SANTENSGiuseppe SANTINOGustaaf VAN DEN BEMPTPhilippe WILMES
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
The terms of office of Messrs. John DILS and Willy DE CLERCQ,expire at the end of the Annual General Meeting to be held on11 june 1997 ; the AGM will decide to renew their terms ofoffice or appoint others.
Gilles SAMYN, Chairman
Jean CLAMONLaurent DASSAULTVictor DELLOYEJohn DILSJacques FORESTGérald FRÈREMarcel NICOLAÏGiuseppe SANTINO
Philippe HUSTACHE, Chairman
John DILSMarcel NICOLAÏ
Board ofdirectors
Statutoryauditors
Elections ofdirectors
Executivecommittee
AuditCommittee
5
personnel and organization
MANAGING DIRECTORGilles SAMYN
SECRETARY AND LEGAL ADVISORVictor DELLOYEJean-Charles d’ASPREMONT LYNDEN (1)
LONG-TERM INVESTMENTSGilles SAMYNRoland BORRESMaximilien de LIMBURG STIRUMEric TAELEMANSPhilippe THIBAUT
TREASURY, SHORT-TERM INVESTMENTS AND DERIVATIVESMichel LOIREtienne COUGNONJacques LAMBEAUX (1)
Philippe THIBAUT
ACCOUNTING AND ADMINISTRATIONFernand MIGEOT (1)
Jean-Pierre CAPRON (1)
Jean-Marie LABRASSINE (1)
FINANCIAL CONTROL, CONSOLIDATIONAND INFORMATIONRoland BORRESJacques LAMBEAUX (1)
Maximilien de LIMBURG STIRUM
Geneviève PISCAGLIAValérie BARTHOL
Aart COOIMANPieter SCHWENCKE
Georges BETTERMANNChirita DUMITRUFabienne RUDAZGaël BALLERY
Belgium
Luxembourg
Netherlands
Switzerland
(1) Employed by CENTRE DE COORDINATION DE CHARLEROI
message to the shareholdersun actionnaire professionnel
6
On 1 April 1997, COMPAGNIE NATIONALE À PORTEFEUILLE/NATIONALE PORTEFEUILLE-
MAATSCHAPPIJ 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 loca-
tion.
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 opera-
ting 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
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
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.
• ERBE holds the majority of the capital of
FIBELPAR beside a few large institutional share-
holders: the Group of SOCIETE GENERALE DE
BELGIQUE, AXA/UAP, ROYALE BELGE and ELEC-
TRAFINA.
• NPM/CNP constitutes the partnership with the
Market.
The Group exists thanks to its partners. Its base, its creative force and initiative is family- and patri-
mony-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 GROUP'S OVERALL STRUCTURE
MESSAGE TO THE SHAREHOLDERS
THE STRUCTUREOF CONTROL
The percentages indicated above are the consolidationpercentages in effect at 31.12.1996.
FRÈRE-BOURGEOIS
NPM/CNP
FIBELPAR
ERBEPARIBAS
GÉNÉRALEAXA-UAPROYALE BELGEELECTRAFINA
Market
54.5%
57.1%
53.5%
In addition to its direct holdings,
the NPM/CNP Group holds investments indi-
rectly through a chain of holdings controlled
by PARJOINTCO : PARGESA/GBL/PARFI-
NANCE and their Group's companies. In 1990,
the Group combined under PARJOINTCO its
shareholding in PARGESA with that of
POWER CORPORATION DU CANADA, which
is also a family-controlled company (controlled
by Paul DESMARAIS Sr. and members of his
family). This alliance concerns PARGESA,
its subsidiaries and its strategic interests,
including its joint holdings with NPM/CNP
(PETROFINA, ROYALE BELGE, DUPUIS,
TRANSCOR and BERNHEIM-COMOFI) and
FIBELPAR (BELGIAN SKY SHOPS).
PARGESA/GBL/PARFINANCE 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 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.
Most of NPM/CNP's recent investments are of this type and considerable efforts are made to
find new ones.
8
DIRECT INTERESTS
THE PLACE OFPARGESA/GBL/
PARFINANCE
THE DISTRIBUTION OF INVESTMENTS
FRÈRE-BOURGEOIS NPM/CNP
AGESCA NEDERLAND/N.F.A.
PARJOINTCO
PARGESA/GBL/PARFINANCEand their financial subsidiaries
SHAREHOLDINGS
POWER - 50%
10.5% Interest Joint 89.5% Interest51% Vote Control 49% Vote
50%
55.0% Interest62.7% Vote
9
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 consid-
ered 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.
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.
The Group is based on a family controlled shareholder, which is supported by financial part-
ners, 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 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.
THE BOARDOF DIRECTORS
MESSAGE TO THE SHAREHOLDERS
INTERESTS HELD BYTHE PARGESA/GBL/
PARFINANCE GROUP
INVESTMENTSBY EXISTING
SHAREHOLDINGS
OPERATING PRINCIPLES AND PROCEDURES
10
THE AUDITORS
PERSONNEL
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.
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 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.
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 func-
tions 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.
THE EXECUTIVECOMMITTEE
THE AUDITCOMMITTEE
11
PERFORMANCEOBJECTIVES ANDMEASUREMENTS
Pragmatism and simplicity led the Charleroi Group to distribute overhead among the various
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 representatives on the Boards of Directors of the companies in which a share-
holding 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 safe-
guard, 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.
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.
OVERHEAD
NPM/CNP’S ROLEAS SHAREHOLDER
GENERATING VALUE
MESSAGE TO THE SHAREHOLDERS
12
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. Ex-
post, 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.
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 conti-
nuous 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 share-
holders are in perfect agreement.
What is good for one is also good for the others.
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 divest-
ment timing.
CREATING VALUE
THE ACHIEVEMENTS
PARGESA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SOCIÉTÉ GÉNÉRALE DE BELGIQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PETROFINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ROYALE BELGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SCI & ASSOCIÉS (sold in 1996) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
COMPAGNIE GÉNÉRALE DES EAUX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ELF AQUITAINE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TRANSCOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ELECTRAFINA (sold in 1994) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GBL (sold in 1991) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
COBEPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BERNHEIM-COMOFI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ACP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HEMMA (sold in 1994) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AGM (sold in 1991) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EDITIONS DUPUIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ESFH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMG HOLDING (sold in 1990) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HÉLIO CHARLEROI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ARTEMIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER SHAREHOLDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TANGIBLE FIXED ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CAPITAL INCRASES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DIVIDENDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(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 (assu-
ming 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.
ESTIMATED VALUE (beginning of period)
13
value created by NPM/CNP
since april 1988 1996 financial year
1 668 60 833
TOTAL VALUE CREATED 30 295 11 930
TRANSFERTS AVEC LES ACTIONNAIRES
LONG-TERM ASSETS 6.6 20.326 764 11 265
TREASURY (NET) 8.6 11.45 767 815
OTHER INCOME/(EXPENSES) (2) (2 236) (150)
ESTIMATED VALUE (end of period) (3) 70 211 70 211
YEARLY RETURN (dividends reinvested)
7.0
8.6
19.6
FLOWS WITH THE SHAREHOLDERS 38 247 (2 552)
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.
TSR(1) mio mio TSR(1) mio mio% BEF BEF % BEF BEF
52 880(14 633)
-(2 552)
20.0
MESSAGE TO THE SHAREHOLDERS
11.4 13 436 25.5 4 89510.0 2 052 5.9 2471.4 1 842 15.2 2 0746.9 1 473 14.6 370
15.8 1 344 22.5 9628.0 948 36.8 1 205
11.0 923 37.8 1 06323.5 809 18.2 10913.0 765 - -6.7 703 - -6.5 669 13.5 1747.2 525 (2.5) (29)
11.1 463 - -37.4 219 - -10.3 192 - -21.7 126 10.5 372.3 103 40.5 292
36.8 84 - -26.4 72 24.6 33(14.6) (371) (51.9) (249)n.a. 389 n.a. 82n.a. 0 n.a. 0
14
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 sharehold-
ers' 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 ques-
tion 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.
15
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, blue-
chip investment.
Gilles SAMYN, John DILS,
Managing Director Chairman of the Board of Directors
MESSAGE TO THE SHAREHOLDERS
directors’ report
MAIN EVENTS IN 1996 AND DURING THE FIRST FEW MONTHS OF 1997
16
DIRECTINVESTMENTS
Dear Shareholders, ladies and gentlemen,
We are pleased to present the Directors’ report on the activities of your Company and Group for the yearand to submit the accounts at 31 December 1996 for your approval.
In 1996 the portfolio of investments directly held by NPM/CNP underwent the following modi-
fications:
• 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.
17
PARJOINTCOACTIVITIES
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 owner-
ship 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.
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 AUDIO-
FINA.
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 AUDIO-
FINA. 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%.
DIRECTORS’ REPORT
PARGESA/GBL/PARFINANCE GROUP
18
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 produc-
tion 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 manu-
facturer 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 compa-
nies 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.
MAJORDEVELOPMENTS AT
SHAREHOLDINGS’LEVEL
19
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.
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 oppor-
tunity 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.
DIRECTORS’ REPORT
TREASURYMANAGEMENT
USEOF DERIVATIVES
20
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.
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).
OWN SHARES
CONSTRUCTION OFA NEW
HEADQUARTERSBUILDING
21
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.
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 Estimated value based on the same criteria as those
applied by NPM/CNP and described hereafter.• Other listed companies Stock market price.• Other unlisted companies Book value (1) or share of shareholders' equity (2),
whichever is higher.
Tangible fixed assets Book value (1).
Monetary assets and liabilities• Own shares Stock market price.• Other listed assets Stock market price.• Deposits, liquid assets and debts 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.
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.
METHOD USEDTO CALCULATE
THE ESTIMATEDVALUE
WEEKLYNOTIFICATION OF
ESTIMATED VALUE
DIRECTORS’ REPORT
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEPOSITS, CASH AND DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OWN SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SHARES AND BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WARRANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ESTIMATED VALUE (BEF/share) 2 393 2 740
22
estimated value
31/12/95
Assets criteria breakdown shareholders value interest criteria breakdownmio BEF % mio BEF mio BEF mio BEF mio BEF %
(1) (2) (3) (4) (5) (1) (6)
variation 31/12/96
3 751
LONG TERM ASSETS 55 618 91.4 7 963 (5 272) 58 309 83.0
TREASURY (NET) 5 215 8.6 (2 552) 3 967 5 272 11 902 17.0
(1) valuation criteriaa) ev : estimated valueb) sm: stock market pricec) se : shareholders' equityd) 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
ESTIMATED VALUE (NON DILUTED) 60 833 100.0 (2 552) 11 930 - 70 211 100.0
ESTIMATED VALUE (FULLY DILUTED) 64 720 (2 552) 11 930 - 74 098
ev 19 186 31.5 4 187 - ev 23 373 33.3sm 13 615 22.4 1 546 - sm 15 161 21.6sm 3 277 5.4 1 108 - sm 4 384 6.2sm 4 155 6.8 51 - sm 4 206 6.0sm 2 811 4.6 933 - sm 3 744 5.3sm 2 531 4.2 181 (247) sm 2 465 3.5sm 1 294 2.1 112 - sm 1 406 2.0sm 1 176 1.9 (93) - sm 1 083 1.5se 596 1.0 85 - se 681 1.0bv 576 0.9 - 3 bv 580 0.8se 356 0.6 25 - se 381 0.5se 480 0.8 (249) 3 sm 234 0.3se 132 0.2 25 - se 157 0.2sm 719 1.2 259 (869) sm 110 0.2se 4 278 7.0 (273) (4 005) - - -sm 244 0.4 65 (310) - - -bv 114 0.2 2 9 bv 125 0.2bv 77 0.1 - 144 bv 221 0.3
bv 1 797 3.0 (2 552) 4 257 bv 7 253 10.3sm - 0.0 - 88 872 sm 960 1.4sm 3 418 5.6 - 128 143 sm 3 689 5.3
3 887 3 887
VALUE CREATION AND TOTAL SHAREHOLDERS’ RETURNIN 1996
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
restricted consolidated result (group) in mio bef
with effect on value without effect
totalvalue
created
totalassets
tsr
2 159 1 142 75 3 376 LONG TERM ASSETS 11 265 20.3
600 - - 600 TREASURY (NET) 815 11.4
mio BEF %(7) (8) (9) (10) (11) (12)
operating capital capital
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEPOSITS, CASH AND DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OWN SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SHARES AND BONDS
OTHER REVENUES/(COSTS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.7
18.7
75 3 826 RESTRICTED CONSOLIDATED RESULT 11 930 19.63 751
DIRECTORS’ REPORT
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 theirrespective 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 1997Statutory Auditors
KPMG DELOITTE & TOUCHEReviseurs d'Entreprises S.C. Reviseurs d'Entreprises S.C.
Represented by Georges M. Timmerman Represented by Claude Pourbaix
708 - - 708 4 895 25.5528 - - 528 2 074 15.297 - - 97 1 205 36.8
196 - - 196 247 5.9130 - - 130 1 063 37.898 92 - 189 370 14.662 - - 62 174 13.564 - - 64 (29) (2.5)24 - - 24 109 18.2
- - - - - -12 - - 12 37 10.5
- - (249) (249) (249) (51.9)8 - - 8 33 24.6
32 - 259 292 292 40.5184 1 051 - 1 235 962 22.515 - 65 80 80 32.61 (1) - - 2 2.5- - - - - -
286 - - 286 286- - - - 88
314 - - 314 441
(142) (8) - (150) (150)
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ELECTRAFINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GBL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HEMMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AGM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMG HOLDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER SHAREHOLDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TANGIBLE FIXED ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEPOSITS, CASH AND DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OWN SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SHARES AND BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WARRANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) valuation criteriaa) ev : estimated valueb) sm: stock market pricec) se : shareholders' equityd) 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
ESTIMATED VALUE (BEF/share) 2 171 2 740
24
estimated value
1/4/88
Assets criteria breakdown shareholders value interest criteria breakdownmio BEF % mio BEF mio BEF mio BEF mio BEF %
(1) (2) (3) (4) (5) (1) (6)
variation 31/12/96
22 606
LONG TERM ASSETS 1 486 89.1 7 341 49 482 58 309 83.0
TREASURY (NET) 182 10.9 38 247 22 954 (49 482) 11 902 17.0
ESTIMATED VALUE (NON DILUTED) 1 668 100.0 38 247 30 295 70 211 100.0
ESTIMATED VALUE (NON DILUTED) 1 668 38 247 30 295 - 74 098
VALUE CREATION AND TOTAL SHAREHOLDERS’ RETURNFROM 1988 TO 1996
- - - 9 295 14 078 ev 23 373 33.3sm 534 32.0 (3 355) 17 982 sm 15 161 21.6- - - 754 3 630 sm 4 384 6.2- - - 828 3 378 sm 4 206 6.0- - - 541 3 203 sm 3 744 5.3- - - 723 1 742 sm 2 465 3.5- - - 267 1 138 sm 1 406 2.0- - - 162 921 sm 1 083 1.5- - - 355 326 se 681 1.0- - - - 580 bv 580 0.8- - - 80 301 se 381 0.5- - - (438) 672 sm 234 0.3- - - 57 100 se 157 0.2- - - (49) 159 sm 110 0.2- - - - - - - -- - - - - - - -- - - (877) 877 - - -- - - - - - - -
ev 564 33.8 (528) (36) - - -- - - - - - - -
bv 388 23.3 (476) 213 bv 125 0.2- - - 1 220 bv 221 0.3
bv 182 10.9 38 247 (53 782) bv 7 253 10.3sm - - - 88 872 sm 960 1.4sm - - - 261 3 428 sm 3 689 5.3
- 3 887
25
DIRECTORS’ REPORT
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mio BEF %(7) (8) (9) (10) (11) (12)
restricted consolidated result (group) in mio bef totalvalue
createdtsr
with effect on value
operating capital capital
without effecttotal
assets
22 606
4 013 128 - 4 141 PARGESA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 436 11.44 749 447 - 5 197 PETROFINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 842 1.4
194 - - 194 COMPAGNIE GÉNÉRALE DES EAUX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 948 8.01 140 83 - 1 224 SOCIÉTÉ GÉNÉRALE DE BELGIQUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 052 10.0
382 - - 382 ELF AQUITAINE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 923 11.0661 90 - 750 ROYALE BELGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 473 6.9401 - - 401 COBEPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 669 6.5363 - - 363 BERNHEIM-COMOFI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525 7.2454 - - 454 TRANSCOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 809 23.546 417 - 463 ACP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463 11.146 - - 46 ÉDITIONS DUPUIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 21.763 4 (438) (371) ARTEMIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (371) (14.6)15 - - 15 HÉLIO CHARLEROI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 26.4
152 - (49) 103 ESFH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 2.3293 1 051 - 1 344 SCI & ASSOCIÉS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 344 15.8266 499 - 765 ELECTRAFINA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 765 13.0668 911 - 1 579 GBL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 703 6.772 147 - 219 HEMMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 37.4
125 595 - 720 AGM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 10.34 80 - 84 EMG HOLDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 36.8
340 525 (327) 538 OTHER SHAREHOLDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 n.v.t- (1) 1 - TANGIBLE FIXED ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - n.v.t
14 448 4 975 (813) 18 610 LONG TERM ASSETS 26 764 6.6
2 912 - - 2 912 DEPOSITS, CASH AND DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 912- - - - OWN SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
2 506 - - 2 506 SHARES AND BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 767
5 419 - - 5 419 TREASURY (NET) 5 767 8.6
(1 123) (1 113) - (2 236) OTHER REVENUES/(COSTS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2 236)
(813) 21 793 RESTRICTED CONSOLIDATED RESULT 30 295 7.0
6,9
6,9
26
27
DIRECTORS’ REPORT
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:
28
CONTRIBUTION TOCAPITAL RESULTS
Restricted ConsolidationConsolidation (transitively)
Mio BEF BEF/share Mio BEF BEF/share
Write-downs and reversals• ESPIRITO SANTO FINANCIAL HOLDING 259 10.23 259 10.23• COMPAGNIE FINANCIÈRE DE PARIBAS 65 2.57 5 0.20• ARTEMIS (249) (9.84) (249) (9.84)• Others - - (29) (1.15)
Capital gains and losses on sales of long-term investments• SCI & ASSOCIÉS 1 051 41.47 756 29.83• TRACTEBEL - - 1 048 41.36• Others 92 3.62 254 10.02
Reversal of provisions on release of NPM/CNP from its commitmentto compensate FIBELPAR based on possible exerciseby ELF AQUITAINE of its option to sell NPM/CNP shares (1) 136 5.37 136 5.37
Amortization of goodwill (2) (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)
Total 1 210 47.74 1 147 45.27
(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.
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.
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
(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.
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):
DIRECTORS’ REPORT
2 589 2 616 OPERATING INCOME 3 604 3 936 3 604 3 936
Restricted Consolidationconsolidation Direct Transitive (1)
contribution 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
- - ACP 33 53 33 539 - ARTEMIS (2) - (2) -- - BBL - - 131 149
61 64 BERNHEIM-COMOFI 90 (37) 109 (45)- - CLT - - 90 87
21 12 ÉDITIONS DUPUIS 31 38 35 428 8 HÉLIO CHARLEROI 20 28 22 31- - IMETAL - - 199 310
480 528 PETROFINA 735 1 021 874 1 222110 98 ROYALE BELGE 178 265 283 45274 184 SCI & ASSOCIÉS (2) 362 184 362 184
- - TRACTEBEL (3) - - 127 88114 24 TRANSCOR 22 83 24 93
- - Others 4 3 104 198
877 918 Equity-accounted companies 1 473 1 638 2 391 2 864
30
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.
PROSPECTS
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
LEGAL NOTICE
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 2,584,680,000
• allocation to the unavailable reserve for own shares 362,795,145
• profit carried forward 5,036,958,501
7,984,433,646
31
appropriation of profitand shareholders’ calendar
APPROPRIATION OF PROFIT
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).
SHAREHOLDERS’ CALENDAR
group structure
32
33
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.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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1993 1994 1995 1996
Equity 2,388 2,563 2,498 2,790
Net profit (Group share) 159 162 168 272
Earnings per share (CHF) 105.9 103.6 103.3 165.7
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
35
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,
PARGESA continued to act as a professional shareholder by
developing its operating subsidiaries, which are held by various
intermediary holding companies.
Following the sale of its interest in CARNAUDMET-
ALBOX at the beginning of 1996, PARFINANCE made a
Public Offer to Purchase its own shares in May 1996 for
FRF 2.4 billion. As PARGESA did not contribute its securities
to the offer, its percentage interest rose significantly,
reaching 49.1% at the end of 1996,
compared to 32.4% a year earlier.
As GBL did not contribute either,
its interest in PARFINANCE also rose,
from 27 % to 41 %. Consequently,
PARGESA and GBL together now
control 90% of the capital of their
French subsidiary.
