Consolidated balanCe sheet as at 31 deCember
Note: Amounts in thousands of euros 2008 2007
non-current assets
13 Property, plant and equipment 72,782 66,680
14 Goodwill 922,813 861,375
15 Other intangible assets 140,319 105,797
17 Financial assets 7,946 7,049
18 Deferred income tax assets 50,721 41,065
24 Other non-current assets 5,534 4,992
1,200,115 1,086,958
Current assets
19 Trade and other receivables 680,820 800,353
Current income tax receivables 3,579 17,002
20 Cash and cash equivalents 82,713 55,136
767,112 872,491
total assets 1,967,227 1,959,449
21 Capital and reserves attributable to equity holders
Share capital 321,244 321,095 Other reserves 16,071 15,881 Retained earnings 332,462 347,708 669,777 684,684 minority interests 1,402 1,028 total equity 671,179 685,712 non-current liabilities 23 Borrowings 486,534 460,499
24 Retirement benefit obligations 1,733 1,513
25 Other provisions 16,899 7,496
18 Deferred income tax liabilities 50,491 38,768
555,657 508,276
Current liabilities
26 Borrowings 147,061 164,060
27 Trade and other payables 511,419 555,633
Current income tax liabilities 43,353 33,808
28 Derivative financial instruments 15,385 2,415
25 Other provisions 23,173 9,545
740,391 765,461
total liabilities 1,296,048 1,273,737
8 9
Consolidated statement of Changes in shareholders’ equity
Attributable to equity holders of the company
share other retained minority total
Note: Amounts in thousands of euros capital reserves earnings interests equity
balance as at 1 january 2007 320,580 16,973 236,867 1,129 575,549
Net income for 2007 - - 140,011 502 140,513
Currency translation differences - -81 - - -81
total income for 2007 - -81 140,011 502 140,432
8.2 Share plan - 3,815 - - 3,815
8.2 Exercised option rights 514 - - - 514
21 Repurchase of shares - -4,826 - - -4,826
Acquisition of minority interests - - - -473 -473
22.3 Dividends relating to 2006 - - -29,170 - -29,170
Dividends paid to minority
interest holders - - - -130 -130
23.2 Conversion of convertible bonds 1 - - - 1
515 -1,011 -29,170 -603 -30,269
balance as at 31 december 2007 321,095 15,881 347,708 1,028 685,712
balance as at 1 january 2008 321,095 15,881 347,708 1,028 685,712
Net income for 2008 - - 16,885 1,210 18,095
Currency translation differences - -619 - - -619
total income for 2008 - -619 16,885 1,210 17,476
8.2 Share plan - 1,532 - - 1,532
8.2 Exercised option rights 149 - - - 149
21 Repurchase of shares - -496 - - -496
21.3 Change resulting from
settlement from share plan - -227 227 - -
6.1 Through acquisition of subsidairies - - - 3,192 3,192 Acquisition of minority interests - - - -3,090 -3,090
22.3 Dividends relating to 2007 - - -32,358 - -32,358
Dividends paid to minority
interest holders - - - -938 -938
149 809 -32,131 -836 -32,009
9 9
annual accounts
Consolidated Cash flow statement
Note: Amounts in thousands of euros 2008 2007
Cash flow from operating activities
Income before taxes 63,830 210,835
Adjusted for:
8 Depreciation and impairment of tangible and intangible assets 120,826 43,490 13, 15 Result on disposal of tangible and intangible assets 479 206
6 Result on disposal of subsidiaries - -247
10 Financial costs 54,136 36,024
11 Financial income -1,301 -3,000
Amortisation of capitalised borrowing costs -4,044 -3,930 8.2 Share plan expenses processed via capital and reserves attributable
to equity holders 1,532 3,815
Currency translation differences -572 -110
24, 25 Change in pension-related liabilities and other provisions 22,731 -8,796
24 Change in other non-current assets -542 5,572
Changes in working capital:
– trade and other receivables 146,237 -25,646
– trade and other payables -89,353 -18,594
Cash flow from operating activities 313,959 239,619
Income tax paid -37,449 -38,230
Net cash flow from operating activities 276,510 201,389
Cash flow from investment activities
6 Acquisition of subsidiaries -94,669 -56,584
13 Investment in property, plant and equipment -23,263 -30,206
15 Investment in intangible assets -13,432 -11,957
6 Proceeds from disposal of subsidiary - 3,125
17 Payments on / proceeds from borrowings and guarantee deposits -147 21 Net cash flow from investment activities -131,511 -95,601
Cash flow from financing activities
21 Proceeds from issuance of shares 149 514
