Statement of Financial Position

Assets

Dec.31st 3017

De 31st 2016

Non Current Assets

Goodwill

17,285.00

17,372.00

Intangible Assets Net

6,904.00

6,639.00

Property, Plant and Equipment net

51,024.00

57,739.00

Available for sale securities

2,656.00

2,997.00

Loans and receivables at amortised cost

2,976.00

2,250.00

Derivative Instrument

2,948.00

3,603.00

Investment in entities accounted for using equity method

7,409.00

624.00

Other Assets

567.00

431.00

Deferred Tax Assets

803.00

1,250.00

TOTAL NON CURRENT ASSETS

Loans and receivables at amortised cost

599.00

596.00

Derivative instruments

7,378.00

9,047.00

Trade and receivables net

20,311.00

20,535.00

Inventories

4,155.00

3,666.00

Other assets

8,492.00

10,692.00

Financial assets at fair value through income

1,608.00

1,439.00

Cash and cash equivalents

8,931.00

9,825.00

Assets classified as held for sale

6,587.00

3,506.00

TOTAL CURRENT ASSETS

58,131.00

59,595.00

TOTAL ASSETS

150,332.00

158,499.00

LIABILITIES

Dec.31st 3017

De 31st 2016

Shareholders

36,639.00

39,578.00

Non controlling interest

5,938.00

5,870.00

TOTAL EQUITY

Non-Current Assets

Provisions

18,428.00

19,461.00

Long Term Borrowing

25,292.00

24,411.00

Derivative Instrument

2,980.00

3,410.00

Other financial liabilities

32.00

200.00

Other liabilities

1,009.00

1,203.00

Deferred Tax liabilities

5,220.00

6,775.00

TOTAL NON CURRENT LIABILITIES

52,960.00

55,461.00

CURRENT LIABILITIES

Provisions

3,340.00

2,747.00

Short term borrowing

8,176.00

12,539.00

Derivative instruments

8,720.00

9,228.00

Trade and other payables

16,432.00

17,075.00

Other liabilities

14,756.00

15,702.00

Liabilities directly associated with asets clasified as held for sale

3,371.00

300.00

TOTAL CURRENT LIABILITIES

54,795.00

57,591.00

TOTAL EQUITY AND LIABILITIES

15,033.00

158,499.00

INCOME STATEMENT

Revenue

65,029.00

Purchase

-36,740.00

Personnel cost

10,082.00

Depreciation, amortization and provision

-3,736.00

Other operating expenses

-11,077.00

Other operating income

1,441.00

CUREENT OPERATING INCOME

4,835.00

Share in net income ofentities accounted for using the equity method

437.00

CURRENT OPERATING INCOME AFTER SHARE IN NET INCOME OF ENTITIES ACCOUNTED FOR USING THE EQUITY METHOD

5,273.00

Mark-to market commodity contracts than trading instrument

-307.00

Impairments losses

-1,317.00

Restructuring costs

-671.00

Changes in scope of consolidation

752.00

Other non-recurring items

-911.00

INCOME(LOSS) FROM OPERATING ACTIVITIES

2,819.00

Financial expenses

-2,122.00

Financial Income

827.00

NET FINANCIAL INCOME(LOSS)

-1,296.00

Income tax benefit(expense)

425.00

NET INCOME(LOSS) RELATING TO CONTINUED OPERATION

1,948.00

NET INCOME(LOSS) RELATING TO DISCONTINUED OPERATION

290.00

NET INCOME(LOSS)

2,238.00

Net income (loss) Group shares

1,423.00

of which net income(loss) relating to continue operation, Group share

1,226.00

of which net income(loss) relating to discontinue operation, Group share

196.00

Non-Controlling interests

815.00

of which Non-controlling interests relating to continue operation

722.00

of which Non-controlling interests relating to discontinue operation

93.00

BASIC EARNINGS/(LOSS) PER SHARE(EUROS)

0.53

of which basic earning(loss) relating to continue operation per share

0.45

of which basic earning(loss) relating to discontinue operation per share

0.08

DILUTED EARNINGS(LOSS) PER SHARE (EUROS)

0.53

of which Diluted earnings(loss) relating to continue operatios per share

0.45

of which Diluted earnings(loss) relating to discontinue operatios per share

0.08

Based on the above:

1)a. Appraise GDF SUEZ's capital structure using the tools discussed in the module.

b. Critically evaluate theoretical advantages and disadvantages of the company's capital structure with regards to the debt and equity structure of the business. How these advantages and disadvantages apply to the specific company? Your answer must be accompanied by significant evidence from the literature.

2)a. Assess the above company from a short-term financing perspective and comment on the application of the matching principle. What conclusions can you draw, how are they linked with the academic literature?

3)b. Critically evaluate the potential advantages and disadvantages of the GDF SUEZ'sstrategy around the working capital and backup your answer with significant evidence from the literature