The effect of the Public Offer was
to raise to around 70% IMÉTAL's share
in PARFINANCE's net estimated
assets. PARFINANCE's interest in
IMÉTAL remained virtually unchan-
ged at 52.5%.
PARGESA's 49.1% interest in GBL remained stable
during the year, although its interest in ORIOR rose from
69.0% to 74.1% through stock market purchases.
In April 1996, AUDIOFINA and Germany's
BERTELSMANN reached a 50-50 partnership agreement to
control 97% of CLT's capital. On 13 January 1997, CLT
and UFA, BERTELSMANN's audio-visual subsidiary, merged
to form a new entity called CLT-UFA, in which AUDIOFINA
currently has a 49% interest.
In May 1996, ELECTRAFINA raised its interest in CLMM
to 60% by purchasing GBL's 35% interest in said group.
ELECTRAFINA also acquired 17.2 % of AUDIOFINA.
GBL's transitive interest in the latter fell from 23.9 % to
22.9 %.
In September 1996, ELECTRA-
FINA and ROYALE BELGE sold their
interests in TRACTEBEL to SOCIÉTÉ
GÉNÉRALE DE BELGIQUE for
BEF 48 billion.
ELECTRAFINA has acquired
a shareholding in COMPAGNIE DE
SUEZ, which reached 6.1% at the end
of 1996 and more than 11% on the
18 April 1997.
ORIOR continued to grow its food
business by acquiring the RIEDER
Group. Its interest in the RAPELLI
Group was raised from 80% to 100%
and the Group's share in the capital of FREDAG AG went from
56.4% to 68% in 1996. The ORIOR Group's strategy in
Switzerland was reflected by the taking of a 71.3% interest in
the capital of STERN CRÉATIONS, a manufacturer of watch
dials and components.
Consolidated key figures (CHF million)Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 708 27.9 0 0.0
Estimated value at 31.12.1996 23,373 922.4 0 0.0
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36
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
of BEF 16.9 billion (compared to BEF 6.6 billion the previous
year) and current income rose by 16.6%.
During 1996, GBL continued to act as professional share-
holder by investing in the development of its operating
subsidiaries.
In April 1996, AUDIOFINA and Germany's
BERTELSMANN reached a 50-50 partnership agreement
for the control of 97% of CLT's capital. On 13 January 1997,
CLT and UFA merged to form a new unit called CLT-UFA
bringing AUDIOFINA's interest in CLT-UFA to 49%. This oper-
ation enabled CLT to confirm its position as Europe's leading
audio-visual group.
In May 1996, GBL sold to ELECTRAFINA its 35% interest
in COMPAGNIE LUXEM-
BOURGEOISE MULTI MEDIA
(CLMM), the controlling share-
holder of AUDIOFINA-CLT, for
BEF 18.3 billion. Following this
transaction ELECTRAFINA held
60 % of CLMM.
The public offer to purchase
its own shares launched by
PARFINANCE in February 1996
enabled GBL to bring its interest in the latter from 27% to 41%,
which is part of the Group's strategy to get closer to
PARFINANCE's assets, particularly IMÉTAL. GBL and its parent
company PARGESA together hold 90% of PARFINANCE.
The interest in PETROFINA is held by an intermediary
holding company, ELECTRAFINA, in which GBL further
increased its position in June 1996 at the time of the
increase in long-term funds of BEF 30 billion. It now holds a
57% interest, including the 8 % held by ROYALE BELGE.
In September 1996, ELECTRAFINA decided to sell its
interest in TRACTEBEL to SOCIÉTÉ GÉNÉRALE DE
BELGIQUE. This operation provided it with BEF 41 billion in
additional cash.
ELECTRAFINA has acquired a shareholding in
COMPAGNIE DE SUEZ, which
reached 6.1% at the end of 1996
and more than 11% on the
18 April 1997.
At 31 December 1996, the
estimated value of the GBL share
was BEF 5,838. On that date, the
market price was BEF 4,085,
a discount of 30%.
1993 1994 1995 1996
Equity 71,370 74,184 75,597 88,676
Net profit (Group share) 6,382 6,633 6,602 16,891
Earnings per share (BEF) 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
Consolidated key figures (BEF million)
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Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 0 0.0 0 0.0
Estimated value at 31.12.1996 0 0.0 0 0.0
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
Parfinance
PARFINANCE, whose securities are listed on the Paris Stock Market, is the holding company through which GBLand 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
CARNAUDMETALBOX, PARFINANCE made a Public Offer to
Purchase its own shares for FRF 2.4 billion. As the GBL and
PARGESA groups did not contribute their securities to the offer,
their respective interests rose considerably. Moreover,
the 52.5 % interest in IMÉTAL, virtually unchanged in 1996,
now represents 70 % of the estimated net asset value of
PARFINANCE. Based on the stock market price for listed secu-
rities, the net book value for unlisted securities and before
taking into account latent taxes, PARFINANCE's estimated net
value was FRF 8,603 million at the end of 1996 (i.e. FRF 378
per share), up 38.5%.
The year's consolidated net income was FRF 126 million,
compared to FRF 393 million in 1995 and may be broken down
as follows:
• the contribution of
IMÉTAL, the only interest
accounted for by the
equity method since 1995,
was FRF 299 million,
compared to FRF 291 mil-
lion last year;
• operating income of
fully consolidated holding
companies was FRF
124 million, compared to
FRF 83 million in 1995.
It rose as a result of capital gains on short term investments and
the absence of financial expenses on bonds redeemable in
shares, which more than offset the lack of dividend from
CARNAUDMETALBOX and the fall in interest income due to the
purchase of its own shares;
• capital results showed a loss of FRF (297) million in 1996,
compared to a profit of FRF 18 million in 1995. These include
a FRF 170 million capital gain on the sale of the CARNAUD-
METALBOX shares, losses and provisions on the PARIBAS
shares -whose value was reduced to the level of the share-
holders' equity per share of this company-, and provisions for
real estate assets and interests in investment companies.
It will be proposed to the Annual General Meeting that the
firm pay a dividend of FRF 7.50 per share, the same as was paid
the previous year.
PARFINANCE decided
to contribute all of its UAP
securities to the public
offer of exchange launched
by AXA and in 1997
received AXA shares and
the same number of guar-
anteed value certificates.
On 21 March 1997, PARFI-
NANCE had a 0.7% interest
in the capital of AXA-UAP,
the newly formed group's
holding company.
1993 1994 1995 1996
Equity (before allocation) 8,097 8,094 8,262 5,909
Net profit (Group share) 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
Consolidated key figures (FRF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 0 0,0 0 0,0
Estimated value at 31.12.1996 0 0,0 0 0,0
38
Electrafina
ELECTRAFINA is PETROFINA's largest shareholder (with a 22.8% interest ) and controls -both directlyand 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
a net profit of BEF 24,269 million, was influenced by the
sale in September of its 20.4 % interest in TRACTEBEL
to SOCIÉTÉ GÉNÉRALE DE BELGIQUE. This operation
totalled BEF 41 billion and yielded a consolidated capital
gain of BEF 18.9 billion. Current income rose 15 % to
BEF 6,984 million, mainly due to another increase in
PETROFINA's contribution to income.
In 1996, PETROFINA's profits rose 38% to BEF 16 billion.
This was mainly attributable to the large increase in the price
of petrol and gas for the upstream sector, as well as better
refining margins and an increase in downstream trading
volumes. However, this favourable development was partially
offset by the general weakening of margins in petrochemicals.
MONUMENT's 1996 business year was characterized
by the restructuring of its shareholding through an optional
cash compensation offer. ELECTRAFINA decided to reinvest
the related treasury flow in MONUMENT OIL & GAS secu-
rities and acquired additional securities in the market.
At 31 December 1996, ELECTRAFINA held a 25.7 % direct
interest in MONUMENT
OIL & GAS.
In February 1997,
AMERICAN COMETRA
sold petrol assets for USD 400 million to LOMAK PETRO-
LEUM. This transaction will have a positive impact -estimated
at more than BEF 4.5 billion- on ELECTRAFINA's consolidated
accounts in 1997.
In June 1996, ELECTRAFINA acquired GBL's 35% interest
in COMPAGNIE LUXEMBOURGEOISE MULTI MEDIA (CLMM),
as well as 17% of AUDIOFINA. ELECTRAFINA thus brought its
interest in CLMM to 60%, with the latter holding 51% of
AUDIOFINA's capital.
On 13 January 1997, CLT and UFA, BERTELSMANN's
German subsidiary, merged to form a new entity called CLT-
UFA. AUDIOFINA now co-controls CLT-UFA with a 49%
interest.
ELECTRAFINA has acquired a shareholding in
COMPAGNIE DE SUEZ, which reached 6.1% at the end of 1996
and more than 11% on the 18 April 1997.
In June 1996, ELECTRAFINA decided to reinforce its
shareholders' equity by BEF 30 billion by creating 7,448,328
new shares and 2,482,776 bonds redeemable in shares.
At 31 December 1996, the estimated value of the
ELECTRAFINA share was
BEF 4,041. On that date,
the market price was BEF
3,016, a discount of 25.4%.
1993 1994 1995 1996
Equity 68,724 77,745 77,159 121,024
Net profit (Group share) 4,194 5,342 5,294 24,269
Earnings per share (BEF) 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
Consolidated key figures (BEF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 0 0.0 0 0.0
Estimated value at 31.12.1996 0 0.0 0 0.0
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39
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 amountingto LUF 32 billion.
During 1996, AUDIOFINA's portfolio remained almost
unchanged. The LUF 3,306 million profit, up 2 % from the
previous year, reflects the slight rise in CLT's contribution
and AUDIOFINA's good results in its treasury manage-
ment.
The new CLT-UFA Group, created by the merger
between CLT and UFA, the audio-visual subsidiary of
BERTELSMANN, is the largest television and radio
company in Europe, with a turnover of approximately
LUF 110 billion, through its interests in 19 television
stations and about 20 radio stations in 10 European coun-
tries. The new entity is also is a key player in the acqui-
sition of rights and in the production sector.
The purpose of the CLT-UFA alliance is to create a
European group capable of playing a significant role in the
international audio-visual markets which are character-
ized by greater competition and by the emergence and the
gradual introduction of new digital technologies.
The CLT-UFA partnership, which marks the continu-
ation of AUDIOFINA's strategy of developing and accom-
panying CLT, will offer the following advantages :
• a consolidation of CLT's existing activities and markets
via the stabilisation of RTL-TELEVISION's shareholding
and an expansion of the radio activities in Germany ;
• new perspectives for existing activities of CLT : the rein-
forcement of production activity via TREBITSCH and UFA
Berlin and the development of the " rights " business;
• an entry into new markets, including PREMIÈRE pay
TV ;
• the support of a powerful shareholding : BERTELS-
MANN, a global communications giant, in partnership
with AUDIOFINA, which holds LUF 32 billion in cash.
Following reimbursements of 535,568 bonds
redeemable in shares (BRS) at the end of 1996,
the number of AUDIOFINA shares totalled 61,532,300.
The number of BRS remaining in circulation is 5,133,070.
Consolidated key figures (LUF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 0 0.0 0 0.0
Estimated value at 31.12.1996 0 0.0 0 0.0
1993 1994 1995 1996
Equity (before allocation) 5,548 13,136 22,800 25,715
Net profit (Group share) 1,659 3,826 3,232 3,306
Earnings per share (LUF) 53.9 123.1 53.0 54.2
Gross dividend per share (LUF) 19.0 20.4 21.0 22.0
41
Petrofina
Total consolidated income (minority interests included)
totalled BEF 16.7 billion in 1996, compared to BEF 12.3 billion
in 1995 (an increase of 36%). The Group's share of this income
rose by 38% to BEF 16.0 billion in 1996 (BEF 690 per share),
compared to BEF 11.6 billion in 1995 (BEF 500 per share).
Capital gains on sales of assets and other extraordinary
revenues were absorbed by non-recurring charges. Cash flow in
1996 was BEF 45 billion, compared to BEF 39 billion in 1995.
PETROFINA's 1996 results differed from those of the
previous year in three ways:
• there was considerable growth in upstream sector income due
to the increase in the price of crude oil and American natural gas;
• an improvement in downstream sector income in Europe
following the increase in volumes processed and sold and
the improvement of refining margins, particularly in the
second half of the year, on conversion margins ;
• a fall in income in the chemical sector
following the general weakening of
margins.
In the upstream sector, the project
to redeploy EKOFISK installations
continued, while in the downstream
sector, the competitive advantages of
the Antwerp refinery's deep conversion
equipment materialized thanks to
market changes. The chemical sector
was supported in Europe and the United States by the produc-
tion capacity increase and by the development of new products.
In Europe, the rise in raw materials prices which took place in
the summer was only reflected in end-user prices at the end of
the year.
The Group plans to invest BEF 37 billion in 1997,
compared to BEF 34 billion in 1996. This investment will
mainly be used in the downstream sector to continue the devel-
opment of EKOFISK II, ARMADA in the North Sea and TEMPA
ROSSA in Italy and, in the chemical sector, to increase produc-
tion capacities by debottlenecking, as well as to expand the
high-density polyethylene factory in the United States. In the
downstream sector, the investment will extend marketing activ-
ities in Europe and in the United States.
The gross dividend rose 14% to BEF 400 per share, for a
total distribution of BEF 9.3 billion. After the dividend has been
paid, VVPR shares may be exchanged
against a common share and a strip so
that only one line is listed on the
Brussels Stock Market. The Company
has applied for a listing on the New
York Stock Exchange. In order to
simplify the Group's structures,
PETROFINA has proposed to the
minority shareholders of FINA Inc. that
the two companies merge.
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.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1993 1994 1995 1996
Equity 127,064 122,969 122,207 133,069
Turnover 558,982 580,676 563,193 624,594
Net profit (Group share) 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
Consolidated key figures (BEF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 528 20.9 1,222 48.2
Estimated value at 31.12.1996 15,161 598.3 18,107 714.5
42
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%
on constant group perimeter and exchange rate basis.
This includes growth of 7.6% in environmental services and
growth of 64.5% in communications in France. On the other
hand, turnover fell 6.2% in the construction and real estate
sector, reflecting the contraction of the market and the selec-
tivness efforts. Outside France the Group had a turnover of
FRF 51.1 billion, up 8%, mainly in
service businesses.
The Group's operating income
was FRF 3.8 billion, 2.6 times what it
was in 1995 on a constant group
perimeter basis and slightly higher
than the 1994 figure. In environ-
mental-related services, operating
income was FRF 6 billion, up 5.3% on
a comparable basis. Income from the
Group's construction companies,
slightly negative at FRF (22) million,
was marked by the fall in road activity
in France and was still affected by the
accounting for probable losses from the completion of several
construction yards abroad. As expected, telecommunications
produced a FRF (1.1) billion loss under the weight of invest-
ments.
Net financial income was FRF 2.2 billion negative,
a considerable improvement over the previous year
(FRF 3.4 billion negative).
Extraordinary income was close to zero, compared to
FRF (2.4) billion in 1995. It mainly includes capital gains and
dilution profits of FRF 3.9 billion, as well as net provisions
for FRF 2.2 billion, including FRF 5.3 billion of provisions
(mainly in real estate and communications) and FRF 2.9 billion
reversals on the provision for replacements in the water busi-
ness following a change in accounting methods used.
Income from companies accounted for by the equity
method was FRF 1,387 million, with a FRF 685 million extra-
ordinary capital gain from the sale by
ELECTRAFINA of its interest in
TRACTEBEL, and conversely, from
the share of the EIFFAGE Group's
losses of FRF (293) million.
After accounting for taxes of
FRF 1,190 million, employee profit
sharing of FRF 260 million and a
positive contribution of minority
interests (construction and real estate
companies) of FRF 370 million,
the Group's share of consolidated net
income was FRF 1,953 million.
Cash flow went from
FRF 6.8 billion to FRF 11.5 billion and operating cash flow
went from FRF 4.9 billion to FRF 7.5 billion. The slight fall in
investment volume to FRF 16.2 billion allowed for a debt reduc-
tion from FRF 51.7 billion to FRF 45.1 billion.
At the beginning of 1997, CGE contributed its interest in
CANAL PLUS to HAVAS, which will hold a 34.4% interest.
CGE is now the largest shareholder of HAVAS, with the objec-
tive of bringing its shareholding in this Group up to 30 %.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1993 1994 1995 1996
Equity 31,613 34,446 30,176 33,682
Turnover 147,609 156,157 162,961 165,914
Net profit (Group share) 3,205 3,346 (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
Consolidated key figures (FRF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 97 3.8 97 3.8
Estimated value at 31.12.1996 4,384 173.0 4,384 173.0
43
Elf Aquitaine
ELF AQUITAINE, present in 80 countries, is one of the ten largest petroleum groups world-wideand 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 privatisationin 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
FRF 22.3 billion and net current income rose 41 % to
FRF 7.5 billion, or FRF 28 per share. Net income was
FRF 7 billion.
The increase of the operating cash flow to FRF 31,1 billion
and a good control of the investments allowed the Group to
pursue its financial debt reduction policy while buying back
12,3 million ELF AQUITAINE shares when the Government
withdrew from its capital. The gearing ratio is now 37%,
though it would have been 30% without the purchase of its own
shares.
The various businesses contributed as follows:
• Exploration-Production: 1996 marked the first time that
production exceeded the equivalent of 1 million petroleum
barrels per day (3/4 petrol, 1/4 gas).
Current operating income from
Exploration-Production rose 96% to
FRF 15.7 billion. Productivity gains
and growth in hydrocarbon produc-
tion account for nearly FRF 2 billion
of this growth, the balance being due
to the rise in petrol prices ;
• Refinery-Distribution : ELF
AQUITAINE has developed a world-
wide business in the sale of lubricants and liquefied petrol gas
(LPG). The rise in the contribution of the Refinery-Distribution
and International Trading sector is mainly due to productivity
gains. Its operating income was FRF 0.4 billion in 1996;
• Chemicals : the activities of ELF ATOCHEM are distributed
among specialized chemicals world-wide and basic chemicals
(petrochemicals, chlorochemicals and fertilisers) in Europe.
The 1996 business year was marked by acquisitions (FINDLEY
ADHESIVES INC. in the United States and the European acti-
vities of LAPORTE PLC in adhesives and mastics) in accor-
dance with ELF ATOCHEM's strategy to develop and interna-
tionalize speciality chemicals. Operating income from
chemicals was FRF 3.6 billion in 1996;
• Health: the consequences of the slowdown in consumption
on the European beauty market were
offset by the positive developments of
SANOFI's major international medi-
cations. In 1996, SANOFI made
significant progress towards bringing
to the market three very important
molecules based on its research.
Its operating income remained
unchanged at FRF 2.5 billion.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1993 1994 1995 1996
Equity 84,088 76,472 78,672 80,062
Turnover 209,675 207,674 208,290 232,707
Net profit (Group share) 1,070 (5,439) 5,035 6,977
Earnings per share (FRF) 4.2 (21.0) 18.9 26.0
Dividend per share (FRF) 13.0 13.0 13.0 14.0
Consolidated key figures (FRF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 130 5.1 130 5.1
Estimated value at 31.12.1996 3,744 147.8 3,744 147.8
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
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
the lightening of its operating structure, ASTRA saw a consid-
erable improvement in its operations in 1996. Despite an oil
market characterized by greater competitive pressures, ASTRA
took advantage of its strategy of concentration on promising
market niches.
On the other hand, its subsidiaries active in the trading
and distribution of coal saw a sharp reduction in volumes;
this was mainly the result of the fall in consumption of coke
used in the steel industry, as well as the closing of a coal
terminal located in England, which had been losing money due
to a change in market conditions. The entire cost of said closure
was posted to the year's results.
As for commercial structure, 1996 also saw the opening of
two new subsidiaries, one in Germany, the other in
the United States. Both began trading coal products in
January 1997.
HAUTERAT & WATTEYNE, the Belgian subsidiary which
distributes and markets oil products, continued its expansion
in the thinners sector while maintaining its market share in
the sale of fuel oil to Belgian industrial clients.
Overall, 1996 results were much better than those of
the previous year, mainly as a result of the turnaround of
the ASTRA Group.
Consolidated key figures (BEF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
1993 1994 1995 1996
Equity 1,360 1,271 1,203 1,431
Turnover 72,885 59,045 33,324 42,051
Net profit (Group share) 150 257 45 173
Dividends 240 240 50 145
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 24 0.9 93 3.7
Estimated value at 31.12.1996 681 26.9 758 29.9
46
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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)
of FRF 4,350 million after a loss of FRF (3,998) million
in 1995 due to extraordinary provisions on the interest in
COMPAGNIE DE NAVIGATION MIXTE and on real estate
assets which no longer had an impact on the 1996 results.
This year, the PARIBAS Group completed its FRF 15 billion
asset sale programme.
