{ "documentInfo": { "documentType": "https://xbrl.org/2021/xbrl-json", "features": { "xbrl:canonicalValues": true }, "namespaces": { "ONT": "http://ontex.com/2022-12-31", "ifrs-full": "http://xbrl.ifrs.org/taxonomy/2021-03-24/ifrs-full", "iso4217": "http://www.xbrl.org/2003/iso4217", "scheme": "http://standards.iso.org/iso/17442", "xbrl": "https://xbrl.org/2021", "xbrli": "http://www.xbrl.org/2003/instance" }, "taxonomy": [ "http://ontex.com/2022-12-31/549300AQESC6JJOPW253-2022-12-31.xsd" ] }, "facts": { "s8_notes__5__14-1": { "value": "STATEMENT OF THE BOARD OF DIRECTORS The Board of Directors of Ontex Group NV certifies in the name and on behalf of Ontex Group NV, that to the best of their knowledge, \u2022 the consolidated financial statements, established in accordance with International Financial Reporting Standards (\u201cIFRS\u201d) as adopted by the European Union, give a true and fair view of the assets, financial position and results of Ontex Group NV and of the entities included in the consolidation;7.1.2. Basis of preparation These consolidated financial statements of the Ontex Group NV for the year ended December 31, 2022 have been prepared in compliance with IFRS (\u201cInternational Financial Reporting Standards\u201d) as adopted by the European Union. These include all IFRS standards and IFRIC interpretations issued and effective as at December 31, 2022. The new standards, amendments to standards and interpretations that are mandatory for the first time for the financial year beginning January 1, 2022, did not have a significant impact. No new standards, amendments to standards or interpretations were early adopted. These financial statements are prepared on an accrual basis and on the assumption that the entity is in going concern and will continue in operation in the foreseeable future. The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the Group accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 7.4. IFRS accounting standards to be adopted as from 2022 and onwards The following relevant new standards and amendments to existing standards have been published and endorsed by the European Union and are mandatory for the first time for the financial periods beginning on or after January 1, 2022: Amendments to IFRS 3 Business Combinations update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. Amendments to IAS 16 Property, Plant and Equipment prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss. Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets specify which costs a company includes when assessing whether a contract will be loss-making. Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases. Amendment to IFRS 16 Leases Covid 19-Related Rent Concessions beyond 30 June 2021 (effective 01/04/2021), with early application permitted. The amendments extend, by one year, the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. In particular, the amendment permits a lessee to apply the practical expedient regarding COVID-19-related rent concessions to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022 (rather than only payments originally due on or before 30 June 2021). The amendment is effective for annual reporting periods beginning on or after 1 April 2021 (earlier application permitted, including in financial statements not yet authorized for issue at the date the amendment is issued). The above-mentioned standards did not have an impact on the financial statements. Relevant IFRS accounting pronouncements to be adopted as from 2023 onwards A number of new standards, amendments to existing standards and annual improvement cycles have been published and are mandatory for the first time for reporting periods beginning on or after January 1, 2023 and have not been early adopted. Those which may be the most relevant to the Ontex Group\u2019s consolidated financial statements are set out below, but are expected not to have a significant impact on the Ontex\u2019 consolidated financial statements. Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (effective 1 January 2023). The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies. The IAS 1 amendment requires companies to disclose their material accounting policy information rather than their significant accounting policies. Further, the amendment to IAS 1 clarifies that immaterial accounting policy information needs not be disclosed. To support this amendment, the Board also amended IFRS Practice Statement 2, \u2018Making Materiality Judgements\u2019, to provide guidance on how to apply the concept of materiality to accounting policy disclosures. Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (effective 1 January 2023). The amendment to IAS 8, \u2018Accounting Policies, Changes in Accounting Estimates and Errors\u2019, clarifies how companies should distinguish changes in accounting policies from changes in accounting estimates. Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (effective 1 January 2023). The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The main change in the amendments is an exemption from the initial recognition exemption of IAS 12.15(b) and IAS 12.24. Accordingly, the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition. The above mentioned standards are not expected to have a significant impact on the financial statements. Financial reporting in hyperinflationary economies In 2022, the Turkish economy faced further high inflation resulting in the three-year cumulative inflation of Turkey to exceed 100%, thereby triggering the requirement to transition to hyperinflation accounting as prescribed by IAS 29 Financial Reporting in Hyperinflationary Economies. IAS 29 requires to report the results of the company\u2019s operations in Turkey as if these were highly inflationary as of 1 January 2022. Under IAS 29, the non-monetary assets and liabilities stated at historical cost, the equity and the income statement of subsidiaries operating in hyperinflationary economies are restated for changes in the general purchasing power of the local currency applying a general price index. These re-measured accounts are used for conversion into euro at the period closing exchange rate. As a result, the statement of financial position and net results of subsidiaries operating in hyperinflation economies are stated in terms of the measuring unit current at the end of the reporting period.", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__11": { "value": "Ontex Group NV", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__6": { "value": "Ontex Group NV", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__5": { "value": "Ontex Group NV", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__15": { "value": "1.1. CORPORATE INFORMATION The consolidated financial statements of Ontex Group NV for the year ended December 31, 2022 were authorized for issue in accordance with a resolution of the Board of Directors on March 16, 2023. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__12": { "value": "1.2. BUSINESS ACTIVITIES Ontex is a leading international provider of personal hygiene solutions, with expertise in baby care, feminine care and adult care. Ontex\u2019s innovative products are distributed in more than 110 countries through leading retailer brands, lifestyle brands and Ontex brands. Employing approximately 9,000 passionate people all over the world, Ontex has a presence in 21 countries, with its headquarters in Aalst, Belgium", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__10": { "value": "Ontex has a presence in 21 countries, with its headquarters in Aalst, Belgium", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__8": { "value": "Belgium", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__7": { "value": "Ontex Group NV is a limited-liability company incorporated as a \u201cnaamloze vennootschap\u201c (\u201cNV\u201d) under Belgian law", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__13": { "value": "Korte Keppestraat 21, 9320 Erembodegem (Aalst), Belgium", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__9": { "value": "Korte Keppestraat 21, 9320 Erembodegem (Aalst), Belgium", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f24882": { "value": "797900000", "decimals": -5, "dimensions": { "concept": "ifrs-full:Goodwill", "entity": "scheme:549300AQESC6JJOPW253", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f24886": { "value": 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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS7.1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 7.1.1. Introduction The accounting policies used to prepare the consolidated financial statements for the period from January 1, 2022 to December 31, 2022 are consistent with those applied in the audited consolidated financial statements for the year ended December 31, 2021 of Ontex Group NV. The accounting policies have been consistently applied to all the periods presented. 7.1.2. Basis of preparation These consolidated financial statements of the Ontex Group NV for the year ended December 31, 2022 have been prepared in compliance with IFRS (\u201cInternational Financial Reporting Standards\u201d) as adopted by the European Union. These include all IFRS standards and IFRIC interpretations issued and effective as at December 31, 2022. The new standards, amendments to standards and interpretations that are mandatory for the first time for the financial year beginning January 1, 2022, did not have a significant impact. No new standards, amendments to standards or interpretations were early adopted. These financial statements are prepared on an accrual basis and on the assumption that the entity is in going concern and will continue in operation in the foreseeable future. The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the Group accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 7.4. IFRS accounting standards to be adopted as from 2022 and onwards The following relevant new standards and amendments to existing standards have been published and endorsed by the European Union and are mandatory for the first time for the financial periods beginning on or after January 1, 2022: Amendments to IFRS 3 Business Combinations update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. Amendments to IAS 16 Property, Plant and Equipment prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss. Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets specify which costs a company includes when assessing whether a contract will be loss-making. Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases. Amendment to IFRS 16 Leases Covid 19-Related Rent Concessions beyond 30 June 2021 (effective 01/04/2021), with early application permitted. The amendments extend, by one year, the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. In particular, the amendment permits a lessee to apply the practical expedient regarding COVID-19-related rent concessions to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022 (rather than only payments originally due on or before 30 June 2021). The amendment is effective for annual reporting periods beginning on or after 1 April 2021 (earlier application permitted, including in financial statements not yet authorized for issue at the date the amendment is issued). The above-mentioned standards did not have an impact on the financial statements. Relevant IFRS accounting pronouncements to be adopted as from 2023 onwards A number of new standards, amendments to existing standards and annual improvement cycles have been published and are mandatory for the first time for reporting periods beginning on or after January 1, 2023 and have not been early adopted. Those which may be the most relevant to the Ontex Group\u2019s consolidated financial statements are set out below, but are expected not to have a significant impact on the Ontex\u2019 consolidated financial statements. Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (effective 1 January 2023). The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies. The IAS 1 amendment requires companies to disclose their material accounting policy information rather than their significant accounting policies. Further, the amendment to IAS 1 clarifies that immaterial accounting policy information needs not be disclosed. To support this amendment, the Board also amended IFRS Practice Statement 2, \u2018Making Materiality Judgements\u2019, to provide guidance on how to apply the concept of materiality to accounting policy disclosures. Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (effective 1 January 2023). The amendment to IAS 8, \u2018Accounting Policies, Changes in Accounting Estimates and Errors\u2019, clarifies how companies should distinguish changes in accounting policies from changes in accounting estimates. Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (effective 1 January 2023). The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The main change in the amendments is an exemption from the initial recognition exemption of IAS 12.15(b) and IAS 12.24. Accordingly, the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition. The above mentioned standards are not expected to have a significant impact on the financial statements. Financial reporting in hyperinflationary economies In 2022, the Turkish economy faced further high inflation resulting in the three-year cumulative inflation of Turkey to exceed 100%, thereby triggering the requirement to transition to hyperinflation accounting as prescribed by IAS 29 Financial Reporting in Hyperinflationary Economies. IAS 29 requires to report the results of the company\u2019s operations in Turkey as if these were highly inflationary as of 1 January 2022. Under IAS 29, the non-monetary assets and liabilities stated at historical cost, the equity and the income statement of subsidiaries operating in hyperinflationary economies are restated for changes in the general purchasing power of the local currency applying a general price index. These re-measured accounts are used for conversion into euro at the period closing exchange rate. As a result, the statement of financial position and net results of subsidiaries operating in hyperinflation economies are stated in terms of the measuring unit current at the end of the reporting period. 7.1.3. Consolidation Subsidiaries Subsidiaries are all entities over which the Group has control. Control is established when the Group is exposed, or has the rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration agreement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired, liabilities assumed and contingent liabilities assumed in a business combination are measured initially at their fair values at acquisition date. On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interest in the acquiree at fair value or at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s net assets. The excess of the consideration of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the Group\u2019s share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary in the case of a bargain purchase, the difference is recognized directly in the income statement. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated but considered an impairment indicator of the asset transferred. Transactions with non-controlling interests The Group treats the transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of the net assets of the subsidiary is recorded in equity. Gains and losses on disposal to non-controlling interests are also recorded in equity. When the Group ceases to have control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequent accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. 7.1.4. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Separately recognized goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. The goodwill recognized in the statement of financial position is allocated to three Cash-Generating Units (CGUs). These CGUs are Europe, Russia and North America. They represent the lowest level within the entity at which the goodwill is monitored for internal management purposes. 7.1.5. Foreign currencies Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). The consolidated financial statements are presented in euro, which is the Group\u2019s presentation currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Foreign exchange gains and losses that relate to interest-bearing debts and cash and cash equivalents are presented in the income statement within \u2018Net finance cost\u2019. All other foreign exchange gains and losses are presented in the income statement within \u2018Other operating income/(expenses), net\u2019. For the purpose of presenting consolidated financial statements, assets and liabilities of the Group\u2019s foreign operations are translated at the closing rate at the end of the reporting period. Items of income and expense are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and equity items are translated at historical rates. The resulting exchange rate differences are recognized in other comprehensive income and accumulated in a separate component of equity. The principal exchange rates that have been used are as follows: December 31, 2022 December 31, 2021 Currency Closing Rate Av Rate Year Closing Rate Av Rate Year AUD 1.5693 1.5174 1.5615 1.5747 BRL 5.6386 5.4432 6.3101 6.3813 CZK 24.1160 24.5603 24.8580 25.6468 GBP 0.8869 0.8526 0.8403 0.8600 MXN 20.8560 21.2045 23.1438 23.9903 PLN 4.6808 4.6845 4.5969 4.5640 RUB 78.9950 74.0691 85.3004 87.2321 DZD 147.1816 150.2997 158.2669 160.2390 USD 1.0666 1.0539 1.1326 1.1835 7.1.6. Intangible assets An intangible asset is recognized on the statement of financial position when the following conditions are met: (1) the asset is identifiable, i.e. either separable (if it can be sold, transferred, licensed) or it results from contractual or legal rights; (2) it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group; (3) the Group can control the resource; and (4) the cost of the asset can be measured reliably. Intangible assets are carried at acquisition cost (including the costs directly attributable to the transaction) less any accumulated amortizations and less any accumulated impairment losses. Within the Group, internally generated intangibles represent IT projects and product/process development projects. Development costs that are directly attributable to the design and testing of identifiable and unique projects controlled by the Group are recognized as intangible assets when the following criteria are met: \u2022 it is technically feasible to complete the project so that it will be available for use \u2022 management intends to complete the project and use or sell it \u2022 there is an ability to use or sell the project \u2022 it can be demonstrated how the project will generate probable future economic benefits \u2022 adequate technical, financial and other resources to complete the development and to use or sell the project are available, and \u2022 the expenditure attributable to the project during its development can be reliably measured. The Group\u2019s systems allow a reliable measure of expenses directly attributable to the different IT and product/process development projects. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Externally acquired software is carried at acquisition cost less any accumulated amortization and less any accumulated impairment loss. Maintenance costs as well as the costs of minor upgrades whose objective is to maintain (rather than increase) the level of performance of the asset are expensed as incurred. Borrowing costs that are directly attributable to the acquisition, construction and or production of a qualifying intangible asset are capitalized as part of the cost of the asset. Intangible assets are amortized on a systematic basis over their useful life, using the straight-line method. The applicable useful lives are: Intangible assets Brands 20 years IT implementation costs 5 years Capitalized development costs 3 to 5 years Licenses 3 to 5 years Acquired concessions, patents, know-how, and other similar rights 5 years Amortization commences only when the asset is available for use. 7.1.7. Property, plant and equipment Property, plant and equipment are carried at acquisition cost less any accumulated depreciation and less any accumulated impairment loss. Acquisition cost includes any directly attributable cost of bringing the asset to working condition for its intended use. Borrowing costs that are directly attributable to the acquisition, construction and/or production of a qualifying asset are capitalized as part of the cost of the asset. Expenditure on repair and maintenance which serve only to maintain, but not increase, the value of fixed assets is charged to the income statement. However, expenditure on major repair and major maintenance, which increases the future economic benefits that will be generated by the fixed asset, is identified as a separate element of the acquisition cost. The cost of property, plant and equipment is broken down into major components. These major components, which are replaced at regular intervals and consequently have a useful life that is different from that of the fixed asset in which they are incorporated, are depreciated over their specific useful lives. In the event of replacement, the component is replaced and removed from the statement of financial position, and the new asset is depreciated up until the next major repair or maintenance. The depreciable amount is allocated on a systematic basis over the useful life of the asset, using the straight-line method. The depreciable amount is the acquisition cost, less residual value, if any. The applicable useful lives are: Property, plant and equipment Land N/A Land improvements and buildings 30 years Plants, machinery and equipment 10 to 15 years Furniture and vehicles 4 to 8 years Other tangible assets 5 years IT equipment 3 to 5 years The useful life of the machines is reviewed regularly. Each time a significant upgrade is performed, such upgrade extends the useful life of the machine. The cost of the upgrade is added to the carrying amount of the machine and the new carrying amount is depreciated prospectively over the remaining estimated useful life of the machine. 7.1.8. Leases The Group leases several properties, machinery, vehicles and IT equipment. Leases are recognized as a right-of-use asset and corresponding liability at the date of which the leased asset is available for use by the Group. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: \u2022 fixed payments (less any lease incentives), \u2022 variable lease payments that are based on an index or rate, \u2022 the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and \u2022 payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, or the Group\u2019s incremental borrowing rate, i.e. the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the remaining balance of the liability. Finance expenses are recognized immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalized. Right-of-use assets are measured at cost comprising the following: \u2022 the amount of the initial measurement of lease liability, \u2022 any lease payments made at or before the commencement date less any lease incentives received, \u2022 any initial direct costs, and \u2022 an estimate of the costs related to the dismantling and removal of the underlying asset. If it is reasonably certain that the Group will exercise a purchase option, the asset shall be depreciated on a straight-line basis over its useful life (see note 7.1.7). In all other circumstances the asset is depreciated on a straight-line basis over the shorter of the useful life of the asset or the lease term. For short-term leases (lease term of 12 months or less) or leases of low-value items (mainly IT equipment and small office furniture) to which the Group applies the recognition exemptions available in IFRS 16, lease payments are recognized on a straight-line basis as an expense over the lease term. Some property leases contain variable payment terms that are linked to the use of the property (mainly warehouses). Variable lease payments that depend on the use are recognized in profit or loss in the period in which the condition that triggers those payments occurs. 7.1.9. Impairment of non-financial assets, other than goodwill Intangible assets with indefinite useful lives and intangible assets not yet available for use are not subject to amortization, but are tested annually for impairment. Other assets which are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. 7.1.10. Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods and work in progress comprises the production costs, like raw materials, direct labor, and also the indirect production costs (production overheads based on normal operating capacity). Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Spare parts held by the Group are classified as property, plant and equipment if they are expected to be used in more than one period and if they are specific to a single machine. If they are not expected to be used in more than one period or if they can be used on several machines, they are classified as inventory. For the spare parts classified as inventory, the Group uses write-down rules based on the economic use of these spare parts. 7.1.11. Non-current assets held for sale and discontinued operations Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. A discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale, and which: \u2022 represents a separate major line of business or geographical area of operations; \u2022 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u2022 is a subsidiary acquired exclusively with a view to resale. 7.1.12. Revenue recognition Ontex Group\u2019s core activity is the sale of goods with as only performance obligation the delivery of goods. As such, the Group recognizes revenue at a point in time when control of the goods is transferred to the customer, generally on delivery of the goods. The Group sells its products to its customers directly, through distributors or agents. This can result in a different moment to recognize revenue. Following delivery to distributors, the distributor has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility when selling the goods and bears the risks of obsolescence and loss in relation to the goods. Next to the sale of goods, distinct services \u2013 mainly customer training or customer assistance services \u2013 are rendered predominantly over the period that the corresponding goods are sold to the customer. Transportation (shipping) is not be considered as a separate performance obligation as control over the goods is only transferred to the customer after the shipment. Payment terms can differ depending on the customer, based on the credit risk and prior payment behavior of the customer. In addition, the geographical location of the company and the customer have an effect on the payment terms. There are no significant financing components in the transaction prices and the considerations are paid in cash. Customer contracts include trade discounts or volume rebates, which are granted to the customer if the delivered quantities exceed a certain threshold. In these cases, the transaction price includes a variable consideration. The effect of the variable consideration on the transaction price is taken into account in revenue recognition by estimating the probability of the realization of the discount or rebate for each contract. Furthermore, the estimated variable consideration is included in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved (constraining the variable consideration). Furthermore, the Group considers all payments made to customers and whether these are related to the revenue generated from the customer. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. 7.1.13. Financial assets The Group classifies its financial assets in the following categories: financial assets at fair value and financial assets at amortized cost. The classification depends on the entity\u2019s business model for managing the financial assets and the contractual terms of the cash flows. Management determines the classification of its financial assets at initial recognition. Regular purchases and sales of financial assets are recognized on the trade date \u2013 the date on which the Group commits to purchase or sell an asset. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Financial assets (such as loans, trade and other receivables, cash and cash equivalents) are subsequently measured at amortized cost using the effective interest method, less any impairment if they are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Trade and other receivables after and within one year are recognized initially at fair value and subsequently measured at amortized cost, i.e. at the net present value of the receivable amount, using the effective interest rate method, less allowances for impairment. The Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost. For trade receivables, the Group applies the simplified approach permitted by IFRS 9 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables. The amount of the allowance is deducted from the carrying amount of the asset and is recognized in the income statement within \u2018Sales and marketing expenses\u2019. Trade receivables are no longer recognized when (1) the rights to receive cash flows from the trade receivables have expired, (2) the Group has transferred substantially all risks and rewards related to the receivables. The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of a financial asset other than in its entirety (e.g. when the Group retains an option to repurchase part of a transferred asset), the Group allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts. 7.1.14. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position. 7.1.15. Share capital Ordinary shares are classified as equity. Where any Group company purchases the company\u2019s equity share capital (treasury shares), the consideration paid is deducted from equity attributable to owners of the company until the shares are cancelled or reissued. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Financial instruments are either classified as financial liabilities or equity. The financial instrument is included in equity if, and only if, the instrument does not include a contractual obligation to deliver cash or another financial asset or to exchange financial assets or liabilities under conditions that are potentially unfavorable to the Group, and if the instrument will or may be settled in a fixed number of the Group\u2019s own equity instruments. 7.1.16. Government grants Grants from governments are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the assets to which they relate and are credited to the income statement on a straight-line basis over the expected lives of the related assets. 7.1.17. Employee benefits Short-term employee benefits Short-term employee benefits are recorded as an expense in the income statement in the period in which the services have been rendered. Any unpaid compensation is included in \u2018Employee benefit liabilities\u2019 in the statement of financial position. Post-employment benefits Group companies operate various pension schemes. Most of the schemes are unfunded. Some schemes are funded through payments to insurance companies or pension funds, determined by periodic actuarial calculations. The Group has both defined benefit and defined contribution plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise. Past-service costs are recognized immediately in income. The net interest cost relating to the defined benefit plans is recognized within financial expenses. For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. Long-term employee benefits Unfunded obligations arising from long-term benefits are provided for using the projected unit credit method. Termination benefits Early termination obligations are recognized as a liability when the Group is \u2018demonstrably committed\u2019 to terminating the employment before the normal retirement date. The Group is \u2018demonstrably committed\u2019 when, and only when, it has a detailed formal plan for the early termination without realistic possibility of withdrawal. Where such benefits are long term, they are discounted using the same rate as above for defined benefit obligations. 7.1.18. Share-based payments The Group operates an equity settled share-based compensation plan, consisting of stock options (hereafter \u2018options\u2019), restricted stock units (\u2018RSU\u2019) and performance stock units (\u2018PSU\u2019). For grants of options, RSU\u2019s and PSU\u2019s, the fair value of the employee services received is measured by reference to the fair value of the shares or options granted on the date of the grant. The Group recognizes the fair value of the services received in exchange for the grant of the options as an expense and a corresponding increase in equity on a straight-line basis over the vesting period. The fair value of the options granted is determined using option pricing models, which take into account the exercise price of the option, the share price at date of grant of the option, the risk-free interest rate, the expected volatility of the share price over the life of the option and other relevant factors. Vesting conditions included in the terms of the grant are not taken into account in estimating fair value except where those terms relate to market conditions. Non-market vesting conditions are considered by adjusting the number of shares or options included in the measurement of the cost of employee services so that ultimately the amount recognized in the income statement reflects the number of vested shares or options. At each statement of financial position date, the entity revises its estimates of the number of instruments that are expected to become exercisable and recognizes the impact of revision of original estimates, if any, in the income statement and a corresponding adjustment to equity over the remaining vesting period. When the instruments are exercised, the proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. The social security contributions payable in connection with the grant of the instruments is considered an integral part of the grant itself, and the charge will be treated as a cash-settled transaction. 7.1.19. Provisions Provisions are recognized when (1) the Group has a present legal or constructive obligation as a result of past events; (2) it is probable that an outflow of resources will be required to settle the obligation; and (3) the amount has been reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as finance cost. If the Group has an onerous contract, it will be recognized as a provision. Restructuring provisions comprise lease termination penalties and employee termination payments. Provisions are not recognized for future operating losses. A provision for restructuring is only recorded if the Group demonstrates a constructive obligation to restructure at the statement of financial position date. The constructive obligation should be demonstrated by: (a) a detailed formal plan identifying the main features of the restructuring; and (b) raising a valid expectation to those affected that it will carry out the restructuring by starting to implement the plan or by announcing its main features to those affected. 7.1.20. Income taxes Income tax expense represents the sum of the tax currently payable and deferred tax. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Group\u2019s subsidiaries operate and generate taxable income. In line with paragraph 46 of IAS 12 Income taxes, management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. This evaluation is made for tax periods open for audit by the competent authorities. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred tax is not recognized for: \u2022 the initial recognition of goodwill; and \u2022 the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is recognized on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax liabilities are generally recognized for taxable temporary differences. Deferred tax assets are generally recognized for tax losses and tax attributes to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred taxes are calculated at the level of each fiscal entity in the Group. The Group is able to offset deferred tax assets and liabilities only if the deferred tax balances relate to income taxes levied by the same taxation authority. 7.1.21. Financial liabilities Financial liabilities (including borrowings and trade and other payables) are classified as at amortized cost, except for derivative instruments (see 7.1.22 below). Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. When a financial liability measured at amortized cost is modified without this resulting in derecognition, a gain or loss is recognized in profit or loss. The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate. Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. 7.1.22. Derivative financial instruments The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate, foreign exchange rate and commodity price risks and equity price risks associated with share-based payments, including foreign exchange forward contracts, commodity hedging contracts and interest rate CAP\u2019s and SWAP\u2019s. Derivatives are accounted for in accordance with IFRS 9. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The fair values of various derivative instruments are disclosed in note 7.5 \u2018Financial Instruments and Financial Risk Management\u2019. The full fair value of a derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. If no hedge accounting is applied, the Group recognizes all gains or losses resulting from changes in fair value of derivatives in the consolidated income statement within Other operating income/expense to the extent that they relate to operating activities and within Net finance cost to the extent that they relate to the financing activities of the Group (e.g. interest rate swaps relating to the floating rate borrowings). 7.1.23. Hedge accounting The Group designates certain hedging instruments, which include derivatives in respect of foreign currency risk and commodities, as cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss and is included in the \u2018other operating income/(expense)' line item. Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the consolidated income statement as the recognized hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously recognized in other comprehensive income and accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss. 7.1.24. Operating segments The Group\u2019s activities are in one segment. There are no other significant classes of business, either singularly or in aggregate. The chief operating decision maker, the Board of Directors, reviews the operating results (defined as EBITDA) and operating plans, and make resource allocation decisions on a company-wide basis; therefore, the Group operates as one segment. 7.1.25. Statement of cash flows The cash flows of the Group are presented using the indirect method. This method reconciles the movement in cash for the reporting period by adjusting net profit of the year for any non-cash items and changes in working capital, and identifying investing and financing cash flows for the reporting period. 7.2. ALTERNATIVE PERFORMANCE MEASURES Alternative performance measures (non-GAAP) are used in the financial communication of the Group since management believes that they are widely used by certain investors, securities analysts and other interested parties as supplemental measure of performance and liquidity. The alternative performance measures may not be comparable to similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results, our performance or our liquidity under IFRS. 7.2.1. EBITDA adjustments Income and expenses classified under the heading \u201cEBITDA adjustments\u201d are those items that are considered by management not to relate to transactions, projects and adjustments to the value of assets and liabilities taking place in the ordinary course of activities of the Company. EBITDA adjustments are presented separately, due to their size or nature, so as to allow users of the consolidated financial statements of the Company to get a better understanding of the normalized performance of the Company. EBITDA adjustments relate to: \u2022 acquisition-related expenses; \u2022 changes to the measurement of contingent considerations in the context of business combinations; \u2022 changes to the Group structure, business restructuring costs, including costs related to the liquidation of subsidiaries and the closure, opening or relocations of factories; \u2022 impairment of assets and major litigations. EBITDA adjustments of the Group for the years ended December 31 are composed of the following items presented in the consolidated income statement and can be reconciled in note 7.24: \u2022 income/(expenses) related to changes to Group structure; and \u2022 income/(expenses) related to impairments and major litigations. 7.2.2. EBITDA and Adjusted EBITDA EBITDA is defined as earnings before net finance cost, income taxes, depreciations and amortizations. Adjusted EBITDA is defined as EBITDA excluding EBITDA adjustments. EBITDA and Adjusted EBITDA reconciliation of the Group for the years ended December 31 are as follows: Full Year 2022 2021 Continued Discontinued Continued Discontinued in \u20ac million Total Group Total Group Operations Operations Operations Operations Revenue 1,672.2 792.3 2,464.5 1,408.7 617.7 2,026.4 Operating profit/(loss) (69.4) (90.9) (160.3) 30.9 (31.1) (0.2) Depreciation and amortization (70.4) - (70.4) (65.7) (22.0) (87.7) EBITDA 1.0 (90.9) (89.9) 96.6 (9.1) 87.5 EBITDA adjustments 103.0 122.6 225.6 59.7 25.1 84.7 Adjusted EBITDA 104.0 31.7 135.7 156.3 15.9 172.2 Adjusted EBITDA margin 6.2% 4.0% 5.5% 11.1% 2.6% 8.5% 7.2.3. Net financial debt/LTM Adjusted EBITDA ratio (Leverage) Net financial debt is calculated by adding short-term and long-term debt and deducting cash and cash equivalents. LTM adjusted EBITDA is defined as EBITDA excluding EBITDA adjustments for the last twelve months (LTM). For the years ending December 31, the LTM adjusted EBITDA corresponds with the adjusted EBITDA of the year. Net financial debt/LTM Adjusted EBITDA ratio of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 Discontinued in \u20ac million Continued Operations Total Group Total Group Operations Non-current interest-bearing debts 891.7 16.8 908.5 885.2 Current interest-bearing debts 145.4 22.2 167.6 87.0 Cash and cash equivalents (149.1) (59.7) (208.7) (246.7) Net Financial Debt 888.1 (20.7) 867.4 725.5 LTM adjusted EBITDA 104.0 31.7 135.7 172.2 Leverage ratio 6.4 4.2 7.2.4. Free Cash Flow Free Cash flow is defined as net cash generated from operating activities (as presented in the consolidated cash flow statement, i.e. including income taxes paid) less capital expenditures (Capex, defined as purchases of property, plant and equipment and intangible assets), less repayment of lease liabilities and including cash (used in)/from disposal. Free Cash Flow of the Group for the years ended December 31 is as follows: Full Year in \u20ac million 2022 2021* Operating profit/(loss) (69.4) 30.9 Depreciation and amortization 70.4 65.7 EBITDA 1.0 96.6 EBITDA from discontinued Operations (90.9) (9.1) Non-cash items and items relating to investing and financing activities 182.8 54.0 Change in working capital Inventories (11.3) (39.2) Trade and other receivables and prepaid expenses (46.9) (1.4) Trade and other payables and accrued expenses 12.6 56.4 Employee benefit liabilities 5.8 (6.4) Cash from operating activities before taxes 53.2 150.9 Income taxes paid (24.9) (20.6) Net cash generated from operating activities 28.3 130.3 Capex (62.4) (56.5) Cash (used in)/from on disposal 4.6 1.9 Repayment of lease liabilities (25.0) (22.7) Free Cash Flow (54.4) 52.9 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations 7.2.5. Adjusted Basic Earnings and Adjusted Basic Earnings per Share Adjusted Basic Earnings (or Adjusted Profit) are defined as profit for the period plus EBITDA adjustments and tax effect on EBITDA adjustments, attributable to the owners of the parent. Adjusted Basic Earnings per share are defined as Adjusted Basic Earnings divided by the weighted average number of ordinary shares. Adjusted Basic Earnings per Share for the years ended December 31 are presented in note 7.16 \u2018Earnings per share\u2019. 7.2.6. Working Capital The components of our working capital are inventories, trade receivables and prepaid expenses and other receivables plus trade payables and accrued expenses and other payables. December 31, 2022 December 31, 2021 in \u20ac million Inventories 264.3 358.7 Trade receivables 191.8 269.8 Prepaid expenses and other receivables 36.8 69.2 Non-current receivables 0.3 3.5 Trade payables (405.3) (532.6) Accrued expenses and other payables (22.6) (39.0) Total Net Working Capital 65.4 129.6 7.2.7. Alternative Performance Measures included in the Press releases and other Regulated information Like-for-Like (LFL) revenue Like-for-like revenue is defined as revenue at constant currency excluding change in scope of consolidation or a change due to M&A. 2021 2022 LFL Forex 2022 Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group in \u20ac million Operations Operations Operations Operations Operations Operations Operations Operations Revenue 1,408.7 617.7 2,026.4 1,622.7 748.9 2,371.6 49.5 43.4 92.9 1,672.2 792.3 2,464.5 Adjusted EBITDA margin Adjusted EBITDA margin is adjusted EBITDA divided by revenue. 7.3. CAPITAL MANAGEMENT The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern in order to provide benefits for shareholders. The Group monitors capital on the basis of the net financial debt position and its leverage. The Group\u2019s net financial debt position is calculated by adding all short and long-term interest-bearing debts and by deducting the available short-term liquidity. The leverage is computed as the net financial debt divided by the LTM adjusted EBITDA (i.e. EBITDA plus EBITDA adjustments for the last twelve months (LTM)). The net financial debt and leverage of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 in \u20ac million Non-current interest-bearing debts 908.5 885.2 Current interest-bearing debts 167.6 87.0 Cash and cash equivalents (208.7) (246.7) Net Financial Debt 867.4 725.5 LTM Adjusted EBITDA 135.7 172.2 Net Financial Debt/LTM Adjusted EBITDA ratio 6.4 4.2 During 2022, the debt covenants related to the available credit facilities have been renegotiated and replaced by a liquidity covenant, which is further disclosed in note 7.4. 7.4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The amounts presented in the consolidated financial statements involve the use of estimates and assumptions about the future. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The actual amounts may differ from these estimates. The estimates and assumptions that could have an impact on the consolidated financial statements are discussed below. 7.4.1. Liquidity situation The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. The \u20ac220.0 million term loan and the \u20ac250.0 million revolving credit facility, of which \u20ac115.0 million was utilized on December 31, 2022, are subject to debt covenants. For the full year 2022, these debt covenants have been renegotiated and replaced by a liquidity covenant which the Group complied with. For 2023, the liquidity covenant to be met on March 31 is defined as cash and cash equivalents plus the non-used portion of the revolving credit facility to exceed \u20ac200.0 million. The leverage covenants to be met at June 30, 2023 and December 31, 2023 are defined as the ratio of net financial debt over the last-twelve-months adjusted EBITDA not to exceed 4.75 and 3.75 respectively. Management has prepared detailed budgets and cash flow forecasts, which reflect the strategy of the Group. While there may be limited headroom on reaching the covenants, the Company is confident that it will meet them, reassured by the business performance so far in 2023, and the progress made in the divestment of the Mexican assets. The closing is expected in the second quarter and the proceeds will be used to pay back the \u20ac220.0 million term loan. Moreover, the Group is currently in discussions with the banks to discuss the revolving credit facility extension, currently maturing mid-2024, and will address conditions that meet the financing needs of the company. 7.4.2. Income taxes The Group has tax losses and other tax incentives usable to offset future taxable profits, mainly in Belgium, France and Spain amounting to \u20ac544.5 million at December 31, 2022 (\u20ac628.0 million at December 31, 2021). The European Commission challenged Belgium\u2019s excess profit ruling (EPR) system, characterizing this system as illegal state aid. Ontex, through its Belgian subsidiary Ontex BV, had an EPR covering the years 2011-2015. Ontex has lodged an appeal against this EC decision. The General Court has handed down its judgment on February 14, 2019 in the joint case of Belgium vs Commission and Magnetrol International vs Commission. The General Court annulled the Commission\u2019s Decision for the reason that the Commission erroneously considered that the excess profit exemption system constituted an aid scheme. The European Commission has appealed the decision of the General Court to the European Court of Justice and in September 2021 the Court decided that the proceedings regarding the EPR decision must be re-opened before the EU General Court. We await the outcome. Furthermore, the European Commission opened individual investigations in September 2019 into each of the individual EPRs including that of Ontex, as it believes that each EPR grants illegal state aid, even if the EPR system does not constitute an aid \u201cscheme\u201d. The formal investigation into the Ontex EPR continues and it is unclear when a final decision can be expected. Ontex will have the right to appeal against any decision that concludes the Ontex EPR grants illegal state aid. Any such appeal will take some time to be heard. Ontex had fully taken into account the impact of the Commission\u2019s position that the EPR system is illegal state aid being successful, and the Commission concluding that the Ontex EPR grants illegal state aid in its tax position. Since the outcome of both challenges is not yet final, Ontex will not release the relevant provisions at this stage. The Group has only recognized deferred tax assets on \u20ac20.6 million of tax losses and other tax incentives out of the \u20ac544.5 million mentioned above. The measurement of these deferred tax assets depends on a number of judgmental assumptions regarding the future probable taxable profits of different Group subsidiaries in different jurisdictions. These estimates are made prudently to the extent of the best current knowledge. The Group applies significant judgement in identifying uncertainties over income tax treatments. Since the Group operates in a complex multinational environment, it assesses whether certain uncertain tax provisions should be recognized in its consolidated financial statements (based on the requirements of IFRIC 23). 7.4.3. Business combinations For business combinations, the Group must make assumptions and estimates to determine the purchase price allocation of the business being acquired. To do so, the Group must determine the acquisition-date fair value of the identifiable assets acquired and liabilities assumed. These assumptions and estimates have an impact on the asset and liability amounts recorded in the Consolidated Statement of Financial Position on the acquisition date. In addition, the estimated useful lives of the acquired property, plant and equipment, the identification of other intangible assets and the determination of the indefinite or finite useful lives of other intangible assets acquired requires significant judgments and will have an impact on the Group\u2019s profit or loss. 7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions. 7.4.5. Expected useful lives The expected useful lives of the property, plant and equipment and intangible assets must be estimated. The determination of the useful lives of the assets is based on management\u2019s judgment and it is reviewed at least at each financial year-end, pursuant to IAS 16 and IAS 38. 7.4.6. Fair value of derivatives and other financial instruments The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. All derivative financial instruments are, in accordance with IFRS 7, level 2. This means valuation methods are used for which all inputs that have a significant effect on the recorded fair value are observable in the market, either directly or indirectly. 7.4.7. Employee benefits The carrying amount of the Group\u2019s employee benefit obligations is determined on an actuarial basis using certain assumptions. One particularly sensitive assumption used for determining the net cost of the benefits granted is the discount rate. Any change to this assumption will affect the carrying amount of those obligations. The discount rate depends on the duration of the benefit, i.e. the average duration of the engagements, weighted with the present value of the costs linked to those engagements. According to IAS 19, the discount rate should correspond to the rate of high-quality corporate bonds of similar term to the benefits valued and in the same currency. 7.4.8. Revenue recognition For the accrual for volume discounts (to customers and from suppliers) some judgements are made on the impact of commercial decisions that will influence the final discount to be received or to be granted. 7.4.9. Discontinued operations and disposal group held for sale Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. As such, these operations have been classified as a disposal group held for sale and presented separately in the statement of financial position. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. On December 31, 2022, the discontinued CGUs (Assets held for Sale) are carried at their estimated fair value less cost to sell. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. 7.4.10. Operations in Russia The Group is following closely the developments in the conflict between Russia and Ukraine as this disrupts Ontex\u2019s ability to operate in these regions. Ontex\u2019s first focus is the safety of its employees, and the Group is providing the necessary support. Ontex has sales and marketing offices in Russia and Ukraine and a manufacturing plant in Noginsk, near Moscow. In 2022, the Group generated approximately \u20ac157.2 million revenue in Russia. The fixed assets held in Russia represent approximately \u20ac27.8 million consolidated fixed assets, including mainly machinery and right-of-use assets (leased manufacturing facilities). The manufacturing and commercial operations are ongoing as the Russian Ontex operation provides essential care products, but these are significantly dependent from the supply of the necessary raw materials and resources to the local manufacturing facility. From the start of the invasion of Ukraine by Russia, Ontex has defined tight conditions to its continued operation in Russia including an investment stop as well as a stop on exports from Russia and the adaptation to the evolving economic sanctions and supply disruptions. We have evolved our operating model to ensure compliance with the evolving applicable regulations on economic sanctions. This has led to the progressive autonomation of most local activities in Russia within a framework defined by the Group, allowing to remain compliant to Ontex\u2019s standards on quality, safety as well as financial controls, reporting and objectives. As the continuity of operations and the associated financial transactions remains with some uncertainties given the evolution of sanctions, the Group has decided to separate and then impair a portion of goodwill allocated to its Russian business for an amount of \u20ac84.1 million (see note 7.9.). 7.5. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 7.5.1. Overview of financial instruments The table below summarizes all financial instruments by category in accordance with IFRS 9 and discloses the fair values of each instrument and the fair value hierarchy: December 31, 2022 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 0.3 0.3 Level 2 Trade receivables 191.8 191.8 Level 2 Other receivables 36.8 36.8 Level 2 Derivative financial assets 12.1 12.1 Interest rate swap 7.7 7.7 Level 2 Forward foreign exchange contracts 4.4 4.4 Level 2 Cash and cash equivalents 149.1 149.1 Level 2 Assets classified as held for sale 661.7 661.7 Level 3 Total Financial Assets 12.1 1,039.7 1,051.8 Interest-bearing debts - non-current 891.7 815.6 Senior Notes 573.8 495.0 Level 1 Syndicated Term Loan A > 1 year 217.3 220.0 Level 2 Lease & other liabilities 100.6 100.6 Level 2 Derivative financial liabilities 15.0 15.0 Forward foreign exchange contracts 13.8 13.8 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Other payables - non-current 0.4 0.4 Level 2 Interest-bearing debts - current 145.4 145.4 Syndicated Term Loan A < 1 year 115.0 115.0 Level 2 Accrued interests - Other 10.4 10.4 Level 2 Lease & other liabilities 20.0 20.0 Level 2 Trade payables 405.3 405.3 Level 2 Other payables - current 22.6 22.6 Level 2 Liabilities related to assets classified as held for sale 249.6 249.6 Level 3 Total Financial Liabilities 15.0 1,714.9 1,653.8 December 31, 2021 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 3.5 3.5 Level 2 Trade receivables 269.8 269.8 Level 2 Other receivables 69.2 69.2 Level 2 Derivative financial assets 5.3 5.3 Forward foreign exchange contracts 4.1 4.1 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Cash and cash equivalents 246.7 246.7 Level 2 Total Financial Assets 5.3 589.3 594.6 Interest-bearing debts - non-current 885.2 870.9 Senior Notes 572.1 554.2 Level 1 Syndicated Term Loan A > 1 year 216.3 220.0 Level 2 Lease & other liabilities 96.7 96.7 Level 2 Derivative financial liabilities 4.1 4.1 Interest rate swap 1.8 1.8 Level 2 Forward foreign exchange contracts 2.3 2.3 Level 2 Other payables - non-current 0.2 0.2 Level 2 Interest-bearing debts - current 87.0 87.0 Accrued interests - Other 10.4 10.4 Level 2 Total return swap 31.2 31.2 Level 2 Lease & other liabilities 45.4 45.4 Level 2 Trade payables 532.6 532.6 Level 2 Other payables - current 39.0 39.0 Level 2 Total Financial Liabilities 4.1 1,544.0 1,533.8 In the context of the Group\u2019s financial risk management, the Group uses derivative instruments to cover specific risks, such as foreign currency exposure, interest rate exposure and commodity price exposure. The following table presents an overview of the derivative instruments outstanding at reporting date: Fair value Nominal amounts in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative financial assets 12.1 5.3 325.0 165.5 Interest rate swap 7.7 0.0 150.0 0.0 Cross-Currency Interest rate swap 0.0 0.0 0.0 4.0 Forward foreign exchange contracts 4.4 4.1 175.0 145.2 Commodity hedging contracts 0.0 1.2 0.0 16.3 Derivative financial liabilities 15.0 4.1 375.8 283.5 Interest rate swap 0.0 1.8 0.0 150.0 Forward foreign exchange contracts 13.8 2.3 368.8 133.5 Commodity hedging contracts 1.2 0.0 7.0 0.0 The derivative instruments presented in the tables above are all designated in a cash flow hedge relationship (see below in notes 7.5.3 to 7.5.5). The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.6 The fair value of a derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is exceeding 12 months and, as a current asset or liability, if the maturity of the hedged item is less than 12 months. The fair value of the derivatives is based on level 2 inputs as defined under IFRS 7.27, meaning inputs that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The above table provides an analysis of financial instruments grouped into Levels 1 to 3 based on the degree to which the fair value (recognized on the statement of financial position or disclosed in the notes) is observable: \u2022 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. \u2022 Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). \u2022 Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair values of financial assets and financial liabilities are based on mathematical models that use market observable data and are determined as follows: \u2022 The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices (includes listed redeemable notes). \u2022 The fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates. \u2022 The fair values of other financial assets and financial liabilities (excluding those described above) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. \u2022 Level 3 liabilities: the amount has been determined based on contractual agreements. The Group has derivative financial instruments which are subject to offsetting, enforceable master netting arrangements and similar agreements. No offsetting needed to be done per December 31, 2022 (nor 2021). The counterparties of the outstanding derivative instruments have an A-credit rating. 7.5.2. Financial risk factors The Group's activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and commodity price risk), credit risk and liquidity risk. There have been no changes in the risk management department since last year-end or in any risk management policies. 7.5.3. Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the British pound (GBP), the Polish zloty (PLN), the Australian dollar (AUD) and Russian ruble (RUB) in relation to sales, and the US dollar (USD) and the Czech koruna (CZK) in relation to procurement. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities. The Group also has exposures to the Russian ruble (RUB), Czech koruna (CZK) and Australian dollar (AUD) due to their net investments in foreign operations. For the year ended December 31, 2022, only continuing operations are enclosed. The carrying amounts of the Group's main foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows: Assets Liabilities in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 EUR 1,879.9 1,775.9 2,765.6 2,566.0 USD 132.7 165.9 154.3 212.5 PLN 85.7 100.9 49.7 61.5 GBP 67.0 98.3 42.6 53.6 RUB 30.9 27.1 4.8 4.4 CZK 27.0 28.4 20.9 18.6 AUD 25.4 38.0 17.2 17.4 BRL 0.0 48.7 0.0 43.8 MXN 0.0 51.2 14.0 47.0 DZD 0.0 21.6 0.0 0.3 The Group monitors its foreign exchange exposure closely and will enter into hedging transactions if deemed appropriate to minimize exposure throughout the Group to foreign exchange fluctuations. All hedging decisions are subject to approval of the Board of Directors. The strategy regarding FX hedges was maintained. To manage their foreign exchange risk arising from future commercial transactions, recognized assets and liabilities, the Group uses forward exchange contracts. Foreign exchange risk arises when future commercial transactions, recognized assets and liabilities are denominated in a currency that is not the entity\u2019s functional currency. The Group treasury is responsible for optimizing the net position in each foreign currency when possible and appropriate. The Group applies hedge accounting for the hedge related transactions, the impact of the revaluation is recognized in other comprehensive income. The Group has entered into foreign exchange forward contracts in 2022 maturing at the latest in March 2024 in order to limit volatility in the business resulting from exposures to sales in British pound, Polish zloty, Australian dollar as well as purchases in US dollar and Czech crown during 2023. Based on the hedge strategy, the foreign exchange forward contracts hedge the following forecasted exposures until December 31, 2023: for British pound (GBP) 76.0 million, for Polish zloty (PLN) 310.2 million, for Australian dollar (AUD) 23.1 million, for Czech crown (CZK) 870.2 million, for US dollar (USD) 73.1 million versus EUR and US dollar (USD) 18.2 million versus Czech crown (CZK). The terms of the foreign currency forward contracts have been negotiated to match the terms of the highly probable forecast transactions. The Group applies hedge accounting to the foreign currency forward contracts. The changes in the fair value of these hedging instruments, designated as effective instruments in a cash flow hedge, are recognized in OCI until the moment the transaction occurs. At the moment the transaction leads to the recognition of a trade receivable or a trade payable, this cash flow hedge reserve including the changes in fair value of the hedging instrument is included in P&L where it adjusts revenue/costs or, if the transaction leads to the recognition of a non-financial asset or non-financial liability, as an adjustment of the carrying amount of the asset and liability. Further changes in the hedging instrument are recognized in P&L together with the changes in the trade receivables or payables. For the year ended December 31, 2022, an unrealized loss of \u20ac14.1 million (mainly Mexican peso versus EUR for 11.1 million and US dollar versus EUR for 2.4 million) has been recognized in other comprehensive income, offset by an unrealized gain of \u20ac3.8 million (British pound mainly). As of December 31, 2022, the fair value of the derivative financial asset for the foreign exchange contracts amounted to \u20ac4.4 million (2021: \u20ac4.1 million) and of the derivative financial liability amounted to \u20ac13.8 million (2021: \u20ac2.3 million). An amount of \u20ac0.4 million was reclassified to P&L (loss) during 2022. The following table sets forth the impact on pre-tax profit and equity for the year of a 10% weakening/strengthening of the Euro against the reported currency with all other variables held constant. The impact is mainly as a result of foreign exchange gains/losses on translation of foreign currency denominated trade receivables and payables and related derivative positions as at the respective statement of financial position dates. 10% weakening of the EUR 10% strengthening of the EUR 2022 2021* 2022 2021* in \u20ac million Impact on P&L Impact on Equity Impact on P&L Impact on equity AUD (0.2) (1.4) (0.2) 0.2 1.2 0.1 GBP (0.9) (8.5) (0.9) 0.8 7.0 0.7 PLN (0.8) (6.5) (0.8) 0.7 5.3 0.6 USD (1.9) 4.5 (1.3) 1.6 (3.5) 1.1 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations 7.5.4. Interest rate risk The Group\u2019s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable rates. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. These risks are managed centrally by Group treasury taking into account the expectations of the Group with respect to the evolutions of the market rates. The Group has used interest rate swaps to manage these risks. Considering that the floating rate borrowings on the Syndicated Term Loan A (EURIBOR + margin) are partially hedged through interest rate swaps, the interest expense recognized in the consolidated income statement is to a limited extent subject to interest rate volatility, as apart from the syndicated term loan A, there has also been \u20ac115.0m withdrawn on Floating Rate Syndicated Term Loan B, carrying an interest of EURIBOR 1 month + margin of 3.60%. Sensitivity of the fair value of derivative financial instruments related to loans: at December 31,2022, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been respectively \u20ac0.2 million higher/lower. At December 31,2021, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been negligible. Floating Rate Syndicated Term Loan A of \u20ac220.0 million due 2024 is carrying an interest of EURIBOR 3 month + margin of 3.90%. The notional principal amounts of the outstanding fixed payer interest rate swap contract at December 31, 2022 is \u20ac150.0 million as per below table: Duration Fixed interest rate % Amount in \u20ac million 3 Years 0.5950% 150.0 Total 150.0 The OCI net impact for 2022 was a \u20ac9.5 million gain. \u20ac0.4 million was reclassified to P&L (loss) during 2022. 7.5.5. Price risk (commodity) The Group has some exposure to the price of oil because certain of the raw materials used in production are manufactured from oil derivatives. These include glues, polyethylene, propylene and polypropylene. In relation to our fluff exposure, the Group has arrangements with certain of their fluff suppliers that reduce our exposure to volatility in fluff prices. The Group also decided to continue to hedge a portion of the propylene, polypropylene and polyethylene exposure in 2022. Forward contracts to cover the commodity price risk are being reviewed and potentially executed monthly. Forward contracts are initiated over a future period of 12 months covering monthly expected exposure. The total notional amount hedged in 2022 was \u20ac36.6 million covering propylene (\u20ac15.7 million), polypropylene (\u20ac14.5 million) and LDPE (\u20ac6.4 million). The average hedged rate for 2022 was \u20ac1,154/Ton for propylene, \u20ac2,085/Ton for polypropylene and \u20ac2,232/Ton for LDPE. The OCI net impact for 2022 was a \u20ac2.3 million loss. \u20ac2.3 million was reclassified to P&L (gain) during 2022. 7.5.6. Equity price risk Following the issuance of options, RSU\u2019s and PSU\u2019s as share-based payment arrangements under the different LTIP programs (refer to note 7.28 for details of these programs), the Group is exposed to variations in the Group share price. The Board of Directors of the Group has decided on June 1, 2015 to implement a full hedging program through a total return swap. The purpose of this financial instrument is to effectively hedge the risk that a price increase of the Ontex shares would negatively impact future cash flows related to the share-based payments. The Group entered into a Total Return Swap (\u2018TRS\u2019) agreement with a financial institution to manage its exposure to price volatility related to the shares subject to the stock option, RSU and PSU plans as disclosed in note 7.28. Under the total return swap agreement, the Company will pay interest to the financial institution. At the settlement of the TRS, the Group will receive the underlying shares which will be granted to the beneficiaries of the stock options, RSU\u2019s or PSU\u2019s upon exercise. As such, the Group hedges the risk that the share price would increase when shares have to be issued upon exercise by the beneficiaries of their Options/RSU\u2019s/PSU\u2019s. The shares bought in this context are recognized in deduction of Group equity at the strike price at the moment of entering into the TRS. As the Group takes physical delivery of the shares upon settlement of the TRS (no net settlement), the TRS does not meet the scope of financial instruments in accordance with IAS 32 / IFRS 9. As such, the TRS should not be remeasured at fair value at each closing date. During 2022, the existing program was not renewed and all shares are therefore now owned by the Group. 7.5.7. Credit risk Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to corporate customers, including outstanding receivables and committed transactions. The Group assesses the credit quality of the customer, taking into account its financial position, past experience and other factors based on which individual risk limits are set in accordance with the limits set by business managers. Historical default rates have been below 1% for 2022 and 2021. Trade receivables are spread over different countries and counterparties and there is no large concentration with one or a few counterparties. We refer to note 7.13 for the aging of the receivables and the doubtful receivables. All financial instruments are held at banks and financial institutions with a credit rating of at least A. The maximum exposure to credit risk at the reporting date is the carrying amount as presented in the table above in the note 7.5.1. 7.5.8. Liquidity risk Group treasury monitors rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities (note 7.17 Interest-bearing debts) at all times so that the Group does not breach borrowing limits or covenants (where applicable) on its borrowing facilities. The table below analyzes the Group\u2019s financial liabilities (including interest payments) into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Less than Between 1 Between 2 Over 5 years in \u20ac million 1 year and 2 years and 5 years At December 31, 2022 Interest-bearing debts (34.0) (361.6) (611.0) - Lease liabilities (24.0) (20.3) (38.7) (60.2) Trade payables (405.3) - - - Total non-derivative financial liabilities (463.3) (381.9) (649.7) (60.2) Interest rate swaps (0.9) (0.9) - - Forward foreign exchange contracts (531.8) (12.0) - - Total derivative financial liabilities (532.7) (12.9) - - At December 31, 2021 Interest-bearing debts (28.5) (31.2) (857.0) (0.0) Lease liabilities (26.0) (22.1) (42.2) (40.4) Trade payables (532.6) - - - Total non-derivative financial liabilities (587.2) (53.3) (899.1) (40.4) Interest rate swaps (0.9) (0.9) (0.9) - Forward foreign exchange contracts (267.4) (11.3) - - Total derivative financial liabilities (268.3) (12.2) (0.9) - .7.6. OPERATING SEGMENTS According to IFRS 8, reportable operating segments are identified based on the \u201cmanagement approach\u201d. This approach stipulates external segment reporting based on the Group\u2019s internal organizational and management structure and on internal financial reporting to the chief operating decision maker. The Group\u2019s activities are in one segment, \u201cHygienic Disposable Products\u201d. There are no other significant classes of business, either singularly or in aggregate. The chief operating decision maker, the Board of Directors, reviews the operating results and operating plans, and make resource allocation decisions on a company-wide basis. Therefore, the Group operates as one segment. Enterprise-wide disclosures about product sales, geographic areas and revenue from major customers are presented below: 7.6.1. Information by product group The key product categories are: \u2022 Baby Care products, principally baby diapers, baby pants and, to a lesser extent, wet wipes; \u2022 Adult Care products, such as adult pants, adult diapers, incontinence towels and bed protection; \u2022 Feminine Care products, such as sanitary towels, panty liners and tampons. Full Year in \u20ac million 2022 2021* Baby Care 765.0 628.8 Adult Care 653.6 571.3 Feminine Care 222.0 180.8 Other 31.6 27.8 Total revenue 1,672.2 1,408.7 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac617.7 million 7.6.2. Information by country The sales in the country of domicile of Ontex Group NV (Belgium) represent less than 4% of Ontex Group NV Revenue. Sales to countries in our top four markets are presented in the table below. The sales in all other individual countries represent less than 10% of the Group\u2019s revenue. Full Year in \u20ac million 2022 2021* United Kingdom 253.8 221.3 USA 205.1 151.4 Italy 180.4 179.9 France 182.7 167.2 Other countries 850.2 689.0 Total revenue 1,672.2 1,408.7 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac617.7 million The following table presents an overview of the non-current assets (property, plant and equipment (PP&E), right to use assets and intangible assets) located in the main countries. The non-current assets in all other individual countries represent less than 10% of the Group\u2019s total non-current assets (excluding financial instruments, deferred tax assets and goodwill). Goodwill is not included in the below table as this is not monitored on a country-basis, but at the divisional level. in \u20ac million December 31, 2022 December 31, 2021 Belgium 133.5 139.0 Poland 68.5 42.9 Mexico 52.4 145.3 Czech Republic 50.0 51.1 Germany 49.7 83.7 Brazil N/A 45.9 Other countries 208.8 213.5 Total 562.9 721.3 7.6.3. Revenue from major customers The Group does not have a single significant customer. In 2022 the largest customer represents 7.8% (2021:8.1%) of the revenue. The 10 largest customers represent 37.1% of 2022 revenue (2021: 37.5%). The figures for 2021 have been adjusted for the reclassification of the Emerging Markets as discontinued operations. 7.7. LIST OF CONSOLIDATED COMPANIES Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number Haouch Sbaat Nord, Zone Industrielle de Rouiba, Voie H, Can Hygi\u00e8ne SPA Algeria 100.0% 100.0% 04/B/0965101 lot 83B, 16012 Rouiba, Alger, Algeria Suite 10, 27 Mayneview Street, Milton, QLD 4064, Ontex Australia Pty Ltd Australia 100.0% 100.0% ABN 59 130 076 283 Australia Ontex Manufacturing Pty Ltd Australia 100.0% 100.0% Wonderland Drive 5, Eastern Creek, NSW, 2766, Australia ABN 16 145 822 528 Eutima BV Belgium 100.0% 100.0% Korte Moeie 53, 9900 Eeklo, Belgium 0415.412.891 1)Ontema BV Belgium 0.0% 100.0% Genthof 12, 9255 Buggenhout, Belgium 0453.081.852 Ontex BV Belgium 100.0% 100.0% Genthof 5, 9255 Buggenhout, Belgium 0419.457.296 Rua Contorno Oeste 1/16 Quadra 01, Lote 01/16, Modulo Active Industria De Cosm\u00e9ticos S.A. Brazil 100.0% 100.0% CNPJ 22.010816/0001-39 2 Senador Canedo, Goiania, Brazil Rua Iza Costa 1.104 Quadra: Area Lote Modulo 2, Falcon Distribuidora Armazenamento E Transporte S.A. Brazil 100.0% 100.0% CNPJ 23.191.831/0001-93 Fazenda Retio, Goiania, Brazil Calle la Concepcion 81, D 603 P 06, Providencia, Chicolastic Chile, S.A. Chile 100.0% 100.0% Santiag\u00e0, Region Metropolitan,8320000 Santiago de 96886530-7 Chile, Chile Hangji industrial park, Hanjiang Dictrict, N\u00b01 Zhaizhuang Ontex Hygienic Disposables (Yangzhou) Co.TD China 100.0% 100.0% 321000400010102 Road, 225111 Yangzhou, China 4F, Building G, No. 69, Hongqiao Green Valley Ontex Hygienic Disposables (Shanghai) LTD China 100.0% 100.0% 91310000MA1GCW6L6Y Community, Yuhong Road, Minhang District, Shanghai 100 norte del Centro Comercial Tres Rios a mano 1)Valor Brands de Centroam\u00e9rcia, S.A. de C.V. Costa Rica 0.0% 100.0% izquierda-Apartamento Tinoco #02, City Cartago, 10106 3-101-645685 San Jos\u00e9, Costa Rica Czech Ontex CZ S.r.o. 100.0% 100.0% Vesecko 491, 51101 Turnov, Czech Republic 44564422 Republic Tracon Tower Building Addis Ababa, Subcity Arada, Ontex Hygienic Disposables PLC Ethiopia 100.0% 100.0% EIA-PC/01/005318/08 Werada 02, Kebele 01, House n\u00b0 : 30/97, Ethiopia 30 Rue Hubble Parc Europ\u00e9en de la Haute Borne, 59262 Hygi\u00e8ne Medica SAS France 100.0% 100.0% 401 439 872 Sainghin-en-M\u00e9lantois, France 586 Boulevard Albert Camus, 69400 Villefranche-sur-Ontex France SAS France 100.0% 100.0% 338 081 102 Sa\u00f4ne, France Ontex Sant\u00e9 France SAS France 100.0% 100.0% Quai du rivage 62119 Dourges, France 502 601 297 Moltex Baby-Hygiene GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 5260 Ontex Engineering GmbH & Co .KG Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRA 21335 Ontex Healthcare Deutschland GmbH Germany 100.0% 100.0% Hansaring 6, Lotte 49504, Germany HRB 9669 Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number Ontex Hygi\u00ebnartikel Deutschland GmbH Germany 100.0% 100.0% Fabrikstrasse 30, 02692 Grosspostwitz, Germany HRB 3865 Ontex Inko Deutschland GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 20630 Ontex Care GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 21024 Ontex Mayen GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 11699 Ontex Vertrieb GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 4983 WS Windel-Shop GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 2793 Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Ontex Manufacturing Italy S.r.l. Italy 100.0% 100.0% 02456370697 Italy Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Serenity Holdco S.r.l. Italy 100.0% 100.0% CH-178769 Italy Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Serenity Spa Italy 100.0% 100.0% CH-99632 Italy Ibsen N40 4to piso, col. Polanco Delegacion Miguel Grupe P.I Mabe, S.A de C.V Mexico 100.0% 100.0% GPI950824N64 Hidalgo CP 11560 Mexico Calle Norte 12, Ciudad Industrial 105,22505 Tijuana, Productos Internacionales Mabe, S.A de C.V Mexico 100.0% 100.0% PIM810710R32 Mexico 2)Ontex Mexico Operations S.A. de C.V. Mexico 100.0% 0.0% Calle 12 Norte No. 105, Ciudad Industrial, Tijuana, Mexico OMO220624KA3 1)Quartier Al Hank Boulevard De La Corniche, 6i\u00e8me \u00e9tage, Ontex Hygi\u00e8ne Sarlau Morocco 0.0% 100.0% 240709 immeuble Yacht A/B Anfa - Casablanca, Morocco Office No 705, 7th Floor, Park Avenue, Main Sharh-e-Ontex Pakistan ltd Pakistan 100.0% 100.0% 0076658 Faisal, Karachi Sindh 7400, Pakistan Ontex Polska sp. z.o.o. Poland 100.0% 100.0% ul. Przedsiebiorcrow 6, 97-500 Radomsko, Poland 0000010044 Bucharest, 46 Grigore Cobalcescu Street, 2nd floor, 1st Ontex Romania Srl Romania 100.0% 100.0% R 7682053 District, Romania Ontex RU LLC Russia 100.0% 100.0% Zemlyanoy Val Street 9, 10564 Moscow, Russia 1055008702649 Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex ES Holdco S.L. Spain 100.0% 100.0% B85082832 sector C, 40140 Valverde del Majano, Segovia, Spain Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex ID SAU Spain 100.0% 100.0% NIFA-60617875 sector C, 40140 Valverde del Majano, Segovia, Spain Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex Peninsular SAU Spain 100.0% 100.0% A40103855 sector C, 40140 Valverde del Majano, Segovia, Spain Valor Brands Europe, S.L Spain 100.0% 100.0% Torviscal 12, 45007 Toledo, Spain B2837-1540 Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex Hygienic Spain, S.L. Spain 100.0% 100.0% M635-328 sector C, 40140 Valverde del Majano, Segovia, Spain Tekstilkent Cad. Koza Plaza B Blok Kat:31 No:116-117 Ontex T\u00fcketim. Urn. San. ve Tic. AS Turkey 100.0% 100.0% 137334 Esenler, Istanbul Building 7(C), 13 M. Pymonenko Street, 04050 Kyiv, Ontex Ukraine LLC Ukraine 100.0% 100.0% 37728333 Ukraine, Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number United Kettering Parkway, Kettering Venture Park, Kettering, Ontex Health Care UK Ltd 100.0% 100.0% 02274216 Kingdom Northants, NN156XR, United Kingdom Unit 5 (1st Floor), Grovelands Business Centre, Boundary United Ontex Retail UK Ltd 100.0% 100.0% Way, Hemel Hempstead, Hertfordshire, HP2 7TE, United 1613466 Kingdom Kingdom 1201 North Market Street, 19801 Wilmington, New Castle Ontex US Holdco, LLC USA 100.0% 100.0% 35-2548297 county, Delaware, United States of America 960 North Point Parkway, Suite 100, Alpharetta, GA Valor Brands, LLC USA 100.0% 100.0% 06-1661367 30005, USA Ontex Operations USA, LCC USA 100.0% 100.0% 1900 Barnes Street, Reidsville, NC 27320 85-0811594 1) Ontema BV, Valor Brands de centroam\u00e9rica, S.A de C.V. and Ontex Hygi\u00e8ne Sarlau have been liquidated in the course of 2022. 2) Ontex Mexico Operations S.A. de C.V. was founded in the course of 2022. The voting rights equal the percentage of interest held. The most significant Group subsidiaries are Ontex BV, Ontex Mayen GmbH, Ontex Hygi\u00ebnartikel Deutschland GmbH, Ontex Sant\u00e9 France SAS, Ontex CZ Sro, Serenity Spa, Ontex Manufacturing Italy S.r.l. and Valor Brands LLC. For the financial year ending December 31, 2022 the following companies make use of the exemptions in accordance with the German regulations of \u00a7 264 III and \u00a7 264b HGB \u2022 Ontex Vertrieb GmbH, Mayen; \u2022 Ontex Mayen GmbH, Mayen; \u2022 Moltex Baby-Hygiene GmbH, Mayen; \u2022 WS Windel-Shop, Mayen; \u2022 Ontex Healthcare Deutschland GmbH, Lotte; \u2022 Ontex Hygieneartikel Deutschland GmbH, Gro\u00dfpostwitz; and \u2022 Ontex Engineering GmbH & Co. KG, Mayen. 