21 Buyback of shares -496 -4,826
28 Payments on derivatives -3,144 -
28 Proceeds from derivatives 492 4,830
23 Proceeds from borrowings 39,801 44,314
23 Repayments of borrowings -76,103 -58,864
Interest paid -35,544 -34,513
Interest received 1,329 3,000
22 Dividends paid -32,358 -29,170
Dividends paid to minority interest holders -938 -130 Net cash flow from financing activities -106,812 -74,845
increase in cash and cash equivalents 38,187 30,943
Change in cash and cash equivalents
Cash and cash equivalents as at 1 January 43,532 12,589 Increase in cash and cash equivalents 38,187 30,943 20 Cash and cash equivalents as at 31 December 81,719 43,532
0 0 1
1 general.
usg People n.v. has its registered office in almere, the netherlands. usg People provides all types of flexible employment services and a range of other services in the area of human resources, education & training and customer care. the group operates in 13 countries. the consolidated ifrs financial statements of the com- pany for the year ended 31 december 2008 comprise the company and its subsidiaries (together referred to as ‘the group’).
an overview of the main subsidiaries can be found in note 32. the corporate structure of usg People n.v. is a legal entity with limited liability (public limited company). the shares of the Company are listed on the nyse euronext amsterdam stock exchange.
the financial statements were prepared and approved for publication by the executive board on 3 march 2009. the annual report and financial statements for 2008 were discussed at the meeting of the supervisory board on 3 march 2009 and will be submitted to the general meeting of shareholders on 21 april 2009 for adoption. in the preparation of the financial statements of usg People n.v. the exemption contained in art. 402 book 2 of the dutch Civil Code was applied with respect to the corporate profit and loss statement.
2 fundamental prinCiples of valuation and determination of results.
2.1 prinCiples of preparation and valuation.
the consolidated financial statements for 2008 have been prepared in accordance with international financial reporting standards (ifrs) as accepted within the european union.
the financial statements are presented in euros (€). amounts are shown in thousands of euros unless otherwise
indicated. the euro is the functional and presentation currency of the group.
Preparing the financial statements in accordance with ifrs means that management is required to make assessments, estimates and assumptions that influence the applica- tion of regulations and the amounts reported for assets, equity, liabilities, commitments, income and expenses. the estimates made and the related assumptions are based on historical experience and various other factors which are considered to be reasonable under the given circum- stances. financial assets and financial liabilities (includ- ing derivative instruments) are initially recognised at fair value. subsequent valuations of receivables and liabilities are based on amortised cost. subsequent valuations of derivatives are based on fair value. the estimates and assumptions serve as the basis for assessing the value of recognised assets and liabilities whose amounts cannot currently be determined from other sources. however, actual results may differ from the estimates.
estimates and underlying assumptions are subject to constant assessment. Changes in estimates and assumptions are recognised either in the period in which the estimates are revised (if the revision relates exclusively to the period in question), or in the period of revision and in future periods (if the revision affects both the current and future periods).
assessments made by management under ifrs that have a significant impact on the financial statements and estimates that carry the risk of a possible material inaccuracy in the following year are stated in note 4. the principles of valuation and determination of results have been applied consistently by the group companies during the periods presented in these consolidated financial statements.
standards, amendments and interpretations effective from 2008. ifriC 14 ‘ias 19 - the limit on a defined benefit asset, minimum funding requirements and their