APPLICATION DES GAZ, S.A.
STATUTORY AUDITORS' REPORT
CONSOLIDATED ACCOUNTS
YEAR ENDED DECEMBER 31, 1995
(Free translation of the French original)
[LETTERHEAD]
[LETTERHEAD]
STATUTORY AUDITORS
MEMBERS OF THE REGIONAL COMPANY OF PARIS
APPLICATION DES GAZ, S.A.
AUDITORS' REPORT
CONSOLIDATED ACCOUNTS
YEAR ENDED DECEMBER 31, 1995
(Free translation of the French original)
In our capacity as statutory auditors, we have audited the accompanying
consolidated accounts of the Application des Gaz Company as of December 31,
1995.
These consolidated accounts are the responsibility of the Company's
management. Our responsibility is to express an opinion on these accounts
based on our audit.
We conducted our audit in accordance with French auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the consolidated accounts are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the consolidated accounts. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall consolidated
account presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the consolidated accounts present fairly, in all material
respects, the financial position of the Group as of December 31, 1995 and the
results of the Group's operations included in the consolidation for the year
then ended.
We have also reviewed the information relating to the Group contained in the
Directors' report.
We have nothing to report with respect to the fairness of such information.
The Statutory Auditors
Claude GUIT ERNST & YOUNG Audit
/s/ Claude GUIT /s/ Daniel Mary-Dauphin
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March 20, 1996
ERNST & YOUNG AUDIT - FRANCE - LYON OFFICE 3
GROUPE CAMPING GAZ
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CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1995
(in thousands of French francs)
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ASSETS Notes 1995 1994
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FIXED ASSETS, INVESTMENTS AND INTANGIBLE ASSETS
Intangible assets 3 1,844 2,815
Fixed assets 3 181,846 163,249
Financial assets 3 3,422 4,513
TOTAL 187,112 170,577
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CURRENT ASSETS
Inventories 4 196,524 196,059
Accounts receivable 5 146,690 131,374
Other receivables 6 65,223 81,239
Marketable securities 9 1,927 5
Cash and cash equivalents 9 8,693 15,917
TOTAL 419,057 424,594
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TOTAL ASSETS 606,169 595,171
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LIABILITIES Notes 1995 1994
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STOCKHOLDERS' EQUITY (before distribution of
current year net income)
Common stock 7 11,966 11,966
Statutory reserves 7 204,532 213,257
Income for the year 7 11,900 18,479
TOTAL 228,398 243,702
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LIABILITIES - LONG-TERM
Minority interest 7,124 10,087
Provisions for losses and charges 8 23,016 21,892
Debt to financial institutions 9 4,047 7,540
TOTAL 34,187 39,519
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LIABILITIES - CURRENT
Debt to financial institutions 9 102,462 79,652
Accounts payable 117,829 105,562
Other liabilities 10 123,293 126,736
TOTAL 343,584 311,950
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TOTAL LIABILITIES 606,169 595,171
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The notes to the consolidated financial statements are an integral part of
these statements.
GROUPE CAMPING GAZ
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CONSOLIDATED INCOME STATEMENT
FISCAL YEAR 1995
(in thousands of French francs)
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Notes 1995 1994
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Revenues 19-20 1,028,536 1,013,174
Cost of sales and operating expenses 11 -983,548 -962,338
OPERATING INCOME 44,988 50,836
Net interest expense 12 -17,600 -12,981
OPERATING INCOME AFTER NET INTEREST EXPENSE 27,388 37,855
Net extraordinary expense 13 -5,834 -7,385
NET INCOME BEFORE PROFIT-SHARING,
INCOME TAXES AND MINORITY INTEREST 21,554 30,470
Profit-sharing -3,581
Income taxes 14 -7,500 -6,833
Minority interest -2,019 -1,577
Amortization of acquisition difference -135
NET GROUP INCOME 11,900 18,479
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EARNINGS PER SHARE (in French francs) 9.94 15.44
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The notes to the consolidated financial statements are an integral part of
these statements.