7.8. DISPOSAL GROUP HELD FOR SALE AND DISCONTINUED OPERATIONS Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. These operations, which are expected to be sold within 12 months, have been classified as a disposal group held for sale and presented separately in the statement of financial position. As a result, discontinued operations are shown as one line item in the consolidated financial statements as detailed below. The discontinued statement of financial position items are presented at lower of the fair value less cost-to-sell and the carrying amount, in accordance with IFRS 5. stThe associated assets and liabilities are consequently presented as held for sale as from January 1, 2022. The related financial performance is thereby reported as discontinued operations in the Income statement. The assets held for sale in the table below amount to \u20ac653.9 million and deviate from the amount in the consolidated statement of financial position as the Group also stholds a building in Germany as held for sale at December 31, 2022. Ontex entered into a binding agreement in July 2022 to sell its Mexican and related export activities to Softys S.A., marking a milestone in the transformation of Ontex. Net cash proceeds are estimated at approximately \u20ac250.0 million. The closing is foreseen early Q2 2023, subject to the customary conditions, including the applicable merger clearance approvals. Proceeds from the transaction will be exclusively applied to reduce debt. Ontex is making progress in the divestment of its remaining Emerging Markets businesses, as discussions with potential acquirers continue. Disposal group classified as held for sale Upon reclassification as held for sale, total impairment losses on goodwill of \u20ac60.0 million have been recognized to present the net assets at the lower of the carrying amount and the fair value less costs of disposal. At December 31, 2022, additional impairment losses on goodwill of \u20ac48.9 million have been recognized based on a comparison of the expected proceeds of disposal less costs to sell versus the carrying amount of the related net assets. \u20ac33.2 million of the impairment is related to the impact of the application of Hyperinflation on the Turkish carrying net assets, which increased with \u20ac29.0 million. The major classes of assets and liabilities comprising the operations classified as held for sale are as follows: December 31, 2022 in \u20ac million Non-current Assets Goodwill 83.8 Intangible assets 17.1 Property, plant and equipment 183.8 Right-of-use assets 16.3 Deferred tax assets 0.4 Other non-current assets 0.5 301.9 Current Assets Inventories 116.1 Trade receivables 115.4 Prepaid expenses and other receivables 53.8 Current tax assets 6.5 Derivative financial assets 0.5 Cash and cash equivalents 59.7 352.0 Assets classified as held for sale 653.9 December 31, 2022 in \u20ac million Non-current liabilities Employee benefit liabilities 3.4 Interest-bearing debts 16.8 Deferred tax liabilities 12.9 33.1 Current liabilities Interest-bearing debts 22.2 Derivative financial liabilities 0.4 Trade payables 154.1 Accrued expenses and other payables 19.6 Employee benefit liabilities 12.5 Current tax liabilities 4.8 Provisions 2.9 216.5 Liabilities related to assets classified as held for sale 249.6 The cumulative foreign exchange losses recognized in other comprehensive income in relation to the discontinued operations as at December 31, 2022 were \u20ac302.4 million. Financial performance The results of the discontinued operations, which have been included in the consolidated income statement, were as follows: Full Year in \u20ac million 2022 2021 Revenue 792.3 617.7 Operating expenses (excl. depreciations and amortizations) (760.6) (601.7) Adjusted EBITDA 31.7 15.9 Income and expenses related to impairment losses and restructuring (122.6) (25.1) EBITDA (90.9) (9.1) Depreciation and amortization - (22.0) Financial result (19.9) (1.1) Profit/(loss) before income tax (110.7) (32.3) Income tax expense (10.9) (10.2) Profit/(loss) for the period from discontinued operations (121.6) (42.4) Full Year Earnings per share (\u20ac) 2022 2021 For discontinuing operations Basic earnings per share (1.50) (0.52) Diluted earnings per share (1.50) (0.52) Cash flows The cash flow information presented for the period ended December 31, 2022 and 2021: Full Year in \u20ac million 2022 2021 Net cash generated from / (used in) operating activities 14.4 81.7 Net cash generated from / (used in) investing activities (13.1) (31.4) Net cash generated from / (used in) financing activities (4.2) (40.6) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (2.9) 9.8 Effects of exchange rate changes on cash and cash equivalents 1.5 (7.8) Hyperinflation In 2022, the Turkish economy faced further rapid inflation resulting in the three-year cumulative inflation of Turkey to exceed 100%, thereby triggering the requirement to transition to hyperinflation accounting as prescribed by IAS 29 Financial Reporting in Hyperinflationary Economies as of 1 January 2022. The main principle in IAS 29 is that the financial statements of an entity that reports in the currency of a hyperinflationary economy must be stated in terms of the measuring unit current at the end of the reporting period. Therefore, the non-monetary assets and liabilities stated at historical cost, the equity and the income statement of subsidiaries operating in hyperinflationary economies are restated for changes in the general purchasing power of the local currency applying a general price index. Monetary items that are already stated at the measuring unit at the end of the reporting period are not restated. These re-measured accounts are used for conversion into euro at the period closing exchange rate. Consequently, the Ontex Group has applied hyperinflation accounting for its Turkish subsidiaries in these financial statements applying the IAS 29 rules as follows: \u2022 Hyperinflation accounting was applied as of 1 January 2022; \u2022 Non-monetary assets and liabilities stated at historical cost (e.g. property plant and equipment, intangible assets, goodwill, etc.) and equity of Turkey were restated using official Consumer Price index published by the Turkish Statistic Institute TUIK. The hyperinflation impacts resulting from changes in the general purchasing power until 31 December 2021 were reported in retained earnings and the impacts of changes in the general purchasing power from 1 January 2022 are reported through the income statement on a dedicated account for hyperinflation monetary adjustments in the finance line. This impact in 2022 amounted to \u20ac9.7m. The CPI index at 31 December 2022 amounted to 1,128.45 which means an increase of 64% versus 31 December 2021; \u2022 The income statement is adjusted at the end of each reporting period using the change in the consumer price index and is converted at the closing exchange rate of each period (rather than the year to date average rate for non-hyperinflationary economies). This impact in 2022 amounted to \u20ac0.4m; \u2022 The prior year income statement and statement of financial position were not restated. In 2022, the Turkish operations represented 12.2% of the company\u2019s revenue from discontinued operations. The hyperinflation impact on the net assets held for sale presented above of \u20ac404.4 million, amounts to \u20ac29.0 million. As indicated above, this subsequently has lead to an impairment on goodwill of the Turkish business for \u20ac33.2 million. .7.9. GOODWILL AND INTANGIBLE ASSETS IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2022 Opening net book amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 Hyperinflation opening net book amount 9.5 0.0 0.0 0.0 0.0 9.5 Restated opening net book amount 1,049.4 15.4 1.7 19.2 9.5 1,095.2 Additions 0.0 0.0 0.2 6.7 4.5 11.3 Transfers 0.0 0.0 3.7 0.9 (4.5) 0.1 Reclassified as held for sale (170.6) (15.4) 0.0 0.0 0.2 (185.8) Amortization expense 0.0 0.0 (1.3) (7.9) 0.0 (9.2) Impairment (84.1) 0.0 (0.2) 0.0 0.0 (84.3) Exchange differences 3.2 (0.0) 0.0 (0.0) 0.0 3.2 Closing carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 At December 31, 2022 Cost 862.6 0.0 9.4 67.5 23.7 963.4 Accumulated amortization and impairment (64.7) (0.0) (5.3) (48.6) (14.1) (132.7) Carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2021 Opening net book amount 1,106.7 23.2 3.7 20.8 5.8 1,160.2 Additions 0.0 0.0 0.1 7.0 5.2 12.3 Transfers 0.0 0.0 1.1 0.1 (0.9) 0.3 Disposals 0.0 0.0 (0.1) (0.0) 0.0 (0.1) Amortization expense 0.0 (1.6) (1.0) (8.2) (0.0) (10.8) Impairment (66.1) (7.1) (2.1) (0.5) (0.5) (76.3) Exchange differences (0.7) 0.8 0.0 (0.0) 0.0 0.1 Closing carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 At December 31, 2021 Cost 1,106.8 31.2 5.5 62.2 23.7 1,229.3 Accumulated amortization and impairment (66.9) (15.8) (3.8) (43.0) (14.1) (143.6) Carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 The decrease compared to prior year is mostly due to the reclassification to assets held for sale. Brands in 2021 represent the capitalization of some of the brands acquired through the acquisitions of Grupo Mabe and Ontex Brazil. The impairment recognized in 2021 resulted mainly from the goodwill impairment test carried out on the Brazilian business. Capitalized IT implementation costs represent internally developed and externally purchased software for own use. The impairment recognized in 2022 results mainly from the goodwill impairment test carried out on the Russian business, see below for more information. The amortization expense is included in the captions of the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of sales 0.1 0.0 General and administrative expenses 9.1 8.5 Total amortization expense 9.2 8.6 * The amortization expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac2.2 million. The Group incurred \u20ac11.8 million of research and development expenses in 2022 (2021: \u20ac8.7 million) that has been recorded under the caption \u2018General and administrative expenses\u2019. No intangible assets have been pledged in the context of financial liabilities. 7.9.1. Goodwill History At the end of 2010, Ontex was acquired from Candover by Goldman Sachs Capital Partners and TPG Capital, both holding 50% of the shares of the new Ontex top-holding company. At the time of the acquisition, the net assets of Ontex were negative which resulted in the generation of goodwill of \u20ac841.5 million. In 2013, Ontex acquired Serenity, a company operating in the adult incontinence market in Italy. This acquisition resulted tin the recognition of a goodwill of \u20ac18.6 million. In February 2016, Ontex acquired Grupo Mabe, a leading Mexican manufacturer of disposable personal hygiene products. This major acquisition resulted in the recognition of a goodwill for \u20ac236.1 million, which was denominated in Mexican peso and US dollars. In March 2017, Ontex has completed the acquisition of the personal hygiene business of Hypermarcas (renamed to \u201cOntex Brazil\u201d). This resulted in a goodwill of \u20ac128.3 million, which was denominated in Brazilian real. Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. Following this strategy, \u20ac170.6 million of goodwill was reclassified to assets held for sale. Goodwill impairment Considering the renewed strategy of the Group to refocus its activities on Europe and North America, the Group has reviewed the cash-generating units and has determined the following cash-generating units for the purpose of the goodwill impairment testing: \u2022 Europe \u2022 Russia \u2022 North America Annual impairment reviews are performed during the fourth quarter of each year for all CGUs, except if there would be factors indicating a risk for impairment loss. These reviews compare the carrying value of each CGU with the recoverable amount of the CGU\u2019s assets calculated using a discounted cash flow model. If the recoverable amount is less than the carrying value of the CGU, an impairment loss is recognized immediately in the income statement. Due to the current economic performance of the Group and the modified strategy, the Group has performed an impairment test on a more frequent basis during 2022. The test at half year 2022 revealed that an impairment loss should be recognized on the CGU \u201cRussia\u201d. The test at year-end did not lead to any additional impairment. The judgments and estimates considered in the context of the impairment tests are disclosed in note 7.4.4. Goodwill allocated to the CGUs as at December 31 was as follows: in \u20ac million 2022 2021 Europe 743.1 818.0 North & Central America N/A 205.1 North America 54.9 N/A Middle East, Africa & Asia N/A 16.7 Goodwill allocated to the CGU's 797.9 1,039.9 As mentioned above, the test carried out at half year 2022 resulted in the recognition of an impairment loss of \u20ac84.1 million on the CGU \u201cRussia\u201d reflecting the revised strategy and forecasts. The impairment loss of \u20ac84.1 million has been entirely allocated to goodwill. The recoverable amount of a CGU is determined by means of value-in-use calculations. These calculations are based on pre-tax cash flow projections (prepared in euros) using key parameters from the consolidated financial budget approved by Ontex\u2019 Board of Directors and the Group\u2019s Strategic Plan through 2025. Cash flows in 2026 are determined based on the average growth rate in the Group\u2019s Strategic Plan through 2025. Cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. The key assumptions for the value-in-use calculations used to determine the recoverable amount are those regarding the discount rates, estimated changes to selling prices, product offerings, direct costs, operating margins and terminal growth rates. Climate-related matters were considered but did not have a material impact on the value-in-use calculation as explained in the Non-Financial Statements. The discount rate is a measure based on industry average weighted cost of capital and risk-free rates weighted for the different regions in which the CGU\u2019s are operating. Changes in selling practices and direct costs are based on past practices and expectations of future changes in the market. The calculation uses cash flow projections based on key parameters from the consolidated financial budget approved by the Board of Directors, the Group\u2019s Strategic Plan through 2025, and pre-tax discount rates for each CGU as described in note 7.4.4 Impairment based on current market assessments of the time value of money and the risks specific to the Group. The development of the financial budget and Strategic Plan relies on a number of assumptions, including: \u2022 The market growth, the evolution of the Group\u2019s market share, competitive landscape and innovation trends in the different markets as well as strategic initiatives. \u2022 The product mix. \u2022 The expected evolution of various direct and indirect expenses. \u2022 The estimated future capital expenditure. The assumptions were derived mainly from: \u2022 Available historic data. \u2022 External market research. \u2022 Internal market expectations based on trend reports, etc. The key assumptions used are reviewed and updated on a yearly basis by the Group\u2019s management. Taking into account the excess of the cash-generating unit\u2019s recoverable amount over its carrying amount, and based on sensitivity testing performed, management is of the opinion that any reasonably possible changes in key assumptions on which the recoverable amount is based would not cause the carrying amount to exceed the recoverable amount at December 31, 2022. The Group has performed a sensitivity analysis by reducing the risk-adjusted cash flow projections and by increasing the pre-tax discount rate as disclosed in note 7.4.4 Impairment. 7.10. PROPERTY, PLANT AND EQUIPMENT Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2022 Opening carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 Hyperinflation opening net book amount 0.0 6.4 0.0 0.0 0.0 6.5 Restated opening net book amount 121.4 403.3 1.0 0.6 53.6 579.9 Additions 4.9 33.6 0.3 0.1 7.0 45.9 Transfers 2.0 21.6 0.1 0.0 (23.2) 0.6 Disposals (0.3) (0.7) 0.0 0.0 (0.1) (1.1) Depreciation expense (4.4) (35.2) (0.3) (0.2) 0.0 (40.0) Impairment 0.0 (4.1) (0.0) 0.0 (0.2) (4.4) Capital grants received 0.0 (0.4) 0.0 0.0 0.0 (0.4) Exchange differences 0.8 7.2 0.0 0.0 0.9 9.0 Reclassified as held for sale (46.7) (124.9) (0.3) (0.2) 2.5 (169.5) Closing carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 At December 31, 2022 Cost 124.1 587.5 3.3 3.3 40.6 758.8 Accumulated depreciation and impairment ( 46.3) ( 287.1) ( 2.3) ( 2.9) 0.0 ( 338.7) Carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2021 Opening carrying amount 123.1 407.3 1.3 1.0 83.2 615.9 Additions 0.9 18.1 0.0 0.0 25.3 44.2 Transfers 1.0 54.1 0.0 0.1 (55.6) (0.3) Disposals (1.2) (0.3) 0.0 (0.1) (0.1) (1.7) Depreciation expense (5.7) (46.0) (0.4) (0.5) 0.0 (52.5) Impairment (1.7) (39.5) (0.0) 0.0 (0.2) (41.4) Capital grants received 0.0 (0.2) 0.0 0.0 0.0 (0.2) Exchange differences 2.3 3.2 (0.0) 0.0 1.0 6.5 Reclassified as held for sale 2.7 0.2 (0.0) 0.0 0.0 2.9 Closing carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 At December 31, 2021 Cost 171.7 743.6 3.5 3.9 53.6 976.3 Accumulated depreciation and impairment ( 50.3) ( 346.7) ( 2.5) ( 3.4) 0.0 ( 402.9) Carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 The additions to property, plant and equipment represent mainly investments in capacity extension, investments in innovation, investments to improve the efficiency and IT investments. The decrease compared to prior year is mainly linked to the reclassification to assets held for sale. Impairment losses in 2022 are limited to \u20ac4.4 million and is related to an expected decreased utilization rate on some machinery. In 2021, impairment losses consisted for an amount of \u20ac18.4 million to the impairment performed on the business in Brazil and additional impairment losses recognized on idle machinery because of the economic downturn in certain of our geographies. The depreciation expense is included in the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of Sales 34.3 33.0 Distribution expenses 1.3 1.4 Sales and marketing expenses 0.1 0.1 General administrative expenses 2.4 2.4 Other operating income 1.8 1.5 Total depreciation expense 40.0 38.4 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac14.2 million. No pledges have been set on the items of property, plant and equipment, except for some machinery in the context of local borrowings. 7.11. LEASES Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2022 Opening carrying amount 87.4 4.0 10.5 102.0 Hyperinflation opening net book amount 0.7 0.0 0.0 0.7 Restated opening net book amount 88.1 4.0 10.5 102.7 Additions 40.3 0.6 3.3 44.2 Transfers ( 0.0) ( 0.7) 0.0 ( 0.7) Disposals ( 0.5) 0.0 ( 0.0) ( 0.6) Depreciation expense ( 15.8) ( 1.3) ( 4.1) ( 21.2) Impairment ( 3.2) 0.0 0.0 ( 3.2) Modifications to lease liabilities ( 2.0) ( 0.1) ( 0.5) ( 2.5) Exchange differences 2.6 ( 0.0) 0.1 2.7 Reclassified as held for sale ( 9.5) ( 0.1) ( 1.7) ( 11.3) Closing carrying amount 100.1 2.5 7.5 110.1 At December 31, 2022 Cost 156.8 6.7 16.5 180.0 Accumulated depreciation and impairment ( 56.8) ( 4.2) ( 9.0) ( 69.9) Carrying amount 100.1 2.5 7.5 110.1 Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2021 Opening carrying amount 108.8 6.2 11.8 126.8 Additions 2.5 0.2 4.5 7.2 Depreciation expense (16.3) (2.3) (5.8) (24.4) Impairment (5.0) 0.0 0.0 (5.0) Modifications to lease liabilities (3.5) (0.1) 0.3 (3.3) Exchange differences 0.9 0.0 (0.3) 0.7 Closing carrying amount 87.4 4.0 10.5 102.0 At December 31, 2021 Cost 138.6 11.4 25.5 175.5 Accumulated depreciation and impairment (51.1) (7.4) (14.9) (73.4) Carrying amount 87.4 4.0 10.5 102.0 The Group leases mainly plants and warehouses (lease terms between 3 and 25 years), machinery (lease terms of 5 years on average) and company cars (lease terms between 4 and 5 years). For the lease of land and buildings, the Group is exposed to potential future increases in variable lease payments based on an index, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Extension and termination options are included in a number of property and equipment leases across the Group. These are used to maximize operational flexibility in terms of managing the assets used in the group\u2019s operations. As at December 31, 2022, potential future cash outflows of \u20ac17.8 million (undiscounted) have not been included in the lease liability because it is not reasonably certain that the leases will be extended (or not terminated) (2021: \u20ac21.4 million). The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million. The lease liabilities are detailed in note 7.17. 7.12. INVENTORIES Inventories can be split as follows: in \u20ac million December 31, 2022 December 31, 2021 Raw materials 148.7 178.8 Work in progress 0.8 1.6 Finished goods 122.6 188.6 Other 5.1 7.5 Write-down on inventories (12.9) (17.8) Inventories 264.3 358.7 The Group mainly uses fluff, super-absorbers and non-woven fabrics. Other raw materials used by the Group for its production include polyethylene, adhesives and tapes as basic raw materials. The finished products are baby diapers, baby pants, towels, tampons, panty liners, incontinence products and trade goods. The cost of inventories recognized as an expense and included under \u2018Cost of sales\u2019 amounted to \u20ac1,294.7 million in 2022 (\u20ac1,510.4 million in 2021). The amount for 2021 consists of the full group and does not take into account the reclassification to discontinued operations as the statement of financial position figures at December 31, 2021 were not restated. 7.13. TRADE RECEIVABLES, PREPAID EXPENSES AND OTHER RECEIVABLES The current trade and other receivables are detailed below: in \u20ac million December 31, 2022 December 31, 2021 Trade receivables 195.9 278.4 Less: allowance for impairment of trade receivables (4.1) (8.6) Trade receivables - net 191.8 269.8 Prepayments 4.8 8.7 Other amounts receivable 32.1 60.5 Prepaid expenses and other receivables 36.8 69.2 Trade and other receivables - Current 228.6 339.0 Other amounts receivable include recoverable VAT for an amount of \u20ac29.4 million for 2022 (2021: \u20ac55.9 million). The decrease compared to prior year is explained by the reclassification to assets held for sale of the Emerging Markets. The fair value of the current receivables approximates their carrying amounts. The aging of the trade receivables (net) at December 31 is as follows: in \u20ac million December 31, 2022 December 31, 2021 Not due 164.7 223.6 0 to 30 days 16.6 21.2 31 to 60 days 4.4 8.0 61 to 90 days 1.5 6.7 Over 90 days 4.5 10.2 Total 191.8 269.8 The Group doesn\u2019t apply systematically external credit rating. The carrying amount of the Group\u2019s trade receivables (net) are denominated in the following currencies: in \u20ac million December 31, 2022 December 31, 2021 EUR 71.8 70.6 PLN 34.5 35.0 USD 29.3 32.9 GBP 26.9 19.2 RUB 16.5 13.4 BRL - 33.1 MXN - 27.2 DZD - 10.1 TRY - 9.2 Other 12.8 18.9 Total 191.8 269.8 During the year, the payment terms for the receivables have neither deteriorated nor been renegotiated that affect the overall payment terms. The maximum credit risk exposure at the end of the reporting period is the carrying value of each caption of receivables mentioned above. The Group does not hold any collateral as security. An impairment analysis of trade receivables is done based on expected losses, next to individual assessments, but there are no significant impairments. Movements on the Group allowance for impairment of trade receivables are as follows: in \u20ac million December 31, 2022 December 31, 2021 Opening Balance 8.6 8.2 Allowance for receivable impairment 0.3 1.3 Receivables written off during the year as uncollectible (0.3) (0.1) Unused amounts reversed (0.1) (0.9) Foreign exchange differences 0.1 0.1 Reclassified as held for sale (4.4) - At December 31 4.1 8.6 The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The creation and the release of the allowance for impaired receivables have been included in \u2018Sales and marketing expense\u2019 in the income statement. The Group has a long term, standing non-recourse syndicate factoring agreement with BNP Paribas Fortis Factor and KBC Commercial Finance. The Agreement provides us with a maximum credit facility of up to \u20ac200.0 million and up to 95% of the amount of the approved outstanding receivables on all debtors that we transfer to the Factor. The remaining 5% of the relevant receivables is paid by the Factor to us upon receipt of payment from the relevant debtor, upon which also the remaining balance of the receivable is derecognized. Financing per debtor is capped at 10% of the aggregate amount of all approved outstanding receivables transferred to the Factor. Any financing within the credit limit is non-recourse to us. Next to the above-mentioned Group factoring agreement a number of local non-recourse agreements are in place at local level. Bilateral factoring agreements are in place for Serenity (Italian subsidiary) with Ifitalia, Banca Sistema and BFF, and Ontex Russia has agreements with AK BARS BANK PJSC. As at December 31, 2022, \u20ac165.5 million of financing was obtained through the factoring programs (\u20ac146.6 million in 2021), this is in addition to \u20ac3.4 million of financing which was obtained through the use of supply chain financing programs offered by our customers. The late payment risk related to the factoring has been assessed as immaterial at closing 2022 and 2021. In accordance with IFRS 9 Financial instruments, all non-recourse trade receivables, included in these factoring programs, are derecognized for the non-continuing involvement part. .7.14. CASH AND CASH EQUIVALENTS The net cash position as presented in the consolidated statement of cash flows is as follows: in \u20ac million December 31, 2022 December 31, 2021 Short-term bank deposits (no longer than 3 months) 15.4 58.3 Cash at bank and on hand 133.7 188.4 Total 149.1 246.7 The carrying amount of the cash and cash equivalents is a reasonable approximation of their fair value. Ontex Russia has cash that can only be used to a certain extent by other entities within the group but is accessible on demand by the subsidiary and is therefore included in cash and cash equivalents in the statement of financial position. The credit quality of the banks and financial institutions the Group is working with is mentioned in the following table: in \u20ac million December 31, 2022 December 31, 2021 AA 1.6 1.7 A 142.8 209.5 BBB 1.1 5.3 BB 1.4 17.9 B - 7.5 No credit rating 2.2 4.8 Total 149.1 246.7 .7.15. SHARE CAPITAL The capital of \u20ac1,208.0 million is represented by 82,347,218 (authorized) shares, of which 1,270,500 treasury shares (2021: 1,381,140 treasury shares). As such, the ordinary shares held by third parties amount to 81,076,718 shares (2021: 80,966,078). The issued capital is fully paid and consists of ordinary shares without par value. .7.16. EARNINGS PER SHARE In accordance with IAS 33, the basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. The number of shares used for 2022 was 81,030,032, which is the weighted average number of shares for 2022 (2021: 80,950,106 shares). Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent (after adjusting for the effects of all dilutive potential ordinary shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. In case of Ontex Group NV, no effects of dilution affect the net profit attributable to ordinary equity holders. The table below reflects the income and share data used in the basic and diluted earnings per share computations: Full Year in \u20ac million 2022 2021* Basic earnings Profit/(loss) from continuing operations attributable to equity holders of the Company (148.7) (19.5) Profit/loss attributable to equity holders of the Company (270.3) (61.9) Diluted earnings Profit/(loss) from continuing operations attributable to equity holders of the Company (148.7) (19.5) Profit/loss attributable to equity holders of the Company (270.3) (61.9) Adjusted Basic Earnings Profit from continuing operations attributable to equity holders of the Company (148.7) (19.5) EBITDA adjustments 103.0 59.7 Tax correction (4.4) (15.5) Adjusted Basic Earnings (50.1) 24.7 Adjustment dilution - - Adjusted Earnings, after dilution effect (50.1) 24.7 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations. Full Year Number of Shares 2022 2021 Weighted average number of ordinary shares outstanding during the period 81,030,032 80,950,106 Dilution 285,935 230,027 Full Year Earnings per share (\u20ac) 2022 2021 For continuing operations Basic earnings per share (1.83) (0.24) Diluted earnings per share (1.83) (0.24) Adjusted basic earnings per share (0.62) 0.30 Adjusted diluted earnings per share (0.62) 0.30 For continuing and discontinued operations Basic earnings per share (3.34) (0.76) Diluted earnings per share (3.34) (0.76) A weighted average number of 3,377,976 options were not included in the denominator of the diluted earnings per share as they were out-of-the-money at year-end 2022 (2021: 2,320,425 options). .7.17. INTEREST-BEARING DEBTS in \u20ac million December 31, 2022 December 31, 2021 Non-current Borrowings: 791.4 793.1 Senior Notes 573.8 572.1 Syndicated Term Loan A > 1 year 217.3 216.3 Other borrowings 0.2 4.6 Lease and other liabilities 100.4 92.1 Lease liabilities 100.4 92.1 Interest-bearing debts non-current 891.7 885.2 Current Borrowings: 125.4 56.4 Senior revolving Facility B 115.0 - Other borrowings - 14.8 Interests: Other borrowings 10.4 10.4 Total return swap - 31.2 Lease and other liabilities 20.0 30.6 Lease liabilities 20.0 21.5 Other financial liabilities (0.0) 9.1 Interest-bearing debts current 145.4 87.0 Total interest-bearing debts 1,037.1 972.2 All borrowings are denominated in \u20ac as of December 31, 2022. On June 23, 2021 the Group refinanced it\u2019s syndicated credit facilities agreement (Syndicated Term Loan A) for an amount of \u20ac220.0 million, and a revolving credit facility (Senior Revolving Facility B) in an amount of up to \u20ac250.0 million. In addition, it issued a 5-year High Yield Bond (\u2018Senior Notes\u2019) in an amount of \u20ac580.0 million with a coupon of 3.50%. The Syndicated Term Loan A of \u20ac 220.0 million due 2024 is carrying an interest rate of EURIBOR 3 months + margin of 3.90% (subject to the leverage). The Senior Revolving Facility due 2024 is carrying an interest rate of EURIBOR + margin of 3.60% (subject to the leverage), and was utilized for \u20ac115.0 million at closing 2022. On July 29, 2015, a full hedging program (total return swap) for the share-based payment arrangements (LTIP) was implemented. For more information, see note 7.5.6 and 7.28. This program was stopped in 2022. The following table reconciles the movements of the financial liabilities to the cash flows arising from financing activities: December 31, 2022 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 793.1 (0.4) - (0.8) (1.1) 2.6 793.4 (2.0) Lease and other liabilities 92.1 (25.0) 44.8 4.3 (1.6) 0.6 115.2 (14.8) Current interest-bearing debts - Borrowings 56.4 75.9 - 0.7 1.1 - 134.1 (8.7) Lease and other liabilities 30.6 1.0 - 0.2 1.6 0.0 33.5 (13.5) Total liabilities from financing activities 972.2 51.5 44.8 4.4 0.0 3.2 1,076.1 (39.0) Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 133.2 Repayment of borrowings (81.7) December 31, 2021 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 800.4 33.9 - (0.1) (48.2) 7.1 793.1 - Lease and other liabilities 111.0 (22.7) 7.2 1.3 0.2 (4.9) 92.1 - Current interest-bearing debts Borrowings 341.1 (341.9) - 0.2 48.2 8.8 56.4 - Lease and other liabilities 25.2 5.4 - 0.2 (0.2) - 30.6 - Total liabilities from financing activities 1,277.7 (325.3) 7.2 1.7 0.0 10.9 972.2 - Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 799.3 Repayment of borrowings (1,124.7) 7.17.1. Collateral for borrowings The Group is subject to regular information covenants, and certain financial ratios are monitored. At year-end 2022 and 2021, all covenants were met. No assets have been pledged in the context of the syndicated term loans. However, certain subsidiaries act as guarantors for these loans. For local borrowings, some machinery are pledged. 7.17.2. Other information Serenity SPA has a total of \u20ac62.0 million lines of credit available, of which \u20ac19.5 million has been used through the issuance of external bank guarantees: \u2022 \u20ac30.0 million from UniCredit \u2022 \u20ac25.0 million from UBI \u2022 \u20ac7.0 million from BNL A line of credit of AUD 1.0 million has been granted to Ontex Manufacturing Pty Ltd by Commonwealth Bank Australia, of which AUD 0.4 million has been used. For Ontex BV, a bank guarantee issued by BNL is in place for \u20ac2.5 million in favor of the Italian Custom Agency as at December 31, 2022. .7.18. EMPLOYEE BENEFIT LIABILITIES The Group grants its working and retired personnel post-employment benefits, long-term benefits, and termination benefits. These benefits have been valued in conformity with IAS 19. The related IAS 19 liability recognized in the statement of financial position can be analyzed as follows: in \u20ac million December 31, 2022 December 31, 2021 Post-employment benefits 12.5 20.1 Long-term benefits 1.1 1.9 Employee benefit liabilities 13.5 22.0 Short-term employee benefit liabilities 40.4 46.2 Net liability 54.0 68.2 The calculation of the liability is based on actuarial assumptions that have been determined on the various statement of financial position dates. They are based not only on macro-economic factors valid for the dates in question but also on the specific characteristics of the various schemes evaluated. They represent the Group\u2019s best estimate for the future. They are periodically reviewed in accordance with the evolution of the markets and available statistics. Post-employment benefits Ontex makes payments on a defined contribution basis to both state and private pension arrangements across our operations. In addition, Ontex operates a defined benefit insurance scheme in Belgium and Ontex also has an obligation to make severance payments to employees upon their retirement in France. Ontex also operates several unfunded pension arrangements in respect of our German operations. The German operations do not fund the pension arrangements but reflect pension scheme liabilities in company accounts on an IAS 19 basis. The pension benefits are paid by the relevant company as they fall due. The Group operates a couple of defined contribution (DC) plans which receive fixed contributions. The Group\u2019s legal or constructive obligation for these plans is limited to the contributions. The expense recognized in the current period in relation to these contributions amounts to \u20ac4.1 million (see also note 7.22 below; 2021: \u20ac4.9 million). The 2021 amount has been restated following the classification of the Emerging Markets as discontinued operations. In Belgium, the defined contribution (DC) plans are subject to a minimum guaranteed rate of return by law and are hence treated as defined benefit (DB) plans. In practice, this guarantee is mainly covered by insurance companies. As there is no deficit as per December 31, 2022, no liability has been recognized (2021: nil). The accumulated reserves of these plans are equal to the assets. There are no risks to which the plan exposes the entity, focusing on any unusual, entity-specific or plan-specific risks, and of any significant concentrations of risk. Reconciliation of the post-employment employee benefit liabilities in \u20ac million December 31, 2022 December 31, 2021 RECOGNITION OF THE OBLIGATION Defined benefit obligation (DBO) at end of period (26.2) (33.6) Fair value of plan assets at end of period 15.2 14.7 Funded status (11.1) (18.9) Net (liability)/asset in statement of financial position (11.1) (18.9) Defined benefit cost Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost recognized in Income Statement (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Interest income on plan assets 0.2 0.1 Net interest cost (0.2) (0.2) Pension expense (2.4) (2.8) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF THE OBLIGATION Defined benefit obligation (DBO) at beginning of year (33.6) (36.3) Transfer to liability held for sale 2.4 - Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Participant contributions (0.1) (0.1) Administrative expenses included in the DBO 0.1 0.1 Taxes included in the DBO 0.1 0.2 Benefit payments from plan 0.4 0.2 Benefit payments from employer 0.5 0.5 Effect of changes in financial assumptions 5.4 2.5 Effect of experience adjustments 1.1 2.0 Effect of changes in foreign exchange rates - 0.3 Defined benefit obligation (DBO) at end of year (26.2) (33.6) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF PLAN ASSETS AT FAIR VALUE Fair value of plan assets at beginning of year 14.7 13.5 Transfer to liability held for sale (0.4) - Interest income 0.2 0.1 Employer contribution 1.6 1.9 Plan participants' contributions 0.1 0.1 Benefit payments from plan (0.4) (0.2) Benefit payments from employer (0.5) (0.5) Administrative expenses included in the DBO (0.1) (0.1) Taxes paid from plan assets (0.1) (0.2) Return on plan assets (excluding interest income) 0.0 0.1 Fair value of plan assets at end of year 15.2 14.7 in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF NET (LIABILITY)/ASSET IN STATEMENT OF FINANCIAL POSITION Net (liability)/asset at beginning of year (18.9) (22.8) Transfer to liability held for sale 2.0 - Defined benefit cost included in the income statement (2.2) (2.6) Net interest expense (0.2) (0.2) Total remeasurements included in OCI 6.5 4.6 Employer contributions 1.6 1.9 Effect of changes in foreign exchange rates - 0.3 Net (liability)/asset at end of year (11.1) (18.9) Unfunded versus Funded Part of DBO from plans that are wholly unfunded (11.1) (18.9) The plan assets consist of insurance contracts. Expected contributions to post-employment benefit plans for the year ending December 31, 2023 are \u20ac1.5 million. Significant actuarial assumptions COUNTRY December 31, 2022 Belgium Germany France Italy 3,35% / 3,30% / Discount rate 3.55% 3.35% 3.45% 3,55% 3,35% / 3,30% / Expected Interest Income 3.55% 3.35% 3.45% 3,55% 0.00% / N/A / Salary increase rate (on top of inflation) 3.50% 3.50% N/A N/A 2,25% / 0,00% / Rate of inflation 2.25% 2.55% 2.50% 2,25% MR FR with age INSEE Mortality table correction minus Heubeck 2018 G IPS55 2017/2019 5 years 5% p.a. flat up to age 50 and 2% Only Jubilee: p.a. flat from age 10% of Client's table by 51 to retirement Turnover table/rates None employees 60 category including an years old and allowance for younger advance payments Disability table/rates N/A N/A N/A N/A Weighted average durations 12.7 11.3 11.6 10.6 COUNTRY December 31, 2021 Turkey Mexico Pakistan Belgium Germany France Italy 0,70% / 0,90% / Discount rate 19.60% 7.76% 10.75% 1.20% 0.95% 0.90% 1,00% 0,70% / 0,90% / Expected Interest Income 19.60% 7.76% 10.75% 1.20% 0.95% 0.90% 1,00% 0.00% / N/A / Salary increase rate (on top of inflation) 13.00% 4.54% 10.75% 3.25% 2.50% N/A N/A 1,75% / 0,00% / Rate of inflation 13.00% 4.00% 8.98% 1.75% 1.75% 1.50% 1,75% State Life Insurance MR FR with age INSEE Mortality table C.S.O. 1980 EMSSA09 Corporation correction minus Heubeck 2018 G IPS55 2016/2018 (SLIC) 2001-5 years 2005 5% p.a. flat up to age 50 and 2% Only Jubilee: p.a. flat from age Based on 10% of Company Client's table by 51 to retirement Turnover table/rates company 3.7% None employees 60 specific category including an experience years old and allowance for younger advance payments Disability table/rates N/A N/A N/A N/A N/A N/A N/A Weighted average durations 7.3 13.8 53.7 16.2 8.9 12.6 10.4 There are no unusual entity-specific or plan-specific risks to which the plan exposes the entity, neither are there any significant concentrations of risk. The sensitivity analyses below have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. December 31, 2022 in \u20ac million Belgium Germany France Italy Discount rate - 0,25bp (17.5) (6.8) (1.7) (1.6) Discount rate + 0.25bp 17.2 6.5 1.6 1.6 Salary increase - 0.25bp (0.1) (5.9) (1.6) (1.6) Salary increase + 0.25bp 0.1 5.9 1.7 1.6 December 31, 2021 in \u20ac million Turkey Mexico Pakistan Belgium Germany France Italy Discount rate - 0,25bp (0.9) (1.5) (0.5) (21.3) (9.4) (1.9) (1.9) Discount rate + 0.25bp 0.8 1.4 0.4 19.7 9.0 1.8 1.8 Salary increase - 0.25bp (0.8) (1.5) (0.4) (20.3) (9.2) (1.8) (1.8) Salary increase + 0.25bp 0.9 1.5 0.5 20.6 9.2 1.9 1.8 Post-Employment Benefits by Country December 31, 2022 in \u20ac million Belgium Germany France Italy RECOGNITION OF THE OBLIGATION Defined benefit obligation (DBO) at end of period (16.5) (6.5) (1.6) (1.6) Fair value of plan assets at end of period 15.2 - - - Funded status (1.3) (6.5) (1.6) (1.6) Net (liability)/asset in statement of financial position (1.3) (6.5) (1.6) (1.6) December 31, 2021 in \u20ac million Turkey Mexico Pakistan Belgium Germany France Italy RECOGNITION OF THE OBLIGATION Defined benefit obligation (DBO) at end of period (0.6) (1.5) (0.4) (19.2) (8.3) (1.8) (1.8) Fair value of plan assets at end of period - - 0.4 14.4 - - - Funded status (0.6) (1.5) (0.0) (4.9) (8.3) (1.8) (1.8) Net (liability)/asset in statement of financial position (0.6) (1.5) (0.0) (4.9) (8.3) (1.8) (1.8) .7.19. DEFERRED TAXES AND CURRENT TAXES 7.19.1. Deferred taxes Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred taxes relate to the same fiscal authority. The deferred tax assets and liabilities are attributable to the following items: December 31, 2022 December 31, 2021 Deferred tax asset Deferred tax liability Deferred tax asset Deferred tax liability in \u20ac million Intangible assets 1.1 - - (0.9) Property, plant and equipment - (45.4) - (40.7) Leases 19.5 (14.9) 22.7 (19.8) Inventories 2.8 - 1.7 - Financial instruments 0.0 - 35.8 (36.6) Employee benefits 3.1 - 5.8 - Accrued expenses and other payables 3.9 - 8.9 - Others - (0.1) 2.5 - Tax losses 126.0 - 162.6 - Tax credit 15.9 - 9.4 - Deferred tax assets & liabilities - Gross 172.4 (60.3) 249.3 (98.0) Net deferred tax assets not recognized (121.2) - (154.1) - Offsetting (39.0) 39.0 (75.5) 75.5 Deferred tax assets & liabilities - Net 12.1 (21.3) 19.7 (22.5) Deferred tax assets are recognized on temporary differences, tax attributes carried forward and tax losses carried forward to the extent that the realization of the related tax benefit through the future taxable profits is probable. The tax losses carried forward mainly relate to France, Belgium and Spain. In Belgium and France, deferred tax assets have been recognized on tax losses carried forward considering the expected taxable profits in the foreseeable future. The Group did not recognize deferred tax assets for an amount of \u20ac121.2 million (2021: \u20ac154.1 million) on the tax losses carried forward. Tax losses can in principle be carried forward indefinitely. The Group did not recognize deferred taxes associated with investments in subsidiaries. There is currently no policy or detailed plan in relation to the payment of dividends within the Group. 7.19.2. Current taxes December 31, 2022 December 31, 2021 in \u20ac million Current tax assets 5.0 15.0 Current tax liabilities (23.0) (31.8) The current tax assets mainly relate to the excess of pre-payments made compared to the actual income tax payable for the year. The current tax liabilities include an amount of \u20ac14.8 million actual corporate taxes payable (2021: \u20ac19.5 million) and \u20ac8.2 million of provision for uncertain taxes (2021: \u20ac12.3 million). 7.20. CURRENT AND NON-CURRENT LIABILITIES Other current liabilities (excluding provisions, income tax liabilities, financial liabilities and liabilities directly associated with non-current assets intended for sale) can be presented as follows: in \u20ac million December 31, 2022 December 31, 2021 Accrued expenses and other payables 22.6 39.0 Current accrued expenses and other payables 22.6 39.0 Trade payables 405.3 532.6 Employee benefit liabilities 40.4 46.2 Total current liabilities 468.3 617.8 7.21. PROVISIONS in \u20ac million Legal claims Restructuring Other Total Opening Balance 7.9 24.5 0.2 32.6 Additional provisions 0.2 0.5 0.0 0.7 Unused amounts reversed (0.1) (1.2) - (1.3) Used during the year (0.1) (22.6) (0.1) (22.9) Reclassified as held for sale (1.1) (0.1) - (1.2) As at December 31, 2022 6.8 1.1 0.1 8.0 Of which current 6.8 1.1 0.1 8.0 The restructuring provisions used in 2022 was recognized in 2021 and related to the strategic review of the geographical footprint, launched at year-end 2020 and confirmed in 2021. The provision mainly included termination benefits. The Group recognizes a provision for certain legal claims filed against the Group by customers, suppliers or former employees. On September 2, 2014, Ontex received a notification that the Spanish Competition Authorities (CNMC) opened infringement proceedings against 15 companies in the sector (including three subsidiaries of the Company: Ontex Es Holdco, S.A., Ontex Peninsular, S.A.U. and Ontex ID, S.A.U.) with respect to alleged conduct of fixing prices and other commercial conditions in the Spanish market for heavy adult incontinence products. On May 26, 2016, following the investigation, the CNMC issued its decision. In its decision it has found eight companies, including Ontex' Spanish subsidiaries guilty of being part of a cartel. For its involvement from 1999 to 2014, Ontex was fined \u20ac5.2 million. Ontex initiated an appeal against the decision and this appeal was rejected by judgement of September 2022. Ontex has filed a subsequent request demanding correction of the judgement that rejected Ontex\u2019s appeal and will consider further steps once the request has been processed. As per December 31, 2016, a provision amounting to \u20ac5.2 million has been accounted for. The provision has not been adjusted per December 31, 2022. 7.22. EMPLOYEE BENEFIT EXPENSES Full Year in \u20ac million 2022 2021* Wages and salaries (193.7) (185.8) Social security costs (44.8) (45.7) Defined benefit plans - Service cost (2.2) (2.4) Defined contribution costs (4.1) (4.9) Other employee benefit expenses (40.8) (33.3) Total employee benefit expenses (285.6) (272.2) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac81.1 million. The FTEs listed in the table below only contains the employees part of the continuing operations and therefore deviates significantly from the number of employees included in section 1.2. In Full-Time Equivalents 2022 2021* Average number of total employees 5,351 5,370 Of which: - workers 3,323 3,486 - employees 1,966 1,824 - management 62 59 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of 3.974 average number of total employees. 7.23. OTHER OPERATING INCOME/(EXPENSES), NET Full Year in \u20ac million 2022 2021* Foreign exchange differences on operating activities 8.5 (1.9) Losses on sale of assets (0.6) (0.0) Other income/(expenses) (2.8) (5.0) Total other operating income/(expense), net 5.1 (7.0) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having a negative impact of \u20ac1.4 million. \u201cOther income/(expenses)\u201d consists mainly of depreciation expenses on idle equipment and machinery and pension expenses. 7.24. EBITDA ADJUSTMENTS Full Year in \u20ac million 2022 2021* Business restructuring (10.8) (33.0) Acquisition and disposal of businesses (0.3) (1.1) Refinancing - (0.1) Income and expenses related to changes to Group structure (11.2) (34.2) Impairment of assets (91.0) (23.5) Litigation and legal claims (0.2) (3.2) Other (0.6) 1.2 Income and expenses related to impairments and major litigations (91.8) (25.5) Total EBITDA adjustments (103.0) (59.7) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac25.1 million Items classified under the heading EBITDA adjustments are those items that are considered by management not to relate to items in the ordinary course of activities of the Company. The Group has adopted this classification to allow a better understanding of its recurring financial performance. These items are presented as follows in the consolidated income statement as follows: \u2022 income and expenses related to changes to Group structure; and \u2022 income and expenses related to impairments and major litigations. 7.24.1. Income and expenses related to changes to Group structure Restructuring In 2021, the cost relates to the restructuring expenses in the context of the redistribution/re-allocation of production capabilities and the strategic review of the geographical footprint of the Group. As such, the Company decided to downsize some production capacity which has been announced to the relevant stakeholders and incurred costs for a total amount of \u20ac26.4 million in 2021, of which \u20ac23.8 million was recognized as a restructuring provision during 2021. Costs related to this exercise amounted to \u20ac5.4 million in 2022. The Group announced in the fourth quarter of 2020 an in-depth review of the Group\u2019s overhead cost structure. The costs incurred in 2021 amount to \u20ac7.5 million. The difference with the figures included in the annual report of 2021 is explained by the part related to the Emerging Markets. 7.24.2. Income and expenses related to impairments and major litigations Impairment of assets In 2022, the impairment losses mainly include the impairment of goodwill related to the Russian business (\u20ac84.1 million) and also some impairment losses on idle machinery. In 2021, the impairment losses mainly include the impairment losses on idle machinery. Litigation and claims The Company incurred specific legal fees in the context of certain on-going or potential litigation matters which are expected to result in a potential benefit for the Company or in the avoidance of potential future expenses. 7.25. EXPENSES BY NATURE Expenses by nature represent an alternative disclosure for amounts included in the consolidated income statement. There are classified under \u2018Cost of sales\u2019, \u2018Distribution expenses\u2019, \u2018Sales and marketing expenses\u2019, \u2018General administrative expenses\u2019 and \u2018Other operating income / expense (net)\u2019 in respect of the years ended December 31: Full Year in \u20ac million Note 2022 2021* Changes in inventories 2.8 (2.8) Raw materials and consumables purchased (1,048.1) (777.0) Employee benefit expenses 22 (285.6) (272.2) Depreciation and amortization 9, 10, 11 (70.4) (65.7) Rendered services (223.9) (178.5) Lease expenses 11 (18.5) (15.0) Other income / (expenses) 23 5.1 (7.0) Total cost of sales, distribution expenses, sales and marketing expenses, general administrative expenses and other operating (1,638.6) (1,318.1) income / (expense) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac623.7 million. 7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11. 7.27. INCOME TAX EXPENSE The income tax (charged)/credited to the income statement during the year is as follows: Full Year in \u20ac million 2022 2021* Current tax (expense) / income (16.3) (12.4) Deferred tax (expense) / income (12.1) 3.5 Total income tax expense (28.4) (8.9) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac9.1 million. The income tax expense can be reconciled as follows: Full Year in \u20ac million 2022 2021* Profit/(loss) before income tax (120.3) (10.6) Income tax expense calculated at domestic tax rates 27.1 2.6 Disallowed expenses (2.6) (4.1) Tax-exempt income 1.0 1.3 Impairment of goodwill (19.3) - Write-off of previously recognized deferred tax assets on losses (12.0) (10.1) Current year tax losses not recognized as deferred tax asset (23.4) (1.4) Recognition of previously unrecognized deferred tax assets on losses 1.6 0.4 Adjustments in respect of prior year (1.5) 0.7 Difference in statutory tax rates - (0.2) Exchange rate differences - 0.1 Other 0.8 1.8 Total income tax expense (28.4) (8.9) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac9.1 million. 7.28. SHARE-BASED PAYMENTS Since September 2014 the Company implemented yearly Long-Term Incentive Plans (\u2018LTIP\u2019), which are based on a combination of stock options (further \u2018Options\u2019) and restricted stock units (further \u2018RSU\u2019s\u2019). In 2019 the long-term incentive plan changed in a combination of RSU\u2019s, Options and Performance Stock Units (further \u2018PSU\u2019s\u2019), each representing one third of the total long-term incentive grant value. The Options, RSU\u2019s and PSU\u2019s are accounted for as equity-settled share-based payments. The Options, RSU\u2019s and PSU\u2019s can only vest and Options giving the right to receive shares of the Company (further \u2018Shares\u2019) or any other rights to acquire Shares can only be exercisable as from three years after the grant. The RSU\u2019s, PSU\u2019s and Options will vest subject to the condition that the participant remains in service. The share price is considered to be the relevant performance indicator and the vesting of the award will not be subject to additional specific performance conditions, except for PSU\u2019s. For the vesting of the PSU\u2019s, the Board has set targets for the next 3-year performance period in terms of specific targets (both finance and non-finance KPI\u2019s). The Articles of Association authorize the Company to deviate from such rule, as allowed under the Belgian Companies Code. The exercise price of the Options will be equal to the last closing rating of the Share immediately preceding the option grant date. For the Options, the exercise period will start on the vesting date. The Shares underlying the RSU\u2019s and PSU\u2019s will be granted for free as soon as practicable after the vesting date of the RSU\u2019s and the PSU\u2019s. Upon vesting of RSU\u2019s and PSU\u2019s, the Shares underlying the RSU\u2019s and PSU\u2019s are transferred to the participants, while upon vesting, Options may be exercised until their expiry date (eight years from the date of grant). On or about June 26, 2015, a total of 159,413stock options and 38,294 RSU\u2019s were granted, 37,339 options and 38,294 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2018 and June 2023. On or about June 15, 2016, a total of 322,294 stock options and 75,227 RSU\u2019s were granted, 87,768 options and 75,227 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2019 and June 2024. On or about May 10, 2017 a total of 299,914 stock options and 69,023 RSU\u2019s were granted, 76,529 options and 69,023 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2020 and June 2025. On or about June 15, 2018, a total of 471,064 stock options and 93,576 RSU\u2019s were granted, 155,215 options and 93,576 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2021 and June 2026. On or about June 13, 2019, a total of 393,403 stock options, 124,420 RSU\u2019s and 124,420 PSU\u2019s were granted. 166,048 options, 124,420 RSU\u2019s and 124,420 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2022 and June 2027. On or about May 28, 2020, the Group granted an LTIP plan consisting of 374,622 stock options, 119,244 RSU\u2019s and 119,244 PSU\u2019s. 179,724 options, 67,143 RSU\u2019s and 57,496 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2023 and June 2028. On or about May 27, 2021, the Group granted an LTIP plan consisting of 432,438 PSU\u2019s. 120,133 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The PSU\u2019s are exercisable between June 2024 and June 2029. During the period, the Group granted a new LTIP plan consisting of 611,477 PSU\u2019s. 125,673 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The PSU\u2019s are exercisable between March 2025 and March 2030. The Board of Directors of the Group has decided on June 1, 2015 to implement a full hedging program (total return swap) for the share-based payment arrangements starting July 1, 2015 and renewed on an annual basis. This program was not renewed in 2022. The following share-based payment arrangements were in existence during the current and prior years: Exercise Price per stock Weighted average Fair # stock options/ # stock options/ Expiry Date option (\u20ac) value (\u20ac) RSU's/PSU's RSU's/PSU's LTIP 2015 Options 2023 26.60 6.39 122,074 123,881 RSU's 2018 N/A 24.45 - - LTIP 2016 Options 2024 28.44 6.64 234,526 252,489 RSU's 2019 N/A 26.48 - - LTIP 2017 Options 2025 33.11 7.62 223,385 239,111 RSU's 2020 N/A 30.45 - - LTIP 2018 Options 2026 23.56 4.68 315,849 359,352 RSU's 2021 N/A 21.35 - - LTIP 2019 Options 2027 14.0 3.99 227,355 283,126 RSU's 2022 N/A 12.05 - 68,962 PSU's 2022 N/A 12.05 - 87,668 LTIP 2020 Options 2028 13.9 3.13 194,898 241,981 RSU's 2023 N/A 11.86 52,101 63,017 PSU's 2023 N/A 11.86 61,748 72,673 LTIP 2021 PSU's 2024 N/A 10.37 312,305 393,081 LTIP 2022 PSU's 2025 N/A 7.30 485,804 - Total outstanding stock options 1,318,087 1,656,616 Total outstanding RSU's 52,101 131,979 Total outstanding PSU's 859,857 553,422 The following reconciles the options and RSU\u2019s outstanding at the beginning and end of the year: Average exercise price per Stock options RSU's PSU's stock option (\u20ac)\u00b9 As at January 1, 2021 29.76 1,662,616 247,862 173,822 Granted - - - 432,438 Forfeited 14.08 (6,000) (13,891) (52,838) Exercised - - (101,992) - As at December 31, 2021 22.33 1,656,616 131,979 553,422 Granted - - - 611,477 Forfeited 18.73 (338,529) (16,738) (305,042) Exercised - - (63,140) - As at December 31, 2022 23.25 1,318,087 52,101 859,857 of which vested and exercisable - 1,123,189 - - 1 The average exercise price mentioned in the table above relates only to the stock options, as the RSU's and PSU\u2019s do not have an exercise price. The fair value of the stock options has been determined based on the Black&Scholes model. The expected volatility used in the model is based on the historical volatility of the Company. Below is an overview of all the parameters used in this model: LTIP 2015 LTIP 2016 LTIP 2017 LTIP 2018 LTIP 2019 LTIP 2020 LTIP 2021 LTIP 2022 Exercise Price (\u20ac) 26.60 28.44 33.11 23.56 14.00 13.90 - - Expected volatility of the shares (%) 26.32% 26.56% 27.12% 25.63% 37.98% 31.90% 43.12% 39.01% Expected dividends yield (%) 2.14% 1.98% 2.31% 2.70% 3.82% 4.00% 3.00% 4.10% Risk free interest rate (%) 1.02% 0.37% 0.60% 0.69% 0.10% -0.18% 0.00% 0.00% The fair value of the RSU\u2019s and PSU\u2019s has been determined by deducting from the exercise price the expected and discounted dividend flow, based on the same parameters as above. The total cost incurred regarding the existing share-based payment plans amounted to \u20ac1.1 million during 2022 and was included within employee benefit expenses. Social charges related to the LTIP are accrued for over the vesting period. 7.29. CONTINGENCIES The Group is involved in a number of environmental, contractual, product liability, intellectual property, employment and other claims and disputes incidental to our business. COFECE, the Mexican antitrust authority, conducted an investigation into our industry and confirmed Mabe and certain individuals committed antitrust violations on periods prior to the acquisition of Grupo PI Mabe, S.A. de C.V. (\u201cMabe\u201d) by Ontex; such decision is being appealed on grounds of unconstitutionality of the fines imposed. Based on the confirmed findings of the investigation (all related to pre-Ontex acquisition of Mabe) and in light of the contractual terms of the Mabe acquisition, the Group does not expect this to result in a net financial cost to it. State Sales Tax (ICMS), the State of Goias issued a decree determining Falcon Distribui\u00e7\u00e3o Armazenamento e Transportes S/A (Falcon) to pay a contribution to the Social Protection Fund of the State of Goias (PROTEGE). Falcon received a tax assessment, but filed a lawsuit against the Treasury office of the State of Goias and is currently awaiting the judgement by the court. The Group believes that there are good arguments to defend the case and as such the Group does not believe a loss is probable. The Group currently believes that the disposition of the claims and disputes, individually or in aggregate, should not have a material adverse effect on our consolidated financial condition, results of operations or liquidity. 7.30. COMMITMENTS 7.30.1. Capital commitments The Group has contracted expenditures for the acquisition of property, plant and equipment at December 31, 2022 of \u20ac21.6 million (2021: \u20ac18.9 million). The amount of 2021 has been adjusted to only reflect the continuing operations. 7.30.2. Bank guarantees As indicated in note 7.17 \u2018Interest-bearing debts\u2019, no assets are pledged as security for these borrowings. The entire amount of the Group\u2019s bank borrowings and accrued interest are secured according to collective pledge agreements. The Group has given bank guarantees for an amount of \u20ac19.5 million in order to participate in public tenders as at December 31, 2022 (2021: \u20ac18.7 million). 7.31. RELATED PARTY TRANSACTIONS As part of our business, Ontex has entered into several transactions with related parties. 7.31.1. Consolidated companies A list of subsidiaries is given in note 7.7 \u2018List of consolidated companies\u2019. 7.31.2. Relations with the shareholders There are no transactions with shareholders per December 31, 2022 (nor in 2021). 7.31.3. Relations with non-executive members of the Board of Directors Full Year in \u20ac million 2022 2021 Remuneration 1.6 1.4 7.31.4. Relations with the key management personnel Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Group. Key management for the Group are all the members of Management Committee. 7.31.5. Key management compensation Remuneration of the CEO Full Year in \u20ac million 2022 2021 Fixed and variable remuneration 2.0 1.6 Remuneration of the Executive Team (excluding the CEO) Full Year in \u20ac million 2022 2021 Fixed remuneration 3.0 4.5 Variable remuneration 1.3 1.5 Other remuneration 0.6 0.6 Total 4.9 6.6 The other remuneration relates mainly to post-employment benefit plans. For a more detailed breakdown, see the Remuneration report. The Company implemented Long-Term Incentive Plans (\u2018LTIP\u2019), which are based on a combination of stock options, restricted stock units and performance stock units (see note 7.28). The number of stock options, restricted stock units and performance stock units granted to the CEO and the Executive Management Team is summarized below: For the year ended December 31, 2022 Number of RSU's Number of PSU's Number of Stock Options LTIP 2018 CEO 14,921 - 75,114 Executive Team (excluding CEO) 47,478 - 239,016 LTIP 2019 CEO 18,414 18,414 64,610 Executive Team (excluding CEO) 53,376 53,376 171,928 LTIP 2020 CEO 19,891 19,891 88,333 Executive Team (excluding CEO) 56,265 56,265 249,870 LTIP 2021 CEO - 94,954 - Executive Team (excluding CEO) - 229,572 - LTIP 2022 CEO - 149,891 - Executive Team (excluding CEO) - 213,070 - 7.32. EVENTS AFTER THE END OF THE REPORTING PERIOD There were no significant events that occurred after the end of the reporting period. 7.33. AUDIT FEES Full Year in \u20ac thousands 2022 2021 Audit Fees 1,464.2 1,165.0 Additional Services rendered by the auditor's mandate: Audit related fees 192.5 363.7 Tax advisory & compliance services 45.2 30.0 Total 1,701.9 1,558.7 The fees in the above table concern the audit fees for the full Group and not only the continuing operations.", "dimensions": { "concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__23": { "value": "7.1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 7.1.1. Introduction The accounting policies used to prepare the consolidated financial statements for the period from January 1, 2022 to December 31, 2022 are consistent with those applied in the audited consolidated financial statements for the year ended December 31, 2021 of Ontex Group NV. The accounting policies have been consistently applied to all the periods presented. 7.1.2. Basis of preparation These consolidated financial statements of the Ontex Group NV for the year ended December 31, 2022 have been prepared in compliance with IFRS (\u201cInternational Financial Reporting Standards\u201d) as adopted by the European Union. These include all IFRS standards and IFRIC interpretations issued and effective as at December 31, 2022. The new standards, amendments to standards and interpretations that are mandatory for the first time for the financial year beginning January 1, 2022, did not have a significant impact. No new standards, amendments to standards or interpretations were early adopted. These financial statements are prepared on an accrual basis and on the assumption that the entity is in going concern and will continue in operation in the foreseeable future. The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the Group accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 7.4. IFRS accounting standards to be adopted as from 2022 and onwards The following relevant new standards and amendments to existing standards have been published and endorsed by the European Union and are mandatory for the first time for the financial periods beginning on or after January 1, 2022: Amendments to IFRS 3 Business Combinations update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. Amendments to IAS 16 Property, Plant and Equipment prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss. Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets specify which costs a company includes when assessing whether a contract will be loss-making. Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases. Amendment to IFRS 16 Leases Covid 19-Related Rent Concessions beyond 30 June 2021 (effective 01/04/2021), with early application permitted. The amendments extend, by one year, the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. In particular, the amendment permits a lessee to apply the practical expedient regarding COVID-19-related rent concessions to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022 (rather than only payments originally due on or before 30 June 2021). The amendment is effective for annual reporting periods beginning on or after 1 April 2021 (earlier application permitted, including in financial statements not yet authorized for issue at the date the amendment is issued). The above-mentioned standards did not have an impact on the financial statements. Relevant IFRS accounting pronouncements to be adopted as from 2023 onwards A number of new standards, amendments to existing standards and annual improvement cycles have been published and are mandatory for the first time for reporting periods beginning on or after January 1, 2023 and have not been early adopted. Those which may be the most relevant to the Ontex Group\u2019s consolidated financial statements are set out below, but are expected not to have a significant impact on the Ontex\u2019 consolidated financial statements. Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (effective 1 January 2023). The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies. The IAS 1 amendment requires companies to disclose their material accounting policy information rather than their significant accounting policies. Further, the amendment to IAS 1 clarifies that immaterial accounting policy information needs not be disclosed. To support this amendment, the Board also amended IFRS Practice Statement 2, \u2018Making Materiality Judgements\u2019, to provide guidance on how to apply the concept of materiality to accounting policy disclosures. Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (effective 1 January 2023). The amendment to IAS 8, \u2018Accounting Policies, Changes in Accounting Estimates and Errors\u2019, clarifies how companies should distinguish changes in accounting policies from changes in accounting estimates. Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (effective 1 January 2023). The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The main change in the amendments is an exemption from the initial recognition exemption of IAS 12.15(b) and IAS 12.24. Accordingly, the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition. The above mentioned standards are not expected to have a significant impact on the financial statements. Financial reporting in hyperinflationary economies In 2022, the Turkish economy faced further high inflation resulting in the three-year cumulative inflation of Turkey to exceed 100%, thereby triggering the requirement to transition to hyperinflation accounting as prescribed by IAS 29 Financial Reporting in Hyperinflationary Economies. IAS 29 requires to report the results of the company\u2019s operations in Turkey as if these were highly inflationary as of 1 January 2022. Under IAS 29, the non-monetary assets and liabilities stated at historical cost, the equity and the income statement of subsidiaries operating in hyperinflationary economies are restated for changes in the general purchasing power of the local currency applying a general price index. These re-measured accounts are used for conversion into euro at the period closing exchange rate. As a result, the statement of financial position and net results of subsidiaries operating in hyperinflation economies are stated in terms of the measuring unit current at the end of the reporting period. 7.1.3. Consolidation Subsidiaries Subsidiaries are all entities over which the Group has control. Control is established when the Group is exposed, or has the rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration agreement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired, liabilities assumed and contingent liabilities assumed in a business combination are measured initially at their fair values at acquisition date. On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interest in the acquiree at fair value or at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s net assets. The excess of the consideration of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the Group\u2019s share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary in the case of a bargain purchase, the difference is recognized directly in the income statement. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated but considered an impairment indicator of the asset transferred. Transactions with non-controlling interests The Group treats the transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of the net assets of the subsidiary is recorded in equity. Gains and losses on disposal to non-controlling interests are also recorded in equity. When the Group ceases to have control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequent accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. 7.1.4. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Separately recognized goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. The goodwill recognized in the statement of financial position is allocated to three Cash-Generating Units (CGUs). These CGUs are Europe, Russia and North America. They represent the lowest level within the entity at which the goodwill is monitored for internal management purposes. 7.1.5. Foreign currencies Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). The consolidated financial statements are presented in euro, which is the Group\u2019s presentation currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Foreign exchange gains and losses that relate to interest-bearing debts and cash and cash equivalents are presented in the income statement within \u2018Net finance cost\u2019. All other foreign exchange gains and losses are presented in the income statement within \u2018Other operating income/(expenses), net\u2019. For the purpose of presenting consolidated financial statements, assets and liabilities of the Group\u2019s foreign operations are translated at the closing rate at the end of the reporting period. Items of income and expense are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and equity items are translated at historical rates. The resulting exchange rate differences are recognized in other comprehensive income and accumulated in a separate component of equity. The principal exchange rates that have been used are as follows: December 31, 2022 December 31, 2021 Currency Closing Rate Av Rate Year Closing Rate Av Rate Year AUD 1.5693 1.5174 1.5615 1.5747 BRL 5.6386 5.4432 6.3101 6.3813 CZK 24.1160 24.5603 24.8580 25.6468 GBP 0.8869 0.8526 0.8403 0.8600 MXN 20.8560 21.2045 23.1438 23.9903 PLN 4.6808 4.6845 4.5969 4.5640 RUB 78.9950 74.0691 85.3004 87.2321 DZD 147.1816 150.2997 158.2669 160.2390 USD 1.0666 1.0539 1.1326 1.1835 7.1.6. Intangible assets An intangible asset is recognized on the statement of financial position when the following conditions are met: (1) the asset is identifiable, i.e. either separable (if it can be sold, transferred, licensed) or it results from contractual or legal rights; (2) it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group; (3) the Group can control the resource; and (4) the cost of the asset can be measured reliably. Intangible assets are carried at acquisition cost (including the costs directly attributable to the transaction) less any accumulated amortizations and less any accumulated impairment losses. Within the Group, internally generated intangibles represent IT projects and product/process development projects. Development costs that are directly attributable to the design and testing of identifiable and unique projects controlled by the Group are recognized as intangible assets when the following criteria are met: \u2022 it is technically feasible to complete the project so that it will be available for use \u2022 management intends to complete the project and use or sell it \u2022 there is an ability to use or sell the project \u2022 it can be demonstrated how the project will generate probable future economic benefits \u2022 adequate technical, financial and other resources to complete the development and to use or sell the project are available, and \u2022 the expenditure attributable to the project during its development can be reliably measured. The Group\u2019s systems allow a reliable measure of expenses directly attributable to the different IT and product/process development projects. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Externally acquired software is carried at acquisition cost less any accumulated amortization and less any accumulated impairment loss. Maintenance costs as well as the costs of minor upgrades whose objective is to maintain (rather than increase) the level of performance of the asset are expensed as incurred. Borrowing costs that are directly attributable to the acquisition, construction and or production of a qualifying intangible asset are capitalized as part of the cost of the asset. Intangible assets are amortized on a systematic basis over their useful life, using the straight-line method. The applicable useful lives are: Intangible assets Brands 20 years IT implementation costs 5 years Capitalized development costs 3 to 5 years Licenses 3 to 5 years Acquired concessions, patents, know-how, and other similar rights 5 years Amortization commences only when the asset is available for use. 7.1.7. Property, plant and equipment Property, plant and equipment are carried at acquisition cost less any accumulated depreciation and less any accumulated impairment loss. Acquisition cost includes any directly attributable cost of bringing the asset to working condition for its intended use. Borrowing costs that are directly attributable to the acquisition, construction and/or production of a qualifying asset are capitalized as part of the cost of the asset. Expenditure on repair and maintenance which serve only to maintain, but not increase, the value of fixed assets is charged to the income statement. However, expenditure on major repair and major maintenance, which increases the future economic benefits that will be generated by the fixed asset, is identified as a separate element of the acquisition cost. The cost of property, plant and equipment is broken down into major components. These major components, which are replaced at regular intervals and consequently have a useful life that is different from that of the fixed asset in which they are incorporated, are depreciated over their specific useful lives. In the event of replacement, the component is replaced and removed from the statement of financial position, and the new asset is depreciated up until the next major repair or maintenance. The depreciable amount is allocated on a systematic basis over the useful life of the asset, using the straight-line method. The depreciable amount is the acquisition cost, less residual value, if any. The applicable useful lives are: Property, plant and equipment Land N/A Land improvements and buildings 30 years Plants, machinery and equipment 10 to 15 years Furniture and vehicles 4 to 8 years Other tangible assets 5 years IT equipment 3 to 5 years The useful life of the machines is reviewed regularly. Each time a significant upgrade is performed, such upgrade extends the useful life of the machine. The cost of the upgrade is added to the carrying amount of the machine and the new carrying amount is depreciated prospectively over the remaining estimated useful life of the machine. 7.1.8. Leases The Group leases several properties, machinery, vehicles and IT equipment. Leases are recognized as a right-of-use asset and corresponding liability at the date of which the leased asset is available for use by the Group. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: \u2022 fixed payments (less any lease incentives), \u2022 variable lease payments that are based on an index or rate, \u2022 the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and \u2022 payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, or the Group\u2019s incremental borrowing rate, i.e. the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the remaining balance of the liability. Finance expenses are recognized immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalized. Right-of-use assets are measured at cost comprising the following: \u2022 the amount of the initial measurement of lease liability, \u2022 any lease payments made at or before the commencement date less any lease incentives received, \u2022 any initial direct costs, and \u2022 an estimate of the costs related to the dismantling and removal of the underlying asset. If it is reasonably certain that the Group will exercise a purchase option, the asset shall be depreciated on a straight-line basis over its useful life (see note 7.1.7). In all other circumstances the asset is depreciated on a straight-line basis over the shorter of the useful life of the asset or the lease term. For short-term leases (lease term of 12 months or less) or leases of low-value items (mainly IT equipment and small office furniture) to which the Group applies the recognition exemptions available in IFRS 16, lease payments are recognized on a straight-line basis as an expense over the lease term. Some property leases contain variable payment terms that are linked to the use of the property (mainly warehouses). Variable lease payments that depend on the use are recognized in profit or loss in the period in which the condition that triggers those payments occurs. 7.1.9. Impairment of non-financial assets, other than goodwill Intangible assets with indefinite useful lives and intangible assets not yet available for use are not subject to amortization, but are tested annually for impairment. Other assets which are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. 7.1.10. Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods and work in progress comprises the production costs, like raw materials, direct labor, and also the indirect production costs (production overheads based on normal operating capacity). Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Spare parts held by the Group are classified as property, plant and equipment if they are expected to be used in more than one period and if they are specific to a single machine. If they are not expected to be used in more than one period or if they can be used on several machines, they are classified as inventory. For the spare parts classified as inventory, the Group uses write-down rules based on the economic use of these spare parts. 7.1.11. Non-current assets held for sale and discontinued operations Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. A discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale, and which: \u2022 represents a separate major line of business or geographical area of operations; \u2022 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u2022 is a subsidiary acquired exclusively with a view to resale. 7.1.12. Revenue recognition Ontex Group\u2019s core activity is the sale of goods with as only performance obligation the delivery of goods. As such, the Group recognizes revenue at a point in time when control of the goods is transferred to the customer, generally on delivery of the goods. The Group sells its products to its customers directly, through distributors or agents. This can result in a different moment to recognize revenue. Following delivery to distributors, the distributor has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility when selling the goods and bears the risks of obsolescence and loss in relation to the goods. Next to the sale of goods, distinct services \u2013 mainly customer training or customer assistance services \u2013 are rendered predominantly over the period that the corresponding goods are sold to the customer. Transportation (shipping) is not be considered as a separate performance obligation as control over the goods is only transferred to the customer after the shipment. Payment terms can differ depending on the customer, based on the credit risk and prior payment behavior of the customer. In addition, the geographical location of the company and the customer have an effect on the payment terms. There are no significant financing components in the transaction prices and the considerations are paid in cash. Customer contracts include trade discounts or volume rebates, which are granted to the customer if the delivered quantities exceed a certain threshold. In these cases, the transaction price includes a variable consideration. The effect of the variable consideration on the transaction price is taken into account in revenue recognition by estimating the probability of the realization of the discount or rebate for each contract. Furthermore, the estimated variable consideration is included in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved (constraining the variable consideration). Furthermore, the Group considers all payments made to customers and whether these are related to the revenue generated from the customer. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. 7.1.13. Financial assets The Group classifies its financial assets in the following categories: financial assets at fair value and financial assets at amortized cost. The classification depends on the entity\u2019s business model for managing the financial assets and the contractual terms of the cash flows. Management determines the classification of its financial assets at initial recognition. Regular purchases and sales of financial assets are recognized on the trade date \u2013 the date on which the Group commits to purchase or sell an asset. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Financial assets (such as loans, trade and other receivables, cash and cash equivalents) are subsequently measured at amortized cost using the effective interest method, less any impairment if they are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Trade and other receivables after and within one year are recognized initially at fair value and subsequently measured at amortized cost, i.e. at the net present value of the receivable amount, using the effective interest rate method, less allowances for impairment. The Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost. For trade receivables, the Group applies the simplified approach permitted by IFRS 9 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables. The amount of the allowance is deducted from the carrying amount of the asset and is recognized in the income statement within \u2018Sales and marketing expenses\u2019. Trade receivables are no longer recognized when (1) the rights to receive cash flows from the trade receivables have expired, (2) the Group has transferred substantially all risks and rewards related to the receivables. The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of a financial asset other than in its entirety (e.g. when the Group retains an option to repurchase part of a transferred asset), the Group allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts. 7.1.14. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position. 7.1.15. Share capital Ordinary shares are classified as equity. Where any Group company purchases the company\u2019s equity share capital (treasury shares), the consideration paid is deducted from equity attributable to owners of the company until the shares are cancelled or reissued. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Financial instruments are either classified as financial liabilities or equity. The financial instrument is included in equity if, and only if, the instrument does not include a contractual obligation to deliver cash or another financial asset or to exchange financial assets or liabilities under conditions that are potentially unfavorable to the Group, and if the instrument will or may be settled in a fixed number of the Group\u2019s own equity instruments. 7.1.16. Government grants Grants from governments are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the assets to which they relate and are credited to the income statement on a straight-line basis over the expected lives of the related assets. 7.1.17. Employee benefits Short-term employee benefits Short-term employee benefits are recorded as an expense in the income statement in the period in which the services have been rendered. Any unpaid compensation is included in \u2018Employee benefit liabilities\u2019 in the statement of financial position. Post-employment benefits Group companies operate various pension schemes. Most of the schemes are unfunded. Some schemes are funded through payments to insurance companies or pension funds, determined by periodic actuarial calculations. The Group has both defined benefit and defined contribution plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise. Past-service costs are recognized immediately in income. The net interest cost relating to the defined benefit plans is recognized within financial expenses. For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. Long-term employee benefits Unfunded obligations arising from long-term benefits are provided for using the projected unit credit method. Termination benefits Early termination obligations are recognized as a liability when the Group is \u2018demonstrably committed\u2019 to terminating the employment before the normal retirement date. The Group is \u2018demonstrably committed\u2019 when, and only when, it has a detailed formal plan for the early termination without realistic possibility of withdrawal. Where such benefits are long term, they are discounted using the same rate as above for defined benefit obligations. 