According to PARIBAS' usual presentation, this result may
be explained as follows:
• the contribution of BANQUE PARIBAS was FRF 1,661 million,
compared to FRF (3,720) million, reflecting strong revenue
growth (Commercial Banking, Capital Markets and Financial
Services) which exceeded the rise in operating charges,
the maintenance at a moderate level of banking provisions,
a positive contribution from non-operating items (which had
been quite negative in 1995) and a lower tax burden.
BANQUE PARIBAS'
financial resources were
strengthened, in partic-
ular by a FRF 4 billion
capital increase;
• the contribution of
PARIBAS Affaires Indus-
trielles was FRF 3,197 mil-
lion, compared to FRF 2,173 million, benefiting from the strong
rise in capital gains from sales (16% of AUDIOFINA, 35% of
AXIME, 5% of POLIET - the remaining 52% being sold over
3 years -, 13% of POWER CORP, UGC DA), despite the reduction
in results from equity-accounted companies;
• the contribution of COMPAGNIE BANCAIRE was FRF (583) mil-
lion, compared to FRF 338 million. A capital gain on the sale of
6% of CETELEM and strong business results (savings and loans)
partially offset the FRF 2.5 billion extraordinary provision on
real estate;
• CREDIT DU NORD, which contributed FRF 190 million
(compared to FRF 3 million) will be gradually sold to SOCIÉTÉ
GÉNÉRALE, which will acquire a 62% interest of said firm in
1997, with the sale of the remainder taking place over the next
three years;
• the contribution of holding activity (the holding company's
debt and overhead)
of FRF (115) million,
compared to FRF (2,792)
million, benefited from
capital gains from
sales of interests of
COMPAGNIE DE NAVI-
GATION MIXTE.
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
Consolidated key figures (FRF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
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
47
Cobepa
COBEPA, traditionally operating in Benelux and Canada, carries out two major functions as a merchant bankand 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 informationand business contacts, allowing it to deal with the international nature of business today.
In 1996, its fortieth business year, COBEPA continued its
policy to refocus its portfolio, broaden its client base, simplify
structures, maximise its shares' visibility and improve
results.
COBEPA sold most of its interest in POWER CORPORA-
TION OF CANADA for CAD 326 million, generating a yearly
average internal rate of return of 23% in CAD and 14.5% in BEF.
Following this operation, Canadian subsidiary P.P.L. maintains
a 2.5% interest in POWER CORPORATION.
At the beginning of September, COBEPA underwrote 5%
of the BEF 11 billion capital increase of MOBISTAR,
a company which develops and operates Belgium's second
largest mobile phone network. Its MOSANE and IBEL
subsidiaries underwrote 5 % and 1.01 %, respectively, of the
capital, a total investment for the Group of BEF 1,210 mil-
lion. The MOBISTAR network began operations on
schedule and has been an excellent commercial success.
In November, as part of its partnership agreement, COBEPA
and HOLDING GROUPE JOSI sold
COMPAGNIE D'ASSURANCES GROUPE
JOSI to WINTERTHUR-EUROPE ASSUR-
ANCES, creating a consolidated capital
gain of BEF 800 million. COBEPA partici-
pated for BEF 1 billion in the capital
increase of WINTERTHUR-EUROPE
ASSURANCES by taking up 4.8% of its
capital. COBEPA still has a 22.2% interest
in HOLDING GROUPE JOSI, which took a
9.6% interest in WINTERTHUR-EUROPE
ASSURANCES.
PARIBAS DEELNEMINGEN invested nearly BEF 1 billion
in the capital of three Dutch small- and medium-sized enter-
prises: KONINKLIJKE SENS LABEL, a family-owned company
which is one of Europe's largest label manufacturers, VEGRO
BEHEER, leader in the wholesale distribution of heating and
sanitary equipment and APPLEBEE, a new chain of American-
style restaurants.
IBEL took a 18% interest in INDUSTRIAL LAUNDRY
GROUP, a manufacturer of industrial washing machines present
in Belgium and in the United States, by the side of its manage-
ment. It also took a 1% interest in TELENET HOLDING, a new
cable telephony project.
COBEPA played its merchant bank role in the acquisition of
DESIMPEL by HANSON BRICKS, AXA's public offer of exchange
on AXA BELGIUM, the offer by S.C.L. (SAFMARINE-CMB) on
COMPAGNIE GÉNÉRALE MARITIME as part of its privatisation
by the French government, the purchase of GAN BELGIUM by
SWISS LIFE and the acquisition of France's SACREN, a credit
insurance company, by Germany's
GERLING Group and its Belgian
subsidiary, ASSURANCES DU CRÉDIT DE
NAMUR.
In 1996, the net economical
income totalled BEF 5,890 million.
The allocation of negative currency
translation adjustments, posted to
income at the time of the deconsolida-
tion of the interest in POWER
CORPORATION, brought the Group's
share of net income to BEF 3,209 million.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1993 1994 1995 1996
Equity 42,388 47,744 47,056 50,064
Net profit (Group share) 3,749 4,577 3,361 3,209
Earnings per share (BEF) 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
Consolidated key figures (BEF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 62 2.5 62 2.5
Estimated value at 31.12.1996 1,406 55.5 1,406 55.5
48
Compagnie de Suez
The SUEZ Group is one of France's largest holding companies. SUEZ transformed itself from a group dominatedby 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:
• the sale of 100% of BANQUE INDOSUEZ to CRÉDIT
AGRICOLE (51% on 1 July and the balance at the end of
December) for FRF 11.9 billion gave rise to a consolidated
capital gain of FRF 300 million and put an end to the Group's
exposure to the volatility of market activity;
• treasury at SUEZ turned positive with more than FRF 5 billion
at the end of 1996. At the end of
1995, SUEZ still had net debt of
FRF 4.5 billion and during 1996 had
to finance FRF 5 billion in real estate
losses. Positive treasury at the end of
1996 is mainly explained by the sale
of INDOSUEZ, as well as by other
efforts aimed at refocusing its
business during the year (sale of
GARTMORE, SALINS DU MIDI,
FONCIÈRE LYONNAISE,..) ;
• given the still difficult Paris real
estate market, SUEZ stepped up the
pace of its exit from this sector due to
be completed by the year 2001 by
entering into agreements with WHITEHALL (GOLDMAN
SACHS) on the sale of its entire portfolio of real estate receiv-
ables from third parties and its own real estate developments
for a net value of FRF 4 billion, reflected by a capital loss of
FRF 1 billion in the 1996 accounts. In three years, SUEZ
divided its net commitments by six, from FRF 14.1 billion at the
end of 1995 to FRF 4.8 billion at the end of 1996;
• in September 1996, SOCIÉTÉ GÉNÉRALE DE BELGIQUE,
a subsidiary in which SUEZ has an 63% interest, acquired the
interests of GROUPE BRUXELLES LAMBERT and ROYALE
BELGE in TRACTEBEL, thereby raising its shareholding from
39.8% to 64.2%. This reinforcement, which represented an
investment of around FRF 8 billion, was made for two reasons.
The strategic reason: SUEZ decided to develop its presence in
the sector of services to local authorities and infrastructures.
The financial reason: this operation has a positive impact on
SGB and SUEZ results;
• throughout 1996, the shareholder structure was modified.
Four groups, supporting its new
strategy now form the heart of the
shareholding structure: CRÉDIT
AGRICOLE, SAINT-GOBAIN, GROUPE
BRUXELLES LAMBERT and AXA-
UAP. The cross holding with ELF
AQUITAINE was terminated.
The 1996 business year ended
with a profit of FRF 843 million,
with current income rising 38% to
FRF 2,312 million. Net income for
1996 was still marked by the effect of
the real estate crisis -which had a
FRF 2,541 million negative effect
(compared to FRF 5,003 million in
1995)- and by a provisioning effort, in particular on the interest
in AXA-UAP, for FRF 500 million.
After having determined and commenced implementa-
tion of its strategy, reconstituted its margins of manoeuvre
and rediscovered the way to profits, SUEZ must now show its
will to create shareholders’ value. It is with this in mind that
the Board of Directors will propose to the Annual General
Meeting that its own shares (4.96% of capital) be cancelled
and that the conditions of the merger of SUEZ and
LYONNAISE DES EAUX be approved in order to create a
world-wide utility group.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1993 1994 1995 1996
Equity 50,665 46,089 41,460 42,735
Net profit (Group share) 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
Consolidated key figures (FRF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 0 0.0 0 0.0
Estimated value at 31.12.1996 0 0.0 740 29.2
49
Société Générale de Belgique
SOCIÉTÉ GÉNÉRALE DE BELGIQUE, Belgium's largest holding company, holds interests in seven international companiesin 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
again improved its operating income, despite the persistent
economic crisis.
The year's largest transaction was the purchase in
September 1996 of more than 3 million TRACTEBEL shares from
ELECTRAFINA and ROYALE BELGE for BEF 49.6 billion, thereby
raising GÉNÉRALE's percentage interest in TRACTEBEL from
39.8% to 64.2%. GÉNÉRALE followed its acquisition by maintai-
ning the share price on the Stock Market and the issuing of puts.
At the beginning of 1997, TRACTEBEL and its POWERFIN subsi-
diary decided to merge their activities, which would bring
GÉNÉRALE's interest in TRACTEBEL down to 50.3%.
GÉNÉRALE also invested in GÉNÉRALE DE BANQUE
and in FORTIS AG at the time of their respective increases
in capital, in order to maintain its percentage interest in
both.
During the year, all of the interests in ELF AQUITAINE and
in COMPAGNIE DE SUEZ were sold. In February 1997,
GÉNÉRALE sold its interest in ACCOR to institutional investors.
TRACTEBEL, GÉNÉRALE DE BANQUE and FORTIS AG
which, together represent 81% of the portfolio, saw their results
rise sharply in 1996.
UNION MINIÈRE closed 1996 with a positive net income
for the first time since 1990, while RECTICEL, still slightly in
the red, continued its turnaround which began during the
second half of 1996. COFICEM/SAGEM, in which GÉNÉRALE
has maintained its 20% interest, also made a positive contribu-
tion to the Group's results.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1993 1994 1995 1996
Equity 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
Consolidated key figures (BEF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
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
51
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 Belgium, the Group continued its multi-partnership
policy while reinforcing its relationships with brokerage firms.
The distribution of insurance products by exclusive intermedia-
ries continues to be managed by the Group's UAB subsidiary
and represents 7% of insurance turnover from individuals.
Since January 1997, a single sales organization common to
banking and to insurance has been managing the insurance
brokers and appointed agents of the
bank IPPA. Collaboration agreements
have been signed with large Belgian
banks, among them GÉNÉRALE DE
BANQUE, BANQUE BRUXELLES
LAMBERT and CRÉDIT COMMUNAL
DE BELGIQUE. The partnership with
LA POSTE (Belgian post services) is
beginning to bear fruit and the crea-
tion of two captive insurance compa-
nies, held in equal parts by ROYALE
BELGE and LA POSTE, gives the
Group direct access to a distribution
channel destined to become larger.
In February 1997, ROYALE BELGE signed a sales co-operation
agreement with the future LA FAMILLE-ASSUBEL Group in
order to participate in its development. The latter is expected to
become the leader in its market.
In the Netherlands, after taking control of UAP-NIEUW-
ROTTERDAM, a newly merged firm, ROYALE BELGE continued
its efforts to restructure its multi-branch business.
With a view to growing in Northern Europe, ROYALE
BELGE acquired the Swedish non-life branch of UAP France.
In 1996 this entity had BEF 810 million in turnover and closed
the year with a profit of nearly BEF 37 million.
In 1996, the consolidated turnover of ROYALE BELGE
rose 2.8% to BEF 112.4 billion, of which 61% came from
Belgium, 35 % from the Netherlands and 4 % from
Luxembourg. In Belgium, turnover from life insurance
products rose 3.6 %, while non-life turnover remained
unchanged overall, despite the weak market for individuals.
The weak growth of turnover in the Netherlands was the
result of rate adjustments in non-life
insurance and the abandoning of
certain product lines with insuffi-
cient profits.
As has been the case in the
past, the contribution of the Belgian
insurance sector to consolidated
income remained dominant.
Technical results improved in all
branches, both in direct insurance
and in policies sold through brokers.
Rationalization efforts reduced
operating costs by nearly 1%. Results
from Dutch and Luxembourg insu-
rance activities also improved.
The Group's share of consolidated income was BEF 11.3 bil-
lion, including extraordinary income of BEF 4.2 billion
from capital gains on the sale of TRACTEBEL shares.
Recurring income rose 14.8% to BEF 7.1 billion, compared to
BEF 6.2 billion in 1995. Return on shareholders' equity,
which was nearly BEF 62 billion at the end of the year,
was consequently 12.6%. Consolidated unrealized gains on
listed securities and on buildings were BEF 64 billion,
compared to BEF 51.1 billion at the end of 1995 and
BEF 28 billion at the end of 1994.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1993 1994 1995 1996
Equity 50,052 51,696 56,436 61,899
Premium income 69,759 75,123 109,353 112,436
Net profit (Group share) 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
Consolidated key figures (BEF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 98 3.9 452 17.8
Estimated value at 31.12.1996 2,465 97.3 4,013 158.4
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
* including BEF 2,287 million allocation to Provisions for Banking Risks
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:
• extending the local bank concept to neighbouring countries
(Germany, France, Luxembourg, the Netherlands and the
United Kingdom);
• a direct presence in the largest financial centres (London,
New York, Singapore and Hong Kong);
• a network of more than 5,000 correspondent banks world-
wide.
The turnaround which began at the end of the 1991-1992
business year continued in Belgium and abroad:
• in Belgium, the Bank carried on with its "Network 2000"
pluriannual plan, which is aimed at transforming all of its oper-
ating offices into business units focused on commercial activity.
It also continued setting up "main branches" with greater
authority in terms of
loans, international trade
and financial transac-
tions;
• internationally, the
Bank enlarged its
network: it signed a co-
operation agreement with VYSYA BANK (India), opened a
subsidiary in Labuan (Malaysia), an office in Dublin (Ireland),
acquired an 11% interest in AMERBANK (Poland), became
present in the Czech Republic (PATRIA FINANCE) via MC-BBL
EASTERN HOLDINGS and opened representative offices in
Moscow and Johannesburg. In 1996, the foreign network
accounted for 38.9% of consolidated net income, compared with
27.9% in 1995;
• as for financial markets, the Bank created BBL ASSET
MANAGEMENT SINGAPORE Ltd, an asset management
company for BBL unit trusts invested in South-East Asia.
Moreover, BBL FRANCE took a majority interest in FERRI S.A.,
one of the largest brokerage firms in Paris.
These favourable developments produced a consolidated
net income of BEF 10,291
million, compared with
BEF 8,941 million the
previous year (i.e. a rise
of 15.1%). Income per
share rose 11.7%, from
BEF 472.6 to BEF 527.9.
Consolidated key figures (BEF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 0 0.0 149 5.9
Estimated value at 31.12.1996 0 0.0 1,905 75.2
1993 1994 1995 1996
Equity 67,578 71,671 79,686 89,381*
Interests and similar revenue 198,122 179,717 202,603 214,925
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
52
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53
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, ownershipand operation of self-storage businesses, real estate securitization and provision of building sites.
The loss of confidence in real estate investments following
the crises affecting most European capitals and historically low
inflation levels have postponed any recovery in the market.
The postponement of the German government's move to
Berlin destabilized the local market in a way which is expected
to affect, for the medium-term, the profits on real estate invest-
ments made on large scale since the fall of the Wall. The
BERNHEIM Group therefore decided to book a BEF 375 million
provision for the expected cash-drain of its Berlin projects.
The Group's other real state development activities are
going according to plan: the buildings in Prague and Budapest
are fully rented; in Brussels, the projects at Avenue de
Cortenbergh, Boulevard de la Plaine, Rue Joseph II and Avenue
des Communautés have begun.
INTERPARKING, in which BERNHEIM-COMOFI has a 50%
interest, continued its expansion strategy in the countries in
which it operates. At the end of 1996, the firm managed
211 parking lots and more than 100,000 parking spaces, after
the purchase of CODEPARC in France.
The first year of operations at BEFIMMO SICAFI, in which
BERNHEIM-COMOFI has a 33.9% share, was favourable;
its building portfolio was worth BEF 6.7 billion at 31 December
1996.
The BERNHEIM-COMOFI Group acquired a 50% interest in
ISM in order to develop its self-storage business (rental of small
secured storage areas to individuals, merchants and companies)
in continental Europe. The Group decided to open its first site
in Dusseldorf.
As far as securitization is concerned, assets under
management totalled BEF 14.7 billion for an issued value of
BEF 11.2 billion.
Business in the development plot sector was down as a
result of delays in obtaining new permits.
The provisions for the projects in Berlin and the lack of
strength in the real estate market led the Group to show a loss
of BEF 160 million in 1996. The Group is expected to return to
profitability in 1997.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1993 1994 1995 1996
Equity 4,361 4,470 4,586 4,132
Turnover 1,921 1,030 431 199
Net profit (Group share) 443 400 426 (160)
Earnings per share (BEF) 149.8 135.5 144.1 (54.3)
Gross dividend per share (BEF) 87.5 94.3 100.0 100.0
Consolidated key figures (BEF million)Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 64 2.5 -45 -1.8
Estimated value at 31.12.1996 1,083 42.7 1,313 51.8
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% subsidiaryBanque WORMS and its interest in the capital of BNP.
In France, where it realizes about 40% of its turnover,
the Group is active in all branches of insurance.
Outside of France, the Group's activities are organized
around four profit centres:
• in Central and Eastern Europe around COLONIA KONZERN
(CKAG);
• in Benelux, around ROYALE BELGE, the second largest
insurer in Belgium;
• in Great Britain and Ireland, around SUN LIFE, one of
the largest British life insurance companies, in which UAP
retains a 60% interest, after the listing on the London Stock
Market of 40% of its capital in 1996, and PROVINCIAL
INSURANCE, a damage insurance company;
• other countries and related activities (assistance, European
life insurance, coverage of large corporate risks and transport
insurance).
Consolidated turnover (Insurance and Reinsurance,
Financial Services and Holding companies) was FRF 163.5 bil-
lion, down 3.4% from 1995 as a result of the deconsolidation of
SCOR, its reinsurance subsidiary and the sale of two German
subsidiaries. On a comparable basis,
this figure rose 1.8%.
Consolidated turnover from
Insurance in 1996 was FRF 152 bil-
lion, almost equally divided between
Life and Non-Life. Life rose 5.3 %,
with the recovery of the British
market offsetting the fall in single
premium contributions in France. Non-Life insurance turnover
rose by 3.2%. Total turnover in Reinsurance and Financial
Services - Holding companies (mainly Banque WORMS in
France, the IPPA bank in Belgium and KÖLNISCHE
BAUSPARKASSE in Germany) was FRF 11.5 billion.
At the end of 1996, AXA and UAP announced their plans
to merge to form the world's second largest insurance company
and the largest asset management company.
The accounts of the UAP Group, prepared in view of
the merger with AXA, include extraordinary negative items of
FRF (7,585) million:
• as a result of the UAP Group ceasing to exist : deconsolidation
of BNP, provisioning of real estate companies and cancellation
of positive deferred taxes for FRF (3,842) million;
• the re-valuation of asset and liability items in life insurance
and damage insurance in France, damage insurance in Italy
and Banque WORMS for FRF (3,743) million.
Given a net profit (excluding extraordinary items) of
FRF 1,139 million, the Group's share of net income was
FRF (6,446) million in 1996, compared to FRF (2,065) million
in 1995. UAP will not pay a dividend
for the 1996 financial year. The UAP
shareholders having brought their
shares to the AXA offer in 1997
will receive a FRF 7.5 dividend
per AXA-UAP share, equivalent to a
FRF 3.0 dividend per UAP share.
54
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1993 1994 1995 1996
Equity (before allocation) 33,649 40,386 35,624 32,024
Premium income 141,480 151,606 157,644 152,548
Net profit (Group share) 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 -
Consolidated key figures (FRF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 0 0.0 19 0.7
Estimated value at 31.12.1996 0 0.0 810 32.0
Imétal
The IMÉTAL Group has three core industrial areas : building materials (terracotta tiles, bricks, slatesand industrial ceramics), industrial minerals (kaolin, refractory fire clay, and clay for ceramics and porcelain)
and metals processing (structural and mechanical tubes and bimetal wires).
IMÉTAL had a good year in 1996 despite unfavourable
economic and climatic conditions in most of the Group's busi-
nesses. Turnover was FRF 8,100 million, a 4.7% rise over 1995
and stability on a constant group perimeter and exchange rate
basis.
IMÉTAL continued its dynamic internal and external
growth in its three businesses, with, in particular the opening
of four new terracotta factories and new acquisitions in tech-
nical ceramics and industrial minerals. Moreover, the Group
completed its exit from non-strategic activities, including the
sale of the remainder of its interest in ERAMET and a petro-
leum products trading business.