GROUPE CAMPING GAZ
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1 - CONSOLIDATION ACCOUNTING PRINCIPLES (in thousands of French francs and
at December 31, 1995)
The consolidated financial statements have been prepared in accordance with
the applicable laws and regulations currently enacted in France.
The financial statements of those entities in the consolidated group which
have been prepared in accordance with accounting principles generally
accepted in the foreign country in which these entities are located have been
adjusted before consolidation to conform with the accounting principles used
by the Group.
1.1 PRINCIPLES OF CONSOLIDATION
All material subsidiaries under the direct or indirect control of ADG have
been consolidated. There were no material subsidiaries eligible to be
accounted for under the proportional method. The list of entities included
in the consolidation perimeter at December 31, 1995 is included in Note 2.
1.2 TRANSLATION OF FINANCIAL STATEMENTS, LIABILITIES AND RECEIVABLES
DENOMINATED IN FOREIGN CURRENCIES
The financial statements of foreign subsidiaries have been translated as
follows:
- - Balance sheet accounts have been translated at the year-end exchange rate.
- - Income statement accounts have been translated at the average exchange
rate for the year.
The effect of changes in exchange rates between fiscal years and the
difference between the end-of-year and average exchange rates are reflected
in Stockholders' Equity.
Liabilities and receivables denominated in foreign currencies have been
translated at the year-end exchange rate.
Unrealized translation gains have not been recognized in the financial
statements. Unhedged unrealized losses are reflected in provisions for
losses.
1.3 FIXED ASSETS
Fixed assets are stated at cost, except for those French entities whose
assets have been revalued under the provisions of the statutory revaluation
act of 1976.
Depreciation of fixed assets is computed on the straight-line method for all
Group entities. The useful lives are as follows:
- - Buildings 20 years
- - Improvements 10 years
- - Equipment 6 years
- - Tools 3 years
- - Tank tools 10 years
Fixed assets under leasing arrangements are not included in assets. The
leasing commitments under leasing arrangements are included in a separate
note.
1.4 INVENTORIES, TANKS AND WORK-IN-PROGRESS
Inventories, tanks and work-in-progress are stated at the lower of
acquisition or production cost, or net realizable value.
1.5 DEFERRED TAXES
Deferred taxes have been provided under the deferred method on the following
amounts:
- - all temporary differences,
- - consolidation adjustments,
- - net operating loss carryforwards and deferred tax depreciation realizable
in the near future.
In application of the rule of prudence, if total deferred tax assets exceed
total deferred tax liabilities, the amount of total deferred tax assets
recognized in the financial statements is limited to the amount of total
deferred tax liabilities.
1.6 LUMP-SUM RETIREMENT BENEFITS
Lump-sum retirement benefits are estimated based on current salaries and have
not been subjected to an actuarial calculation. They have not been recorded
in the accompanying balance sheets, except for those of the German, Japanese
and Austrian subsidiaries.
1.7 RESEARCH AND DEVELOPMENT EXPENSES
All research and development costs are expensed as incurred.