7.1.18. Share-based payments The Group operates an equity settled share-based compensation plan, consisting of stock options (hereafter \u2018options\u2019), restricted stock units (\u2018RSU\u2019) and performance stock units (\u2018PSU\u2019). For grants of options, RSU\u2019s and PSU\u2019s, the fair value of the employee services received is measured by reference to the fair value of the shares or options granted on the date of the grant. The Group recognizes the fair value of the services received in exchange for the grant of the options as an expense and a corresponding increase in equity on a straight-line basis over the vesting period. The fair value of the options granted is determined using option pricing models, which take into account the exercise price of the option, the share price at date of grant of the option, the risk-free interest rate, the expected volatility of the share price over the life of the option and other relevant factors. Vesting conditions included in the terms of the grant are not taken into account in estimating fair value except where those terms relate to market conditions. Non-market vesting conditions are considered by adjusting the number of shares or options included in the measurement of the cost of employee services so that ultimately the amount recognized in the income statement reflects the number of vested shares or options. At each statement of financial position date, the entity revises its estimates of the number of instruments that are expected to become exercisable and recognizes the impact of revision of original estimates, if any, in the income statement and a corresponding adjustment to equity over the remaining vesting period. When the instruments are exercised, the proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. The social security contributions payable in connection with the grant of the instruments is considered an integral part of the grant itself, and the charge will be treated as a cash-settled transaction. 7.1.19. Provisions Provisions are recognized when (1) the Group has a present legal or constructive obligation as a result of past events; (2) it is probable that an outflow of resources will be required to settle the obligation; and (3) the amount has been reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as finance cost. If the Group has an onerous contract, it will be recognized as a provision. Restructuring provisions comprise lease termination penalties and employee termination payments. Provisions are not recognized for future operating losses. A provision for restructuring is only recorded if the Group demonstrates a constructive obligation to restructure at the statement of financial position date. The constructive obligation should be demonstrated by: (a) a detailed formal plan identifying the main features of the restructuring; and (b) raising a valid expectation to those affected that it will carry out the restructuring by starting to implement the plan or by announcing its main features to those affected. 7.1.20. Income taxes Income tax expense represents the sum of the tax currently payable and deferred tax. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Group\u2019s subsidiaries operate and generate taxable income. In line with paragraph 46 of IAS 12 Income taxes, management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. This evaluation is made for tax periods open for audit by the competent authorities. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred tax is not recognized for: \u2022 the initial recognition of goodwill; and \u2022 the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is recognized on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax liabilities are generally recognized for taxable temporary differences. Deferred tax assets are generally recognized for tax losses and tax attributes to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred taxes are calculated at the level of each fiscal entity in the Group. The Group is able to offset deferred tax assets and liabilities only if the deferred tax balances relate to income taxes levied by the same taxation authority. 7.1.21. Financial liabilities Financial liabilities (including borrowings and trade and other payables) are classified as at amortized cost, except for derivative instruments (see 7.1.22 below). Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. When a financial liability measured at amortized cost is modified without this resulting in derecognition, a gain or loss is recognized in profit or loss. The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate. Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. 7.1.22. Derivative financial instruments The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate, foreign exchange rate and commodity price risks and equity price risks associated with share-based payments, including foreign exchange forward contracts, commodity hedging contracts and interest rate CAP\u2019s and SWAP\u2019s. Derivatives are accounted for in accordance with IFRS 9. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The fair values of various derivative instruments are disclosed in note 7.5 \u2018Financial Instruments and Financial Risk Management\u2019. The full fair value of a derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. If no hedge accounting is applied, the Group recognizes all gains or losses resulting from changes in fair value of derivatives in the consolidated income statement within Other operating income/expense to the extent that they relate to operating activities and within Net finance cost to the extent that they relate to the financing activities of the Group (e.g. interest rate swaps relating to the floating rate borrowings). 7.1.23. Hedge accounting The Group designates certain hedging instruments, which include derivatives in respect of foreign currency risk and commodities, as cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss and is included in the \u2018other operating income/(expense)' line item. Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the consolidated income statement as the recognized hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously recognized in other comprehensive income and accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss. 7.1.24. Operating segments The Group\u2019s activities are in one segment. There are no other significant classes of business, either singularly or in aggregate. The chief operating decision maker, the Board of Directors, reviews the operating results (defined as EBITDA) and operating plans, and make resource allocation decisions on a company-wide basis; therefore, the Group operates as one segment. 7.1.25. Statement of cash flows The cash flows of the Group are presented using the indirect method. This method reconciles the movement in cash for the reporting period by adjusting net profit of the year for any non-cash items and changes in working capital, and identifying investing and financing cash flows for the reporting period.", "dimensions": { "concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__17-1": { "value": "7.1.1. Introduction The accounting policies used to prepare the consolidated financial statements for the period from January 1, 2022 to December 31, 2022 are consistent with those applied in the audited consolidated financial statements for the year ended December 31, 2021 of Ontex Group NV. The accounting policies have been consistently applied to all the periods presented.7.1.2. Basis of preparation These consolidated financial statements of the Ontex Group NV for the year ended December 31, 2022 have been prepared in compliance with IFRS (\u201cInternational Financial Reporting Standards\u201d) as adopted by the European Union. These include all IFRS standards and IFRIC interpretations issued and effective as at December 31, 2022. The new standards, amendments to standards and interpretations that are mandatory for the first time for the financial year beginning January 1, 2022, did not have a significant impact. No new standards, amendments to standards or interpretations were early adopted. These financial statements are prepared on an accrual basis and on the assumption that the entity is in going concern and will continue in operation in the foreseeable future. The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the Group accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 7.4.7.1.3. Consolidation Subsidiaries Subsidiaries are all entities over which the Group has control. Control is established when the Group is exposed, or has the rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration agreement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired, liabilities assumed and contingent liabilities assumed in a business combination are measured initially at their fair values at acquisition date. On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interest in the acquiree at fair value or at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s net assets. The excess of the consideration of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the Group\u2019s share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary in the case of a bargain purchase, the difference is recognized directly in the income statement. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated but considered an impairment indicator of the asset transferred. Transactions with non-controlling interests The Group treats the transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of the net assets of the subsidiary is recorded in equity. Gains and losses on disposal to non-controlling interests are also recorded in equity. When the Group ceases to have control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequent accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__20": { "value": "7.1.2. Basis of preparation These consolidated financial statements of the Ontex Group NV for the year ended December 31, 2022 have been prepared in compliance with IFRS (\u201cInternational Financial Reporting Standards\u201d) as adopted by the European Union. These include all IFRS standards and IFRIC interpretations issued and effective as at December 31, 2022. The new standards, amendments to standards and interpretations that are mandatory for the first time for the financial year beginning January 1, 2022, did not have a significant impact. No new standards, amendments to standards or interpretations were early adopted. These financial statements are prepared on an accrual basis and on the assumption that the entity is in going concern and will continue in operation in the foreseeable future. The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the Group accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 7.4. IFRS accounting standards to be adopted as from 2022 and onwards The following relevant new standards and amendments to existing standards have been published and endorsed by the European Union and are mandatory for the first time for the financial periods beginning on or after January 1, 2022: Amendments to IFRS 3 Business Combinations update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. Amendments to IAS 16 Property, Plant and Equipment prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss. Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets specify which costs a company includes when assessing whether a contract will be loss-making. Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases. Amendment to IFRS 16 Leases Covid 19-Related Rent Concessions beyond 30 June 2021 (effective 01/04/2021), with early application permitted. The amendments extend, by one year, the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. In particular, the amendment permits a lessee to apply the practical expedient regarding COVID-19-related rent concessions to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022 (rather than only payments originally due on or before 30 June 2021). The amendment is effective for annual reporting periods beginning on or after 1 April 2021 (earlier application permitted, including in financial statements not yet authorized for issue at the date the amendment is issued). The above-mentioned standards did not have an impact on the financial statements. Relevant IFRS accounting pronouncements to be adopted as from 2023 onwards A number of new standards, amendments to existing standards and annual improvement cycles have been published and are mandatory for the first time for reporting periods beginning on or after January 1, 2023 and have not been early adopted. Those which may be the most relevant to the Ontex Group\u2019s consolidated financial statements are set out below, but are expected not to have a significant impact on the Ontex\u2019 consolidated financial statements. Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (effective 1 January 2023). The amendments aim to improve accounting policy disclosures and to help users of the financial statements to distinguish between changes in accounting estimates and changes in accounting policies. The IAS 1 amendment requires companies to disclose their material accounting policy information rather than their significant accounting policies. Further, the amendment to IAS 1 clarifies that immaterial accounting policy information needs not be disclosed. To support this amendment, the Board also amended IFRS Practice Statement 2, \u2018Making Materiality Judgements\u2019, to provide guidance on how to apply the concept of materiality to accounting policy disclosures. Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (effective 1 January 2023). The amendment to IAS 8, \u2018Accounting Policies, Changes in Accounting Estimates and Errors\u2019, clarifies how companies should distinguish changes in accounting policies from changes in accounting estimates. Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (effective 1 January 2023). The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The main change in the amendments is an exemption from the initial recognition exemption of IAS 12.15(b) and IAS 12.24. Accordingly, the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition. The above mentioned standards are not expected to have a significant impact on the financial statements. Financial reporting in hyperinflationary economies In 2022, the Turkish economy faced further high inflation resulting in the three-year cumulative inflation of Turkey to exceed 100%, thereby triggering the requirement to transition to hyperinflation accounting as prescribed by IAS 29 Financial Reporting in Hyperinflationary Economies. IAS 29 requires to report the results of the company\u2019s operations in Turkey as if these were highly inflationary as of 1 January 2022. Under IAS 29, the non-monetary assets and liabilities stated at historical cost, the equity and the income statement of subsidiaries operating in hyperinflationary economies are restated for changes in the general purchasing power of the local currency applying a general price index. These re-measured accounts are used for conversion into euro at the period closing exchange rate. As a result, the statement of financial position and net results of subsidiaries operating in hyperinflation economies are stated in terms of the measuring unit current at the end of the reporting period.", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__21-1": { "value": "These financial statements are prepared on an accrual basis and on the assumption that the entity is in going concern and will continue in operation in the foreseeable future.7.3. CAPITAL MANAGEMENT The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern in order to provide benefits for shareholders. The Group monitors capital on the basis of the net financial debt position and its leverage. The Group\u2019s net financial debt position is calculated by adding all short and long-term interest-bearing debts and by deducting the available short-term liquidity. The leverage is computed as the net financial debt divided by the LTM adjusted EBITDA (i.e. EBITDA plus EBITDA adjustments for the last twelve months (LTM)). The net financial debt and leverage of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 in \u20ac million Non-current interest-bearing debts 908.5 885.2 Current interest-bearing debts 167.6 87.0 Cash and cash equivalents (208.7) (246.7) Net Financial Debt 867.4 725.5 LTM Adjusted EBITDA 135.7 172.2 Net Financial Debt/LTM Adjusted EBITDA ratio 6.4 4.2 During 2022, the debt covenants related to the available credit facilities have been renegotiated and replaced by a liquidity covenant, which is further disclosed in note 7.4. 7.4.1. Liquidity situation The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. The \u20ac220.0 million term loan and the \u20ac250.0 million revolving credit facility, of which \u20ac115.0 million was utilized on December 31, 2022, are subject to debt covenants. For the full year 2022, these debt covenants have been renegotiated and replaced by a liquidity covenant which the Group complied with. For 2023, the liquidity covenant to be met on March 31 is defined as cash and cash equivalents plus the non-used portion of the revolving credit facility to exceed \u20ac200.0 million. The leverage covenants to be met at June 30, 2023 and December 31, 2023 are defined as the ratio of net financial debt over the last-twelve-months adjusted EBITDA not to exceed 4.75 and 3.75 respectively. Management has prepared detailed budgets and cash flow forecasts, which reflect the strategy of the Group. While there may be limited headroom on reaching the covenants, the Company is confident that it will meet them, reassured by the business performance so far in 2023, and the progress made in the divestment of the Mexican assets. The closing is expected in the second quarter and the proceeds will be used to pay back the \u20ac220.0 million term loan. Moreover, the Group is currently in discussions with the banks to discuss the revolving credit facility extension, currently maturing mid-2024, and will address conditions that meet the financing needs of the company. 7.5.8. Liquidity risk Group treasury monitors rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities (note 7.17 Interest-bearing debts) at all times so that the Group does not breach borrowing limits or covenants (where applicable) on its borrowing facilities. The table below analyzes the Group\u2019s financial liabilities (including interest payments) into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Less than Between 1 Between 2 Over 5 years in \u20ac million 1 year and 2 years and 5 years At December 31, 2022 Interest-bearing debts (34.0) (361.6) (611.0) - Lease liabilities (24.0) (20.3) (38.7) (60.2) Trade payables (405.3) - - - Total non-derivative financial liabilities (463.3) (381.9) (649.7) (60.2) Interest rate swaps (0.9) (0.9) - - Forward foreign exchange contracts (531.8) (12.0) - - Total derivative financial liabilities (532.7) (12.9) - - At December 31, 2021 Interest-bearing debts (28.5) (31.2) (857.0) (0.0) Lease liabilities (26.0) (22.1) (42.2) (40.4) Trade payables (532.6) - - - Total non-derivative financial liabilities (587.2) (53.3) (899.1) (40.4) Interest rate swaps (0.9) (0.9) (0.9) - Forward foreign exchange contracts (267.4) (11.3) - - Total derivative financial liabilities (268.3) (12.2) (0.9) - .7.17. INTEREST-BEARING DEBTS in \u20ac million December 31, 2022 December 31, 2021 Non-current Borrowings: 791.4 793.1 Senior Notes 573.8 572.1 Syndicated Term Loan A > 1 year 217.3 216.3 Other borrowings 0.2 4.6 Lease and other liabilities 100.4 92.1 Lease liabilities 100.4 92.1 Interest-bearing debts non-current 891.7 885.2 Current Borrowings: 125.4 56.4 Senior revolving Facility B 115.0 - Other borrowings - 14.8 Interests: Other borrowings 10.4 10.4 Total return swap - 31.2 Lease and other liabilities 20.0 30.6 Lease liabilities 20.0 21.5 Other financial liabilities (0.0) 9.1 Interest-bearing debts current 145.4 87.0 Total interest-bearing debts 1,037.1 972.2 All borrowings are denominated in \u20ac as of December 31, 2022. On June 23, 2021 the Group refinanced it\u2019s syndicated credit facilities agreement (Syndicated Term Loan A) for an amount of \u20ac220.0 million, and a revolving credit facility (Senior Revolving Facility B) in an amount of up to \u20ac250.0 million. In addition, it issued a 5-year High Yield Bond (\u2018Senior Notes\u2019) in an amount of \u20ac580.0 million with a coupon of 3.50%. The Syndicated Term Loan A of \u20ac 220.0 million due 2024 is carrying an interest rate of EURIBOR 3 months + margin of 3.90% (subject to the leverage). The Senior Revolving Facility due 2024 is carrying an interest rate of EURIBOR + margin of 3.60% (subject to the leverage), and was utilized for \u20ac115.0 million at closing 2022. On July 29, 2015, a full hedging program (total return swap) for the share-based payment arrangements (LTIP) was implemented. For more information, see note 7.5.6 and 7.28. This program was stopped in 2022. The following table reconciles the movements of the financial liabilities to the cash flows arising from financing activities: December 31, 2022 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 793.1 (0.4) - (0.8) (1.1) 2.6 793.4 (2.0) Lease and other liabilities 92.1 (25.0) 44.8 4.3 (1.6) 0.6 115.2 (14.8) Current interest-bearing debts - Borrowings 56.4 75.9 - 0.7 1.1 - 134.1 (8.7) Lease and other liabilities 30.6 1.0 - 0.2 1.6 0.0 33.5 (13.5) Total liabilities from financing activities 972.2 51.5 44.8 4.4 0.0 3.2 1,076.1 (39.0) Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 133.2 Repayment of borrowings (81.7) December 31, 2021 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 800.4 33.9 - (0.1) (48.2) 7.1 793.1 - Lease and other liabilities 111.0 (22.7) 7.2 1.3 0.2 (4.9) 92.1 - Current interest-bearing debts Borrowings 341.1 (341.9) - 0.2 48.2 8.8 56.4 - Lease and other liabilities 25.2 5.4 - 0.2 (0.2) - 30.6 - Total liabilities from financing activities 1,277.7 (325.3) 7.2 1.7 0.0 10.9 972.2 - Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 799.3 Repayment of borrowings (1,124.7) 7.17.1. Collateral for borrowings The Group is subject to regular information covenants, and certain financial ratios are monitored. At year-end 2022 and 2021, all covenants were met. No assets have been pledged in the context of the syndicated term loans. However, certain subsidiaries act as guarantors for these loans. For local borrowings, some machinery are pledged. 7.17.2. Other information Serenity SPA has a total of \u20ac62.0 million lines of credit available, of which \u20ac19.5 million has been used through the issuance of external bank guarantees: \u2022 \u20ac30.0 million from UniCredit \u2022 \u20ac25.0 million from UBI \u2022 \u20ac7.0 million from BNL A line of credit of AUD 1.0 million has been granted to Ontex Manufacturing Pty Ltd by Commonwealth Bank Australia, of which AUD 0.4 million has been used. For Ontex BV, a bank guarantee issued by BNL is in place for \u20ac2.5 million in favor of the Italian Custom Agency as at December 31, 2022. .", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__22-1": { "value": "Financial reporting in hyperinflationary economies In 2022, the Turkish economy faced further high inflation resulting in the three-year cumulative inflation of Turkey to exceed 100%, thereby triggering the requirement to transition to hyperinflation accounting as prescribed by IAS 29 Financial Reporting in Hyperinflationary Economies. IAS 29 requires to report the results of the company\u2019s operations in Turkey as if these were highly inflationary as of 1 January 2022. Under IAS 29, the non-monetary assets and liabilities stated at historical cost, the equity and the income statement of subsidiaries operating in hyperinflationary economies are restated for changes in the general purchasing power of the local currency applying a general price index. These re-measured accounts are used for conversion into euro at the period closing exchange rate. As a result, the statement of financial position and net results of subsidiaries operating in hyperinflation economies are stated in terms of the measuring unit current at the end of the reporting period.Hyperinflation In 2022, the Turkish economy faced further rapid inflation resulting in the three-year cumulative inflation of Turkey to exceed 100%, thereby triggering the requirement to transition to hyperinflation accounting as prescribed by IAS 29 Financial Reporting in Hyperinflationary Economies as of 1 January 2022. The main principle in IAS 29 is that the financial statements of an entity that reports in the currency of a hyperinflationary economy must be stated in terms of the measuring unit current at the end of the reporting period. Therefore, the non-monetary assets and liabilities stated at historical cost, the equity and the income statement of subsidiaries operating in hyperinflationary economies are restated for changes in the general purchasing power of the local currency applying a general price index. Monetary items that are already stated at the measuring unit at the end of the reporting period are not restated. These re-measured accounts are used for conversion into euro at the period closing exchange rate. Consequently, the Ontex Group has applied hyperinflation accounting for its Turkish subsidiaries in these financial statements applying the IAS 29 rules as follows: \u2022 Hyperinflation accounting was applied as of 1 January 2022; \u2022 Non-monetary assets and liabilities stated at historical cost (e.g. property plant and equipment, intangible assets, goodwill, etc.) and equity of Turkey were restated using official Consumer Price index published by the Turkish Statistic Institute TUIK. The hyperinflation impacts resulting from changes in the general purchasing power until 31 December 2021 were reported in retained earnings and the impacts of changes in the general purchasing power from 1 January 2022 are reported through the income statement on a dedicated account for hyperinflation monetary adjustments in the finance line. This impact in 2022 amounted to \u20ac9.7m. The CPI index at 31 December 2022 amounted to 1,128.45 which means an increase of 64% versus 31 December 2021; \u2022 The income statement is adjusted at the end of each reporting period using the change in the consumer price index and is converted at the closing exchange rate of each period (rather than the year to date average rate for non-hyperinflationary economies). This impact in 2022 amounted to \u20ac0.4m; \u2022 The prior year income statement and statement of financial position were not restated. In 2022, the Turkish operations represented 12.2% of the company\u2019s revenue from discontinued operations. The hyperinflation impact on the net assets held for sale presented above of \u20ac404.4 million, amounts to \u20ac29.0 million. As indicated above, this subsequently has lead to an impairment on goodwill of the Turkish business for \u20ac33.2 million. .", "dimensions": { "concept": "ifrs-full:DisclosureOfHyperinflationaryReportingExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__24": { "value": "Subsidiaries Subsidiaries are all entities over which the Group has control. Control is established when the Group is exposed, or has the rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration agreement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired, liabilities assumed and contingent liabilities assumed in a business combination are measured initially at their fair values at acquisition date. On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interest in the acquiree at fair value or at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s net assets. The excess of the consideration of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the Group\u2019s share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary in the case of a bargain purchase, the difference is recognized directly in the income statement. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated but considered an impairment indicator of the asset transferred. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__25": { "value": "Transactions with non-controlling interests The Group treats the transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of the net assets of the subsidiary is recorded in equity. Gains and losses on disposal to non-controlling interests are also recorded in equity. When the Group ceases to have control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequent accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__131-1": { "value": "7.1.4. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Separately recognized goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. The goodwill recognized in the statement of financial position is allocated to three Cash-Generating Units (CGUs). These CGUs are Europe, Russia and North America. They represent the lowest level within the entity at which the goodwill is monitored for internal management purposes.7.1.6. Intangible assets An intangible asset is recognized on the statement of financial position when the following conditions are met: (1) the asset is identifiable, i.e. either separable (if it can be sold, transferred, licensed) or it results from contractual or legal rights; (2) it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group; (3) the Group can control the resource; and (4) the cost of the asset can be measured reliably. Intangible assets are carried at acquisition cost (including the costs directly attributable to the transaction) less any accumulated amortizations and less any accumulated impairment losses. Within the Group, internally generated intangibles represent IT projects and product/process development projects. Development costs that are directly attributable to the design and testing of identifiable and unique projects controlled by the Group are recognized as intangible assets when the following criteria are met: \u2022 it is technically feasible to complete the project so that it will be available for use \u2022 management intends to complete the project and use or sell it \u2022 there is an ability to use or sell the project \u2022 it can be demonstrated how the project will generate probable future economic benefits \u2022 adequate technical, financial and other resources to complete the development and to use or sell the project are available, and \u2022 the expenditure attributable to the project during its development can be reliably measured. The Group\u2019s systems allow a reliable measure of expenses directly attributable to the different IT and product/process development projects. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Externally acquired software is carried at acquisition cost less any accumulated amortization and less any accumulated impairment loss. Maintenance costs as well as the costs of minor upgrades whose objective is to maintain (rather than increase) the level of performance of the asset are expensed as incurred. Borrowing costs that are directly attributable to the acquisition, construction and or production of a qualifying intangible asset are capitalized as part of the cost of the asset. Intangible assets are amortized on a systematic basis over their useful life, using the straight-line method. The applicable useful lives are: Intangible assets Brands 20 years IT implementation costs 5 years Capitalized development costs 3 to 5 years Licenses 3 to 5 years Acquired concessions, patents, know-how, and other similar rights 5 years Amortization commences only when the asset is available for use.7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions.7.4.5. Expected useful lives The expected useful lives of the property, plant and equipment and intangible assets must be estimated. The determination of the useful lives of the assets is based on management\u2019s judgment and it is reviewed at least at each financial year-end, pursuant to IAS 16 and IAS 38.7.9. GOODWILL AND INTANGIBLE ASSETS IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2022 Opening net book amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 Hyperinflation opening net book amount 9.5 0.0 0.0 0.0 0.0 9.5 Restated opening net book amount 1,049.4 15.4 1.7 19.2 9.5 1,095.2 Additions 0.0 0.0 0.2 6.7 4.5 11.3 Transfers 0.0 0.0 3.7 0.9 (4.5) 0.1 Reclassified as held for sale (170.6) (15.4) 0.0 0.0 0.2 (185.8) Amortization expense 0.0 0.0 (1.3) (7.9) 0.0 (9.2) Impairment (84.1) 0.0 (0.2) 0.0 0.0 (84.3) Exchange differences 3.2 (0.0) 0.0 (0.0) 0.0 3.2 Closing carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 At December 31, 2022 Cost 862.6 0.0 9.4 67.5 23.7 963.4 Accumulated amortization and impairment (64.7) (0.0) (5.3) (48.6) (14.1) (132.7) Carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2021 Opening net book amount 1,106.7 23.2 3.7 20.8 5.8 1,160.2 Additions 0.0 0.0 0.1 7.0 5.2 12.3 Transfers 0.0 0.0 1.1 0.1 (0.9) 0.3 Disposals 0.0 0.0 (0.1) (0.0) 0.0 (0.1) Amortization expense 0.0 (1.6) (1.0) (8.2) (0.0) (10.8) Impairment (66.1) (7.1) (2.1) (0.5) (0.5) (76.3) Exchange differences (0.7) 0.8 0.0 (0.0) 0.0 0.1 Closing carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 At December 31, 2021 Cost 1,106.8 31.2 5.5 62.2 23.7 1,229.3 Accumulated amortization and impairment (66.9) (15.8) (3.8) (43.0) (14.1) (143.6) Carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 The decrease compared to prior year is mostly due to the reclassification to assets held for sale. Brands in 2021 represent the capitalization of some of the brands acquired through the acquisitions of Grupo Mabe and Ontex Brazil. The impairment recognized in 2021 resulted mainly from the goodwill impairment test carried out on the Brazilian business. Capitalized IT implementation costs represent internally developed and externally purchased software for own use. The impairment recognized in 2022 results mainly from the goodwill impairment test carried out on the Russian business, see below for more information. The amortization expense is included in the captions of the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of sales 0.1 0.0 General and administrative expenses 9.1 8.5 Total amortization expense 9.2 8.6 * The amortization expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac2.2 million. The Group incurred \u20ac11.8 million of research and development expenses in 2022 (2021: \u20ac8.7 million) that has been recorded under the caption \u2018General and administrative expenses\u2019. No intangible assets have been pledged in the context of financial liabilities. 7.9.1. Goodwill History At the end of 2010, Ontex was acquired from Candover by Goldman Sachs Capital Partners and TPG Capital, both holding 50% of the shares of the new Ontex top-holding company. At the time of the acquisition, the net assets of Ontex were negative which resulted in the generation of goodwill of \u20ac841.5 million. In 2013, Ontex acquired Serenity, a company operating in the adult incontinence market in Italy. This acquisition resulted tin the recognition of a goodwill of \u20ac18.6 million. In February 2016, Ontex acquired Grupo Mabe, a leading Mexican manufacturer of disposable personal hygiene products. This major acquisition resulted in the recognition of a goodwill for \u20ac236.1 million, which was denominated in Mexican peso and US dollars. In March 2017, Ontex has completed the acquisition of the personal hygiene business of Hypermarcas (renamed to \u201cOntex Brazil\u201d). This resulted in a goodwill of \u20ac128.3 million, which was denominated in Brazilian real. Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. Following this strategy, \u20ac170.6 million of goodwill was reclassified to assets held for sale. Goodwill impairment Considering the renewed strategy of the Group to refocus its activities on Europe and North America, the Group has reviewed the cash-generating units and has determined the following cash-generating units for the purpose of the goodwill impairment testing: \u2022 Europe \u2022 Russia \u2022 North America Annual impairment reviews are performed during the fourth quarter of each year for all CGUs, except if there would be factors indicating a risk for impairment loss. These reviews compare the carrying value of each CGU with the recoverable amount of the CGU\u2019s assets calculated using a discounted cash flow model. If the recoverable amount is less than the carrying value of the CGU, an impairment loss is recognized immediately in the income statement. Due to the current economic performance of the Group and the modified strategy, the Group has performed an impairment test on a more frequent basis during 2022. The test at half year 2022 revealed that an impairment loss should be recognized on the CGU \u201cRussia\u201d. The test at year-end did not lead to any additional impairment. The judgments and estimates considered in the context of the impairment tests are disclosed in note 7.4.4. Goodwill allocated to the CGUs as at December 31 was as follows: in \u20ac million 2022 2021 Europe 743.1 818.0 North & Central America N/A 205.1 North America 54.9 N/A Middle East, Africa & Asia N/A 16.7 Goodwill allocated to the CGU's 797.9 1,039.9 As mentioned above, the test carried out at half year 2022 resulted in the recognition of an impairment loss of \u20ac84.1 million on the CGU \u201cRussia\u201d reflecting the revised strategy and forecasts. The impairment loss of \u20ac84.1 million has been entirely allocated to goodwill. The recoverable amount of a CGU is determined by means of value-in-use calculations. These calculations are based on pre-tax cash flow projections (prepared in euros) using key parameters from the consolidated financial budget approved by Ontex\u2019 Board of Directors and the Group\u2019s Strategic Plan through 2025. Cash flows in 2026 are determined based on the average growth rate in the Group\u2019s Strategic Plan through 2025. Cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. The key assumptions for the value-in-use calculations used to determine the recoverable amount are those regarding the discount rates, estimated changes to selling prices, product offerings, direct costs, operating margins and terminal growth rates. Climate-related matters were considered but did not have a material impact on the value-in-use calculation as explained in the Non-Financial Statements. The discount rate is a measure based on industry average weighted cost of capital and risk-free rates weighted for the different regions in which the CGU\u2019s are operating. Changes in selling practices and direct costs are based on past practices and expectations of future changes in the market. The calculation uses cash flow projections based on key parameters from the consolidated financial budget approved by the Board of Directors, the Group\u2019s Strategic Plan through 2025, and pre-tax discount rates for each CGU as described in note 7.4.4 Impairment based on current market assessments of the time value of money and the risks specific to the Group. The development of the financial budget and Strategic Plan relies on a number of assumptions, including: \u2022 The market growth, the evolution of the Group\u2019s market share, competitive landscape and innovation trends in the different markets as well as strategic initiatives. \u2022 The product mix. \u2022 The expected evolution of various direct and indirect expenses. \u2022 The estimated future capital expenditure. The assumptions were derived mainly from: \u2022 Available historic data. \u2022 External market research. \u2022 Internal market expectations based on trend reports, etc. The key assumptions used are reviewed and updated on a yearly basis by the Group\u2019s management. Taking into account the excess of the cash-generating unit\u2019s recoverable amount over its carrying amount, and based on sensitivity testing performed, management is of the opinion that any reasonably possible changes in key assumptions on which the recoverable amount is based would not cause the carrying amount to exceed the recoverable amount at December 31, 2022. The Group has performed a sensitivity analysis by reducing the risk-adjusted cash flow projections and by increasing the pre-tax discount rate as disclosed in note 7.4.4 Impairment. ", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__130-1": { "value": "7.1.4. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Separately recognized goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. The goodwill recognized in the statement of financial position is allocated to three Cash-Generating Units (CGUs). These CGUs are Europe, Russia and North America. They represent the lowest level within the entity at which the goodwill is monitored for internal management purposes.7.9. GOODWILL AND INTANGIBLE ASSETS IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2022 Opening net book amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 Hyperinflation opening net book amount 9.5 0.0 0.0 0.0 0.0 9.5 Restated opening net book amount 1,049.4 15.4 1.7 19.2 9.5 1,095.2 Additions 0.0 0.0 0.2 6.7 4.5 11.3 Transfers 0.0 0.0 3.7 0.9 (4.5) 0.1 Reclassified as held for sale (170.6) (15.4) 0.0 0.0 0.2 (185.8) Amortization expense 0.0 0.0 (1.3) (7.9) 0.0 (9.2) Impairment (84.1) 0.0 (0.2) 0.0 0.0 (84.3) Exchange differences 3.2 (0.0) 0.0 (0.0) 0.0 3.2 Closing carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 At December 31, 2022 Cost 862.6 0.0 9.4 67.5 23.7 963.4 Accumulated amortization and impairment (64.7) (0.0) (5.3) (48.6) (14.1) (132.7) Carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2021 Opening net book amount 1,106.7 23.2 3.7 20.8 5.8 1,160.2 Additions 0.0 0.0 0.1 7.0 5.2 12.3 Transfers 0.0 0.0 1.1 0.1 (0.9) 0.3 Disposals 0.0 0.0 (0.1) (0.0) 0.0 (0.1) Amortization expense 0.0 (1.6) (1.0) (8.2) (0.0) (10.8) Impairment (66.1) (7.1) (2.1) (0.5) (0.5) (76.3) Exchange differences (0.7) 0.8 0.0 (0.0) 0.0 0.1 Closing carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 At December 31, 2021 Cost 1,106.8 31.2 5.5 62.2 23.7 1,229.3 Accumulated amortization and impairment (66.9) (15.8) (3.8) (43.0) (14.1) (143.6) Carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7Brands in 2021 represent the capitalization of some of the brands acquired through the acquisitions of Grupo Mabe and Ontex Brazil. The impairment recognized in 2021 resulted mainly from the goodwill impairment test carried out on the Brazilian business.7.9.1. Goodwill History At the end of 2010, Ontex was acquired from Candover by Goldman Sachs Capital Partners and TPG Capital, both holding 50% of the shares of the new Ontex top-holding company. At the time of the acquisition, the net assets of Ontex were negative which resulted in the generation of goodwill of \u20ac841.5 million. In 2013, Ontex acquired Serenity, a company operating in the adult incontinence market in Italy. This acquisition resulted tin the recognition of a goodwill of \u20ac18.6 million. In February 2016, Ontex acquired Grupo Mabe, a leading Mexican manufacturer of disposable personal hygiene products. This major acquisition resulted in the recognition of a goodwill for \u20ac236.1 million, which was denominated in Mexican peso and US dollars. In March 2017, Ontex has completed the acquisition of the personal hygiene business of Hypermarcas (renamed to \u201cOntex Brazil\u201d). This resulted in a goodwill of \u20ac128.3 million, which was denominated in Brazilian real. Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. Following this strategy, \u20ac170.6 million of goodwill was reclassified to assets held for sale. Goodwill impairment Considering the renewed strategy of the Group to refocus its activities on Europe and North America, the Group has reviewed the cash-generating units and has determined the following cash-generating units for the purpose of the goodwill impairment testing: \u2022 Europe \u2022 Russia \u2022 North America Annual impairment reviews are performed during the fourth quarter of each year for all CGUs, except if there would be factors indicating a risk for impairment loss. These reviews compare the carrying value of each CGU with the recoverable amount of the CGU\u2019s assets calculated using a discounted cash flow model. If the recoverable amount is less than the carrying value of the CGU, an impairment loss is recognized immediately in the income statement. Due to the current economic performance of the Group and the modified strategy, the Group has performed an impairment test on a more frequent basis during 2022. The test at half year 2022 revealed that an impairment loss should be recognized on the CGU \u201cRussia\u201d. The test at year-end did not lead to any additional impairment. The judgments and estimates considered in the context of the impairment tests are disclosed in note 7.4.4. Goodwill allocated to the CGUs as at December 31 was as follows: in \u20ac million 2022 2021 Europe 743.1 818.0 North & Central America N/A 205.1 North America 54.9 N/A Middle East, Africa & Asia N/A 16.7 Goodwill allocated to the CGU's 797.9 1,039.9 As mentioned above, the test carried out at half year 2022 resulted in the recognition of an impairment loss of \u20ac84.1 million on the CGU \u201cRussia\u201d reflecting the revised strategy and forecasts. The impairment loss of \u20ac84.1 million has been entirely allocated to goodwill. The recoverable amount of a CGU is determined by means of value-in-use calculations. These calculations are based on pre-tax cash flow projections (prepared in euros) using key parameters from the consolidated financial budget approved by Ontex\u2019 Board of Directors and the Group\u2019s Strategic Plan through 2025. Cash flows in 2026 are determined based on the average growth rate in the Group\u2019s Strategic Plan through 2025. Cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. The key assumptions for the value-in-use calculations used to determine the recoverable amount are those regarding the discount rates, estimated changes to selling prices, product offerings, direct costs, operating margins and terminal growth rates. Climate-related matters were considered but did not have a material impact on the value-in-use calculation as explained in the Non-Financial Statements. The discount rate is a measure based on industry average weighted cost of capital and risk-free rates weighted for the different regions in which the CGU\u2019s are operating. Changes in selling practices and direct costs are based on past practices and expectations of future changes in the market. The calculation uses cash flow projections based on key parameters from the consolidated financial budget approved by the Board of Directors, the Group\u2019s Strategic Plan through 2025, and pre-tax discount rates for each CGU as described in note 7.4.4 Impairment based on current market assessments of the time value of money and the risks specific to the Group. The development of the financial budget and Strategic Plan relies on a number of assumptions, including: \u2022 The market growth, the evolution of the Group\u2019s market share, competitive landscape and innovation trends in the different markets as well as strategic initiatives. \u2022 The product mix. \u2022 The expected evolution of various direct and indirect expenses. \u2022 The estimated future capital expenditure. The assumptions were derived mainly from: \u2022 Available historic data. \u2022 External market research. \u2022 Internal market expectations based on trend reports, etc. The key assumptions used are reviewed and updated on a yearly basis by the Group\u2019s management. Taking into account the excess of the cash-generating unit\u2019s recoverable amount over its carrying amount, and based on sensitivity testing performed, management is of the opinion that any reasonably possible changes in key assumptions on which the recoverable amount is based would not cause the carrying amount to exceed the recoverable amount at December 31, 2022. The Group has performed a sensitivity analysis by reducing the risk-adjusted cash flow projections and by increasing the pre-tax discount rate as disclosed in note 7.4.4 Impairment. 7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions.Disposal group classified as held for sale Upon reclassification as held for sale, total impairment losses on goodwill of \u20ac60.0 million have been recognized to present the net assets at the lower of the carrying amount and the fair value less costs of disposal. At December 31, 2022, additional impairment losses on goodwill of \u20ac48.9 million have been recognized based on a comparison of the expected proceeds of disposal less costs to sell versus the carrying amount of the related net assets. \u20ac33.2 million of the impairment is related to the impact of the application of Hyperinflation on the Turkish carrying net assets, which increased with \u20ac29.0 million.7.24.2. Income and expenses related to impairments and major litigations Impairment of assets In 2022, the impairment losses mainly include the impairment of goodwill related to the Russian business (\u20ac84.1 million) and also some impairment losses on idle machinery. In 2021, the impairment losses mainly include the impairment losses on idle machinery. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__129-1": { "value": "7.1.4. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Separately recognized goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. The goodwill recognized in the statement of financial position is allocated to three Cash-Generating Units (CGUs). These CGUs are Europe, Russia and North America. They represent the lowest level within the entity at which the goodwill is monitored for internal management purposes.7.4.3. Business combinations For business combinations, the Group must make assumptions and estimates to determine the purchase price allocation of the business being acquired. To do so, the Group must determine the acquisition-date fair value of the identifiable assets acquired and liabilities assumed. These assumptions and estimates have an impact on the asset and liability amounts recorded in the Consolidated Statement of Financial Position on the acquisition date. In addition, the estimated useful lives of the acquired property, plant and equipment, the identification of other intangible assets and the determination of the indefinite or finite useful lives of other intangible assets acquired requires significant judgments and will have an impact on the Group\u2019s profit or loss.", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__28-1": { "value": "7.1.4. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Separately recognized goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. The goodwill recognized in the statement of financial position is allocated to three Cash-Generating Units (CGUs). These CGUs are Europe, Russia and North America. They represent the lowest level within the entity at which the goodwill is monitored for internal management purposes.7.1.6. Intangible assets An intangible asset is recognized on the statement of financial position when the following conditions are met: (1) the asset is identifiable, i.e. either separable (if it can be sold, transferred, licensed) or it results from contractual or legal rights; (2) it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group; (3) the Group can control the resource; and (4) the cost of the asset can be measured reliably. Intangible assets are carried at acquisition cost (including the costs directly attributable to the transaction) less any accumulated amortizations and less any accumulated impairment losses. Within the Group, internally generated intangibles represent IT projects and product/process development projects. Development costs that are directly attributable to the design and testing of identifiable and unique projects controlled by the Group are recognized as intangible assets when the following criteria are met: \u2022 it is technically feasible to complete the project so that it will be available for use \u2022 management intends to complete the project and use or sell it \u2022 there is an ability to use or sell the project \u2022 it can be demonstrated how the project will generate probable future economic benefits \u2022 adequate technical, financial and other resources to complete the development and to use or sell the project are available, and \u2022 the expenditure attributable to the project during its development can be reliably measured. The Group\u2019s systems allow a reliable measure of expenses directly attributable to the different IT and product/process development projects. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Externally acquired software is carried at acquisition cost less any accumulated amortization and less any accumulated impairment loss. Maintenance costs as well as the costs of minor upgrades whose objective is to maintain (rather than increase) the level of performance of the asset are expensed as incurred. Borrowing costs that are directly attributable to the acquisition, construction and or production of a qualifying intangible asset are capitalized as part of the cost of the asset. Intangible assets are amortized on a systematic basis over their useful life, using the straight-line method. The applicable useful lives are: Intangible assets Brands 20 years IT implementation costs 5 years Capitalized development costs 3 to 5 years Licenses 3 to 5 years Acquired concessions, patents, know-how, and other similar rights 5 years Amortization commences only when the asset is available for use.7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__27-1": { "value": "7.1.4. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Separately recognized goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. The goodwill recognized in the statement of financial position is allocated to three Cash-Generating Units (CGUs). These CGUs are Europe, Russia and North America. They represent the lowest level within the entity at which the goodwill is monitored for internal management purposes.7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__26-1": { "value": "7.1.4. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Separately recognized goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. The goodwill recognized in the statement of financial position is allocated to three Cash-Generating Units (CGUs). These CGUs are Europe, Russia and North America. They represent the lowest level within the entity at which the goodwill is monitored for internal management purposes.7.4.3. Business combinations For business combinations, the Group must make assumptions and estimates to determine the purchase price allocation of the business being acquired. To do so, the Group must determine the acquisition-date fair value of the identifiable assets acquired and liabilities assumed. These assumptions and estimates have an impact on the asset and liability amounts recorded in the Consolidated Statement of Financial Position on the acquisition date. In addition, the estimated useful lives of the acquired property, plant and equipment, the identification of other intangible assets and the determination of the indefinite or finite useful lives of other intangible assets acquired requires significant judgments and will have an impact on the Group\u2019s profit or loss.7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__29": { "value": "7.1.5. Foreign currencies Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). The consolidated financial statements are presented in euro, which is the Group\u2019s presentation currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__148-1": { "value": "Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Foreign exchange gains and losses that relate to interest-bearing debts and cash and cash equivalents are presented in the income statement within \u2018Net finance cost\u2019. All other foreign exchange gains and losses are presented in the income statement within \u2018Other operating income/(expenses), net\u2019. For the purpose of presenting consolidated financial statements, assets and liabilities of the Group\u2019s foreign operations are translated at the closing rate at the end of the reporting period. Items of income and expense are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and equity items are translated at historical rates. The resulting exchange rate differences are recognized in other comprehensive income and accumulated in a separate component of equity. The principal exchange rates that have been used are as follows: December 31, 2022 December 31, 2021 Currency Closing Rate Av Rate Year Closing Rate Av Rate Year AUD 1.5693 1.5174 1.5615 1.5747 BRL 5.6386 5.4432 6.3101 6.3813 CZK 24.1160 24.5603 24.8580 25.6468 GBP 0.8869 0.8526 0.8403 0.8600 MXN 20.8560 21.2045 23.1438 23.9903 PLN 4.6808 4.6845 4.5969 4.5640 RUB 78.9950 74.0691 85.3004 87.2321 DZD 147.1816 150.2997 158.2669 160.2390 USD 1.0666 1.0539 1.1326 1.18357.5.3. Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the British pound (GBP), the Polish zloty (PLN), the Australian dollar (AUD) and Russian ruble (RUB) in relation to sales, and the US dollar (USD) and the Czech koruna (CZK) in relation to procurement. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities. The Group also has exposures to the Russian ruble (RUB), Czech koruna (CZK) and Australian dollar (AUD) due to their net investments in foreign operations. For the year ended December 31, 2022, only continuing operations are enclosed. The carrying amounts of the Group's main foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows: Assets Liabilities in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 EUR 1,879.9 1,775.9 2,765.6 2,566.0 USD 132.7 165.9 154.3 212.5 PLN 85.7 100.9 49.7 61.5 GBP 67.0 98.3 42.6 53.6 RUB 30.9 27.1 4.8 4.4 CZK 27.0 28.4 20.9 18.6 AUD 25.4 38.0 17.2 17.4 BRL 0.0 48.7 0.0 43.8 MXN 0.0 51.2 14.0 47.0 DZD 0.0 21.6 0.0 0.3 The Group monitors its foreign exchange exposure closely and will enter into hedging transactions if deemed appropriate to minimize exposure throughout the Group to foreign exchange fluctuations. All hedging decisions are subject to approval of the Board of Directors. The strategy regarding FX hedges was maintained. To manage their foreign exchange risk arising from future commercial transactions, recognized assets and liabilities, the Group uses forward exchange contracts. Foreign exchange risk arises when future commercial transactions, recognized assets and liabilities are denominated in a currency that is not the entity\u2019s functional currency. The Group treasury is responsible for optimizing the net position in each foreign currency when possible and appropriate. The Group applies hedge accounting for the hedge related transactions, the impact of the revaluation is recognized in other comprehensive income. The Group has entered into foreign exchange forward contracts in 2022 maturing at the latest in March 2024 in order to limit volatility in the business resulting from exposures to sales in British pound, Polish zloty, Australian dollar as well as purchases in US dollar and Czech crown during 2023. Based on the hedge strategy, the foreign exchange forward contracts hedge the following forecasted exposures until December 31, 2023: for British pound (GBP) 76.0 million, for Polish zloty (PLN) 310.2 million, for Australian dollar (AUD) 23.1 million, for Czech crown (CZK) 870.2 million, for US dollar (USD) 73.1 million versus EUR and US dollar (USD) 18.2 million versus Czech crown (CZK). The terms of the foreign currency forward contracts have been negotiated to match the terms of the highly probable forecast transactions. The Group applies hedge accounting to the foreign currency forward contracts. The changes in the fair value of these hedging instruments, designated as effective instruments in a cash flow hedge, are recognized in OCI until the moment the transaction occurs. At the moment the transaction leads to the recognition of a trade receivable or a trade payable, this cash flow hedge reserve including the changes in fair value of the hedging instrument is included in P&L where it adjusts revenue/costs or, if the transaction leads to the recognition of a non-financial asset or non-financial liability, as an adjustment of the carrying amount of the asset and liability. Further changes in the hedging instrument are recognized in P&L together with the changes in the trade receivables or payables. For the year ended December 31, 2022, an unrealized loss of \u20ac14.1 million (mainly Mexican peso versus EUR for 11.1 million and US dollar versus EUR for 2.4 million) has been recognized in other comprehensive income, offset by an unrealized gain of \u20ac3.8 million (British pound mainly). As of December 31, 2022, the fair value of the derivative financial asset for the foreign exchange contracts amounted to \u20ac4.4 million (2021: \u20ac4.1 million) and of the derivative financial liability amounted to \u20ac13.8 million (2021: \u20ac2.3 million). An amount of \u20ac0.4 million was reclassified to P&L (loss) during 2022. The following table sets forth the impact on pre-tax profit and equity for the year of a 10% weakening/strengthening of the Euro against the reported currency with all other variables held constant. The impact is mainly as a result of foreign exchange gains/losses on translation of foreign currency denominated trade receivables and payables and related derivative positions as at the respective statement of financial position dates. 10% weakening of the EUR 10% strengthening of the EUR 2022 2021* 2022 2021* in \u20ac million Impact on P&L Impact on Equity Impact on P&L Impact on equity AUD (0.2) (1.4) (0.2) 0.2 1.2 0.1 GBP (0.9) (8.5) (0.9) 0.8 7.0 0.7 PLN (0.8) (6.5) (0.8) 0.7 5.3 0.6 USD (1.9) 4.5 (1.3) 1.6 (3.5) 1.1 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations7.5.4. Interest rate risk The Group\u2019s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable rates. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. These risks are managed centrally by Group treasury taking into account the expectations of the Group with respect to the evolutions of the market rates. The Group has used interest rate swaps to manage these risks. Considering that the floating rate borrowings on the Syndicated Term Loan A (EURIBOR + margin) are partially hedged through interest rate swaps, the interest expense recognized in the consolidated income statement is to a limited extent subject to interest rate volatility, as apart from the syndicated term loan A, there has also been \u20ac115.0m withdrawn on Floating Rate Syndicated Term Loan B, carrying an interest of EURIBOR 1 month + margin of 3.60%. Sensitivity of the fair value of derivative financial instruments related to loans: at December 31,2022, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been respectively \u20ac0.2 million higher/lower. At December 31,2021, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been negligible. Floating Rate Syndicated Term Loan A of \u20ac220.0 million due 2024 is carrying an interest of EURIBOR 3 month + margin of 3.90%. The notional principal amounts of the outstanding fixed payer interest rate swap contract at December 31, 2022 is \u20ac150.0 million as per below table: Duration Fixed interest rate % Amount in \u20ac million 3 Years 0.5950% 150.0 Total 150.0 The OCI net impact for 2022 was a \u20ac9.5 million gain. \u20ac0.4 million was reclassified to P&L (loss) during 2022.7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__147-1": { "value": "Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Foreign exchange gains and losses that relate to interest-bearing debts and cash and cash equivalents are presented in the income statement within \u2018Net finance cost\u2019. All other foreign exchange gains and losses are presented in the income statement within \u2018Other operating income/(expenses), net\u2019. For the purpose of presenting consolidated financial statements, assets and liabilities of the Group\u2019s foreign operations are translated at the closing rate at the end of the reporting period. Items of income and expense are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and equity items are translated at historical rates. The resulting exchange rate differences are recognized in other comprehensive income and accumulated in a separate component of equity. The principal exchange rates that have been used are as follows: December 31, 2022 December 31, 2021 Currency Closing Rate Av Rate Year Closing Rate Av Rate Year AUD 1.5693 1.5174 1.5615 1.5747 BRL 5.6386 5.4432 6.3101 6.3813 CZK 24.1160 24.5603 24.8580 25.6468 GBP 0.8869 0.8526 0.8403 0.8600 MXN 20.8560 21.2045 23.1438 23.9903 PLN 4.6808 4.6845 4.5969 4.5640 RUB 78.9950 74.0691 85.3004 87.2321 DZD 147.1816 150.2997 158.2669 160.2390 USD 1.0666 1.0539 1.1326 1.1835The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. When a financial liability measured at amortized cost is modified without this resulting in derecognition, a gain or loss is recognized in profit or loss. The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate.7.5.3. Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the British pound (GBP), the Polish zloty (PLN), the Australian dollar (AUD) and Russian ruble (RUB) in relation to sales, and the US dollar (USD) and the Czech koruna (CZK) in relation to procurement. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities. The Group also has exposures to the Russian ruble (RUB), Czech koruna (CZK) and Australian dollar (AUD) due to their net investments in foreign operations. For the year ended December 31, 2022, only continuing operations are enclosed. The carrying amounts of the Group's main foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows: Assets Liabilities in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 EUR 1,879.9 1,775.9 2,765.6 2,566.0 USD 132.7 165.9 154.3 212.5 PLN 85.7 100.9 49.7 61.5 GBP 67.0 98.3 42.6 53.6 RUB 30.9 27.1 4.8 4.4 CZK 27.0 28.4 20.9 18.6 AUD 25.4 38.0 17.2 17.4 BRL 0.0 48.7 0.0 43.8 MXN 0.0 51.2 14.0 47.0 DZD 0.0 21.6 0.0 0.3 The Group monitors its foreign exchange exposure closely and will enter into hedging transactions if deemed appropriate to minimize exposure throughout the Group to foreign exchange fluctuations. All hedging decisions are subject to approval of the Board of Directors. The strategy regarding FX hedges was maintained. To manage their foreign exchange risk arising from future commercial transactions, recognized assets and liabilities, the Group uses forward exchange contracts. Foreign exchange risk arises when future commercial transactions, recognized assets and liabilities are denominated in a currency that is not the entity\u2019s functional currency. The Group treasury is responsible for optimizing the net position in each foreign currency when possible and appropriate. The Group applies hedge accounting for the hedge related transactions, the impact of the revaluation is recognized in other comprehensive income. The Group has entered into foreign exchange forward contracts in 2022 maturing at the latest in March 2024 in order to limit volatility in the business resulting from exposures to sales in British pound, Polish zloty, Australian dollar as well as purchases in US dollar and Czech crown during 2023. Based on the hedge strategy, the foreign exchange forward contracts hedge the following forecasted exposures until December 31, 2023: for British pound (GBP) 76.0 million, for Polish zloty (PLN) 310.2 million, for Australian dollar (AUD) 23.1 million, for Czech crown (CZK) 870.2 million, for US dollar (USD) 73.1 million versus EUR and US dollar (USD) 18.2 million versus Czech crown (CZK). The terms of the foreign currency forward contracts have been negotiated to match the terms of the highly probable forecast transactions. The Group applies hedge accounting to the foreign currency forward contracts. The changes in the fair value of these hedging instruments, designated as effective instruments in a cash flow hedge, are recognized in OCI until the moment the transaction occurs. At the moment the transaction leads to the recognition of a trade receivable or a trade payable, this cash flow hedge reserve including the changes in fair value of the hedging instrument is included in P&L where it adjusts revenue/costs or, if the transaction leads to the recognition of a non-financial asset or non-financial liability, as an adjustment of the carrying amount of the asset and liability. Further changes in the hedging instrument are recognized in P&L together with the changes in the trade receivables or payables. For the year ended December 31, 2022, an unrealized loss of \u20ac14.1 million (mainly Mexican peso versus EUR for 11.1 million and US dollar versus EUR for 2.4 million) has been recognized in other comprehensive income, offset by an unrealized gain of \u20ac3.8 million (British pound mainly). As of December 31, 2022, the fair value of the derivative financial asset for the foreign exchange contracts amounted to \u20ac4.4 million (2021: \u20ac4.1 million) and of the derivative financial liability amounted to \u20ac13.8 million (2021: \u20ac2.3 million). An amount of \u20ac0.4 million was reclassified to P&L (loss) during 2022. The following table sets forth the impact on pre-tax profit and equity for the year of a 10% weakening/strengthening of the Euro against the reported currency with all other variables held constant. The impact is mainly as a result of foreign exchange gains/losses on translation of foreign currency denominated trade receivables and payables and related derivative positions as at the respective statement of financial position dates. 10% weakening of the EUR 10% strengthening of the EUR 2022 2021* 2022 2021* in \u20ac million Impact on P&L Impact on Equity Impact on P&L Impact on equity AUD (0.2) (1.4) (0.2) 0.2 1.2 0.1 GBP (0.9) (8.5) (0.9) 0.8 7.0 0.7 PLN (0.8) (6.5) (0.8) 0.7 5.3 0.6 USD (1.9) 4.5 (1.3) 1.6 (3.5) 1.1 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations7.5.4. Interest rate risk The Group\u2019s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable rates. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. These risks are managed centrally by Group treasury taking into account the expectations of the Group with respect to the evolutions of the market rates. The Group has used interest rate swaps to manage these risks. Considering that the floating rate borrowings on the Syndicated Term Loan A (EURIBOR + margin) are partially hedged through interest rate swaps, the interest expense recognized in the consolidated income statement is to a limited extent subject to interest rate volatility, as apart from the syndicated term loan A, there has also been \u20ac115.0m withdrawn on Floating Rate Syndicated Term Loan B, carrying an interest of EURIBOR 1 month + margin of 3.60%. Sensitivity of the fair value of derivative financial instruments related to loans: at December 31,2022, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been respectively \u20ac0.2 million higher/lower. At December 31,2021, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been negligible. Floating Rate Syndicated Term Loan A of \u20ac220.0 million due 2024 is carrying an interest of EURIBOR 3 month + margin of 3.90%. The notional principal amounts of the outstanding fixed payer interest rate swap contract at December 31, 2022 is \u20ac150.0 million as per below table: Duration Fixed interest rate % Amount in \u20ac million 3 Years 0.5950% 150.0 Total 150.0 The OCI net impact for 2022 was a \u20ac9.5 million gain. \u20ac0.4 million was reclassified to P&L (loss) during 2022.The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million.7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__141-1": { "value": "Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Foreign exchange gains and losses that relate to interest-bearing debts and cash and cash equivalents are presented in the income statement within \u2018Net finance cost\u2019. All other foreign exchange gains and losses are presented in the income statement within \u2018Other operating income/(expenses), net\u2019. For the purpose of presenting consolidated financial statements, assets and liabilities of the Group\u2019s foreign operations are translated at the closing rate at the end of the reporting period. Items of income and expense are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and equity items are translated at historical rates. The resulting exchange rate differences are recognized in other comprehensive income and accumulated in a separate component of equity. The principal exchange rates that have been used are as follows: December 31, 2022 December 31, 2021 Currency Closing Rate Av Rate Year Closing Rate Av Rate Year AUD 1.5693 1.5174 1.5615 1.5747 BRL 5.6386 5.4432 6.3101 6.3813 CZK 24.1160 24.5603 24.8580 25.6468 GBP 0.8869 0.8526 0.8403 0.8600 MXN 20.8560 21.2045 23.1438 23.9903 PLN 4.6808 4.6845 4.5969 4.5640 RUB 78.9950 74.0691 85.3004 87.2321 DZD 147.1816 150.2997 158.2669 160.2390 USD 1.0666 1.0539 1.1326 1.1835The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. When a financial liability measured at amortized cost is modified without this resulting in derecognition, a gain or loss is recognized in profit or loss. The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate.7.5.3. Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the British pound (GBP), the Polish zloty (PLN), the Australian dollar (AUD) and Russian ruble (RUB) in relation to sales, and the US dollar (USD) and the Czech koruna (CZK) in relation to procurement. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities. The Group also has exposures to the Russian ruble (RUB), Czech koruna (CZK) and Australian dollar (AUD) due to their net investments in foreign operations. For the year ended December 31, 2022, only continuing operations are enclosed. The carrying amounts of the Group's main foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows: Assets Liabilities in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 EUR 1,879.9 1,775.9 2,765.6 2,566.0 USD 132.7 165.9 154.3 212.5 PLN 85.7 100.9 49.7 61.5 GBP 67.0 98.3 42.6 53.6 RUB 30.9 27.1 4.8 4.4 CZK 27.0 28.4 20.9 18.6 AUD 25.4 38.0 17.2 17.4 BRL 0.0 48.7 0.0 43.8 MXN 0.0 51.2 14.0 47.0 DZD 0.0 21.6 0.0 0.3 The Group monitors its foreign exchange exposure closely and will enter into hedging transactions if deemed appropriate to minimize exposure throughout the Group to foreign exchange fluctuations. All hedging decisions are subject to approval of the Board of Directors. The strategy regarding FX hedges was maintained. To manage their foreign exchange risk arising from future commercial transactions, recognized assets and liabilities, the Group uses forward exchange contracts. Foreign exchange risk arises when future commercial transactions, recognized assets and liabilities are denominated in a currency that is not the entity\u2019s functional currency. The Group treasury is responsible for optimizing the net position in each foreign currency when possible and appropriate. The Group applies hedge accounting for the hedge related transactions, the impact of the revaluation is recognized in other comprehensive income. The Group has entered into foreign exchange forward contracts in 2022 maturing at the latest in March 2024 in order to limit volatility in the business resulting from exposures to sales in British pound, Polish zloty, Australian dollar as well as purchases in US dollar and Czech crown during 2023. Based on the hedge strategy, the foreign exchange forward contracts hedge the following forecasted exposures until December 31, 2023: for British pound (GBP) 76.0 million, for Polish zloty (PLN) 310.2 million, for Australian dollar (AUD) 23.1 million, for Czech crown (CZK) 870.2 million, for US dollar (USD) 73.1 million versus EUR and US dollar (USD) 18.2 million versus Czech crown (CZK). The terms of the foreign currency forward contracts have been negotiated to match the terms of the highly probable forecast transactions. The Group applies hedge accounting to the foreign currency forward contracts. The changes in the fair value of these hedging instruments, designated as effective instruments in a cash flow hedge, are recognized in OCI until the moment the transaction occurs. At the moment the transaction leads to the recognition of a trade receivable or a trade payable, this cash flow hedge reserve including the changes in fair value of the hedging instrument is included in P&L where it adjusts revenue/costs or, if the transaction leads to the recognition of a non-financial asset or non-financial liability, as an adjustment of the carrying amount of the asset and liability. Further changes in the hedging instrument are recognized in P&L together with the changes in the trade receivables or payables. For the year ended December 31, 2022, an unrealized loss of \u20ac14.1 million (mainly Mexican peso versus EUR for 11.1 million and US dollar versus EUR for 2.4 million) has been recognized in other comprehensive income, offset by an unrealized gain of \u20ac3.8 million (British pound mainly). As of December 31, 2022, the fair value of the derivative financial asset for the foreign exchange contracts amounted to \u20ac4.4 million (2021: \u20ac4.1 million) and of the derivative financial liability amounted to \u20ac13.8 million (2021: \u20ac2.3 million). An amount of \u20ac0.4 million was reclassified to P&L (loss) during 2022. The following table sets forth the impact on pre-tax profit and equity for the year of a 10% weakening/strengthening of the Euro against the reported currency with all other variables held constant. The impact is mainly as a result of foreign exchange gains/losses on translation of foreign currency denominated trade receivables and payables and related derivative positions as at the respective statement of financial position dates. 10% weakening of the EUR 10% strengthening of the EUR 2022 2021* 2022 2021* in \u20ac million Impact on P&L Impact on Equity Impact on P&L Impact on equity AUD (0.2) (1.4) (0.2) 0.2 1.2 0.1 GBP (0.9) (8.5) (0.9) 0.8 7.0 0.7 PLN (0.8) (6.5) (0.8) 0.7 5.3 0.6 USD (1.9) 4.5 (1.3) 1.6 (3.5) 1.1 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations7.5.4. Interest rate risk The Group\u2019s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable rates. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. These risks are managed centrally by Group treasury taking into account the expectations of the Group with respect to the evolutions of the market rates. The Group has used interest rate swaps to manage these risks. Considering that the floating rate borrowings on the Syndicated Term Loan A (EURIBOR + margin) are partially hedged through interest rate swaps, the interest expense recognized in the consolidated income statement is to a limited extent subject to interest rate volatility, as apart from the syndicated term loan A, there has also been \u20ac115.0m withdrawn on Floating Rate Syndicated Term Loan B, carrying an interest of EURIBOR 1 month + margin of 3.60%. Sensitivity of the fair value of derivative financial instruments related to loans: at December 31,2022, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been respectively \u20ac0.2 million higher/lower. At December 31,2021, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been negligible. Floating Rate Syndicated Term Loan A of \u20ac220.0 million due 2024 is carrying an interest of EURIBOR 3 month + margin of 3.90%. The notional principal amounts of the outstanding fixed payer interest rate swap contract at December 31, 2022 is \u20ac150.0 million as per below table: Duration Fixed interest rate % Amount in \u20ac million 3 Years 0.5950% 150.0 Total 150.0 The OCI net impact for 2022 was a \u20ac9.5 million gain. \u20ac0.4 million was reclassified to P&L (loss) during 2022.The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million.7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__32": { "value": "Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Foreign exchange gains and losses that relate to interest-bearing debts and cash and cash equivalents are presented in the income statement within \u2018Net finance cost\u2019. All other foreign exchange gains and losses are presented in the income statement within \u2018Other operating income/(expenses), net\u2019. For the purpose of presenting consolidated financial statements, assets and liabilities of the Group\u2019s foreign operations are translated at the closing rate at the end of the reporting period. Items of income and expense are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and equity items are translated at historical rates. The resulting exchange rate differences are recognized in other comprehensive income and accumulated in a separate component of equity. The principal exchange rates that have been used are as follows: December 31, 2022 December 31, 2021 Currency Closing Rate Av Rate Year Closing Rate Av Rate Year AUD 1.5693 1.5174 1.5615 1.5747 BRL 5.6386 5.4432 6.3101 6.3813 CZK 24.1160 24.5603 24.8580 25.6468 GBP 0.8869 0.8526 0.8403 0.8600 MXN 20.8560 21.2045 23.1438 23.9903 PLN 4.6808 4.6845 4.5969 4.5640 RUB 78.9950 74.0691 85.3004 87.2321 DZD 147.1816 150.2997 158.2669 160.2390 USD 1.0666 1.0539 1.1326 1.1835", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__31": { "value": "Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Foreign exchange gains and losses that relate to interest-bearing debts and cash and cash equivalents are presented in the income statement within \u2018Net finance cost\u2019. All other foreign exchange gains and losses are presented in the income statement within \u2018Other operating income/(expenses), net\u2019. For the purpose of presenting consolidated financial statements, assets and liabilities of the Group\u2019s foreign operations are translated at the closing rate at the end of the reporting period. Items of income and expense are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and equity items are translated at historical rates. The resulting exchange rate differences are recognized in other comprehensive income and accumulated in a separate component of equity. The principal exchange rates that have been used are as follows: December 31, 2022 December 31, 2021 Currency Closing Rate Av Rate Year Closing Rate Av Rate Year AUD 1.5693 1.5174 1.5615 1.5747 BRL 5.6386 5.4432 6.3101 6.3813 CZK 24.1160 24.5603 24.8580 25.6468 GBP 0.8869 0.8526 0.8403 0.8600 MXN 20.8560 21.2045 23.1438 23.9903 PLN 4.6808 4.6845 4.5969 4.5640 RUB 78.9950 74.0691 85.3004 87.2321 DZD 147.1816 150.2997 158.2669 160.2390 USD 1.0666 1.0539 1.1326 1.1835", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__30": { "value": "Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Foreign exchange gains and losses that relate to interest-bearing debts and cash and cash equivalents are presented in the income statement within \u2018Net finance cost\u2019. All other foreign exchange gains and losses are presented in the income statement within \u2018Other operating income/(expenses), net\u2019. For the purpose of presenting consolidated financial statements, assets and liabilities of the Group\u2019s foreign operations are translated at the closing rate at the end of the reporting period. Items of income and expense are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and equity items are translated at historical rates. The resulting exchange rate differences are recognized in other comprehensive income and accumulated in a separate component of equity. The principal exchange rates that have been used are as follows: December 31, 2022 December 31, 2021 Currency Closing Rate Av Rate Year Closing Rate Av Rate Year AUD 1.5693 1.5174 1.5615 1.5747 BRL 5.6386 5.4432 6.3101 6.3813 CZK 24.1160 24.5603 24.8580 25.6468 GBP 0.8869 0.8526 0.8403 0.8600 MXN 20.8560 21.2045 23.1438 23.9903 PLN 4.6808 4.6845 4.5969 4.5640 RUB 78.9950 74.0691 85.3004 87.2321 DZD 147.1816 150.2997 158.2669 160.2390 USD 1.0666 1.0539 1.1326 1.1835", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__133-1": { "value": "7.1.6. Intangible assets An intangible asset is recognized on the statement of financial position when the following conditions are met: (1) the asset is identifiable, i.e. either separable (if it can be sold, transferred, licensed) or it results from contractual or legal rights; (2) it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group; (3) the Group can control the resource; and (4) the cost of the asset can be measured reliably. Intangible assets are carried at acquisition cost (including the costs directly attributable to the transaction) less any accumulated amortizations and less any accumulated impairment losses. Within the Group, internally generated intangibles represent IT projects and product/process development projects. Development costs that are directly attributable to the design and testing of identifiable and unique projects controlled by the Group are recognized as intangible assets when the following criteria are met: \u2022 it is technically feasible to complete the project so that it will be available for use \u2022 management intends to complete the project and use or sell it \u2022 there is an ability to use or sell the project \u2022 it can be demonstrated how the project will generate probable future economic benefits \u2022 adequate technical, financial and other resources to complete the development and to use or sell the project are available, and \u2022 the expenditure attributable to the project during its development can be reliably measured. The Group\u2019s systems allow a reliable measure of expenses directly attributable to the different IT and product/process development projects. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Externally acquired software is carried at acquisition cost less any accumulated amortization and less any accumulated impairment loss. Maintenance costs as well as the costs of minor upgrades whose objective is to maintain (rather than increase) the level of performance of the asset are expensed as incurred. Borrowing costs that are directly attributable to the acquisition, construction and or production of a qualifying intangible asset are capitalized as part of the cost of the asset. Intangible assets are amortized on a systematic basis over their useful life, using the straight-line method. The applicable useful lives are: Intangible assets Brands 20 years IT implementation costs 5 years Capitalized development costs 3 to 5 years Licenses 3 to 5 years Acquired concessions, patents, know-how, and other similar rights 5 years Amortization commences only when the asset is available for use.7.1.9. Impairment of non-financial assets, other than goodwill Intangible assets with indefinite useful lives and intangible assets not yet available for use are not subject to amortization, but are tested annually for impairment. Other assets which are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.7.1.16. Government grants Grants from governments are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the assets to which they relate and are credited to the income statement on a straight-line basis over the expected lives of the related assets.7.9. GOODWILL AND INTANGIBLE ASSETS IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2022 Opening net book amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 Hyperinflation opening net book amount 9.5 0.0 0.0 0.0 0.0 9.5 Restated opening net book amount 1,049.4 15.4 1.7 19.2 9.5 1,095.2 Additions 0.0 0.0 0.2 6.7 4.5 11.3 Transfers 0.0 0.0 3.7 0.9 (4.5) 0.1 Reclassified as held for sale (170.6) (15.4) 0.0 0.0 0.2 (185.8) Amortization expense 0.0 0.0 (1.3) (7.9) 0.0 (9.2) Impairment (84.1) 0.0 (0.2) 0.0 0.0 (84.3) Exchange differences 3.2 (0.0) 0.0 (0.0) 0.0 3.2 Closing carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 At December 31, 2022 Cost 862.6 0.0 9.4 67.5 23.7 963.4 Accumulated amortization and impairment (64.7) (0.0) (5.3) (48.6) (14.1) (132.7) Carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2021 Opening net book amount 1,106.7 23.2 3.7 20.8 5.8 1,160.2 Additions 0.0 0.0 0.1 7.0 5.2 12.3 Transfers 0.0 0.0 1.1 0.1 (0.9) 0.3 Disposals 0.0 0.0 (0.1) (0.0) 0.0 (0.1) Amortization expense 0.0 (1.6) (1.0) (8.2) (0.0) (10.8) Impairment (66.1) (7.1) (2.1) (0.5) (0.5) (76.3) Exchange differences (0.7) 0.8 0.0 (0.0) 0.0 0.1 Closing carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 At December 31, 2021 Cost 1,106.8 31.2 5.5 62.2 23.7 1,229.3 Accumulated amortization and impairment (66.9) (15.8) (3.8) (43.0) (14.1) (143.6) Carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 The decrease compared to prior year is mostly due to the reclassification to assets held for sale. Brands in 2021 represent the capitalization of some of the brands acquired through the acquisitions of Grupo Mabe and Ontex Brazil. The impairment recognized in 2021 resulted mainly from the goodwill impairment test carried out on the Brazilian business. Capitalized IT implementation costs represent internally developed and externally purchased software for own use. The impairment recognized in 2022 results mainly from the goodwill impairment test carried out on the Russian business, see below for more information. The amortization expense is included in the captions of the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of sales 0.1 0.0 General and administrative expenses 9.1 8.5 Total amortization expense 9.2 8.6 * The amortization expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac2.2 million. The Group incurred \u20ac11.8 million of research and development expenses in 2022 (2021: \u20ac8.7 million) that has been recorded under the caption \u2018General and administrative expenses\u2019. No intangible assets have been pledged in the context of financial liabilities.7.4.5. Expected useful lives The expected useful lives of the property, plant and equipment and intangible assets must be estimated. The determination of the useful lives of the assets is based on management\u2019s judgment and it is reviewed at least at each financial year-end, pursuant to IAS 16 and IAS 38.", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__34": { "value": "7.1.6. Intangible assets An intangible asset is recognized on the statement of financial position when the following conditions are met: (1) the asset is identifiable, i.e. either separable (if it can be sold, transferred, licensed) or it results from contractual or legal rights; (2) it is probable that the expected future economic benefits that are attributable to the asset will flow to the Group; (3) the Group can control the resource; and (4) the cost of the asset can be measured reliably. Intangible assets are carried at acquisition cost (including the costs directly attributable to the transaction) less any accumulated amortizations and less any accumulated impairment losses. Within the Group, internally generated intangibles represent IT projects and product/process development projects. Development costs that are directly attributable to the design and testing of identifiable and unique projects controlled by the Group are recognized as intangible assets when the following criteria are met: \u2022 it is technically feasible to complete the project so that it will be available for use \u2022 management intends to complete the project and use or sell it \u2022 there is an ability to use or sell the project \u2022 it can be demonstrated how the project will generate probable future economic benefits \u2022 adequate technical, financial and other resources to complete the development and to use or sell the project are available, and \u2022 the expenditure attributable to the project during its development can be reliably measured. The Group\u2019s systems allow a reliable measure of expenses directly attributable to the different IT and product/process development projects. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Externally acquired software is carried at acquisition cost less any accumulated amortization and less any accumulated impairment loss. Maintenance costs as well as the costs of minor upgrades whose objective is to maintain (rather than increase) the level of performance of the asset are expensed as incurred. Borrowing costs that are directly attributable to the acquisition, construction and or production of a qualifying intangible asset are capitalized as part of the cost of the asset. Intangible assets are amortized on a systematic basis over their useful life, using the straight-line method. The applicable useful lives are: Intangible assets Brands 20 years IT implementation costs 5 years Capitalized development costs 3 to 5 years Licenses 3 to 5 years Acquired concessions, patents, know-how, and other similar rights 5 years Amortization commences only when the asset is available for use.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__35-1": { "value": "Intangible assets are carried at acquisition cost (including the costs directly attributable to the transaction) less any accumulated amortizations and less any accumulated impairment losses. Within the Group, internally generated intangibles represent IT projects and product/process development projects. Development costs that are directly attributable to the design and testing of identifiable and unique projects controlled by the Group are recognized as intangible assets when the following criteria are met: \u2022 it is technically feasible to complete the project so that it will be available for use \u2022 management intends to complete the project and use or sell it \u2022 there is an ability to use or sell the project \u2022 it can be demonstrated how the project will generate probable future economic benefits \u2022 adequate technical, financial and other resources to complete the development and to use or sell the project are available, and \u2022 the expenditure attributable to the project during its development can be reliably measured. The Group\u2019s systems allow a reliable measure of expenses directly attributable to the different IT and product/process development projects. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Externally acquired software is carried at acquisition cost less any accumulated amortization and less any accumulated impairment loss. Maintenance costs as well as the costs of minor upgrades whose objective is to maintain (rather than increase) the level of performance of the asset are expensed as incurred. Borrowing costs that are directly attributable to the acquisition, construction and or production of a qualifying intangible asset are capitalized as part of the cost of the asset. Intangible assets are amortized on a systematic basis over their useful life, using the straight-line method. The applicable useful lives are: Intangible assets Brands 20 years IT implementation costs 5 years Capitalized development costs 3 to 5 years Licenses 3 to 5 years Acquired concessions, patents, know-how, and other similar rights 5 years Amortization commences only when the asset is available for use.Expenditure on repair and maintenance which serve only to maintain, but not increase, the value of fixed assets is charged to the income statement. However, expenditure on major repair and major maintenance, which increases the future economic benefits that will be generated by the fixed asset, is identified as a separate element of the acquisition cost. The cost of property, plant and equipment is broken down into major components. These major components, which are replaced at regular intervals and consequently have a useful life that is different from that of the fixed asset in which they are incorporated, are depreciated over their specific useful lives. In the event of replacement, the component is replaced and removed from the statement of financial position, and the new asset is depreciated up until the next major repair or maintenance. The depreciable amount is allocated on a systematic basis over the useful life of the asset, using the straight-line method. The depreciable amount is the acquisition cost, less residual value, if any. The applicable useful lives are: Property, plant and equipment Land N/A Land improvements and buildings 30 years Plants, machinery and equipment 10 to 15 years Furniture and vehicles 4 to 8 years Other tangible assets 5 years IT equipment 3 to 5 years The useful life of the machines is reviewed regularly. Each time a significant upgrade is performed, such upgrade extends the useful life of the machine. The cost of the upgrade is added to the carrying amount of the machine and the new carrying amount is depreciated prospectively over the remaining estimated useful life of the machine.7.1.20. Income taxes Income tax expense represents the sum of the tax currently payable and deferred tax. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Group\u2019s subsidiaries operate and generate taxable income. In line with paragraph 46 of IAS 12 Income taxes, management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. This evaluation is made for tax periods open for audit by the competent authorities. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred tax is not recognized for: \u2022 the initial recognition of goodwill; and \u2022 the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is recognized on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax liabilities are generally recognized for taxable temporary differences. Deferred tax assets are generally recognized for tax losses and tax attributes to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred taxes are calculated at the level of each fiscal entity in the Group. The Group is able to offset deferred tax assets and liabilities only if the deferred tax balances relate to income taxes levied by the same taxation authority.7.2.1. EBITDA adjustments Income and expenses classified under the heading \u201cEBITDA adjustments\u201d are those items that are considered by management not to relate to transactions, projects and adjustments to the value of assets and liabilities taking place in the ordinary course of activities of the Company. EBITDA adjustments are presented separately, due to their size or nature, so as to allow users of the consolidated financial statements of the Company to get a better understanding of the normalized performance of the Company. EBITDA adjustments relate to: \u2022 acquisition-related expenses; \u2022 changes to the measurement of contingent considerations in the context of business combinations; \u2022 changes to the Group structure, business restructuring costs, including costs related to the liquidation of subsidiaries and the closure, opening or relocations of factories; \u2022 impairment of assets and major litigations. EBITDA adjustments of the Group for the years ended December 31 are composed of the following items presented in the consolidated income statement and can be reconciled in note 7.24: \u2022 income/(expenses) related to changes to Group structure; and \u2022 income/(expenses) related to impairments and major litigations.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__36": { "value": "Development costs that are directly attributable to the design and testing of identifiable and unique projects controlled by the Group are recognized as intangible assets when the following criteria are met: \u2022 it is technically feasible to complete the project so that it will be available for use \u2022 management intends to complete the project and use or sell it \u2022 there is an ability to use or sell the project \u2022 it can be demonstrated how the project will generate probable future economic benefits \u2022 adequate technical, financial and other resources to complete the development and to use or sell the project are available, and \u2022 the expenditure attributable to the project during its development can be reliably measured. The Group\u2019s systems allow a reliable measure of expenses directly attributable to the different IT and product/process development projects. Research expenditure and development expenditure that do not meet the criteria above are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__38-1": { "value": "Maintenance costs as well as the costs of minor upgrades whose objective is to maintain (rather than increase) the level of performance of the asset are expensed as incurred.Expenditure on repair and maintenance which serve only to maintain, but not increase, the value of fixed assets is charged to the income statement. However, expenditure on major repair and major maintenance, which increases the future economic benefits that will be generated by the fixed asset, is identified as a separate element of the acquisition cost. The cost of property, plant and equipment is broken down into major components. These major components, which are replaced at regular intervals and consequently have a useful life that is different from that of the fixed asset in which they are incorporated, are depreciated over their specific useful lives. In the event of replacement, the component is replaced and removed from the statement of financial position, and the new asset is depreciated up until the next major repair or maintenance.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__39-1": { "value": "Borrowing costs that are directly attributable to the acquisition, construction and or production of a qualifying intangible asset are capitalized as part of the cost of the asset.Borrowing costs that are directly attributable to the acquisition, construction and/or production of a qualifying asset are capitalized as part of the cost of the asset.7.1.8. Leases The Group leases several properties, machinery, vehicles and IT equipment. Leases are recognized as a right-of-use asset and corresponding liability at the date of which the leased asset is available for use by the Group. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: \u2022 fixed payments (less any lease incentives), \u2022 variable lease payments that are based on an index or rate, \u2022 the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and \u2022 payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, or the Group\u2019s incremental borrowing rate, i.e. the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the remaining balance of the liability. Finance expenses are recognized immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalized. Right-of-use assets are measured at cost comprising the following: \u2022 the amount of the initial measurement of lease liability, \u2022 any lease payments made at or before the commencement date less any lease incentives received, \u2022 any initial direct costs, and \u2022 an estimate of the costs related to the dismantling and removal of the underlying asset. If it is reasonably certain that the Group will exercise a purchase option, the asset shall be depreciated on a straight-line basis over its useful life (see note 7.1.7). In all other circumstances the asset is depreciated on a straight-line basis over the shorter of the useful life of the asset or the lease term. For short-term leases (lease term of 12 months or less) or leases of low-value items (mainly IT equipment and small office furniture) to which the Group applies the recognition exemptions available in IFRS 16, lease payments are recognized on a straight-line basis as an expense over the lease term. Some property leases contain variable payment terms that are linked to the use of the property (mainly warehouses). Variable lease payments that depend on the use are recognized in profit or loss in the period in which the condition that triggers those payments occurs.Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__185-1": { "value": "Intangible assets are amortized on a systematic basis over their useful life, using the straight-line method. The applicable useful lives are: Intangible assets Brands 20 years IT implementation costs 5 years Capitalized development costs 3 to 5 years Licenses 3 to 5 years Acquired concessions, patents, know-how, and other similar rights 5 years Amortization commences only when the asset is available for use.The depreciable amount is allocated on a systematic basis over the useful life of the asset, using the straight-line method. The depreciable amount is the acquisition cost, less residual value, if any. The applicable useful lives are: Property, plant and equipment Land N/A Land improvements and buildings 30 years Plants, machinery and equipment 10 to 15 years Furniture and vehicles 4 to 8 years Other tangible assets 5 years IT equipment 3 to 5 years The useful life of the machines is reviewed regularly. Each time a significant upgrade is performed, such upgrade extends the useful life of the machine. The cost of the upgrade is added to the carrying amount of the machine and the new carrying amount is depreciated prospectively over the remaining estimated useful life of the machine.7.9. GOODWILL AND INTANGIBLE ASSETS IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2022 Opening net book amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 Hyperinflation opening net book amount 9.5 0.0 0.0 0.0 0.0 9.5 Restated opening net book amount 1,049.4 15.4 1.7 19.2 9.5 1,095.2 Additions 0.0 0.0 0.2 6.7 4.5 11.3 Transfers 0.0 0.0 3.7 0.9 (4.5) 0.1 Reclassified as held for sale (170.6) (15.4) 0.0 0.0 0.2 (185.8) Amortization expense 0.0 0.0 (1.3) (7.9) 0.0 (9.2) Impairment (84.1) 0.0 (0.2) 0.0 0.0 (84.3) Exchange differences 3.2 (0.0) 0.0 (0.0) 0.0 3.2 Closing carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 At December 31, 2022 Cost 862.6 0.0 9.4 67.5 23.7 963.4 Accumulated amortization and impairment (64.7) (0.0) (5.3) (48.6) (14.1) (132.7) Carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2021 Opening net book amount 1,106.7 23.2 3.7 20.8 5.8 1,160.2 Additions 0.0 0.0 0.1 7.0 5.2 12.3 Transfers 0.0 0.0 1.1 0.1 (0.9) 0.3 Disposals 0.0 0.0 (0.1) (0.0) 0.0 (0.1) Amortization expense 0.0 (1.6) (1.0) (8.2) (0.0) (10.8) Impairment (66.1) (7.1) (2.1) (0.5) (0.5) (76.3) Exchange differences (0.7) 0.8 0.0 (0.0) 0.0 0.1 Closing carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 At December 31, 2021 Cost 1,106.8 31.2 5.5 62.2 23.7 1,229.3 Accumulated amortization and impairment (66.9) (15.8) (3.8) (43.0) (14.1) (143.6) Carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 The decrease compared to prior year is mostly due to the reclassification to assets held for sale. Brands in 2021 represent the capitalization of some of the brands acquired through the acquisitions of Grupo Mabe and Ontex Brazil. The impairment recognized in 2021 resulted mainly from the goodwill impairment test carried out on the Brazilian business.The amortization expense is included in the captions of the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of sales 0.1 0.0 General and administrative expenses 9.1 8.5 Total amortization expense 9.2 8.6 * The amortization expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac2.2 million.7.10. PROPERTY, PLANT AND EQUIPMENT Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2022 Opening carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 Hyperinflation opening net book amount 0.0 6.4 0.0 0.0 0.0 6.5 Restated opening net book amount 121.4 403.3 1.0 0.6 53.6 579.9 Additions 4.9 33.6 0.3 0.1 7.0 45.9 Transfers 2.0 21.6 0.1 0.0 (23.2) 0.6 Disposals (0.3) (0.7) 0.0 0.0 (0.1) (1.1) Depreciation expense (4.4) (35.2) (0.3) (0.2) 0.0 (40.0) Impairment 0.0 (4.1) (0.0) 0.0 (0.2) (4.4) Capital grants received 0.0 (0.4) 0.0 0.0 0.0 (0.4) Exchange differences 0.8 7.2 0.0 0.0 0.9 9.0 Reclassified as held for sale (46.7) (124.9) (0.3) (0.2) 2.5 (169.5) Closing carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 At December 31, 2022 Cost 124.1 587.5 3.3 3.3 40.6 758.8 Accumulated depreciation and impairment ( 46.3) ( 287.1) ( 2.3) ( 2.9) 0.0 ( 338.7) Carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2021 Opening carrying amount 123.1 407.3 1.3 1.0 83.2 615.9 Additions 0.9 18.1 0.0 0.0 25.3 44.2 Transfers 1.0 54.1 0.0 0.1 (55.6) (0.3) Disposals (1.2) (0.3) 0.0 (0.1) (0.1) (1.7) Depreciation expense (5.7) (46.0) (0.4) (0.5) 0.0 (52.5) Impairment (1.7) (39.5) (0.0) 0.0 (0.2) (41.4) Capital grants received 0.0 (0.2) 0.0 0.0 0.0 (0.2) Exchange differences 2.3 3.2 (0.0) 0.0 1.0 6.5 Reclassified as held for sale 2.7 0.2 (0.0) 0.0 0.0 2.9 Closing carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 At December 31, 2021 Cost 171.7 743.6 3.5 3.9 53.6 976.3 Accumulated depreciation and impairment ( 50.3) ( 346.7) ( 2.5) ( 3.4) 0.0 ( 402.9) Carrying amount 121.4 396.9 1.0 0.6 53.6 573.4The depreciation expense is included in the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of Sales 34.3 33.0 Distribution expenses 1.3 1.4 Sales and marketing expenses 0.1 0.1 General administrative expenses 2.4 2.4 Other operating income 1.8 1.5 Total depreciation expense 40.0 38.4 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac14.2 million.7.11. LEASES Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2022 Opening carrying amount 87.4 4.0 10.5 102.0 Hyperinflation opening net book amount 0.7 0.0 0.0 0.7 Restated opening net book amount 88.1 4.0 10.5 102.7 Additions 40.3 0.6 3.3 44.2 Transfers ( 0.0) ( 0.7) 0.0 ( 0.7) Disposals ( 0.5) 0.0 ( 0.0) ( 0.6) Depreciation expense ( 15.8) ( 1.3) ( 4.1) ( 21.2) Impairment ( 3.2) 0.0 0.0 ( 3.2) Modifications to lease liabilities ( 2.0) ( 0.1) ( 0.5) ( 2.5) Exchange differences 2.6 ( 0.0) 0.1 2.7 Reclassified as held for sale ( 9.5) ( 0.1) ( 1.7) ( 11.3) Closing carrying amount 100.1 2.5 7.5 110.1 At December 31, 2022 Cost 156.8 6.7 16.5 180.0 Accumulated depreciation and impairment ( 56.8) ( 4.2) ( 9.0) ( 69.9) Carrying amount 100.1 2.5 7.5 110.1 Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2021 Opening carrying amount 108.8 6.2 11.8 126.8 Additions 2.5 0.2 4.5 7.2 Depreciation expense (16.3) (2.3) (5.8) (24.4) Impairment (5.0) 0.0 0.0 (5.0) Modifications to lease liabilities (3.5) (0.1) 0.3 (3.3) Exchange differences 0.9 0.0 (0.3) 0.7 Closing carrying amount 87.4 4.0 10.5 102.0 At December 31, 2021 Cost 138.6 11.4 25.5 175.5 Accumulated depreciation and impairment (51.1) (7.4) (14.9) (73.4) Carrying amount 87.4 4.0 10.5 102.0The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million.7.25. EXPENSES BY NATURE Expenses by nature represent an alternative disclosure for amounts included in the consolidated income statement. There are classified under \u2018Cost of sales\u2019, \u2018Distribution expenses\u2019, \u2018Sales and marketing expenses\u2019, \u2018General administrative expenses\u2019 and \u2018Other operating income / expense (net)\u2019 in respect of the years ended December 31: Full Year in \u20ac million Note 2022 2021* Changes in inventories 2.8 (2.8) Raw materials and consumables purchased (1,048.1) (777.0) Employee benefit expenses 22 (285.6) (272.2) Depreciation and amortization 9, 10, 11 (70.4) (65.7) Rendered services (223.9) (178.5) Lease expenses 11 (18.5) (15.0) Other income / (expenses) 23 5.1 (7.0) Total cost of sales, distribution expenses, sales and marketing expenses, general administrative expenses and other operating (1,638.6) (1,318.1) income / (expense) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac623.7 million.", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__37-1": { "value": "Intangible assets are amortized on a systematic basis over their useful life, using the straight-line method. The applicable useful lives are: Intangible assets Brands 20 years IT implementation costs 5 years Capitalized development costs 3 to 5 years Licenses 3 to 5 years Acquired concessions, patents, know-how, and other similar rights 5 years Amortization commences only when the asset is available for use.The depreciable amount is allocated on a systematic basis over the useful life of the asset, using the straight-line method. The depreciable amount is the acquisition cost, less residual value, if any. The applicable useful lives are: Property, plant and equipment Land N/A Land improvements and buildings 30 years Plants, machinery and equipment 10 to 15 years Furniture and vehicles 4 to 8 years Other tangible assets 5 years IT equipment 3 to 5 years The useful life of the machines is reviewed regularly. Each time a significant upgrade is performed, such upgrade extends the useful life of the machine. The cost of the upgrade is added to the carrying amount of the machine and the new carrying amount is depreciated prospectively over the remaining estimated useful life of the machine.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__196-1": { "value": "7.1.7. Property, plant and equipment Property, plant and equipment are carried at acquisition cost less any accumulated depreciation and less any accumulated impairment loss. Acquisition cost includes any directly attributable cost of bringing the asset to working condition for its intended use. Borrowing costs that are directly attributable to the acquisition, construction and/or production of a qualifying asset are capitalized as part of the cost of the asset. Expenditure on repair and maintenance which serve only to maintain, but not increase, the value of fixed assets is charged to the income statement. However, expenditure on major repair and major maintenance, which increases the future economic benefits that will be generated by the fixed asset, is identified as a separate element of the acquisition cost. The cost of property, plant and equipment is broken down into major components. These major components, which are replaced at regular intervals and consequently have a useful life that is different from that of the fixed asset in which they are incorporated, are depreciated over their specific useful lives. In the event of replacement, the component is replaced and removed from the statement of financial position, and the new asset is depreciated up until the next major repair or maintenance. The depreciable amount is allocated on a systematic basis over the useful life of the asset, using the straight-line method. The depreciable amount is the acquisition cost, less residual value, if any. The applicable useful lives are: Property, plant and equipment Land N/A Land improvements and buildings 30 years Plants, machinery and equipment 10 to 15 years Furniture and vehicles 4 to 8 years Other tangible assets 5 years IT equipment 3 to 5 years The useful life of the machines is reviewed regularly. Each time a significant upgrade is performed, such upgrade extends the useful life of the machine. The cost of the upgrade is added to the carrying amount of the machine and the new carrying amount is depreciated prospectively over the remaining estimated useful life of the machine.7.1.9. Impairment of non-financial assets, other than goodwill Intangible assets with indefinite useful lives and intangible assets not yet available for use are not subject to amortization, but are tested annually for impairment. Other assets which are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.7.1.16. Government grants Grants from governments are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the assets to which they relate and are credited to the income statement on a straight-line basis over the expected lives of the related assets.7.4.5. Expected useful lives The expected useful lives of the property, plant and equipment and intangible assets must be estimated. The determination of the useful lives of the assets is based on management\u2019s judgment and it is reviewed at least at each financial year-end, pursuant to IAS 16 and IAS 38.7.10. PROPERTY, PLANT AND EQUIPMENT Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2022 Opening carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 Hyperinflation opening net book amount 0.0 6.4 0.0 0.0 0.0 6.5 Restated opening net book amount 121.4 403.3 1.0 0.6 53.6 579.9 Additions 4.9 33.6 0.3 0.1 7.0 45.9 Transfers 2.0 21.6 0.1 0.0 (23.2) 0.6 Disposals (0.3) (0.7) 0.0 0.0 (0.1) (1.1) Depreciation expense (4.4) (35.2) (0.3) (0.2) 0.0 (40.0) Impairment 0.0 (4.1) (0.0) 0.0 (0.2) (4.4) Capital grants received 0.0 (0.4) 0.0 0.0 0.0 (0.4) Exchange differences 0.8 7.2 0.0 0.0 0.9 9.0 Reclassified as held for sale (46.7) (124.9) (0.3) (0.2) 2.5 (169.5) Closing carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 At December 31, 2022 Cost 124.1 587.5 3.3 3.3 40.6 758.8 Accumulated depreciation and impairment ( 46.3) ( 287.1) ( 2.3) ( 2.9) 0.0 ( 338.7) Carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2021 Opening carrying amount 123.1 407.3 1.3 1.0 83.2 615.9 Additions 0.9 18.1 0.0 0.0 25.3 44.2 Transfers 1.0 54.1 0.0 0.1 (55.6) (0.3) Disposals (1.2) (0.3) 0.0 (0.1) (0.1) (1.7) Depreciation expense (5.7) (46.0) (0.4) (0.5) 0.0 (52.5) Impairment (1.7) (39.5) (0.0) 0.0 (0.2) (41.4) Capital grants received 0.0 (0.2) 0.0 0.0 0.0 (0.2) Exchange differences 2.3 3.2 (0.0) 0.0 1.0 6.5 Reclassified as held for sale 2.7 0.2 (0.0) 0.0 0.0 2.9 Closing carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 At December 31, 2021 Cost 171.7 743.6 3.5 3.9 53.6 976.3 Accumulated depreciation and impairment ( 50.3) ( 346.7) ( 2.5) ( 3.4) 0.0 ( 402.9) Carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 The additions to property, plant and equipment represent mainly investments in capacity extension, investments in innovation, investments to improve the efficiency and IT investments. The decrease compared to prior year is mainly linked to the reclassification to assets held for sale. Impairment losses in 2022 are limited to \u20ac4.4 million and is related to an expected decreased utilization rate on some machinery. In 2021, impairment losses consisted for an amount of \u20ac18.4 million to the impairment performed on the business in Brazil and additional impairment losses recognized on idle machinery because of the economic downturn in certain of our geographies. The depreciation expense is included in the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of Sales 34.3 33.0 Distribution expenses 1.3 1.4 Sales and marketing expenses 0.1 0.1 General administrative expenses 2.4 2.4 Other operating income 1.8 1.5 Total depreciation expense 40.0 38.4 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac14.2 million. No pledges have been set on the items of property, plant and equipment, except for some machinery in the context of local borrowings.", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__40": { "value": "7.1.7. Property, plant and equipment Property, plant and equipment are carried at acquisition cost less any accumulated depreciation and less any accumulated impairment loss. Acquisition cost includes any directly attributable cost of bringing the asset to working condition for its intended use. Borrowing costs that are directly attributable to the acquisition, construction and/or production of a qualifying asset are capitalized as part of the cost of the asset. Expenditure on repair and maintenance which serve only to maintain, but not increase, the value of fixed assets is charged to the income statement. However, expenditure on major repair and major maintenance, which increases the future economic benefits that will be generated by the fixed asset, is identified as a separate element of the acquisition cost. The cost of property, plant and equipment is broken down into major components. These major components, which are replaced at regular intervals and consequently have a useful life that is different from that of the fixed asset in which they are incorporated, are depreciated over their specific useful lives. In the event of replacement, the component is replaced and removed from the statement of financial position, and the new asset is depreciated up until the next major repair or maintenance. The depreciable amount is allocated on a systematic basis over the useful life of the asset, using the straight-line method. The depreciable amount is the acquisition cost, less residual value, if any. The applicable useful lives are: Property, plant and equipment Land N/A Land improvements and buildings 30 years Plants, machinery and equipment 10 to 15 years Furniture and vehicles 4 to 8 years Other tangible assets 5 years IT equipment 3 to 5 years The useful life of the machines is reviewed regularly. Each time a significant upgrade is performed, such upgrade extends the useful life of the machine. The cost of the upgrade is added to the carrying amount of the machine and the new carrying amount is depreciated prospectively over the remaining estimated useful life of the machine.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__197-1": { "value": "7.1.8. Leases The Group leases several properties, machinery, vehicles and IT equipment. Leases are recognized as a right-of-use asset and corresponding liability at the date of which the leased asset is available for use by the Group. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: \u2022 fixed payments (less any lease incentives), \u2022 variable lease payments that are based on an index or rate, \u2022 the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and \u2022 payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, or the Group\u2019s incremental borrowing rate, i.e. the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the remaining balance of the liability. Finance expenses are recognized immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalized. Right-of-use assets are measured at cost comprising the following: \u2022 the amount of the initial measurement of lease liability, \u2022 any lease payments made at or before the commencement date less any lease incentives received, \u2022 any initial direct costs, and \u2022 an estimate of the costs related to the dismantling and removal of the underlying asset. If it is reasonably certain that the Group will exercise a purchase option, the asset shall be depreciated on a straight-line basis over its useful life (see note 7.1.7). In all other circumstances the asset is depreciated on a straight-line basis over the shorter of the useful life of the asset or the lease term. For short-term leases (lease term of 12 months or less) or leases of low-value items (mainly IT equipment and small office furniture) to which the Group applies the recognition exemptions available in IFRS 16, lease payments are recognized on a straight-line basis as an expense over the lease term. Some property leases contain variable payment terms that are linked to the use of the property (mainly warehouses). Variable lease payments that depend on the use are recognized in profit or loss in the period in which the condition that triggers those payments occurs.7.1.9. Impairment of non-financial assets, other than goodwill Intangible assets with indefinite useful lives and intangible assets not yet available for use are not subject to amortization, but are tested annually for impairment. Other assets which are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.7.5.8. Liquidity risk Group treasury monitors rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities (note 7.17 Interest-bearing debts) at all times so that the Group does not breach borrowing limits or covenants (where applicable) on its borrowing facilities. The table below analyzes the Group\u2019s financial liabilities (including interest payments) into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Less than Between 1 Between 2 Over 5 years in \u20ac million 1 year and 2 years and 5 years At December 31, 2022 Interest-bearing debts (34.0) (361.6) (611.0) - Lease liabilities (24.0) (20.3) (38.7) (60.2) Trade payables (405.3) - - - Total non-derivative financial liabilities (463.3) (381.9) (649.7) (60.2) Interest rate swaps (0.9) (0.9) - - Forward foreign exchange contracts (531.8) (12.0) - - Total derivative financial liabilities (532.7) (12.9) - - At December 31, 2021 Interest-bearing debts (28.5) (31.2) (857.0) (0.0) Lease liabilities (26.0) (22.1) (42.2) (40.4) Trade payables (532.6) - - - Total non-derivative financial liabilities (587.2) (53.3) (899.1) (40.4) Interest rate swaps (0.9) (0.9) (0.9) - Forward foreign exchange contracts (267.4) (11.3) - - Total derivative financial liabilities (268.3) (12.2) (0.9) - .7.11. LEASES Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2022 Opening carrying amount 87.4 4.0 10.5 102.0 Hyperinflation opening net book amount 0.7 0.0 0.0 0.7 Restated opening net book amount 88.1 4.0 10.5 102.7 Additions 40.3 0.6 3.3 44.2 Transfers ( 0.0) ( 0.7) 0.0 ( 0.7) Disposals ( 0.5) 0.0 ( 0.0) ( 0.6) Depreciation expense ( 15.8) ( 1.3) ( 4.1) ( 21.2) Impairment ( 3.2) 0.0 0.0 ( 3.2) Modifications to lease liabilities ( 2.0) ( 0.1) ( 0.5) ( 2.5) Exchange differences 2.6 ( 0.0) 0.1 2.7 Reclassified as held for sale ( 9.5) ( 0.1) ( 1.7) ( 11.3) Closing carrying amount 100.1 2.5 7.5 110.1 At December 31, 2022 Cost 156.8 6.7 16.5 180.0 Accumulated depreciation and impairment ( 56.8) ( 4.2) ( 9.0) ( 69.9) Carrying amount 100.1 2.5 7.5 110.1 Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2021 Opening carrying amount 108.8 6.2 11.8 126.8 Additions 2.5 0.2 4.5 7.2 Depreciation expense (16.3) (2.3) (5.8) (24.4) Impairment (5.0) 0.0 0.0 (5.0) Modifications to lease liabilities (3.5) (0.1) 0.3 (3.3) Exchange differences 0.9 0.0 (0.3) 0.7 Closing carrying amount 87.4 4.0 10.5 102.0 At December 31, 2021 Cost 138.6 11.4 25.5 175.5 Accumulated depreciation and impairment (51.1) (7.4) (14.9) (73.4) Carrying amount 87.4 4.0 10.5 102.0 The Group leases mainly plants and warehouses (lease terms between 3 and 25 years), machinery (lease terms of 5 years on average) and company cars (lease terms between 4 and 5 years). For the lease of land and buildings, the Group is exposed to potential future increases in variable lease payments based on an index, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Extension and termination options are included in a number of property and equipment leases across the Group. These are used to maximize operational flexibility in terms of managing the assets used in the group\u2019s operations. As at December 31, 2022, potential future cash outflows of \u20ac17.8 million (undiscounted) have not been included in the lease liability because it is not reasonably certain that the leases will be extended (or not terminated) (2021: \u20ac21.4 million). The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million. The lease liabilities are detailed in note 7.17.7.17. INTEREST-BEARING DEBTS in \u20ac million December 31, 2022 December 31, 2021 Non-current Borrowings: 791.4 793.1 Senior Notes 573.8 572.1 Syndicated Term Loan A > 1 year 217.3 216.3 Other borrowings 0.2 4.6 Lease and other liabilities 100.4 92.1 Lease liabilities 100.4 92.1 Interest-bearing debts non-current 891.7 885.2 Current Borrowings: 125.4 56.4 Senior revolving Facility B 115.0 - Other borrowings - 14.8 Interests: Other borrowings 10.4 10.4 Total return swap - 31.2 Lease and other liabilities 20.0 30.6 Lease liabilities 20.0 21.5 Other financial liabilities (0.0) 9.1 Interest-bearing debts current 145.4 87.0 Total interest-bearing debts 1,037.1 972.27.25. EXPENSES BY NATURE Expenses by nature represent an alternative disclosure for amounts included in the consolidated income statement. There are classified under \u2018Cost of sales\u2019, \u2018Distribution expenses\u2019, \u2018Sales and marketing expenses\u2019, \u2018General administrative expenses\u2019 and \u2018Other operating income / expense (net)\u2019 in respect of the years ended December 31: Full Year in \u20ac million Note 2022 2021* Changes in inventories 2.8 (2.8) Raw materials and consumables purchased (1,048.1) (777.0) Employee benefit expenses 22 (285.6) (272.2) Depreciation and amortization 9, 10, 11 (70.4) (65.7) Rendered services (223.9) (178.5) Lease expenses 11 (18.5) (15.0) Other income / (expenses) 23 5.1 (7.0) Total cost of sales, distribution expenses, sales and marketing expenses, general administrative expenses and other operating (1,638.6) (1,318.1) income / (expense) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac623.7 million.", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__71-1": { "value": "7.1.8. Leases The Group leases several properties, machinery, vehicles and IT equipment. Leases are recognized as a right-of-use asset and corresponding liability at the date of which the leased asset is available for use by the Group. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: \u2022 fixed payments (less any lease incentives), \u2022 variable lease payments that are based on an index or rate, \u2022 the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and \u2022 payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, or the Group\u2019s incremental borrowing rate, i.e. the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the remaining balance of the liability. Finance expenses are recognized immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalized. Right-of-use assets are measured at cost comprising the following: \u2022 the amount of the initial measurement of lease liability, \u2022 any lease payments made at or before the commencement date less any lease incentives received, \u2022 any initial direct costs, and \u2022 an estimate of the costs related to the dismantling and removal of the underlying asset. If it is reasonably certain that the Group will exercise a purchase option, the asset shall be depreciated on a straight-line basis over its useful life (see note 7.1.7). In all other circumstances the asset is depreciated on a straight-line basis over the shorter of the useful life of the asset or the lease term. For short-term leases (lease term of 12 months or less) or leases of low-value items (mainly IT equipment and small office furniture) to which the Group applies the recognition exemptions available in IFRS 16, lease payments are recognized on a straight-line basis as an expense over the lease term. Some property leases contain variable payment terms that are linked to the use of the property (mainly warehouses). Variable lease payments that depend on the use are recognized in profit or loss in the period in which the condition that triggers those payments occurs.7.1.21. Financial liabilities Financial liabilities (including borrowings and trade and other payables) are classified as at amortized cost, except for derivative instruments (see 7.1.22 below). Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. When a financial liability measured at amortized cost is modified without this resulting in derecognition, a gain or loss is recognized in profit or loss. The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate. Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.7.1.22. Derivative financial instruments The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate, foreign exchange rate and commodity price risks and equity price risks associated with share-based payments, including foreign exchange forward contracts, commodity hedging contracts and interest rate CAP\u2019s and SWAP\u2019s. Derivatives are accounted for in accordance with IFRS 9. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The fair values of various derivative instruments are disclosed in note 7.5 \u2018Financial Instruments and Financial Risk Management\u2019. The full fair value of a derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. If no hedge accounting is applied, the Group recognizes all gains or losses resulting from changes in fair value of derivatives in the consolidated income statement within Other operating income/expense to the extent that they relate to operating activities and within Net finance cost to the extent that they relate to the financing activities of the Group (e.g. interest rate swaps relating to the floating rate borrowings).7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__46": { "value": "7.1.8. Leases The Group leases several properties, machinery, vehicles and IT equipment. Leases are recognized as a right-of-use asset and corresponding liability at the date of which the leased asset is available for use by the Group. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: \u2022 fixed payments (less any lease incentives), \u2022 variable lease payments that are based on an index or rate, \u2022 the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and \u2022 payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, or the Group\u2019s incremental borrowing rate, i.e. the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the remaining balance of the liability. Finance expenses are recognized immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalized. Right-of-use assets are measured at cost comprising the following: \u2022 the amount of the initial measurement of lease liability, \u2022 any lease payments made at or before the commencement date less any lease incentives received, \u2022 any initial direct costs, and \u2022 an estimate of the costs related to the dismantling and removal of the underlying asset. If it is reasonably certain that the Group will exercise a purchase option, the asset shall be depreciated on a straight-line basis over its useful life (see note 7.1.7). In all other circumstances the asset is depreciated on a straight-line basis over the shorter of the useful life of the asset or the lease term. For short-term leases (lease term of 12 months or less) or leases of low-value items (mainly IT equipment and small office furniture) to which the Group applies the recognition exemptions available in IFRS 16, lease payments are recognized on a straight-line basis as an expense over the lease term. Some property leases contain variable payment terms that are linked to the use of the property (mainly warehouses). Variable lease payments that depend on the use are recognized in profit or loss in the period in which the condition that triggers those payments occurs.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__200-1": { "value": "7.1.9. Impairment of non-financial assets, other than goodwill Intangible assets with indefinite useful lives and intangible assets not yet available for use are not subject to amortization, but are tested annually for impairment. Other assets which are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.Spare parts held by the Group are classified as property, plant and equipment if they are expected to be used in more than one period and if they are specific to a single machine. If they are not expected to be used in more than one period or if they can be used on several machines, they are classified as inventory. For the spare parts classified as inventory, the Group uses write-down rules based on the economic use of these spare parts.The Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost. For trade receivables, the Group applies the simplified approach permitted by IFRS 9 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables. The amount of the allowance is deducted from the carrying amount of the asset and is recognized in the income statement within \u2018Sales and marketing expenses\u2019. Trade receivables are no longer recognized when (1) the rights to receive cash flows from the trade receivables have expired, (2) the Group has transferred substantially all risks and rewards related to the receivables.7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions.Disposal group classified as held for sale Upon reclassification as held for sale, total impairment losses on goodwill of \u20ac60.0 million have been recognized to present the net assets at the lower of the carrying amount and the fair value less costs of disposal. At December 31, 2022, additional impairment losses on goodwill of \u20ac48.9 million have been recognized based on a comparison of the expected proceeds of disposal less costs to sell versus the carrying amount of the related net assets. \u20ac33.2 million of the impairment is related to the impact of the application of Hyperinflation on the Turkish carrying net assets, which increased with \u20ac29.0 million.7.9. GOODWILL AND INTANGIBLE ASSETS IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2022 Opening net book amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 Hyperinflation opening net book amount 9.5 0.0 0.0 0.0 0.0 9.5 Restated opening net book amount 1,049.4 15.4 1.7 19.2 9.5 1,095.2 Additions 0.0 0.0 0.2 6.7 4.5 11.3 Transfers 0.0 0.0 3.7 0.9 (4.5) 0.1 Reclassified as held for sale (170.6) (15.4) 0.0 0.0 0.2 (185.8) Amortization expense 0.0 0.0 (1.3) (7.9) 0.0 (9.2) Impairment (84.1) 0.0 (0.2) 0.0 0.0 (84.3) Exchange differences 3.2 (0.0) 0.0 (0.0) 0.0 3.2 Closing carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 At December 31, 2022 Cost 862.6 0.0 9.4 67.5 23.7 963.4 Accumulated amortization and impairment (64.7) (0.0) (5.3) (48.6) (14.1) (132.7) Carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2021 Opening net book amount 1,106.7 23.2 3.7 20.8 5.8 1,160.2 Additions 0.0 0.0 0.1 7.0 5.2 12.3 Transfers 0.0 0.0 1.1 0.1 (0.9) 0.3 Disposals 0.0 0.0 (0.1) (0.0) 0.0 (0.1) Amortization expense 0.0 (1.6) (1.0) (8.2) (0.0) (10.8) Impairment (66.1) (7.1) (2.1) (0.5) (0.5) (76.3) Exchange differences (0.7) 0.8 0.0 (0.0) 0.0 0.1 Closing carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 At December 31, 2021 Cost 1,106.8 31.2 5.5 62.2 23.7 1,229.3 Accumulated amortization and impairment (66.9) (15.8) (3.8) (43.0) (14.1) (143.6) Carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7Brands in 2021 represent the capitalization of some of the brands acquired through the acquisitions of Grupo Mabe and Ontex Brazil. The impairment recognized in 2021 resulted mainly from the goodwill impairment test carried out on the Brazilian business.Considering the renewed strategy of the Group to refocus its activities on Europe and North America, the Group has reviewed the cash-generating units and has determined the following cash-generating units for the purpose of the goodwill impairment testing: \u2022 Europe \u2022 Russia \u2022 North America Annual impairment reviews are performed during the fourth quarter of each year for all CGUs, except if there would be factors indicating a risk for impairment loss. These reviews compare the carrying value of each CGU with the recoverable amount of the CGU\u2019s assets calculated using a discounted cash flow model. If the recoverable amount is less than the carrying value of the CGU, an impairment loss is recognized immediately in the income statement. Due to the current economic performance of the Group and the modified strategy, the Group has performed an impairment test on a more frequent basis during 2022. The test at half year 2022 revealed that an impairment loss should be recognized on the CGU \u201cRussia\u201d. The test at year-end did not lead to any additional impairment. The judgments and estimates considered in the context of the impairment tests are disclosed in note 7.4.4. Goodwill allocated to the CGUs as at December 31 was as follows: in \u20ac million 2022 2021 Europe 743.1 818.0 North & Central America N/A 205.1 North America 54.9 N/A Middle East, Africa & Asia N/A 16.7 Goodwill allocated to the CGU's 797.9 1,039.9 As mentioned above, the test carried out at half year 2022 resulted in the recognition of an impairment loss of \u20ac84.1 million on the CGU \u201cRussia\u201d reflecting the revised strategy and forecasts. The impairment loss of \u20ac84.1 million has been entirely allocated to goodwill. The recoverable amount of a CGU is determined by means of value-in-use calculations. These calculations are based on pre-tax cash flow projections (prepared in euros) using key parameters from the consolidated financial budget approved by Ontex\u2019 Board of Directors and the Group\u2019s Strategic Plan through 2025. Cash flows in 2026 are determined based on the average growth rate in the Group\u2019s Strategic Plan through 2025. Cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. The key assumptions for the value-in-use calculations used to determine the recoverable amount are those regarding the discount rates, estimated changes to selling prices, product offerings, direct costs, operating margins and terminal growth rates. Climate-related matters were considered but did not have a material impact on the value-in-use calculation as explained in the Non-Financial Statements. The discount rate is a measure based on industry average weighted cost of capital and risk-free rates weighted for the different regions in which the CGU\u2019s are operating. Changes in selling practices and direct costs are based on past practices and expectations of future changes in the market. The calculation uses cash flow projections based on key parameters from the consolidated financial budget approved by the Board of Directors, the Group\u2019s Strategic Plan through 2025, and pre-tax discount rates for each CGU as described in note 7.4.4 Impairment based on current market assessments of the time value of money and the risks specific to the Group. The development of the financial budget and Strategic Plan relies on a number of assumptions, including: \u2022 The market growth, the evolution of the Group\u2019s market share, competitive landscape and innovation trends in the different markets as well as strategic initiatives. \u2022 The product mix. \u2022 The expected evolution of various direct and indirect expenses. \u2022 The estimated future capital expenditure. The assumptions were derived mainly from: \u2022 Available historic data. \u2022 External market research. \u2022 Internal market expectations based on trend reports, etc. The key assumptions used are reviewed and updated on a yearly basis by the Group\u2019s management. Taking into account the excess of the cash-generating unit\u2019s recoverable amount over its carrying amount, and based on sensitivity testing performed, management is of the opinion that any reasonably possible changes in key assumptions on which the recoverable amount is based would not cause the carrying amount to exceed the recoverable amount at December 31, 2022. The Group has performed a sensitivity analysis by reducing the risk-adjusted cash flow projections and by increasing the pre-tax discount rate as disclosed in note 7.4.4 Impairment. 7.10. PROPERTY, PLANT AND EQUIPMENT Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2022 Opening carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 Hyperinflation opening net book amount 0.0 6.4 0.0 0.0 0.0 6.5 Restated opening net book amount 121.4 403.3 1.0 0.6 53.6 579.9 Additions 4.9 33.6 0.3 0.1 7.0 45.9 Transfers 2.0 21.6 0.1 0.0 (23.2) 0.6 Disposals (0.3) (0.7) 0.0 0.0 (0.1) (1.1) Depreciation expense (4.4) (35.2) (0.3) (0.2) 0.0 (40.0) Impairment 0.0 (4.1) (0.0) 0.0 (0.2) (4.4) Capital grants received 0.0 (0.4) 0.0 0.0 0.0 (0.4) Exchange differences 0.8 7.2 0.0 0.0 0.9 9.0 Reclassified as held for sale (46.7) (124.9) (0.3) (0.2) 2.5 (169.5) Closing carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 At December 31, 2022 Cost 124.1 587.5 3.3 3.3 40.6 758.8 Accumulated depreciation and impairment ( 46.3) ( 287.1) ( 2.3) ( 2.9) 0.0 ( 338.7) Carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2021 Opening carrying amount 123.1 407.3 1.3 1.0 83.2 615.9 Additions 0.9 18.1 0.0 0.0 25.3 44.2 Transfers 1.0 54.1 0.0 0.1 (55.6) (0.3) Disposals (1.2) (0.3) 0.0 (0.1) (0.1) (1.7) Depreciation expense (5.7) (46.0) (0.4) (0.5) 0.0 (52.5) Impairment (1.7) (39.5) (0.0) 0.0 (0.2) (41.4) Capital grants received 0.0 (0.2) 0.0 0.0 0.0 (0.2) Exchange differences 2.3 3.2 (0.0) 0.0 1.0 6.5 Reclassified as held for sale 2.7 0.2 (0.0) 0.0 0.0 2.9 Closing carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 At December 31, 2021 Cost 171.7 743.6 3.5 3.9 53.6 976.3 Accumulated depreciation and impairment ( 50.3) ( 346.7) ( 2.5) ( 3.4) 0.0 ( 402.9) Carrying amount 121.4 396.9 1.0 0.6 53.6 573.4Impairment losses in 2022 are limited to \u20ac4.4 million and is related to an expected decreased utilization rate on some machinery. In 2021, impairment losses consisted for an amount of \u20ac18.4 million to the impairment performed on the business in Brazil and additional impairment losses recognized on idle machinery because of the economic downturn in certain of our geographies.7.11. LEASES Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2022 Opening carrying amount 87.4 4.0 10.5 102.0 Hyperinflation opening net book amount 0.7 0.0 0.0 0.7 Restated opening net book amount 88.1 4.0 10.5 102.7 Additions 40.3 0.6 3.3 44.2 Transfers ( 0.0) ( 0.7) 0.0 ( 0.7) Disposals ( 0.5) 0.0 ( 0.0) ( 0.6) Depreciation expense ( 15.8) ( 1.3) ( 4.1) ( 21.2) Impairment ( 3.2) 0.0 0.0 ( 3.2) Modifications to lease liabilities ( 2.0) ( 0.1) ( 0.5) ( 2.5) Exchange differences 2.6 ( 0.0) 0.1 2.7 Reclassified as held for sale ( 9.5) ( 0.1) ( 1.7) ( 11.3) Closing carrying amount 100.1 2.5 7.5 110.1 At December 31, 2022 Cost 156.8 6.7 16.5 180.0 Accumulated depreciation and impairment ( 56.8) ( 4.2) ( 9.0) ( 69.9) Carrying amount 100.1 2.5 7.5 110.1 Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2021 Opening carrying amount 108.8 6.2 11.8 126.8 Additions 2.5 0.2 4.5 7.2 Depreciation expense (16.3) (2.3) (5.8) (24.4) Impairment (5.0) 0.0 0.0 (5.0) Modifications to lease liabilities (3.5) (0.1) 0.3 (3.3) Exchange differences 0.9 0.0 (0.3) 0.7 Closing carrying amount 87.4 4.0 10.5 102.0 At December 31, 2021 Cost 138.6 11.4 25.5 175.5 Accumulated depreciation and impairment (51.1) (7.4) (14.9) (73.4) Carrying amount 87.4 4.0 10.5 102.07.12. INVENTORIES Inventories can be split as follows: in \u20ac million December 31, 2022 December 31, 2021 Raw materials 148.7 178.8 Work in progress 0.8 1.6 Finished goods 122.6 188.6 Other 5.1 7.5 Write-down on inventories (12.9) (17.8) Inventories 264.3 358.77.13. TRADE RECEIVABLES, PREPAID EXPENSES AND OTHER RECEIVABLES The current trade and other receivables are detailed below: in \u20ac million December 31, 2022 December 31, 2021 Trade receivables 195.9 278.4 Less: allowance for impairment of trade receivables (4.1) (8.6) Trade receivables - net 191.8 269.8 Prepayments 4.8 8.7 Other amounts receivable 32.1 60.5 Prepaid expenses and other receivables 36.8 69.2 Trade and other receivables - Current 228.6 339.0An impairment analysis of trade receivables is done based on expected losses, next to individual assessments, but there are no significant impairments. Movements on the Group allowance for impairment of trade receivables are as follows: in \u20ac million December 31, 2022 December 31, 2021 Opening Balance 8.6 8.2 Allowance for receivable impairment 0.3 1.3 Receivables written off during the year as uncollectible (0.3) (0.1) Unused amounts reversed (0.1) (0.9) Foreign exchange differences 0.1 0.1 Reclassified as held for sale (4.4) - At December 31 4.1 8.6 The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The creation and the release of the allowance for impaired receivables have been included in \u2018Sales and marketing expense\u2019 in the income statement.7.24. EBITDA ADJUSTMENTS Full Year in \u20ac million 2022 2021* Business restructuring (10.8) (33.0) Acquisition and disposal of businesses (0.3) (1.1) Refinancing - (0.1) Income and expenses related to changes to Group structure (11.2) (34.2) Impairment of assets (91.0) (23.5) Litigation and legal claims (0.2) (3.2) Other (0.6) 1.2 Income and expenses related to impairments and major litigations (91.8) (25.5) Total EBITDA adjustments (103.0) (59.7) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac25.1 million7.24.2. Income and expenses related to impairments and major litigations Impairment of assets In 2022, the impairment losses mainly include the impairment of goodwill related to the Russian business (\u20ac84.1 million) and also some impairment losses on idle machinery. In 2021, the impairment losses mainly include the impairment losses on idle machinery. ", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__47-1": { "value": "7.1.9. Impairment of non-financial assets, other than goodwill Intangible assets with indefinite useful lives and intangible assets not yet available for use are not subject to amortization, but are tested annually for impairment. Other assets which are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.Spare parts held by the Group are classified as property, plant and equipment if they are expected to be used in more than one period and if they are specific to a single machine. If they are not expected to be used in more than one period or if they can be used on several machines, they are classified as inventory. For the spare parts classified as inventory, the Group uses write-down rules based on the economic use of these spare parts.The Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost. For trade receivables, the Group applies the simplified approach permitted by IFRS 9 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables. The amount of the allowance is deducted from the carrying amount of the asset and is recognized in the income statement within \u2018Sales and marketing expenses\u2019. Trade receivables are no longer recognized when (1) the rights to receive cash flows from the trade receivables have expired, (2) the Group has transferred substantially all risks and rewards related to the receivables.7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions.7.12. INVENTORIES Inventories can be split as follows: in \u20ac million December 31, 2022 December 31, 2021 Raw materials 148.7 178.8 Work in progress 0.8 1.6 Finished goods 122.6 188.6 Other 5.1 7.5 Write-down on inventories (12.9) (17.8) Inventories 264.3 358.7An impairment analysis of trade receivables is done based on expected losses, next to individual assessments, but there are no significant impairments. Movements on the Group allowance for impairment of trade receivables are as follows: in \u20ac million December 31, 2022 December 31, 2021 Opening Balance 8.6 8.2 Allowance for receivable impairment 0.3 1.3 Receivables written off during the year as uncollectible (0.3) (0.1) Unused amounts reversed (0.1) (0.9) Foreign exchange differences 0.1 0.1 Reclassified as held for sale (4.4) - At December 31 4.1 8.6 The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The creation and the release of the allowance for impaired receivables have been included in \u2018Sales and marketing expense\u2019 in the income statement.7.13. TRADE RECEIVABLES, PREPAID EXPENSES AND OTHER RECEIVABLES The current trade and other receivables are detailed below: in \u20ac million December 31, 2022 December 31, 2021 Trade receivables 195.9 278.4 Less: allowance for impairment of trade receivables (4.1) (8.6) Trade receivables - net 191.8 269.8 Prepayments 4.8 8.7 Other amounts receivable 32.1 60.5 Prepaid expenses and other receivables 36.8 69.2 Trade and other receivables - Current 228.6 339.07.10. PROPERTY, PLANT AND EQUIPMENT Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2022 Opening carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 Hyperinflation opening net book amount 0.0 6.4 0.0 0.0 0.0 6.5 Restated opening net book amount 121.4 403.3 1.0 0.6 53.6 579.9 Additions 4.9 33.6 0.3 0.1 7.0 45.9 Transfers 2.0 21.6 0.1 0.0 (23.2) 0.6 Disposals (0.3) (0.7) 0.0 0.0 (0.1) (1.1) Depreciation expense (4.4) (35.2) (0.3) (0.2) 0.0 (40.0) Impairment 0.0 (4.1) (0.0) 0.0 (0.2) (4.4) Capital grants received 0.0 (0.4) 0.0 0.0 0.0 (0.4) Exchange differences 0.8 7.2 0.0 0.0 0.9 9.0 Reclassified as held for sale (46.7) (124.9) (0.3) (0.2) 2.5 (169.5) Closing carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 At December 31, 2022 Cost 124.1 587.5 3.3 3.3 40.6 758.8 Accumulated depreciation and impairment ( 46.3) ( 287.1) ( 2.3) ( 2.9) 0.0 ( 338.7) Carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2021 Opening carrying amount 123.1 407.3 1.3 1.0 83.2 615.9 Additions 0.9 18.1 0.0 0.0 25.3 44.2 Transfers 1.0 54.1 0.0 0.1 (55.6) (0.3) Disposals (1.2) (0.3) 0.0 (0.1) (0.1) (1.7) Depreciation expense (5.7) (46.0) (0.4) (0.5) 0.0 (52.5) Impairment (1.7) (39.5) (0.0) 0.0 (0.2) (41.4) Capital grants received 0.0 (0.2) 0.0 0.0 0.0 (0.2) Exchange differences 2.3 3.2 (0.0) 0.0 1.0 6.5 Reclassified as held for sale 2.7 0.2 (0.0) 0.0 0.0 2.9 Closing carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 At December 31, 2021 Cost 171.7 743.6 3.5 3.9 53.6 976.3 Accumulated depreciation and impairment ( 50.3) ( 346.7) ( 2.5) ( 3.4) 0.0 ( 402.9) Carrying amount 121.4 396.9 1.0 0.6 53.6 573.47.11. LEASES Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2022 Opening carrying amount 87.4 4.0 10.5 102.0 Hyperinflation opening net book amount 0.7 0.0 0.0 0.7 Restated opening net book amount 88.1 4.0 10.5 102.7 Additions 40.3 0.6 3.3 44.2 Transfers ( 0.0) ( 0.7) 0.0 ( 0.7) Disposals ( 0.5) 0.0 ( 0.0) ( 0.6) Depreciation expense ( 15.8) ( 1.3) ( 4.1) ( 21.2) Impairment ( 3.2) 0.0 0.0 ( 3.2) Modifications to lease liabilities ( 2.0) ( 0.1) ( 0.5) ( 2.5) Exchange differences 2.6 ( 0.0) 0.1 2.7 Reclassified as held for sale ( 9.5) ( 0.1) ( 1.7) ( 11.3) Closing carrying amount 100.1 2.5 7.5 110.1 At December 31, 2022 Cost 156.8 6.7 16.5 180.0 Accumulated depreciation and impairment ( 56.8) ( 4.2) ( 9.0) ( 69.9) Carrying amount 100.1 2.5 7.5 110.1 Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2021 Opening carrying amount 108.8 6.2 11.8 126.8 Additions 2.5 0.2 4.5 7.2 Depreciation expense (16.3) (2.3) (5.8) (24.4) Impairment (5.0) 0.0 0.0 (5.0) Modifications to lease liabilities (3.5) (0.1) 0.3 (3.3) Exchange differences 0.9 0.0 (0.3) 0.7 Closing carrying amount 87.4 4.0 10.5 102.0 At December 31, 2021 Cost 138.6 11.4 25.5 175.5 Accumulated depreciation and impairment (51.1) (7.4) (14.9) (73.4) Carrying amount 87.4 4.0 10.5 102.07.24. EBITDA ADJUSTMENTS Full Year in \u20ac million 2022 2021* Business restructuring (10.8) (33.0) Acquisition and disposal of businesses (0.3) (1.1) Refinancing - (0.1) Income and expenses related to changes to Group structure (11.2) (34.2) Impairment of assets (91.0) (23.5) Litigation and legal claims (0.2) (3.2) Other (0.6) 1.2 Income and expenses related to impairments and major litigations (91.8) (25.5) Total EBITDA adjustments (103.0) (59.7) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac25.1 million7.9. GOODWILL AND INTANGIBLE ASSETS IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2022 Opening net book amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 Hyperinflation opening net book amount 9.5 0.0 0.0 0.0 0.0 9.5 Restated opening net book amount 1,049.4 15.4 1.7 19.2 9.5 1,095.2 Additions 0.0 0.0 0.2 6.7 4.5 11.3 Transfers 0.0 0.0 3.7 0.9 (4.5) 0.1 Reclassified as held for sale (170.6) (15.4) 0.0 0.0 0.2 (185.8) Amortization expense 0.0 0.0 (1.3) (7.9) 0.0 (9.2) Impairment (84.1) 0.0 (0.2) 0.0 0.0 (84.3) Exchange differences 3.2 (0.0) 0.0 (0.0) 0.0 3.2 Closing carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 At December 31, 2022 Cost 862.6 0.0 9.4 67.5 23.7 963.4 Accumulated amortization and impairment (64.7) (0.0) (5.3) (48.6) (14.1) (132.7) Carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2021 Opening net book amount 1,106.7 23.2 3.7 20.8 5.8 1,160.2 Additions 0.0 0.0 0.1 7.0 5.2 12.3 Transfers 0.0 0.0 1.1 0.1 (0.9) 0.3 Disposals 0.0 0.0 (0.1) (0.0) 0.0 (0.1) Amortization expense 0.0 (1.6) (1.0) (8.2) (0.0) (10.8) Impairment (66.1) (7.1) (2.1) (0.5) (0.5) (76.3) Exchange differences (0.7) 0.8 0.0 (0.0) 0.0 0.1 Closing carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 At December 31, 2021 Cost 1,106.8 31.2 5.5 62.2 23.7 1,229.3 Accumulated amortization and impairment (66.9) (15.8) (3.8) (43.0) (14.1) (143.6) Carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.77.24.2. Income and expenses related to impairments and major litigations Impairment of assets In 2022, the impairment losses mainly include the impairment of goodwill related to the Russian business (\u20ac84.1 million) and also some impairment losses on idle machinery. In 2021, the impairment losses mainly include the impairment losses on idle machinery. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__202-1": { "value": "7.1.10. Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods and work in progress comprises the production costs, like raw materials, direct labor, and also the indirect production costs (production overheads based on normal operating capacity). Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Spare parts held by the Group are classified as property, plant and equipment if they are expected to be used in more than one period and if they are specific to a single machine. If they are not expected to be used in more than one period or if they can be used on several machines, they are classified as inventory. For the spare parts classified as inventory, the Group uses write-down rules based on the economic use of these spare parts.7.12. INVENTORIES Inventories can be split as follows: in \u20ac million December 31, 2022 December 31, 2021 Raw materials 148.7 178.8 Work in progress 0.8 1.6 Finished goods 122.6 188.6 Other 5.1 7.5 Write-down on inventories (12.9) (17.8) Inventories 264.3 358.7 The Group mainly uses fluff, super-absorbers and non-woven fabrics. Other raw materials used by the Group for its production include polyethylene, adhesives and tapes as basic raw materials. The finished products are baby diapers, baby pants, towels, tampons, panty liners, incontinence products and trade goods. The cost of inventories recognized as an expense and included under \u2018Cost of sales\u2019 amounted to \u20ac1,294.7 million in 2022 (\u20ac1,510.4 million in 2021). The amount for 2021 consists of the full group and does not take into account the reclassification to discontinued operations as the statement of financial position figures at December 31, 2021 were not restated.", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__72": { "value": "7.1.10. Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods and work in progress comprises the production costs, like raw materials, direct labor, and also the indirect production costs (production overheads based on normal operating capacity). Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Spare parts held by the Group are classified as property, plant and equipment if they are expected to be used in more than one period and if they are specific to a single machine. If they are not expected to be used in more than one period or if they can be used on several machines, they are classified as inventory. For the spare parts classified as inventory, the Group uses write-down rules based on the economic use of these spare parts.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__204-1": { "value": "7.1.11. Non-current assets held for sale and discontinued operations Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. A discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale, and which: \u2022 represents a separate major line of business or geographical area of operations; \u2022 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u2022 is a subsidiary acquired exclusively with a view to resale.7.8. DISPOSAL GROUP HELD FOR SALE AND DISCONTINUED OPERATIONS Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. These operations, which are expected to be sold within 12 months, have been classified as a disposal group held for sale and presented separately in the statement of financial position. As a result, discontinued operations are shown as one line item in the consolidated financial statements as detailed below. The discontinued statement of financial position items are presented at lower of the fair value less cost-to-sell and the carrying amount, in accordance with IFRS 5. stThe associated assets and liabilities are consequently presented as held for sale as from January 1, 2022. The related financial performance is thereby reported as discontinued operations in the Income statement. The assets held for sale in the table below amount to \u20ac653.9 million and deviate from the amount in the consolidated statement of financial position as the Group also stholds a building in Germany as held for sale at December 31, 2022. Ontex entered into a binding agreement in July 2022 to sell its Mexican and related export activities to Softys S.A., marking a milestone in the transformation of Ontex. Net cash proceeds are estimated at approximately \u20ac250.0 million. The closing is foreseen early Q2 2023, subject to the customary conditions, including the applicable merger clearance approvals. Proceeds from the transaction will be exclusively applied to reduce debt. Ontex is making progress in the divestment of its remaining Emerging Markets businesses, as discussions with potential acquirers continue. Disposal group classified as held for sale Upon reclassification as held for sale, total impairment losses on goodwill of \u20ac60.0 million have been recognized to present the net assets at the lower of the carrying amount and the fair value less costs of disposal. At December 31, 2022, additional impairment losses on goodwill of \u20ac48.9 million have been recognized based on a comparison of the expected proceeds of disposal less costs to sell versus the carrying amount of the related net assets. \u20ac33.2 million of the impairment is related to the impact of the application of Hyperinflation on the Turkish carrying net assets, which increased with \u20ac29.0 million. The major classes of assets and liabilities comprising the operations classified as held for sale are as follows: December 31, 2022 in \u20ac million Non-current Assets Goodwill 83.8 Intangible assets 17.1 Property, plant and equipment 183.8 Right-of-use assets 16.3 Deferred tax assets 0.4 Other non-current assets 0.5 301.9 Current Assets Inventories 116.1 Trade receivables 115.4 Prepaid expenses and other receivables 53.8 Current tax assets 6.5 Derivative financial assets 0.5 Cash and cash equivalents 59.7 352.0 Assets classified as held for sale 653.9 December 31, 2022 in \u20ac million Non-current liabilities Employee benefit liabilities 3.4 Interest-bearing debts 16.8 Deferred tax liabilities 12.9 33.1 Current liabilities Interest-bearing debts 22.2 Derivative financial liabilities 0.4 Trade payables 154.1 Accrued expenses and other payables 19.6 Employee benefit liabilities 12.5 Current tax liabilities 4.8 Provisions 2.9 216.5 Liabilities related to assets classified as held for sale 249.6 The cumulative foreign exchange losses recognized in other comprehensive income in relation to the discontinued operations as at December 31, 2022 were \u20ac302.4 million. Financial performance The results of the discontinued operations, which have been included in the consolidated income statement, were as follows: Full Year in \u20ac million 2022 2021 Revenue 792.3 617.7 Operating expenses (excl. depreciations and amortizations) (760.6) (601.7) Adjusted EBITDA 31.7 15.9 Income and expenses related to impairment losses and restructuring (122.6) (25.1) EBITDA (90.9) (9.1) Depreciation and amortization - (22.0) Financial result (19.9) (1.1) Profit/(loss) before income tax (110.7) (32.3) Income tax expense (10.9) (10.2) Profit/(loss) for the period from discontinued operations (121.6) (42.4) Full Year Earnings per share (\u20ac) 2022 2021 For discontinuing operations Basic earnings per share (1.50) (0.52) Diluted earnings per share (1.50) (0.52) Cash flows The cash flow information presented for the period ended December 31, 2022 and 2021: Full Year in \u20ac million 2022 2021 Net cash generated from / (used in) operating activities 14.4 81.7 Net cash generated from / (used in) investing activities (13.1) (31.4) Net cash generated from / (used in) financing activities (4.2) (40.6) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (2.9) 9.8 Effects of exchange rate changes on cash and cash equivalents 1.5 (7.8)", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncurrentAssetsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__203-1": { "value": "7.1.11. Non-current assets held for sale and discontinued operations Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. A discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale, and which: \u2022 represents a separate major line of business or geographical area of operations; \u2022 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u2022 is a subsidiary acquired exclusively with a view to resale.7.8. DISPOSAL GROUP HELD FOR SALE AND DISCONTINUED OPERATIONS Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. These operations, which are expected to be sold within 12 months, have been classified as a disposal group held for sale and presented separately in the statement of financial position. As a result, discontinued operations are shown as one line item in the consolidated financial statements as detailed below. The discontinued statement of financial position items are presented at lower of the fair value less cost-to-sell and the carrying amount, in accordance with IFRS 5. stThe associated assets and liabilities are consequently presented as held for sale as from January 1, 2022. The related financial performance is thereby reported as discontinued operations in the Income statement. The assets held for sale in the table below amount to \u20ac653.9 million and deviate from the amount in the consolidated statement of financial position as the Group also stholds a building in Germany as held for sale at December 31, 2022. Ontex entered into a binding agreement in July 2022 to sell its Mexican and related export activities to Softys S.A., marking a milestone in the transformation of Ontex. Net cash proceeds are estimated at approximately \u20ac250.0 million. The closing is foreseen early Q2 2023, subject to the customary conditions, including the applicable merger clearance approvals. Proceeds from the transaction will be exclusively applied to reduce debt. Ontex is making progress in the divestment of its remaining Emerging Markets businesses, as discussions with potential acquirers continue. Disposal group classified as held for sale Upon reclassification as held for sale, total impairment losses on goodwill of \u20ac60.0 million have been recognized to present the net assets at the lower of the carrying amount and the fair value less costs of disposal. At December 31, 2022, additional impairment losses on goodwill of \u20ac48.9 million have been recognized based on a comparison of the expected proceeds of disposal less costs to sell versus the carrying amount of the related net assets. \u20ac33.2 million of the impairment is related to the impact of the application of Hyperinflation on the Turkish carrying net assets, which increased with \u20ac29.0 million. The major classes of assets and liabilities comprising the operations classified as held for sale are as follows: December 31, 2022 in \u20ac million Non-current Assets Goodwill 83.8 Intangible assets 17.1 Property, plant and equipment 183.8 Right-of-use assets 16.3 Deferred tax assets 0.4 Other non-current assets 0.5 301.9 Current Assets Inventories 116.1 Trade receivables 115.4 Prepaid expenses and other receivables 53.8 Current tax assets 6.5 Derivative financial assets 0.5 Cash and cash equivalents 59.7 352.0 Assets classified as held for sale 653.9 December 31, 2022 in \u20ac million Non-current liabilities Employee benefit liabilities 3.4 Interest-bearing debts 16.8 Deferred tax liabilities 12.9 33.1 Current liabilities Interest-bearing debts 22.2 Derivative financial liabilities 0.4 Trade payables 154.1 Accrued expenses and other payables 19.6 Employee benefit liabilities 12.5 Current tax liabilities 4.8 Provisions 2.9 216.5 Liabilities related to assets classified as held for sale 249.6 The cumulative foreign exchange losses recognized in other comprehensive income in relation to the discontinued operations as at December 31, 2022 were \u20ac302.4 million. Financial performance The results of the discontinued operations, which have been included in the consolidated income statement, were as follows: Full Year in \u20ac million 2022 2021 Revenue 792.3 617.7 Operating expenses (excl. depreciations and amortizations) (760.6) (601.7) Adjusted EBITDA 31.7 15.9 Income and expenses related to impairment losses and restructuring (122.6) (25.1) EBITDA (90.9) (9.1) Depreciation and amortization - (22.0) Financial result (19.9) (1.1) Profit/(loss) before income tax (110.7) (32.3) Income tax expense (10.9) (10.2) Profit/(loss) for the period from discontinued operations (121.6) (42.4) Full Year Earnings per share (\u20ac) 2022 2021 For discontinuing operations Basic earnings per share (1.50) (0.52) Diluted earnings per share (1.50) (0.52) Cash flows The cash flow information presented for the period ended December 31, 2022 and 2021: Full Year in \u20ac million 2022 2021 Net cash generated from / (used in) operating activities 14.4 81.7 Net cash generated from / (used in) investing activities (13.1) (31.4) Net cash generated from / (used in) financing activities (4.2) (40.6) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (2.9) 9.8 Effects of exchange rate changes on cash and cash equivalents 1.5 (7.8)", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__78": { "value": "7.1.11. Non-current assets held for sale and discontinued operations Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. A discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale, and which: \u2022 represents a separate major line of business or geographical area of operations; \u2022 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u2022 is a subsidiary acquired exclusively with a view to resale.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__76": { "value": "7.1.11. Non-current assets held for sale and discontinued operations Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. A discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale, and which: \u2022 represents a separate major line of business or geographical area of operations; \u2022 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u2022 is a subsidiary acquired exclusively with a view to resale.