As an addition to the Balance Sheet evolution of Mondragon we present the following chart showing the composition of its financial statements during the last two years, structured according to the format of the Added Value retail.
Value added generated by MONDRAGON [millions of euros]
| HEADING |
2009 |
2010 |
Annual Variation |
| Amount |
% distr. |
Amount |
% distr. |
Amount |
% |
| Value Added |
3,961 |
100.0 |
3,741 |
100.0 |
(220) |
(5.6) |
| Personnel Costs |
(2,375) |
(60.0) |
(2,389) |
(63.9) |
14 |
0.6) |
| Internal Yield |
1,586 |
40.0 |
1,352 |
36.1 |
(234) |
(14.8) |
| Financial Costs |
(620) |
(15.7) |
(424) |
(11.3) |
(196) |
(31.6) |
| Cash Flow |
966 |
24.4 |
928 |
24.8 |
(38) |
(3.9) |
| Amortizations & Depreciations |
(596) |
(15.0) |
(582) |
(15.5) |
(14) |
(2.3) |
| Operating Profit |
370 |
9.3 |
346 |
9.3 |
(24) |
(6.5) |
| Provisions, Other Income & Tax |
(309) |
(7.8) |
(168) |
(4.5) |
(141) |
(45.6) |
| Trading Profit |
61 |
1.5 |
178 |
4.8 |
(117) |
(191.8) |
The total value added generated by MONDRAGON in 2010 has been quantified at € 3,741m, with a contraction of 5.6% over the figure recorded the previous year, attributed mainly to the Finance area, where prevailing low interest rates during the last year reduced their level of income and net interest margin, affecting its value.
The largest contributor to the total value added has come from the Industrial area (€ 1,802m, 48% of total), followed by the Retail Area (38%), corresponding to 14% in the Finance area.
Personnel expenses (€ 2,389m) virtually repeat the previous year's figure, with a 5% increase in the Industry area, consistent with the increased activity and the generation of employment, mainly because of the thrust of external demand. While the other two areas, which are more oriented to the domestic market, have recorded reductions in staff costs, due to still finding itself in the processes of internal adjustment.
For its part, Financial Expenses have continued to decline, falling by € 196m compared to 2009 (-32%). Most of the cuts have come from the lower interest paid by Caja Laboral to savers, whichare in line with the fall of the Euribor to its lowest historical levels.
To this it must be added that, although it was on a smaller scale, the other two areas have registered declines in financial expenses over those incurred in 2009.
The amount of depreciation calculated by MONDRAGON in 2010 was € 582m, with a moderate 2.3% retreat. The Industrial area is the one that has accounted for a higher depreciation (€ 316m, 54% of total), followed by the Retail area (€ 241m, 41% of the total).
After the subtraction of all costs are identified, it finishes with the Operating results. This amount stood at € 346M in 2010. This is an estimated figure in view of the context of the recession of the Spanish economy in the past year, which has seen a burden for businesses that allocate their products and services primarily to the domestic market.
The amounts allocated to endowments, provisions and taxes have been lower than in 2009. Added to the results outside the usual business themselves, they have been quantified at € 168,000,000.
Following these movements, the net results for the year has been estimated at € 178m, almost three times the amount achieved in 2009, in an exercise in which the current difficult circumstances were overcome, and whichproduced better results than one would have expected at the beginning.