In 1996, most of the growth and improvement in results
was due to Industrial Minerals. This branch benefited from a
robust refractory market and its
strategic reinforcement with the
acquisition of GEORGIA MARBLE in
the United States at the end of 1995
and PLIBRICO, a European refractory
manufacturer, in 1996.
The stability of turnover in Building Materials, excluding
the effect of the variation of perimeter resulting from the decon-
solidation of the tile business and the acquisition of LOMBA,
a manufacturer of technical ceramics, reflected this branch's
resistance to difficult economic and climatic conditions in the
French construction sector.
Sales in the Metals Processing branch rose by 1.9%, but fell
by 1.4% on a constant perimeter and exchange rate basis.
Business was strong in mechanical tubes, although prices were
down overall. Sales of bi-metallic wires for the telecommunica-
tions market continue to show strong growth.
The Group's share of net current income was
FRF 606 million, up 10% over 1995. In view of extraordinary
income of FRF 8 million, the result of capital gains on the sale
of assets offset by the negative impact
of allocations to provisions and extra-
ordinary charges, the Group's share of
net income was FRF 614 million,
compared to FRF 596 million in
1995.
56
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1993 1994 1995 1996
Equity 4,672 5,038 5,329 5,800
Turnover 6,291 7,510 7,737 8,100
Net profit (Group share) 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
CONSOLIDATED KEY FIGURES (FRF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 0 0.0 310 12.2
Estimated value at 31.12.1996 0 0.0 5,759 227.3
57
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 C02 business was fair in 1996, although bulk volumes
fell slightly from 1995 levels, which had been favourably influ-
enced by a hot summer. Dry ice turnover was relatively stable,
as was bottling turnover, despite weakness in the hotel, restau-
rant and cafe sector.
ACP decided to invest in a new liquid CO2 plant at the
Tertre site in Belgium. This unit will have a yearly production
capacity of 120,000 tons and will be operational as of the begin-
ning of 1998. This additional capacity will enable ACP to satisfy
the considerable demand for CO2 in the summer and to aim its
sights at a more geographically diversified market (France and
Southern and Eastern Europe).
AGT's profitability continued to improve in 1996; this
company contributed BEF 100 million to ACP's consolidated
results.
ACP is confident about its future developments and will
propose to the next Annual General Meeting the payment of
dividends amounting to BEF 100 million.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated key figures (BEF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
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
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
Dividends - - 1,482 100
58
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
and production interruptions brought about by the tuning of the
additional press installed at the end of 1994, 1996 saw more
regular and harmonious use of the new investment and, as a
result, the resumption of growth in business volume and
productivity gains; value added rose 3% over 1995.
Armed with a high-tech tool, as well as a latest generation
filmless engraving machine added at the end of 1995,
HELIO CHARLEROI consolidated its market share and financial
health while reducing its indebtedness by BEF 184 million,
a pace which exceeded original forecasts.
Pre-tax income, up for the fifth straight year, was
BEF 99 million compared to BEF 49 million in 1995. This result
was reached despite accelerated amortization on new invest-
ments, which had a negative effect on pre-tax income of some
BEF 70 million, as well as provisions of BEF 20 million for
major repairs.
Consolidated key figures (BEF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 8 0.3 31 1.2
Estimated value at 31.12.1996 157 6.2 175 6.9
1993 1994 1995 1996
Equity 183 192 230 329
Turnover 1,553 1,507 2,229 2,016
Net profit (Group share) 5 20 49 81
Dividends - - - -
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
60
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
other companies during the year increased its presence in the
industrial sector.
ORIOR's interest in the capital of RAPELLI was increased
from 80% to 100%. Moreover, the Group's share in the capital
of FREDAG AG rose from 56.4% at the end of 1995 to 68.0%
in 1996. ORIOR's presence in the Swiss market was reinforced
by the acquisition of RIEDER. This investment enabled the food
group to consolidate its market share in the pork pastry and
fresh pasta markets while offering interesting industrial
and commercial synergy possibilities. The 1996 business year
saw the beginning of the involvement in China, with the launch
of a project to build a factory specialized in the processing of
poultry products, which will open in the second half of 1997.
ORIOR's intervention strategy was materialized by the
taking of a 71.3% interest in the capital of STERN COMPAGNIE
S.A., the parent company of a Geneva-based group which
manufactures top-of-the-line watch dials and components. This
commitment, made in collaboration with management and with
a syndicate of banks, represents an investment in capital and
loans of CHF 15.3 million.
Despite a generally unfavourable environment (fall in
household consumption in Switzerland, lower sales in the
meat industry and the crisis of confidence brought about by
the mad cow disease), the food group saw its sales grow
1.3 % on a constant perimeter basis and its net consolidated
operating income remained unchanged from the previous
year (CHF 12.4 million).
The Group's share of net consolidated operating income
was CHF 10.1 million, up 30 % from the previous year. All of
this growth came from the agri-food business, whose contribu-
tion, given the year's acquisitions, was CHF 10.5 million
compared to CHF 7.1 million in 1995.
The Group's share of the net consolidated income of ORIOR
was CHF 6.8 million (1995: CHF 12.4 million), after accounting
for non-operating and net extraordinary items.
The payment of a dividend of CHF 33 per share will be
proposed to the Annual General Meeting (i.e. a total distribu-
tion of CHF 7.1 million). This dividend represents a 70% pay-
out ratio in relation to the year's consolidated net operating
income.
Consolidated key figures (CHF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 0 0.0 30 1.2
Estimated value at 31.12.1996 0 0.0 1,025 40.4
1993 1994 1995 1996
Equity 147.5 162.3 178.5 178.1
Net profit (Group share) 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
61
Suzy
At the beginning of 1997, NPM/CNP acquired the SUZY Group. Until that time, this Group, active in the waffleand biscuit sector, belonged to GRAND METROPOLITAN.
The SUZY Group is active through three entities:
• SUZY (located in Buizingen, Belgium) manufactures and sells
waffles under its own brand and for mass distribution.
The SUZY brand, the only well-known brand in the waffle
sector, began its turnaround four years ago and currently has
a market share of roughly 20%. The company will continue
handling the distribution in Belgium of the HAAGEN DAZS and
GREEN GIANT products for the next two years.
• DESOBRY (located in Tournai, Belgium) manufactures biscuit
assortments for distributor brands and is one of the largest
players in the market. Its efforts are focused in exporting and
the company has considerable turnover in France and in the
United States.
• DRIEHOEK (located in Alkmaar, the Netherlands) makes
several types of industrial pastries (cakes, "kano's," etc.),
mainly for mass distribution. A small part of its production is
sold under its own brand name.
Results for 1996 were not meaningful, as they were
affected by charges which were not directly related to
operations.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated key figures (BEF millions)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 n.a. n.a. n.a. n.a.
Estimated value at 31.12.1996 n.a. n.a. n.a. n.a.
1993 1994 1995 1996
Equity n.a. n.a. n.a. 51
Turnover n.a. n.a. n.a. 1.446
Net profit (Group share) n.a. n.a. n.a. (27)
Dividends n.a. n.a. n.a. -
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63
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,
signals the birth of the first audio-visual European group with
interests in 19 television stations and about 20 radio stations in
10 European countries.
In 1996, advertising revenues at the M6 television station
grew faster than those of any other station in France and M6
obtained a 12.5% market share. In Germany, RTL TELEVISION,
of which 89% is held by the CLT-UFA Group, saw profits rise
and its leadership role maintained in Germany.
In 1996, CLT also strengthened its presence in the
Netherlands in the HOLLAND MEDIA GROEP (HMG) by increa-
sing its interest in the RTL4 station from 47.3% to 60.8%.
In the United Kingdom, having obtained the right to operate the
5th and last British television ground network, CLT and its part-
ners (UNITED NEWS AND MEDIA, PEARSON and WARBURG
PINCUS) launched CHANNEL 5 in March 1997.
The Group also invested in new markets in Eastern Europe
with the December 1996 launch of the Polish-language RTL7
generalist station, which is broadcasted by satellite and cable.
In addition to its activities in the television advertising
sector, the Group entered the French pay-TV market by
participating in the creation and launch last December
of TPS, a group of digital generalist and topical
stations which also offer interactive services.
The contribution of UFA's 37.5% interest in PREMIÈRE, number
one in pay TV in Germany, also consolidated the Group's posi-
tion in Europe's largest market.
In France, a difficult market, RTL maintained its market
share and came in first place among French multi-topic radio
stations for the 15th consecutive year. The Group, also present in
FUN RADIO and in RTL2, increased its interest in the later from
46.6% to 100%.
In Germany, the 1997 contribution by UFA of its large local
and regional radio networks consolidated the Group's position
on this market. In the spring of 1996, CLT acquired an interest
in two stations in Sweden, 104.7 RTL and BANDIT 105.5,
which in September became leaders in their market.
Start-up losses and pre-launch expenses incurred by the
Group's new projects and costs incurred in the closing of CLUB
RTL (the German-speaking pay TV digital television project which
was abandoned due to the particularly difficult and uncertain
state of the German market) were offset by extraordinary
gains from the sale of the TÉLÉSTAR press group
(LUF 6.7 billion) and the sale of the building which used to
house CLT's headquarters in Luxembourg (LUF 0.9 billion).
In 1996, the Group's share of estimated net
income rose to LUF 3,372 million from
LUF 3,335 million in 1995.
Consolidated key figures (LUF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 0 0.0 87 3.4
Estidmated value at 31.12.1996 0 0.0 2.632 103.9
1993 1994 1995 1996
Equity (before profit allocation) 12,675 14,550 18,021 23,472
Turnover 75,589 84,768 91,192 92,766
Net profit (Group share) 3,005 3,307 3,335 3,372
Dividends 1,212 1,333 1,437 1,461
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
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
DUPUIS' businesses.
The core business - the publishing of albums and comic
strips- maintained its excellent results thanks to the ongoing
enlargement of its catalogue of 1,200 titles by 60 to 70 new
titles annually and as a result of its wide-ranging sales efforts,
tailored to each of the various markets and collections.
In 1996, the HUMOUR LIBRE collection -which, as its name
suggests, is more specifically geared to humour- was created.
Journal de Spirou sales rose sharply and are currently at
about 75,000 copies per issue ; this medium is highly effec-
tive as a promoter of both reading and comic strips among its
young audience.
The diversification efforts undertaken by ÉDITIONS
DUPUIS to diversify beyond the frontiers of its core business -
such as the licensing and publishing of multimedia products,
the sale of publishing rights, the distribution of other publishers'
work and mail order sales- made a significant contribution to
the improvement in the Group's consolidated income, which
in 1996 totalled BEF 77 million, up BEF 15 million over 1995,
despite the fact that MEDIATOON start-up losses weighed down
income by some BEF 20 million. The latter, in which ÉDITIONS
DUPUIS holds a 100 % interest since January 1997 following
the purchase of ASTRAL's shares, intends to build a portfolio
of cartoon series in order to improve the presence of DUPUIS
catalogue heroes on television screens world-wide; to do so,
MEDIATOON is counting on the cartoon production studio
which ÉDITIONS DUPUIS has created in Paris.
As a result of its profit growth and diversification
strategy based on a catalogue of great comic strips, ÉDITIONS
DUPUIS looks to the future with confidence. The year's divi-
dend was raised to BEF 75 million.
Consolidated key figures (BEF million)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 12 0.5 42 1.7
Estimated value at 31.12.1996 381 15.0 424 16.7
1993 1994 1995 1996
Equity (before profit allocation) 1,022 686 692 762
Turnover 1,454 1,637 1,675 1,799
Net profit (Group share) 59 86 62 77
Dividends 28 30 36 75
65
Artemis
The ARTEMIS Group acts as trader and investor in high-quality works of art (paintings, drawings and engravings of modernand 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 sales from stock were not as numerous as they should be
and were down 35 % to USD 8.5 million. These included a
superb painting by Burne-Jones sold to the Dallas Museum of
Fine Arts and a wonderful flower painting by Ambrosius
Bosschaert the Elder sold to a private collector in America.
However, ARTEMIS was entrusted with the sale of important
paintings on commission, of which a magnificent still-life by
Cézanne, the most expensive work ever sold by ARTEMIS,
bought by the Getty Museum. These commissions contributed
most significantly to the result of the year with a total of USD
1.9 million, compared to USD 0,2 million last year.
The Group purchase of C.G. BOERNER has continued to
contribute significantly to the Group's results. Some important
prints and drawings were sold during the year and special
mention must be made of two rare sets of German romantic
prints which were sold to museums in Chicago and Milwaukee.
The Group's interest in Antiquities is represented by
ROBERT HABER & ASSOCIATES in New York. This market has
been very slow but the New York Fair in the autumn produced
a satisfactory result. However, there does not appear to be any
sign of a resurgence in activity.
ARTEMIS increased its office space in New York and now
houses both C.G. BOERNER and itself in the new premises.
The first exhibition of Roman Views held in the 1996-97 finan-
cial year sold well. At the same time, the space in London has
been reduced by letting off one and a half floors of the building
in Duke Street.
The operating result for the Group was a profit of
USD 336,522 before the write-down of the London properties to
their market value. After this USD 1.7 million write-down, the
loss was USD 1,565,121. No dividend was decided by the
Annual General Meeting.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1993 1994 1995 1996
Equity 57,947 57,607 52,377 50,735
Turnover 8,873 12,335 13,161 8,504
Net profit (Group share) 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
Consolidation key figures (USD thousand)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contribution to :
Restricted Consolidationconsolidation (transitive)
Mio BEF BEF/share Mio BEF BEF/share
Operating result 1996 0 0.0 0 0.0
Estimated value at 31.12.1996 234 9.2 234 9.2
66
NPM/CNPN A T I O N A L E P O R T E F E U I L L E M A A T S C H A P P I JC o m p a g n i e n a t i o n a l e à p o r t e f e u i l l e
Financial supplement – Annual Report 1996
67
NPM/CNP
N A T I O N A L E P O R T E F E U I L L E M A A T S C H A P P I JC o m p a g n i e n a t i o n a l e à p o r t e f e u i l l e
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
68
CONSOLIDATED ACCOUNTS
INTRODUCTION
In accordance with the Royal Decree concerning consolidated accounts and following the agreementssigned in 1990 - and extended in 1996 - between the POWER and FRÈRE-BOURGEOIS/NPM-CNPgroups, that resulted in the pooling of their holdings in PARGESA, NPM/CNP enlarged the scope ofits consolidation by equity accounting for PARJOINTCO (which consolidates PARGESA and thusincludes GBL and PARFINANCE) and the shareholdings of at least 20 % in companies held by theGroup.
However, the company continues to publish restricted consolidated accounts that fully consolidatefully owned financial companies, AGESCA NEDERLAND (89.54 % held) and its subsidiary N.F.ASSOCIATES and proportionally consolidate the statutory accounts of PARJOINTCO, GROUPEJEAN DUPUIS and CENTRE DE COORDINATION DE CHARLEROI, jointly controlled.
The restricted consolidated accounts thus include, other than the results of financial integratedcompanies, only the dividend flows (compared to the results in the consolidated accounts) as far asPARGESA and the more than 20 % held companies are concerned (ACP, ARTEMIS - until 1995 - ,BERNHEIM-COMOFI, ÉDITIONS DUPUIS, HELIO CHARLEROI, PETROFINA, ROYALEBELGE, 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 thesecond 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 January1996. In the financial statements as of 30 June 1996, SCI & ASSOCIÉS was no longer included inthe consolidation of the NPM/CNP Group and, consequently, the dividend not eliminated.Following comments from Control Authorities, this accounting practice was modified for theyearly consolidated accounts ; an amount equal to the dividend received was recorded as profitfrom equity accounted companies and the dividend eliminated ; this did not affect the total profit ofNPM/CNP, the only change being a reclassification from dividend to profit from equity accountedcompanies.
� The representatives of NPM/CNP at the Board of Directors of ARTEMIS have decided not tosolicit the renewal of their mandates at the Annual General Meeting ; consequently, NPM/CNP isno longer in a position to influence the management of ARTEMIS and this shareholding has nolonger been equity accounted since 1996.
� GROUPE JEAN DUPUIS, the holding company of the Group of the same name, was not includedin 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 wastherefore judged opportune and more in line with the real control exercised by NPM/CNP toinclude this company in the restricted consolidated accounts from 1995 onwards.
69
CONSOLIDATED ACCOUNTS
CONSOLIDATED KEY FIGURES(BEF thousands except for data per share)
Consolidated accounts Restricted consolidated accounts
1996 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
� minority interests 2,070,237 1,646,310 1,608,908 1,639,022 1,343,077 1,344,107
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
� operating income 3,935,461 3,604,356 3,239,280 2,616,402 2,589,112 2,406,590� capital result 1,147,203 (1,240,701) 148,602 1,209,772 (488,816) 403,853
including amortization of goodwill (transitively) (1) (769,204) (403,248) (460,935) (821) - -
� minority interests 170,661 88,318 91,340 54,945 51,933 54,571
GROSS DIVIDENDS 2,584,680 2,552,188 2,485,826 2,584,680 2,552,188 2,485,826
NUMBER OF SHARES IN ISSUE 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 155.31 142.24 127.84 103.25 102.17 94.97
� capital result 45.27 (48.96) 5.86 47.74 (19.29) 15.94including amortization of goodwill (transitively) (1) (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 subsidiariesand by PARJOINTCO, PARGESA, GBL, PARFINANCE and the sub-holdings controlled by those groups.