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForAvailableforsaleFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__75-1": { "value": "7.1.11. Non-current assets held for sale and discontinued operations Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. A discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale, and which: \u2022 represents a separate major line of business or geographical area of operations; \u2022 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u2022 is a subsidiary acquired exclusively with a view to resale.7.8. DISPOSAL GROUP HELD FOR SALE AND DISCONTINUED OPERATIONS Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. These operations, which are expected to be sold within 12 months, have been classified as a disposal group held for sale and presented separately in the statement of financial position. As a result, discontinued operations are shown as one line item in the consolidated financial statements as detailed below. The discontinued statement of financial position items are presented at lower of the fair value less cost-to-sell and the carrying amount, in accordance with IFRS 5. stThe associated assets and liabilities are consequently presented as held for sale as from January 1, 2022. The related financial performance is thereby reported as discontinued operations in the Income statement. The assets held for sale in the table below amount to \u20ac653.9 million and deviate from the amount in the consolidated statement of financial position as the Group also stholds a building in Germany as held for sale at December 31, 2022. Ontex entered into a binding agreement in July 2022 to sell its Mexican and related export activities to Softys S.A., marking a milestone in the transformation of Ontex. Net cash proceeds are estimated at approximately \u20ac250.0 million. The closing is foreseen early Q2 2023, subject to the customary conditions, including the applicable merger clearance approvals. Proceeds from the transaction will be exclusively applied to reduce debt. Ontex is making progress in the divestment of its remaining Emerging Markets businesses, as discussions with potential acquirers continue. Disposal group classified as held for sale Upon reclassification as held for sale, total impairment losses on goodwill of \u20ac60.0 million have been recognized to present the net assets at the lower of the carrying amount and the fair value less costs of disposal. At December 31, 2022, additional impairment losses on goodwill of \u20ac48.9 million have been recognized based on a comparison of the expected proceeds of disposal less costs to sell versus the carrying amount of the related net assets. \u20ac33.2 million of the impairment is related to the impact of the application of Hyperinflation on the Turkish carrying net assets, which increased with \u20ac29.0 million. The major classes of assets and liabilities comprising the operations classified as held for sale are as follows: December 31, 2022 in \u20ac million Non-current Assets Goodwill 83.8 Intangible assets 17.1 Property, plant and equipment 183.8 Right-of-use assets 16.3 Deferred tax assets 0.4 Other non-current assets 0.5 301.9 Current Assets Inventories 116.1 Trade receivables 115.4 Prepaid expenses and other receivables 53.8 Current tax assets 6.5 Derivative financial assets 0.5 Cash and cash equivalents 59.7 352.0 Assets classified as held for sale 653.9 December 31, 2022 in \u20ac million Non-current liabilities Employee benefit liabilities 3.4 Interest-bearing debts 16.8 Deferred tax liabilities 12.9 33.1 Current liabilities Interest-bearing debts 22.2 Derivative financial liabilities 0.4 Trade payables 154.1 Accrued expenses and other payables 19.6 Employee benefit liabilities 12.5 Current tax liabilities 4.8 Provisions 2.9 216.5 Liabilities related to assets classified as held for sale 249.6 The cumulative foreign exchange losses recognized in other comprehensive income in relation to the discontinued operations as at December 31, 2022 were \u20ac302.4 million. Financial performance The results of the discontinued operations, which have been included in the consolidated income statement, were as follows: Full Year in \u20ac million 2022 2021 Revenue 792.3 617.7 Operating expenses (excl. depreciations and amortizations) (760.6) (601.7) Adjusted EBITDA 31.7 15.9 Income and expenses related to impairment losses and restructuring (122.6) (25.1) EBITDA (90.9) (9.1) Depreciation and amortization - (22.0) Financial result (19.9) (1.1) Profit/(loss) before income tax (110.7) (32.3) Income tax expense (10.9) (10.2) Profit/(loss) for the period from discontinued operations (121.6) (42.4) Full Year Earnings per share (\u20ac) 2022 2021 For discontinuing operations Basic earnings per share (1.50) (0.52) Diluted earnings per share (1.50) (0.52) Cash flows The cash flow information presented for the period ended December 31, 2022 and 2021: Full Year in \u20ac million 2022 2021 Net cash generated from / (used in) operating activities 14.4 81.7 Net cash generated from / (used in) investing activities (13.1) (31.4) Net cash generated from / (used in) financing activities (4.2) (40.6) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (2.9) 9.8 Effects of exchange rate changes on cash and cash equivalents 1.5 (7.8)", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__207-1": { "value": "7.1.12. Revenue recognition Ontex Group\u2019s core activity is the sale of goods with as only performance obligation the delivery of goods. As such, the Group recognizes revenue at a point in time when control of the goods is transferred to the customer, generally on delivery of the goods. The Group sells its products to its customers directly, through distributors or agents. This can result in a different moment to recognize revenue. Following delivery to distributors, the distributor has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility when selling the goods and bears the risks of obsolescence and loss in relation to the goods. Next to the sale of goods, distinct services \u2013 mainly customer training or customer assistance services \u2013 are rendered predominantly over the period that the corresponding goods are sold to the customer. Transportation (shipping) is not be considered as a separate performance obligation as control over the goods is only transferred to the customer after the shipment. Payment terms can differ depending on the customer, based on the credit risk and prior payment behavior of the customer. In addition, the geographical location of the company and the customer have an effect on the payment terms. There are no significant financing components in the transaction prices and the considerations are paid in cash. Customer contracts include trade discounts or volume rebates, which are granted to the customer if the delivered quantities exceed a certain threshold. In these cases, the transaction price includes a variable consideration. The effect of the variable consideration on the transaction price is taken into account in revenue recognition by estimating the probability of the realization of the discount or rebate for each contract. Furthermore, the estimated variable consideration is included in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved (constraining the variable consideration). Furthermore, the Group considers all payments made to customers and whether these are related to the revenue generated from the customer. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.7.2.7. Alternative Performance Measures included in the Press releases and other Regulated information Like-for-Like (LFL) revenue Like-for-like revenue is defined as revenue at constant currency excluding change in scope of consolidation or a change due to M&A. 2021 2022 LFL Forex 2022 Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group in \u20ac million Operations Operations Operations Operations Operations Operations Operations Operations Revenue 1,408.7 617.7 2,026.4 1,622.7 748.9 2,371.6 49.5 43.4 92.9 1,672.2 792.3 2,464.5 Adjusted EBITDA margin Adjusted EBITDA margin is adjusted EBITDA divided by revenue.7.4.8. Revenue recognition For the accrual for volume discounts (to customers and from suppliers) some judgements are made on the impact of commercial decisions that will influence the final discount to be received or to be granted.7.6. OPERATING SEGMENTS According to IFRS 8, reportable operating segments are identified based on the \u201cmanagement approach\u201d. This approach stipulates external segment reporting based on the Group\u2019s internal organizational and management structure and on internal financial reporting to the chief operating decision maker. The Group\u2019s activities are in one segment, \u201cHygienic Disposable Products\u201d. There are no other significant classes of business, either singularly or in aggregate. The chief operating decision maker, the Board of Directors, reviews the operating results and operating plans, and make resource allocation decisions on a company-wide basis. Therefore, the Group operates as one segment. Enterprise-wide disclosures about product sales, geographic areas and revenue from major customers are presented below: 7.6.1. Information by product group The key product categories are: \u2022 Baby Care products, principally baby diapers, baby pants and, to a lesser extent, wet wipes; \u2022 Adult Care products, such as adult pants, adult diapers, incontinence towels and bed protection; \u2022 Feminine Care products, such as sanitary towels, panty liners and tampons. Full Year in \u20ac million 2022 2021* Baby Care 765.0 628.8 Adult Care 653.6 571.3 Feminine Care 222.0 180.8 Other 31.6 27.8 Total revenue 1,672.2 1,408.7 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac617.7 million 7.6.2. Information by country The sales in the country of domicile of Ontex Group NV (Belgium) represent less than 4% of Ontex Group NV Revenue. Sales to countries in our top four markets are presented in the table below. The sales in all other individual countries represent less than 10% of the Group\u2019s revenue. Full Year in \u20ac million 2022 2021* United Kingdom 253.8 221.3 USA 205.1 151.4 Italy 180.4 179.9 France 182.7 167.2 Other countries 850.2 689.0 Total revenue 1,672.2 1,408.7 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac617.7 million The following table presents an overview of the non-current assets (property, plant and equipment (PP&E), right to use assets and intangible assets) located in the main countries. The non-current assets in all other individual countries represent less than 10% of the Group\u2019s total non-current assets (excluding financial instruments, deferred tax assets and goodwill). Goodwill is not included in the below table as this is not monitored on a country-basis, but at the divisional level. in \u20ac million December 31, 2022 December 31, 2021 Belgium 133.5 139.0 Poland 68.5 42.9 Mexico 52.4 145.3 Czech Republic 50.0 51.1 Germany 49.7 83.7 Brazil N/A 45.9 Other countries 208.8 213.5 Total 562.9 721.3 7.6.3. Revenue from major customers The Group does not have a single significant customer. In 2022 the largest customer represents 7.8% (2021:8.1%) of the revenue. The 10 largest customers represent 37.1% of 2022 revenue (2021: 37.5%). The figures for 2021 have been adjusted for the reclassification of the Emerging Markets as discontinued operations.", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__206-1": { "value": "7.1.12. Revenue recognition Ontex Group\u2019s core activity is the sale of goods with as only performance obligation the delivery of goods. As such, the Group recognizes revenue at a point in time when control of the goods is transferred to the customer, generally on delivery of the goods. The Group sells its products to its customers directly, through distributors or agents. This can result in a different moment to recognize revenue. Following delivery to distributors, the distributor has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility when selling the goods and bears the risks of obsolescence and loss in relation to the goods. Next to the sale of goods, distinct services \u2013 mainly customer training or customer assistance services \u2013 are rendered predominantly over the period that the corresponding goods are sold to the customer. Transportation (shipping) is not be considered as a separate performance obligation as control over the goods is only transferred to the customer after the shipment. Payment terms can differ depending on the customer, based on the credit risk and prior payment behavior of the customer. In addition, the geographical location of the company and the customer have an effect on the payment terms. There are no significant financing components in the transaction prices and the considerations are paid in cash. Customer contracts include trade discounts or volume rebates, which are granted to the customer if the delivered quantities exceed a certain threshold. In these cases, the transaction price includes a variable consideration. The effect of the variable consideration on the transaction price is taken into account in revenue recognition by estimating the probability of the realization of the discount or rebate for each contract. Furthermore, the estimated variable consideration is included in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved (constraining the variable consideration). Furthermore, the Group considers all payments made to customers and whether these are related to the revenue generated from the customer. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.7.1.24. Operating segments The Group\u2019s activities are in one segment. There are no other significant classes of business, either singularly or in aggregate. The chief operating decision maker, the Board of Directors, reviews the operating results (defined as EBITDA) and operating plans, and make resource allocation decisions on a company-wide basis; therefore, the Group operates as one segment.7.2.7. Alternative Performance Measures included in the Press releases and other Regulated information Like-for-Like (LFL) revenue Like-for-like revenue is defined as revenue at constant currency excluding change in scope of consolidation or a change due to M&A. 2021 2022 LFL Forex 2022 Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group in \u20ac million Operations Operations Operations Operations Operations Operations Operations Operations Revenue 1,408.7 617.7 2,026.4 1,622.7 748.9 2,371.6 49.5 43.4 92.9 1,672.2 792.3 2,464.5 Adjusted EBITDA margin Adjusted EBITDA margin is adjusted EBITDA divided by revenue.7.4.8. Revenue recognition For the accrual for volume discounts (to customers and from suppliers) some judgements are made on the impact of commercial decisions that will influence the final discount to be received or to be granted.7.6. OPERATING SEGMENTS According to IFRS 8, reportable operating segments are identified based on the \u201cmanagement approach\u201d. This approach stipulates external segment reporting based on the Group\u2019s internal organizational and management structure and on internal financial reporting to the chief operating decision maker. The Group\u2019s activities are in one segment, \u201cHygienic Disposable Products\u201d. There are no other significant classes of business, either singularly or in aggregate. The chief operating decision maker, the Board of Directors, reviews the operating results and operating plans, and make resource allocation decisions on a company-wide basis. Therefore, the Group operates as one segment. Enterprise-wide disclosures about product sales, geographic areas and revenue from major customers are presented below: 7.6.1. Information by product group The key product categories are: \u2022 Baby Care products, principally baby diapers, baby pants and, to a lesser extent, wet wipes; \u2022 Adult Care products, such as adult pants, adult diapers, incontinence towels and bed protection; \u2022 Feminine Care products, such as sanitary towels, panty liners and tampons. Full Year in \u20ac million 2022 2021* Baby Care 765.0 628.8 Adult Care 653.6 571.3 Feminine Care 222.0 180.8 Other 31.6 27.8 Total revenue 1,672.2 1,408.7 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac617.7 million 7.6.2. Information by country The sales in the country of domicile of Ontex Group NV (Belgium) represent less than 4% of Ontex Group NV Revenue. Sales to countries in our top four markets are presented in the table below. The sales in all other individual countries represent less than 10% of the Group\u2019s revenue. Full Year in \u20ac million 2022 2021* United Kingdom 253.8 221.3 USA 205.1 151.4 Italy 180.4 179.9 France 182.7 167.2 Other countries 850.2 689.0 Total revenue 1,672.2 1,408.7 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac617.7 million The following table presents an overview of the non-current assets (property, plant and equipment (PP&E), right to use assets and intangible assets) located in the main countries. The non-current assets in all other individual countries represent less than 10% of the Group\u2019s total non-current assets (excluding financial instruments, deferred tax assets and goodwill). Goodwill is not included in the below table as this is not monitored on a country-basis, but at the divisional level. in \u20ac million December 31, 2022 December 31, 2021 Belgium 133.5 139.0 Poland 68.5 42.9 Mexico 52.4 145.3 Czech Republic 50.0 51.1 Germany 49.7 83.7 Brazil N/A 45.9 Other countries 208.8 213.5 Total 562.9 721.3 7.6.3. Revenue from major customers The Group does not have a single significant customer. In 2022 the largest customer represents 7.8% (2021:8.1%) of the revenue. The 10 largest customers represent 37.1% of 2022 revenue (2021: 37.5%). The figures for 2021 have been adjusted for the reclassification of the Emerging Markets as discontinued operations.", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__205-1": { "value": "7.1.12. Revenue recognition Ontex Group\u2019s core activity is the sale of goods with as only performance obligation the delivery of goods. As such, the Group recognizes revenue at a point in time when control of the goods is transferred to the customer, generally on delivery of the goods. The Group sells its products to its customers directly, through distributors or agents. This can result in a different moment to recognize revenue. Following delivery to distributors, the distributor has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility when selling the goods and bears the risks of obsolescence and loss in relation to the goods. Next to the sale of goods, distinct services \u2013 mainly customer training or customer assistance services \u2013 are rendered predominantly over the period that the corresponding goods are sold to the customer. Transportation (shipping) is not be considered as a separate performance obligation as control over the goods is only transferred to the customer after the shipment. Payment terms can differ depending on the customer, based on the credit risk and prior payment behavior of the customer. In addition, the geographical location of the company and the customer have an effect on the payment terms. There are no significant financing components in the transaction prices and the considerations are paid in cash. Customer contracts include trade discounts or volume rebates, which are granted to the customer if the delivered quantities exceed a certain threshold. In these cases, the transaction price includes a variable consideration. The effect of the variable consideration on the transaction price is taken into account in revenue recognition by estimating the probability of the realization of the discount or rebate for each contract. Furthermore, the estimated variable consideration is included in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved (constraining the variable consideration). Furthermore, the Group considers all payments made to customers and whether these are related to the revenue generated from the customer. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.7.6. OPERATING SEGMENTS According to IFRS 8, reportable operating segments are identified based on the \u201cmanagement approach\u201d. This approach stipulates external segment reporting based on the Group\u2019s internal organizational and management structure and on internal financial reporting to the chief operating decision maker. The Group\u2019s activities are in one segment, \u201cHygienic Disposable Products\u201d. There are no other significant classes of business, either singularly or in aggregate. The chief operating decision maker, the Board of Directors, reviews the operating results and operating plans, and make resource allocation decisions on a company-wide basis. Therefore, the Group operates as one segment. Enterprise-wide disclosures about product sales, geographic areas and revenue from major customers are presented below: 7.6.1. Information by product group The key product categories are: \u2022 Baby Care products, principally baby diapers, baby pants and, to a lesser extent, wet wipes; \u2022 Adult Care products, such as adult pants, adult diapers, incontinence towels and bed protection; \u2022 Feminine Care products, such as sanitary towels, panty liners and tampons. Full Year in \u20ac million 2022 2021* Baby Care 765.0 628.8 Adult Care 653.6 571.3 Feminine Care 222.0 180.8 Other 31.6 27.8 Total revenue 1,672.2 1,408.7 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac617.7 million 7.6.2. Information by country The sales in the country of domicile of Ontex Group NV (Belgium) represent less than 4% of Ontex Group NV Revenue. Sales to countries in our top four markets are presented in the table below. The sales in all other individual countries represent less than 10% of the Group\u2019s revenue. Full Year in \u20ac million 2022 2021* United Kingdom 253.8 221.3 USA 205.1 151.4 Italy 180.4 179.9 France 182.7 167.2 Other countries 850.2 689.0 Total revenue 1,672.2 1,408.7 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac617.7 million The following table presents an overview of the non-current assets (property, plant and equipment (PP&E), right to use assets and intangible assets) located in the main countries. The non-current assets in all other individual countries represent less than 10% of the Group\u2019s total non-current assets (excluding financial instruments, deferred tax assets and goodwill). Goodwill is not included in the below table as this is not monitored on a country-basis, but at the divisional level. in \u20ac million December 31, 2022 December 31, 2021 Belgium 133.5 139.0 Poland 68.5 42.9 Mexico 52.4 145.3 Czech Republic 50.0 51.1 Germany 49.7 83.7 Brazil N/A 45.9 Other countries 208.8 213.5 Total 562.9 721.3 7.6.3. Revenue from major customers The Group does not have a single significant customer. In 2022 the largest customer represents 7.8% (2021:8.1%) of the revenue. The 10 largest customers represent 37.1% of 2022 revenue (2021: 37.5%). The figures for 2021 have been adjusted for the reclassification of the Emerging Markets as discontinued operations.", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__77": { "value": "7.1.12. Revenue recognition Ontex Group\u2019s core activity is the sale of goods with as only performance obligation the delivery of goods. As such, the Group recognizes revenue at a point in time when control of the goods is transferred to the customer, generally on delivery of the goods. The Group sells its products to its customers directly, through distributors or agents. This can result in a different moment to recognize revenue. Following delivery to distributors, the distributor has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility when selling the goods and bears the risks of obsolescence and loss in relation to the goods. Next to the sale of goods, distinct services \u2013 mainly customer training or customer assistance services \u2013 are rendered predominantly over the period that the corresponding goods are sold to the customer. Transportation (shipping) is not be considered as a separate performance obligation as control over the goods is only transferred to the customer after the shipment. Payment terms can differ depending on the customer, based on the credit risk and prior payment behavior of the customer. In addition, the geographical location of the company and the customer have an effect on the payment terms. There are no significant financing components in the transaction prices and the considerations are paid in cash. Customer contracts include trade discounts or volume rebates, which are granted to the customer if the delivered quantities exceed a certain threshold. In these cases, the transaction price includes a variable consideration. The effect of the variable consideration on the transaction price is taken into account in revenue recognition by estimating the probability of the realization of the discount or rebate for each contract. Furthermore, the estimated variable consideration is included in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved (constraining the variable consideration). Furthermore, the Group considers all payments made to customers and whether these are related to the revenue generated from the customer. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__79": { "value": "Customer contracts include trade discounts or volume rebates, which are granted to the customer if the delivered quantities exceed a certain threshold. In these cases, the transaction price includes a variable consideration. The effect of the variable consideration on the transaction price is taken into account in revenue recognition by estimating the probability of the realization of the discount or rebate for each contract. Furthermore, the estimated variable consideration is included in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved (constraining the variable consideration). Furthermore, the Group considers all payments made to customers and whether these are related to the revenue generated from the customer.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__209-1": { "value": "7.1.13. Financial assets The Group classifies its financial assets in the following categories: financial assets at fair value and financial assets at amortized cost. The classification depends on the entity\u2019s business model for managing the financial assets and the contractual terms of the cash flows. Management determines the classification of its financial assets at initial recognition. Regular purchases and sales of financial assets are recognized on the trade date \u2013 the date on which the Group commits to purchase or sell an asset. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Financial assets (such as loans, trade and other receivables, cash and cash equivalents) are subsequently measured at amortized cost using the effective interest method, less any impairment if they are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Trade and other receivables after and within one year are recognized initially at fair value and subsequently measured at amortized cost, i.e. at the net present value of the receivable amount, using the effective interest rate method, less allowances for impairment. The Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost. For trade receivables, the Group applies the simplified approach permitted by IFRS 9 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables. The amount of the allowance is deducted from the carrying amount of the asset and is recognized in the income statement within \u2018Sales and marketing expenses\u2019. Trade receivables are no longer recognized when (1) the rights to receive cash flows from the trade receivables have expired, (2) the Group has transferred substantially all risks and rewards related to the receivables. The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of a financial asset other than in its entirety (e.g. when the Group retains an option to repurchase part of a transferred asset), the Group allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts.7.5.7. Credit risk Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to corporate customers, including outstanding receivables and committed transactions. The Group assesses the credit quality of the customer, taking into account its financial position, past experience and other factors based on which individual risk limits are set in accordance with the limits set by business managers. Historical default rates have been below 1% for 2022 and 2021. Trade receivables are spread over different countries and counterparties and there is no large concentration with one or a few counterparties. We refer to note 7.13 for the aging of the receivables and the doubtful receivables. All financial instruments are held at banks and financial institutions with a credit rating of at least A. The maximum exposure to credit risk at the reporting date is the carrying amount as presented in the table above in the note 7.5.1. 7.13. TRADE RECEIVABLES, PREPAID EXPENSES AND OTHER RECEIVABLES The current trade and other receivables are detailed below: in \u20ac million December 31, 2022 December 31, 2021 Trade receivables 195.9 278.4 Less: allowance for impairment of trade receivables (4.1) (8.6) Trade receivables - net 191.8 269.8 Prepayments 4.8 8.7 Other amounts receivable 32.1 60.5 Prepaid expenses and other receivables 36.8 69.2 Trade and other receivables - Current 228.6 339.0 Other amounts receivable include recoverable VAT for an amount of \u20ac29.4 million for 2022 (2021: \u20ac55.9 million). The decrease compared to prior year is explained by the reclassification to assets held for sale of the Emerging Markets. The fair value of the current receivables approximates their carrying amounts. The aging of the trade receivables (net) at December 31 is as follows: in \u20ac million December 31, 2022 December 31, 2021 Not due 164.7 223.6 0 to 30 days 16.6 21.2 31 to 60 days 4.4 8.0 61 to 90 days 1.5 6.7 Over 90 days 4.5 10.2 Total 191.8 269.8 The Group doesn\u2019t apply systematically external credit rating. The carrying amount of the Group\u2019s trade receivables (net) are denominated in the following currencies: in \u20ac million December 31, 2022 December 31, 2021 EUR 71.8 70.6 PLN 34.5 35.0 USD 29.3 32.9 GBP 26.9 19.2 RUB 16.5 13.4 BRL - 33.1 MXN - 27.2 DZD - 10.1 TRY - 9.2 Other 12.8 18.9 Total 191.8 269.8 During the year, the payment terms for the receivables have neither deteriorated nor been renegotiated that affect the overall payment terms. The maximum credit risk exposure at the end of the reporting period is the carrying value of each caption of receivables mentioned above. The Group does not hold any collateral as security. An impairment analysis of trade receivables is done based on expected losses, next to individual assessments, but there are no significant impairments. Movements on the Group allowance for impairment of trade receivables are as follows: in \u20ac million December 31, 2022 December 31, 2021 Opening Balance 8.6 8.2 Allowance for receivable impairment 0.3 1.3 Receivables written off during the year as uncollectible (0.3) (0.1) Unused amounts reversed (0.1) (0.9) Foreign exchange differences 0.1 0.1 Reclassified as held for sale (4.4) - At December 31 4.1 8.6 The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The creation and the release of the allowance for impaired receivables have been included in \u2018Sales and marketing expense\u2019 in the income statement. The Group has a long term, standing non-recourse syndicate factoring agreement with BNP Paribas Fortis Factor and KBC Commercial Finance. The Agreement provides us with a maximum credit facility of up to \u20ac200.0 million and up to 95% of the amount of the approved outstanding receivables on all debtors that we transfer to the Factor. The remaining 5% of the relevant receivables is paid by the Factor to us upon receipt of payment from the relevant debtor, upon which also the remaining balance of the receivable is derecognized. Financing per debtor is capped at 10% of the aggregate amount of all approved outstanding receivables transferred to the Factor. Any financing within the credit limit is non-recourse to us. Next to the above-mentioned Group factoring agreement a number of local non-recourse agreements are in place at local level. Bilateral factoring agreements are in place for Serenity (Italian subsidiary) with Ifitalia, Banca Sistema and BFF, and Ontex Russia has agreements with AK BARS BANK PJSC. As at December 31, 2022, \u20ac165.5 million of financing was obtained through the factoring programs (\u20ac146.6 million in 2021), this is in addition to \u20ac3.4 million of financing which was obtained through the use of supply chain financing programs offered by our customers. The late payment risk related to the factoring has been assessed as immaterial at closing 2022 and 2021. In accordance with IFRS 9 Financial instruments, all non-recourse trade receivables, included in these factoring programs, are derecognized for the non-continuing involvement part. .", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__81-1": { "value": "7.1.13. Financial assets The Group classifies its financial assets in the following categories: financial assets at fair value and financial assets at amortized cost. The classification depends on the entity\u2019s business model for managing the financial assets and the contractual terms of the cash flows. Management determines the classification of its financial assets at initial recognition. Regular purchases and sales of financial assets are recognized on the trade date \u2013 the date on which the Group commits to purchase or sell an asset. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Financial assets (such as loans, trade and other receivables, cash and cash equivalents) are subsequently measured at amortized cost using the effective interest method, less any impairment if they are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Trade and other receivables after and within one year are recognized initially at fair value and subsequently measured at amortized cost, i.e. at the net present value of the receivable amount, using the effective interest rate method, less allowances for impairment. The Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost. For trade receivables, the Group applies the simplified approach permitted by IFRS 9 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables. The amount of the allowance is deducted from the carrying amount of the asset and is recognized in the income statement within \u2018Sales and marketing expenses\u2019. Trade receivables are no longer recognized when (1) the rights to receive cash flows from the trade receivables have expired, (2) the Group has transferred substantially all risks and rewards related to the receivables. The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of a financial asset other than in its entirety (e.g. when the Group retains an option to repurchase part of a transferred asset), the Group allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts.Financial instruments are either classified as financial liabilities or equity. The financial instrument is included in equity if, and only if, the instrument does not include a contractual obligation to deliver cash or another financial asset or to exchange financial assets or liabilities under conditions that are potentially unfavorable to the Group, and if the instrument will or may be settled in a fixed number of the Group\u2019s own equity instruments.7.1.22. Derivative financial instruments The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate, foreign exchange rate and commodity price risks and equity price risks associated with share-based payments, including foreign exchange forward contracts, commodity hedging contracts and interest rate CAP\u2019s and SWAP\u2019s. Derivatives are accounted for in accordance with IFRS 9. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The fair values of various derivative instruments are disclosed in note 7.5 \u2018Financial Instruments and Financial Risk Management\u2019. The full fair value of a derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. If no hedge accounting is applied, the Group recognizes all gains or losses resulting from changes in fair value of derivatives in the consolidated income statement within Other operating income/expense to the extent that they relate to operating activities and within Net finance cost to the extent that they relate to the financing activities of the Group (e.g. interest rate swaps relating to the floating rate borrowings).7.1.23. Hedge accounting The Group designates certain hedging instruments, which include derivatives in respect of foreign currency risk and commodities, as cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss and is included in the \u2018other operating income/(expense)' line item. Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the consolidated income statement as the recognized hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously recognized in other comprehensive income and accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__80": { "value": "7.1.13. Financial assets The Group classifies its financial assets in the following categories: financial assets at fair value and financial assets at amortized cost. The classification depends on the entity\u2019s business model for managing the financial assets and the contractual terms of the cash flows. Management determines the classification of its financial assets at initial recognition. Regular purchases and sales of financial assets are recognized on the trade date \u2013 the date on which the Group commits to purchase or sell an asset. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Financial assets (such as loans, trade and other receivables, cash and cash equivalents) are subsequently measured at amortized cost using the effective interest method, less any impairment if they are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Trade and other receivables after and within one year are recognized initially at fair value and subsequently measured at amortized cost, i.e. at the net present value of the receivable amount, using the effective interest rate method, less allowances for impairment. The Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost. For trade receivables, the Group applies the simplified approach permitted by IFRS 9 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables. The amount of the allowance is deducted from the carrying amount of the asset and is recognized in the income statement within \u2018Sales and marketing expenses\u2019. Trade receivables are no longer recognized when (1) the rights to receive cash flows from the trade receivables have expired, (2) the Group has transferred substantially all risks and rewards related to the receivables. The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received. On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of a financial asset other than in its entirety (e.g. when the Group retains an option to repurchase part of a transferred asset), the Group allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fair values of those parts.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__82": { "value": "At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__210-1": { "value": "The Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost. For trade receivables, the Group applies the simplified approach permitted by IFRS 9 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables. The amount of the allowance is deducted from the carrying amount of the asset and is recognized in the income statement within \u2018Sales and marketing expenses\u2019. Trade receivables are no longer recognized when (1) the rights to receive cash flows from the trade receivables have expired, (2) the Group has transferred substantially all risks and rewards related to the receivables.7.5.7. Credit risk Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to corporate customers, including outstanding receivables and committed transactions. The Group assesses the credit quality of the customer, taking into account its financial position, past experience and other factors based on which individual risk limits are set in accordance with the limits set by business managers. Historical default rates have been below 1% for 2022 and 2021. Trade receivables are spread over different countries and counterparties and there is no large concentration with one or a few counterparties. We refer to note 7.13 for the aging of the receivables and the doubtful receivables. All financial instruments are held at banks and financial institutions with a credit rating of at least A. The maximum exposure to credit risk at the reporting date is the carrying amount as presented in the table above in the note 7.5.1. During the year, the payment terms for the receivables have neither deteriorated nor been renegotiated that affect the overall payment terms. The maximum credit risk exposure at the end of the reporting period is the carrying value of each caption of receivables mentioned above. The Group does not hold any collateral as security. An impairment analysis of trade receivables is done based on expected losses, next to individual assessments, but there are no significant impairments. Movements on the Group allowance for impairment of trade receivables are as follows: in \u20ac million December 31, 2022 December 31, 2021 Opening Balance 8.6 8.2 Allowance for receivable impairment 0.3 1.3 Receivables written off during the year as uncollectible (0.3) (0.1) Unused amounts reversed (0.1) (0.9) Foreign exchange differences 0.1 0.1 Reclassified as held for sale (4.4) - At December 31 4.1 8.6 The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The creation and the release of the allowance for impaired receivables have been included in \u2018Sales and marketing expense\u2019 in the income statement.7.13. TRADE RECEIVABLES, PREPAID EXPENSES AND OTHER RECEIVABLES The current trade and other receivables are detailed below: in \u20ac million December 31, 2022 December 31, 2021 Trade receivables 195.9 278.4 Less: allowance for impairment of trade receivables (4.1) (8.6) Trade receivables - net 191.8 269.8 Prepayments 4.8 8.7 Other amounts receivable 32.1 60.5 Prepaid expenses and other receivables 36.8 69.2 Trade and other receivables - Current 228.6 339.0", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__66": { "value": "The Group assesses on a forward-looking basis the expected credit losses associated with its financial assets carried at amortized cost. For trade receivables, the Group applies the simplified approach permitted by IFRS 9 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables. The amount of the allowance is deducted from the carrying amount of the asset and is recognized in the income statement within \u2018Sales and marketing expenses\u2019. Trade receivables are no longer recognized when (1) the rights to receive cash flows from the trade receivables have expired, (2) the Group has transferred substantially all risks and rewards related to the receivables.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__211-1": { "value": "On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or lossActuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise.The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss and is included in the \u2018other operating income/(expense)' line item. Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the consolidated income statement as the recognized hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously recognized in other comprehensive income and accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.6The cumulative foreign exchange losses recognized in other comprehensive income in relation to the discontinued operations as at December 31, 2022 were \u20ac302.4 million. RECONCILIATION OF NET (LIABILITY)/ASSET IN STATEMENT OF FINANCIAL POSITION Net (liability)/asset at beginning of year (18.9) (22.8) Transfer to liability held for sale 2.0 - Defined benefit cost included in the income statement (2.2) (2.6) Net interest expense (0.2) (0.2) Total remeasurements included in OCI 6.5 4.6 Employer contributions 1.6 1.9 Effect of changes in foreign exchange rates - 0.3 Net (liability)/asset at end of year (11.1) (18.9) Unfunded versus Funded Part of DBO from plans that are wholly unfunded (11.1) (18.9)", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__213-1": { "value": "7.1.14. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.7.14. CASH AND CASH EQUIVALENTS The net cash position as presented in the consolidated statement of cash flows is as follows: in \u20ac million December 31, 2022 December 31, 2021 Short-term bank deposits (no longer than 3 months) 15.4 58.3 Cash at bank and on hand 133.7 188.4 Total 149.1 246.7", "dimensions": { "concept": "ifrs-full:DisclosureOfDepositsFromBanksExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__212-1": { "value": "7.1.14. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.7.14. CASH AND CASH EQUIVALENTS The net cash position as presented in the consolidated statement of cash flows is as follows: in \u20ac million December 31, 2022 December 31, 2021 Short-term bank deposits (no longer than 3 months) 15.4 58.3 Cash at bank and on hand 133.7 188.4 Total 149.1 246.7 The carrying amount of the cash and cash equivalents is a reasonable approximation of their fair value. Ontex Russia has cash that can only be used to a certain extent by other entities within the group but is accessible on demand by the subsidiary and is therefore included in cash and cash equivalents in the statement of financial position. The credit quality of the banks and financial institutions the Group is working with is mentioned in the following table: in \u20ac million December 31, 2022 December 31, 2021 AA 1.6 1.7 A 142.8 209.5 BBB 1.1 5.3 BB 1.4 17.9 B - 7.5 No credit rating 2.2 4.8 Total 149.1 246.7 .", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__83": { "value": "7.1.14. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__216-1": { "value": "7.1.15. Share capital Ordinary shares are classified as equity. Where any Group company purchases the company\u2019s equity share capital (treasury shares), the consideration paid is deducted from equity attributable to owners of the company until the shares are cancelled or reissued. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.7.15. SHARE CAPITAL The capital of \u20ac1,208.0 million is represented by 82,347,218 (authorized) shares, of which 1,270,500 treasury shares (2021: 1,381,140 treasury shares). As such, the ordinary shares held by third parties amount to 81,076,718 shares (2021: 80,966,078). The issued capital is fully paid and consists of ordinary shares without par value. .", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__215-1": { "value": "7.1.15. Share capital Ordinary shares are classified as equity. Where any Group company purchases the company\u2019s equity share capital (treasury shares), the consideration paid is deducted from equity attributable to owners of the company until the shares are cancelled or reissued. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Financial instruments are either classified as financial liabilities or equity. The financial instrument is included in equity if, and only if, the instrument does not include a contractual obligation to deliver cash or another financial asset or to exchange financial assets or liabilities under conditions that are potentially unfavorable to the Group, and if the instrument will or may be settled in a fixed number of the Group\u2019s own equity instruments.7.15. SHARE CAPITAL The capital of \u20ac1,208.0 million is represented by 82,347,218 (authorized) shares, of which 1,270,500 treasury shares (2021: 1,381,140 treasury shares). As such, the ordinary shares held by third parties amount to 81,076,718 shares (2021: 80,966,078). The issued capital is fully paid and consists of ordinary shares without par value. .", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__214-1": { "value": "7.1.15. Share capital Ordinary shares are classified as equity. Where any Group company purchases the company\u2019s equity share capital (treasury shares), the consideration paid is deducted from equity attributable to owners of the company until the shares are cancelled or reissued. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Financial instruments are either classified as financial liabilities or equity. The financial instrument is included in equity if, and only if, the instrument does not include a contractual obligation to deliver cash or another financial asset or to exchange financial assets or liabilities under conditions that are potentially unfavorable to the Group, and if the instrument will or may be settled in a fixed number of the Group\u2019s own equity instruments.The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.67.15. SHARE CAPITAL The capital of \u20ac1,208.0 million is represented by 82,347,218 (authorized) shares, of which 1,270,500 treasury shares (2021: 1,381,140 treasury shares). As such, the ordinary shares held by third parties amount to 81,076,718 shares (2021: 80,966,078). The issued capital is fully paid and consists of ordinary shares without par value. .", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__85": { "value": "7.1.15. Share capital Ordinary shares are classified as equity. Where any Group company purchases the company\u2019s equity share capital (treasury shares), the consideration paid is deducted from equity attributable to owners of the company until the shares are cancelled or reissued. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__84": { "value": "7.1.15. Share capital Ordinary shares are classified as equity. Where any Group company purchases the company\u2019s equity share capital (treasury shares), the consideration paid is deducted from equity attributable to owners of the company until the shares are cancelled or reissued. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Financial instruments are either classified as financial liabilities or equity. The financial instrument is included in equity if, and only if, the instrument does not include a contractual obligation to deliver cash or another financial asset or to exchange financial assets or liabilities under conditions that are potentially unfavorable to the Group, and if the instrument will or may be settled in a fixed number of the Group\u2019s own equity instruments.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__218-1": { "value": "7.1.16. Government grants Grants from governments are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the assets to which they relate and are credited to the income statement on a straight-line basis over the expected lives of the related assets.7.9. GOODWILL AND INTANGIBLE ASSETS IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2022 Opening net book amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 Hyperinflation opening net book amount 9.5 0.0 0.0 0.0 0.0 9.5 Restated opening net book amount 1,049.4 15.4 1.7 19.2 9.5 1,095.2 Additions 0.0 0.0 0.2 6.7 4.5 11.3 Transfers 0.0 0.0 3.7 0.9 (4.5) 0.1 Reclassified as held for sale (170.6) (15.4) 0.0 0.0 0.2 (185.8) Amortization expense 0.0 0.0 (1.3) (7.9) 0.0 (9.2) Impairment (84.1) 0.0 (0.2) 0.0 0.0 (84.3) Exchange differences 3.2 (0.0) 0.0 (0.0) 0.0 3.2 Closing carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 At December 31, 2022 Cost 862.6 0.0 9.4 67.5 23.7 963.4 Accumulated amortization and impairment (64.7) (0.0) (5.3) (48.6) (14.1) (132.7) Carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2021 Opening net book amount 1,106.7 23.2 3.7 20.8 5.8 1,160.2 Additions 0.0 0.0 0.1 7.0 5.2 12.3 Transfers 0.0 0.0 1.1 0.1 (0.9) 0.3 Disposals 0.0 0.0 (0.1) (0.0) 0.0 (0.1) Amortization expense 0.0 (1.6) (1.0) (8.2) (0.0) (10.8) Impairment (66.1) (7.1) (2.1) (0.5) (0.5) (76.3) Exchange differences (0.7) 0.8 0.0 (0.0) 0.0 0.1 Closing carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 At December 31, 2021 Cost 1,106.8 31.2 5.5 62.2 23.7 1,229.3 Accumulated amortization and impairment (66.9) (15.8) (3.8) (43.0) (14.1) (143.6) Carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.77.10. PROPERTY, PLANT AND EQUIPMENT Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2022 Opening carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 Hyperinflation opening net book amount 0.0 6.4 0.0 0.0 0.0 6.5 Restated opening net book amount 121.4 403.3 1.0 0.6 53.6 579.9 Additions 4.9 33.6 0.3 0.1 7.0 45.9 Transfers 2.0 21.6 0.1 0.0 (23.2) 0.6 Disposals (0.3) (0.7) 0.0 0.0 (0.1) (1.1) Depreciation expense (4.4) (35.2) (0.3) (0.2) 0.0 (40.0) Impairment 0.0 (4.1) (0.0) 0.0 (0.2) (4.4) Capital grants received 0.0 (0.4) 0.0 0.0 0.0 (0.4) Exchange differences 0.8 7.2 0.0 0.0 0.9 9.0 Reclassified as held for sale (46.7) (124.9) (0.3) (0.2) 2.5 (169.5) Closing carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 At December 31, 2022 Cost 124.1 587.5 3.3 3.3 40.6 758.8 Accumulated depreciation and impairment ( 46.3) ( 287.1) ( 2.3) ( 2.9) 0.0 ( 338.7) Carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2021 Opening carrying amount 123.1 407.3 1.3 1.0 83.2 615.9 Additions 0.9 18.1 0.0 0.0 25.3 44.2 Transfers 1.0 54.1 0.0 0.1 (55.6) (0.3) Disposals (1.2) (0.3) 0.0 (0.1) (0.1) (1.7) Depreciation expense (5.7) (46.0) (0.4) (0.5) 0.0 (52.5) Impairment (1.7) (39.5) (0.0) 0.0 (0.2) (41.4) Capital grants received 0.0 (0.2) 0.0 0.0 0.0 (0.2) Exchange differences 2.3 3.2 (0.0) 0.0 1.0 6.5 Reclassified as held for sale 2.7 0.2 (0.0) 0.0 0.0 2.9 Closing carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 At December 31, 2021 Cost 171.7 743.6 3.5 3.9 53.6 976.3 Accumulated depreciation and impairment ( 50.3) ( 346.7) ( 2.5) ( 3.4) 0.0 ( 402.9) Carrying amount 121.4 396.9 1.0 0.6 53.6 573.4", "dimensions": { "concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__87": { "value": "7.1.16. Government grants Grants from governments are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the assets to which they relate and are credited to the income statement on a straight-line basis over the expected lives of the related assets.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__219-1": { "value": "7.1.17. Employee benefits Short-term employee benefits Short-term employee benefits are recorded as an expense in the income statement in the period in which the services have been rendered. Any unpaid compensation is included in \u2018Employee benefit liabilities\u2019 in the statement of financial position. Post-employment benefits Group companies operate various pension schemes. Most of the schemes are unfunded. Some schemes are funded through payments to insurance companies or pension funds, determined by periodic actuarial calculations. The Group has both defined benefit and defined contribution plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise. Past-service costs are recognized immediately in income. The net interest cost relating to the defined benefit plans is recognized within financial expenses. For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. Long-term employee benefits Unfunded obligations arising from long-term benefits are provided for using the projected unit credit method. Termination benefits Early termination obligations are recognized as a liability when the Group is \u2018demonstrably committed\u2019 to terminating the employment before the normal retirement date. The Group is \u2018demonstrably committed\u2019 when, and only when, it has a detailed formal plan for the early termination without realistic possibility of withdrawal. Where such benefits are long term, they are discounted using the same rate as above for defined benefit obligations.7.4.7. Employee benefits The carrying amount of the Group\u2019s employee benefit obligations is determined on an actuarial basis using certain assumptions. One particularly sensitive assumption used for determining the net cost of the benefits granted is the discount rate. Any change to this assumption will affect the carrying amount of those obligations. The discount rate depends on the duration of the benefit, i.e. the average duration of the engagements, weighted with the present value of the costs linked to those engagements. According to IAS 19, the discount rate should correspond to the rate of high-quality corporate bonds of similar term to the benefits valued and in the same currency.7.18. EMPLOYEE BENEFIT LIABILITIES The Group grants its working and retired personnel post-employment benefits, long-term benefits, and termination benefits. These benefits have been valued in conformity with IAS 19. The related IAS 19 liability recognized in the statement of financial position can be analyzed as follows: in \u20ac million December 31, 2022 December 31, 2021 Post-employment benefits 12.5 20.1 Long-term benefits 1.1 1.9 Employee benefit liabilities 13.5 22.0 Short-term employee benefit liabilities 40.4 46.2 Net liability 54.0 68.2 The calculation of the liability is based on actuarial assumptions that have been determined on the various statement of financial position dates. They are based not only on macro-economic factors valid for the dates in question but also on the specific characteristics of the various schemes evaluated. They represent the Group\u2019s best estimate for the future. They are periodically reviewed in accordance with the evolution of the markets and available statistics. Post-employment benefits Ontex makes payments on a defined contribution basis to both state and private pension arrangements across our operations. In addition, Ontex operates a defined benefit insurance scheme in Belgium and Ontex also has an obligation to make severance payments to employees upon their retirement in France. Ontex also operates several unfunded pension arrangements in respect of our German operations. The German operations do not fund the pension arrangements but reflect pension scheme liabilities in company accounts on an IAS 19 basis. The pension benefits are paid by the relevant company as they fall due. The Group operates a couple of defined contribution (DC) plans which receive fixed contributions. The Group\u2019s legal or constructive obligation for these plans is limited to the contributions. The expense recognized in the current period in relation to these contributions amounts to \u20ac4.1 million (see also note 7.22 below; 2021: \u20ac4.9 million). The 2021 amount has been restated following the classification of the Emerging Markets as discontinued operations. In Belgium, the defined contribution (DC) plans are subject to a minimum guaranteed rate of return by law and are hence treated as defined benefit (DB) plans. In practice, this guarantee is mainly covered by insurance companies. As there is no deficit as per December 31, 2022, no liability has been recognized (2021: nil). The accumulated reserves of these plans are equal to the assets. There are no risks to which the plan exposes the entity, focusing on any unusual, entity-specific or plan-specific risks, and of any significant concentrations of risk. Reconciliation of the post-employment employee benefit liabilities in \u20ac million December 31, 2022 December 31, 2021 RECOGNITION OF THE OBLIGATION Defined benefit obligation (DBO) at end of period (26.2) (33.6) Fair value of plan assets at end of period 15.2 14.7 Funded status (11.1) (18.9) Net (liability)/asset in statement of financial position (11.1) (18.9) Defined benefit cost Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost recognized in Income Statement (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Interest income on plan assets 0.2 0.1 Net interest cost (0.2) (0.2) Pension expense (2.4) (2.8) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF THE OBLIGATION Defined benefit obligation (DBO) at beginning of year (33.6) (36.3) Transfer to liability held for sale 2.4 - Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Participant contributions (0.1) (0.1) Administrative expenses included in the DBO 0.1 0.1 Taxes included in the DBO 0.1 0.2 Benefit payments from plan 0.4 0.2 Benefit payments from employer 0.5 0.5 Effect of changes in financial assumptions 5.4 2.5 Effect of experience adjustments 1.1 2.0 Effect of changes in foreign exchange rates - 0.3 Defined benefit obligation (DBO) at end of year (26.2) (33.6) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF PLAN ASSETS AT FAIR VALUE Fair value of plan assets at beginning of year 14.7 13.5 Transfer to liability held for sale (0.4) - Interest income 0.2 0.1 Employer contribution 1.6 1.9 Plan participants' contributions 0.1 0.1 Benefit payments from plan (0.4) (0.2) Benefit payments from employer (0.5) (0.5) Administrative expenses included in the DBO (0.1) (0.1) Taxes paid from plan assets (0.1) (0.2) Return on plan assets (excluding interest income) 0.0 0.1 Fair value of plan assets at end of year 15.2 14.7 in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF NET (LIABILITY)/ASSET IN STATEMENT OF FINANCIAL POSITION Net (liability)/asset at beginning of year (18.9) (22.8) Transfer to liability held for sale 2.0 - Defined benefit cost included in the income statement (2.2) (2.6) Net interest expense (0.2) (0.2) Total remeasurements included in OCI 6.5 4.6 Employer contributions 1.6 1.9 Effect of changes in foreign exchange rates - 0.3 Net (liability)/asset at end of year (11.1) (18.9) Unfunded versus Funded Part of DBO from plans that are wholly unfunded (11.1) (18.9) The plan assets consist of insurance contracts. Expected contributions to post-employment benefit plans for the year ending December 31, 2023 are \u20ac1.5 million. Significant actuarial assumptions COUNTRY December 31, 2022 Belgium Germany France Italy 3,35% / 3,30% / Discount rate 3.55% 3.35% 3.45% 3,55% 3,35% / 3,30% / Expected Interest Income 3.55% 3.35% 3.45% 3,55% 0.00% / N/A / Salary increase rate (on top of inflation) 3.50% 3.50% N/A N/A 2,25% / 0,00% / Rate of inflation 2.25% 2.55% 2.50% 2,25% MR FR with age INSEE Mortality table correction minus Heubeck 2018 G IPS55 2017/2019 5 years 5% p.a. flat up to age 50 and 2% Only Jubilee: p.a. flat from age 10% of Client's table by 51 to retirement Turnover table/rates None employees 60 category including an years old and allowance for younger advance payments Disability table/rates N/A N/A N/A N/A Weighted average durations 12.7 11.3 11.6 10.6 COUNTRY December 31, 2021 Turkey Mexico Pakistan Belgium Germany France Italy 0,70% / 0,90% / Discount rate 19.60% 7.76% 10.75% 1.20% 0.95% 0.90% 1,00% 0,70% / 0,90% / Expected Interest Income 19.60% 7.76% 10.75% 1.20% 0.95% 0.90% 1,00% 0.00% / N/A / Salary increase rate (on top of inflation) 13.00% 4.54% 10.75% 3.25% 2.50% N/A N/A 1,75% / 0,00% / Rate of inflation 13.00% 4.00% 8.98% 1.75% 1.75% 1.50% 1,75% State Life Insurance MR FR with age INSEE Mortality table C.S.O. 1980 EMSSA09 Corporation correction minus Heubeck 2018 G IPS55 2016/2018 (SLIC) 2001-5 years 2005 5% p.a. flat up to age 50 and 2% Only Jubilee: p.a. flat from age Based on 10% of Company Client's table by 51 to retirement Turnover table/rates company 3.7% None employees 60 specific category including an experience years old and allowance for younger advance payments Disability table/rates N/A N/A N/A N/A N/A N/A N/A Weighted average durations 7.3 13.8 53.7 16.2 8.9 12.6 10.4 There are no unusual entity-specific or plan-specific risks to which the plan exposes the entity, neither are there any significant concentrations of risk. The sensitivity analyses below have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. December 31, 2022 in \u20ac million Belgium Germany France Italy Discount rate - 0,25bp (17.5) (6.8) (1.7) (1.6) Discount rate + 0.25bp 17.2 6.5 1.6 1.6 Salary increase - 0.25bp (0.1) (5.9) (1.6) (1.6) Salary increase + 0.25bp 0.1 5.9 1.7 1.6 December 31, 2021 in \u20ac million Turkey Mexico Pakistan Belgium Germany France Italy Discount rate - 0,25bp (0.9) (1.5) (0.5) (21.3) (9.4) (1.9) (1.9) Discount rate + 0.25bp 0.8 1.4 0.4 19.7 9.0 1.8 1.8 Salary increase - 0.25bp (0.8) (1.5) (0.4) (20.3) (9.2) (1.8) (1.8) Salary increase + 0.25bp 0.9 1.5 0.5 20.6 9.2 1.9 1.8 Post-Employment Benefits by Country December 31, 2022 in \u20ac million Belgium Germany France Italy RECOGNITION OF THE OBLIGATION Defined benefit obligation (DBO) at end of period (16.5) (6.5) (1.6) (1.6) Fair value of plan assets at end of period 15.2 - - - Funded status (1.3) (6.5) (1.6) (1.6) Net (liability)/asset in statement of financial position (1.3) (6.5) (1.6) (1.6) December 31, 2021 in \u20ac million Turkey Mexico Pakistan Belgium Germany France Italy RECOGNITION OF THE OBLIGATION Defined benefit obligation (DBO) at end of period (0.6) (1.5) (0.4) (19.2) (8.3) (1.8) (1.8) Fair value of plan assets at end of period - - 0.4 14.4 - - - Funded status (0.6) (1.5) (0.0) (4.9) (8.3) (1.8) (1.8) Net (liability)/asset in statement of financial position (0.6) (1.5) (0.0) (4.9) (8.3) (1.8) (1.8) .7.22. EMPLOYEE BENEFIT EXPENSES Full Year in \u20ac million 2022 2021* Wages and salaries (193.7) (185.8) Social security costs (44.8) (45.7) Defined benefit plans - Service cost (2.2) (2.4) Defined contribution costs (4.1) (4.9) Other employee benefit expenses (40.8) (33.3) Total employee benefit expenses (285.6) (272.2) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac81.1 million. The FTEs listed in the table below only contains the employees part of the continuing operations and therefore deviates significantly from the number of employees included in section 1.2. In Full-Time Equivalents 2022 2021* Average number of total employees 5,351 5,370 Of which: - workers 3,323 3,486 - employees 1,966 1,824 - management 62 59 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of 3.974 average number of total employees. 7.25. EXPENSES BY NATURE Expenses by nature represent an alternative disclosure for amounts included in the consolidated income statement. There are classified under \u2018Cost of sales\u2019, \u2018Distribution expenses\u2019, \u2018Sales and marketing expenses\u2019, \u2018General administrative expenses\u2019 and \u2018Other operating income / expense (net)\u2019 in respect of the years ended December 31: Full Year in \u20ac million Note 2022 2021* Changes in inventories 2.8 (2.8) Raw materials and consumables purchased (1,048.1) (777.0) Employee benefit expenses 22 (285.6) (272.2) Depreciation and amortization 9, 10, 11 (70.4) (65.7) Rendered services (223.9) (178.5) Lease expenses 11 (18.5) (15.0) Other income / (expenses) 23 5.1 (7.0) Total cost of sales, distribution expenses, sales and marketing expenses, general administrative expenses and other operating (1,638.6) (1,318.1) income / (expense) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac623.7 million.7.31.5. Key management compensation Remuneration of the CEO Full Year in \u20ac million 2022 2021 Fixed and variable remuneration 2.0 1.6 Remuneration of the Executive Team (excluding the CEO) Full Year in \u20ac million 2022 2021 Fixed remuneration 3.0 4.5 Variable remuneration 1.3 1.5 Other remuneration 0.6 0.6 Total 4.9 6.6 The other remuneration relates mainly to post-employment benefit plans.", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__88-1": { "value": "7.1.17. Employee benefits Short-term employee benefits Short-term employee benefits are recorded as an expense in the income statement in the period in which the services have been rendered. Any unpaid compensation is included in \u2018Employee benefit liabilities\u2019 in the statement of financial position. Post-employment benefits Group companies operate various pension schemes. Most of the schemes are unfunded. Some schemes are funded through payments to insurance companies or pension funds, determined by periodic actuarial calculations. The Group has both defined benefit and defined contribution plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise. Past-service costs are recognized immediately in income. The net interest cost relating to the defined benefit plans is recognized within financial expenses. For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. Long-term employee benefits Unfunded obligations arising from long-term benefits are provided for using the projected unit credit method. Termination benefits Early termination obligations are recognized as a liability when the Group is \u2018demonstrably committed\u2019 to terminating the employment before the normal retirement date. The Group is \u2018demonstrably committed\u2019 when, and only when, it has a detailed formal plan for the early termination without realistic possibility of withdrawal. Where such benefits are long term, they are discounted using the same rate as above for defined benefit obligations.7.4.7. Employee benefits The carrying amount of the Group\u2019s employee benefit obligations is determined on an actuarial basis using certain assumptions. One particularly sensitive assumption used for determining the net cost of the benefits granted is the discount rate. Any change to this assumption will affect the carrying amount of those obligations. The discount rate depends on the duration of the benefit, i.e. the average duration of the engagements, weighted with the present value of the costs linked to those engagements. According to IAS 19, the discount rate should correspond to the rate of high-quality corporate bonds of similar term to the benefits valued and in the same currency.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__89": { "value": "Termination benefits Early termination obligations are recognized as a liability when the Group is \u2018demonstrably committed\u2019 to terminating the employment before the normal retirement date. The Group is \u2018demonstrably committed\u2019 when, and only when, it has a detailed formal plan for the early termination without realistic possibility of withdrawal. Where such benefits are long term, they are discounted using the same rate as above for defined benefit obligations.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTerminationBenefits", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__221-1": { "value": "7.1.18. Share-based payments The Group operates an equity settled share-based compensation plan, consisting of stock options (hereafter \u2018options\u2019), restricted stock units (\u2018RSU\u2019) and performance stock units (\u2018PSU\u2019). For grants of options, RSU\u2019s and PSU\u2019s, the fair value of the employee services received is measured by reference to the fair value of the shares or options granted on the date of the grant. The Group recognizes the fair value of the services received in exchange for the grant of the options as an expense and a corresponding increase in equity on a straight-line basis over the vesting period. The fair value of the options granted is determined using option pricing models, which take into account the exercise price of the option, the share price at date of grant of the option, the risk-free interest rate, the expected volatility of the share price over the life of the option and other relevant factors. Vesting conditions included in the terms of the grant are not taken into account in estimating fair value except where those terms relate to market conditions. Non-market vesting conditions are considered by adjusting the number of shares or options included in the measurement of the cost of employee services so that ultimately the amount recognized in the income statement reflects the number of vested shares or options. At each statement of financial position date, the entity revises its estimates of the number of instruments that are expected to become exercisable and recognizes the impact of revision of original estimates, if any, in the income statement and a corresponding adjustment to equity over the remaining vesting period. When the instruments are exercised, the proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. The social security contributions payable in connection with the grant of the instruments is considered an integral part of the grant itself, and the charge will be treated as a cash-settled transaction.7.5.6. Equity price risk Following the issuance of options, RSU\u2019s and PSU\u2019s as share-based payment arrangements under the different LTIP programs (refer to note 7.28 for details of these programs), the Group is exposed to variations in the Group share price. The Board of Directors of the Group has decided on June 1, 2015 to implement a full hedging program through a total return swap. The purpose of this financial instrument is to effectively hedge the risk that a price increase of the Ontex shares would negatively impact future cash flows related to the share-based payments. The Group entered into a Total Return Swap (\u2018TRS\u2019) agreement with a financial institution to manage its exposure to price volatility related to the shares subject to the stock option, RSU and PSU plans as disclosed in note 7.28. Under the total return swap agreement, the Company will pay interest to the financial institution. At the settlement of the TRS, the Group will receive the underlying shares which will be granted to the beneficiaries of the stock options, RSU\u2019s or PSU\u2019s upon exercise. As such, the Group hedges the risk that the share price would increase when shares have to be issued upon exercise by the beneficiaries of their Options/RSU\u2019s/PSU\u2019s. The shares bought in this context are recognized in deduction of Group equity at the strike price at the moment of entering into the TRS. As the Group takes physical delivery of the shares upon settlement of the TRS (no net settlement), the TRS does not meet the scope of financial instruments in accordance with IAS 32 / IFRS 9. As such, the TRS should not be remeasured at fair value at each closing date. During 2022, the existing program was not renewed and all shares are therefore now owned by the Group.7.28. SHARE-BASED PAYMENTS Since September 2014 the Company implemented yearly Long-Term Incentive Plans (\u2018LTIP\u2019), which are based on a combination of stock options (further \u2018Options\u2019) and restricted stock units (further \u2018RSU\u2019s\u2019). In 2019 the long-term incentive plan changed in a combination of RSU\u2019s, Options and Performance Stock Units (further \u2018PSU\u2019s\u2019), each representing one third of the total long-term incentive grant value. The Options, RSU\u2019s and PSU\u2019s are accounted for as equity-settled share-based payments. The Options, RSU\u2019s and PSU\u2019s can only vest and Options giving the right to receive shares of the Company (further \u2018Shares\u2019) or any other rights to acquire Shares can only be exercisable as from three years after the grant. The RSU\u2019s, PSU\u2019s and Options will vest subject to the condition that the participant remains in service. The share price is considered to be the relevant performance indicator and the vesting of the award will not be subject to additional specific performance conditions, except for PSU\u2019s. For the vesting of the PSU\u2019s, the Board has set targets for the next 3-year performance period in terms of specific targets (both finance and non-finance KPI\u2019s). The Articles of Association authorize the Company to deviate from such rule, as allowed under the Belgian Companies Code. The exercise price of the Options will be equal to the last closing rating of the Share immediately preceding the option grant date. For the Options, the exercise period will start on the vesting date. The Shares underlying the RSU\u2019s and PSU\u2019s will be granted for free as soon as practicable after the vesting date of the RSU\u2019s and the PSU\u2019s. Upon vesting of RSU\u2019s and PSU\u2019s, the Shares underlying the RSU\u2019s and PSU\u2019s are transferred to the participants, while upon vesting, Options may be exercised until their expiry date (eight years from the date of grant). On or about June 26, 2015, a total of 159,413stock options and 38,294 RSU\u2019s were granted, 37,339 options and 38,294 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2018 and June 2023. On or about June 15, 2016, a total of 322,294 stock options and 75,227 RSU\u2019s were granted, 87,768 options and 75,227 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2019 and June 2024. On or about May 10, 2017 a total of 299,914 stock options and 69,023 RSU\u2019s were granted, 76,529 options and 69,023 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2020 and June 2025. On or about June 15, 2018, a total of 471,064 stock options and 93,576 RSU\u2019s were granted, 155,215 options and 93,576 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2021 and June 2026. On or about June 13, 2019, a total of 393,403 stock options, 124,420 RSU\u2019s and 124,420 PSU\u2019s were granted. 166,048 options, 124,420 RSU\u2019s and 124,420 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2022 and June 2027. On or about May 28, 2020, the Group granted an LTIP plan consisting of 374,622 stock options, 119,244 RSU\u2019s and 119,244 PSU\u2019s. 179,724 options, 67,143 RSU\u2019s and 57,496 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2023 and June 2028. On or about May 27, 2021, the Group granted an LTIP plan consisting of 432,438 PSU\u2019s. 120,133 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The PSU\u2019s are exercisable between June 2024 and June 2029. During the period, the Group granted a new LTIP plan consisting of 611,477 PSU\u2019s. 125,673 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The PSU\u2019s are exercisable between March 2025 and March 2030. The Board of Directors of the Group has decided on June 1, 2015 to implement a full hedging program (total return swap) for the share-based payment arrangements starting July 1, 2015 and renewed on an annual basis. This program was not renewed in 2022. The following share-based payment arrangements were in existence during the current and prior years: Exercise Price per stock Weighted average Fair # stock options/ # stock options/ Expiry Date option (\u20ac) value (\u20ac) RSU's/PSU's RSU's/PSU's LTIP 2015 Options 2023 26.60 6.39 122,074 123,881 RSU's 2018 N/A 24.45 - - LTIP 2016 Options 2024 28.44 6.64 234,526 252,489 RSU's 2019 N/A 26.48 - - LTIP 2017 Options 2025 33.11 7.62 223,385 239,111 RSU's 2020 N/A 30.45 - - LTIP 2018 Options 2026 23.56 4.68 315,849 359,352 RSU's 2021 N/A 21.35 - - LTIP 2019 Options 2027 14.0 3.99 227,355 283,126 RSU's 2022 N/A 12.05 - 68,962 PSU's 2022 N/A 12.05 - 87,668 LTIP 2020 Options 2028 13.9 3.13 194,898 241,981 RSU's 2023 N/A 11.86 52,101 63,017 PSU's 2023 N/A 11.86 61,748 72,673 LTIP 2021 PSU's 2024 N/A 10.37 312,305 393,081 LTIP 2022 PSU's 2025 N/A 7.30 485,804 - Total outstanding stock options 1,318,087 1,656,616 Total outstanding RSU's 52,101 131,979 Total outstanding PSU's 859,857 553,422 The following reconciles the options and RSU\u2019s outstanding at the beginning and end of the year: Average exercise price per Stock options RSU's PSU's stock option (\u20ac)\u00b9 As at January 1, 2021 29.76 1,662,616 247,862 173,822 Granted - - - 432,438 Forfeited 14.08 (6,000) (13,891) (52,838) Exercised - - (101,992) - As at December 31, 2021 22.33 1,656,616 131,979 553,422 Granted - - - 611,477 Forfeited 18.73 (338,529) (16,738) (305,042) Exercised - - (63,140) - As at December 31, 2022 23.25 1,318,087 52,101 859,857 of which vested and exercisable - 1,123,189 - - 1 The average exercise price mentioned in the table above relates only to the stock options, as the RSU's and PSU\u2019s do not have an exercise price. The fair value of the stock options has been determined based on the Black&Scholes model. The expected volatility used in the model is based on the historical volatility of the Company. Below is an overview of all the parameters used in this model: LTIP 2015 LTIP 2016 LTIP 2017 LTIP 2018 LTIP 2019 LTIP 2020 LTIP 2021 LTIP 2022 Exercise Price (\u20ac) 26.60 28.44 33.11 23.56 14.00 13.90 - - Expected volatility of the shares (%) 26.32% 26.56% 27.12% 25.63% 37.98% 31.90% 43.12% 39.01% Expected dividends yield (%) 2.14% 1.98% 2.31% 2.70% 3.82% 4.00% 3.00% 4.10% Risk free interest rate (%) 1.02% 0.37% 0.60% 0.69% 0.10% -0.18% 0.00% 0.00% The fair value of the RSU\u2019s and PSU\u2019s has been determined by deducting from the exercise price the expected and discounted dividend flow, based on the same parameters as above. The total cost incurred regarding the existing share-based payment plans amounted to \u20ac1.1 million during 2022 and was included within employee benefit expenses. Social charges related to the LTIP are accrued for over the vesting period.7.31.5. Key management compensation Remuneration of the CEO Full Year in \u20ac million 2022 2021 Fixed and variable remuneration 2.0 1.6 Remuneration of the Executive Team (excluding the CEO) Full Year in \u20ac million 2022 2021 Fixed remuneration 3.0 4.5 Variable remuneration 1.3 1.5 Other remuneration 0.6 0.6 Total 4.9 6.6 The other remuneration relates mainly to post-employment benefit plans. For a more detailed breakdown, see the Remuneration report. The Company implemented Long-Term Incentive Plans (\u2018LTIP\u2019), which are based on a combination of stock options, restricted stock units and performance stock units (see note 7.28). The number of stock options, restricted stock units and performance stock units granted to the CEO and the Executive Management Team is summarized below: For the year ended December 31, 2022 Number of RSU's Number of PSU's Number of Stock Options LTIP 2018 CEO 14,921 - 75,114 Executive Team (excluding CEO) 47,478 - 239,016 LTIP 2019 CEO 18,414 18,414 64,610 Executive Team (excluding CEO) 53,376 53,376 171,928 LTIP 2020 CEO 19,891 19,891 88,333 Executive Team (excluding CEO) 56,265 56,265 249,870 LTIP 2021 CEO - 94,954 - Executive Team (excluding CEO) - 229,572 - LTIP 2022 CEO - 149,891 - Executive Team (excluding CEO) - 213,070 -", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__90-1": { "value": "7.1.18. Share-based payments The Group operates an equity settled share-based compensation plan, consisting of stock options (hereafter \u2018options\u2019), restricted stock units (\u2018RSU\u2019) and performance stock units (\u2018PSU\u2019). For grants of options, RSU\u2019s and PSU\u2019s, the fair value of the employee services received is measured by reference to the fair value of the shares or options granted on the date of the grant. The Group recognizes the fair value of the services received in exchange for the grant of the options as an expense and a corresponding increase in equity on a straight-line basis over the vesting period. The fair value of the options granted is determined using option pricing models, which take into account the exercise price of the option, the share price at date of grant of the option, the risk-free interest rate, the expected volatility of the share price over the life of the option and other relevant factors. Vesting conditions included in the terms of the grant are not taken into account in estimating fair value except where those terms relate to market conditions. Non-market vesting conditions are considered by adjusting the number of shares or options included in the measurement of the cost of employee services so that ultimately the amount recognized in the income statement reflects the number of vested shares or options. At each statement of financial position date, the entity revises its estimates of the number of instruments that are expected to become exercisable and recognizes the impact of revision of original estimates, if any, in the income statement and a corresponding adjustment to equity over the remaining vesting period. When the instruments are exercised, the proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium. The social security contributions payable in connection with the grant of the instruments is considered an integral part of the grant itself, and the charge will be treated as a cash-settled transaction.7.5.6. Equity price risk Following the issuance of options, RSU\u2019s and PSU\u2019s as share-based payment arrangements under the different LTIP programs (refer to note 7.28 for details of these programs), the Group is exposed to variations in the Group share price. The Board of Directors of the Group has decided on June 1, 2015 to implement a full hedging program through a total return swap. The purpose of this financial instrument is to effectively hedge the risk that a price increase of the Ontex shares would negatively impact future cash flows related to the share-based payments. The Group entered into a Total Return Swap (\u2018TRS\u2019) agreement with a financial institution to manage its exposure to price volatility related to the shares subject to the stock option, RSU and PSU plans as disclosed in note 7.28. Under the total return swap agreement, the Company will pay interest to the financial institution. At the settlement of the TRS, the Group will receive the underlying shares which will be granted to the beneficiaries of the stock options, RSU\u2019s or PSU\u2019s upon exercise. As such, the Group hedges the risk that the share price would increase when shares have to be issued upon exercise by the beneficiaries of their Options/RSU\u2019s/PSU\u2019s. The shares bought in this context are recognized in deduction of Group equity at the strike price at the moment of entering into the TRS. As the Group takes physical delivery of the shares upon settlement of the TRS (no net settlement), the TRS does not meet the scope of financial instruments in accordance with IAS 32 / IFRS 9. As such, the TRS should not be remeasured at fair value at each closing date. During 2022, the existing program was not renewed and all shares are therefore now owned by the Group.7.28. SHARE-BASED PAYMENTS Since September 2014 the Company implemented yearly Long-Term Incentive Plans (\u2018LTIP\u2019), which are based on a combination of stock options (further \u2018Options\u2019) and restricted stock units (further \u2018RSU\u2019s\u2019). In 2019 the long-term incentive plan changed in a combination of RSU\u2019s, Options and Performance Stock Units (further \u2018PSU\u2019s\u2019), each representing one third of the total long-term incentive grant value. The Options, RSU\u2019s and PSU\u2019s are accounted for as equity-settled share-based payments. The Options, RSU\u2019s and PSU\u2019s can only vest and Options giving the right to receive shares of the Company (further \u2018Shares\u2019) or any other rights to acquire Shares can only be exercisable as from three years after the grant. The RSU\u2019s, PSU\u2019s and Options will vest subject to the condition that the participant remains in service. The share price is considered to be the relevant performance indicator and the vesting of the award will not be subject to additional specific performance conditions, except for PSU\u2019s. For the vesting of the PSU\u2019s, the Board has set targets for the next 3-year performance period in terms of specific targets (both finance and non-finance KPI\u2019s). The Articles of Association authorize the Company to deviate from such rule, as allowed under the Belgian Companies Code. The exercise price of the Options will be equal to the last closing rating of the Share immediately preceding the option grant date. For the Options, the exercise period will start on the vesting date. The Shares underlying the RSU\u2019s and PSU\u2019s will be granted for free as soon as practicable after the vesting date of the RSU\u2019s and the PSU\u2019s. Upon vesting of RSU\u2019s and PSU\u2019s, the Shares underlying the RSU\u2019s and PSU\u2019s are transferred to the participants, while upon vesting, Options may be exercised until their expiry date (eight years from the date of grant). On or about June 26, 2015, a total of 159,413stock options and 38,294 RSU\u2019s were granted, 37,339 options and 38,294 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2018 and June 2023. On or about June 15, 2016, a total of 322,294 stock options and 75,227 RSU\u2019s were granted, 87,768 options and 75,227 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2019 and June 2024. On or about May 10, 2017 a total of 299,914 stock options and 69,023 RSU\u2019s were granted, 76,529 options and 69,023 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2020 and June 2025. On or about June 15, 2018, a total of 471,064 stock options and 93,576 RSU\u2019s were granted, 155,215 options and 93,576 RSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2021 and June 2026. On or about June 13, 2019, a total of 393,403 stock options, 124,420 RSU\u2019s and 124,420 PSU\u2019s were granted. 