GROUPE CAMPING GAZ
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2 - CONSOLIDATED COMPANIES
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COUNTRY 1995 1994
% %
OF CONTROL
Application des Gaz France Consolidating company
Camping Gaz International Deutschland GmbH Germany 100.00 100.00
Camping Gaz Italie SRL Italy 100.00 100.00
Camping Gas Great Britain Ltd Great Britain 100.00 100.00
Camping Gaz KK Japan 100.00 100.00
Camping Gaz International Portugal Ltda Portugal 99.96 51.00
Camping Gaz Suisse AG Switzerland 99.50 99.50
Neves Caria Portugal 99.68 99.68
PT Camping Gas Indonesia Indonesia 55.00 55.00
Camping Gaz Philippines Inc Philippines 75.99 75.99
Camping Gaz KFT Hungary 100.00 100.00
Camping Gaz CS SPOL SRO Czech Republic 70.00 70.00
Camping Gaz GmbH Austria 100.00 100.00
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3 - FIXED ASSETS
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GROSS VALUE EXCHANGE 1995 GROSS VALUE
AT 01/01/95 VARIATIONS INCREASES DECREASES AT 12/31/95
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INTANGIBLE ASSETS
Patents and trademarks 6,788 335 813 6,310
Intangible client base 9,554 48 9,602
CGID intangibles 8,400 135 8,535
Software 7,795 -200 623 497 7,721
TOTAL 32,537 -152 1,093 1,310 32,168
AMORTIZATION 29,723 -82 1,946 1,263 30,324
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TANGIBLE ASSETS
Land 10,955 -197 72 31 10,799
Buildings 69,226 -972 3,907 415 71,746
Plant and equipment 230,512 -2,491 82,173 9,738 300,456
Container base inventory 23,192 -168 6,002 870 28,156
Fixed assets under
construction 48,450 -5,337 -22,739 20,374
Advance payments on
tangibles 8,878 -4,381 4,497
TOTAL 391,213 -9,165 65,034 11,054 436,028
DEPRECIATION 227,964 -2,200 37,837 9,419 254,182
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FINANCIAL ASSETS
Investments 584 584
Amounts receivable from
related companies 321 22 343
Other equity securities 275 -3 272
Other financial assets 4,368 -272 796 3,300
TOTAL 5,548 -275 22 796 4,499
PROVISIONS 1,035 42 1,077
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GROUPE CAMPING GAZ
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4 - INVENTORIES
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1995 1994
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- - Raw materials 42,579 35,840
- - Work-in-progress 14,380 7,846
- - Finished goods 126,567 128,696
- - Containers 19,476 30,783
- - Inventory provisions 6,478 7,106
5 - ACCOUNTS RECEIVABLE
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1995 1994
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- - Accounts receivable 151,459 135,644
- - Provision for doubtful receivables 4,769 4,270
6 - OTHER ASSETS
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1995 1994
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- - Deferred tax assets 13,440 12,624
- - Prepaid expenses 4,705 4,899
- - Taxes receivable and other 47,078 63,716
7 - CHANGES IN STOCKHOLDERS' EQUITY
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1995 1994
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STOCKHOLDERS' EQUITY AT
BEGINNING OF YEAR 243,702 251,065
- - Dividends paid -25,023 -25,491
- - Net income 11,900 18,480
- - Changes in reserves 0 0
- - Exchange differences -2,228 -384
- - Other 47 32
STOCKHOLDERS' EQUITY AT END OF YEAR 228,398 243,702
8 - PROVISIONS FOR LOSSES AND CHARGES
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AT CHG. AT
12/31/94 12/31/95
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- - General provision for
doubtful receivables 3,000 3,000
- - Litigation and
miscellaneous 1,245 375 1,620
- - Guarantees 2,575 140 2,715
- - Unrealized translation losses 2,172 10 2,182
- - Personnel 2,000 227 2,227
- - Retirement 9,085 550 9,635
- - Other charges 1,815 -178 1,637
GROUPE CAMPING GAZ
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9 - CHANGE IN NET DEBT DUE TO FINANCIAL INSTITUTIONS
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1995 1994
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Loans and debt due to financial institutions - long term 4,047 7,540
Loans and debt due to financial institutions - current 102,462 79,652
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A - GROSS DEBT DUE TO FINANCIAL INSTITUTIONS 106,509 87,192
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Marketable securities 1,927 5
Cash and cash equivalents 8,693 15,917
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B - FINANCIAL ASSETS 10,620 15,922
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C - NET DEBT DUE TO FINANCIAL INSTITUTIONS AT