70
CONSOLIDATED ACCOUNTS
CONSOLIDATED BALANCE SHEETS(BEF thousands)
ASSETS Consolidated accounts Restricted consolidated accounts
1996 1995 1994 1996 1995 1994
FIXED ASSETS 46,390,729 49,787,068 50,678,292 45,244,680 50,441,983 51,271,233I. Formation expenses - - - - - -II. Intangible assets - - - - - -III. Goodwill 1,998,161 2,199,310 2,505,931 - - -IV. Tangible fixed assets 220,486 76,737 14,200 220,689 76,986 14,505
A. Land and buildings 20,541 28,539 - 20,541 28,539 -B. Plant, machinery and equipment - - - - - -C. Furniture and vehicles 17,323 9,032 10,849 17,526 9,281 11,154D. Leasing and other similar rights - - - - - -E. Other tangible assets - - - - - -F. Assets under construction and advance
payments 182,622 39,166 3,351 182,622 39,166 3,351V. Investments 44,172,082 47,511,021 48,158,161 45,023,991 50,364,997 51,256,728
A. Equity-accounted companies 32,424,814 35,151,974 35,236,325 - - -1. Shares 32,349,814 33,303,978 33,463,329 - - -2. Bonds 75,000 1,847,996 1,772,996 - - -
B. Other companies 11,747,268 12,359,047 12,921,836 45,023,991 50,364,997 51,256,7281. Stocks and shares 11,747,262 12,359,040 12,921,766 44,948,985 48,516,994 49,483,6622. Bonds and other amounts receivable 6 7 70 75,006 1,848,003 1,773,066
CURRENT ASSETS 23,464,663 13,423,037 12,842,227 23,520,320 13,498,005 12,782,204VI. 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 9,201,745 3,577,524 3,390,131 9,070,976 3,579,505 3,305,046A. Trade receivables 7,023 7,045 - 7,023 7,045 -B. Other receivables 9,194,722 3,570,479 3,390,131 9,063,953 3,572,460 3,305,046
IX. Short-term investments 7,006,513 6,050,957 7,622,497 7,189,652 6,079,693 7.622.511A. Own shares 872,095 - - 872,095 - -B. Other investments and deposits 6,134,418 6,050,957 7,622,497 6,317,557 6,079,693 7,622,511
X. Cash at bank and in hand 7,161,654 3,633,138 1,708,427 7,164,153 3,677,372 1,733,213XI. Deferred expenses and accrued income 94,751 161,418 121,172 95,539 161,435 121,434
TOTAL ASSETS 69,855,392 63,210,105 63,520,519 68,765,000 63,939,988 64,053,437
71
CONSOLIDATED ACCOUNTS
CONSOLIDATED BALANCE SHEETS(BEF thousands)
LIABILITIES AND EQUITY Consolidated accounts Restricted consolidated accounts
1996 1995 1994 1996 1995 1994
EQUITY 53,486,338 50,526,275 50,982,588 52,588,592 51,350,577 51,727,207I. Share capital 4,751,250 4,751,250 4,751,250 4,751,250 4,751,250 4,751,250
A. Issued capital 4,751,250 4,751,250 4,751,250 4,751,250 4,751,250 4,751,250B. Uncalled capital - - - - - -
II. Share premium account 42,824,428 42,824,428 42,824,428 42,824,428 42,824,428 42,824,428III. Revaluation reserves - - - - - -IV. Reserves 8,627,375 6,129,391 6,317,924 4,945,187 3,703,693 4,155,585V. Negative goodwill 226,029 222,231 221,811 149,459 149,459 72,884VI. Translation adjustments (2,942,744) (3,401,025) (3,132,825) (81,732) (78,253) (76,940)VII. Investment grants - - - - - -
MINORITY INTERESTS 2,070,237 1,646,310 1,608,908 1,639,022 1,343,077 1,344,107VIII. 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 24,000IX. A. Provisions for liabilities and charges 41,500 303,357 58,107 41,500 269,250 24,000
1. Pensions and similar obligations - - - - - -2. Tax provisions - - 21,500 - - 21,5003. Major repairs and maintenance - - - - - -4. Other liabilities and charges 41,500 303,357 36,607 41,500 269,250 2,500
B. Deferred taxation - - - - - -
LIABILITIES 14,257,317 10,734,163 10,870,916 14,495,886 10,977,084 10,958,123X. Amounts payable after more than one year 3,273,750 3,273,750 3,273,750 3,493,032 3,510,311 3,273,750
A. Financial liabilities 3,273,750 3,273,750 3,273,750 3,493,032 3,510,311 3,273,7501. Subordinated loans - - - - - -2. Unsubordinated debentures 3,273,750 3,273,750 3,273,750 3,273,750 3,273,750 3,273,7503. Finance leasing liabilities - - - - - -4. Amounts due to financial institutions - - - 219,282 236,561 -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 10,737,303 7,139,612 7,207,836 10,742,200 7,139,607 7,294,582A. Current portion of long-term debt - - 20,000 - - 20,000B. Financial debts 7,662,381 4,238,123 4,621,303 7,664,054 4,238,123 4,706,388
1. Amounts due to financial institutions 1,462,116 1,338,123 1,521,303 1,462,116 1,338,123 1,606,3882. Other loans 6,200,265 2,900,000 3,100,000 6,201,938 2,900,000 3,100,000
C. Trade payables 47,852 24,586 1,540 47,852 24,586 1,5401. Suppliers 47,852 24,586 1,540 47,852 24,586 1,5402. Notes payable - - - - - -
D. Advances received on contracts in progress - - - - - -E. Taxes, salaries and social charges payable 114,170 53,786 72,907 117,394 53,786 74,568
1. Taxes 108,775 48,954 72,398 111,999 48,954 74,0592. Salaries and social charges 5,395 4,832 509 5,395 4,832 509
F. Other liabilities 2,912,900 2,823,117 2,492,086 2,912,900 2,823,112 2,492,086XII. Accrued expenses and deferred income 246,264 320,801 389,330 260,654 327,166 389,791
TOTAL LIABILITIES AND EQUITY 69,855,392 63,210,105 63,520,519 68,765,000 63,939,988 64,053,437
72
CONSOLIDATED ACCOUNTS
CONSOLIDATED PROFIT AND LOSS STATEMENTS(BEF thousands)
EXPENSES Consolidated accounts Restricted consolidated accounts
1996 1995 1994 1996 1995 1994
A. Interest expense 444,711 465,452 394,838 456,316 475,140 399,966B. Other financial expense 155,541 283,405 101,897 156,916 290,532 102,130B.bis Amortization of goodwill 152,436 155,420 239,418 821 - -C. Miscellaneous goods and services 86,086 70,428 67,492 86,086 72,220 68,798D. Payroll expenses 79,538 79,369 58,023 96,522 83,452 61,941E. Miscellaneous operating expenses 7,249 4,362 4,269 7,249 4,362 4,269F. Depreciation and write-off of formation expenses,
tangible and intangible assets 3,003 6,241 8,857 3,049 6,297 8,942G. Write-down on 252,463 703,407 201,370 252,463 741,234 308,450
1. investments 249,330 556,403 - 249,330 594,230 107,0802. current assets 3,133 147,004 201,370 3,133 147,004 201,370
H. Provisions for liabilities and charges - 6,410 - - 6,410 -I. Losses on disposal of 16,295 17,709 53 16,295 17,709 53
1. tangible and intangible fixed assets 15 293 53 15 293 532. investments - 3,937 - - 3,937 -3. current assets 16,280 13,479 - 16,280 13,479 -
J. Exceptional expenses 105,754 136,000 185,244 105,754 136,000 167,639K. Taxes 59,219 29,791 23,772 65,970 29,791 29,726K.bis Losses of equity-accounted companies 37,528 47,997 - - - -L. Profit for the period 5,253,325 2,451,973 3,479,222 3,881,119 2,152,229 2,865,014L.bis Minority interests in profit 170,661 88,318 91,340 54,945 51,933 54,571L.ter Group share of profit 5,082,664 2,363,655 3,387,882 3,826,174 2,100,296 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 transfersC. Transfers to / (from) reserves 2,497,984 (188,533) 902,056 1,241,494 (451,892) 324,617
1. Consolidated reserves 2,497,984 (188,533) 902,056 1,241,494 (451,892) 324,617F. Profit to be distributed 2,584,680 2,552,188 2,485,826 2,584,680 2,552,188 2,485,826
1. Dividend to shareholders 2,584,680 2,552,188 2,485,826 2,584,680 2,552,188 2,485,826
5,082,664 2,363,655 3,387,882 3,826,174 2,100,296 2,810,443
73
CONSOLIDATED ACCOUNTS
CONSOLIDATED PROFIT AND LOSS STATEMENTS(BEF thousands)
REVENUES Consolidated accounts Restricted consolidated accounts
1996 1995 1994 1996 1995 1994
A. Revenue from investments 575,358 596,138 535,471 2,241,655 2,579,858 1,967,6681. Dividends 533,414 514,519 500,453 2,199,711 2,498,239 1,932,6502. Interests 41,944 81,619 35,018 41,944 81,619 35,018
B. Revenue from current assets 663,277 652,176 815,908 668,823 653,281 823,606C. Other financial revenue 182,514 95,620 152,947 204,249 95,620 159,392D. Revenue from services rendered 27,679 26,274 - 27,679 26,274 -E. Other operating revenue 44,338 47,003 23,282 44,338 47,003 23,282F. Reversals of depreciation or write-off of tangible
and intangible assets 16,277 35,137 16,277 - - -G. Write-back of 426,403 53,291 19 426,403 53,291 6
1. investments 324,441 - 19 324,441 - 62. current assets 101,962 53,291 - 101,962 53,291 -
H. Reversals of provisions for liabilities and charges - 2,500 24,741 - 2,500 24,741I. Profits on disposal of 1,080,054 538,995 937,133 1,373,408 538,995 1,014.5
1. tangible and intangible fixed assets 108 - - 108 - -2. investments 849,051 8,489 609,683 1,142,405 8,489 653,8773. current assets 230,895 530,506 327,450 230,895 530,506 360,638
J. Exceptional revenue 136,238 - - 136,238 - -K. Taxation adjustments and reversals of tax provisions
5,767 15,436 3,718 5,767 18,554 3,718K.bis Profits of equity-accounted companies 3,495,243 2,395,394 2,254,959 - - -L. Loss for the period - - - - - -L.bis Minority interest in loss - - - - - -L.ter Group share of loss - - - - - -
TOTAL REVENUES 6,653,148 4,457,964 4,764,455 5,128,560 4,015,376 4,016,928
Transfers and appropriationsA. Profit available for appropriation 5,082,664 2,363,655 3,387,882 3,826,174 2,100,296 2,810,443
1. Profit for the period 5,082,664 2,363,655 3,387,882 3,826,174 2,100,296 2,810,443
5,082,664 2,363,655 3,387,882 3,826,174 2,100,296 2,810,443
74
CONSOLIDATED ACCOUNTS
NOTES TO THE ACCOUNTS(BEF thousands)
ASSETS
III. GoodwillThis represents the excess of the cost of investments in subsidiaries and equity-accounted companies over the value of NPM/CNP’s shareof their net assets on the date of acquisition or initial consolidation and is analysed as follows :
Grossamounts
Cumulativeamortization
Consolidatednet amounts
at 31.12.96 at 31.12.96 1996 1995 1994PETROFINA 2,403,094 (792,078) 1,611,016 1,730,504 1,847,838ROYALE BELGE 546,152 (214,236) 331,916 410,202 595,813BERNHEIM-COMOFI 82,303 (27,820) 54,483 58,604 62,280ACP 786 (40) 746 - -Total 3,032,335 (1,034,174) 1,998,161 2,199,310 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 isprovided as appropriate.
V. Investments
A.1 Equity-accounted companies - Shares
Percentage of ownership Consolidated accounts1996 1995 1994 1996 1995 1994
PARJOINTCO 50.00 % 50.00 % 50.00 % 18,966,721 17,757,949 17,411,257PETROFINA 6.46 % 6.46 % 6.46 % 9,204,380 8,438,526 8,433,119SCI & ASSOCIÉS - 49.00 % 49.00 % - 2,504,777 2,307,999ROYALE BELGE 2.35 % 2.69 % 2.92 % 1,594,055 1,629,577 1,624,486BERNHEIM-COMOFI 21.69 % 21.69 % 21.69 % 960,140 1,061,437 1,032,431ACP 28.32 % 28.12 % 28.12 % 408,818 353,496 735,355TRANSCOR 47.59 % 47.59 % 47.59 % 680,941 596,246 719,332GROUPE JEAN DUPUIS - - 50.00 % - - 660,237- ÉDITIONS DUPUIS 50.00 % 50.00 % - 380,873 355,625 -- HÉLIO CHARLEROI 25.00 % 25.00 % - 82,236 57,483 -- Others 50.00 % 50.00 % - 71,650 68,618 -ARTEMIS - 31.14 % 28.92 % - 480,244 539,113Total 32,349,814 33,303,978 33,463,329
A.2 Equity-accounted companies - Bonds
Consolidated accounts1996 1995 1994
- SCI & ASSOCIÉS : 2,940,000 bonds (49 %), 4 %, each with a nominal value FRF 100and redeemable on 20 December 1998 for 10 SCI & ASSOCIÉS shares. - 1,772,996 1,772,996
- HÉLIO CHARLEROI 10.4 % subordinated loan. 75,000 75,000 -Total 75,000 1,847,996 1,772,996
75
CONSOLIDATED ACCOUNTS
B.1 Other companies - Stocks and sharesThis mainly includes :
Number of shares heldConsolidated accounts Restricted consolidated accounts
1996 1995 1994 1996 1995 1994ACIDE CARBONIQUE PUR - - - 28,316 28,121 28,121ARTEMIS 299,592 - - 299,592 296,953 275,748BERNHEIM-COMOFI - - - 640,606 640,606 640,606CAIM - 47,000 47,000 - 47,000 47,000COBEPA 1,165,435 1,165,435 1,165,435 1,165,435 1,165,435 1,165,435COMPAGNIE GÉNÉRALE DES EAUX 1,115,335 1,115,335 1,115,335 1,115,335 1,115,335 1,115,335CPC SOFINIM - - 29,250 - - 29,250ELF AQUITAINE 1,296,695 1,296,695 1,296,695 1,296,695 1,296,695 1,296,695ESPIRITO SANTO FINANCIAL HOLD. 263,474 2,047,169 2,047,169 263,474 2,047,169 2,047,169GROUPE JEAN DUPUIS - - - - - 150,000- ÉDITIONS DUPUIS - - - 639,187 639,187 -- HÉLIO CHARLEROI - - - 100,000 100,000 -HEXANE (L’ÉVENTAIL) 210 - - 210 - -PARGESA registered shares - - - 544,694 544,694 544,694PARGESA bearer shares - - - 396,250 396,250 396,250PARIBAS - 151,514 151,514 - 151,514 151,514PETROFINA - - - 1,501,078 1,501,078 1,501,078ROYALE BELGE - - - 376,263 429,688 467,900SCI & ASSOCIÉS - - - - 52,432,054 52,432,054SOCIÉTÉ GÉNÉRALE DE BELGIQUE 1,689,185 1,689,185 1,689,185 1,689,185 1,689,185 1,689,185TRANSCOR - - - 7,439 7,439 7,439
B.2 Other companies - Bonds and other amounts receivable
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- SCI & ASSOCIÉS : 2,940,000 ORA 4 %1993-1998 - - - - 1,772,996 1,772,996
- HÉLIO CHARLEROI 10.4 %subordinated loan - - - 75,000 75,000 -
- Other amounts receivable 6 7 70 6 7 70Total 6 7 70 75,006 1,848,003 1,773,066
VIII. Amounts receivable within one year
B. Other receivables
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- Tax receivables 543,110 509,341 501,198 543,110 509,341 501,198- Loans to associated companies 8,329,829 3,025,000 2,669,920 8,199,060 3,025,000 2,584,960- Receivables related to shares sold 302,842 - 159,197 302,842 - 159,197- Others 18,941 36,138 59,816 18,941 38,119 59,691Total 9,194,722 3,570,479 3,390,131 9,063,953 3,572,460 3,305,046
IX. Short-term investments
A. Own sharesAt 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 of89,975. Of these own shares 15,213 were held by NPM/CNP, 184,752 by INVESTOR, and 279,904 by FINGEN. The dividendsreceived on these shares have been eliminated from the (restricted) consolidated accounts.
B. Other investments and depositsConsolidated accounts Restricted consolidated accounts
1996 1995 1994 1996 1995 1994- Shares and bonds 3,245,024 3,259,746 4,701,490 3,428,163 3,288,482 4,701,490- Cash deposits 2,889,394 2,791,211 2,921,007 2,889,394 2,791,211 2,921,021Total 6,134,418 6,050,957 7,622,497 6,317,557 6,079,693 7,622,511
76
CONSOLIDATED ACCOUNTS
LIABILITIES AND EQUITY
I. Share capitalThe Board was authorized by the Shareholders’ Meeting of 12 June 1996 to increase the share capital by 2,000,000 and to issue debentureswith conversion or subscription rights which could lead to an increase in the share capital of the same amount. The capital increase by318,750 following the exercise of the warrants currently in issue would be deducted from the authorized capital.
IV. ReservesThis 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 :
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
Opening balance 6,129,391 6,317,924 5,415,868 3,703,693 4,155,585 3,830,968
Profit of the year 5,082,664 2,363,655 3,387,882 3,826,174 2,100,296 2,810,443Dividends (2,584,680) (2,552,188) (2,485,826) (2,584,680) (2,552,188) (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 goodwillNegative goodwill is the difference between the cost of investments in subsidiaries and equity-accounted companies and the value ofNPM/CNP’s share of the equity of these companies at the date of their acquisition or first consolidation.
VI. Translation adjustmentsThese adjustments are the result of movements in the exchange rates of currencies in which the accounts of subsidiaries orequity-accounted companies are expressed. They represent the difference between the value on translation of the assets and liabilities offoreign subsidiaries at the closing rate and their net worth at historic rates as well as the difference arising from the balance sheet beingtranslated at the closing rate while the income statement is translated at the average rate for the year. The differences shown mainly relateto PETROFINA (see last table page 77).
VIII. Minority interestsThe minority interests mainly represent 10.5 % of the capital of AGESCA NEDERLAND.
IX. Provisions for liabilities and charges
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- Potential compensation to FIBELPAR incase of exercise by ELF AQUITAINE ofits put option on NPM/CNP-shares(provision reversed in 1996) - 136,000 - - 136,000 -
- FRF exchange hedging costs (liquidationJanuary 1996) - 126,840 - - 126,840 -
- Provisions for COMPAGNIEGÉNÉRALE DES EAUX put options - 6,410 - - 6,410 -
- VITAL SOGEVIANDES potential losses - 34,107 34,107 - - -- Tax provision - - 21,500 - - 21,500- Removal costs 20,000 - - 20,000 - -- Others 21,500 - 2,500 21,500 - 2,500Total 41,500 303,357 58,107 41,500 269,250 24,000
77
CONSOLIDATED ACCOUNTS
X. Amounts payable after more than one year
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- Bonds A (1) 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000- Bonds B (2) 1,773,750 1,773,750 1,773,750 1,773,750 1,773,750 1,773,750- 50 % Group’s share in PARJOINTCO’s
borrowing of CHF 18,500,000 (ended14.07.1999 – 4.875 % rate) - - - 219,282 236,561 -
Total 3,273,750 3,273,750 3,273,750 3,493,032 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 Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- Market rate loans from FIBELPAR,ERBE and FRÈRE-BOURGEOIS Groupcompanies 6,200,265 2,900,000 3,100,000 6,201,938 2,900,000 3,100,000
- Foreign currency credits coveringshort-term investments 1,462,116 1,330,973 1,510,541 1,462,116 1,330,973 1,595,626
- Others - 7,150 10,762 - 7,150 10,762Total 7,662,381 4,238,123 4,621,303 7,664,054 4,238,123 4,706,388
F. Other liabilities
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- Dividends for the year 2,584,680 2,552,188 2,485,826 2,584,680 2,552,188 2,485,826- Dividends relating to prior years 6,398 6,150 6,260 6,398 6,150 6,260- Liabilities related to share purchases 315,930 255,625 - 315,930 255,625 -- Others 5,892 9,154 - 5,892 9,149 -Total 2,912,900 2,823,117 2,492,086 2,912,900 2,823,112 2,492,086
RECONCILIATION OF BALANCE SHEET AT 31.12.96 (RESTRICTED CONSOLIDATED ACCOUNTS - CONSOLIDATED ACCOUNTS)
Othercompaniesstock and
shares
Other assetsand liabilities
ofPARJOINTCO
GoodwillPositive Negative
Consolidatedreserves
Translationadjustments
Minorityinterests
Equity-accounted
companies :shares
Amount in restricted consolidatedaccounts
44,948,985 182,699 0 149,459 4,945,187 (81,732) 1,639,032 0
Equity-accounted companies :PARJOINTCO/PARGESA (1) (15,535,950) (182,699) 3,729,885 (547,620) 431,205 18,966,721ACP (579,679) 746 1,451 (171,713) 147 408,818BERNHEIM-COMOFI (920,793) 54,483 93,003 827 960,140ÉDITIONS DUPUIS (300,565) 22,128 58,180 380,873HÉLIO CHARLEROI (25,220) 21,271 35,745 82,236PETROFINA (13,718,132) 1,611,016 (620,754) (2,281,982) 9,204,380ROYALE BELGE (1,741,541) 331,916 183,880 550 1,594,055TRANSCOR (325,521) 31,720 356,634 (32,934) 680,941Others (54,322) 17,328 71,650
Effect of equity accounting (33,201,723)
(182,699) 1,998,161 76,570 3,682,188 (2,861,012) 431,205 32,349,814
Amount in consolidated accounts 11,747,262 0 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.
78
CONSOLIDATED ACCOUNTS
EXPENSES
A. Interest expense
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- On long-term loans 190,296 190,296 150,653 200,796 195,528 150,653- Others 254,415 275,156 244,185 255,520 279,612 249,313Total 444,711 465,452 394,838 456,316 475,140 399,966
B. Other financial expense
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- Exchange differences on assets andliabilities denominated in foreigncurrencies 121,018 251,284 29,628 122,393 244,424 29,628
- Costs related to the quotation of sharesand to the payment of the dividends 25,976 26,867 29,442 25,976 26,867 29,442
- Costs related to the purchase of optionsissued on shares (1) - - 10,933 - 10,933
- Others (2) 8,547 5,254 31,894 8,547 19,241 32,127Total 155,541 283,405 101,897 156,916 290,532 102,130
(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 goodwillThis includes amortization at the rate of 5 % of the goodwill on consolidation arising on the equity accounted companies. In theconsolidated accounts of 1994, the goodwill on the ARTEMIS shares (76,438) was fully written off.
G.1 Write-down on investments
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
ARTEMIS 249,330 43,639 - 249,330 81,466 107,080ESPIRITO SANTO FINANCIAL HOLD. - 308,687 - - 308,687 -PARIBAS - 194,077 - - 194,077 -Others - 10,000 - - 10,000 -Total 249,330 556,403 - 249,330 594,230 107,080
G.2 Write-down on current assetsThese include the write-downs at year-end on securities included in short-term investments.