166,048 options, 124,420 RSU\u2019s and 124,420 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2022 and June 2027. On or about May 28, 2020, the Group granted an LTIP plan consisting of 374,622 stock options, 119,244 RSU\u2019s and 119,244 PSU\u2019s. 179,724 options, 67,143 RSU\u2019s and 57,496 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The stock options and RSU\u2019s are exercisable between June 2023 and June 2028. On or about May 27, 2021, the Group granted an LTIP plan consisting of 432,438 PSU\u2019s. 120,133 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The PSU\u2019s are exercisable between June 2024 and June 2029. During the period, the Group granted a new LTIP plan consisting of 611,477 PSU\u2019s. 125,673 PSU\u2019s have forfeited, expired or have been exercised as of December 31, 2022. The PSU\u2019s are exercisable between March 2025 and March 2030. The Board of Directors of the Group has decided on June 1, 2015 to implement a full hedging program (total return swap) for the share-based payment arrangements starting July 1, 2015 and renewed on an annual basis. This program was not renewed in 2022. The following share-based payment arrangements were in existence during the current and prior years: Exercise Price per stock Weighted average Fair # stock options/ # stock options/ Expiry Date option (\u20ac) value (\u20ac) RSU's/PSU's RSU's/PSU's LTIP 2015 Options 2023 26.60 6.39 122,074 123,881 RSU's 2018 N/A 24.45 - - LTIP 2016 Options 2024 28.44 6.64 234,526 252,489 RSU's 2019 N/A 26.48 - - LTIP 2017 Options 2025 33.11 7.62 223,385 239,111 RSU's 2020 N/A 30.45 - - LTIP 2018 Options 2026 23.56 4.68 315,849 359,352 RSU's 2021 N/A 21.35 - - LTIP 2019 Options 2027 14.0 3.99 227,355 283,126 RSU's 2022 N/A 12.05 - 68,962 PSU's 2022 N/A 12.05 - 87,668 LTIP 2020 Options 2028 13.9 3.13 194,898 241,981 RSU's 2023 N/A 11.86 52,101 63,017 PSU's 2023 N/A 11.86 61,748 72,673 LTIP 2021 PSU's 2024 N/A 10.37 312,305 393,081 LTIP 2022 PSU's 2025 N/A 7.30 485,804 - Total outstanding stock options 1,318,087 1,656,616 Total outstanding RSU's 52,101 131,979 Total outstanding PSU's 859,857 553,422 The following reconciles the options and RSU\u2019s outstanding at the beginning and end of the year: Average exercise price per Stock options RSU's PSU's stock option (\u20ac)\u00b9 As at January 1, 2021 29.76 1,662,616 247,862 173,822 Granted - - - 432,438 Forfeited 14.08 (6,000) (13,891) (52,838) Exercised - - (101,992) - As at December 31, 2021 22.33 1,656,616 131,979 553,422 Granted - - - 611,477 Forfeited 18.73 (338,529) (16,738) (305,042) Exercised - - (63,140) - As at December 31, 2022 23.25 1,318,087 52,101 859,857 of which vested and exercisable - 1,123,189 - - 1 The average exercise price mentioned in the table above relates only to the stock options, as the RSU's and PSU\u2019s do not have an exercise price. The fair value of the stock options has been determined based on the Black&Scholes model. The expected volatility used in the model is based on the historical volatility of the Company. Below is an overview of all the parameters used in this model: LTIP 2015 LTIP 2016 LTIP 2017 LTIP 2018 LTIP 2019 LTIP 2020 LTIP 2021 LTIP 2022 Exercise Price (\u20ac) 26.60 28.44 33.11 23.56 14.00 13.90 - - Expected volatility of the shares (%) 26.32% 26.56% 27.12% 25.63% 37.98% 31.90% 43.12% 39.01% Expected dividends yield (%) 2.14% 1.98% 2.31% 2.70% 3.82% 4.00% 3.00% 4.10% Risk free interest rate (%) 1.02% 0.37% 0.60% 0.69% 0.10% -0.18% 0.00% 0.00% The fair value of the RSU\u2019s and PSU\u2019s has been determined by deducting from the exercise price the expected and discounted dividend flow, based on the same parameters as above. The total cost incurred regarding the existing share-based payment plans amounted to \u20ac1.1 million during 2022 and was included within employee benefit expenses. Social charges related to the LTIP are accrued for over the vesting period.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__223-1": { "value": "7.1.19. Provisions Provisions are recognized when (1) the Group has a present legal or constructive obligation as a result of past events; (2) it is probable that an outflow of resources will be required to settle the obligation; and (3) the amount has been reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as finance cost. If the Group has an onerous contract, it will be recognized as a provision. Restructuring provisions comprise lease termination penalties and employee termination payments. Provisions are not recognized for future operating losses. A provision for restructuring is only recorded if the Group demonstrates a constructive obligation to restructure at the statement of financial position date. The constructive obligation should be demonstrated by: (a) a detailed formal plan identifying the main features of the restructuring; and (b) raising a valid expectation to those affected that it will carry out the restructuring by starting to implement the plan or by announcing its main features to those affected.7.21. PROVISIONS in \u20ac million Legal claims Restructuring Other Total Opening Balance 7.9 24.5 0.2 32.6 Additional provisions 0.2 0.5 0.0 0.7 Unused amounts reversed (0.1) (1.2) - (1.3) Used during the year (0.1) (22.6) (0.1) (22.9) Reclassified as held for sale (1.1) (0.1) - (1.2) As at December 31, 2022 6.8 1.1 0.1 8.0 Of which current 6.8 1.1 0.1 8.0 The restructuring provisions used in 2022 was recognized in 2021 and related to the strategic review of the geographical footprint, launched at year-end 2020 and confirmed in 2021. The provision mainly included termination benefits. The Group recognizes a provision for certain legal claims filed against the Group by customers, suppliers or former employees. On September 2, 2014, Ontex received a notification that the Spanish Competition Authorities (CNMC) opened infringement proceedings against 15 companies in the sector (including three subsidiaries of the Company: Ontex Es Holdco, S.A., Ontex Peninsular, S.A.U. and Ontex ID, S.A.U.) with respect to alleged conduct of fixing prices and other commercial conditions in the Spanish market for heavy adult incontinence products. On May 26, 2016, following the investigation, the CNMC issued its decision. In its decision it has found eight companies, including Ontex' Spanish subsidiaries guilty of being part of a cartel. For its involvement from 1999 to 2014, Ontex was fined \u20ac5.2 million. Ontex initiated an appeal against the decision and this appeal was rejected by judgement of September 2022. Ontex has filed a subsequent request demanding correction of the judgement that rejected Ontex\u2019s appeal and will consider further steps once the request has been processed. As per December 31, 2016, a provision amounting to \u20ac5.2 million has been accounted for. The provision has not been adjusted per December 31, 2022. 7.24.1. Income and expenses related to changes to Group structure Restructuring In 2021, the cost relates to the restructuring expenses in the context of the redistribution/re-allocation of production capabilities and the strategic review of the geographical footprint of the Group. As such, the Company decided to downsize some production capacity which has been announced to the relevant stakeholders and incurred costs for a total amount of \u20ac26.4 million in 2021, of which \u20ac23.8 million was recognized as a restructuring provision during 2021. Costs related to this exercise amounted to \u20ac5.4 million in 2022. The Group announced in the fourth quarter of 2020 an in-depth review of the Group\u2019s overhead cost structure. The costs incurred in 2021 amount to \u20ac7.5 million. The difference with the figures included in the annual report of 2021 is explained by the part related to the Emerging Markets. Litigation and claims The Company incurred specific legal fees in the context of certain on-going or potential litigation matters which are expected to result in a potential benefit for the Company or in the avoidance of potential future expenses. ", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__222-1": { "value": "7.1.19. Provisions Provisions are recognized when (1) the Group has a present legal or constructive obligation as a result of past events; (2) it is probable that an outflow of resources will be required to settle the obligation; and (3) the amount has been reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as finance cost. If the Group has an onerous contract, it will be recognized as a provision. Restructuring provisions comprise lease termination penalties and employee termination payments. Provisions are not recognized for future operating losses. A provision for restructuring is only recorded if the Group demonstrates a constructive obligation to restructure at the statement of financial position date. The constructive obligation should be demonstrated by: (a) a detailed formal plan identifying the main features of the restructuring; and (b) raising a valid expectation to those affected that it will carry out the restructuring by starting to implement the plan or by announcing its main features to those affected.The European Commission challenged Belgium\u2019s excess profit ruling (EPR) system, characterizing this system as illegal state aid. Ontex, through its Belgian subsidiary Ontex BV, had an EPR covering the years 2011-2015. Ontex has lodged an appeal against this EC decision. The General Court has handed down its judgment on February 14, 2019 in the joint case of Belgium vs Commission and Magnetrol International vs Commission. The General Court annulled the Commission\u2019s Decision for the reason that the Commission erroneously considered that the excess profit exemption system constituted an aid scheme. The European Commission has appealed the decision of the General Court to the European Court of Justice and in September 2021 the Court decided that the proceedings regarding the EPR decision must be re-opened before the EU General Court. We await the outcome. Furthermore, the European Commission opened individual investigations in September 2019 into each of the individual EPRs including that of Ontex, as it believes that each EPR grants illegal state aid, even if the EPR system does not constitute an aid \u201cscheme\u201d. The formal investigation into the Ontex EPR continues and it is unclear when a final decision can be expected. Ontex will have the right to appeal against any decision that concludes the Ontex EPR grants illegal state aid. Any such appeal will take some time to be heard. Ontex had fully taken into account the impact of the Commission\u2019s position that the EPR system is illegal state aid being successful, and the Commission concluding that the Ontex EPR grants illegal state aid in its tax position. Since the outcome of both challenges is not yet final, Ontex will not release the relevant provisions at this stage.7.21. PROVISIONS in \u20ac million Legal claims Restructuring Other Total Opening Balance 7.9 24.5 0.2 32.6 Additional provisions 0.2 0.5 0.0 0.7 Unused amounts reversed (0.1) (1.2) - (1.3) Used during the year (0.1) (22.6) (0.1) (22.9) Reclassified as held for sale (1.1) (0.1) - (1.2) As at December 31, 2022 6.8 1.1 0.1 8.0 Of which current 6.8 1.1 0.1 8.0The Group recognizes a provision for certain legal claims filed against the Group by customers, suppliers or former employees. On September 2, 2014, Ontex received a notification that the Spanish Competition Authorities (CNMC) opened infringement proceedings against 15 companies in the sector (including three subsidiaries of the Company: Ontex Es Holdco, S.A., Ontex Peninsular, S.A.U. and Ontex ID, S.A.U.) with respect to alleged conduct of fixing prices and other commercial conditions in the Spanish market for heavy adult incontinence products. On May 26, 2016, following the investigation, the CNMC issued its decision. In its decision it has found eight companies, including Ontex' Spanish subsidiaries guilty of being part of a cartel. For its involvement from 1999 to 2014, Ontex was fined \u20ac5.2 million. Ontex initiated an appeal against the decision and this appeal was rejected by judgement of September 2022. Ontex has filed a subsequent request demanding correction of the judgement that rejected Ontex\u2019s appeal and will consider further steps once the request has been processed. As per December 31, 2016, a provision amounting to \u20ac5.2 million has been accounted for. The provision has not been adjusted per December 31, 2022. 7.24. EBITDA ADJUSTMENTS Full Year in \u20ac million 2022 2021* Business restructuring (10.8) (33.0) Acquisition and disposal of businesses (0.3) (1.1) Refinancing - (0.1) Income and expenses related to changes to Group structure (11.2) (34.2) Impairment of assets (91.0) (23.5) Litigation and legal claims (0.2) (3.2) Other (0.6) 1.2 Income and expenses related to impairments and major litigations (91.8) (25.5) Total EBITDA adjustments (103.0) (59.7) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac25.1 millionLitigation and claims The Company incurred specific legal fees in the context of certain on-going or potential litigation matters which are expected to result in a potential benefit for the Company or in the avoidance of potential future expenses. ", "dimensions": { "concept": "ifrs-full:DisclosureOfClaimsAndBenefitsPaidExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__91": { "value": "7.1.19. Provisions Provisions are recognized when (1) the Group has a present legal or constructive obligation as a result of past events; (2) it is probable that an outflow of resources will be required to settle the obligation; and (3) the amount has been reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as finance cost. If the Group has an onerous contract, it will be recognized as a provision. Restructuring provisions comprise lease termination penalties and employee termination payments. Provisions are not recognized for future operating losses. A provision for restructuring is only recorded if the Group demonstrates a constructive obligation to restructure at the statement of financial position date. The constructive obligation should be demonstrated by: (a) a detailed formal plan identifying the main features of the restructuring; and (b) raising a valid expectation to those affected that it will carry out the restructuring by starting to implement the plan or by announcing its main features to those affected.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__225-1": { "value": "7.1.20. Income taxes Income tax expense represents the sum of the tax currently payable and deferred tax. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Group\u2019s subsidiaries operate and generate taxable income. In line with paragraph 46 of IAS 12 Income taxes, management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. This evaluation is made for tax periods open for audit by the competent authorities.7.19.2. Current taxes December 31, 2022 December 31, 2021 in \u20ac million Current tax assets 5.0 15.0 Current tax liabilities (23.0) (31.8) The current tax assets mainly relate to the excess of pre-payments made compared to the actual income tax payable for the year. The current tax liabilities include an amount of \u20ac14.8 million actual corporate taxes payable (2021: \u20ac19.5 million) and \u20ac8.2 million of provision for uncertain taxes (2021: \u20ac12.3 million). 7.27. INCOME TAX EXPENSE The income tax (charged)/credited to the income statement during the year is as follows: Full Year in \u20ac million 2022 2021* Current tax (expense) / income (16.3) (12.4) Deferred tax (expense) / income (12.1) 3.5 Total income tax expense (28.4) (8.9) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac9.1 million. The income tax expense can be reconciled as follows: Full Year in \u20ac million 2022 2021* Profit/(loss) before income tax (120.3) (10.6) Income tax expense calculated at domestic tax rates 27.1 2.6 Disallowed expenses (2.6) (4.1) Tax-exempt income 1.0 1.3 Impairment of goodwill (19.3) - Write-off of previously recognized deferred tax assets on losses (12.0) (10.1) Current year tax losses not recognized as deferred tax asset (23.4) (1.4) Recognition of previously unrecognized deferred tax assets on losses 1.6 0.4 Adjustments in respect of prior year (1.5) 0.7 Difference in statutory tax rates - (0.2) Exchange rate differences - 0.1 Other 0.8 1.8 Total income tax expense (28.4) (8.9) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac9.1 million.", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__93": { "value": "7.1.20. Income taxes Income tax expense represents the sum of the tax currently payable and deferred tax. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Group\u2019s subsidiaries operate and generate taxable income. In line with paragraph 46 of IAS 12 Income taxes, management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. This evaluation is made for tax periods open for audit by the competent authorities.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__224-1": { "value": "Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred tax is not recognized for: \u2022 the initial recognition of goodwill; and \u2022 the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is recognized on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax liabilities are generally recognized for taxable temporary differences. Deferred tax assets are generally recognized for tax losses and tax attributes to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred taxes are calculated at the level of each fiscal entity in the Group. The Group is able to offset deferred tax assets and liabilities only if the deferred tax balances relate to income taxes levied by the same taxation authority.7.4.2. Income taxes The Group has tax losses and other tax incentives usable to offset future taxable profits, mainly in Belgium, France and Spain amounting to \u20ac544.5 million at December 31, 2022 (\u20ac628.0 million at December 31, 2021). The European Commission challenged Belgium\u2019s excess profit ruling (EPR) system, characterizing this system as illegal state aid. Ontex, through its Belgian subsidiary Ontex BV, had an EPR covering the years 2011-2015. Ontex has lodged an appeal against this EC decision. The General Court has handed down its judgment on February 14, 2019 in the joint case of Belgium vs Commission and Magnetrol International vs Commission. The General Court annulled the Commission\u2019s Decision for the reason that the Commission erroneously considered that the excess profit exemption system constituted an aid scheme. The European Commission has appealed the decision of the General Court to the European Court of Justice and in September 2021 the Court decided that the proceedings regarding the EPR decision must be re-opened before the EU General Court. We await the outcome. Furthermore, the European Commission opened individual investigations in September 2019 into each of the individual EPRs including that of Ontex, as it believes that each EPR grants illegal state aid, even if the EPR system does not constitute an aid \u201cscheme\u201d. The formal investigation into the Ontex EPR continues and it is unclear when a final decision can be expected. Ontex will have the right to appeal against any decision that concludes the Ontex EPR grants illegal state aid. Any such appeal will take some time to be heard. Ontex had fully taken into account the impact of the Commission\u2019s position that the EPR system is illegal state aid being successful, and the Commission concluding that the Ontex EPR grants illegal state aid in its tax position. Since the outcome of both challenges is not yet final, Ontex will not release the relevant provisions at this stage. The Group has only recognized deferred tax assets on \u20ac20.6 million of tax losses and other tax incentives out of the \u20ac544.5 million mentioned above. The measurement of these deferred tax assets depends on a number of judgmental assumptions regarding the future probable taxable profits of different Group subsidiaries in different jurisdictions. These estimates are made prudently to the extent of the best current knowledge. The Group applies significant judgement in identifying uncertainties over income tax treatments. Since the Group operates in a complex multinational environment, it assesses whether certain uncertain tax provisions should be recognized in its consolidated financial statements (based on the requirements of IFRIC 23).7.19.1. Deferred taxes Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred taxes relate to the same fiscal authority. The deferred tax assets and liabilities are attributable to the following items: December 31, 2022 December 31, 2021 Deferred tax asset Deferred tax liability Deferred tax asset Deferred tax liability in \u20ac million Intangible assets 1.1 - - (0.9) Property, plant and equipment - (45.4) - (40.7) Leases 19.5 (14.9) 22.7 (19.8) Inventories 2.8 - 1.7 - Financial instruments 0.0 - 35.8 (36.6) Employee benefits 3.1 - 5.8 - Accrued expenses and other payables 3.9 - 8.9 - Others - (0.1) 2.5 - Tax losses 126.0 - 162.6 - Tax credit 15.9 - 9.4 - Deferred tax assets & liabilities - Gross 172.4 (60.3) 249.3 (98.0) Net deferred tax assets not recognized (121.2) - (154.1) - Offsetting (39.0) 39.0 (75.5) 75.5 Deferred tax assets & liabilities - Net 12.1 (21.3) 19.7 (22.5) Deferred tax assets are recognized on temporary differences, tax attributes carried forward and tax losses carried forward to the extent that the realization of the related tax benefit through the future taxable profits is probable. The tax losses carried forward mainly relate to France, Belgium and Spain. In Belgium and France, deferred tax assets have been recognized on tax losses carried forward considering the expected taxable profits in the foreseeable future. The Group did not recognize deferred tax assets for an amount of \u20ac121.2 million (2021: \u20ac154.1 million) on the tax losses carried forward. Tax losses can in principle be carried forward indefinitely. The Group did not recognize deferred taxes associated with investments in subsidiaries. There is currently no policy or detailed plan in relation to the payment of dividends within the Group.7.27. INCOME TAX EXPENSE The income tax (charged)/credited to the income statement during the year is as follows: Full Year in \u20ac million 2022 2021* Current tax (expense) / income (16.3) (12.4) Deferred tax (expense) / income (12.1) 3.5 Total income tax expense (28.4) (8.9) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac9.1 million. The income tax expense can be reconciled as follows: Full Year in \u20ac million 2022 2021* Profit/(loss) before income tax (120.3) (10.6) Income tax expense calculated at domestic tax rates 27.1 2.6 Disallowed expenses (2.6) (4.1) Tax-exempt income 1.0 1.3 Impairment of goodwill (19.3) - Write-off of previously recognized deferred tax assets on losses (12.0) (10.1) Current year tax losses not recognized as deferred tax asset (23.4) (1.4) Recognition of previously unrecognized deferred tax assets on losses 1.6 0.4 Adjustments in respect of prior year (1.5) 0.7 Difference in statutory tax rates - (0.2) Exchange rate differences - 0.1 Other 0.8 1.8 Total income tax expense (28.4) (8.9) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac9.1 million.", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__94": { "value": "Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred tax is not recognized for: \u2022 the initial recognition of goodwill; and \u2022 the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is recognized on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liabilities where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax liabilities are generally recognized for taxable temporary differences. Deferred tax assets are generally recognized for tax losses and tax attributes to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred taxes are calculated at the level of each fiscal entity in the Group. The Group is able to offset deferred tax assets and liabilities only if the deferred tax balances relate to income taxes levied by the same taxation authority.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__226-1": { "value": "7.1.21. Financial liabilities Financial liabilities (including borrowings and trade and other payables) are classified as at amortized cost, except for derivative instruments (see 7.1.22 below). Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. When a financial liability measured at amortized cost is modified without this resulting in derecognition, a gain or loss is recognized in profit or loss. The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate. Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.7.5.8. Liquidity risk Group treasury monitors rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities (note 7.17 Interest-bearing debts) at all times so that the Group does not breach borrowing limits or covenants (where applicable) on its borrowing facilities. The table below analyzes the Group\u2019s financial liabilities (including interest payments) into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Less than Between 1 Between 2 Over 5 years in \u20ac million 1 year and 2 years and 5 years At December 31, 2022 Interest-bearing debts (34.0) (361.6) (611.0) - Lease liabilities (24.0) (20.3) (38.7) (60.2) Trade payables (405.3) - - - Total non-derivative financial liabilities (463.3) (381.9) (649.7) (60.2) Interest rate swaps (0.9) (0.9) - - Forward foreign exchange contracts (531.8) (12.0) - - Total derivative financial liabilities (532.7) (12.9) - - At December 31, 2021 Interest-bearing debts (28.5) (31.2) (857.0) (0.0) Lease liabilities (26.0) (22.1) (42.2) (40.4) Trade payables (532.6) - - - Total non-derivative financial liabilities (587.2) (53.3) (899.1) (40.4) Interest rate swaps (0.9) (0.9) (0.9) - Forward foreign exchange contracts (267.4) (11.3) - - Total derivative financial liabilities (268.3) (12.2) (0.9) - .7.17. INTEREST-BEARING DEBTS in \u20ac million December 31, 2022 December 31, 2021 Non-current Borrowings: 791.4 793.1 Senior Notes 573.8 572.1 Syndicated Term Loan A > 1 year 217.3 216.3 Other borrowings 0.2 4.6 Lease and other liabilities 100.4 92.1 Lease liabilities 100.4 92.1 Interest-bearing debts non-current 891.7 885.2 Current Borrowings: 125.4 56.4 Senior revolving Facility B 115.0 - Other borrowings - 14.8 Interests: Other borrowings 10.4 10.4 Total return swap - 31.2 Lease and other liabilities 20.0 30.6 Lease liabilities 20.0 21.5 Other financial liabilities (0.0) 9.1 Interest-bearing debts current 145.4 87.0 Total interest-bearing debts 1,037.1 972.2 All borrowings are denominated in \u20ac as of December 31, 2022. On June 23, 2021 the Group refinanced it\u2019s syndicated credit facilities agreement (Syndicated Term Loan A) for an amount of \u20ac220.0 million, and a revolving credit facility (Senior Revolving Facility B) in an amount of up to \u20ac250.0 million. In addition, it issued a 5-year High Yield Bond (\u2018Senior Notes\u2019) in an amount of \u20ac580.0 million with a coupon of 3.50%. The Syndicated Term Loan A of \u20ac 220.0 million due 2024 is carrying an interest rate of EURIBOR 3 months + margin of 3.90% (subject to the leverage). The Senior Revolving Facility due 2024 is carrying an interest rate of EURIBOR + margin of 3.60% (subject to the leverage), and was utilized for \u20ac115.0 million at closing 2022. On July 29, 2015, a full hedging program (total return swap) for the share-based payment arrangements (LTIP) was implemented. For more information, see note 7.5.6 and 7.28. This program was stopped in 2022. The following table reconciles the movements of the financial liabilities to the cash flows arising from financing activities: December 31, 2022 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 793.1 (0.4) - (0.8) (1.1) 2.6 793.4 (2.0) Lease and other liabilities 92.1 (25.0) 44.8 4.3 (1.6) 0.6 115.2 (14.8) Current interest-bearing debts - Borrowings 56.4 75.9 - 0.7 1.1 - 134.1 (8.7) Lease and other liabilities 30.6 1.0 - 0.2 1.6 0.0 33.5 (13.5) Total liabilities from financing activities 972.2 51.5 44.8 4.4 0.0 3.2 1,076.1 (39.0) Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 133.2 Repayment of borrowings (81.7) December 31, 2021 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 800.4 33.9 - (0.1) (48.2) 7.1 793.1 - Lease and other liabilities 111.0 (22.7) 7.2 1.3 0.2 (4.9) 92.1 - Current interest-bearing debts Borrowings 341.1 (341.9) - 0.2 48.2 8.8 56.4 - Lease and other liabilities 25.2 5.4 - 0.2 (0.2) - 30.6 - Total liabilities from financing activities 1,277.7 (325.3) 7.2 1.7 0.0 10.9 972.2 - Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 799.3 Repayment of borrowings (1,124.7) 7.17.1. Collateral for borrowings The Group is subject to regular information covenants, and certain financial ratios are monitored. At year-end 2022 and 2021, all covenants were met. No assets have been pledged in the context of the syndicated term loans. However, certain subsidiaries act as guarantors for these loans. For local borrowings, some machinery are pledged. 7.17.2. Other information Serenity SPA has a total of \u20ac62.0 million lines of credit available, of which \u20ac19.5 million has been used through the issuance of external bank guarantees: \u2022 \u20ac30.0 million from UniCredit \u2022 \u20ac25.0 million from UBI \u2022 \u20ac7.0 million from BNL A line of credit of AUD 1.0 million has been granted to Ontex Manufacturing Pty Ltd by Commonwealth Bank Australia, of which AUD 0.4 million has been used. For Ontex BV, a bank guarantee issued by BNL is in place for \u20ac2.5 million in favor of the Italian Custom Agency as at December 31, 2022. .", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__95": { "value": "7.1.21. Financial liabilities Financial liabilities (including borrowings and trade and other payables) are classified as at amortized cost, except for derivative instruments (see 7.1.22 below). Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. When a financial liability measured at amortized cost is modified without this resulting in derecognition, a gain or loss is recognized in profit or loss. The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate. Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__232-1": { "value": "The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. When a financial liability measured at amortized cost is modified without this resulting in derecognition, a gain or loss is recognized in profit or loss. The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate.7.5.4. Interest rate risk The Group\u2019s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable rates. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. These risks are managed centrally by Group treasury taking into account the expectations of the Group with respect to the evolutions of the market rates. The Group has used interest rate swaps to manage these risks. Considering that the floating rate borrowings on the Syndicated Term Loan A (EURIBOR + margin) are partially hedged through interest rate swaps, the interest expense recognized in the consolidated income statement is to a limited extent subject to interest rate volatility, as apart from the syndicated term loan A, there has also been \u20ac115.0m withdrawn on Floating Rate Syndicated Term Loan B, carrying an interest of EURIBOR 1 month + margin of 3.60%. Sensitivity of the fair value of derivative financial instruments related to loans: at December 31,2022, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been respectively \u20ac0.2 million higher/lower. At December 31,2021, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been negligible. Floating Rate Syndicated Term Loan A of \u20ac220.0 million due 2024 is carrying an interest of EURIBOR 3 month + margin of 3.90%. The notional principal amounts of the outstanding fixed payer interest rate swap contract at December 31, 2022 is \u20ac150.0 million as per below table: Duration Fixed interest rate % Amount in \u20ac million 3 Years 0.5950% 150.0 Total 150.0 The OCI net impact for 2022 was a \u20ac9.5 million gain. \u20ac0.4 million was reclassified to P&L (loss) during 2022.The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million.Reconciliation of the post-employment employee benefit liabilities in \u20ac million December 31, 2022 December 31, 2021 RECOGNITION OF THE OBLIGATION Defined benefit obligation (DBO) at end of period (26.2) (33.6) Fair value of plan assets at end of period 15.2 14.7 Funded status (11.1) (18.9) Net (liability)/asset in statement of financial position (11.1) (18.9) Defined benefit cost Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost recognized in Income Statement (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Interest income on plan assets 0.2 0.1 Net interest cost (0.2) (0.2) Pension expense (2.4) (2.8) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF THE OBLIGATION Defined benefit obligation (DBO) at beginning of year (33.6) (36.3) Transfer to liability held for sale 2.4 - Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Participant contributions (0.1) (0.1) Administrative expenses included in the DBO 0.1 0.1 Taxes included in the DBO 0.1 0.2 Benefit payments from plan 0.4 0.2 Benefit payments from employer 0.5 0.5 Effect of changes in financial assumptions 5.4 2.5 Effect of experience adjustments 1.1 2.0 Effect of changes in foreign exchange rates - 0.3 Defined benefit obligation (DBO) at end of year (26.2) (33.6) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF PLAN ASSETS AT FAIR VALUE Fair value of plan assets at beginning of year 14.7 13.5 Transfer to liability held for sale (0.4) - Interest income 0.2 0.1 Employer contribution 1.6 1.9 Plan participants' contributions 0.1 0.1 Benefit payments from plan (0.4) (0.2) Benefit payments from employer (0.5) (0.5) Administrative expenses included in the DBO (0.1) (0.1) Taxes paid from plan assets (0.1) (0.2) Return on plan assets (excluding interest income) 0.0 0.1 Fair value of plan assets at end of year 15.2 14.7 in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF NET (LIABILITY)/ASSET IN STATEMENT OF FINANCIAL POSITION Net (liability)/asset at beginning of year (18.9) (22.8) Transfer to liability held for sale 2.0 - Defined benefit cost included in the income statement (2.2) (2.6) Net interest expense (0.2) (0.2) Total remeasurements included in OCI 6.5 4.6 Employer contributions 1.6 1.9 Effect of changes in foreign exchange rates - 0.3 Net (liability)/asset at end of year (11.1) (18.9) Unfunded versus Funded Part of DBO from plans that are wholly unfunded (11.1) (18.9)7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11.", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__227-1": { "value": "The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition. When a financial liability measured at amortized cost is modified without this resulting in derecognition, a gain or loss is recognized in profit or loss. The gain or loss is calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate.7.5.4. Interest rate risk The Group\u2019s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable rates. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. These risks are managed centrally by Group treasury taking into account the expectations of the Group with respect to the evolutions of the market rates. The Group has used interest rate swaps to manage these risks. Considering that the floating rate borrowings on the Syndicated Term Loan A (EURIBOR + margin) are partially hedged through interest rate swaps, the interest expense recognized in the consolidated income statement is to a limited extent subject to interest rate volatility, as apart from the syndicated term loan A, there has also been \u20ac115.0m withdrawn on Floating Rate Syndicated Term Loan B, carrying an interest of EURIBOR 1 month + margin of 3.60%. Sensitivity of the fair value of derivative financial instruments related to loans: at December 31,2022, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been respectively \u20ac0.2 million higher/lower. At December 31,2021, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been negligible. Floating Rate Syndicated Term Loan A of \u20ac220.0 million due 2024 is carrying an interest of EURIBOR 3 month + margin of 3.90%. The notional principal amounts of the outstanding fixed payer interest rate swap contract at December 31, 2022 is \u20ac150.0 million as per below table: Duration Fixed interest rate % Amount in \u20ac million 3 Years 0.5950% 150.0 Total 150.0 The OCI net impact for 2022 was a \u20ac9.5 million gain. \u20ac0.4 million was reclassified to P&L (loss) during 2022.The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million.Reconciliation of the post-employment employee benefit liabilities in \u20ac million December 31, 2022 December 31, 2021 RECOGNITION OF THE OBLIGATION Defined benefit obligation (DBO) at end of period (26.2) (33.6) Fair value of plan assets at end of period 15.2 14.7 Funded status (11.1) (18.9) Net (liability)/asset in statement of financial position (11.1) (18.9) Defined benefit cost Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost recognized in Income Statement (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Interest income on plan assets 0.2 0.1 Net interest cost (0.2) (0.2) Pension expense (2.4) (2.8) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF THE OBLIGATION Defined benefit obligation (DBO) at beginning of year (33.6) (36.3) Transfer to liability held for sale 2.4 - Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Participant contributions (0.1) (0.1) Administrative expenses included in the DBO 0.1 0.1 Taxes included in the DBO 0.1 0.2 Benefit payments from plan 0.4 0.2 Benefit payments from employer 0.5 0.5 Effect of changes in financial assumptions 5.4 2.5 Effect of experience adjustments 1.1 2.0 Effect of changes in foreign exchange rates - 0.3 Defined benefit obligation (DBO) at end of year (26.2) (33.6) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF PLAN ASSETS AT FAIR VALUE Fair value of plan assets at beginning of year 14.7 13.5 Transfer to liability held for sale (0.4) - Interest income 0.2 0.1 Employer contribution 1.6 1.9 Plan participants' contributions 0.1 0.1 Benefit payments from plan (0.4) (0.2) Benefit payments from employer (0.5) (0.5) Administrative expenses included in the DBO (0.1) (0.1) Taxes paid from plan assets (0.1) (0.2) Return on plan assets (excluding interest income) 0.0 0.1 Fair value of plan assets at end of year 15.2 14.7 in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF NET (LIABILITY)/ASSET IN STATEMENT OF FINANCIAL POSITION Net (liability)/asset at beginning of year (18.9) (22.8) Transfer to liability held for sale 2.0 - Defined benefit cost included in the income statement (2.2) (2.6) Net interest expense (0.2) (0.2) Total remeasurements included in OCI 6.5 4.6 Employer contributions 1.6 1.9 Effect of changes in foreign exchange rates - 0.3 Net (liability)/asset at end of year (11.1) (18.9) Unfunded versus Funded Part of DBO from plans that are wholly unfunded (11.1) (18.9)7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11.", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__98": { "value": "Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__240-1": { "value": "7.1.22. Derivative financial instruments The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate, foreign exchange rate and commodity price risks and equity price risks associated with share-based payments, including foreign exchange forward contracts, commodity hedging contracts and interest rate CAP\u2019s and SWAP\u2019s. Derivatives are accounted for in accordance with IFRS 9. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The fair values of various derivative instruments are disclosed in note 7.5 \u2018Financial Instruments and Financial Risk Management\u2019. The full fair value of a derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. If no hedge accounting is applied, the Group recognizes all gains or losses resulting from changes in fair value of derivatives in the consolidated income statement within Other operating income/expense to the extent that they relate to operating activities and within Net finance cost to the extent that they relate to the financing activities of the Group (e.g. interest rate swaps relating to the floating rate borrowings).7.1.23. Hedge accounting The Group designates certain hedging instruments, which include derivatives in respect of foreign currency risk and commodities, as cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss and is included in the \u2018other operating income/(expense)' line item. Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the consolidated income statement as the recognized hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously recognized in other comprehensive income and accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.7.4.6. Fair value of derivatives and other financial instruments The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. All derivative financial instruments are, in accordance with IFRS 7, level 2. This means valuation methods are used for which all inputs that have a significant effect on the recorded fair value are observable in the market, either directly or indirectly.In the context of the Group\u2019s financial risk management, the Group uses derivative instruments to cover specific risks, such as foreign currency exposure, interest rate exposure and commodity price exposure. The following table presents an overview of the derivative instruments outstanding at reporting date: Fair value Nominal amounts in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative financial assets 12.1 5.3 325.0 165.5 Interest rate swap 7.7 0.0 150.0 0.0 Cross-Currency Interest rate swap 0.0 0.0 0.0 4.0 Forward foreign exchange contracts 4.4 4.1 175.0 145.2 Commodity hedging contracts 0.0 1.2 0.0 16.3 Derivative financial liabilities 15.0 4.1 375.8 283.5 Interest rate swap 0.0 1.8 0.0 150.0 Forward foreign exchange contracts 13.8 2.3 368.8 133.5 Commodity hedging contracts 1.2 0.0 7.0 0.0 The derivative instruments presented in the tables above are all designated in a cash flow hedge relationship (see below in notes 7.5.3 to 7.5.5). The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.6 The fair value of a derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is exceeding 12 months and, as a current asset or liability, if the maturity of the hedged item is less than 12 months. The fair value of the derivatives is based on level 2 inputs as defined under IFRS 7.27, meaning inputs that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The above table provides an analysis of financial instruments grouped into Levels 1 to 3 based on the degree to which the fair value (recognized on the statement of financial position or disclosed in the notes) is observable: \u2022 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. \u2022 Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). \u2022 Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair values of financial assets and financial liabilities are based on mathematical models that use market observable data and are determined as follows: \u2022 The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices (includes listed redeemable notes). \u2022 The fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates. \u2022 The fair values of other financial assets and financial liabilities (excluding those described above) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. \u2022 Level 3 liabilities: the amount has been determined based on contractual agreements. The Group has derivative financial instruments which are subject to offsetting, enforceable master netting arrangements and similar agreements. No offsetting needed to be done per December 31, 2022 (nor 2021). The counterparties of the outstanding derivative instruments have an A-credit rating.7.5.3. Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the British pound (GBP), the Polish zloty (PLN), the Australian dollar (AUD) and Russian ruble (RUB) in relation to sales, and the US dollar (USD) and the Czech koruna (CZK) in relation to procurement. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities. The Group also has exposures to the Russian ruble (RUB), Czech koruna (CZK) and Australian dollar (AUD) due to their net investments in foreign operations. For the year ended December 31, 2022, only continuing operations are enclosed. The carrying amounts of the Group's main foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows: Assets Liabilities in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 EUR 1,879.9 1,775.9 2,765.6 2,566.0 USD 132.7 165.9 154.3 212.5 PLN 85.7 100.9 49.7 61.5 GBP 67.0 98.3 42.6 53.6 RUB 30.9 27.1 4.8 4.4 CZK 27.0 28.4 20.9 18.6 AUD 25.4 38.0 17.2 17.4 BRL 0.0 48.7 0.0 43.8 MXN 0.0 51.2 14.0 47.0 DZD 0.0 21.6 0.0 0.3 The Group monitors its foreign exchange exposure closely and will enter into hedging transactions if deemed appropriate to minimize exposure throughout the Group to foreign exchange fluctuations. All hedging decisions are subject to approval of the Board of Directors. The strategy regarding FX hedges was maintained. To manage their foreign exchange risk arising from future commercial transactions, recognized assets and liabilities, the Group uses forward exchange contracts. Foreign exchange risk arises when future commercial transactions, recognized assets and liabilities are denominated in a currency that is not the entity\u2019s functional currency. The Group treasury is responsible for optimizing the net position in each foreign currency when possible and appropriate. The Group applies hedge accounting for the hedge related transactions, the impact of the revaluation is recognized in other comprehensive income. The Group has entered into foreign exchange forward contracts in 2022 maturing at the latest in March 2024 in order to limit volatility in the business resulting from exposures to sales in British pound, Polish zloty, Australian dollar as well as purchases in US dollar and Czech crown during 2023. Based on the hedge strategy, the foreign exchange forward contracts hedge the following forecasted exposures until December 31, 2023: for British pound (GBP) 76.0 million, for Polish zloty (PLN) 310.2 million, for Australian dollar (AUD) 23.1 million, for Czech crown (CZK) 870.2 million, for US dollar (USD) 73.1 million versus EUR and US dollar (USD) 18.2 million versus Czech crown (CZK). The terms of the foreign currency forward contracts have been negotiated to match the terms of the highly probable forecast transactions. The Group applies hedge accounting to the foreign currency forward contracts. The changes in the fair value of these hedging instruments, designated as effective instruments in a cash flow hedge, are recognized in OCI until the moment the transaction occurs. At the moment the transaction leads to the recognition of a trade receivable or a trade payable, this cash flow hedge reserve including the changes in fair value of the hedging instrument is included in P&L where it adjusts revenue/costs or, if the transaction leads to the recognition of a non-financial asset or non-financial liability, as an adjustment of the carrying amount of the asset and liability. Further changes in the hedging instrument are recognized in P&L together with the changes in the trade receivables or payables. For the year ended December 31, 2022, an unrealized loss of \u20ac14.1 million (mainly Mexican peso versus EUR for 11.1 million and US dollar versus EUR for 2.4 million) has been recognized in other comprehensive income, offset by an unrealized gain of \u20ac3.8 million (British pound mainly). As of December 31, 2022, the fair value of the derivative financial asset for the foreign exchange contracts amounted to \u20ac4.4 million (2021: \u20ac4.1 million) and of the derivative financial liability amounted to \u20ac13.8 million (2021: \u20ac2.3 million). An amount of \u20ac0.4 million was reclassified to P&L (loss) during 2022. The following table sets forth the impact on pre-tax profit and equity for the year of a 10% weakening/strengthening of the Euro against the reported currency with all other variables held constant. The impact is mainly as a result of foreign exchange gains/losses on translation of foreign currency denominated trade receivables and payables and related derivative positions as at the respective statement of financial position dates. 10% weakening of the EUR 10% strengthening of the EUR 2022 2021* 2022 2021* in \u20ac million Impact on P&L Impact on Equity Impact on P&L Impact on equity AUD (0.2) (1.4) (0.2) 0.2 1.2 0.1 GBP (0.9) (8.5) (0.9) 0.8 7.0 0.7 PLN (0.8) (6.5) (0.8) 0.7 5.3 0.6 USD (1.9) 4.5 (1.3) 1.6 (3.5) 1.1 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations7.5.4. Interest rate risk The Group\u2019s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable rates. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. These risks are managed centrally by Group treasury taking into account the expectations of the Group with respect to the evolutions of the market rates. The Group has used interest rate swaps to manage these risks. Considering that the floating rate borrowings on the Syndicated Term Loan A (EURIBOR + margin) are partially hedged through interest rate swaps, the interest expense recognized in the consolidated income statement is to a limited extent subject to interest rate volatility, as apart from the syndicated term loan A, there has also been \u20ac115.0m withdrawn on Floating Rate Syndicated Term Loan B, carrying an interest of EURIBOR 1 month + margin of 3.60%. Sensitivity of the fair value of derivative financial instruments related to loans: at December 31,2022, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been respectively \u20ac0.2 million higher/lower. At December 31,2021, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been negligible. Floating Rate Syndicated Term Loan A of \u20ac220.0 million due 2024 is carrying an interest of EURIBOR 3 month + margin of 3.90%. The notional principal amounts of the outstanding fixed payer interest rate swap contract at December 31, 2022 is \u20ac150.0 million as per below table: Duration Fixed interest rate % Amount in \u20ac million 3 Years 0.5950% 150.0 Total 150.0 The OCI net impact for 2022 was a \u20ac9.5 million gain. \u20ac0.4 million was reclassified to P&L (loss) during 2022.7.5.5. Price risk (commodity) The Group has some exposure to the price of oil because certain of the raw materials used in production are manufactured from oil derivatives. These include glues, polyethylene, propylene and polypropylene. In relation to our fluff exposure, the Group has arrangements with certain of their fluff suppliers that reduce our exposure to volatility in fluff prices. The Group also decided to continue to hedge a portion of the propylene, polypropylene and polyethylene exposure in 2022. Forward contracts to cover the commodity price risk are being reviewed and potentially executed monthly. Forward contracts are initiated over a future period of 12 months covering monthly expected exposure. The total notional amount hedged in 2022 was \u20ac36.6 million covering propylene (\u20ac15.7 million), polypropylene (\u20ac14.5 million) and LDPE (\u20ac6.4 million). The average hedged rate for 2022 was \u20ac1,154/Ton for propylene, \u20ac2,085/Ton for polypropylene and \u20ac2,232/Ton for LDPE. The OCI net impact for 2022 was a \u20ac2.3 million loss. \u20ac2.3 million was reclassified to P&L (gain) during 2022.7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11.", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__100": { "value": "7.1.22. Derivative financial instruments The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate, foreign exchange rate and commodity price risks and equity price risks associated with share-based payments, including foreign exchange forward contracts, commodity hedging contracts and interest rate CAP\u2019s and SWAP\u2019s. Derivatives are accounted for in accordance with IFRS 9. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The fair values of various derivative instruments are disclosed in note 7.5 \u2018Financial Instruments and Financial Risk Management\u2019. The full fair value of a derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. If no hedge accounting is applied, the Group recognizes all gains or losses resulting from changes in fair value of derivatives in the consolidated income statement within Other operating income/expense to the extent that they relate to operating activities and within Net finance cost to the extent that they relate to the financing activities of the Group (e.g. interest rate swaps relating to the floating rate borrowings).", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__99-1": { "value": "7.1.22. Derivative financial instruments The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate, foreign exchange rate and commodity price risks and equity price risks associated with share-based payments, including foreign exchange forward contracts, commodity hedging contracts and interest rate CAP\u2019s and SWAP\u2019s. Derivatives are accounted for in accordance with IFRS 9. Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The fair values of various derivative instruments are disclosed in note 7.5 \u2018Financial Instruments and Financial Risk Management\u2019. The full fair value of a derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. If no hedge accounting is applied, the Group recognizes all gains or losses resulting from changes in fair value of derivatives in the consolidated income statement within Other operating income/expense to the extent that they relate to operating activities and within Net finance cost to the extent that they relate to the financing activities of the Group (e.g. interest rate swaps relating to the floating rate borrowings).7.1.23. Hedge accounting The Group designates certain hedging instruments, which include derivatives in respect of foreign currency risk and commodities, as cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss and is included in the \u2018other operating income/(expense)' line item. Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the consolidated income statement as the recognized hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously recognized in other comprehensive income and accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__105": { "value": "7.1.23. Hedge accounting The Group designates certain hedging instruments, which include derivatives in respect of foreign currency risk and commodities, as cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss and is included in the \u2018other operating income/(expense)' line item. Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the consolidated income statement as the recognized hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously recognized in other comprehensive income and accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__103": { "value": "7.1.23. Hedge accounting The Group designates certain hedging instruments, which include derivatives in respect of foreign currency risk and commodities, as cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges. At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income and accumulated under the heading of cash flow hedging reserve. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss and is included in the \u2018other operating income/(expense)' line item. Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the consolidated income statement as the recognized hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously recognized in other comprehensive income and accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__107": { "value": "7.1.24. Operating segments The Group\u2019s activities are in one segment. There are no other significant classes of business, either singularly or in aggregate. The chief operating decision maker, the Board of Directors, reviews the operating results (defined as EBITDA) and operating plans, and make resource allocation decisions on a company-wide basis; therefore, the Group operates as one segment.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__108-1": { "value": "7.1.25. Statement of cash flows The cash flows of the Group are presented using the indirect method. This method reconciles the movement in cash for the reporting period by adjusting net profit of the year for any non-cash items and changes in working capital, and identifying investing and financing cash flows for the reporting period.7.2.4. Free Cash Flow Free Cash flow is defined as net cash generated from operating activities (as presented in the consolidated cash flow statement, i.e. including income taxes paid) less capital expenditures (Capex, defined as purchases of property, plant and equipment and intangible assets), less repayment of lease liabilities and including cash (used in)/from disposal. Free Cash Flow of the Group for the years ended December 31 is as follows: Full Year in \u20ac million 2022 2021* Operating profit/(loss) (69.4) 30.9 Depreciation and amortization 70.4 65.7 EBITDA 1.0 96.6 EBITDA from discontinued Operations (90.9) (9.1) Non-cash items and items relating to investing and financing activities 182.8 54.0 Change in working capital Inventories (11.3) (39.2) Trade and other receivables and prepaid expenses (46.9) (1.4) Trade and other payables and accrued expenses 12.6 56.4 Employee benefit liabilities 5.8 (6.4) Cash from operating activities before taxes 53.2 150.9 Income taxes paid (24.9) (20.6) Net cash generated from operating activities 28.3 130.3 Capex (62.4) (56.5) Cash (used in)/from on disposal 4.6 1.9 Repayment of lease liabilities (25.0) (22.7) Free Cash Flow (54.4) 52.9 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__244-1": { "value": "7.2. ALTERNATIVE PERFORMANCE MEASURES Alternative performance measures (non-GAAP) are used in the financial communication of the Group since management believes that they are widely used by certain investors, securities analysts and other interested parties as supplemental measure of performance and liquidity. The alternative performance measures may not be comparable to similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results, our performance or our liquidity under IFRS. 7.2.1. EBITDA adjustments Income and expenses classified under the heading \u201cEBITDA adjustments\u201d are those items that are considered by management not to relate to transactions, projects and adjustments to the value of assets and liabilities taking place in the ordinary course of activities of the Company. EBITDA adjustments are presented separately, due to their size or nature, so as to allow users of the consolidated financial statements of the Company to get a better understanding of the normalized performance of the Company. EBITDA adjustments relate to: \u2022 acquisition-related expenses; \u2022 changes to the measurement of contingent considerations in the context of business combinations; \u2022 changes to the Group structure, business restructuring costs, including costs related to the liquidation of subsidiaries and the closure, opening or relocations of factories; \u2022 impairment of assets and major litigations. EBITDA adjustments of the Group for the years ended December 31 are composed of the following items presented in the consolidated income statement and can be reconciled in note 7.24: \u2022 income/(expenses) related to changes to Group structure; and \u2022 income/(expenses) related to impairments and major litigations. 7.2.2. EBITDA and Adjusted EBITDA EBITDA is defined as earnings before net finance cost, income taxes, depreciations and amortizations. Adjusted EBITDA is defined as EBITDA excluding EBITDA adjustments. EBITDA and Adjusted EBITDA reconciliation of the Group for the years ended December 31 are as follows: Full Year 2022 2021 Continued Discontinued Continued Discontinued in \u20ac million Total Group Total Group Operations Operations Operations Operations Revenue 1,672.2 792.3 2,464.5 1,408.7 617.7 2,026.4 Operating profit/(loss) (69.4) (90.9) (160.3) 30.9 (31.1) (0.2) Depreciation and amortization (70.4) - (70.4) (65.7) (22.0) (87.7) EBITDA 1.0 (90.9) (89.9) 96.6 (9.1) 87.5 EBITDA adjustments 103.0 122.6 225.6 59.7 25.1 84.7 Adjusted EBITDA 104.0 31.7 135.7 156.3 15.9 172.2 Adjusted EBITDA margin 6.2% 4.0% 5.5% 11.1% 2.6% 8.5% 7.2.3. Net financial debt/LTM Adjusted EBITDA ratio (Leverage) Net financial debt is calculated by adding short-term and long-term debt and deducting cash and cash equivalents. LTM adjusted EBITDA is defined as EBITDA excluding EBITDA adjustments for the last twelve months (LTM). For the years ending December 31, the LTM adjusted EBITDA corresponds with the adjusted EBITDA of the year. Net financial debt/LTM Adjusted EBITDA ratio of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 Discontinued in \u20ac million Continued Operations Total Group Total Group Operations Non-current interest-bearing debts 891.7 16.8 908.5 885.2 Current interest-bearing debts 145.4 22.2 167.6 87.0 Cash and cash equivalents (149.1) (59.7) (208.7) (246.7) Net Financial Debt 888.1 (20.7) 867.4 725.5 LTM adjusted EBITDA 104.0 31.7 135.7 172.2 Leverage ratio 6.4 4.2 7.2.4. Free Cash Flow Free Cash flow is defined as net cash generated from operating activities (as presented in the consolidated cash flow statement, i.e. including income taxes paid) less capital expenditures (Capex, defined as purchases of property, plant and equipment and intangible assets), less repayment of lease liabilities and including cash (used in)/from disposal. Free Cash Flow of the Group for the years ended December 31 is as follows: Full Year in \u20ac million 2022 2021* Operating profit/(loss) (69.4) 30.9 Depreciation and amortization 70.4 65.7 EBITDA 1.0 96.6 EBITDA from discontinued Operations (90.9) (9.1) Non-cash items and items relating to investing and financing activities 182.8 54.0 Change in working capital Inventories (11.3) (39.2) Trade and other receivables and prepaid expenses (46.9) (1.4) Trade and other payables and accrued expenses 12.6 56.4 Employee benefit liabilities 5.8 (6.4) Cash from operating activities before taxes 53.2 150.9 Income taxes paid (24.9) (20.6) Net cash generated from operating activities 28.3 130.3 Capex (62.4) (56.5) Cash (used in)/from on disposal 4.6 1.9 Repayment of lease liabilities (25.0) (22.7) Free Cash Flow (54.4) 52.9 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations 7.2.5. Adjusted Basic Earnings and Adjusted Basic Earnings per Share Adjusted Basic Earnings (or Adjusted Profit) are defined as profit for the period plus EBITDA adjustments and tax effect on EBITDA adjustments, attributable to the owners of the parent. Adjusted Basic Earnings per share are defined as Adjusted Basic Earnings divided by the weighted average number of ordinary shares. Adjusted Basic Earnings per Share for the years ended December 31 are presented in note 7.16 \u2018Earnings per share\u2019. 7.2.6. Working Capital The components of our working capital are inventories, trade receivables and prepaid expenses and other receivables plus trade payables and accrued expenses and other payables. December 31, 2022 December 31, 2021 in \u20ac million Inventories 264.3 358.7 Trade receivables 191.8 269.8 Prepaid expenses and other receivables 36.8 69.2 Non-current receivables 0.3 3.5 Trade payables (405.3) (532.6) Accrued expenses and other payables (22.6) (39.0) Total Net Working Capital 65.4 129.6 7.2.7. Alternative Performance Measures included in the Press releases and other Regulated information Like-for-Like (LFL) revenue Like-for-like revenue is defined as revenue at constant currency excluding change in scope of consolidation or a change due to M&A. 2021 2022 LFL Forex 2022 Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group in \u20ac million Operations Operations Operations Operations Operations Operations Operations Operations Revenue 1,408.7 617.7 2,026.4 1,622.7 748.9 2,371.6 49.5 43.4 92.9 1,672.2 792.3 2,464.5 Adjusted EBITDA margin Adjusted EBITDA margin is adjusted EBITDA divided by revenue.7.3. CAPITAL MANAGEMENT The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern in order to provide benefits for shareholders. The Group monitors capital on the basis of the net financial debt position and its leverage. The Group\u2019s net financial debt position is calculated by adding all short and long-term interest-bearing debts and by deducting the available short-term liquidity. The leverage is computed as the net financial debt divided by the LTM adjusted EBITDA (i.e. EBITDA plus EBITDA adjustments for the last twelve months (LTM)). The net financial debt and leverage of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 in \u20ac million Non-current interest-bearing debts 908.5 885.2 Current interest-bearing debts 167.6 87.0 Cash and cash equivalents (208.7) (246.7) Net Financial Debt 867.4 725.5 LTM Adjusted EBITDA 135.7 172.2 Net Financial Debt/LTM Adjusted EBITDA ratio 6.4 4.2 During 2022, the debt covenants related to the available credit facilities have been renegotiated and replaced by a liquidity covenant, which is further disclosed in note 7.4. 7.4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The amounts presented in the consolidated financial statements involve the use of estimates and assumptions about the future. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The actual amounts may differ from these estimates. The estimates and assumptions that could have an impact on the consolidated financial statements are discussed below. 7.4.1. Liquidity situation The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. The \u20ac220.0 million term loan and the \u20ac250.0 million revolving credit facility, of which \u20ac115.0 million was utilized on December 31, 2022, are subject to debt covenants. For the full year 2022, these debt covenants have been renegotiated and replaced by a liquidity covenant which the Group complied with. For 2023, the liquidity covenant to be met on March 31 is defined as cash and cash equivalents plus the non-used portion of the revolving credit facility to exceed \u20ac200.0 million. The leverage covenants to be met at June 30, 2023 and December 31, 2023 are defined as the ratio of net financial debt over the last-twelve-months adjusted EBITDA not to exceed 4.75 and 3.75 respectively. Management has prepared detailed budgets and cash flow forecasts, which reflect the strategy of the Group. While there may be limited headroom on reaching the covenants, the Company is confident that it will meet them, reassured by the business performance so far in 2023, and the progress made in the divestment of the Mexican assets. The closing is expected in the second quarter and the proceeds will be used to pay back the \u20ac220.0 million term loan. Moreover, the Group is currently in discussions with the banks to discuss the revolving credit facility extension, currently maturing mid-2024, and will address conditions that meet the financing needs of the company. 7.4.2. Income taxes The Group has tax losses and other tax incentives usable to offset future taxable profits, mainly in Belgium, France and Spain amounting to \u20ac544.5 million at December 31, 2022 (\u20ac628.0 million at December 31, 2021). The European Commission challenged Belgium\u2019s excess profit ruling (EPR) system, characterizing this system as illegal state aid. Ontex, through its Belgian subsidiary Ontex BV, had an EPR covering the years 2011-2015. Ontex has lodged an appeal against this EC decision. The General Court has handed down its judgment on February 14, 2019 in the joint case of Belgium vs Commission and Magnetrol International vs Commission. The General Court annulled the Commission\u2019s Decision for the reason that the Commission erroneously considered that the excess profit exemption system constituted an aid scheme. The European Commission has appealed the decision of the General Court to the European Court of Justice and in September 2021 the Court decided that the proceedings regarding the EPR decision must be re-opened before the EU General Court. We await the outcome. Furthermore, the European Commission opened individual investigations in September 2019 into each of the individual EPRs including that of Ontex, as it believes that each EPR grants illegal state aid, even if the EPR system does not constitute an aid \u201cscheme\u201d. The formal investigation into the Ontex EPR continues and it is unclear when a final decision can be expected. Ontex will have the right to appeal against any decision that concludes the Ontex EPR grants illegal state aid. Any such appeal will take some time to be heard. Ontex had fully taken into account the impact of the Commission\u2019s position that the EPR system is illegal state aid being successful, and the Commission concluding that the Ontex EPR grants illegal state aid in its tax position. Since the outcome of both challenges is not yet final, Ontex will not release the relevant provisions at this stage. The Group has only recognized deferred tax assets on \u20ac20.6 million of tax losses and other tax incentives out of the \u20ac544.5 million mentioned above. The measurement of these deferred tax assets depends on a number of judgmental assumptions regarding the future probable taxable profits of different Group subsidiaries in different jurisdictions. These estimates are made prudently to the extent of the best current knowledge. The Group applies significant judgement in identifying uncertainties over income tax treatments. Since the Group operates in a complex multinational environment, it assesses whether certain uncertain tax provisions should be recognized in its consolidated financial statements (based on the requirements of IFRIC 23). 7.4.3. Business combinations For business combinations, the Group must make assumptions and estimates to determine the purchase price allocation of the business being acquired. To do so, the Group must determine the acquisition-date fair value of the identifiable assets acquired and liabilities assumed. These assumptions and estimates have an impact on the asset and liability amounts recorded in the Consolidated Statement of Financial Position on the acquisition date. In addition, the estimated useful lives of the acquired property, plant and equipment, the identification of other intangible assets and the determination of the indefinite or finite useful lives of other intangible assets acquired requires significant judgments and will have an impact on the Group\u2019s profit or loss. 7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions. 7.4.5. Expected useful lives The expected useful lives of the property, plant and equipment and intangible assets must be estimated. The determination of the useful lives of the assets is based on management\u2019s judgment and it is reviewed at least at each financial year-end, pursuant to IAS 16 and IAS 38. 7.4.6. Fair value of derivatives and other financial instruments The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. All derivative financial instruments are, in accordance with IFRS 7, level 2. This means valuation methods are used for which all inputs that have a significant effect on the recorded fair value are observable in the market, either directly or indirectly. 7.4.7. Employee benefits The carrying amount of the Group\u2019s employee benefit obligations is determined on an actuarial basis using certain assumptions. One particularly sensitive assumption used for determining the net cost of the benefits granted is the discount rate. Any change to this assumption will affect the carrying amount of those obligations. The discount rate depends on the duration of the benefit, i.e. the average duration of the engagements, weighted with the present value of the costs linked to those engagements. According to IAS 19, the discount rate should correspond to the rate of high-quality corporate bonds of similar term to the benefits valued and in the same currency. 7.4.8. Revenue recognition For the accrual for volume discounts (to customers and from suppliers) some judgements are made on the impact of commercial decisions that will influence the final discount to be received or to be granted. 7.4.9. Discontinued operations and disposal group held for sale Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. As such, these operations have been classified as a disposal group held for sale and presented separately in the statement of financial position. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. On December 31, 2022, the discontinued CGUs (Assets held for Sale) are carried at their estimated fair value less cost to sell. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. 7.4.10. Operations in Russia The Group is following closely the developments in the conflict between Russia and Ukraine as this disrupts Ontex\u2019s ability to operate in these regions. Ontex\u2019s first focus is the safety of its employees, and the Group is providing the necessary support. Ontex has sales and marketing offices in Russia and Ukraine and a manufacturing plant in Noginsk, near Moscow. In 2022, the Group generated approximately \u20ac157.2 million revenue in Russia. The fixed assets held in Russia represent approximately \u20ac27.8 million consolidated fixed assets, including mainly machinery and right-of-use assets (leased manufacturing facilities). The manufacturing and commercial operations are ongoing as the Russian Ontex operation provides essential care products, but these are significantly dependent from the supply of the necessary raw materials and resources to the local manufacturing facility. From the start of the invasion of Ukraine by Russia, Ontex has defined tight conditions to its continued operation in Russia including an investment stop as well as a stop on exports from Russia and the adaptation to the evolving economic sanctions and supply disruptions. We have evolved our operating model to ensure compliance with the evolving applicable regulations on economic sanctions. This has led to the progressive autonomation of most local activities in Russia within a framework defined by the Group, allowing to remain compliant to Ontex\u2019s standards on quality, safety as well as financial controls, reporting and objectives. As the continuity of operations and the associated financial transactions remains with some uncertainties given the evolution of sanctions, the Group has decided to separate and then impair a portion of goodwill allocated to its Russian business for an amount of \u20ac84.1 million (see note 7.9.).All borrowings are denominated in \u20ac as of December 31, 2022. On June 23, 2021 the Group refinanced it\u2019s syndicated credit facilities agreement (Syndicated Term Loan A) for an amount of \u20ac220.0 million, and a revolving credit facility (Senior Revolving Facility B) in an amount of up to \u20ac250.0 million. In addition, it issued a 5-year High Yield Bond (\u2018Senior Notes\u2019) in an amount of \u20ac580.0 million with a coupon of 3.50%. The Syndicated Term Loan A of \u20ac 220.0 million due 2024 is carrying an interest rate of EURIBOR 3 months + margin of 3.90% (subject to the leverage). The Senior Revolving Facility due 2024 is carrying an interest rate of EURIBOR + margin of 3.60% (subject to the leverage), and was utilized for \u20ac115.0 million at closing 2022. On July 29, 2015, a full hedging program (total return swap) for the share-based payment arrangements (LTIP) was implemented. For more information, see note 7.5.6 and 7.28. This program was stopped in 2022. The following table reconciles the movements of the financial liabilities to the cash flows arising from financing activities: December 31, 2022 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 793.1 (0.4) - (0.8) (1.1) 2.6 793.4 (2.0) Lease and other liabilities 92.1 (25.0) 44.8 4.3 (1.6) 0.6 115.2 (14.8) Current interest-bearing debts - Borrowings 56.4 75.9 - 0.7 1.1 - 134.1 (8.7) Lease and other liabilities 30.6 1.0 - 0.2 1.6 0.0 33.5 (13.5) Total liabilities from financing activities 972.2 51.5 44.8 4.4 0.0 3.2 1,076.1 (39.0) Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 133.2 Repayment of borrowings (81.7) December 31, 2021 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 800.4 33.9 - (0.1) (48.2) 7.1 793.1 - Lease and other liabilities 111.0 (22.7) 7.2 1.3 0.2 (4.9) 92.1 - Current interest-bearing debts Borrowings 341.1 (341.9) - 0.2 48.2 8.8 56.4 - Lease and other liabilities 25.2 5.4 - 0.2 (0.2) - 30.6 - Total liabilities from financing activities 1,277.7 (325.3) 7.2 1.7 0.0 10.9 972.2 - Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 799.3 Repayment of borrowings (1,124.7)7.17.2. Other information Serenity SPA has a total of \u20ac62.0 million lines of credit available, of which \u20ac19.5 million has been used through the issuance of external bank guarantees: \u2022 \u20ac30.0 million from UniCredit \u2022 \u20ac25.0 million from UBI \u2022 \u20ac7.0 million from BNL A line of credit of AUD 1.0 million has been granted to Ontex Manufacturing Pty Ltd by Commonwealth Bank Australia, of which AUD 0.4 million has been used. For Ontex BV, a bank guarantee issued by BNL is in place for \u20ac2.5 million in favor of the Italian Custom Agency as at December 31, 2022. .8. SUMMARY STATUTORY FINANCIAL STATEMENTS 8.1. STATUTORY BALANCE SHEET AFTER APPROPRIATION in \u20ac million 2022 2021 ASSETS 3,031.3 3,225.0 FIXED ASSETS 2,699.5 2,824.1 Formation expenses - 0.1 Intangible assets 14.3 15.7 Tangible assets 0.6 0.9 Financial fixed assets 2,684.6 2,807.5 Participating interests 1,687.1 1,908.0 Amounts receivable 997.4 899.4 Other financial fixed assets 0.1 0.1 CURRENT ASSETS 331.8 400.9 Amounts receivable within one year 183.8 221.6 Treasury shares 7.9 9.7 Cash at bank and in hand 110.0 153.2 Deferred charges and accrued income 30.2 16.4 in \u20ac million 2022 2021 EQUITY AND LIABILITIES 3,031.3 3,225.0 EQUITY 1,659.0 1,904.0 Capital 823.6 823.6 Share premium 412.7 412.7 Reserves 265.6 267.3 Accumulated profits/(losses) 157.2 400.4 PROVISIONS AND DEFERRED TAXES 6.1 5.0 AMOUNTS PAYABLE 1,366.2 1,316.0 Amounts payable after more than one year 800.0 830.0 Financial debt 800.0 830.0 Amounts payable within one year 555.1 475.2 Financial debt 307.1 173.0 Trade debts 14.9 11.5 Taxes, remunerations and social security 3.6 3.4 Other amounts payable 229.5 287.3 Accruals and deferred income 11.1 10.9 8.2. STATUTORY INCOME STATEMENT in \u20ac million 2022 2021 Operating income 24.6 45.6 Operating charges (61.9) (64.5) Operating loss (37.3) (18.9) Financial result (205.7) (0.8) Profit/(loss) for the period before taxes (243.0) (19.7) Income taxes (2.0) (0.1) Profit/(loss) for the period (245.0) (19.7) 8.3. EXTRACT FROM ONTEX GROUP NV SEPARATE (NON-CONSOLIDATED) FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH BELGIAN GAAP The preceding information is extracted from the separate Belgian GAAP financial statements of Ontex Group NV and is included as required by article 3:17 of the Belgian Company Code. The separate financial statements, together with the annual report of the Board of Directors and the auditors\u2019 report to the general assembly of shareholders, will be filed with the National Bank of Belgium within the legally foreseen time limits. These documents are also available on request at Ontex Group NV, Korte Keppestraat 21, 9320 Aalst (Erembodegem). The statutory auditor\u2019s report is unqualified and certifies that the non-consolidated financial statements of Ontex Group NV prepared in accordance with Belgian GAAP for the year ended December 31, 2022 (full financial year) give a true and fair view of the financial position and results of Ontex Group NV in accordance with the legal and regulatory dispositions applicable in Belgium. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAdditionalInformationExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__109-1": { "value": "7.2. ALTERNATIVE PERFORMANCE MEASURES Alternative performance measures (non-GAAP) are used in the financial communication of the Group since management believes that they are widely used by certain investors, securities analysts and other interested parties as supplemental measure of performance and liquidity. The alternative performance measures may not be comparable to similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results, our performance or our liquidity under IFRS. 7.2.1. EBITDA adjustments Income and expenses classified under the heading \u201cEBITDA adjustments\u201d are those items that are considered by management not to relate to transactions, projects and adjustments to the value of assets and liabilities taking place in the ordinary course of activities of the Company. EBITDA adjustments are presented separately, due to their size or nature, so as to allow users of the consolidated financial statements of the Company to get a better understanding of the normalized performance of the Company. EBITDA adjustments relate to: \u2022 acquisition-related expenses; \u2022 changes to the measurement of contingent considerations in the context of business combinations; \u2022 changes to the Group structure, business restructuring costs, including costs related to the liquidation of subsidiaries and the closure, opening or relocations of factories; \u2022 impairment of assets and major litigations. EBITDA adjustments of the Group for the years ended December 31 are composed of the following items presented in the consolidated income statement and can be reconciled in note 7.24: \u2022 income/(expenses) related to changes to Group structure; and \u2022 income/(expenses) related to impairments and major litigations. 7.2.2. EBITDA and Adjusted EBITDA EBITDA is defined as earnings before net finance cost, income taxes, depreciations and amortizations. Adjusted EBITDA is defined as EBITDA excluding EBITDA adjustments. EBITDA and Adjusted EBITDA reconciliation of the Group for the years ended December 31 are as follows: Full Year 2022 2021 Continued Discontinued Continued Discontinued in \u20ac million Total Group Total Group Operations Operations Operations Operations Revenue 1,672.2 792.3 2,464.5 1,408.7 617.7 2,026.4 Operating profit/(loss) (69.4) (90.9) (160.3) 30.9 (31.1) (0.2) Depreciation and amortization (70.4) - (70.4) (65.7) (22.0) (87.7) EBITDA 1.0 (90.9) (89.9) 96.6 (9.1) 87.5 EBITDA adjustments 103.0 122.6 225.6 59.7 25.1 84.7 Adjusted EBITDA 104.0 31.7 135.7 156.3 15.9 172.2 Adjusted EBITDA margin 6.2% 4.0% 5.5% 11.1% 2.6% 8.5% 7.2.3. Net financial debt/LTM Adjusted EBITDA ratio (Leverage) Net financial debt is calculated by adding short-term and long-term debt and deducting cash and cash equivalents. LTM adjusted EBITDA is defined as EBITDA excluding EBITDA adjustments for the last twelve months (LTM). For the years ending December 31, the LTM adjusted EBITDA corresponds with the adjusted EBITDA of the year. Net financial debt/LTM Adjusted EBITDA ratio of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 Discontinued in \u20ac million Continued Operations Total Group Total Group Operations Non-current interest-bearing debts 891.7 16.8 908.5 885.2 Current interest-bearing debts 145.4 22.2 167.6 87.0 Cash and cash equivalents (149.1) (59.7) (208.7) (246.7) Net Financial Debt 888.1 (20.7) 867.4 725.5 LTM adjusted EBITDA 104.0 31.7 135.7 172.2 Leverage ratio 6.4 4.2 7.2.4. Free Cash Flow Free Cash flow is defined as net cash generated from operating activities (as presented in the consolidated cash flow statement, i.e. including income taxes paid) less capital expenditures (Capex, defined as purchases of property, plant and equipment and intangible assets), less repayment of lease liabilities and including cash (used in)/from disposal. Free Cash Flow of the Group for the years ended December 31 is as follows: Full Year in \u20ac million 2022 2021* Operating profit/(loss) (69.4) 30.9 Depreciation and amortization 70.4 65.7 EBITDA 1.0 96.6 EBITDA from discontinued Operations (90.9) (9.1) Non-cash items and items relating to investing and financing activities 182.8 54.0 Change in working capital Inventories (11.3) (39.2) Trade and other receivables and prepaid expenses (46.9) (1.4) Trade and other payables and accrued expenses 12.6 56.4 Employee benefit liabilities 5.8 (6.4) Cash from operating activities before taxes 53.2 150.9 Income taxes paid (24.9) (20.6) Net cash generated from operating activities 28.3 130.3 Capex (62.4) (56.5) Cash (used in)/from on disposal 4.6 1.9 Repayment of lease liabilities (25.0) (22.7) Free Cash Flow (54.4) 52.9 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations 7.2.5. Adjusted Basic Earnings and Adjusted Basic Earnings per Share Adjusted Basic Earnings (or Adjusted Profit) are defined as profit for the period plus EBITDA adjustments and tax effect on EBITDA adjustments, attributable to the owners of the parent. Adjusted Basic Earnings per share are defined as Adjusted Basic Earnings divided by the weighted average number of ordinary shares. Adjusted Basic Earnings per Share for the years ended December 31 are presented in note 7.16 \u2018Earnings per share\u2019. 