DECEMBER 31 (A MINUS B) 95,889 71,270
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D - NET DEBT DUE TO FINANCIAL INSTITUTIONS AT JANUARY 1 71,270 75,779
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E - INCREASE/DECREASE IN NET DEBT DUE TO
FINANCIAL INSTITUTIONS 24,619 -4,509
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Fair value of marketable securities 1,927 5
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GROUPE CAMPING GAZ
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10 - OTHER LIABILITIES
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1995 1994
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- - Taxes payable - current 3,347 1,094
- - Accrued payroll and taxes 36,978 41,296
- - Accounts payable to fixed assets vendors 6,733 10,178
- - Other accrued liabilities 59,498 57,522
- - Deferred taxes 16,737 16,645
11 - OPERATING REVENUES AND EXPENSES
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1995 1994
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- - Cost of sales 473,374 482,447
- - Payroll and payroll taxes 240,165 237,988
- - Other operating expenses 228,883 225,189
- - Depreciation, amortization and provisions 41,126 16,714
12 - FINANCIAL INCOME AND EXPENSES
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1995 1994
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- - Interest and financial expenses -19,743 -19,440
- - Interest and financial income 254 3,073
- - Exchange gains 1,889 3,386
13 - EXTRAORDINARY INCOME AND EXPENSE
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1995 1994
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- - Disposal of fixed assets -477 2,004
- - Termination payment -3,663 -4,926
- - Inventory returns -4,254
- - Litigation costs 346 -774
- - CGO goodwill amortization -787 0
- - ROSE/CGGB activity exit cost -1,087 0
- - Other -170 565
14 - INCOME TAXES
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1995 1994
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- - Income taxes - current 7,638 4,177
- - Income taxes - deferred -724 2,130
- - Excess dividends distribution 586 526
15 - COMMITMENTS
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1995 1994
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- - Leasing arrangements 9,598 12,882
- - Foreign currency forward contracts purchased 0 19,523
- - Foreign currency forward contracts sold 293 29,281
- - Consolidated liabilities secured by tangible assets 3,088 3,070
GROUPE CAMPING GAZ
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16 - COMPENSATION OF OFFICERS
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This information is not supplied, as it would result in disclosing individual
compensation amounts.
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17 - AVERAGE MONTHLY HEADCOUNT
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- 1995 1,227
- 1994 1,235
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18 - RETIREMENT BENEFIT COMMITMENTS
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Commitments for retirement benefits not provided for and not covered by
retirement insurance is approximately 25,940,000 FRF. Such obligations
relating to the German, Japanese and Austrian subsidiaries are provided for
and amount to 9,635,000 FRF.
19 - EXCHANGE RATES USED
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COUNTRY CURRENCY AVERAGE RATE END OF YEAR RATE
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GERMANY 1 DEM 3.48 3.42
UNITED KINGDOM 1 GBP 7.87 7.60
ITALY 1,000 ITL 3.07 3.09
PORTUGAL 100 PTE 3.327 3.28
JAPAN 100 JPY 5.33 4.75
SWITZERLAND 1 CHF 4.22 4.26
HONG KONG 100 HKD 63.4
INDONESIA 1,000 IDR 2.20 2.11
PHILIPPINES 100 PHP 19.15 18.7
HUNGARY 100 HUF 3.94 3.51
CZECH REPUBLIC 100 CSK 18.75 18.40
AUSTRIA 100 ATS 49.60 48.60
GROUPE CAMPING GAZ
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20 - DISTRIBUTION OF CONSOLIDATED SALES
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1995 1994 % CHANGE
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GAS 299,572 292,980 +2.25
EQUIPMENT 728,964 720,194 +1.22
TOTAL 1,028,536 1,013,174 N.S.
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21 - INFORMATION BY GEOGRAPHIC AREAS
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EUROPE ASIA REST OF THE WORLD TOTAL
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SALES
1995 822,156 160,613 45,767 1,028,536
1994 816,590 159,133 37,451 1,013,174
PAYROLL EXPENSES
1995 222,679 17,485 240,164
1994 218,142 19,846 237,988
AVERAGE HEADCOUNT
1995 965 262 1,227
1994 986 249 1,235