J. Exceptional expenses
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- Full expenses of the capital increases andthe loan note issues - - 149,193 - - 149,193
- Provision for potential compensation toFIBELPAR in case of exercise by ELFAQUITAINE of its put option onNPM/CNP-shares - 136,000 - - 136,000 -
- Provision for removal costs 20,000 - - 20,000 - -- Costs relating to the new premises 56,576 - - 56,576 - -- Others 29,178 - 36,051 29,178 - 18,446Total 105,754 136,000 185,244 105,754 136,000 167,639
79
CONSOLIDATED ACCOUNTS
REVENUES
A.1 Revenue from investments - dividendsThis consists of dividends received from the following companies :
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
ACP - - - - 416,607 -ARTEMIS - - - - 8,690 9,904BERNHEIM-COMOFI - - 48 64,061 60,394 56,115COBEPA 62,160 58,026 54,309 62,160 58,026 54,309COMPAGNIE GÉNÉRALE DES EAUX 97,330 93,908 4,931 97,330 93,908 4,931ÉDITIONS DUPUIS - - - 12,000 21,068 -ÉDITIONS HEMMA - - 14,018 - - 14,018ELECTRAFINA - - 74,629 - - 74,629ELF AQUITAINE 130,470 127,117 124,699 130,470 127,117 124,699ESPIRITO SANTO FINANCIAL HOLD. 32,260 42,076 40,974 32,260 42,076 40,974GROUPE JEAN DUPUIS - - - - - 12,750PARGESA - - - 790,283 771,914 718,158PETROFINA - - - 528,379 480,345 420,302ROYALE BELGE - - - 97,828 110,279 100,827SCI & ASSOCIÉS - - - 149,768 - -SOCIÉTÉ GÉNÉRALE DE BELGIQUE 195,945 193,377 175,955 195,945 193,377 175,955TRANSCOR - - - 23,978 114,423 114,189Others 15,249 15 10,890 15,249 15 10,890Total 533,414 514,519 500,453 2,199,711 2,498,239 1,932,650
B. Revenue from current assets
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- Dividends 82,903 157,139 170,549 89,549 157,139 170,549- Interests 580,374 495,037 645,359 579,274 496,142 653,057Total 663,277 652,176 815,908 668,823 653,281 823,606
C. Other financial revenue
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- Exchange gains 111,547 60,003 78,905 133,282 60,003 85,350- Income arising from options issued 30,630 - 43,361 30,630 - 43,361- Pro rata temporis income from the loan
issue premium 31,950 31,950 25,294 31,950 31,950 25,294- Others 8,387 3,667 5,387 8,387 3,667 5,387Total 182,514 95,620 152,947 204,249 95,620 159,392
G.1 Write-back of investments
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- ESPIRITO SANTO FINANCIAL HOLD. 259,301 - - 259,301 - -- PARIBAS 65,140 - - 65,140 - -- Others - - 19 - - 6Total 324,441 - 19 324,441 - 6
80
CONSOLIDATED ACCOUNTS
I.2 Profits on disposal of investments
Consolidated accounts Restricted consolidated accounts1996 1995 1994 1996 1995 1994
- Disposal of ELECTRAFINA shares - - 467,747 - - 488,630- Disposal of ÉDITIONS HEMMA shares - - 101,383 - - 147,077- Disposal of PETROFINA shares - - 40,553 - - 18,170- Disposal of SCI & ASSOCIÉS 755,793 - - 1,050,758 - -- Disposal of ROYALE BELGE shares 85,334 - - 91,647 - -- Others 7,924 8,489 - - 8,489 -Total 849,051 8,489 609,683 1,142,405 8,489 653,877
I.3 Profits on disposal of current assetsThese are the result of a number of trading transactions, mainly in Belgian and French shares and bonds.
J. Exceptional revenueIn 1996, this consists primarily of an exceptional write-back of provisions of 136,000 relating to potential compensation to FIBELPARin case of exercise by ELF AQUITAINE on FIBELPAR of its put option on NPM/CNP shares. Following the repurchase by FIBELPARof these shares at market value the provision has become unnecessary.
K.bis Profits/(losses) of equity-accounted companiesThis includes revenue from the following :
1996 1995 1994ACP 52,969 33,202 16,893ARTEMIS - (47,997) 2,660BERNHEIM-COMOFI (37,528) 89,695 83,938GROUPE JEAN DUPUIS - - 48,029- ÉDITIONS DUPUIS 37,806 31,851 -- HÉLIO CHARLEROI 20,298 12,376 -- Others 3,032 3,679 -
PARJOINTCO 1,863,094 1,085,036 1,084,153PETROFINA 1,021,124 735,012 647,823ROYALE BELGE 264,552 178,350 158,623SCI & ASSOCIÉS 149,768 204,569 90,396TRANSCOR 82,600 21,624 122,444Total Profits
Losses3,495,243
(37,528)2,395,394
(47,997)2,254,959
-
RECONCILIATION OF THE CONSOLIDATED PROFIT AND THE RESTRICTED CONSOLIDATED PROFIT (GROUP SHARE)
OPERATING CAPITAL
Directcontribution
Restrictedconsoli-
datedresults
Results ofequity
accountedcompanies
DividendConso-lidated
accounts
Restrictedconso-lidatedresults
Results ofequity
accountedcompanies
OthersAmorti-zation ofgoodwill
Conso-lidated
accountsTotal
PARJOINTCO (PARGESA) 707,636 1,308,088 (707,636) 1,308,088 - 744,768 7,096 (361,541) 390,323 1,698,411ACP - 52,969 - 52,969 - - - (39) (39) 52,930BERNHEIM-COMOFI 64,061 (37,528) (64,061) (37,528) - - - (4,115) (4,115) (41,643)ÉDITIONS DUPUIS 12,000 37,806 (12,000) 37,806 - - - - - 37,806HÉLIO CHARLEROI 7,800 20,298 - 28,098 - - - - - 28,098PETROFINA 528,379 1,021,124 (528,379) 1,021,124 - - - (120,155) (120,155) 900,969ROYALE BELGE 97,828 264,552 (97,828) 264,552 91,647 - (6,313) (27,305) 58,029 322,581SCI & ASSOCIÉS 183,912 149,768 (149,768) 183,912 1,050,758 - (294,965) - 755,793 939,705TRANSCOR 23,978 82,600 (23,978) 82,600 - - - - - 82,600Others 990,808 3,032 - 993,840 67,367 - - - 67,367 1,061,207Total 2,616,402 2,902,709 (1,583,650) 3,935,461 1,209,772 744,768 (294,182) (513,155) 1,147,203 5,082,664In BEF per share 103.25 155.31 47.74 45.27 200.58
81
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 alsopublishes 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 DECOORDINATION 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 detailsare provided in this Appendix.
The consolidated accounts which are analysed in this appendix fully consolidate the accounts of the parent company and those of itssubsidiaries in which there is a shareholding of 100 %, of AGESCA NEDERLAND and of N.F. ASSOCIATES, proportionallyconsolidate CENTRE DE COORDINATION DE CHARLEROI and GROUPE JEAN DUPUIS and consolidate by the equity method theaccounts of companies in which there is a shareholding, directly or indirectly, of at least 20 %, as well as those of PARJOINTCO, whichis jointly controlled.
This accounting treatment is intended to better reflect the true picture of the assets of the NPM/CNP Group, with PARJOINTCO fullyconsolidating 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 ofPARJOINTCO is included (see pages 92 to 97).
82
CONSOLIDATED accountS
The Group structure at 31 December 1996 can be presented as follows :
(1) Agreement between the FRÈRE-BOURGEOIS and NPM/CNP Groups providing equal management control(2) Company jointly held with POWER CORPORATION OF CANADA
ÉDITIONS DUPUIS
HÉLIO CHARLEROI
PETROFINA
TRANSCOR
ROYALE BELGE
BERNHEIM-COMOFI
NPM / CNPand consolidated financial holdings
PARJOINTCO (2)
AGESCA NEDERLAND N.F. ASSOCIATES
ERBE GROUP
FIBELPAR GROUP
GBLand consolidatedfinancial holdings
41.0 % PARFINANCE
47.4 %
PARGESAHOLDING 46.1 %
ACP
BBL20.4 %
12.4 %
12.4 %
2.4 %
47.6 %
22.8 %
12.9 %
40.5 %
74.1 %
52.5 %
49.0 %
97.1 %
25.7 %
100.0 %
38.0 %
55.0 %Equity
62.7 %Votes
Restricted consolidation
Consolidation
89.5 %Equity
49.0 %Votes (1)
51.0 %Votes (1)
10.5 %Equity
IMÉTAL
ORIOR
COMETRA
MONUMENT OIL & GAS
CLT
BELGIAN SKY SHOPS
DEWAAY
57.1 %
53.5 %
54.5 %
GROUPE JEAN DUPUIS
50.0 %
50.0 %
50.0 %
6.5 %
28.3 %
100.0 %
47.6 %
21.7 %
50.0 %
FRÈRE-BOURGEOIS GROUP
83
CONSOLIDATED accountS
II. Fully consolidated subsidiaries Nationalidentification Percentage of shares held by
orVAT number
consolidatedsubsidiaries
equity-accountedcompanies
AGESCA NEDERLAND N.V. - Rotterdam - 89.5 -CARPAR S.A. - Charleroi 441.649.215 100.0 -COMPAGNIE IMMOBILIÈRE DE ROUMONT S.A.- Charleroi 455.738.167 100.0 -FINGEN S.A. - Luxembourg - 100.0 -INVESTOR S.A. - Charleroi 426.114.070 100.0 -N.F. ASSOCIATES N.V. - Rotterdam - 100.0 (1) -ORILUX S.A. - Luxembourg - 100.0 -SLP S.A. - Charleroi 429.364.758 100.0 -SWILUX S.A. - Luxembourg - 100.0 -
(1) 100 % of the ordinary equity is held by AGESCA NEDERLAND N.V.
III. Proportionally consolidated subsidiaries Nationalidentification Percentage of shares held by
orVAT number
consolidatedsubsidiaries
equity-accountedcompanies
CENTRE DE COORDINATION DE CHARLEROI SA Charleroi 454.199.332 52.7 20.9GROUPE JEAN DUPUIS S.A. - Charleroi 405.630.244 50.0 50.0
IV. Major equity-accounted companies Nationalidentification Percentage of shares held by
orVAT number
consolidatedsubsidiaries
equity-accountedcompanies
ACIDE CARBONIQUE PUR S.A. - Brussels 402.117.062 28.1 -BERNHEIM-COMOFI S.A. - Brussels 403.231.968 21.7 60.9ÉDITIONS DUPUIS S.A. - Marcinelle 429.160.563 100.0 (1) -ELECTRAFINA S.A. - Brussels 407.040.209 - 55.9GROUPE BRUXELLES LAMBERT S.A. - Brussels 403.228.010 - 47.4HÉLIO CHARLEROI S.A. - Fleurus 434.915.138 50.0 (1) -PARFINANCE S.A. - Paris - - 87.1PARGESA HOLDING S.A. - Geneva - - 55.0PARJOINTCO N.V. - Rotterdam - 50.0 -PETROFINA S.A. - Brussels 403.079.441 6.5 22.8ROYALE BELGE S.A. - Brussels 403.292.346 2.4 51.2 (2)ROYALE VENDÔME S.A. - Brussels 432.525.869 - 25.1TRANSCOR S.A. - Brussels 402.981.550 47.6 47.6
(1) investment held by GROUPE JEAN DUPUIS(2) investment held by ROYALE VENDÔME
V. Other companies in which there is a shareholdingof at least 10 %
Nationalidentification Percentage of shares held by
orVAT number
consolidatedsubsidiaries
equity-accountedcompanies
ARTEMIS S.A. - Luxembourg - 31.4 11.7HEXANE S.A. - Brussels 451.175.506 50.0 (1) -
(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 partof these companies. Also excluded were the entities or Groups in which the companies included under point II do not have any directshareholding 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 withthe consolidated accounts.
84
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 statutoryaccounts (cf. point XX of the Appendix to the annual accounts). As allowed by the Royal Decree of 6 March 1990, financial statementsof equity-accounted companies or groups have not been restated, except where the accounting policies applied in these accounts areincompatible 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 andequity-accounted companies is eliminated.
� The assets and liabilities of foreign companies are translated using the closing rate method ; the income statements of thesecompanies 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 theindividual assets which justified the payment of the premium. If no such allocation can be made it is fully written off in the year inwhich it arises.
Positive goodwill on equity-accounted companies is amortized at 5 % per annum. The Board of Directors believes that amortizinggoodwill over 20 years corresponds more closely to economic reality (goodwill is paid in the expectation of future profits) ratherthan the 5 year limit suggested by the Royal Decree. Extraordinary amortization is made when the Board considers that the goodwillis overstated.
Negative goodwill is reported as a component of the shareholders’ equity and remains there for as long as the shares to which itrelates stay within the Group.
VII. Statement of formation expenses
Opening net book value -Movements in the year- additional costs incurred -- amounts written off -
Closing net book value -
VIII. Statement of intangible assets
Opening net book value -Movements in the year- additional costs incurred -- amounts written off -
Closing net book value -
IX. Statement of tangible fixed assets
Land and Furniture Assets underbuildings and vehicles construction
a) Acquisition costOpening balance 28,539 33,643 39,166Movement in the year- acquisitions - 16,273 143,456- disposals (7,998) (9,942) -
Closing balance 20,541 39,974 182,622c) Depreciation
Opening balance - (24,611) -Movement in the year- charged - (3,003) -- written back - 4,963 -
Closing balance - (22,651) -Closing net book value 20,541 17,323 182,622
85
CONSOLIDATED accountS
X. Statement of investments
Companiesequity-accounted other
1. Shareholdingsa) Acquisition cost
Opening balance 36,397,066 12,876,540Movements in the year- acquisitions 3,237 8,500- disposals and withdrawals (2,479,184) (958,934)- transfers (719,396) 186,932
Closing balance 33,201,723 12,113,038
b) Revaluation surplusOpening balance - -Movements in the year- revaluations - -- cancellations - -
Closing balance - -
c) Amounts written-offOpening balance (43,639) (516,620)Movements in the year- amounts charged - (249,330)- amounts written back - 324,441- transfer between items 43,639 76,613
Closing balance - (364,896)
d) Increases or reductions resulting from consolidation underthe equity methodOpening balance (3,049,449) -Movements in the year- acquisitions (786) -- profits 3,457,715 -- dividends received (1,666,297) -- disposals (228,206) -- other 635,114 -
Closing balance (851,909) -
e) Amounts not calledOpening balance - (880)Movements in the year - -
Closing balance - (880)
Closing net book value 32,349,814 11,747,262
2. Bonds and amounts receivableOpening net book value 1,847,996 7
Movements in the year- additions - -- repayments or disposals (1,772,996) (1)- amounts written off - -
Closing net book value 75,000 6
Cumulative write-offs on receivables at the end of the financial year- -
86
CONSOLIDATED accountS
XI. Statement of reserves
Opening net book value 6,129,391Movement in the year- profit 5,082,664- dividends paid (2,584,680)- other -
Closing net book value 8,627,375
XII. Statement of goodwill
Subsidiaries Equity-accounted companiespositive negative positive negative
Opening net book value - 149,459 2,199,310 72,772Movements in the year- adjustments resulting from an increase
in shareholding percentage 821 - 786- adjustments resulting from a decrease
in shareholding percentage - - (50,320)- amortization (821) - (151,615)- differences taken to results - - -- others - - - 3,798
Closing net book value - 149,459 1,998,161 76,570
XIII. Statement of liabilities
due within one year(current portion)
with more than oneyear but less than five
years to runwith more than five
years to runA. Analysis of amounts originally payable after
more than one yearFinancial liabilities - 3,273,750 -2. Unsubordinated debentures - 3,273,750 -
1996C. Taxes, salaries and social charges payable
1. Taxesb) not overdue tax payablec) accrued tax charges
2. Salaries and social chargesb) other salaries and social charges
114,170
3,065105,710
5,395
87
CONSOLIDATED accountS
XIV. Other information regarding operating results
1996 1995 1994B.l. Average number of employees
Personnel is included in the records of the NPM/CNP CostAssociation which is then allocated among the members at the endof the year.
B.2. Payroll expenses 96,521 79,369 58,023a) salaries and direct social charges 72,045 58,270 42,477b) employers’ social insurance contributions 14,899 13,442 10,744c) employers’ additional insurance contributions 3,498 3,596 2,381d) other employment costs 6,079 4,061 2,421
D. Taxes on results1. Taxes on the profit for the year 59,219 24,697 23,772a) taxes and withholdings paid or payable 262,909 261,551 253,139b) excess payment of taxes or withholdings included
in the balance sheet (262,909) (261,551) (253,139)c) estimated additional taxes 59,219 24,697 23,7722. Taxes on the profits for previous years - 5,094 -
XV. Off-balance sheet rights and commitments
1. Within the framework of the 1990 agreement - renewed in 1996 - between the FRÈRE-BOURGEOIS/NPM-CNP and POWERGroups with respect to the joint control of PARGESA HOLDING S.A., the partners acknowledged the following mutual rights andcommitments :
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 tosettlement by arbitration, the defaulting Group will grant an option to the other Group to acquire the shareholding in PARGESA heldby PARJOINTCO N.V. or by companies of the defaulting Group, at the stock market price at the time of the arbitration settlementfor 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 guaranteeswhich are usual for sales of companies (mainly a net assets guarantee - with a deductible - expiring at 31 December 1997). At thedate 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. At31 December 1996, the share price was above the exercise price. As the PARIBAS shares were written down during previousfinancial 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 exchangerate and interest rate swap for a period of 5 years covering some FRF 514 million. At 31 December 1996, rates had movedfavourably 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 ofshares 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)
88
CONSOLIDATED accountS
XVI. Intercompany balances with associated and related companies
Associated companies Related companies1996 1995 1994 1996 1995 1994
1. Investments- shares 21,142,561 18,239,675 18,071,494 9,613,198 15,064,303 15,391,835- receivables 75,000 75,000 - - 1,772,996 1,772,996
2. Receivables- due within one year 8,329,629 3,025,000 2,869,929 - - -
3. Short-term investments- shares - - - - - -- receivables - - - - - -
4. Payables- falling due beyond one year - - - - - -- long-term liabilities due within one
year - - - - - -- due within one year 6,200,265 3,062,105 3,100,000 303,353 93,413 -
7. Finance income/expense- Income
- from investments 7,800 - - 34,144 81,619 35,018- from current assets 272,074 121,812 148,116 - - 1,200- other financial income - - - - - -
- Expense- on payables 154,435 156,989 82,895 - - -- other financial costs - - - - - -
XVII. Financial relations with Directors
1996 1995 1994A. Amounts of remuneration paid during the year to
Members of the Board of Directors of the parentcompany by fully or proportionally consolidatedcompanies 24,279 19,985 19,739
B. Loans and advances granted to Directors - - -
89
CONSOLIDATED accountS
STATEMENTS OF CASH FLOWS(BEF thousands)
Consolidated accounts Restricted consolidated accountsSOURCES OF LONG-TERM FUNDS 1996 1995 1994 1996 1995 1994
Cash-flow of the yearNet profit (Group) 5,082,664 2,363,655 3,387,882 3,826,166 2,100,296 2,810,443
(Minority interests) 170,661 88,318 91,340 54,953 51,933 54,571Depreciation and net write-offs (18,501) 776,640 582,542 (170,070) 694,240 466,579Provisions for liabilities and charges (261,857) 245,250 30,666 (227,750) 245,250 (3,441)
Capital increase (including share premiums) - - 6,992,379 - - 6,992,379Other changes in equity 462,079 (267,780) (1,148,791) (3,479) 75,262 (194,883)Other changes in minority interests 260,554 (50,916) (16,379) 241,000 (52,963) (63,477)Long-term debt - - 3,253,750 (17,279) 236,561 3,253,750
5,695,600 3,155,167 13,173,389 3,703,541 3,350,579 13,315,921
APPLICATIONS OF LONG-TERM FUNDS
Dividends paid 2,584,680 2,552,188 2,485,826 2,584,680 2,552,188 2,485,826Capital increase and bond issues expenses - - 149,193 - - 149,193Tangible assets 146,752 68,778 10,049 146,752 68,778 11,745Financial assets (3,455,475) (277,075) 8,866,011 (5,415,296) (297,501) 9,610,438
(724,043) 2,343,891 11,511,079 (2,683,864) 2,323,465 12,257,202
Net increase/(decrease) in long-term funds 6,419,643 811,276 1,662,310 6,387,405 1,027,114 1,058,719
CHANGES IN WORKING CAPITAL
Increase/(decrease) in current assetsTrade receivables within one year (22) 7,045 (5,192) (22) 7,045 (5,325)Other amounts receivable within one year 5,624,243 180,348 2,908,236 5,491,493 267,414 2,823,103Short-term investments - own shares 872,095 - - 872,095 - -Short-term investments - other investments and deposits (15,368) (1,477,827) 2,807,437 139,035 (1,449,105) 2,807,451Cash at bank and in hand 3,528,516 1,924,711 (24,786) 3,486,781 1,944,159 (503,389)Deferred charges and accrued income (66,667) 40,246 115,463 (65,896) 40,001 115,592
9,942,797 674,523 5,801,158 9,923,486 809,514 5,237,432
Increase/(decrease) in current liabilitiesTransfers from long-term debt - (20,000) 20,000 - (20,000) 20,000Financial liabilities 3,424,258 (383,180) 3,436,101 3,425,931 (468,265) 3,521,186Trade payables 23,266 23,046 793 23,266 23,046 793Taxes, salaries and social charges payable 60,384 (19,121) (1,661) 63,608 (20,782) (45,129)Other amounts payable within one year 89,783 331,031 356,820 89,788 331,026 356,820Accrued charges and deferred income (74,537) (68,529) 326,795 (66,512) (62,625) 325,043
3,523,154 (136,753) 4,138,848 3,536,081 (217,600) 4,178,713
Net increase/(decrease) in working capital 6,419,643 811,276 1,662,310 6,387,405 1,027,114 1,058,719
90
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 ofBEF 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 Groupof Stable Shareholders and purchased 1,250,000 shares representing 0.5 % of the share capital of the company. This investment amounted toFRF 514 million which was financed in this currency. During the summer of 1994 NPM/CNP opted for the dividend in shares distributed byELF 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 at31 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 coffeebeans 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 wasmade 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 thistransaction 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 toGROUPE 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 interestto 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 January1997. This holding was reclassified to Short-term investments at 31 December 1996.
91
CONSOLIDATED accountS
AUDITORS’ REPORT
Ladies, Gentlemen,
In our role as Auditors of NATIONALE PORTEFEUILLEMAATSCHAPPIJ / COMPAGNIENATIONALE À PORTEFEUILLE , and in accordance with the statutory provisions relating toholding companies, we have examined the consolidated accounts for the year ending31 December 1996.
This work was carried out by us, in conjunction with other experts, in accordance with theauditing standards and guidelines laid down by the INSTITUT DES REVISEURSD’ENTREPRISES (Institute of Auditors). In the course of our work we have verified that theaccounting policies outlined in the financial appendix to the management report have beencorrectly applied.
There has been consistency in the presentation of the accounts and the application of theaccounting 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 variouscompanies which were subject to audit by those companies’ auditors.
Finally, we studied the consolidated management report which contains the information requiredby 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 toBEF 69,855,392 (000), and the consolidated income statement, showing a Group share of profitof BEF 5,082,664 (000), gives a true and fair view of the assets, financial situation and results ofthe group of companies included within the consolidation of NATIONALEPORTEFEUILLEMAATSCHAPPIJ / COMPAGNIE NATIONALE À PORTEFEUILLE at31 December 1996. They have been prepared in accordance with the accounting policiesdescribed in the financial appendix to the management report and which comply with the legalprovisions applicable in Belgium.
Brussels, 17 April 1997
Statutory Auditors
KLYNVELD PEAT MARWICK GOERDELERReviseurs d’Entreprises S.C.
represented byGeorges M. TIMMERMAN
DELOITTE & TOUCHEReviseurs d’Entreprises S.C.
represented byClaude POURBAIX
92
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 managementcontrol between the FRÈRE-BOURGEOIS/NPM-CNP Group on the one hand and POWER CORPORATION OF CANADA on the other. It isthe financial vehicle for joint control of the PARGESA/GBL/PARFINANCE groups, consolidating approximately 55.0 % of the capital ofPARGESA 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 correctingentries necessary to bring them in line with the Belgian accounting principals and those allowing the change from consolidation under the equitymethod 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 whichit has arisen and amortized at a rate of 5 % per annum. However, following the sale by ELECTRAFINA of its shares in TRACTEBEL in thesecond half of 1996, PARGESA considered it appropriate to record an exceptional amortization charge of BEF 431 million against its goodwillin GBL (BEF 237 million relating to the part belonging to PARJOINTCO). PARJOINTCO itself charged exceptional amortization of BEF 680million, calculated as the difference, at the time of its creation in 1990, between the stock market value of the TRACTEBEL shares and theirconsolidated 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 36,165- profit for the year 3,726- distributed dividend (1,590)- translation adjustments 229
- equity at 31.12.1996 38,530
PARJOINTCO, as such, did not conduct significant financial operations during the 1995 financial year. Operations conducted byPARJOINTCO’s subsidiaries (PARGESA, GBL, PARFINANCE, ELECTRAFINA, CLMM, AUDIOFINA and FRATEL) are described in themanagement report section. As indicated, the most significant operations in terms of the impact on the accounts relate to the Public Offer toPurchase its own shares carried out by PARFINANCE which had the effect of taking the percentage of share capital of PARFINANCE held byPARGESA and GBL from 57.2 % to 87.1 %, as well as to the sale by ELECTRAFINA of its interest in TRACTEBEL, which was equityaccounted for until 30 June 1996.
93
CONSOLIDATED accountS
Consolidation structure (simplified chart of the Group at 31 December 1996)
GROUPE BRUXELLES LAMBERTPARFINANCE
ROYALE VENDÔME
BERNHEIM-COMOFI
ROYALE BELGE
BBL
TRANSCOR
DUPUIS
BELGIAN SKY SHOP
MONUMENT OIL & GAS
CLT
PETROFINA
COMETRAORIOR HOLDING
IMETAL
55.0 %
PARJOINTCO
PARGESA HOLDING
46.1 % 47.4 %
25.1 %
17.6 %
51.1 %
51.2 %
52.5 %
74.1 %
22.8 %
25.7 %
100 %
12.4 %
41.0 %47.9 %
ELECTRAFINA
C L M M
FRATEL
59.9 %
8.0 %
AUDIOFINA
95.9 %
79.5 %
DEWAAY
40.5 %
12.4 %
47.6 %
49.0 %
50.0 %
38.0 %FULLY
CONSOLIDATED
PROPORTIONALLYCONSOLIDATED
20.4 %
CONSOLIDATION UNDERTHE EQUITY METHOD
17.1 %
94
CONSOLIDATED ACCOUNTS
PARJOINTCO - CONSOLIDATED BALANCE SHEETS
(million BEF)
ASSETS Group share Minority interests Total
1996 1995 1994 1996 1995 1994 1996 1995 1994
Goodwill 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
Current assets 8,830 9,963 11,556 31,704 22,012 24,353 40,534 31,975 35,909
Total 45,878 47,084 47,341 179,979 173,417 162,139 225,857 220,501 209,480
LIABILITIES AND EQUITY Group share Minority interests Total
1996 1995 1994 1996 1995 1994 1996 1995 1994
Equity (Group) 38,530 36,165 35,508 - - - 38,530 36,165 35,508
Minority interests - - - 162,843 148,337 138,293 162,843 148,337 138,293
Provisions for liabilities and charges 1,018 824 885 1,389 1,065 1,411 2,407 1,889 2,296
Long-term debt 4,405 6,336 7,981 11,959 13,977 17,278 16,364 20,313 25,259
Current liabilities 1,925 3,759 2,967 3,788 10,038 5,157 5,713 13,797 8,124
Total 45,878 47,084 47,341 179,979 173,417 162,139 225,857 220,501 209,480
95
CONSOLIDATED ACCOUNTS
PARJOINTCO – CONSOLIDATED PROFIT AND LOSS STATEMENTS
(million BEF)
Group share Minority interests Total
1996 1995 1994 1996 1995 1994 1996 1995 1994
Dividends and interests 325 445 384 796 1,293 1,028 1,121 1,738 1,412
Results of equity-accounted companies 2,414 2,031 2,068 11,652 10,994 9,485 14,066 13,025 11,553
Income from investments 2,739 2,476 2,452 12,448 12,287 10,513 15,187 14,763 12,965
Gains on disposal of current assets 79 76 108 104 224 101 183 300 209
Other financial revenue 885 800 710 2,397 1,750 1,455 3,282 2,550 2,165
Interest expenses (360) (537) (495) (894) (1,170) (908) (1,254) (1,707) (1,403)
Losses, amounts written off and written backon current assets - (70) 14 - (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
Losses, amounts written off and written backon investments (246) (111) 31 (580) (337) 91 (826) (448) 122
Amortization of goodwill (1,410) (441) (529) (1,659) (1,034) (1,214) (3,069) (1,475) (1,743)
Other extraordinary revenue/(expenses) (269) (2) (150) (722) 21 (732) (991) 19 (882)
Capital result before taxes 907 (239) (145) 14,554 (391) 1,077 15,461 (630) 932
Taxes (7) (3) (92) (18) (115) (179) (25) (118) (271)
Net profit 3,726 2,170 2,174 27,437 11,516 11,113 31,163 13,686 13,287
96
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 1,330 2,093 2,249 - - - 1,330 2,093 2,249PETROFINA 1,091 1,124 1,171 7,627 8,278 8,899 8,718 9,402 10,070ROYALE BELGE 536 599 681 1,518 1,675 1,953 2,054 2,274 2,634GBL 417 804 771 342 644 618 759 1,448 1,389IMÉTAL 331 474 478 588 1,513 1,557 919 1,987 2,035PARIBAS - - 223 - - 717 - - 940Others 157 438 301 14,896 1,470 1,056 15,053 1,908 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 % Group share Minority interests Total
1996 1995 1994 1996 1995 1994 1996 1995 1994 1996 1995 1994
IMÉTAL 52.5 52.7 53.2 7,098 4,028 3,376 12,601 12,839 10,868 19,699 16,867 14,244PETROFINA 22.8 22.8 22.8 4,069 3,563 3,463 28,454 26,254 26,311 32,523 29,817 29,774BBL (1) 12.4 12.4 12.4 2,987 2,751 2,435 8,459 7,695 6,986 11,446 10,446 9,421TRACTEBEL - 20.5 20.4 - 2,594 2,408 - 19,118 18,298 - 21,712 20,706ROYALE BELGE 12.9 13.0 13.1 2,292 2,054 1,926 6,489 5,743 5,524 8,781 7,797 7,450ORIOR HOLDING 74.1 69.0 58.5 1,721 1,749 1,285 1,406 1,400 1,028 3,127 3,149 2,313CLT 97.1 96.8 62.4 1,342 1,081 875 21,145 16,249 7,513 22,487 17,330 8,388COMETRA 100.0 100.0 100.0 611 488 499 4,270 3,595 3,764 4,881 4,083 4,263BERNHEIM-COMOFI (1) 40.5 40.5 40.5 373 426 405 1,058 1,192 1,161 1,431 1,618 1,566NIMEX/MONUMENT 25.7 66.7 66.5 228 215 214 1,595 1,587 1,625 1,823 1,802 1,839PARIBAS - - 4.4 - - 2,914 - - 9,381 - - 12,295Others 690 673 992 1,969 1,838 1,518 2,659 2,511 2,510
Total 21,411 19,622 20,792 87,446 97,510 93,977 108,857 117,132 114,769(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 Minority interests Total
1996 1995 1994 1996 1995 1994 1996 1995 1994
IMÉTAL 692 443 389 1,229 1,412 1,332 1,921 1,855 1,721PETROFINA 450 310 257 3,158 2,287 1,982 3,608 2,597 2,239ROYALE BELGE 418 234 212 1,183 655 608 1,601 889 820BBL 333 292 250 943 817 715 1,276 1,109 965TRACTEBEL 196 283 255 1,374 2,083 1,964 1,570 2,366 2,219CLT 194 200 200 3,049 3,008 1,562 3,243 3,208 1,762ORIOR HOLDING 68 118 161 55 94 129 123 212 290COMETRA 54 33 46 380 241 354 434 274 400BERNHEIM-COMOFI (18) 43 32 (50) 122 91 (68) 165 123PARIBAS - - 102 - - 348 - - 450Others 352 75 164 1,127 275 400 1,479 350 564
Total 2,739 2,031 2,068 12,448 10,994 9,485 15,187 13,025 11,553
97
CONSOLIDATED ACCOUNTS
GAINS ON DISPOSAL OF INVESTMENTS
Group share Minority interests Total
1996 1995 1994 1996 1995 1994 1996 1995 1994
TRACTEBEL 2,341 - - 16,434 - - 18,775 - -CARNAUDMETALBOX 370 - - 658 - - 1,028 - -Audio-visual companies - 215 425 - 637 2,543 - 852 2,968Others 121 100 78 423 322 389 544 422 467
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 (181) (53) - (490) (170) - (671) (223) -STRAFOR FACOM - - 33 - - 111 - - 144Others (65) (58) (2) (90) (167) (20) (155) (225) (22)
Total (246) (111) 31 (580) (337) 91 (826) (448) 122
AMORTIZATION OF GOODWILL
Group share Minority interests Total
1996 1995 1994 1996 1995 1994 1996 1995 1994
PARGESA by PARJOINTCO (840) (156) (156) - - - (840) (156) (156)GBL by PARGESA (330) (94) (121) (269) (76) (98) (599) (170) (219)PETROFINA (86) (82) (77) (601) (605) (592) (687) (687) (669)AUDIOFINA / CLT (54) - - (529) - - (583) - -ROYALE BELGE (50) (52) (59) (140) (145) (169) (190) (197) (228)IMÉTAL (42) (41) (31) (74) (132) (108) (116) (173) (139)PARIBAS - - (39) - - (132) - - (171)Others (8) (16) (46) (46) (76) (115) (54) (92) (161)
Total (1,410) (441) (529) (1,659) (1,034) (1,214) (3,069) (1,475) (1,743)
98
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 presentedhereafter in a summarized version :
ACIDE CARBONIQUE PUR (million BEF)
1996 1995 1994 1993 1992
Intangible assets - - 5 9 17Tangible assets 1,763 1,926 2,149 1,995 2,086Investments 43 11 31 434 412Inventories 58 56 56 51 64Receivables 720 663 720 239 341Other current assets 1,348 1,359 2,121 1,749 1,066Assets 3,932 4,015 5,082 4,477 3,986Equity 1,330 1,243 2,601 2,542 1,554Minority interests 1 1 1 1 1Provisions for liabilities and charges 163 187 186 222 71Long-term debt 740 952 1,198 1,134 471Non financial short-term debt 1,086 528 859 360 491Other short-term liabilities 612 1,104 237 218 1,398Liabilities and equity 3,932 4,015 5,082 4,477 3,986
Turnover 1,159 1,119 1,084 1,178 1,857Cash flow (before tax) 457 434 330 1,462 372Total profit (before tax) 213 153 110 1,231 172Net income 201 132 74 1,089 126Dividends 100 1,482 - - -
ÉDITIONS DUPUIS (million BEF)
1996 1995 1994 1993 1992
Intangible assets 238 310 299 349 399Tangible assets 203 214 232 126 151Investments 14 46 11 2 2Inventories 378 288 294 358 237Receivables 735 460 386 516 475Other current assets 265 292 408 546 539Assets 1,833 1,610 1,630 1,897 1,803Equity (before profit allocation) 762 692 686 1,022 969Minority interests - - - - -Provisions for liabilities and charges - 23 25 30 34Long-term debt 58 66 77 88 99Non financial short-term debt 1,013 729 692 757 701Other short-term liabilities - 100 150 - -Liabilities and equity 1,833 1,610 1,630 1,897 1,803
Turnover 1,799 1,675 1,637 1,454 1,253Cash flow (before tax) 248 232 172 108 142Total profit (before tax) 117 84 103 87 62Net income 77 62 86 59 47Dividends 75 36 30 28 25
99
CONSOLIDATED ACCOUNTS
HÉLIO CHARLEROI (million BEF)
1996 1995 1994 1993 1992
Intangible assets - - - - -Tangible assets 856 1,083 1,259 937 1,004Investments 3 3 2 4 6Inventories 64 184 62 40 51Receivables 547 663 352 289 439Other current assets 135 181 95 98 52Assets 1,605 2,114 1,770 1,368 1,552Equity (before profit allocation) 329 230 192 183 199Minority interests - - - - -Provisions for liabilities and charges 65 30 5 5 5Long-term debt 597 804 939 553 628Non financial short-term debt 416 784 400 550 644Other short-term liabilities 198 266 234 77 76Liabilities and equity 1,605 2,114 1,770 1,368 1,552
Turnover 2,018 2,229 1,507 1,553 1,744Cash flow (before tax) 312 267 168 152 85Total profit (before tax) 99 49 20 5 (12)Net income 81 49 20 5 (12)Dividends - - - - -
TRANSCOR (million BEF)
1996 1995 1994 1993 1992
Intangible assets - - - - -Tangible assets 47 60 78 74 81Investments 82 20 37 59 25Inventories 2,272 1,179 1,599 2,002 2,608Receivables 2,306 2,145 3,158 4,396 4,153Other current assets 844 968 1,728 1,398 2,229Assets 5,551 4,372 6,600 7,929 9,096Equity (before profit allocation) 1,431 1,253 1,511 1,600 1,589Minority interests - - 9 15 -Provisions for liabilities and charges 36 37 35 38 22Long-term debt - - - - -Non financial short-term debt 3,662 2,884 3,689 3,384 5,628Other short-term liabilities 422 198 1,356 2,892 1,857Liabilities and equity 5,551 4,372 6,600 7,929 9,096
Turnover 42,051 33,324 59,045 72,885 73,841Cash flow (before tax) 208 82 324 189 324Total profit (before tax) 193 66 294 160 288Net income 173 45 257 150 211Dividends 145 50 240 240 200
100
101
NPM/CNPN A T I O N A L E P O R T E F E U I L L E M A A T S C H A P P I JC O M P A G N I E N A T I O N A L E À P O R T E F E U I L L E
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
NOTICEIn accordance with article 80bis of the Co-ordinated Laws on Commercial
Companies, the statutory accounts presented in this chapter are an abridgedversion of the Parent Company accounts, and they include neither all the notesand information required by law nor the report of the Statutory Auditors, who
have provided an unqualified opinion. The complete accounts will be depositedat the NATIONAL BANK OF BELGIUM and will also be available
at the Company’s head office.
102
NON-CONSOLIDATED ACCOUNTS
BALANCE SHEETS(BEF thousands)
ASSETS 1996 1995 1994
FIXED ASSETS 48,326,675 48,281,150 48,172,317
III. Tangible fixed assets 1,718 4,547 13,306C. Furniture and vehicles 1,718 4,547 9,955F. Assets under construction and advance
payments - - 3,351IV. Investments 48,324,957 48,276,603 48,159,011
A. Subsidiaries1. Shareholdings 25,060,164 22,973,042 23,834,110
B. Related companies1. Shareholdings 15,342,469 18,995,785 12,999,5892. Receivables - 1,772,996 1,772,996
C. Other investments1. Stocks and shares 7,922,324 4,534,780 9,552,2462. Amounts receivables and cash guarantees - - 70
CURRENT ASSETS 16,401,285 19,146,808 16,165,353
VII. Amounts receivables within one year 7,841,266 12,565,431 8,329,648A. Trade receivables - - -B. Other receivables 7,841,266 12,565,431 8,329,648
VIII. Short-term investments 5,356,005 4,118,532 7,117,093A. Own shares 28,396 - -B. Other investments 5,327,609 4,118,532 7,117,093
IX. Cash at bank and in hand 3,080,752 2,250,780 544,426X. Deferred expenses and accrued income 123,262 212,065 174,186
TOTAL ASSETS 64,727,960 67,427,958 64,337,670
103
NON-CONSOLIDATED ACCOUNTS
BALANCE SHEETS(BEF thousands)
LIABILITIES AND EQUITY 1996 1995 1994
EQUITY 53,741,840 51,416,304 51,574,974
I. Capital 4,751,250 4,751,250 4,751,250A. Issued capital 4,751,250 4,751,250 4,751,250
II. Share premium account 42,824,428 42,824,428 42,824,428IV. Reserves 1,129,203 766,408 2,046,231
A. Legal reserve 475,125 475,125 475,125B. Non-distributable reserves
1. Own shares 362,795 - -2. Others 215 215 215
C. Tax-free reserves 221,068 221,068 1,500,891D. Distributable reserves 70,000 70,000 70,000
V. Profit carried forward 5,036,959 3,074,218 1,953,065
PROVISIONS AND DEFERRED TAXATION 23,500 142,410 24,000VII. A. Provisions for liabilities and charges 23,500 142,410 24,000
2. Tax provisions - - 21,5004. Other liabilities and charges 23,500 142,410 2,500
LIABILITIES 10,962,620 15,869,244 12,738,696VIII. Amounts payable after more than one year 3,273,750 3,273,750 3,273,750
A. Financial liabilities2. Unsubordinated debentures 3,273,750 3,273,750 3,273,750
IX. Amounts payable within one year 7,190,344 12,320,565 9,102,396A. Current portion of long-term debt - - 20,000B. Financial debts
1. Amounts due to financial institutions 1,019,941 995,612 1,218,1252. Other loans 3,500,000
C. Trade payables1. Suppliers 2,065 1,098 801
E. Taxes, salaries and social charges payable1. Taxes 77,064 48,186 65,4972. Salaries and social charges 176 176 176
F. Other liabilities 2,591,098 11,275,493 7,797,797X. Accrued expenses and deferred income 498,526 274,929 362,550
TOTAL LIABILITIES AND EQUITY 64,727,960 67,427,958 64,337,670
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NON-CONSOLIDATED ACCOUNTS
PROFIT AND LOSS STATEMENTS(BEF thousands)
EXPENSES 1996 1995 1994
A. Interest expense 395,844 487,591 570,062B. Other financial expense 143,179 82,611 163,228C. Miscellaneous goods and services 311,465 48,293 65,694D. Payroll expenses 34,532 38,432 45,053E. Miscellaneous operating expenses 140 184 206F. Depreciation and write-off of formation expenses,
tangible and intangible assets 2,560 3,351 50,951G. Write-off on 234 1,021,627 171,840
1. investments - 941,174 -2. current assets 234 80,453 171,840
H. Provisions for liabilities and charges 3,500 6,410 2,500I. Losses on disposal of 650 179,773 73,331
1. tangible and intangible fixed assets - 293 282. investments 16 168,530 72,2013. current assets 634 10,950 1,102
J. Exceptional expenses 25,987 136,000 -K. Taxes 55,716 29,020 15,986M. Profit for the year 4,910,216 2,393,518 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
PROFIT APPROPRIATION(BEF thousands)
1996 1995 1994
C. Transfer to reserves 362,795 - 60,2892. To the legal reserve - - 60,2893. To other reserves 362,795 - -
D. Profit carried forward 5,036,959 3,074,218 1,953,0651. Profit carried forward 5,036,959 3,074,218 1,953,065
F. Profit to be distributed 2,584,680 2,552,188 2,485,8261. Dividends to shareholders 2,584,680 2,552,188 2,485,826
7,984,434 5,626,406 4,499,180
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NON-CONSOLIDATED ACCOUNTS
PROFIT AND LOSS STATEMENTS(BEF thousands)
REVENUES 1996 1995 1994
A. Revenue from investments 2,732,037 2,237,842 1,611,1711. Dividends 2,697,893 2,163,936 1,576,1532. Interests 34,144 73,906 35,018
B. Revenue from current assets 722,403 890,163 988,694C. Other financial revenue 93,528 66,387 111,918E. Other operating revenue 34,050 31,566 18,933G. Write-back on 64,670 84,316 15,126
1. investments 10,091 - 72. current assets 54,579 84,316 15,119
H. Reversals of provisions for liabilities and charges 142,410 2,500 3,150I. Profits on disposal of 2,089,104 1,102,255 523,096
1. tangible and intangible fixed assets 108 - 372. investments 1,901,008 706,762 251,2373. current assets 187,988 395,493 271,822
J. Extraordinary revenue 60 - 1,545L. Adjustment of income taxes and write-back of tax
provisions 5,761 11,781
TOTAL REVENUES 5,884,023 4,426,810 3,273,633
N. Transfer from tax-free reserves - 1,279,823 -
PROFIT APPROPRIATION(BEF thousands)
1996 1995 1994A. Profit available for appropriation 7,984,434 5,626,406 4,499,180
1. Profit for the year available for appropriation 4,910,216 3,673,341 2,114,7822. Profit brought forward from the previous year 3,074,218 1,953,065 2,384,398
7,984,434 5,626,406 4,499,180
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NON-CONSOLIDATED ACCOUNTS
EXTRACT FROM THE NOTES TO THE PARENT COMPANY ACCOUNTS AT 31 DECEMBER 1996
VIII. Statement of capital
A. Share capital In BEF thousands Number of shares1. Issued capital
- opening balance 4,751,250 25,340,000- changes during the year - -- closing balance 4,751,250 25,340,000
2. Description of capital2.1. Types of shares
- ordinary 4,651,281 24,806,830- AFV 1 9,075 48,400- AFV 2 144 770- AFV 3 45,375 242,000- AFV 4 45,375 242,000
2.2. Registered or bearer shares- registered 19,172,302- bearer 6,167,698
D. Commitments to issue shares2. Subscription rights
- Number of subscription rights in issue- until 1999, at BEF 1,696 per share 200,000- until 1999, at BEF 2,365 per share 1,500,000
- Capital to be subscribed 318,750- Maximum number of shares to be issued 1,700,000
E. Capital authorized but not issued 2,000,000
G. Shareholding structure (law of 2 March 1989)At 31 December 1996, based on declarations received by that date :
Percentages
ShareholdersNumber
of shares heldnon
dilutedfully
dilutedDate
of declaration
INVESTOR 184,752 0.73 0.68 03.10.96FINGEN 139,952 0.55 0.52 03.10.96NPM/CNP 2,600 0.01 0.01 03.10.96
Sub-Group NPM/CNP 327,304 1.29 1.21 03.10.96FIBELPAR 13,643,352 53.84 50.46 03.10.96AGESPAR 478,506 1.89 1.77 03.10.96BELGIAN SKY SHOPS 192,424 0.76 0.71 03.10.96IMMOBILIÈRE BERNHEIM-OUTREMER 71,001 0.28 0.26 03.10.96FIBELPAR Group and associated companies (1) 14,712,587 58.06 54.41 03.10.96
UAP VIE 1,261,066 4.98 4.66 21.03.94ROYALE BELGE 1,149,382 4.54 4.25 21.03.94URBAINE UAP 266,666 1.05 0.99 21.03.94LLOYD BELGE 69,595 0.27 0.26 21.03.94L’ASSURANCE LIEGEOISE 42,000 0.17 0.16 21.03.94FOYER BELGE 10,666 0.04 0.04 21.03.94UAP 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
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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 onloans 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 5 %- vehicles 25 %- furniture and office equipment 20 %- computer equipment 33 %- telephone facilities 15 %
3. Investments
a) Shareholdings and other securitiesShareholdings 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.
ShareholdingsShareholdings value is estimated at the end of each financial year, based primarily on a prudent assessment of the underlying netassets, 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 increasesin the value of investments directly to section III of the balance sheet without passing through the income statement.
Other securitiesShares 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 asshareholdings.
The carrying value is reduced where there has been a permanent impairment in value.
b) Other investmentsThese are recorded at their cost or nominal value. The carrying value is reduced where there has been a permanent impairment invalue.
c) Receivables and guaranteesReceivables, including fixed interest bonds, included in investments, are written down where repayment at maturity, in whole orin 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 ofimpairments in value.
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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 ininvestments. 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 tocover 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 referredto 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 thefinancial year and involving one or more of the members of the association are charged directly to the member or membersconcerned 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 aformula 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 eachmember of the association.
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NPM/CNPN A T I O N A L E P O R T E F E U I L L E m a a t s c h a p p i jC O M P A G N I E N A T I O N A L E À P O R T E F E U I L L E
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 possibleissue of listed shares.
In such a case, this document together with the operations note published at the time of the issue will constitute theprospectus 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 areference table ; in those cases where the information is not readily available by other means, the information itself isprovided.
If a public issue does indeed take place, the information included in the present annual report will be updated in thetransaction notice.
It should however be expressly noted that, at the date of press of this document, the Company has nointention of proceeding with a new public share issue, nor is it considering any project in this direction.
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Part I : INFORMATION REGARDING RESPONSIBILITY FOR THE PROSPECTUS AND FOR THE AUDIT OFTHE ACCOUNTSThese informations will be included in the eventual operations note.
Part II : INFORMATION RELATING TO THE SHARES AND THEIR LISTING ON THE PRIMARY MARKETThis 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 officesNATIONALE 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 officewill be transferred to Rue de la Blanche Borne 12, 6280 Loverval (Gerpinnes) which has been the Company’sadministration office since April 1997, itself transferred from Boulevard Tirou 11, 6000 Charleroi. The registered officemay be transferred to any location in Belgium by decision of the Board of Directors.
3.1.1. Date of incorporation and durationThe Company was incorporated for an unlimited duration on 20 November 1906 under the name « LE GAZ RICHE » as apublic company with limited liability (« société anonyme »), by public deed executed by Maître Émile LEFÈBVRE, publicNotary in Antwerp, published in the annex of the Belgian « Official Gazette » dated 3-4 December 1906, under number6133.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 interventionof Maître Gilberte RAUCQ, public Notary in Brussels, in May and June 1997 ; these deeds will be published subsequentlyin the annex of the Belgian « Official Gazette ».
3.1.2. Legislation under which the Company operates and legal formSee point 3.1.1.
3.1.3. Objects of the CompanyAccording to Article 3 of the statutes :« The objects of the Company are the purchase, the sale, the assignment, the exchange and the management of anysecurities, shares, bonds, government bonds or any other financial or non financial assets or rights ; the holding under anyform, in any company or business in the production and/or distribution of energy, or in industry, commerce, finance, realestate or other, existing or to be incorporated.Among others, NPM/CNP may acquire through purchase, exchange, contribution, subscription, underwriting, option orany other means, any security, asset, receivables or intangible asset ; participate in any association or merger ; manage orenhance the value of its securities and participations portfolio ; realize or liquidate such assets by assignment, sale or anyother means.NPM/CNP may conduct any financial, commercial, industrial and real estate operations or transactions, directly orindirectly related to its objects or designed to realize such objects. ».
3.1.4. Commercial registersThe Company is registered in the commercial registers of Antwerp under number 53, and in Charleroi undernumber 161,072. The transfer of the registered office to Loverval will have as consequence the striking off of the Companyfrom the commercial register in Antwerp.
3.1.5. Places of consultation of public documentsThe co-ordinated articles of incorporation of NPM/CNP may be consulted at the Commercial Court in Charleroi and in theregistered office of NPM/CNP.The annual accounts are filed with the NATIONAL BANK OF BELGIUM. All appointment and dismissal of therepresentatives 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 aneventual 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.
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3.2. Share capital
3.2.0. Issued capitalThe fully paid share capital of the Company amounts to BEF 4,751,250,000. It is represented by 25,340,000 shares withno 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 sharesplaced with the company FIBELPAR which were the object of a limited subscription with the issuer. The rights attachedto 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 toexisting 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 ofthe company to the extent permitted by the Co-ordinated Laws on Commercial Companies, or to suspend the rights fora limited period.Any proposal by the Board of Directors to limit or to suspend the preferential subscription rights must be justified in adetailed report, which covers in particular the issue price and the financial consequences for Shareholders. A report isalso made up by the Auditors, in which they state that the financial information and the accounts contained in the reportby 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 inshares, of subscription rights or of other securities, may convert their holding or exercise their subscription rights andthus 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 profitsNet 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, arealso assigned the saving made by the company as a result of the tax exemption of income assigned to suchAFV 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 year1997).The Board of Directors may, within the conditions laid down by law, distribute advances on the dividend for the year.
d. LiquidationIn 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. Theremaining balance will be distributed equally over all shares.
3.2.1. Authorized share capitalBy decision of the Shareholders’ Extraordinary General Meeting of 12 June 1996, the Board of Directors authorized, for aperiod of five years starting on 9 July 1996, to increase share capital by up to BEF 2 billion in one or more stages. Themethod used to increase the share capital is to be determined by the Board and may consists of the issue of shares with orwithout voting rights. This authorization may be renewed in accordance with relevant laws. The increase in share capitaldecided on with regards to this authorization may incorporate cash or non-cash consideration or may, to the extentpermitted by the Co-ordinated Laws on Commercial Companies (CLCC), incorporate the use of reserves including theshare premium reserve. The use of reserves may take place with or without the issue of new securities. The Board ofDirectors is expressly permitted to proceed with share capital increases under the condition laid down by the CLCC, in thecase of a take-over bid relating to securities issued by the company and on condition that notice to this effect is given to theBANKING AND FINANCE COMMISSION within 3 years of the Extraordinary General Meeting of 12 June 1996. In theevent where the Board of Directors decides to increase share capital in the framework of the authorization by the issue ofshares by cash subscription, of convertible bonds, of bonds redeemable in shares, of subscription rights or of othersecurities, it may, in the interest of the company and under the conditions laid down by the CLCC, limit or cancel thepreferential rights of existing shareholders, to the advantage of a person or specific persons even if these are not staffmembers of the company or its subsidiaries.
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Under the same conditions and in accordance with 101 bis and 101 octies of the CLCC. The Board of Directors is alsoauthorized to proceed with the issue of convertible bonds or bonds redeemable in shares (whether subordinated ornon-subordinated), of subscription rights or other securities (whether or not attached to bonds), or other financialinstruments 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 ofBEF 318,750,000 (i.e. the maximum increase in share capital resulting from the exercising of the 1,500,000 warrantsissued on 28 February 1994 and the 200,000 warrants granted to staff members and certain Directors).
3.2.2. Shares not representing the capitalThere are no such shares.
3.2.3. Bonds issued, liabilities and commitments of the CompanyIn 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 of1994 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 theBelgian 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 sheetcommitments 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 sharesThe statutes of the Company do not include provisions regarding capital and rights modifications which would be morerestrictive 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
Number ofsharesissued Type of shares
Amount of thecapital
increaseShare
premiums DescriptionIssue priceper share
28.02.1994 1,474,970 ordinary shares 276,556,875 2,599,634,625
against cash, by public offer for sale 1,950
28.02.1994 1,740,460 ordinary shares 326,336,250 3,789,851,650
against cash, reserved for FIBELPAR 2,365
3.2.6. Persons in a position to influence the Company ..........................................................................................page 73.2.7. Shareholders holding more than 5 % of the capital.................................................................................page 1063.2.8. Brief description of the Group ....................................................................................... pages 7, 8, 32, 82 and 933.2.9. Own shares................................................................................................................................... pages 20 and 75
Part IV : INFORMATION ON THE ACTIVITIES OF THE COMPANY
4.1. Major activities of the Company4.1.0. Description of the major activities of the Company ............................................................................ inside cover4.1.1. Breakdown of profit and of estimated value.................................................................................... pages 22 to 294.1.2. Major branches and real-estate properties .................................................................................. pages 19 and 204.1.3. 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 contractsThe activity of the Company does not depend on licences or on specific contracts having a significant impact on its future financialsituation.
4.3. Research and developmentAs a holding company, NPM/CNP does not conduct research and development efforts.
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4.4. Litigations or arbitrationsTo the Board of Directors’ best knowledge, there is no pending litigation or arbitration which could have a significant impact onthe financial situation of the Company.
4.5. Going concernThe Company has not experienced recently any interruption in its business and is not aware of any event likely to compromise theconduct 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 904.7.1. Major investments in progress and financing..................................................................................pages 16 to 184.7.2. 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 1055.1.1. Consolidated balance sheet and profit and loss accounts ...............................................................pages 70 to 73
5.1.2. Net operating profit per shareThe non-consolidated net operating profit per share has been (in BEF) :
1996 1995 1994119.37 115.74 76.33
NPM/CNP being a holding company, the non-consolidated accounts are of little significance. The restricted consolidatedand consolidated results per share are shown page 3.
5.1.3. Dividend per share ......................................................................................................................... pages 3 and 31
5.1.4. Half-year resultsIn case more than nine months have elapsed since the end of the latest financial year, half-year results will be included inthe operations note.
5.1.5. Additional information in the case of non conformity to the European GuidelinesThe accounts of NPM/CNP being in conformity with the guidelines of the European Union, no additional informationneeds 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 levelThe information required in parts 4 and 7 is already extended to the Group level.
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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 DirectorMr. John DILS is Chairman of the Board of Directors of. CONTRÔLE TECHNIQUE AUTOMOBILE « C.T.A. », Chairman of theROYAL AUTOMOBILE CLUB DE BELGIQUE « R.A.C.B. », Honorary Vice-Chairman of BBL and Director of the ANTWERPDIAMOND BANK, of the ANTWERP DIAMOND BANK (Switzerland) and of S.G.S. BELGIUM (SOCIÉTÉ GÉNÉRALE DESURVEILLANCE).
Gilles SAMYN, Managing Director Representing the managementMr. Gilles SAMYN is Managing Director of FRÈRE-BOURGEOIS, ERBE and FIBELPAR. He is member of the ManagementCommittee 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 shareholderMr. Jean CLAMON is Member of the Directorate of BANQUE PARIBAS and Managing Director of ERBE. He is also Director ofCOMPAGNIE 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 shareholderMr. Laurent DASSAULT is Managing Director of DASSAULT INVESTISSEMENTS and of FONCIÈRE INDUSTRIELLED’INVESTISSEMENT ; he is also Director of FINANCIÈRE ET IMMOBILIÈRE MARCEL DASSAULT, of DASSAULTINDUSTRIES and of numerous companies of this aviation and electronics Group.
Willy DE CLERCQ, Director Independent DirectorMr. Willy DE CLERCQ is Minister of State, Member of the European Parliament, Chairman of the Commission for Legal Affairsand Citizenship, Vice-Chairman of the International European Movement and Chairman of the Belgian European Movement. He isalso 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 managementMr. 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 shareholderMr. Thierry DORMEUIL is responsible for the management of Group PARIBAS, Director of COMPAGNIE DE NAVIGATIONMIXTE, of GUYORMARC’H, NORD EST, AXA RE FINANCE and COBEPA. He represents SOCIÉTÉ GÉNÉRALECOMMERCIALE ET FINANCIÈRE at the Board of Directors of VIA BANQUE.
Jacques FOREST, Director Representing a direct or an indirect shareholderMr. Jacques FOREST is Chairman ot the Management Committee of P&V ASSURANCES, Censor of the NATIONAL BANK OFBELGIUM and Director of several companies including MULTIPHARMA and NAGELMACKERS.
Baron FRÈRE, Director Representing the controlling shareholderMr. 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 ofROYALE BELGE and Director of several listed companies including CLT-UFA, HAVAS, TF1 and PERNOD RICARD.
Gérald FRÈRE, Director Representing the controlling shareholderMr. Gérald FRÈRE is Managing Director of FRÈRE-BOURGEOIS and Chairman of the Executive Committee of GBL. He isamong other things Director of ERBE, FIBELPAR, PARGESA, PARFINANCE, BBL, ROYALE BELGE, COBEPA and GIB. Heis also Censor at the NATIONAL BANK OF BELGIUM.
Jean-Pierre GERARD, Director Representing a direct or an indirect shareholderMr. Jean-Pierre GERARD is Managing Director of ROYALE BELGE. He is Member ot the Executive Committee of ROYALEBELGE and of AXA-UAP. Director of other companies, including BBL, he is also Chairman of the UNION PROFESSIONNELLEDES ENTREPRISES D’ASSURANCES (Professional Association of Insurance Companies).
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Philippe HUSTACHE, Director Representing a direct or an indirect shareholderMr. Philippe HUSTACHE is Managing Director of FINANCIÈRE ET IMMOBILIÈRE MARCEL DASSAULT and Director ofseveral companies including SANOFI et BANQUE VERNES. He represents FINANCIÈRE ET IMMOBILIÈRE MARCELDASSAULT at the Board of RHONE-POULENC.
Marcel NICOLAÏ, Director Representing a direct or an indirect shareholderMr. Marcel NICOLAÏ is manager of UAP - GESTION FINANCIÈRE and of several unit trusts.
Thierry de RUDDER, Director Representing a direct or an indirect shareholderMr. Thierry de RUDDER is Managing Director of GROUPE BRUXELLES LAMBERT and of ELECTRAFINA. He is Director ofAUDIOFINA, 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 Independent DirectorMr. Marc SANTENS is Chairman of the SANTENS Group.
Giuseppe SANTINO, Director Representing a direct or an indirect shareholderMr. Giuseppe SANTINO is Managing Director of MOSANE and Member ot the Management Committee of COBEPA. He is alsoChairman 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 DirectorMr. Gustaaf VAN den BEMPT is Master in Law and in Notary Right and Qualified Accountant. He works as crisis manager forcompanies experiencing difficulties and as management consultant for small and medium-sized companies.
Philippe WILMES, Director Independent DirectorMr. Philippe WILMES is Chairman of the Executive Committee of SOCIÉTÉ FÉDÉRALE D’INVESTISSEMENT and ofSOCIÉTÉ BELGE D’INVESTISSEMENT INTERNATIONAL. He is also Director of the NATIONAL BANK OF BELGIUM andof 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 WilrijkRepresented by Georges M. TIMMERMAN
DELOITTE & TOUCHE, Reviseurs d’Entreprises S.C.,Brussels Airport Business Park - Berkenlaan, 6 – B-1831 DiegemRepresented by Claude POURBAIX
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6.2. Relations with Directors and Managers
6.2.0. Salaries and fringe benefitsBased upon the 1996 accounts (in 000 BEF) :
Paid by the Paid by subsidiariescompany of the company
To Directors of the Parent Company 21,336 2,943
To Members of the Executive Committee not Membersof the Board of Directors 300 -
Advances and loans granted to Directors - -
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 CompanyAs at 31 December 1996, no Director or Auditor was listed as a registered shareholder of the Company. Members of theBoard of Directors and of the Executive Committee were registered for 101,750 warrants at the same date. These warrantscan be exercised until November 1999 by subscription to one NPM/CNP share at the price of BEF 1,696.
6.2.2. Conflicts of interestsIn such instances, the Board of Directors establishes a special report included in the Annual Report of the Company inaccordance with legal requirements. The sharing of the construction costs of the new building in Loverval between severalrelated companies gave rise to such a report, which was presented on page 20 of the 1995 Annual Report.
6.2.3. Loans and advancesSee 6.2.0.
6.3. Stock option planThe Company issued on 30 June 1990 200,000 warrants reserved for the Personnel and the Managers ; these warrants can beexercised until November 1999 by subscription to one NPM/CNP share at a price of BEF 1,696. At the date of press of thisdocument, 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 publicsubscription offer take place, the related information would be updated in the operations note.