7.2.6. Working Capital The components of our working capital are inventories, trade receivables and prepaid expenses and other receivables plus trade payables and accrued expenses and other payables. December 31, 2022 December 31, 2021 in \u20ac million Inventories 264.3 358.7 Trade receivables 191.8 269.8 Prepaid expenses and other receivables 36.8 69.2 Non-current receivables 0.3 3.5 Trade payables (405.3) (532.6) Accrued expenses and other payables (22.6) (39.0) Total Net Working Capital 65.4 129.6 7.2.7. Alternative Performance Measures included in the Press releases and other Regulated information Like-for-Like (LFL) revenue Like-for-like revenue is defined as revenue at constant currency excluding change in scope of consolidation or a change due to M&A. 2021 2022 LFL Forex 2022 Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group in \u20ac million Operations Operations Operations Operations Operations Operations Operations Operations Revenue 1,408.7 617.7 2,026.4 1,622.7 748.9 2,371.6 49.5 43.4 92.9 1,672.2 792.3 2,464.5 Adjusted EBITDA margin Adjusted EBITDA margin is adjusted EBITDA divided by revenue.7.3. CAPITAL MANAGEMENT The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern in order to provide benefits for shareholders. The Group monitors capital on the basis of the net financial debt position and its leverage. The Group\u2019s net financial debt position is calculated by adding all short and long-term interest-bearing debts and by deducting the available short-term liquidity. The leverage is computed as the net financial debt divided by the LTM adjusted EBITDA (i.e. EBITDA plus EBITDA adjustments for the last twelve months (LTM)). The net financial debt and leverage of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 in \u20ac million Non-current interest-bearing debts 908.5 885.2 Current interest-bearing debts 167.6 87.0 Cash and cash equivalents (208.7) (246.7) Net Financial Debt 867.4 725.5 LTM Adjusted EBITDA 135.7 172.2 Net Financial Debt/LTM Adjusted EBITDA ratio 6.4 4.2 During 2022, the debt covenants related to the available credit facilities have been renegotiated and replaced by a liquidity covenant, which is further disclosed in note 7.4. 7.4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The amounts presented in the consolidated financial statements involve the use of estimates and assumptions about the future. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The actual amounts may differ from these estimates. The estimates and assumptions that could have an impact on the consolidated financial statements are discussed below. 7.4.1. Liquidity situation The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. The \u20ac220.0 million term loan and the \u20ac250.0 million revolving credit facility, of which \u20ac115.0 million was utilized on December 31, 2022, are subject to debt covenants. For the full year 2022, these debt covenants have been renegotiated and replaced by a liquidity covenant which the Group complied with. For 2023, the liquidity covenant to be met on March 31 is defined as cash and cash equivalents plus the non-used portion of the revolving credit facility to exceed \u20ac200.0 million. The leverage covenants to be met at June 30, 2023 and December 31, 2023 are defined as the ratio of net financial debt over the last-twelve-months adjusted EBITDA not to exceed 4.75 and 3.75 respectively. Management has prepared detailed budgets and cash flow forecasts, which reflect the strategy of the Group. While there may be limited headroom on reaching the covenants, the Company is confident that it will meet them, reassured by the business performance so far in 2023, and the progress made in the divestment of the Mexican assets. The closing is expected in the second quarter and the proceeds will be used to pay back the \u20ac220.0 million term loan. Moreover, the Group is currently in discussions with the banks to discuss the revolving credit facility extension, currently maturing mid-2024, and will address conditions that meet the financing needs of the company. 7.4.2. Income taxes The Group has tax losses and other tax incentives usable to offset future taxable profits, mainly in Belgium, France and Spain amounting to \u20ac544.5 million at December 31, 2022 (\u20ac628.0 million at December 31, 2021). The European Commission challenged Belgium\u2019s excess profit ruling (EPR) system, characterizing this system as illegal state aid. Ontex, through its Belgian subsidiary Ontex BV, had an EPR covering the years 2011-2015. Ontex has lodged an appeal against this EC decision. The General Court has handed down its judgment on February 14, 2019 in the joint case of Belgium vs Commission and Magnetrol International vs Commission. The General Court annulled the Commission\u2019s Decision for the reason that the Commission erroneously considered that the excess profit exemption system constituted an aid scheme. The European Commission has appealed the decision of the General Court to the European Court of Justice and in September 2021 the Court decided that the proceedings regarding the EPR decision must be re-opened before the EU General Court. We await the outcome. Furthermore, the European Commission opened individual investigations in September 2019 into each of the individual EPRs including that of Ontex, as it believes that each EPR grants illegal state aid, even if the EPR system does not constitute an aid \u201cscheme\u201d. The formal investigation into the Ontex EPR continues and it is unclear when a final decision can be expected. Ontex will have the right to appeal against any decision that concludes the Ontex EPR grants illegal state aid. Any such appeal will take some time to be heard. Ontex had fully taken into account the impact of the Commission\u2019s position that the EPR system is illegal state aid being successful, and the Commission concluding that the Ontex EPR grants illegal state aid in its tax position. Since the outcome of both challenges is not yet final, Ontex will not release the relevant provisions at this stage. The Group has only recognized deferred tax assets on \u20ac20.6 million of tax losses and other tax incentives out of the \u20ac544.5 million mentioned above. The measurement of these deferred tax assets depends on a number of judgmental assumptions regarding the future probable taxable profits of different Group subsidiaries in different jurisdictions. These estimates are made prudently to the extent of the best current knowledge. The Group applies significant judgement in identifying uncertainties over income tax treatments. Since the Group operates in a complex multinational environment, it assesses whether certain uncertain tax provisions should be recognized in its consolidated financial statements (based on the requirements of IFRIC 23). 7.4.3. Business combinations For business combinations, the Group must make assumptions and estimates to determine the purchase price allocation of the business being acquired. To do so, the Group must determine the acquisition-date fair value of the identifiable assets acquired and liabilities assumed. These assumptions and estimates have an impact on the asset and liability amounts recorded in the Consolidated Statement of Financial Position on the acquisition date. In addition, the estimated useful lives of the acquired property, plant and equipment, the identification of other intangible assets and the determination of the indefinite or finite useful lives of other intangible assets acquired requires significant judgments and will have an impact on the Group\u2019s profit or loss. 7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions. 7.4.5. Expected useful lives The expected useful lives of the property, plant and equipment and intangible assets must be estimated. The determination of the useful lives of the assets is based on management\u2019s judgment and it is reviewed at least at each financial year-end, pursuant to IAS 16 and IAS 38. 7.4.6. Fair value of derivatives and other financial instruments The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. All derivative financial instruments are, in accordance with IFRS 7, level 2. This means valuation methods are used for which all inputs that have a significant effect on the recorded fair value are observable in the market, either directly or indirectly. 7.4.7. Employee benefits The carrying amount of the Group\u2019s employee benefit obligations is determined on an actuarial basis using certain assumptions. One particularly sensitive assumption used for determining the net cost of the benefits granted is the discount rate. Any change to this assumption will affect the carrying amount of those obligations. The discount rate depends on the duration of the benefit, i.e. the average duration of the engagements, weighted with the present value of the costs linked to those engagements. According to IAS 19, the discount rate should correspond to the rate of high-quality corporate bonds of similar term to the benefits valued and in the same currency. 7.4.8. Revenue recognition For the accrual for volume discounts (to customers and from suppliers) some judgements are made on the impact of commercial decisions that will influence the final discount to be received or to be granted. 7.4.9. Discontinued operations and disposal group held for sale Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. As such, these operations have been classified as a disposal group held for sale and presented separately in the statement of financial position. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. On December 31, 2022, the discontinued CGUs (Assets held for Sale) are carried at their estimated fair value less cost to sell. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. 7.4.10. Operations in Russia The Group is following closely the developments in the conflict between Russia and Ukraine as this disrupts Ontex\u2019s ability to operate in these regions. Ontex\u2019s first focus is the safety of its employees, and the Group is providing the necessary support. Ontex has sales and marketing offices in Russia and Ukraine and a manufacturing plant in Noginsk, near Moscow. In 2022, the Group generated approximately \u20ac157.2 million revenue in Russia. The fixed assets held in Russia represent approximately \u20ac27.8 million consolidated fixed assets, including mainly machinery and right-of-use assets (leased manufacturing facilities). The manufacturing and commercial operations are ongoing as the Russian Ontex operation provides essential care products, but these are significantly dependent from the supply of the necessary raw materials and resources to the local manufacturing facility. From the start of the invasion of Ukraine by Russia, Ontex has defined tight conditions to its continued operation in Russia including an investment stop as well as a stop on exports from Russia and the adaptation to the evolving economic sanctions and supply disruptions. We have evolved our operating model to ensure compliance with the evolving applicable regulations on economic sanctions. This has led to the progressive autonomation of most local activities in Russia within a framework defined by the Group, allowing to remain compliant to Ontex\u2019s standards on quality, safety as well as financial controls, reporting and objectives. As the continuity of operations and the associated financial transactions remains with some uncertainties given the evolution of sanctions, the Group has decided to separate and then impair a portion of goodwill allocated to its Russian business for an amount of \u20ac84.1 million (see note 7.9.).", "dimensions": { "concept": "ifrs-full:DescriptionOfOtherAccountingPoliciesRelevantToUnderstandingOfFinancialStatements", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__110-1": { "value": "7.2.1. EBITDA adjustments Income and expenses classified under the heading \u201cEBITDA adjustments\u201d are those items that are considered by management not to relate to transactions, projects and adjustments to the value of assets and liabilities taking place in the ordinary course of activities of the Company. EBITDA adjustments are presented separately, due to their size or nature, so as to allow users of the consolidated financial statements of the Company to get a better understanding of the normalized performance of the Company. EBITDA adjustments relate to: \u2022 acquisition-related expenses; \u2022 changes to the measurement of contingent considerations in the context of business combinations; \u2022 changes to the Group structure, business restructuring costs, including costs related to the liquidation of subsidiaries and the closure, opening or relocations of factories; \u2022 impairment of assets and major litigations. EBITDA adjustments of the Group for the years ended December 31 are composed of the following items presented in the consolidated income statement and can be reconciled in note 7.24: \u2022 income/(expenses) related to changes to Group structure; and \u2022 income/(expenses) related to impairments and major litigations.7.24. EBITDA ADJUSTMENTS Full Year in \u20ac million 2022 2021* Business restructuring (10.8) (33.0) Acquisition and disposal of businesses (0.3) (1.1) Refinancing - (0.1) Income and expenses related to changes to Group structure (11.2) (34.2) Impairment of assets (91.0) (23.5) Litigation and legal claims (0.2) (3.2) Other (0.6) 1.2 Income and expenses related to impairments and major litigations (91.8) (25.5) Total EBITDA adjustments (103.0) (59.7) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac25.1 million Items classified under the heading EBITDA adjustments are those items that are considered by management not to relate to items in the ordinary course of activities of the Company. The Group has adopted this classification to allow a better understanding of its recurring financial performance. These items are presented as follows in the consolidated income statement as follows: \u2022 income and expenses related to changes to Group structure; and \u2022 income and expenses related to impairments and major litigations. 7.24.1. Income and expenses related to changes to Group structure Restructuring In 2021, the cost relates to the restructuring expenses in the context of the redistribution/re-allocation of production capabilities and the strategic review of the geographical footprint of the Group. As such, the Company decided to downsize some production capacity which has been announced to the relevant stakeholders and incurred costs for a total amount of \u20ac26.4 million in 2021, of which \u20ac23.8 million was recognized as a restructuring provision during 2021. Costs related to this exercise amounted to \u20ac5.4 million in 2022. The Group announced in the fourth quarter of 2020 an in-depth review of the Group\u2019s overhead cost structure. The costs incurred in 2021 amount to \u20ac7.5 million. The difference with the figures included in the annual report of 2021 is explained by the part related to the Emerging Markets. 7.24.2. Income and expenses related to impairments and major litigations Impairment of assets In 2022, the impairment losses mainly include the impairment of goodwill related to the Russian business (\u20ac84.1 million) and also some impairment losses on idle machinery. In 2021, the impairment losses mainly include the impairment losses on idle machinery. Litigation and claims The Company incurred specific legal fees in the context of certain on-going or potential litigation matters which are expected to result in a potential benefit for the Company or in the avoidance of potential future expenses. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExceptionalItemsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__245-1": { "value": "7.2.2. EBITDA and Adjusted EBITDA EBITDA is defined as earnings before net finance cost, income taxes, depreciations and amortizations. Adjusted EBITDA is defined as EBITDA excluding EBITDA adjustments. EBITDA and Adjusted EBITDA reconciliation of the Group for the years ended December 31 are as follows: Full Year 2022 2021 Continued Discontinued Continued Discontinued in \u20ac million Total Group Total Group Operations Operations Operations Operations Revenue 1,672.2 792.3 2,464.5 1,408.7 617.7 2,026.4 Operating profit/(loss) (69.4) (90.9) (160.3) 30.9 (31.1) (0.2) Depreciation and amortization (70.4) - (70.4) (65.7) (22.0) (87.7) EBITDA 1.0 (90.9) (89.9) 96.6 (9.1) 87.5 EBITDA adjustments 103.0 122.6 225.6 59.7 25.1 84.7 Adjusted EBITDA 104.0 31.7 135.7 156.3 15.9 172.2 Adjusted EBITDA margin 6.2% 4.0% 5.5% 11.1% 2.6% 8.5%7.2.3. Net financial debt/LTM Adjusted EBITDA ratio (Leverage) Net financial debt is calculated by adding short-term and long-term debt and deducting cash and cash equivalents. LTM adjusted EBITDA is defined as EBITDA excluding EBITDA adjustments for the last twelve months (LTM). For the years ending December 31, the LTM adjusted EBITDA corresponds with the adjusted EBITDA of the year. Net financial debt/LTM Adjusted EBITDA ratio of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 Discontinued in \u20ac million Continued Operations Total Group Total Group Operations Non-current interest-bearing debts 891.7 16.8 908.5 885.2 Current interest-bearing debts 145.4 22.2 167.6 87.0 Cash and cash equivalents (149.1) (59.7) (208.7) (246.7) Net Financial Debt 888.1 (20.7) 867.4 725.5 LTM adjusted EBITDA 104.0 31.7 135.7 172.2 Leverage ratio 6.4 4.27.2.7. Alternative Performance Measures included in the Press releases and other Regulated information Like-for-Like (LFL) revenue Like-for-like revenue is defined as revenue at constant currency excluding change in scope of consolidation or a change due to M&A. 2021 2022 LFL Forex 2022 Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group Continued Discontinued Total Group in \u20ac million Operations Operations Operations Operations Operations Operations Operations Operations Revenue 1,408.7 617.7 2,026.4 1,622.7 748.9 2,371.6 49.5 43.4 92.9 1,672.2 792.3 2,464.5 Adjusted EBITDA margin Adjusted EBITDA margin is adjusted EBITDA divided by revenue.7.4.9. Discontinued operations and disposal group held for sale Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. As such, these operations have been classified as a disposal group held for sale and presented separately in the statement of financial position. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. On December 31, 2022, the discontinued CGUs (Assets held for Sale) are carried at their estimated fair value less cost to sell. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale.7.8. DISPOSAL GROUP HELD FOR SALE AND DISCONTINUED OPERATIONS Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. These operations, which are expected to be sold within 12 months, have been classified as a disposal group held for sale and presented separately in the statement of financial position. As a result, discontinued operations are shown as one line item in the consolidated financial statements as detailed below. The discontinued statement of financial position items are presented at lower of the fair value less cost-to-sell and the carrying amount, in accordance with IFRS 5. stThe associated assets and liabilities are consequently presented as held for sale as from January 1, 2022. The related financial performance is thereby reported as discontinued operations in the Income statement. The assets held for sale in the table below amount to \u20ac653.9 million and deviate from the amount in the consolidated statement of financial position as the Group also stholds a building in Germany as held for sale at December 31, 2022. Ontex entered into a binding agreement in July 2022 to sell its Mexican and related export activities to Softys S.A., marking a milestone in the transformation of Ontex. Net cash proceeds are estimated at approximately \u20ac250.0 million. The closing is foreseen early Q2 2023, subject to the customary conditions, including the applicable merger clearance approvals. Proceeds from the transaction will be exclusively applied to reduce debt. Ontex is making progress in the divestment of its remaining Emerging Markets businesses, as discussions with potential acquirers continue. Disposal group classified as held for sale Upon reclassification as held for sale, total impairment losses on goodwill of \u20ac60.0 million have been recognized to present the net assets at the lower of the carrying amount and the fair value less costs of disposal. At December 31, 2022, additional impairment losses on goodwill of \u20ac48.9 million have been recognized based on a comparison of the expected proceeds of disposal less costs to sell versus the carrying amount of the related net assets. \u20ac33.2 million of the impairment is related to the impact of the application of Hyperinflation on the Turkish carrying net assets, which increased with \u20ac29.0 million. The major classes of assets and liabilities comprising the operations classified as held for sale are as follows: December 31, 2022 in \u20ac million Non-current Assets Goodwill 83.8 Intangible assets 17.1 Property, plant and equipment 183.8 Right-of-use assets 16.3 Deferred tax assets 0.4 Other non-current assets 0.5 301.9 Current Assets Inventories 116.1 Trade receivables 115.4 Prepaid expenses and other receivables 53.8 Current tax assets 6.5 Derivative financial assets 0.5 Cash and cash equivalents 59.7 352.0 Assets classified as held for sale 653.9 December 31, 2022 in \u20ac million Non-current liabilities Employee benefit liabilities 3.4 Interest-bearing debts 16.8 Deferred tax liabilities 12.9 33.1 Current liabilities Interest-bearing debts 22.2 Derivative financial liabilities 0.4 Trade payables 154.1 Accrued expenses and other payables 19.6 Employee benefit liabilities 12.5 Current tax liabilities 4.8 Provisions 2.9 216.5 Liabilities related to assets classified as held for sale 249.6 The cumulative foreign exchange losses recognized in other comprehensive income in relation to the discontinued operations as at December 31, 2022 were \u20ac302.4 million. Financial performance The results of the discontinued operations, which have been included in the consolidated income statement, were as follows: Full Year in \u20ac million 2022 2021 Revenue 792.3 617.7 Operating expenses (excl. depreciations and amortizations) (760.6) (601.7) Adjusted EBITDA 31.7 15.9 Income and expenses related to impairment losses and restructuring (122.6) (25.1) EBITDA (90.9) (9.1) Depreciation and amortization - (22.0) Financial result (19.9) (1.1) Profit/(loss) before income tax (110.7) (32.3) Income tax expense (10.9) (10.2) Profit/(loss) for the period from discontinued operations (121.6) (42.4) Full Year Earnings per share (\u20ac) 2022 2021 For discontinuing operations Basic earnings per share (1.50) (0.52) Diluted earnings per share (1.50) (0.52) Cash flows The cash flow information presented for the period ended December 31, 2022 and 2021: Full Year in \u20ac million 2022 2021 Net cash generated from / (used in) operating activities 14.4 81.7 Net cash generated from / (used in) investing activities (13.1) (31.4) Net cash generated from / (used in) financing activities (4.2) (40.6) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (2.9) 9.8 Effects of exchange rate changes on cash and cash equivalents 1.5 (7.8)", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__247-1": { "value": "7.2.3. Net financial debt/LTM Adjusted EBITDA ratio (Leverage) Net financial debt is calculated by adding short-term and long-term debt and deducting cash and cash equivalents. LTM adjusted EBITDA is defined as EBITDA excluding EBITDA adjustments for the last twelve months (LTM). For the years ending December 31, the LTM adjusted EBITDA corresponds with the adjusted EBITDA of the year. Net financial debt/LTM Adjusted EBITDA ratio of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 Discontinued in \u20ac million Continued Operations Total Group Total Group Operations Non-current interest-bearing debts 891.7 16.8 908.5 885.2 Current interest-bearing debts 145.4 22.2 167.6 87.0 Cash and cash equivalents (149.1) (59.7) (208.7) (246.7) Net Financial Debt 888.1 (20.7) 867.4 725.5 LTM adjusted EBITDA 104.0 31.7 135.7 172.2 Leverage ratio 6.4 4.27.17. INTEREST-BEARING DEBTS in \u20ac million December 31, 2022 December 31, 2021 Non-current Borrowings: 791.4 793.1 Senior Notes 573.8 572.1 Syndicated Term Loan A > 1 year 217.3 216.3 Other borrowings 0.2 4.6 Lease and other liabilities 100.4 92.1 Lease liabilities 100.4 92.1 Interest-bearing debts non-current 891.7 885.2 Current Borrowings: 125.4 56.4 Senior revolving Facility B 115.0 - Other borrowings - 14.8 Interests: Other borrowings 10.4 10.4 Total return swap - 31.2 Lease and other liabilities 20.0 30.6 Lease liabilities 20.0 21.5 Other financial liabilities (0.0) 9.1 Interest-bearing debts current 145.4 87.0 Total interest-bearing debts 1,037.1 972.2 All borrowings are denominated in \u20ac as of December 31, 2022. On June 23, 2021 the Group refinanced it\u2019s syndicated credit facilities agreement (Syndicated Term Loan A) for an amount of \u20ac220.0 million, and a revolving credit facility (Senior Revolving Facility B) in an amount of up to \u20ac250.0 million. In addition, it issued a 5-year High Yield Bond (\u2018Senior Notes\u2019) in an amount of \u20ac580.0 million with a coupon of 3.50%. The Syndicated Term Loan A of \u20ac 220.0 million due 2024 is carrying an interest rate of EURIBOR 3 months + margin of 3.90% (subject to the leverage). The Senior Revolving Facility due 2024 is carrying an interest rate of EURIBOR + margin of 3.60% (subject to the leverage), and was utilized for \u20ac115.0 million at closing 2022. On July 29, 2015, a full hedging program (total return swap) for the share-based payment arrangements (LTIP) was implemented. For more information, see note 7.5.6 and 7.28. This program was stopped in 2022. The following table reconciles the movements of the financial liabilities to the cash flows arising from financing activities: December 31, 2022 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 793.1 (0.4) - (0.8) (1.1) 2.6 793.4 (2.0) Lease and other liabilities 92.1 (25.0) 44.8 4.3 (1.6) 0.6 115.2 (14.8) Current interest-bearing debts - Borrowings 56.4 75.9 - 0.7 1.1 - 134.1 (8.7) Lease and other liabilities 30.6 1.0 - 0.2 1.6 0.0 33.5 (13.5) Total liabilities from financing activities 972.2 51.5 44.8 4.4 0.0 3.2 1,076.1 (39.0) Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 133.2 Repayment of borrowings (81.7) December 31, 2021 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 800.4 33.9 - (0.1) (48.2) 7.1 793.1 - Lease and other liabilities 111.0 (22.7) 7.2 1.3 0.2 (4.9) 92.1 - Current interest-bearing debts Borrowings 341.1 (341.9) - 0.2 48.2 8.8 56.4 - Lease and other liabilities 25.2 5.4 - 0.2 (0.2) - 30.6 - Total liabilities from financing activities 1,277.7 (325.3) 7.2 1.7 0.0 10.9 972.2 - Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 799.3 Repayment of borrowings (1,124.7)", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__113": { "value": "7.2.5. Adjusted Basic Earnings and Adjusted Basic Earnings per Share Adjusted Basic Earnings (or Adjusted Profit) are defined as profit for the period plus EBITDA adjustments and tax effect on EBITDA adjustments, attributable to the owners of the parent. Adjusted Basic Earnings per share are defined as Adjusted Basic Earnings divided by the weighted average number of ordinary shares. Adjusted Basic Earnings per Share for the years ended December 31 are presented in note 7.16 \u2018Earnings per share\u2019.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__255-1": { "value": "7.3. CAPITAL MANAGEMENT The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern in order to provide benefits for shareholders. The Group monitors capital on the basis of the net financial debt position and its leverage. The Group\u2019s net financial debt position is calculated by adding all short and long-term interest-bearing debts and by deducting the available short-term liquidity. The leverage is computed as the net financial debt divided by the LTM adjusted EBITDA (i.e. EBITDA plus EBITDA adjustments for the last twelve months (LTM)). The net financial debt and leverage of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 in \u20ac million Non-current interest-bearing debts 908.5 885.2 Current interest-bearing debts 167.6 87.0 Cash and cash equivalents (208.7) (246.7) Net Financial Debt 867.4 725.5 LTM Adjusted EBITDA 135.7 172.2 Net Financial Debt/LTM Adjusted EBITDA ratio 6.4 4.2 During 2022, the debt covenants related to the available credit facilities have been renegotiated and replaced by a liquidity covenant, which is further disclosed in note 7.4. Management has prepared detailed budgets and cash flow forecasts, which reflect the strategy of the Group. While there may be limited headroom on reaching the covenants, the Company is confident that it will meet them, reassured by the business performance so far in 2023, and the progress made in the divestment of the Mexican assets. The closing is expected in the second quarter and the proceeds will be used to pay back the \u20ac220.0 million term loan. Moreover, the Group is currently in discussions with the banks to discuss the revolving credit facility extension, currently maturing mid-2024, and will address conditions that meet the financing needs of the company. 7.4.2. Income taxes The Group has tax losses and other tax incentives usable to offset future taxable profits, mainly in Belgium, France and Spain amounting to \u20ac544.5 million at December 31, 2022 (\u20ac628.0 million at December 31, 2021). The European Commission challenged Belgium\u2019s excess profit ruling (EPR) system, characterizing this system as illegal state aid. Ontex, through its Belgian subsidiary Ontex BV, had an EPR covering the years 2011-2015. Ontex has lodged an appeal against this EC decision. The General Court has handed down its judgment on February 14, 2019 in the joint case of Belgium vs Commission and Magnetrol International vs Commission. The General Court annulled the Commission\u2019s Decision for the reason that the Commission erroneously considered that the excess profit exemption system constituted an aid scheme. The European Commission has appealed the decision of the General Court to the European Court of Justice and in September 2021 the Court decided that the proceedings regarding the EPR decision must be re-opened before the EU General Court. We await the outcome. Furthermore, the European Commission opened individual investigations in September 2019 into each of the individual EPRs including that of Ontex, as it believes that each EPR grants illegal state aid, even if the EPR system does not constitute an aid \u201cscheme\u201d. The formal investigation into the Ontex EPR continues and it is unclear when a final decision can be expected. Ontex will have the right to appeal against any decision that concludes the Ontex EPR grants illegal state aid. Any such appeal will take some time to be heard. Ontex had fully taken into account the impact of the Commission\u2019s position that the EPR system is illegal state aid being successful, and the Commission concluding that the Ontex EPR grants illegal state aid in its tax position. Since the outcome of both challenges is not yet final, Ontex will not release the relevant provisions at this stage. The Group has only recognized deferred tax assets on \u20ac20.6 million of tax losses and other tax incentives out of the \u20ac544.5 million mentioned above. The measurement of these deferred tax assets depends on a number of judgmental assumptions regarding the future probable taxable profits of different Group subsidiaries in different jurisdictions. These estimates are made prudently to the extent of the best current knowledge. The Group applies significant judgement in identifying uncertainties over income tax treatments. Since the Group operates in a complex multinational environment, it assesses whether certain uncertain tax provisions should be recognized in its consolidated financial statements (based on the requirements of IFRIC 23).7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions.7.4.9. Discontinued operations and disposal group held for sale Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. As such, these operations have been classified as a disposal group held for sale and presented separately in the statement of financial position. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. On December 31, 2022, the discontinued CGUs (Assets held for Sale) are carried at their estimated fair value less cost to sell. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale.7.4.10. Operations in Russia The Group is following closely the developments in the conflict between Russia and Ukraine as this disrupts Ontex\u2019s ability to operate in these regions. Ontex\u2019s first focus is the safety of its employees, and the Group is providing the necessary support. Ontex has sales and marketing offices in Russia and Ukraine and a manufacturing plant in Noginsk, near Moscow. In 2022, the Group generated approximately \u20ac157.2 million revenue in Russia. The fixed assets held in Russia represent approximately \u20ac27.8 million consolidated fixed assets, including mainly machinery and right-of-use assets (leased manufacturing facilities). The manufacturing and commercial operations are ongoing as the Russian Ontex operation provides essential care products, but these are significantly dependent from the supply of the necessary raw materials and resources to the local manufacturing facility. From the start of the invasion of Ukraine by Russia, Ontex has defined tight conditions to its continued operation in Russia including an investment stop as well as a stop on exports from Russia and the adaptation to the evolving economic sanctions and supply disruptions. We have evolved our operating model to ensure compliance with the evolving applicable regulations on economic sanctions. This has led to the progressive autonomation of most local activities in Russia within a framework defined by the Group, allowing to remain compliant to Ontex\u2019s standards on quality, safety as well as financial controls, reporting and objectives. As the continuity of operations and the associated financial transactions remains with some uncertainties given the evolution of sanctions, the Group has decided to separate and then impair a portion of goodwill allocated to its Russian business for an amount of \u20ac84.1 million (see note 7.9.).", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__254-1": { "value": "7.3. CAPITAL MANAGEMENT The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern in order to provide benefits for shareholders. The Group monitors capital on the basis of the net financial debt position and its leverage. The Group\u2019s net financial debt position is calculated by adding all short and long-term interest-bearing debts and by deducting the available short-term liquidity. The leverage is computed as the net financial debt divided by the LTM adjusted EBITDA (i.e. EBITDA plus EBITDA adjustments for the last twelve months (LTM)). The net financial debt and leverage of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 in \u20ac million Non-current interest-bearing debts 908.5 885.2 Current interest-bearing debts 167.6 87.0 Cash and cash equivalents (208.7) (246.7) Net Financial Debt 867.4 725.5 LTM Adjusted EBITDA 135.7 172.2 Net Financial Debt/LTM Adjusted EBITDA ratio 6.4 4.2 During 2022, the debt covenants related to the available credit facilities have been renegotiated and replaced by a liquidity covenant, which is further disclosed in note 7.4. 7.4.1. Liquidity situation The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. The \u20ac220.0 million term loan and the \u20ac250.0 million revolving credit facility, of which \u20ac115.0 million was utilized on December 31, 2022, are subject to debt covenants. For the full year 2022, these debt covenants have been renegotiated and replaced by a liquidity covenant which the Group complied with. For 2023, the liquidity covenant to be met on March 31 is defined as cash and cash equivalents plus the non-used portion of the revolving credit facility to exceed \u20ac200.0 million. The leverage covenants to be met at June 30, 2023 and December 31, 2023 are defined as the ratio of net financial debt over the last-twelve-months adjusted EBITDA not to exceed 4.75 and 3.75 respectively. Management has prepared detailed budgets and cash flow forecasts, which reflect the strategy of the Group. While there may be limited headroom on reaching the covenants, the Company is confident that it will meet them, reassured by the business performance so far in 2023, and the progress made in the divestment of the Mexican assets. The closing is expected in the second quarter and the proceeds will be used to pay back the \u20ac220.0 million term loan. Moreover, the Group is currently in discussions with the banks to discuss the revolving credit facility extension, currently maturing mid-2024, and will address conditions that meet the financing needs of the company. 7.5.8. Liquidity risk Group treasury monitors rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities (note 7.17 Interest-bearing debts) at all times so that the Group does not breach borrowing limits or covenants (where applicable) on its borrowing facilities. The table below analyzes the Group\u2019s financial liabilities (including interest payments) into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Less than Between 1 Between 2 Over 5 years in \u20ac million 1 year and 2 years and 5 years At December 31, 2022 Interest-bearing debts (34.0) (361.6) (611.0) - Lease liabilities (24.0) (20.3) (38.7) (60.2) Trade payables (405.3) - - - Total non-derivative financial liabilities (463.3) (381.9) (649.7) (60.2) Interest rate swaps (0.9) (0.9) - - Forward foreign exchange contracts (531.8) (12.0) - - Total derivative financial liabilities (532.7) (12.9) - - At December 31, 2021 Interest-bearing debts (28.5) (31.2) (857.0) (0.0) Lease liabilities (26.0) (22.1) (42.2) (40.4) Trade payables (532.6) - - - Total non-derivative financial liabilities (587.2) (53.3) (899.1) (40.4) Interest rate swaps (0.9) (0.9) (0.9) - Forward foreign exchange contracts (267.4) (11.3) - - Total derivative financial liabilities (268.3) (12.2) (0.9) - .7.17. INTEREST-BEARING DEBTS in \u20ac million December 31, 2022 December 31, 2021 Non-current Borrowings: 791.4 793.1 Senior Notes 573.8 572.1 Syndicated Term Loan A > 1 year 217.3 216.3 Other borrowings 0.2 4.6 Lease and other liabilities 100.4 92.1 Lease liabilities 100.4 92.1 Interest-bearing debts non-current 891.7 885.2 Current Borrowings: 125.4 56.4 Senior revolving Facility B 115.0 - Other borrowings - 14.8 Interests: Other borrowings 10.4 10.4 Total return swap - 31.2 Lease and other liabilities 20.0 30.6 Lease liabilities 20.0 21.5 Other financial liabilities (0.0) 9.1 Interest-bearing debts current 145.4 87.0 Total interest-bearing debts 1,037.1 972.2 All borrowings are denominated in \u20ac as of December 31, 2022. On June 23, 2021 the Group refinanced it\u2019s syndicated credit facilities agreement (Syndicated Term Loan A) for an amount of \u20ac220.0 million, and a revolving credit facility (Senior Revolving Facility B) in an amount of up to \u20ac250.0 million. In addition, it issued a 5-year High Yield Bond (\u2018Senior Notes\u2019) in an amount of \u20ac580.0 million with a coupon of 3.50%. The Syndicated Term Loan A of \u20ac 220.0 million due 2024 is carrying an interest rate of EURIBOR 3 months + margin of 3.90% (subject to the leverage). The Senior Revolving Facility due 2024 is carrying an interest rate of EURIBOR + margin of 3.60% (subject to the leverage), and was utilized for \u20ac115.0 million at closing 2022. On July 29, 2015, a full hedging program (total return swap) for the share-based payment arrangements (LTIP) was implemented. For more information, see note 7.5.6 and 7.28. This program was stopped in 2022. The following table reconciles the movements of the financial liabilities to the cash flows arising from financing activities: December 31, 2022 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 793.1 (0.4) - (0.8) (1.1) 2.6 793.4 (2.0) Lease and other liabilities 92.1 (25.0) 44.8 4.3 (1.6) 0.6 115.2 (14.8) Current interest-bearing debts - Borrowings 56.4 75.9 - 0.7 1.1 - 134.1 (8.7) Lease and other liabilities 30.6 1.0 - 0.2 1.6 0.0 33.5 (13.5) Total liabilities from financing activities 972.2 51.5 44.8 4.4 0.0 3.2 1,076.1 (39.0) Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 133.2 Repayment of borrowings (81.7) December 31, 2021 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 800.4 33.9 - (0.1) (48.2) 7.1 793.1 - Lease and other liabilities 111.0 (22.7) 7.2 1.3 0.2 (4.9) 92.1 - Current interest-bearing debts Borrowings 341.1 (341.9) - 0.2 48.2 8.8 56.4 - Lease and other liabilities 25.2 5.4 - 0.2 (0.2) - 30.6 - Total liabilities from financing activities 1,277.7 (325.3) 7.2 1.7 0.0 10.9 972.2 - Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 799.3 Repayment of borrowings (1,124.7) 7.17.1. Collateral for borrowings The Group is subject to regular information covenants, and certain financial ratios are monitored. At year-end 2022 and 2021, all covenants were met. No assets have been pledged in the context of the syndicated term loans. However, certain subsidiaries act as guarantors for these loans. For local borrowings, some machinery are pledged. 7.17.2. Other information Serenity SPA has a total of \u20ac62.0 million lines of credit available, of which \u20ac19.5 million has been used through the issuance of external bank guarantees: \u2022 \u20ac30.0 million from UniCredit \u2022 \u20ac25.0 million from UBI \u2022 \u20ac7.0 million from BNL A line of credit of AUD 1.0 million has been granted to Ontex Manufacturing Pty Ltd by Commonwealth Bank Australia, of which AUD 0.4 million has been used. For Ontex BV, a bank guarantee issued by BNL is in place for \u20ac2.5 million in favor of the Italian Custom Agency as at December 31, 2022. .", "dimensions": { "concept": "ifrs-full:DescriptionOfUncertaintiesOfEntitysAbilityToContinueAsGoingConcern", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__252": { "value": "7.3. CAPITAL MANAGEMENT The Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern in order to provide benefits for shareholders. The Group monitors capital on the basis of the net financial debt position and its leverage. The Group\u2019s net financial debt position is calculated by adding all short and long-term interest-bearing debts and by deducting the available short-term liquidity. The leverage is computed as the net financial debt divided by the LTM adjusted EBITDA (i.e. EBITDA plus EBITDA adjustments for the last twelve months (LTM)). The net financial debt and leverage of the Group for the years ended December 31 are as follows: December 31, 2022 December 31, 2021 in \u20ac million Non-current interest-bearing debts 908.5 885.2 Current interest-bearing debts 167.6 87.0 Cash and cash equivalents (208.7) (246.7) Net Financial Debt 867.4 725.5 LTM Adjusted EBITDA 135.7 172.2 Net Financial Debt/LTM Adjusted EBITDA ratio 6.4 4.2 During 2022, the debt covenants related to the available credit facilities have been renegotiated and replaced by a liquidity covenant, which is further disclosed in note 7.4. ", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__257-1": { "value": "7.4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The amounts presented in the consolidated financial statements involve the use of estimates and assumptions about the future. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The actual amounts may differ from these estimates. The estimates and assumptions that could have an impact on the consolidated financial statements are discussed below. 7.4.1. Liquidity situation The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities during the normal course of business. The \u20ac220.0 million term loan and the \u20ac250.0 million revolving credit facility, of which \u20ac115.0 million was utilized on December 31, 2022, are subject to debt covenants. For the full year 2022, these debt covenants have been renegotiated and replaced by a liquidity covenant which the Group complied with. For 2023, the liquidity covenant to be met on March 31 is defined as cash and cash equivalents plus the non-used portion of the revolving credit facility to exceed \u20ac200.0 million. The leverage covenants to be met at June 30, 2023 and December 31, 2023 are defined as the ratio of net financial debt over the last-twelve-months adjusted EBITDA not to exceed 4.75 and 3.75 respectively. Management has prepared detailed budgets and cash flow forecasts, which reflect the strategy of the Group. While there may be limited headroom on reaching the covenants, the Company is confident that it will meet them, reassured by the business performance so far in 2023, and the progress made in the divestment of the Mexican assets. The closing is expected in the second quarter and the proceeds will be used to pay back the \u20ac220.0 million term loan. Moreover, the Group is currently in discussions with the banks to discuss the revolving credit facility extension, currently maturing mid-2024, and will address conditions that meet the financing needs of the company. 7.4.2. Income taxes The Group has tax losses and other tax incentives usable to offset future taxable profits, mainly in Belgium, France and Spain amounting to \u20ac544.5 million at December 31, 2022 (\u20ac628.0 million at December 31, 2021). The European Commission challenged Belgium\u2019s excess profit ruling (EPR) system, characterizing this system as illegal state aid. Ontex, through its Belgian subsidiary Ontex BV, had an EPR covering the years 2011-2015. Ontex has lodged an appeal against this EC decision. The General Court has handed down its judgment on February 14, 2019 in the joint case of Belgium vs Commission and Magnetrol International vs Commission. The General Court annulled the Commission\u2019s Decision for the reason that the Commission erroneously considered that the excess profit exemption system constituted an aid scheme. The European Commission has appealed the decision of the General Court to the European Court of Justice and in September 2021 the Court decided that the proceedings regarding the EPR decision must be re-opened before the EU General Court. We await the outcome. Furthermore, the European Commission opened individual investigations in September 2019 into each of the individual EPRs including that of Ontex, as it believes that each EPR grants illegal state aid, even if the EPR system does not constitute an aid \u201cscheme\u201d. The formal investigation into the Ontex EPR continues and it is unclear when a final decision can be expected. Ontex will have the right to appeal against any decision that concludes the Ontex EPR grants illegal state aid. Any such appeal will take some time to be heard. Ontex had fully taken into account the impact of the Commission\u2019s position that the EPR system is illegal state aid being successful, and the Commission concluding that the Ontex EPR grants illegal state aid in its tax position. Since the outcome of both challenges is not yet final, Ontex will not release the relevant provisions at this stage. The Group has only recognized deferred tax assets on \u20ac20.6 million of tax losses and other tax incentives out of the \u20ac544.5 million mentioned above. The measurement of these deferred tax assets depends on a number of judgmental assumptions regarding the future probable taxable profits of different Group subsidiaries in different jurisdictions. These estimates are made prudently to the extent of the best current knowledge. The Group applies significant judgement in identifying uncertainties over income tax treatments. Since the Group operates in a complex multinational environment, it assesses whether certain uncertain tax provisions should be recognized in its consolidated financial statements (based on the requirements of IFRIC 23). 7.4.3. Business combinations For business combinations, the Group must make assumptions and estimates to determine the purchase price allocation of the business being acquired. To do so, the Group must determine the acquisition-date fair value of the identifiable assets acquired and liabilities assumed. These assumptions and estimates have an impact on the asset and liability amounts recorded in the Consolidated Statement of Financial Position on the acquisition date. In addition, the estimated useful lives of the acquired property, plant and equipment, the identification of other intangible assets and the determination of the indefinite or finite useful lives of other intangible assets acquired requires significant judgments and will have an impact on the Group\u2019s profit or loss. 7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions. 7.4.5. Expected useful lives The expected useful lives of the property, plant and equipment and intangible assets must be estimated. The determination of the useful lives of the assets is based on management\u2019s judgment and it is reviewed at least at each financial year-end, pursuant to IAS 16 and IAS 38. 7.4.6. Fair value of derivatives and other financial instruments The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. All derivative financial instruments are, in accordance with IFRS 7, level 2. This means valuation methods are used for which all inputs that have a significant effect on the recorded fair value are observable in the market, either directly or indirectly. 7.4.7. Employee benefits The carrying amount of the Group\u2019s employee benefit obligations is determined on an actuarial basis using certain assumptions. One particularly sensitive assumption used for determining the net cost of the benefits granted is the discount rate. Any change to this assumption will affect the carrying amount of those obligations. The discount rate depends on the duration of the benefit, i.e. the average duration of the engagements, weighted with the present value of the costs linked to those engagements. According to IAS 19, the discount rate should correspond to the rate of high-quality corporate bonds of similar term to the benefits valued and in the same currency. 7.4.8. Revenue recognition For the accrual for volume discounts (to customers and from suppliers) some judgements are made on the impact of commercial decisions that will influence the final discount to be received or to be granted. 7.4.9. Discontinued operations and disposal group held for sale Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. As such, these operations have been classified as a disposal group held for sale and presented separately in the statement of financial position. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. On December 31, 2022, the discontinued CGUs (Assets held for Sale) are carried at their estimated fair value less cost to sell. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. 7.4.10. Operations in Russia The Group is following closely the developments in the conflict between Russia and Ukraine as this disrupts Ontex\u2019s ability to operate in these regions. Ontex\u2019s first focus is the safety of its employees, and the Group is providing the necessary support. Ontex has sales and marketing offices in Russia and Ukraine and a manufacturing plant in Noginsk, near Moscow. In 2022, the Group generated approximately \u20ac157.2 million revenue in Russia. The fixed assets held in Russia represent approximately \u20ac27.8 million consolidated fixed assets, including mainly machinery and right-of-use assets (leased manufacturing facilities). The manufacturing and commercial operations are ongoing as the Russian Ontex operation provides essential care products, but these are significantly dependent from the supply of the necessary raw materials and resources to the local manufacturing facility. From the start of the invasion of Ukraine by Russia, Ontex has defined tight conditions to its continued operation in Russia including an investment stop as well as a stop on exports from Russia and the adaptation to the evolving economic sanctions and supply disruptions. We have evolved our operating model to ensure compliance with the evolving applicable regulations on economic sanctions. This has led to the progressive autonomation of most local activities in Russia within a framework defined by the Group, allowing to remain compliant to Ontex\u2019s standards on quality, safety as well as financial controls, reporting and objectives. As the continuity of operations and the associated financial transactions remains with some uncertainties given the evolution of sanctions, the Group has decided to separate and then impair a portion of goodwill allocated to its Russian business for an amount of \u20ac84.1 million (see note 7.9.).Considering the renewed strategy of the Group to refocus its activities on Europe and North America, the Group has reviewed the cash-generating units and has determined the following cash-generating units for the purpose of the goodwill impairment testing: \u2022 Europe \u2022 Russia \u2022 North America Annual impairment reviews are performed during the fourth quarter of each year for all CGUs, except if there would be factors indicating a risk for impairment loss. These reviews compare the carrying value of each CGU with the recoverable amount of the CGU\u2019s assets calculated using a discounted cash flow model. If the recoverable amount is less than the carrying value of the CGU, an impairment loss is recognized immediately in the income statement. Due to the current economic performance of the Group and the modified strategy, the Group has performed an impairment test on a more frequent basis during 2022. The test at half year 2022 revealed that an impairment loss should be recognized on the CGU \u201cRussia\u201d. The test at year-end did not lead to any additional impairment. The judgments and estimates considered in the context of the impairment tests are disclosed in note 7.4.4. Goodwill allocated to the CGUs as at December 31 was as follows: in \u20ac million 2022 2021 Europe 743.1 818.0 North & Central America N/A 205.1 North America 54.9 N/A Middle East, Africa & Asia N/A 16.7 Goodwill allocated to the CGU's 797.9 1,039.9 As mentioned above, the test carried out at half year 2022 resulted in the recognition of an impairment loss of \u20ac84.1 million on the CGU \u201cRussia\u201d reflecting the revised strategy and forecasts. The impairment loss of \u20ac84.1 million has been entirely allocated to goodwill. The recoverable amount of a CGU is determined by means of value-in-use calculations. These calculations are based on pre-tax cash flow projections (prepared in euros) using key parameters from the consolidated financial budget approved by Ontex\u2019 Board of Directors and the Group\u2019s Strategic Plan through 2025. Cash flows in 2026 are determined based on the average growth rate in the Group\u2019s Strategic Plan through 2025. Cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. The key assumptions for the value-in-use calculations used to determine the recoverable amount are those regarding the discount rates, estimated changes to selling prices, product offerings, direct costs, operating margins and terminal growth rates. Climate-related matters were considered but did not have a material impact on the value-in-use calculation as explained in the Non-Financial Statements. The discount rate is a measure based on industry average weighted cost of capital and risk-free rates weighted for the different regions in which the CGU\u2019s are operating. Changes in selling practices and direct costs are based on past practices and expectations of future changes in the market. The calculation uses cash flow projections based on key parameters from the consolidated financial budget approved by the Board of Directors, the Group\u2019s Strategic Plan through 2025, and pre-tax discount rates for each CGU as described in note 7.4.4 Impairment based on current market assessments of the time value of money and the risks specific to the Group. The development of the financial budget and Strategic Plan relies on a number of assumptions, including: \u2022 The market growth, the evolution of the Group\u2019s market share, competitive landscape and innovation trends in the different markets as well as strategic initiatives. \u2022 The product mix. \u2022 The expected evolution of various direct and indirect expenses. \u2022 The estimated future capital expenditure. The assumptions were derived mainly from: \u2022 Available historic data. \u2022 External market research. \u2022 Internal market expectations based on trend reports, etc. The key assumptions used are reviewed and updated on a yearly basis by the Group\u2019s management. Taking into account the excess of the cash-generating unit\u2019s recoverable amount over its carrying amount, and based on sensitivity testing performed, management is of the opinion that any reasonably possible changes in key assumptions on which the recoverable amount is based would not cause the carrying amount to exceed the recoverable amount at December 31, 2022. The Group has performed a sensitivity analysis by reducing the risk-adjusted cash flow projections and by increasing the pre-tax discount rate as disclosed in note 7.4.4 Impairment. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__279-1": { "value": "7.4.6. Fair value of derivatives and other financial instruments The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. All derivative financial instruments are, in accordance with IFRS 7, level 2. This means valuation methods are used for which all inputs that have a significant effect on the recorded fair value are observable in the market, either directly or indirectly.7.5.1. Overview of financial instruments The table below summarizes all financial instruments by category in accordance with IFRS 9 and discloses the fair values of each instrument and the fair value hierarchy: December 31, 2022 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 0.3 0.3 Level 2 Trade receivables 191.8 191.8 Level 2 Other receivables 36.8 36.8 Level 2 Derivative financial assets 12.1 12.1 Interest rate swap 7.7 7.7 Level 2 Forward foreign exchange contracts 4.4 4.4 Level 2 Cash and cash equivalents 149.1 149.1 Level 2 Assets classified as held for sale 661.7 661.7 Level 3 Total Financial Assets 12.1 1,039.7 1,051.8 Interest-bearing debts - non-current 891.7 815.6 Senior Notes 573.8 495.0 Level 1 Syndicated Term Loan A > 1 year 217.3 220.0 Level 2 Lease & other liabilities 100.6 100.6 Level 2 Derivative financial liabilities 15.0 15.0 Forward foreign exchange contracts 13.8 13.8 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Other payables - non-current 0.4 0.4 Level 2 Interest-bearing debts - current 145.4 145.4 Syndicated Term Loan A < 1 year 115.0 115.0 Level 2 Accrued interests - Other 10.4 10.4 Level 2 Lease & other liabilities 20.0 20.0 Level 2 Trade payables 405.3 405.3 Level 2 Other payables - current 22.6 22.6 Level 2 Liabilities related to assets classified as held for sale 249.6 249.6 Level 3 Total Financial Liabilities 15.0 1,714.9 1,653.8 December 31, 2021 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 3.5 3.5 Level 2 Trade receivables 269.8 269.8 Level 2 Other receivables 69.2 69.2 Level 2 Derivative financial assets 5.3 5.3 Forward foreign exchange contracts 4.1 4.1 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Cash and cash equivalents 246.7 246.7 Level 2 Total Financial Assets 5.3 589.3 594.6 Interest-bearing debts - non-current 885.2 870.9 Senior Notes 572.1 554.2 Level 1 Syndicated Term Loan A > 1 year 216.3 220.0 Level 2 Lease & other liabilities 96.7 96.7 Level 2 Derivative financial liabilities 4.1 4.1 Interest rate swap 1.8 1.8 Level 2 Forward foreign exchange contracts 2.3 2.3 Level 2 Other payables - non-current 0.2 0.2 Level 2 Interest-bearing debts - current 87.0 87.0 Accrued interests - Other 10.4 10.4 Level 2 Total return swap 31.2 31.2 Level 2 Lease & other liabilities 45.4 45.4 Level 2 Trade payables 532.6 532.6 Level 2 Other payables - current 39.0 39.0 Level 2 Total Financial Liabilities 4.1 1,544.0 1,533.8 In the context of the Group\u2019s financial risk management, the Group uses derivative instruments to cover specific risks, such as foreign currency exposure, interest rate exposure and commodity price exposure. The following table presents an overview of the derivative instruments outstanding at reporting date: Fair value Nominal amounts in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative financial assets 12.1 5.3 325.0 165.5 Interest rate swap 7.7 0.0 150.0 0.0 Cross-Currency Interest rate swap 0.0 0.0 0.0 4.0 Forward foreign exchange contracts 4.4 4.1 175.0 145.2 Commodity hedging contracts 0.0 1.2 0.0 16.3 Derivative financial liabilities 15.0 4.1 375.8 283.5 Interest rate swap 0.0 1.8 0.0 150.0 Forward foreign exchange contracts 13.8 2.3 368.8 133.5 Commodity hedging contracts 1.2 0.0 7.0 0.0 The derivative instruments presented in the tables above are all designated in a cash flow hedge relationship (see below in notes 7.5.3 to 7.5.5). The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.6 The fair value of a derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is exceeding 12 months and, as a current asset or liability, if the maturity of the hedged item is less than 12 months. The fair value of the derivatives is based on level 2 inputs as defined under IFRS 7.27, meaning inputs that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The above table provides an analysis of financial instruments grouped into Levels 1 to 3 based on the degree to which the fair value (recognized on the statement of financial position or disclosed in the notes) is observable: \u2022 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. \u2022 Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). \u2022 Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair values of financial assets and financial liabilities are based on mathematical models that use market observable data and are determined as follows: \u2022 The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices (includes listed redeemable notes). \u2022 The fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates. \u2022 The fair values of other financial assets and financial liabilities (excluding those described above) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. \u2022 Level 3 liabilities: the amount has been determined based on contractual agreements. The Group has derivative financial instruments which are subject to offsetting, enforceable master netting arrangements and similar agreements. No offsetting needed to be done per December 31, 2022 (nor 2021). The counterparties of the outstanding derivative instruments have an A-credit rating.7.5.3. Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the British pound (GBP), the Polish zloty (PLN), the Australian dollar (AUD) and Russian ruble (RUB) in relation to sales, and the US dollar (USD) and the Czech koruna (CZK) in relation to procurement. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities. The Group also has exposures to the Russian ruble (RUB), Czech koruna (CZK) and Australian dollar (AUD) due to their net investments in foreign operations. For the year ended December 31, 2022, only continuing operations are enclosed. The carrying amounts of the Group's main foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows: Assets Liabilities in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 EUR 1,879.9 1,775.9 2,765.6 2,566.0 USD 132.7 165.9 154.3 212.5 PLN 85.7 100.9 49.7 61.5 GBP 67.0 98.3 42.6 53.6 RUB 30.9 27.1 4.8 4.4 CZK 27.0 28.4 20.9 18.6 AUD 25.4 38.0 17.2 17.4 BRL 0.0 48.7 0.0 43.8 MXN 0.0 51.2 14.0 47.0 DZD 0.0 21.6 0.0 0.3 The Group monitors its foreign exchange exposure closely and will enter into hedging transactions if deemed appropriate to minimize exposure throughout the Group to foreign exchange fluctuations. All hedging decisions are subject to approval of the Board of Directors. The strategy regarding FX hedges was maintained. To manage their foreign exchange risk arising from future commercial transactions, recognized assets and liabilities, the Group uses forward exchange contracts. Foreign exchange risk arises when future commercial transactions, recognized assets and liabilities are denominated in a currency that is not the entity\u2019s functional currency. The Group treasury is responsible for optimizing the net position in each foreign currency when possible and appropriate. The Group applies hedge accounting for the hedge related transactions, the impact of the revaluation is recognized in other comprehensive income. The Group has entered into foreign exchange forward contracts in 2022 maturing at the latest in March 2024 in order to limit volatility in the business resulting from exposures to sales in British pound, Polish zloty, Australian dollar as well as purchases in US dollar and Czech crown during 2023. Based on the hedge strategy, the foreign exchange forward contracts hedge the following forecasted exposures until December 31, 2023: for British pound (GBP) 76.0 million, for Polish zloty (PLN) 310.2 million, for Australian dollar (AUD) 23.1 million, for Czech crown (CZK) 870.2 million, for US dollar (USD) 73.1 million versus EUR and US dollar (USD) 18.2 million versus Czech crown (CZK). The terms of the foreign currency forward contracts have been negotiated to match the terms of the highly probable forecast transactions. The Group applies hedge accounting to the foreign currency forward contracts. The changes in the fair value of these hedging instruments, designated as effective instruments in a cash flow hedge, are recognized in OCI until the moment the transaction occurs. At the moment the transaction leads to the recognition of a trade receivable or a trade payable, this cash flow hedge reserve including the changes in fair value of the hedging instrument is included in P&L where it adjusts revenue/costs or, if the transaction leads to the recognition of a non-financial asset or non-financial liability, as an adjustment of the carrying amount of the asset and liability. Further changes in the hedging instrument are recognized in P&L together with the changes in the trade receivables or payables. For the year ended December 31, 2022, an unrealized loss of \u20ac14.1 million (mainly Mexican peso versus EUR for 11.1 million and US dollar versus EUR for 2.4 million) has been recognized in other comprehensive income, offset by an unrealized gain of \u20ac3.8 million (British pound mainly). As of December 31, 2022, the fair value of the derivative financial asset for the foreign exchange contracts amounted to \u20ac4.4 million (2021: \u20ac4.1 million) and of the derivative financial liability amounted to \u20ac13.8 million (2021: \u20ac2.3 million). An amount of \u20ac0.4 million was reclassified to P&L (loss) during 2022. The following table sets forth the impact on pre-tax profit and equity for the year of a 10% weakening/strengthening of the Euro against the reported currency with all other variables held constant. The impact is mainly as a result of foreign exchange gains/losses on translation of foreign currency denominated trade receivables and payables and related derivative positions as at the respective statement of financial position dates. 10% weakening of the EUR 10% strengthening of the EUR 2022 2021* 2022 2021* in \u20ac million Impact on P&L Impact on Equity Impact on P&L Impact on equity AUD (0.2) (1.4) (0.2) 0.2 1.2 0.1 GBP (0.9) (8.5) (0.9) 0.8 7.0 0.7 PLN (0.8) (6.5) (0.8) 0.7 5.3 0.6 USD (1.9) 4.5 (1.3) 1.6 (3.5) 1.1 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations7.5.4. Interest rate risk The Group\u2019s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable rates. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. These risks are managed centrally by Group treasury taking into account the expectations of the Group with respect to the evolutions of the market rates. The Group has used interest rate swaps to manage these risks. Considering that the floating rate borrowings on the Syndicated Term Loan A (EURIBOR + margin) are partially hedged through interest rate swaps, the interest expense recognized in the consolidated income statement is to a limited extent subject to interest rate volatility, as apart from the syndicated term loan A, there has also been \u20ac115.0m withdrawn on Floating Rate Syndicated Term Loan B, carrying an interest of EURIBOR 1 month + margin of 3.60%. Sensitivity of the fair value of derivative financial instruments related to loans: at December 31,2022, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been respectively \u20ac0.2 million higher/lower. At December 31,2021, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been negligible. Floating Rate Syndicated Term Loan A of \u20ac220.0 million due 2024 is carrying an interest of EURIBOR 3 month + margin of 3.90%. The notional principal amounts of the outstanding fixed payer interest rate swap contract at December 31, 2022 is \u20ac150.0 million as per below table: Duration Fixed interest rate % Amount in \u20ac million 3 Years 0.5950% 150.0 Total 150.0 The OCI net impact for 2022 was a \u20ac9.5 million gain. \u20ac0.4 million was reclassified to P&L (loss) during 2022.7.5.5. Price risk (commodity) The Group has some exposure to the price of oil because certain of the raw materials used in production are manufactured from oil derivatives. These include glues, polyethylene, propylene and polypropylene. In relation to our fluff exposure, the Group has arrangements with certain of their fluff suppliers that reduce our exposure to volatility in fluff prices. The Group also decided to continue to hedge a portion of the propylene, polypropylene and polyethylene exposure in 2022. Forward contracts to cover the commodity price risk are being reviewed and potentially executed monthly. Forward contracts are initiated over a future period of 12 months covering monthly expected exposure. The total notional amount hedged in 2022 was \u20ac36.6 million covering propylene (\u20ac15.7 million), polypropylene (\u20ac14.5 million) and LDPE (\u20ac6.4 million). The average hedged rate for 2022 was \u20ac1,154/Ton for propylene, \u20ac2,085/Ton for polypropylene and \u20ac2,232/Ton for LDPE. The OCI net impact for 2022 was a \u20ac2.3 million loss. \u20ac2.3 million was reclassified to P&L (gain) during 2022.", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__278-1": { "value": "7.4.6. Fair value of derivatives and other financial instruments The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. All derivative financial instruments are, in accordance with IFRS 7, level 2. This means valuation methods are used for which all inputs that have a significant effect on the recorded fair value are observable in the market, either directly or indirectly.7.5.1. Overview of financial instruments The table below summarizes all financial instruments by category in accordance with IFRS 9 and discloses the fair values of each instrument and the fair value hierarchy: December 31, 2022 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 0.3 0.3 Level 2 Trade receivables 191.8 191.8 Level 2 Other receivables 36.8 36.8 Level 2 Derivative financial assets 12.1 12.1 Interest rate swap 7.7 7.7 Level 2 Forward foreign exchange contracts 4.4 4.4 Level 2 Cash and cash equivalents 149.1 149.1 Level 2 Assets classified as held for sale 661.7 661.7 Level 3 Total Financial Assets 12.1 1,039.7 1,051.8 Interest-bearing debts - non-current 891.7 815.6 Senior Notes 573.8 495.0 Level 1 Syndicated Term Loan A > 1 year 217.3 220.0 Level 2 Lease & other liabilities 100.6 100.6 Level 2 Derivative financial liabilities 15.0 15.0 Forward foreign exchange contracts 13.8 13.8 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Other payables - non-current 0.4 0.4 Level 2 Interest-bearing debts - current 145.4 145.4 Syndicated Term Loan A < 1 year 115.0 115.0 Level 2 Accrued interests - Other 10.4 10.4 Level 2 Lease & other liabilities 20.0 20.0 Level 2 Trade payables 405.3 405.3 Level 2 Other payables - current 22.6 22.6 Level 2 Liabilities related to assets classified as held for sale 249.6 249.6 Level 3 Total Financial Liabilities 15.0 1,714.9 1,653.8 December 31, 2021 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 3.5 3.5 Level 2 Trade receivables 269.8 269.8 Level 2 Other receivables 69.2 69.2 Level 2 Derivative financial assets 5.3 5.3 Forward foreign exchange contracts 4.1 4.1 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Cash and cash equivalents 246.7 246.7 Level 2 Total Financial Assets 5.3 589.3 594.6 Interest-bearing debts - non-current 885.2 870.9 Senior Notes 572.1 554.2 Level 1 Syndicated Term Loan A > 1 year 216.3 220.0 Level 2 Lease & other liabilities 96.7 96.7 Level 2 Derivative financial liabilities 4.1 4.1 Interest rate swap 1.8 1.8 Level 2 Forward foreign exchange contracts 2.3 2.3 Level 2 Other payables - non-current 0.2 0.2 Level 2 Interest-bearing debts - current 87.0 87.0 Accrued interests - Other 10.4 10.4 Level 2 Total return swap 31.2 31.2 Level 2 Lease & other liabilities 45.4 45.4 Level 2 Trade payables 532.6 532.6 Level 2 Other payables - current 39.0 39.0 Level 2 Total Financial Liabilities 4.1 1,544.0 1,533.8 In the context of the Group\u2019s financial risk management, the Group uses derivative instruments to cover specific risks, such as foreign currency exposure, interest rate exposure and commodity price exposure. The following table presents an overview of the derivative instruments outstanding at reporting date: Fair value Nominal amounts in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative financial assets 12.1 5.3 325.0 165.5 Interest rate swap 7.7 0.0 150.0 0.0 Cross-Currency Interest rate swap 0.0 0.0 0.0 4.0 Forward foreign exchange contracts 4.4 4.1 175.0 145.2 Commodity hedging contracts 0.0 1.2 0.0 16.3 Derivative financial liabilities 15.0 4.1 375.8 283.5 Interest rate swap 0.0 1.8 0.0 150.0 Forward foreign exchange contracts 13.8 2.3 368.8 133.5 Commodity hedging contracts 1.2 0.0 7.0 0.0 The derivative instruments presented in the tables above are all designated in a cash flow hedge relationship (see below in notes 7.5.3 to 7.5.5). The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.6 The fair value of a derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is exceeding 12 months and, as a current asset or liability, if the maturity of the hedged item is less than 12 months. The fair value of the derivatives is based on level 2 inputs as defined under IFRS 7.27, meaning inputs that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The above table provides an analysis of financial instruments grouped into Levels 1 to 3 based on the degree to which the fair value (recognized on the statement of financial position or disclosed in the notes) is observable: \u2022 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. \u2022 Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). \u2022 Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair values of financial assets and financial liabilities are based on mathematical models that use market observable data and are determined as follows: \u2022 The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices (includes listed redeemable notes). \u2022 The fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates. \u2022 The fair values of other financial assets and financial liabilities (excluding those described above) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. \u2022 Level 3 liabilities: the amount has been determined based on contractual agreements. The Group has derivative financial instruments which are subject to offsetting, enforceable master netting arrangements and similar agreements. No offsetting needed to be done per December 31, 2022 (nor 2021). The counterparties of the outstanding derivative instruments have an A-credit rating.The carrying amount of the Group\u2019s trade receivables (net) are denominated in the following currencies: in \u20ac million December 31, 2022 December 31, 2021 EUR 71.8 70.6 PLN 34.5 35.0 USD 29.3 32.9 GBP 26.9 19.2 RUB 16.5 13.4 BRL - 33.1 MXN - 27.2 DZD - 10.1 TRY - 9.2 Other 12.8 18.9 Total 191.8 269.8The carrying amount of the cash and cash equivalents is a reasonable approximation of their fair value.", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__270-1": { "value": "7.4.6. Fair value of derivatives and other financial instruments The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. All derivative financial instruments are, in accordance with IFRS 7, level 2. This means valuation methods are used for which all inputs that have a significant effect on the recorded fair value are observable in the market, either directly or indirectly.7.5.1. Overview of financial instruments The table below summarizes all financial instruments by category in accordance with IFRS 9 and discloses the fair values of each instrument and the fair value hierarchy: December 31, 2022 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 0.3 0.3 Level 2 Trade receivables 191.8 191.8 Level 2 Other receivables 36.8 36.8 Level 2 Derivative financial assets 12.1 12.1 Interest rate swap 7.7 7.7 Level 2 Forward foreign exchange contracts 4.4 4.4 Level 2 Cash and cash equivalents 149.1 149.1 Level 2 Assets classified as held for sale 661.7 661.7 Level 3 Total Financial Assets 12.1 1,039.7 1,051.8 Interest-bearing debts - non-current 891.7 815.6 Senior Notes 573.8 495.0 Level 1 Syndicated Term Loan A > 1 year 217.3 220.0 Level 2 Lease & other liabilities 100.6 100.6 Level 2 Derivative financial liabilities 15.0 15.0 Forward foreign exchange contracts 13.8 13.8 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Other payables - non-current 0.4 0.4 Level 2 Interest-bearing debts - current 145.4 145.4 Syndicated Term Loan A < 1 year 115.0 115.0 Level 2 Accrued interests - Other 10.4 10.4 Level 2 Lease & other liabilities 20.0 20.0 Level 2 Trade payables 405.3 405.3 Level 2 Other payables - current 22.6 22.6 Level 2 Liabilities related to assets classified as held for sale 249.6 249.6 Level 3 Total Financial Liabilities 15.0 1,714.9 1,653.8 December 31, 2021 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 3.5 3.5 Level 2 Trade receivables 269.8 269.8 Level 2 Other receivables 69.2 69.2 Level 2 Derivative financial assets 5.3 5.3 Forward foreign exchange contracts 4.1 4.1 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Cash and cash equivalents 246.7 246.7 Level 2 Total Financial Assets 5.3 589.3 594.6 Interest-bearing debts - non-current 885.2 870.9 Senior Notes 572.1 554.2 Level 1 Syndicated Term Loan A > 1 year 216.3 220.0 Level 2 Lease & other liabilities 96.7 96.7 Level 2 Derivative financial liabilities 4.1 4.1 Interest rate swap 1.8 1.8 Level 2 Forward foreign exchange contracts 2.3 2.3 Level 2 Other payables - non-current 0.2 0.2 Level 2 Interest-bearing debts - current 87.0 87.0 Accrued interests - Other 10.4 10.4 Level 2 Total return swap 31.2 31.2 Level 2 Lease & other liabilities 45.4 45.4 Level 2 Trade payables 532.6 532.6 Level 2 Other payables - current 39.0 39.0 Level 2 Total Financial Liabilities 4.1 1,544.0 1,533.8 In the context of the Group\u2019s financial risk management, the Group uses derivative instruments to cover specific risks, such as foreign currency exposure, interest rate exposure and commodity price exposure. The following table presents an overview of the derivative instruments outstanding at reporting date: Fair value Nominal amounts in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative financial assets 12.1 5.3 325.0 165.5 Interest rate swap 7.7 0.0 150.0 0.0 Cross-Currency Interest rate swap 0.0 0.0 0.0 4.0 Forward foreign exchange contracts 4.4 4.1 175.0 145.2 Commodity hedging contracts 0.0 1.2 0.0 16.3 Derivative financial liabilities 15.0 4.1 375.8 283.5 Interest rate swap 0.0 1.8 0.0 150.0 Forward foreign exchange contracts 13.8 2.3 368.8 133.5 Commodity hedging contracts 1.2 0.0 7.0 0.0 The derivative instruments presented in the tables above are all designated in a cash flow hedge relationship (see below in notes 7.5.3 to 7.5.5). The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.6 The fair value of a derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is exceeding 12 months and, as a current asset or liability, if the maturity of the hedged item is less than 12 months. The fair value of the derivatives is based on level 2 inputs as defined under IFRS 7.27, meaning inputs that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The above table provides an analysis of financial instruments grouped into Levels 1 to 3 based on the degree to which the fair value (recognized on the statement of financial position or disclosed in the notes) is observable: \u2022 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. \u2022 Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). \u2022 Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair values of financial assets and financial liabilities are based on mathematical models that use market observable data and are determined as follows: \u2022 The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices (includes listed redeemable notes). \u2022 The fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates. \u2022 The fair values of other financial assets and financial liabilities (excluding those described above) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. \u2022 Level 3 liabilities: the amount has been determined based on contractual agreements. The Group has derivative financial instruments which are subject to offsetting, enforceable master netting arrangements and similar agreements. No offsetting needed to be done per December 31, 2022 (nor 2021). The counterparties of the outstanding derivative instruments have an A-credit rating.7.5.4. Interest rate risk The Group\u2019s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable rates. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. These risks are managed centrally by Group treasury taking into account the expectations of the Group with respect to the evolutions of the market rates. The Group has used interest rate swaps to manage these risks. Considering that the floating rate borrowings on the Syndicated Term Loan A (EURIBOR + margin) are partially hedged through interest rate swaps, the interest expense recognized in the consolidated income statement is to a limited extent subject to interest rate volatility, as apart from the syndicated term loan A, there has also been \u20ac115.0m withdrawn on Floating Rate Syndicated Term Loan B, carrying an interest of EURIBOR 1 month + margin of 3.60%. Sensitivity of the fair value of derivative financial instruments related to loans: at December 31,2022, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been respectively \u20ac0.2 million higher/lower. At December 31,2021, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been negligible. Floating Rate Syndicated Term Loan A of \u20ac220.0 million due 2024 is carrying an interest of EURIBOR 3 month + margin of 3.90%. The notional principal amounts of the outstanding fixed payer interest rate swap contract at December 31, 2022 is \u20ac150.0 million as per below table: Duration Fixed interest rate % Amount in \u20ac million 3 Years 0.5950% 150.0 Total 150.0 The OCI net impact for 2022 was a \u20ac9.5 million gain. \u20ac0.4 million was reclassified to P&L (loss) during 2022.7.5.5. Price risk (commodity) The Group has some exposure to the price of oil because certain of the raw materials used in production are manufactured from oil derivatives. These include glues, polyethylene, propylene and polypropylene. In relation to our fluff exposure, the Group has arrangements with certain of their fluff suppliers that reduce our exposure to volatility in fluff prices. The Group also decided to continue to hedge a portion of the propylene, polypropylene and polyethylene exposure in 2022. Forward contracts to cover the commodity price risk are being reviewed and potentially executed monthly. Forward contracts are initiated over a future period of 12 months covering monthly expected exposure. The total notional amount hedged in 2022 was \u20ac36.6 million covering propylene (\u20ac15.7 million), polypropylene (\u20ac14.5 million) and LDPE (\u20ac6.4 million). The average hedged rate for 2022 was \u20ac1,154/Ton for propylene, \u20ac2,085/Ton for polypropylene and \u20ac2,232/Ton for LDPE. The OCI net impact for 2022 was a \u20ac2.3 million loss. \u20ac2.3 million was reclassified to P&L (gain) during 2022.The carrying amount of the Group\u2019s trade receivables (net) are denominated in the following currencies: in \u20ac million December 31, 2022 December 31, 2021 EUR 71.8 70.6 PLN 34.5 35.0 USD 29.3 32.9 GBP 26.9 19.2 RUB 16.5 13.4 BRL - 33.1 MXN - 27.2 DZD - 10.1 TRY - 9.2 Other 12.8 18.9 Total 191.8 269.8", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__286": { "value": "7.5. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 7.5.1. Overview of financial instruments The table below summarizes all financial instruments by category in accordance with IFRS 9 and discloses the fair values of each instrument and the fair value hierarchy: December 31, 2022 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 0.3 0.3 Level 2 Trade receivables 191.8 191.8 Level 2 Other receivables 36.8 36.8 Level 2 Derivative financial assets 12.1 12.1 Interest rate swap 7.7 7.7 Level 2 Forward foreign exchange contracts 4.4 4.4 Level 2 Cash and cash equivalents 149.1 149.1 Level 2 Assets classified as held for sale 661.7 661.7 Level 3 Total Financial Assets 12.1 1,039.7 1,051.8 Interest-bearing debts - non-current 891.7 815.6 Senior Notes 573.8 495.0 Level 1 Syndicated Term Loan A > 1 year 217.3 220.0 Level 2 Lease & other liabilities 100.6 100.6 Level 2 Derivative financial liabilities 15.0 15.0 Forward foreign exchange contracts 13.8 13.8 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Other payables - non-current 0.4 0.4 Level 2 Interest-bearing debts - current 145.4 145.4 Syndicated Term Loan A < 1 year 115.0 115.0 Level 2 Accrued interests - Other 10.4 10.4 Level 2 Lease & other liabilities 20.0 20.0 Level 2 Trade payables 405.3 405.3 Level 2 Other payables - current 22.6 22.6 Level 2 Liabilities related to assets classified as held for sale 249.6 249.6 Level 3 Total Financial Liabilities 15.0 1,714.9 1,653.8 December 31, 2021 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 3.5 3.5 Level 2 Trade receivables 269.8 269.8 Level 2 Other receivables 69.2 69.2 Level 2 Derivative financial assets 5.3 5.3 Forward foreign exchange contracts 4.1 4.1 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Cash and cash equivalents 246.7 246.7 Level 2 Total Financial Assets 5.3 589.3 594.6 Interest-bearing debts - non-current 885.2 870.9 Senior Notes 572.1 554.2 Level 1 Syndicated Term Loan A > 1 year 216.3 220.0 Level 2 Lease & other liabilities 96.7 96.7 Level 2 Derivative financial liabilities 4.1 4.1 Interest rate swap 1.8 1.8 Level 2 Forward foreign exchange contracts 2.3 2.3 Level 2 Other payables - non-current 0.2 0.2 Level 2 Interest-bearing debts - current 87.0 87.0 Accrued interests - Other 10.4 10.4 Level 2 Total return swap 31.2 31.2 Level 2 Lease & other liabilities 45.4 45.4 Level 2 Trade payables 532.6 532.6 Level 2 Other payables - current 39.0 39.0 Level 2 Total Financial Liabilities 4.1 1,544.0 1,533.8 In the context of the Group\u2019s financial risk management, the Group uses derivative instruments to cover specific risks, such as foreign currency exposure, interest rate exposure and commodity price exposure. The following table presents an overview of the derivative instruments outstanding at reporting date: Fair value Nominal amounts in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative financial assets 12.1 5.3 325.0 165.5 Interest rate swap 7.7 0.0 150.0 0.0 Cross-Currency Interest rate swap 0.0 0.0 0.0 4.0 Forward foreign exchange contracts 4.4 4.1 175.0 145.2 Commodity hedging contracts 0.0 1.2 0.0 16.3 Derivative financial liabilities 15.0 4.1 375.8 283.5 Interest rate swap 0.0 1.8 0.0 150.0 Forward foreign exchange contracts 13.8 2.3 368.8 133.5 Commodity hedging contracts 1.2 0.0 7.0 0.0 The derivative instruments presented in the tables above are all designated in a cash flow hedge relationship (see below in notes 7.5.3 to 7.5.5). The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.6 The fair value of a derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is exceeding 12 months and, as a current asset or liability, if the maturity of the hedged item is less than 12 months. The fair value of the derivatives is based on level 2 inputs as defined under IFRS 7.27, meaning inputs that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The above table provides an analysis of financial instruments grouped into Levels 1 to 3 based on the degree to which the fair value (recognized on the statement of financial position or disclosed in the notes) is observable: \u2022 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. \u2022 Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). \u2022 Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair values of financial assets and financial liabilities are based on mathematical models that use market observable data and are determined as follows: \u2022 The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices (includes listed redeemable notes). \u2022 The fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates. \u2022 The fair values of other financial assets and financial liabilities (excluding those described above) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. \u2022 Level 3 liabilities: the amount has been determined based on contractual agreements. The Group has derivative financial instruments which are subject to offsetting, enforceable master netting arrangements and similar agreements. No offsetting needed to be done per December 31, 2022 (nor 2021). The counterparties of the outstanding derivative instruments have an A-credit rating. 7.5.2. Financial risk factors The Group's activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and commodity price risk), credit risk and liquidity risk. There have been no changes in the risk management department since last year-end or in any risk management policies. 7.5.3. Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the British pound (GBP), the Polish zloty (PLN), the Australian dollar (AUD) and Russian ruble (RUB) in relation to sales, and the US dollar (USD) and the Czech koruna (CZK) in relation to procurement. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities. The Group also has exposures to the Russian ruble (RUB), Czech koruna (CZK) and Australian dollar (AUD) due to their net investments in foreign operations. For the year ended December 31, 2022, only continuing operations are enclosed. The carrying amounts of the Group's main foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows: Assets Liabilities in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 EUR 1,879.9 1,775.9 2,765.6 2,566.0 USD 132.7 165.9 154.3 212.5 PLN 85.7 100.9 49.7 61.5 GBP 67.0 98.3 42.6 53.6 RUB 30.9 27.1 4.8 4.4 CZK 27.0 28.4 20.9 18.6 AUD 25.4 38.0 17.2 17.4 BRL 0.0 48.7 0.0 43.8 MXN 0.0 51.2 14.0 47.0 DZD 0.0 21.6 0.0 0.3 The Group monitors its foreign exchange exposure closely and will enter into hedging transactions if deemed appropriate to minimize exposure throughout the Group to foreign exchange fluctuations. All hedging decisions are subject to approval of the Board of Directors. The strategy regarding FX hedges was maintained. To manage their foreign exchange risk arising from future commercial transactions, recognized assets and liabilities, the Group uses forward exchange contracts. Foreign exchange risk arises when future commercial transactions, recognized assets and liabilities are denominated in a currency that is not the entity\u2019s functional currency. The Group treasury is responsible for optimizing the net position in each foreign currency when possible and appropriate. The Group applies hedge accounting for the hedge related transactions, the impact of the revaluation is recognized in other comprehensive income. The Group has entered into foreign exchange forward contracts in 2022 maturing at the latest in March 2024 in order to limit volatility in the business resulting from exposures to sales in British pound, Polish zloty, Australian dollar as well as purchases in US dollar and Czech crown during 2023. Based on the hedge strategy, the foreign exchange forward contracts hedge the following forecasted exposures until December 31, 2023: for British pound (GBP) 76.0 million, for Polish zloty (PLN) 310.2 million, for Australian dollar (AUD) 23.1 million, for Czech crown (CZK) 870.2 million, for US dollar (USD) 73.1 million versus EUR and US dollar (USD) 18.2 million versus Czech crown (CZK). The terms of the foreign currency forward contracts have been negotiated to match the terms of the highly probable forecast transactions. The Group applies hedge accounting to the foreign currency forward contracts. The changes in the fair value of these hedging instruments, designated as effective instruments in a cash flow hedge, are recognized in OCI until the moment the transaction occurs. At the moment the transaction leads to the recognition of a trade receivable or a trade payable, this cash flow hedge reserve including the changes in fair value of the hedging instrument is included in P&L where it adjusts revenue/costs or, if the transaction leads to the recognition of a non-financial asset or non-financial liability, as an adjustment of the carrying amount of the asset and liability. Further changes in the hedging instrument are recognized in P&L together with the changes in the trade receivables or payables. For the year ended December 31, 2022, an unrealized loss of \u20ac14.1 million (mainly Mexican peso versus EUR for 11.1 million and US dollar versus EUR for 2.4 million) has been recognized in other comprehensive income, offset by an unrealized gain of \u20ac3.8 million (British pound mainly). As of December 31, 2022, the fair value of the derivative financial asset for the foreign exchange contracts amounted to \u20ac4.4 million (2021: \u20ac4.1 million) and of the derivative financial liability amounted to \u20ac13.8 million (2021: \u20ac2.3 million). An amount of \u20ac0.4 million was reclassified to P&L (loss) during 2022. The following table sets forth the impact on pre-tax profit and equity for the year of a 10% weakening/strengthening of the Euro against the reported currency with all other variables held constant. The impact is mainly as a result of foreign exchange gains/losses on translation of foreign currency denominated trade receivables and payables and related derivative positions as at the respective statement of financial position dates. 10% weakening of the EUR 10% strengthening of the EUR 2022 2021* 2022 2021* in \u20ac million Impact on P&L Impact on Equity Impact on P&L Impact on equity AUD (0.2) (1.4) (0.2) 0.2 1.2 0.1 GBP (0.9) (8.5) (0.9) 0.8 7.0 0.7 PLN (0.8) (6.5) (0.8) 0.7 5.3 0.6 USD (1.9) 4.5 (1.3) 1.6 (3.5) 1.1 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations 7.5.4. Interest rate risk The Group\u2019s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable rates. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. These risks are managed centrally by Group treasury taking into account the expectations of the Group with respect to the evolutions of the market rates. The Group has used interest rate swaps to manage these risks. Considering that the floating rate borrowings on the Syndicated Term Loan A (EURIBOR + margin) are partially hedged through interest rate swaps, the interest expense recognized in the consolidated income statement is to a limited extent subject to interest rate volatility, as apart from the syndicated term loan A, there has also been \u20ac115.0m withdrawn on Floating Rate Syndicated Term Loan B, carrying an interest of EURIBOR 1 month + margin of 3.60%. Sensitivity of the fair value of derivative financial instruments related to loans: at December 31,2022, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been respectively \u20ac0.2 million higher/lower. At December 31,2021, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been negligible. Floating Rate Syndicated Term Loan A of \u20ac220.0 million due 2024 is carrying an interest of EURIBOR 3 month + margin of 3.90%. The notional principal amounts of the outstanding fixed payer interest rate swap contract at December 31, 2022 is \u20ac150.0 million as per below table: Duration Fixed interest rate % Amount in \u20ac million 3 Years 0.5950% 150.0 Total 150.0 The OCI net impact for 2022 was a \u20ac9.5 million gain. \u20ac0.4 million was reclassified to P&L (loss) during 2022. 7.5.5. Price risk (commodity) The Group has some exposure to the price of oil because certain of the raw materials used in production are manufactured from oil derivatives. These include glues, polyethylene, propylene and polypropylene. In relation to our fluff exposure, the Group has arrangements with certain of their fluff suppliers that reduce our exposure to volatility in fluff prices. The Group also decided to continue to hedge a portion of the propylene, polypropylene and polyethylene exposure in 2022. Forward contracts to cover the commodity price risk are being reviewed and potentially executed monthly. Forward contracts are initiated over a future period of 12 months covering monthly expected exposure. The total notional amount hedged in 2022 was \u20ac36.6 million covering propylene (\u20ac15.7 million), polypropylene (\u20ac14.5 million) and LDPE (\u20ac6.4 million). The average hedged rate for 2022 was \u20ac1,154/Ton for propylene, \u20ac2,085/Ton for polypropylene and \u20ac2,232/Ton for LDPE. The OCI net impact for 2022 was a \u20ac2.3 million loss. \u20ac2.3 million was reclassified to P&L (gain) during 2022. 7.5.6. Equity price risk Following the issuance of options, RSU\u2019s and PSU\u2019s as share-based payment arrangements under the different LTIP programs (refer to note 7.28 for details of these programs), the Group is exposed to variations in the Group share price. The Board of Directors of the Group has decided on June 1, 2015 to implement a full hedging program through a total return swap. The purpose of this financial instrument is to effectively hedge the risk that a price increase of the Ontex shares would negatively impact future cash flows related to the share-based payments. The Group entered into a Total Return Swap (\u2018TRS\u2019) agreement with a financial institution to manage its exposure to price volatility related to the shares subject to the stock option, RSU and PSU plans as disclosed in note 7.28. Under the total return swap agreement, the Company will pay interest to the financial institution. At the settlement of the TRS, the Group will receive the underlying shares which will be granted to the beneficiaries of the stock options, RSU\u2019s or PSU\u2019s upon exercise. As such, the Group hedges the risk that the share price would increase when shares have to be issued upon exercise by the beneficiaries of their Options/RSU\u2019s/PSU\u2019s. The shares bought in this context are recognized in deduction of Group equity at the strike price at the moment of entering into the TRS. As the Group takes physical delivery of the shares upon settlement of the TRS (no net settlement), the TRS does not meet the scope of financial instruments in accordance with IAS 32 / IFRS 9. As such, the TRS should not be remeasured at fair value at each closing date. During 2022, the existing program was not renewed and all shares are therefore now owned by the Group. 7.5.7. Credit risk Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to corporate customers, including outstanding receivables and committed transactions. The Group assesses the credit quality of the customer, taking into account its financial position, past experience and other factors based on which individual risk limits are set in accordance with the limits set by business managers. Historical default rates have been below 1% for 2022 and 2021. Trade receivables are spread over different countries and counterparties and there is no large concentration with one or a few counterparties. We refer to note 7.13 for the aging of the receivables and the doubtful receivables. All financial instruments are held at banks and financial institutions with a credit rating of at least A. The maximum exposure to credit risk at the reporting date is the carrying amount as presented in the table above in the note 7.5.1. 7.5.8. Liquidity risk Group treasury monitors rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities (note 7.17 Interest-bearing debts) at all times so that the Group does not breach borrowing limits or covenants (where applicable) on its borrowing facilities. The table below analyzes the Group\u2019s financial liabilities (including interest payments) into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Less than Between 1 Between 2 Over 5 years in \u20ac million 1 year and 2 years and 5 years At December 31, 2022 Interest-bearing debts (34.0) (361.6) (611.0) - Lease liabilities (24.0) (20.3) (38.7) (60.2) Trade payables (405.3) - - - Total non-derivative financial liabilities (463.3) (381.9) (649.7) (60.2) Interest rate swaps (0.9) (0.9) - - Forward foreign exchange contracts (531.8) (12.0) - - Total derivative financial liabilities (532.7) (12.9) - - At December 31, 2021 Interest-bearing debts (28.5) (31.2) (857.0) (0.0) Lease liabilities (26.0) (22.1) (42.2) (40.4) Trade payables (532.6) - - - Total non-derivative financial liabilities (587.2) (53.3) (899.1) (40.4) Interest rate swaps (0.9) (0.9) (0.9) - Forward foreign exchange contracts (267.4) (11.3) - - Total derivative financial liabilities (268.3) (12.2) (0.9) - .", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__276": { "value": "7.5.1. Overview of financial instruments The table below summarizes all financial instruments by category in accordance with IFRS 9 and discloses the fair values of each instrument and the fair value hierarchy: December 31, 2022 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 0.3 0.3 Level 2 Trade receivables 191.8 191.8 Level 2 Other receivables 36.8 36.8 Level 2 Derivative financial assets 12.1 12.1 Interest rate swap 7.7 7.7 Level 2 Forward foreign exchange contracts 4.4 4.4 Level 2 Cash and cash equivalents 149.1 149.1 Level 2 Assets classified as held for sale 661.7 661.7 Level 3 Total Financial Assets 12.1 1,039.7 1,051.8 Interest-bearing debts - non-current 891.7 815.6 Senior Notes 573.8 495.0 Level 1 Syndicated Term Loan A > 1 year 217.3 220.0 Level 2 Lease & other liabilities 100.6 100.6 Level 2 Derivative financial liabilities 15.0 15.0 Forward foreign exchange contracts 13.8 13.8 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Other payables - non-current 0.4 0.4 Level 2 Interest-bearing debts - current 145.4 145.4 Syndicated Term Loan A < 1 year 115.0 115.0 Level 2 Accrued interests - Other 10.4 10.4 Level 2 Lease & other liabilities 20.0 20.0 Level 2 Trade payables 405.3 405.3 Level 2 Other payables - current 22.6 22.6 Level 2 Liabilities related to assets classified as held for sale 249.6 249.6 Level 3 Total Financial Liabilities 15.0 1,714.9 1,653.8 December 31, 2021 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 3.5 3.5 Level 2 Trade receivables 269.8 269.8 Level 2 Other receivables 69.2 69.2 Level 2 Derivative financial assets 5.3 5.3 Forward foreign exchange contracts 4.1 4.1 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Cash and cash equivalents 246.7 246.7 Level 2 Total Financial Assets 5.3 589.3 594.6 Interest-bearing debts - non-current 885.2 870.9 Senior Notes 572.1 554.2 Level 1 Syndicated Term Loan A > 1 year 216.3 220.0 Level 2 Lease & other liabilities 96.7 96.7 Level 2 Derivative financial liabilities 4.1 4.1 Interest rate swap 1.8 1.8 Level 2 Forward foreign exchange contracts 2.3 2.3 Level 2 Other payables - non-current 0.2 0.2 Level 2 Interest-bearing debts - current 87.0 87.0 Accrued interests - Other 10.4 10.4 Level 2 Total return swap 31.2 31.2 Level 2 Lease & other liabilities 45.4 45.4 Level 2 Trade payables 532.6 532.6 Level 2 Other payables - current 39.0 39.0 Level 2 Total Financial Liabilities 4.1 1,544.0 1,533.8 In the context of the Group\u2019s financial risk management, the Group uses derivative instruments to cover specific risks, such as foreign currency exposure, interest rate exposure and commodity price exposure. The following table presents an overview of the derivative instruments outstanding at reporting date: Fair value Nominal amounts in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative financial assets 12.1 5.3 325.0 165.5 Interest rate swap 7.7 0.0 150.0 0.0 Cross-Currency Interest rate swap 0.0 0.0 0.0 4.0 Forward foreign exchange contracts 4.4 4.1 175.0 145.2 Commodity hedging contracts 0.0 1.2 0.0 16.3 Derivative financial liabilities 15.0 4.1 375.8 283.5 Interest rate swap 0.0 1.8 0.0 150.0 Forward foreign exchange contracts 13.8 2.3 368.8 133.5 Commodity hedging contracts 1.2 0.0 7.0 0.0 The derivative instruments presented in the tables above are all designated in a cash flow hedge relationship (see below in notes 7.5.3 to 7.5.5). The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.6 The fair value of a derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is exceeding 12 months and, as a current asset or liability, if the maturity of the hedged item is less than 12 months. The fair value of the derivatives is based on level 2 inputs as defined under IFRS 7.27, meaning inputs that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The above table provides an analysis of financial instruments grouped into Levels 1 to 3 based on the degree to which the fair value (recognized on the statement of financial position or disclosed in the notes) is observable: \u2022 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. \u2022 Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). \u2022 Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair values of financial assets and financial liabilities are based on mathematical models that use market observable data and are determined as follows: \u2022 The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices (includes listed redeemable notes). \u2022 The fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates. \u2022 The fair values of other financial assets and financial liabilities (excluding those described above) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. \u2022 Level 3 liabilities: the amount has been determined based on contractual agreements. The Group has derivative financial instruments which are subject to offsetting, enforceable master netting arrangements and similar agreements. No offsetting needed to be done per December 31, 2022 (nor 2021). The counterparties of the outstanding derivative instruments have an A-credit rating.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__275": { "value": "7.5.1. Overview of financial instruments The table below summarizes all financial instruments by category in accordance with IFRS 9 and discloses the fair values of each instrument and the fair value hierarchy: December 31, 2022 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 0.3 0.3 Level 2 Trade receivables 191.8 191.8 Level 2 Other receivables 36.8 36.8 Level 2 Derivative financial assets 12.1 12.1 Interest rate swap 7.7 7.7 Level 2 Forward foreign exchange contracts 4.4 4.4 Level 2 Cash and cash equivalents 149.1 149.1 Level 2 Assets classified as held for sale 661.7 661.7 Level 3 Total Financial Assets 12.1 1,039.7 1,051.8 Interest-bearing debts - non-current 891.7 815.6 Senior Notes 573.8 495.0 Level 1 Syndicated Term Loan A > 1 year 217.3 220.0 Level 2 Lease & other liabilities 100.6 100.6 Level 2 Derivative financial liabilities 15.0 15.0 Forward foreign exchange contracts 13.8 13.8 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Other payables - non-current 0.4 0.4 Level 2 Interest-bearing debts - current 145.4 145.4 Syndicated Term Loan A < 1 year 115.0 115.0 Level 2 Accrued interests - Other 10.4 10.4 Level 2 Lease & other liabilities 20.0 20.0 Level 2 Trade payables 405.3 405.3 Level 2 Other payables - current 22.6 22.6 Level 2 Liabilities related to assets classified as held for sale 249.6 249.6 Level 3 Total Financial Liabilities 15.0 1,714.9 1,653.8 December 31, 2021 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 3.5 3.5 Level 2 Trade receivables 269.8 269.8 Level 2 Other receivables 69.2 69.2 Level 2 Derivative financial assets 5.3 5.3 Forward foreign exchange contracts 4.1 4.1 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Cash and cash equivalents 246.7 246.7 Level 2 Total Financial Assets 5.3 589.3 594.6 Interest-bearing debts - non-current 885.2 870.9 Senior Notes 572.1 554.2 Level 1 Syndicated Term Loan A > 1 year 216.3 220.0 Level 2 Lease & other liabilities 96.7 96.7 Level 2 Derivative financial liabilities 4.1 4.1 Interest rate swap 1.8 1.8 Level 2 Forward foreign exchange contracts 2.3 2.3 Level 2 Other payables - non-current 0.2 0.2 Level 2 Interest-bearing debts - current 87.0 87.0 Accrued interests - Other 10.4 10.4 Level 2 Total return swap 31.2 31.2 Level 2 Lease & other liabilities 45.4 45.4 Level 2 Trade payables 532.6 532.6 Level 2 Other payables - current 39.0 39.0 Level 2 Total Financial Liabilities 4.1 1,544.0 1,533.8 In the context of the Group\u2019s financial risk management, the Group uses derivative instruments to cover specific risks, such as foreign currency exposure, interest rate exposure and commodity price exposure. The following table presents an overview of the derivative instruments outstanding at reporting date: Fair value Nominal amounts in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative financial assets 12.1 5.3 325.0 165.5 Interest rate swap 7.7 0.0 150.0 0.0 Cross-Currency Interest rate swap 0.0 0.0 0.0 4.0 Forward foreign exchange contracts 4.4 4.1 175.0 145.2 Commodity hedging contracts 0.0 1.2 0.0 16.3 Derivative financial liabilities 15.0 4.1 375.8 283.5 Interest rate swap 0.0 1.8 0.0 150.0 Forward foreign exchange contracts 13.8 2.3 368.8 133.5 Commodity hedging contracts 1.2 0.0 7.0 0.0 The derivative instruments presented in the tables above are all designated in a cash flow hedge relationship (see below in notes 7.5.3 to 7.5.5). The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.6 The fair value of a derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is exceeding 12 months and, as a current asset or liability, if the maturity of the hedged item is less than 12 months. The fair value of the derivatives is based on level 2 inputs as defined under IFRS 7.27, meaning inputs that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The above table provides an analysis of financial instruments grouped into Levels 1 to 3 based on the degree to which the fair value (recognized on the statement of financial position or disclosed in the notes) is observable: \u2022 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. \u2022 Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). \u2022 Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair values of financial assets and financial liabilities are based on mathematical models that use market observable data and are determined as follows: \u2022 The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices (includes listed redeemable notes). \u2022 The fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates. \u2022 The fair values of other financial assets and financial liabilities (excluding those described above) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. \u2022 Level 3 liabilities: the amount has been determined based on contractual agreements. The Group has derivative financial instruments which are subject to offsetting, enforceable master netting arrangements and similar agreements. No offsetting needed to be done per December 31, 2022 (nor 2021). The counterparties of the outstanding derivative instruments have an A-credit rating.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__121": { "value": "7.5.1. Overview of financial instruments The table below summarizes all financial instruments by category in accordance with IFRS 9 and discloses the fair values of each instrument and the fair value hierarchy: December 31, 2022 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 0.3 0.3 Level 2 Trade receivables 191.8 191.8 Level 2 Other receivables 36.8 36.8 Level 2 Derivative financial assets 12.1 12.1 Interest rate swap 7.7 7.7 Level 2 Forward foreign exchange contracts 4.4 4.4 Level 2 Cash and cash equivalents 149.1 149.1 Level 2 Assets classified as held for sale 661.7 661.7 Level 3 Total Financial Assets 12.1 1,039.7 1,051.8 Interest-bearing debts - non-current 891.7 815.6 Senior Notes 573.8 495.0 Level 1 Syndicated Term Loan A > 1 year 217.3 220.0 Level 2 Lease & other liabilities 100.6 100.6 Level 2 Derivative financial liabilities 15.0 15.0 Forward foreign exchange contracts 13.8 13.8 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Other payables - non-current 0.4 0.4 Level 2 Interest-bearing debts - current 145.4 145.4 Syndicated Term Loan A < 1 year 115.0 115.0 Level 2 Accrued interests - Other 10.4 10.4 Level 2 Lease & other liabilities 20.0 20.0 Level 2 Trade payables 405.3 405.3 Level 2 Other payables - current 22.6 22.6 Level 2 Liabilities related to assets classified as held for sale 249.6 249.6 Level 3 Total Financial Liabilities 15.0 1,714.9 1,653.8 December 31, 2021 Designated in hedge At amortized cost Fair value Fair value level in \u20ac million relationship Non-current receivables 3.5 3.5 Level 2 Trade receivables 269.8 269.8 Level 2 Other receivables 69.2 69.2 Level 2 Derivative financial assets 5.3 5.3 Forward foreign exchange contracts 4.1 4.1 Level 2 Commodity hedging contracts 1.2 1.2 Level 2 Cash and cash equivalents 246.7 246.7 Level 2 Total Financial Assets 5.3 589.3 594.6 Interest-bearing debts - non-current 885.2 870.9 Senior Notes 572.1 554.2 Level 1 Syndicated Term Loan A > 1 year 216.3 220.0 Level 2 Lease & other liabilities 96.7 96.7 Level 2 Derivative financial liabilities 4.1 4.1 Interest rate swap 1.8 1.8 Level 2 Forward foreign exchange contracts 2.3 2.3 Level 2 Other payables - non-current 0.2 0.2 Level 2 Interest-bearing debts - current 87.0 87.0 Accrued interests - Other 10.4 10.4 Level 2 Total return swap 31.2 31.2 Level 2 Lease & other liabilities 45.4 45.4 Level 2 Trade payables 532.6 532.6 Level 2 Other payables - current 39.0 39.0 Level 2 Total Financial Liabilities 4.1 1,544.0 1,533.8 In the context of the Group\u2019s financial risk management, the Group uses derivative instruments to cover specific risks, such as foreign currency exposure, interest rate exposure and commodity price exposure. The following table presents an overview of the derivative instruments outstanding at reporting date: Fair value Nominal amounts in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative financial assets 12.1 5.3 325.0 165.5 Interest rate swap 7.7 0.0 150.0 0.0 Cross-Currency Interest rate swap 0.0 0.0 0.0 4.0 Forward foreign exchange contracts 4.4 4.1 175.0 145.2 Commodity hedging contracts 0.0 1.2 0.0 16.3 Derivative financial liabilities 15.0 4.1 375.8 283.5 Interest rate swap 0.0 1.8 0.0 150.0 Forward foreign exchange contracts 13.8 2.3 368.8 133.5 Commodity hedging contracts 1.2 0.0 7.0 0.0 The derivative instruments presented in the tables above are all designated in a cash flow hedge relationship (see below in notes 7.5.3 to 7.5.5). The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.6 The fair value of a derivative is classified as a non-current asset or liability if the remaining maturity of the hedged item is exceeding 12 months and, as a current asset or liability, if the maturity of the hedged item is less than 12 months. The fair value of the derivatives is based on level 2 inputs as defined under IFRS 7.27, meaning inputs that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The above table provides an analysis of financial instruments grouped into Levels 1 to 3 based on the degree to which the fair value (recognized on the statement of financial position or disclosed in the notes) is observable: \u2022 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. \u2022 Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). \u2022 Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair values of financial assets and financial liabilities are based on mathematical models that use market observable data and are determined as follows: \u2022 The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices (includes listed redeemable notes). \u2022 The fair values of derivative instruments are calculated using quoted prices. Where such prices are not available, a discounted cash flow analysis is performed using the applicable yield curve for the duration of the instruments for non-optional derivatives, and option pricing models for optional derivatives. Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. Interest rate swaps are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates. \u2022 The fair values of other financial assets and financial liabilities (excluding those described above) are determined in accordance with generally accepted pricing models based on discounted cash flow analysis. \u2022 Level 3 liabilities: the amount has been determined based on contractual agreements. The Group has derivative financial instruments which are subject to offsetting, enforceable master netting arrangements and similar agreements. No offsetting needed to be done per December 31, 2022 (nor 2021). The counterparties of the outstanding derivative instruments have an A-credit rating.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__292-1": { "value": "In the context of the Group\u2019s financial risk management, the Group uses derivative instruments to cover specific risks, such as foreign currency exposure, interest rate exposure and commodity price exposure. The following table presents an overview of the derivative instruments outstanding at reporting date: Fair value Nominal amounts in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative financial assets 12.1 5.3 325.0 165.5 Interest rate swap 7.7 0.0 150.0 0.0 Cross-Currency Interest rate swap 0.0 0.0 0.0 4.0 Forward foreign exchange contracts 4.4 4.1 175.0 145.2 Commodity hedging contracts 0.0 1.2 0.0 16.3 Derivative financial liabilities 15.0 4.1 375.8 283.5 Interest rate swap 0.0 1.8 0.0 150.0 Forward foreign exchange contracts 13.8 2.3 368.8 133.5 Commodity hedging contracts 1.2 0.0 7.0 0.0 The derivative instruments presented in the tables above are all designated in a cash flow hedge relationship (see below in notes 7.5.3 to 7.5.5). The impact on OCI of the different derivates is as follows: OCI Amounts derecognised Amounts recognised in in \u20ac million December 31, 2021 (Recycled to P&L) in Total Movement 2022 December 31, 2022 2022 2022 Forward foreign exchange contracts 1.0 (10.7) 0.4 (10.3) (9.3) Commodity hedging contracts 1.2 - (2.3) (2.3) (1.1) Interest rate swap (1.8) 9.0 0.4 9.4 7.67.5.3. Foreign exchange risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the British pound (GBP), the Polish zloty (PLN), the Australian dollar (AUD) and Russian ruble (RUB) in relation to sales, and the US dollar (USD) and the Czech koruna (CZK) in relation to procurement. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities. The Group also has exposures to the Russian ruble (RUB), Czech koruna (CZK) and Australian dollar (AUD) due to their net investments in foreign operations. For the year ended December 31, 2022, only continuing operations are enclosed. The carrying amounts of the Group's main foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows: Assets Liabilities in \u20ac million December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 EUR 1,879.9 1,775.9 2,765.6 2,566.0 USD 132.7 165.9 154.3 212.5 PLN 85.7 100.9 49.7 61.5 GBP 67.0 98.3 42.6 53.6 RUB 30.9 27.1 4.8 4.4 CZK 27.0 28.4 20.9 18.6 AUD 25.4 38.0 17.2 17.4 BRL 0.0 48.7 0.0 43.8 MXN 0.0 51.2 14.0 47.0 DZD 0.0 21.6 0.0 0.3 The Group monitors its foreign exchange exposure closely and will enter into hedging transactions if deemed appropriate to minimize exposure throughout the Group to foreign exchange fluctuations. All hedging decisions are subject to approval of the Board of Directors. The strategy regarding FX hedges was maintained. To manage their foreign exchange risk arising from future commercial transactions, recognized assets and liabilities, the Group uses forward exchange contracts. Foreign exchange risk arises when future commercial transactions, recognized assets and liabilities are denominated in a currency that is not the entity\u2019s functional currency. The Group treasury is responsible for optimizing the net position in each foreign currency when possible and appropriate. The Group applies hedge accounting for the hedge related transactions, the impact of the revaluation is recognized in other comprehensive income. The Group has entered into foreign exchange forward contracts in 2022 maturing at the latest in March 2024 in order to limit volatility in the business resulting from exposures to sales in British pound, Polish zloty, Australian dollar as well as purchases in US dollar and Czech crown during 2023. Based on the hedge strategy, the foreign exchange forward contracts hedge the following forecasted exposures until December 31, 2023: for British pound (GBP) 76.0 million, for Polish zloty (PLN) 310.2 million, for Australian dollar (AUD) 23.1 million, for Czech crown (CZK) 870.2 million, for US dollar (USD) 73.1 million versus EUR and US dollar (USD) 18.2 million versus Czech crown (CZK). The terms of the foreign currency forward contracts have been negotiated to match the terms of the highly probable forecast transactions. The Group applies hedge accounting to the foreign currency forward contracts. The changes in the fair value of these hedging instruments, designated as effective instruments in a cash flow hedge, are recognized in OCI until the moment the transaction occurs. At the moment the transaction leads to the recognition of a trade receivable or a trade payable, this cash flow hedge reserve including the changes in fair value of the hedging instrument is included in P&L where it adjusts revenue/costs or, if the transaction leads to the recognition of a non-financial asset or non-financial liability, as an adjustment of the carrying amount of the asset and liability. Further changes in the hedging instrument are recognized in P&L together with the changes in the trade receivables or payables. For the year ended December 31, 2022, an unrealized loss of \u20ac14.1 million (mainly Mexican peso versus EUR for 11.1 million and US dollar versus EUR for 2.4 million) has been recognized in other comprehensive income, offset by an unrealized gain of \u20ac3.8 million (British pound mainly). As of December 31, 2022, the fair value of the derivative financial asset for the foreign exchange contracts amounted to \u20ac4.4 million (2021: \u20ac4.1 million) and of the derivative financial liability amounted to \u20ac13.8 million (2021: \u20ac2.3 million). An amount of \u20ac0.4 million was reclassified to P&L (loss) during 2022. The following table sets forth the impact on pre-tax profit and equity for the year of a 10% weakening/strengthening of the Euro against the reported currency with all other variables held constant. The impact is mainly as a result of foreign exchange gains/losses on translation of foreign currency denominated trade receivables and payables and related derivative positions as at the respective statement of financial position dates. 10% weakening of the EUR 10% strengthening of the EUR 2022 2021* 2022 2021* in \u20ac million Impact on P&L Impact on Equity Impact on P&L Impact on equity AUD (0.2) (1.4) (0.2) 0.2 1.2 0.1 GBP (0.9) (8.5) (0.9) 0.8 7.0 0.7 PLN (0.8) (6.5) (0.8) 0.7 5.3 0.6 USD (1.9) 4.5 (1.3) 1.6 (3.5) 1.1 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operationsThe cumulative foreign exchange losses recognized in other comprehensive income in relation to the discontinued operations as at December 31, 2022 were \u20ac302.4 million. 7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11.", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__233-1": { "value": "7.5.4. Interest rate risk The Group\u2019s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable rates. Borrowings issued at fixed rate expose the Group to fair value interest rate risk. These risks are managed centrally by Group treasury taking into account the expectations of the Group with respect to the evolutions of the market rates. The Group has used interest rate swaps to manage these risks. Considering that the floating rate borrowings on the Syndicated Term Loan A (EURIBOR + margin) are partially hedged through interest rate swaps, the interest expense recognized in the consolidated income statement is to a limited extent subject to interest rate volatility, as apart from the syndicated term loan A, there has also been \u20ac115.0m withdrawn on Floating Rate Syndicated Term Loan B, carrying an interest of EURIBOR 1 month + margin of 3.60%. Sensitivity of the fair value of derivative financial instruments related to loans: at December 31,2022, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been respectively \u20ac0.2 million higher/lower. At December 31,2021, if EURIBOR interest rates had been 10bps higher/lower with all other variables held constant, pre-tax other comprehensive income for the year would have been negligible. Floating Rate Syndicated Term Loan A of \u20ac220.0 million due 2024 is carrying an interest of EURIBOR 3 month + margin of 3.90%. The notional principal amounts of the outstanding fixed payer interest rate swap contract at December 31, 2022 is \u20ac150.0 million as per below table: Duration Fixed interest rate % Amount in \u20ac million 3 Years 0.5950% 150.0 Total 150.0 The OCI net impact for 2022 was a \u20ac9.5 million gain. \u20ac0.4 million was reclassified to P&L (loss) during 2022.Reconciliation of the post-employment employee benefit liabilities in \u20ac million December 31, 2022 December 31, 2021 RECOGNITION OF THE OBLIGATION Defined benefit obligation (DBO) at end of period (26.2) (33.6) Fair value of plan assets at end of period 15.2 14.7 Funded status (11.1) (18.9) Net (liability)/asset in statement of financial position (11.1) (18.9) Defined benefit cost Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost recognized in Income Statement (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Interest income on plan assets 0.2 0.1 Net interest cost (0.2) (0.2) Pension expense (2.4) (2.8) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF THE OBLIGATION Defined benefit obligation (DBO) at beginning of year (33.6) (36.3) Transfer to liability held for sale 2.4 - Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Participant contributions (0.1) (0.1) Administrative expenses included in the DBO 0.1 0.1 Taxes included in the DBO 0.1 0.2 Benefit payments from plan 0.4 0.2 Benefit payments from employer 0.5 0.5 Effect of changes in financial assumptions 5.4 2.5 Effect of experience adjustments 1.1 2.0 Effect of changes in foreign exchange rates - 0.3 Defined benefit obligation (DBO) at end of year (26.2) (33.6) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF PLAN ASSETS AT FAIR VALUE Fair value of plan assets at beginning of year 14.7 13.5 Transfer to liability held for sale (0.4) - Interest income 0.2 0.1 Employer contribution 1.6 1.9 Plan participants' contributions 0.1 0.1 Benefit payments from plan (0.4) (0.2) Benefit payments from employer (0.5) (0.5) Administrative expenses included in the DBO (0.1) (0.1) Taxes paid from plan assets (0.1) (0.2) Return on plan assets (excluding interest income) 0.0 0.1 Fair value of plan assets at end of year 15.2 14.7 in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF NET (LIABILITY)/ASSET IN STATEMENT OF FINANCIAL POSITION Net (liability)/asset at beginning of year (18.9) (22.8) Transfer to liability held for sale 2.0 - Defined benefit cost included in the income statement (2.2) (2.6) Net interest expense (0.2) (0.2) Total remeasurements included in OCI 6.5 4.6 Employer contributions 1.6 1.9 Effect of changes in foreign exchange rates - 0.3 Net (liability)/asset at end of year (11.1) (18.9) Unfunded versus Funded Part of DBO from plans that are wholly unfunded (11.1) (18.9)7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11.", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__298": { "value": "7.5.5. Price risk (commodity) The Group has some exposure to the price of oil because certain of the raw materials used in production are manufactured from oil derivatives. These include glues, polyethylene, propylene and polypropylene. In relation to our fluff exposure, the Group has arrangements with certain of their fluff suppliers that reduce our exposure to volatility in fluff prices. The Group also decided to continue to hedge a portion of the propylene, polypropylene and polyethylene exposure in 2022. Forward contracts to cover the commodity price risk are being reviewed and potentially executed monthly. Forward contracts are initiated over a future period of 12 months covering monthly expected exposure. The total notional amount hedged in 2022 was \u20ac36.6 million covering propylene (\u20ac15.7 million), polypropylene (\u20ac14.5 million) and LDPE (\u20ac6.4 million). The average hedged rate for 2022 was \u20ac1,154/Ton for propylene, \u20ac2,085/Ton for polypropylene and \u20ac2,232/Ton for LDPE. The OCI net impact for 2022 was a \u20ac2.3 million loss. \u20ac2.3 million was reclassified to P&L (gain) during 2022.", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__302-1": { "value": "7.5.7. Credit risk Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to corporate customers, including outstanding receivables and committed transactions. The Group assesses the credit quality of the customer, taking into account its financial position, past experience and other factors based on which individual risk limits are set in accordance with the limits set by business managers. Historical default rates have been below 1% for 2022 and 2021. Trade receivables are spread over different countries and counterparties and there is no large concentration with one or a few counterparties. We refer to note 7.13 for the aging of the receivables and the doubtful receivables. All financial instruments are held at banks and financial institutions with a credit rating of at least A. The maximum exposure to credit risk at the reporting date is the carrying amount as presented in the table above in the note 7.5.1. The Group doesn\u2019t apply systematically external credit rating. The carrying amount of the Group\u2019s trade receivables (net) are denominated in the following currencies: in \u20ac million December 31, 2022 December 31, 2021 EUR 71.8 70.6 PLN 34.5 35.0 USD 29.3 32.9 GBP 26.9 19.2 RUB 16.5 13.4 BRL - 33.1 MXN - 27.2 DZD - 10.1 TRY - 9.2 Other 12.8 18.9 Total 191.8 269.8 During the year, the payment terms for the receivables have neither deteriorated nor been renegotiated that affect the overall payment terms. The maximum credit risk exposure at the end of the reporting period is the carrying value of each caption of receivables mentioned above. The Group does not hold any collateral as security. An impairment analysis of trade receivables is done based on expected losses, next to individual assessments, but there are no significant impairments. Movements on the Group allowance for impairment of trade receivables are as follows: in \u20ac million December 31, 2022 December 31, 2021 Opening Balance 8.6 8.2 Allowance for receivable impairment 0.3 1.3 Receivables written off during the year as uncollectible (0.3) (0.1) Unused amounts reversed (0.1) (0.9) Foreign exchange differences 0.1 0.1 Reclassified as held for sale (4.4) - At December 31 4.1 8.6 The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The creation and the release of the allowance for impaired receivables have been included in \u2018Sales and marketing expense\u2019 in the income statement.The credit quality of the banks and financial institutions the Group is working with is mentioned in the following table: in \u20ac million December 31, 2022 December 31, 2021 AA 1.6 1.7 A 142.8 209.5 BBB 1.1 5.3 BB 1.4 17.9 B - 7.5 No credit rating 2.2 4.8 Total 149.1 246.7 .", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__312-1": { "value": "7.5.8. Liquidity risk Group treasury monitors rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities (note 7.17 Interest-bearing debts) at all times so that the Group does not breach borrowing limits or covenants (where applicable) on its borrowing facilities. The table below analyzes the Group\u2019s financial liabilities (including interest payments) into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Less than Between 1 Between 2 Over 5 years in \u20ac million 1 year and 2 years and 5 years At December 31, 2022 Interest-bearing debts (34.0) (361.6) (611.0) - Lease liabilities (24.0) (20.3) (38.7) (60.2) Trade payables (405.3) - - - Total non-derivative financial liabilities (463.3) (381.9) (649.7) (60.2) Interest rate swaps (0.9) (0.9) - - Forward foreign exchange contracts (531.8) (12.0) - - Total derivative financial liabilities (532.7) (12.9) - - At December 31, 2021 Interest-bearing debts (28.5) (31.2) (857.0) (0.0) Lease liabilities (26.0) (22.1) (42.2) (40.4) Trade payables (532.6) - - - Total non-derivative financial liabilities (587.2) (53.3) (899.1) (40.4) Interest rate swaps (0.9) (0.9) (0.9) - Forward foreign exchange contracts (267.4) (11.3) - - Total derivative financial liabilities (268.3) (12.2) (0.9) - .7.17. INTEREST-BEARING DEBTS in \u20ac million December 31, 2022 December 31, 2021 Non-current Borrowings: 791.4 793.1 Senior Notes 573.8 572.1 Syndicated Term Loan A > 1 year 217.3 216.3 Other borrowings 0.2 4.6 Lease and other liabilities 100.4 92.1 Lease liabilities 100.4 92.1 Interest-bearing debts non-current 891.7 885.2 Current Borrowings: 125.4 56.4 Senior revolving Facility B 115.0 - Other borrowings - 14.8 Interests: Other borrowings 10.4 10.4 Total return swap - 31.2 Lease and other liabilities 20.0 30.6 Lease liabilities 20.0 21.5 Other financial liabilities (0.0) 9.1 Interest-bearing debts current 145.4 87.0 Total interest-bearing debts 1,037.1 972.2The following table reconciles the movements of the financial liabilities to the cash flows arising from financing activities: December 31, 2022 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 793.1 (0.4) - (0.8) (1.1) 2.6 793.4 (2.0) Lease and other liabilities 92.1 (25.0) 44.8 4.3 (1.6) 0.6 115.2 (14.8) Current interest-bearing debts - Borrowings 56.4 75.9 - 0.7 1.1 - 134.1 (8.7) Lease and other liabilities 30.6 1.0 - 0.2 1.6 0.0 33.5 (13.5) Total liabilities from financing activities 972.2 51.5 44.8 4.4 0.0 3.2 1,076.1 (39.0) Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 133.2 Repayment of borrowings (81.7) December 31, 2021 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 800.4 33.9 - (0.1) (48.2) 7.1 793.1 - Lease and other liabilities 111.0 (22.7) 7.2 1.3 0.2 (4.9) 92.1 - Current interest-bearing debts Borrowings 341.1 (341.9) - 0.2 48.2 8.8 56.4 - Lease and other liabilities 25.2 5.4 - 0.2 (0.2) - 30.6 - Total liabilities from financing activities 1,277.7 (325.3) 7.2 1.7 0.0 10.9 972.2 - Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 799.3 Repayment of borrowings (1,124.7)7.20. CURRENT AND NON-CURRENT LIABILITIES Other current liabilities (excluding provisions, income tax liabilities, financial liabilities and liabilities directly associated with non-current assets intended for sale) can be presented as follows: in \u20ac million December 31, 2022 December 31, 2021 Accrued expenses and other payables 22.6 39.0 Current accrued expenses and other payables 22.6 39.0 Trade payables 405.3 532.6 Employee benefit liabilities 40.4 46.2 Total current liabilities 468.3 617.8", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__311-1": { "value": "7.5.8. Liquidity risk Group treasury monitors rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities (note 7.17 Interest-bearing debts) at all times so that the Group does not breach borrowing limits or covenants (where applicable) on its borrowing facilities. The table below analyzes the Group\u2019s financial liabilities (including interest payments) into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Less than Between 1 Between 2 Over 5 years in \u20ac million 1 year and 2 years and 5 years At December 31, 2022 Interest-bearing debts (34.0) (361.6) (611.0) - Lease liabilities (24.0) (20.3) (38.7) (60.2) Trade payables (405.3) - - - Total non-derivative financial liabilities (463.3) (381.9) (649.7) (60.2) Interest rate swaps (0.9) (0.9) - - Forward foreign exchange contracts (531.8) (12.0) - - Total derivative financial liabilities (532.7) (12.9) - - At December 31, 2021 Interest-bearing debts (28.5) (31.2) (857.0) (0.0) Lease liabilities (26.0) (22.1) (42.2) (40.4) Trade payables (532.6) - - - Total non-derivative financial liabilities (587.2) (53.3) (899.1) (40.4) Interest rate swaps (0.9) (0.9) (0.9) - Forward foreign exchange contracts (267.4) (11.3) - - Total derivative financial liabilities (268.3) (12.2) (0.9) - .7.17. INTEREST-BEARING DEBTS in \u20ac million December 31, 2022 December 31, 2021 Non-current Borrowings: 791.4 793.1 Senior Notes 573.8 572.1 Syndicated Term Loan A > 1 year 217.3 216.3 Other borrowings 0.2 4.6 Lease and other liabilities 100.4 92.1 Lease liabilities 100.4 92.1 Interest-bearing debts non-current 891.7 885.2 Current Borrowings: 125.4 56.4 Senior revolving Facility B 115.0 - Other borrowings - 14.8 Interests: Other borrowings 10.4 10.4 Total return swap - 31.2 Lease and other liabilities 20.0 30.6 Lease liabilities 20.0 21.5 Other financial liabilities (0.0) 9.1 Interest-bearing debts current 145.4 87.0 Total interest-bearing debts 1,037.1 972.2The following table reconciles the movements of the financial liabilities to the cash flows arising from financing activities: December 31, 2022 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 793.1 (0.4) - (0.8) (1.1) 2.6 793.4 (2.0) Lease and other liabilities 92.1 (25.0) 44.8 4.3 (1.6) 0.6 115.2 (14.8) Current interest-bearing debts - Borrowings 56.4 75.9 - 0.7 1.1 - 134.1 (8.7) Lease and other liabilities 30.6 1.0 - 0.2 1.6 0.0 33.5 (13.5) Total liabilities from financing activities 972.2 51.5 44.8 4.4 0.0 3.2 1,076.1 (39.0) Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 133.2 Repayment of borrowings (81.7) December 31, 2021 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 800.4 33.9 - (0.1) (48.2) 7.1 793.1 - Lease and other liabilities 111.0 (22.7) 7.2 1.3 0.2 (4.9) 92.1 - Current interest-bearing debts Borrowings 341.1 (341.9) - 0.2 48.2 8.8 56.4 - Lease and other liabilities 25.2 5.4 - 0.2 (0.2) - 30.6 - Total liabilities from financing activities 1,277.7 (325.3) 7.2 1.7 0.0 10.9 972.2 - Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 799.3 Repayment of borrowings (1,124.7)7.20. CURRENT AND NON-CURRENT LIABILITIES Other current liabilities (excluding provisions, income tax liabilities, financial liabilities and liabilities directly associated with non-current assets intended for sale) can be presented as follows: in \u20ac million December 31, 2022 December 31, 2021 Accrued expenses and other payables 22.6 39.0 Current accrued expenses and other payables 22.6 39.0 Trade payables 405.3 532.6 Employee benefit liabilities 40.4 46.2 Total current liabilities 468.3 617.8", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__307-1": { "value": "7.5.8. Liquidity risk Group treasury monitors rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities (note 7.17 Interest-bearing debts) at all times so that the Group does not breach borrowing limits or covenants (where applicable) on its borrowing facilities. The table below analyzes the Group\u2019s financial liabilities (including interest payments) into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Less than Between 1 Between 2 Over 5 years in \u20ac million 1 year and 2 years and 5 years At December 31, 2022 Interest-bearing debts (34.0) (361.6) (611.0) - Lease liabilities (24.0) (20.3) (38.7) (60.2) Trade payables (405.3) - - - Total non-derivative financial liabilities (463.3) (381.9) (649.7) (60.2) Interest rate swaps (0.9) (0.9) - - Forward foreign exchange contracts (531.8) (12.0) - - Total derivative financial liabilities (532.7) (12.9) - - At December 31, 2021 Interest-bearing debts (28.5) (31.2) (857.0) (0.0) Lease liabilities (26.0) (22.1) (42.2) (40.4) Trade payables (532.6) - - - Total non-derivative financial liabilities (587.2) (53.3) (899.1) (40.4) Interest rate swaps (0.9) (0.9) (0.9) - Forward foreign exchange contracts (267.4) (11.3) - - Total derivative financial liabilities (268.3) (12.2) (0.9) - .7.17. INTEREST-BEARING DEBTS in \u20ac million December 31, 2022 December 31, 2021 Non-current Borrowings: 791.4 793.1 Senior Notes 573.8 572.1 Syndicated Term Loan A > 1 year 217.3 216.3 Other borrowings 0.2 4.6 Lease and other liabilities 100.4 92.1 Lease liabilities 100.4 92.1 Interest-bearing debts non-current 891.7 885.2 Current Borrowings: 125.4 56.4 Senior revolving Facility B 115.0 - Other borrowings - 14.8 Interests: Other borrowings 10.4 10.4 Total return swap - 31.2 Lease and other liabilities 20.0 30.6 Lease liabilities 20.0 21.5 Other financial liabilities (0.0) 9.1 Interest-bearing debts current 145.4 87.0 Total interest-bearing debts 1,037.1 972.2The following table reconciles the movements of the financial liabilities to the cash flows arising from financing activities: December 31, 2022 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 793.1 (0.4) - (0.8) (1.1) 2.6 793.4 (2.0) Lease and other liabilities 92.1 (25.0) 44.8 4.3 (1.6) 0.6 115.2 (14.8) Current interest-bearing debts - Borrowings 56.4 75.9 - 0.7 1.1 - 134.1 (8.7) Lease and other liabilities 30.6 1.0 - 0.2 1.6 0.0 33.5 (13.5) Total liabilities from financing activities 972.2 51.5 44.8 4.4 0.0 3.2 1,076.1 (39.0) Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 133.2 Repayment of borrowings (81.7) December 31, 2021 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 800.4 33.9 - (0.1) (48.2) 7.1 793.1 - Lease and other liabilities 111.0 (22.7) 7.2 1.3 0.2 (4.9) 92.1 - Current interest-bearing debts Borrowings 341.1 (341.9) - 0.2 48.2 8.8 56.4 - Lease and other liabilities 25.2 5.4 - 0.2 (0.2) - 30.6 - Total liabilities from financing activities 1,277.7 (325.3) 7.2 1.7 0.0 10.9 972.2 - Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 799.3 Repayment of borrowings (1,124.7)7.20. CURRENT AND NON-CURRENT LIABILITIES Other current liabilities (excluding provisions, income tax liabilities, financial liabilities and liabilities directly associated with non-current assets intended for sale) can be presented as follows: in \u20ac million December 31, 2022 December 31, 2021 Accrued expenses and other payables 22.6 39.0 Current accrued expenses and other payables 22.6 39.0 Trade payables 405.3 532.6 Employee benefit liabilities 40.4 46.2 Total current liabilities 468.3 617.8", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__305": { "value": "7.5.8. Liquidity risk Group treasury monitors rolling forecasts of the Group\u2019s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities (note 7.17 Interest-bearing debts) at all times so that the Group does not breach borrowing limits or covenants (where applicable) on its borrowing facilities. The table below analyzes the Group\u2019s financial liabilities (including interest payments) into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. Less than Between 1 Between 2 Over 5 years in \u20ac million 1 year and 2 years and 5 years At December 31, 2022 Interest-bearing debts (34.0) (361.6) (611.0) - Lease liabilities (24.0) (20.3) (38.7) (60.2) Trade payables (405.3) - - - Total non-derivative financial liabilities (463.3) (381.9) (649.7) (60.2) Interest rate swaps (0.9) (0.9) - - Forward foreign exchange contracts (531.8) (12.0) - - Total derivative financial liabilities (532.7) (12.9) - - At December 31, 2021 Interest-bearing debts (28.5) (31.2) (857.0) (0.0) Lease liabilities (26.0) (22.1) (42.2) (40.4) Trade payables (532.6) - - - Total non-derivative financial liabilities (587.2) (53.3) (899.1) (40.4) Interest rate swaps (0.9) (0.9) (0.9) - Forward foreign exchange contracts (267.4) (11.3) - - Total derivative financial liabilities (268.3) (12.2) (0.9) - .", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__331-1": { "value": "7.7. LIST OF CONSOLIDATED COMPANIES Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number Haouch Sbaat Nord, Zone Industrielle de Rouiba, Voie H, Can Hygi\u00e8ne SPA Algeria 100.0% 100.0% 04/B/0965101 lot 83B, 16012 Rouiba, Alger, Algeria Suite 10, 27 Mayneview Street, Milton, QLD 4064, Ontex Australia Pty Ltd Australia 100.0% 100.0% ABN 59 130 076 283 Australia Ontex Manufacturing Pty Ltd Australia 100.0% 100.0% Wonderland Drive 5, Eastern Creek, NSW, 2766, Australia ABN 16 145 822 528 Eutima BV Belgium 100.0% 100.0% Korte Moeie 53, 9900 Eeklo, Belgium 0415.412.891 1)Ontema BV Belgium 0.0% 100.0% Genthof 12, 9255 Buggenhout, Belgium 0453.081.852 Ontex BV Belgium 100.0% 100.0% Genthof 5, 9255 Buggenhout, Belgium 0419.457.296 Rua Contorno Oeste 1/16 Quadra 01, Lote 01/16, Modulo Active Industria De Cosm\u00e9ticos S.A. Brazil 100.0% 100.0% CNPJ 22.010816/0001-39 2 Senador Canedo, Goiania, Brazil Rua Iza Costa 1.104 Quadra: Area Lote Modulo 2, Falcon Distribuidora Armazenamento E Transporte S.A. Brazil 100.0% 100.0% CNPJ 23.191.831/0001-93 Fazenda Retio, Goiania, Brazil Calle la Concepcion 81, D 603 P 06, Providencia, Chicolastic Chile, S.A. Chile 100.0% 100.0% Santiag\u00e0, Region Metropolitan,8320000 Santiago de 96886530-7 Chile, Chile Hangji industrial park, Hanjiang Dictrict, N\u00b01 Zhaizhuang Ontex Hygienic Disposables (Yangzhou) Co.TD China 100.0% 100.0% 321000400010102 Road, 225111 Yangzhou, China 4F, Building G, No. 69, Hongqiao Green Valley Ontex Hygienic Disposables (Shanghai) LTD China 100.0% 100.0% 91310000MA1GCW6L6Y Community, Yuhong Road, Minhang District, Shanghai 100 norte del Centro Comercial Tres Rios a mano 1)Valor Brands de Centroam\u00e9rcia, S.A. de C.V. Costa Rica 0.0% 100.0% izquierda-Apartamento Tinoco #02, City Cartago, 10106 3-101-645685 San Jos\u00e9, Costa Rica Czech Ontex CZ S.r.o. 100.0% 100.0% Vesecko 491, 51101 Turnov, Czech Republic 44564422 Republic Tracon Tower Building Addis Ababa, Subcity Arada, Ontex Hygienic Disposables PLC Ethiopia 100.0% 100.0% EIA-PC/01/005318/08 Werada 02, Kebele 01, House n\u00b0 : 30/97, Ethiopia 30 Rue Hubble Parc Europ\u00e9en de la Haute Borne, 59262 Hygi\u00e8ne Medica SAS France 100.0% 100.0% 401 439 872 Sainghin-en-M\u00e9lantois, France 586 Boulevard Albert Camus, 69400 Villefranche-sur-Ontex France SAS France 100.0% 100.0% 338 081 102 Sa\u00f4ne, France Ontex Sant\u00e9 France SAS France 100.0% 100.0% Quai du rivage 62119 Dourges, France 502 601 297 Moltex Baby-Hygiene GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 5260 Ontex Engineering GmbH & Co .KG Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRA 21335 Ontex Healthcare Deutschland GmbH Germany 100.0% 100.0% Hansaring 6, Lotte 49504, Germany HRB 9669 Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number Ontex Hygi\u00ebnartikel Deutschland GmbH Germany 100.0% 100.0% Fabrikstrasse 30, 02692 Grosspostwitz, Germany HRB 3865 Ontex Inko Deutschland GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 20630 Ontex Care GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 21024 Ontex Mayen GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 11699 Ontex Vertrieb GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 4983 WS Windel-Shop GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 2793 Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Ontex Manufacturing Italy S.r.l. Italy 100.0% 100.0% 02456370697 Italy Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Serenity Holdco S.r.l. Italy 100.0% 100.0% CH-178769 Italy Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Serenity Spa Italy 100.0% 100.0% CH-99632 Italy Ibsen N40 4to piso, col. Polanco Delegacion Miguel Grupe P.I Mabe, S.A de C.V Mexico 100.0% 100.0% GPI950824N64 Hidalgo CP 11560 Mexico Calle Norte 12, Ciudad Industrial 105,22505 Tijuana, Productos Internacionales Mabe, S.A de C.V Mexico 100.0% 100.0% PIM810710R32 Mexico 2)Ontex Mexico Operations S.A. de C.V. Mexico 100.0% 0.0% Calle 12 Norte No. 105, Ciudad Industrial, Tijuana, Mexico OMO220624KA3 1)Quartier Al Hank Boulevard De La Corniche, 6i\u00e8me \u00e9tage, Ontex Hygi\u00e8ne Sarlau Morocco 0.0% 100.0% 240709 immeuble Yacht A/B Anfa - Casablanca, Morocco Office No 705, 7th Floor, Park Avenue, Main Sharh-e-Ontex Pakistan ltd Pakistan 100.0% 100.0% 0076658 Faisal, Karachi Sindh 7400, Pakistan Ontex Polska sp. z.o.o. Poland 100.0% 100.0% ul. Przedsiebiorcrow 6, 97-500 Radomsko, Poland 0000010044 Bucharest, 46 Grigore Cobalcescu Street, 2nd floor, 1st Ontex Romania Srl Romania 100.0% 100.0% R 7682053 District, Romania Ontex RU LLC Russia 100.0% 100.0% Zemlyanoy Val Street 9, 10564 Moscow, Russia 1055008702649 Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex ES Holdco S.L. Spain 100.0% 100.0% B85082832 sector C, 40140 Valverde del Majano, Segovia, Spain Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex ID SAU Spain 100.0% 100.0% NIFA-60617875 sector C, 40140 Valverde del Majano, Segovia, Spain Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex Peninsular SAU Spain 100.0% 100.0% A40103855 sector C, 40140 Valverde del Majano, Segovia, Spain Valor Brands Europe, S.L Spain 100.0% 100.0% Torviscal 12, 45007 Toledo, Spain B2837-1540 Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex Hygienic Spain, S.L. Spain 100.0% 100.0% M635-328 sector C, 40140 Valverde del Majano, Segovia, Spain Tekstilkent Cad. Koza Plaza B Blok Kat:31 No:116-117 Ontex T\u00fcketim. Urn. San. ve Tic. AS Turkey 100.0% 100.0% 137334 Esenler, Istanbul Building 7(C), 13 M. Pymonenko Street, 04050 Kyiv, Ontex Ukraine LLC Ukraine 100.0% 100.0% 37728333 Ukraine, Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number United Kettering Parkway, Kettering Venture Park, Kettering, Ontex Health Care UK Ltd 100.0% 100.0% 02274216 Kingdom Northants, NN156XR, United Kingdom Unit 5 (1st Floor), Grovelands Business Centre, Boundary United Ontex Retail UK Ltd 100.0% 100.0% Way, Hemel Hempstead, Hertfordshire, HP2 7TE, United 1613466 Kingdom Kingdom 1201 North Market Street, 19801 Wilmington, New Castle Ontex US Holdco, LLC USA 100.0% 100.0% 35-2548297 county, Delaware, United States of America 960 North Point Parkway, Suite 100, Alpharetta, GA Valor Brands, LLC USA 100.0% 100.0% 06-1661367 30005, USA Ontex Operations USA, LCC USA 100.0% 100.0% 1900 Barnes Street, Reidsville, NC 27320 85-0811594 1) Ontema BV, Valor Brands de centroam\u00e9rica, S.A de C.V. and Ontex Hygi\u00e8ne Sarlau have been liquidated in the course of 2022. 2) Ontex Mexico Operations S.A. de C.V. was founded in the course of 2022. The voting rights equal the percentage of interest held. The most significant Group subsidiaries are Ontex BV, Ontex Mayen GmbH, Ontex Hygi\u00ebnartikel Deutschland GmbH, Ontex Sant\u00e9 France SAS, Ontex CZ Sro, Serenity Spa, Ontex Manufacturing Italy S.r.l. and Valor Brands LLC. For the financial year ending December 31, 2022 the following companies make use of the exemptions in accordance with the German regulations of \u00a7 264 III and \u00a7 264b HGB \u2022 Ontex Vertrieb GmbH, Mayen; \u2022 Ontex Mayen GmbH, Mayen; \u2022 Moltex Baby-Hygiene GmbH, Mayen; \u2022 WS Windel-Shop, Mayen; \u2022 Ontex Healthcare Deutschland GmbH, Lotte; \u2022 Ontex Hygieneartikel Deutschland GmbH, Gro\u00dfpostwitz; and \u2022 Ontex Engineering GmbH & Co. KG, Mayen.7.31. RELATED PARTY TRANSACTIONS As part of our business, Ontex has entered into several transactions with related parties. 7.31.1. Consolidated companies A list of subsidiaries is given in note 7.7 \u2018List of consolidated companies\u2019. 7.31.2. Relations with the shareholders There are no transactions with shareholders per December 31, 2022 (nor in 2021). 7.31.3. Relations with non-executive members of the Board of Directors Full Year in \u20ac million 2022 2021 Remuneration 1.6 1.4 7.31.4. Relations with the key management personnel Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Group. Key management for the Group are all the members of Management Committee. 7.31.5. Key management compensation Remuneration of the CEO Full Year in \u20ac million 2022 2021 Fixed and variable remuneration 2.0 1.6 Remuneration of the Executive Team (excluding the CEO) Full Year in \u20ac million 2022 2021 Fixed remuneration 3.0 4.5 Variable remuneration 1.3 1.5 Other remuneration 0.6 0.6 Total 4.9 6.6 The other remuneration relates mainly to post-employment benefit plans. For a more detailed breakdown, see the Remuneration report. The Company implemented Long-Term Incentive Plans (\u2018LTIP\u2019), which are based on a combination of stock options, restricted stock units and performance stock units (see note 7.28). The number of stock options, restricted stock units and performance stock units granted to the CEO and the Executive Management Team is summarized below: For the year ended December 31, 2022 Number of RSU's Number of PSU's Number of Stock Options LTIP 2018 CEO 14,921 - 75,114 Executive Team (excluding CEO) 47,478 - 239,016 LTIP 2019 CEO 18,414 18,414 64,610 Executive Team (excluding CEO) 53,376 53,376 171,928 LTIP 2020 CEO 19,891 19,891 88,333 Executive Team (excluding CEO) 56,265 56,265 249,870 LTIP 2021 CEO - 94,954 - Executive Team (excluding CEO) - 229,572 - LTIP 2022 CEO - 149,891 - Executive Team (excluding CEO) - 213,070 -", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__330": { "value": "7.7. LIST OF CONSOLIDATED COMPANIES Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number Haouch Sbaat Nord, Zone Industrielle de Rouiba, Voie H, Can Hygi\u00e8ne SPA Algeria 100.0% 100.0% 04/B/0965101 lot 83B, 16012 Rouiba, Alger, Algeria Suite 10, 27 Mayneview Street, Milton, QLD 4064, Ontex Australia Pty Ltd Australia 100.0% 100.0% ABN 59 130 076 283 Australia Ontex Manufacturing Pty Ltd Australia 100.0% 100.0% Wonderland Drive 5, Eastern Creek, NSW, 2766, Australia ABN 16 145 822 528 Eutima BV Belgium 100.0% 100.0% Korte Moeie 53, 9900 Eeklo, Belgium 0415.412.891 1)Ontema BV Belgium 0.0% 100.0% Genthof 12, 9255 Buggenhout, Belgium 0453.081.852 Ontex BV Belgium 100.0% 100.0% Genthof 5, 9255 Buggenhout, Belgium 0419.457.296 Rua Contorno Oeste 1/16 Quadra 01, Lote 01/16, Modulo Active Industria De Cosm\u00e9ticos S.A. Brazil 100.0% 100.0% CNPJ 22.010816/0001-39 2 Senador Canedo, Goiania, Brazil Rua Iza Costa 1.104 Quadra: Area Lote Modulo 2, Falcon Distribuidora Armazenamento E Transporte S.A. Brazil 100.0% 100.0% CNPJ 23.191.831/0001-93 Fazenda Retio, Goiania, Brazil Calle la Concepcion 81, D 603 P 06, Providencia, Chicolastic Chile, S.A. Chile 100.0% 100.0% Santiag\u00e0, Region Metropolitan,8320000 Santiago de 96886530-7 Chile, Chile Hangji industrial park, Hanjiang Dictrict, N\u00b01 Zhaizhuang Ontex Hygienic Disposables (Yangzhou) Co.TD China 100.0% 100.0% 321000400010102 Road, 225111 Yangzhou, China 4F, Building G, No. 69, Hongqiao Green Valley Ontex Hygienic Disposables (Shanghai) LTD China 100.0% 100.0% 91310000MA1GCW6L6Y Community, Yuhong Road, Minhang District, Shanghai 100 norte del Centro Comercial Tres Rios a mano 1)Valor Brands de Centroam\u00e9rcia, S.A. de C.V. Costa Rica 0.0% 100.0% izquierda-Apartamento Tinoco #02, City Cartago, 10106 3-101-645685 San Jos\u00e9, Costa Rica Czech Ontex CZ S.r.o. 100.0% 100.0% Vesecko 491, 51101 Turnov, Czech Republic 44564422 Republic Tracon Tower Building Addis Ababa, Subcity Arada, Ontex Hygienic Disposables PLC Ethiopia 100.0% 100.0% EIA-PC/01/005318/08 Werada 02, Kebele 01, House n\u00b0 : 30/97, Ethiopia 30 Rue Hubble Parc Europ\u00e9en de la Haute Borne, 59262 Hygi\u00e8ne Medica SAS France 100.0% 100.0% 401 439 872 Sainghin-en-M\u00e9lantois, France 586 Boulevard Albert Camus, 69400 Villefranche-sur-Ontex France SAS France 100.0% 100.0% 338 081 102 Sa\u00f4ne, France Ontex Sant\u00e9 France SAS France 100.0% 100.0% Quai du rivage 62119 Dourges, France 502 601 297 Moltex Baby-Hygiene GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 5260 Ontex Engineering GmbH & Co .KG Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRA 21335 Ontex Healthcare Deutschland GmbH Germany 100.0% 100.0% Hansaring 6, Lotte 49504, Germany HRB 9669 Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number Ontex Hygi\u00ebnartikel Deutschland GmbH Germany 100.0% 100.0% Fabrikstrasse 30, 02692 Grosspostwitz, Germany HRB 3865 Ontex Inko Deutschland GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 20630 Ontex Care GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 21024 Ontex Mayen GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 11699 Ontex Vertrieb GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 4983 WS Windel-Shop GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 2793 Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Ontex Manufacturing Italy S.r.l. Italy 100.0% 100.0% 02456370697 Italy Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Serenity Holdco S.r.l. Italy 100.0% 100.0% CH-178769 Italy Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Serenity Spa Italy 100.0% 100.0% CH-99632 Italy Ibsen N40 4to piso, col. Polanco Delegacion Miguel Grupe P.I Mabe, S.A de C.V Mexico 100.0% 100.0% GPI950824N64 Hidalgo CP 11560 Mexico Calle Norte 12, Ciudad Industrial 105,22505 Tijuana, Productos Internacionales Mabe, S.A de C.V Mexico 100.0% 100.0% PIM810710R32 Mexico 2)Ontex Mexico Operations S.A. de C.V. Mexico 100.0% 0.0% Calle 12 Norte No. 105, Ciudad Industrial, Tijuana, Mexico OMO220624KA3 1)Quartier Al Hank Boulevard De La Corniche, 6i\u00e8me \u00e9tage, Ontex Hygi\u00e8ne Sarlau Morocco 0.0% 100.0% 240709 immeuble Yacht A/B Anfa - Casablanca, Morocco Office No 705, 7th Floor, Park Avenue, Main Sharh-e-Ontex Pakistan ltd Pakistan 100.0% 100.0% 0076658 Faisal, Karachi Sindh 7400, Pakistan Ontex Polska sp. z.o.o. Poland 100.0% 100.0% ul. Przedsiebiorcrow 6, 97-500 Radomsko, Poland 0000010044 Bucharest, 46 Grigore Cobalcescu Street, 2nd floor, 1st Ontex Romania Srl Romania 100.0% 100.0% R 7682053 District, Romania Ontex RU LLC Russia 100.0% 100.0% Zemlyanoy Val Street 9, 10564 Moscow, Russia 1055008702649 Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex ES Holdco S.L. Spain 100.0% 100.0% B85082832 sector C, 40140 Valverde del Majano, Segovia, Spain Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex ID SAU Spain 100.0% 100.0% NIFA-60617875 sector C, 40140 Valverde del Majano, Segovia, Spain Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex Peninsular SAU Spain 100.0% 100.0% A40103855 sector C, 40140 Valverde del Majano, Segovia, Spain Valor Brands Europe, S.L Spain 100.0% 100.0% Torviscal 12, 45007 Toledo, Spain B2837-1540 Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex Hygienic Spain, S.L. Spain 100.0% 100.0% M635-328 sector C, 40140 Valverde del Majano, Segovia, Spain Tekstilkent Cad. Koza Plaza B Blok Kat:31 No:116-117 Ontex T\u00fcketim. Urn. San. ve Tic. AS Turkey 100.0% 100.0% 137334 Esenler, Istanbul Building 7(C), 13 M. Pymonenko Street, 04050 Kyiv, Ontex Ukraine LLC Ukraine 100.0% 100.0% 37728333 Ukraine, Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number United Kettering Parkway, Kettering Venture Park, Kettering, Ontex Health Care UK Ltd 100.0% 100.0% 02274216 Kingdom Northants, NN156XR, United Kingdom Unit 5 (1st Floor), Grovelands Business Centre, Boundary United Ontex Retail UK Ltd 100.0% 100.0% Way, Hemel Hempstead, Hertfordshire, HP2 7TE, United 1613466 Kingdom Kingdom 1201 North Market Street, 19801 Wilmington, New Castle Ontex US Holdco, LLC USA 100.0% 100.0% 35-2548297 county, Delaware, United States of America 960 North Point Parkway, Suite 100, Alpharetta, GA Valor Brands, LLC USA 100.0% 100.0% 06-1661367 30005, USA Ontex Operations USA, LCC USA 100.0% 100.0% 1900 Barnes Street, Reidsville, NC 27320 85-0811594 1) Ontema BV, Valor Brands de centroam\u00e9rica, S.A de C.V. and Ontex Hygi\u00e8ne Sarlau have been liquidated in the course of 2022. 2) Ontex Mexico Operations S.A. de C.V. was founded in the course of 2022. The voting rights equal the percentage of interest held. The most significant Group subsidiaries are Ontex BV, Ontex Mayen GmbH, Ontex Hygi\u00ebnartikel Deutschland GmbH, Ontex Sant\u00e9 France SAS, Ontex CZ Sro, Serenity Spa, Ontex Manufacturing Italy S.r.l. and Valor Brands LLC. For the financial year ending December 31, 2022 the following companies make use of the exemptions in accordance with the German regulations of \u00a7 264 III and \u00a7 264b HGB \u2022 Ontex Vertrieb GmbH, Mayen; \u2022 Ontex Mayen GmbH, Mayen; \u2022 Moltex Baby-Hygiene GmbH, Mayen; \u2022 WS Windel-Shop, Mayen; \u2022 Ontex Healthcare Deutschland GmbH, Lotte; \u2022 Ontex Hygieneartikel Deutschland GmbH, Gro\u00dfpostwitz; and \u2022 Ontex Engineering GmbH & Co. KG, Mayen.", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__329": { "value": "7.7. LIST OF CONSOLIDATED COMPANIES Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number Haouch Sbaat Nord, Zone Industrielle de Rouiba, Voie H, Can Hygi\u00e8ne SPA Algeria 100.0% 100.0% 04/B/0965101 lot 83B, 16012 Rouiba, Alger, Algeria Suite 10, 27 Mayneview Street, Milton, QLD 4064, Ontex Australia Pty Ltd Australia 100.0% 100.0% ABN 59 130 076 283 Australia Ontex Manufacturing Pty Ltd Australia 100.0% 100.0% Wonderland Drive 5, Eastern Creek, NSW, 2766, Australia ABN 16 145 822 528 Eutima BV Belgium 100.0% 100.0% Korte Moeie 53, 9900 Eeklo, Belgium 0415.412.891 1)Ontema BV Belgium 0.0% 100.0% Genthof 12, 9255 Buggenhout, Belgium 0453.081.852 Ontex BV Belgium 100.0% 100.0% Genthof 5, 9255 Buggenhout, Belgium 0419.457.296 Rua Contorno Oeste 1/16 Quadra 01, Lote 01/16, Modulo Active Industria De Cosm\u00e9ticos S.A. Brazil 100.0% 100.0% CNPJ 22.010816/0001-39 2 Senador Canedo, Goiania, Brazil Rua Iza Costa 1.104 Quadra: Area Lote Modulo 2, Falcon Distribuidora Armazenamento E Transporte S.A. Brazil 100.0% 100.0% CNPJ 23.191.831/0001-93 Fazenda Retio, Goiania, Brazil Calle la Concepcion 81, D 603 P 06, Providencia, Chicolastic Chile, S.A. Chile 100.0% 100.0% Santiag\u00e0, Region Metropolitan,8320000 Santiago de 96886530-7 Chile, Chile Hangji industrial park, Hanjiang Dictrict, N\u00b01 Zhaizhuang Ontex Hygienic Disposables (Yangzhou) Co.TD China 100.0% 100.0% 321000400010102 Road, 225111 Yangzhou, China 4F, Building G, No. 69, Hongqiao Green Valley Ontex Hygienic Disposables (Shanghai) LTD China 100.0% 100.0% 91310000MA1GCW6L6Y Community, Yuhong Road, Minhang District, Shanghai 100 norte del Centro Comercial Tres Rios a mano 1)Valor Brands de Centroam\u00e9rcia, S.A. de C.V. Costa Rica 0.0% 100.0% izquierda-Apartamento Tinoco #02, City Cartago, 10106 3-101-645685 San Jos\u00e9, Costa Rica Czech Ontex CZ S.r.o. 100.0% 100.0% Vesecko 491, 51101 Turnov, Czech Republic 44564422 Republic Tracon Tower Building Addis Ababa, Subcity Arada, Ontex Hygienic Disposables PLC Ethiopia 100.0% 100.0% EIA-PC/01/005318/08 Werada 02, Kebele 01, House n\u00b0 : 30/97, Ethiopia 30 Rue Hubble Parc Europ\u00e9en de la Haute Borne, 59262 Hygi\u00e8ne Medica SAS France 100.0% 100.0% 401 439 872 Sainghin-en-M\u00e9lantois, France 586 Boulevard Albert Camus, 69400 Villefranche-sur-Ontex France SAS France 100.0% 100.0% 338 081 102 Sa\u00f4ne, France Ontex Sant\u00e9 France SAS France 100.0% 100.0% Quai du rivage 62119 Dourges, France 502 601 297 Moltex Baby-Hygiene GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 5260 Ontex Engineering GmbH & Co .KG Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRA 21335 Ontex Healthcare Deutschland GmbH Germany 100.0% 100.0% Hansaring 6, Lotte 49504, Germany HRB 9669 Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number Ontex Hygi\u00ebnartikel Deutschland GmbH Germany 100.0% 100.0% Fabrikstrasse 30, 02692 Grosspostwitz, Germany HRB 3865 Ontex Inko Deutschland GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 20630 Ontex Care GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 21024 Ontex Mayen GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 11699 Ontex Vertrieb GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 4983 WS Windel-Shop GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 2793 Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Ontex Manufacturing Italy S.r.l. Italy 100.0% 100.0% 02456370697 Italy Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Serenity Holdco S.r.l. Italy 100.0% 100.0% CH-178769 Italy Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Serenity Spa Italy 100.0% 100.0% CH-99632 Italy Ibsen N40 4to piso, col. Polanco Delegacion Miguel Grupe P.I Mabe, S.A de C.V Mexico 100.0% 100.0% GPI950824N64 Hidalgo CP 11560 Mexico Calle Norte 12, Ciudad Industrial 105,22505 Tijuana, Productos Internacionales Mabe, S.A de C.V Mexico 100.0% 100.0% PIM810710R32 Mexico 2)Ontex Mexico Operations S.A. de C.V. Mexico 100.0% 0.0% Calle 12 Norte No. 105, Ciudad Industrial, Tijuana, Mexico OMO220624KA3 1)Quartier Al Hank Boulevard De La Corniche, 6i\u00e8me \u00e9tage, Ontex Hygi\u00e8ne Sarlau Morocco 0.0% 100.0% 240709 immeuble Yacht A/B Anfa - Casablanca, Morocco Office No 705, 7th Floor, Park Avenue, Main Sharh-e-Ontex Pakistan ltd Pakistan 100.0% 100.0% 0076658 Faisal, Karachi Sindh 7400, Pakistan Ontex Polska sp. z.o.o. Poland 100.0% 100.0% ul. Przedsiebiorcrow 6, 97-500 Radomsko, Poland 0000010044 Bucharest, 46 Grigore Cobalcescu Street, 2nd floor, 1st Ontex Romania Srl Romania 100.0% 100.0% R 7682053 District, Romania Ontex RU LLC Russia 100.0% 100.0% Zemlyanoy Val Street 9, 10564 Moscow, Russia 1055008702649 Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex ES Holdco S.L. Spain 100.0% 100.0% B85082832 sector C, 40140 Valverde del Majano, Segovia, Spain Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex ID SAU Spain 100.0% 100.0% NIFA-60617875 sector C, 40140 Valverde del Majano, Segovia, Spain Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex Peninsular SAU Spain 100.0% 100.0% A40103855 sector C, 40140 Valverde del Majano, Segovia, Spain Valor Brands Europe, S.L Spain 100.0% 100.0% Torviscal 12, 45007 Toledo, Spain B2837-1540 Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex Hygienic Spain, S.L. Spain 100.0% 100.0% M635-328 sector C, 40140 Valverde del Majano, Segovia, Spain Tekstilkent Cad. Koza Plaza B Blok Kat:31 No:116-117 Ontex T\u00fcketim. Urn. San. ve Tic. AS Turkey 100.0% 100.0% 137334 Esenler, Istanbul Building 7(C), 13 M. Pymonenko Street, 04050 Kyiv, Ontex Ukraine LLC Ukraine 100.0% 100.0% 37728333 Ukraine, Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number United Kettering Parkway, Kettering Venture Park, Kettering, Ontex Health Care UK Ltd 100.0% 100.0% 02274216 Kingdom Northants, NN156XR, United Kingdom Unit 5 (1st Floor), Grovelands Business Centre, Boundary United Ontex Retail UK Ltd 100.0% 100.0% Way, Hemel Hempstead, Hertfordshire, HP2 7TE, United 1613466 Kingdom Kingdom 1201 North Market Street, 19801 Wilmington, New Castle Ontex US Holdco, LLC USA 100.0% 100.0% 35-2548297 county, Delaware, United States of America 960 North Point Parkway, Suite 100, Alpharetta, GA Valor Brands, LLC USA 100.0% 100.0% 06-1661367 30005, USA Ontex Operations USA, LCC USA 100.0% 100.0% 1900 Barnes Street, Reidsville, NC 27320 85-0811594 1) Ontema BV, Valor Brands de centroam\u00e9rica, S.A de C.V. and Ontex Hygi\u00e8ne Sarlau have been liquidated in the course of 2022. 2) Ontex Mexico Operations S.A. de C.V. was founded in the course of 2022. The voting rights equal the percentage of interest held. The most significant Group subsidiaries are Ontex BV, Ontex Mayen GmbH, Ontex Hygi\u00ebnartikel Deutschland GmbH, Ontex Sant\u00e9 France SAS, Ontex CZ Sro, Serenity Spa, Ontex Manufacturing Italy S.r.l. and Valor Brands LLC. For the financial year ending December 31, 2022 the following companies make use of the exemptions in accordance with the German regulations of \u00a7 264 III and \u00a7 264b HGB \u2022 Ontex Vertrieb GmbH, Mayen; \u2022 Ontex Mayen GmbH, Mayen; \u2022 Moltex Baby-Hygiene GmbH, Mayen; \u2022 WS Windel-Shop, Mayen; \u2022 Ontex Healthcare Deutschland GmbH, Lotte; \u2022 Ontex Hygieneartikel Deutschland GmbH, Gro\u00dfpostwitz; and \u2022 Ontex Engineering GmbH & Co. KG, Mayen.", "dimensions": { "concept": "ifrs-full:DisclosureOfCompositionOfGroupExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__328": { "value": "7.7. LIST OF CONSOLIDATED COMPANIES Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number Haouch Sbaat Nord, Zone Industrielle de Rouiba, Voie H, Can Hygi\u00e8ne SPA Algeria 100.0% 100.0% 04/B/0965101 lot 83B, 16012 Rouiba, Alger, Algeria Suite 10, 27 Mayneview Street, Milton, QLD 4064, Ontex Australia Pty Ltd Australia 100.0% 100.0% ABN 59 130 076 283 Australia Ontex Manufacturing Pty Ltd Australia 100.0% 100.0% Wonderland Drive 5, Eastern Creek, NSW, 2766, Australia ABN 16 145 822 528 Eutima BV Belgium 100.0% 100.0% Korte Moeie 53, 9900 Eeklo, Belgium 0415.412.891 1)Ontema BV Belgium 0.0% 100.0% Genthof 12, 9255 Buggenhout, Belgium 0453.081.852 Ontex BV Belgium 100.0% 100.0% Genthof 5, 9255 Buggenhout, Belgium 0419.457.296 Rua Contorno Oeste 1/16 Quadra 01, Lote 01/16, Modulo Active Industria De Cosm\u00e9ticos S.A. Brazil 100.0% 100.0% CNPJ 22.010816/0001-39 2 Senador Canedo, Goiania, Brazil Rua Iza Costa 1.104 Quadra: Area Lote Modulo 2, Falcon Distribuidora Armazenamento E Transporte S.A. Brazil 100.0% 100.0% CNPJ 23.191.831/0001-93 Fazenda Retio, Goiania, Brazil Calle la Concepcion 81, D 603 P 06, Providencia, Chicolastic Chile, S.A. Chile 100.0% 100.0% Santiag\u00e0, Region Metropolitan,8320000 Santiago de 96886530-7 Chile, Chile Hangji industrial park, Hanjiang Dictrict, N\u00b01 Zhaizhuang Ontex Hygienic Disposables (Yangzhou) Co.TD China 100.0% 100.0% 321000400010102 Road, 225111 Yangzhou, China 4F, Building G, No. 69, Hongqiao Green Valley Ontex Hygienic Disposables (Shanghai) LTD China 100.0% 100.0% 91310000MA1GCW6L6Y Community, Yuhong Road, Minhang District, Shanghai 100 norte del Centro Comercial Tres Rios a mano 1)Valor Brands de Centroam\u00e9rcia, S.A. de C.V. Costa Rica 0.0% 100.0% izquierda-Apartamento Tinoco #02, City Cartago, 10106 3-101-645685 San Jos\u00e9, Costa Rica Czech Ontex CZ S.r.o. 100.0% 100.0% Vesecko 491, 51101 Turnov, Czech Republic 44564422 Republic Tracon Tower Building Addis Ababa, Subcity Arada, Ontex Hygienic Disposables PLC Ethiopia 100.0% 100.0% EIA-PC/01/005318/08 Werada 02, Kebele 01, House n\u00b0 : 30/97, Ethiopia 30 Rue Hubble Parc Europ\u00e9en de la Haute Borne, 59262 Hygi\u00e8ne Medica SAS France 100.0% 100.0% 401 439 872 Sainghin-en-M\u00e9lantois, France 586 Boulevard Albert Camus, 69400 Villefranche-sur-Ontex France SAS France 100.0% 100.0% 338 081 102 Sa\u00f4ne, France Ontex Sant\u00e9 France SAS France 100.0% 100.0% Quai du rivage 62119 Dourges, France 502 601 297 Moltex Baby-Hygiene GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 5260 Ontex Engineering GmbH & Co .KG Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRA 21335 Ontex Healthcare Deutschland GmbH Germany 100.0% 100.0% Hansaring 6, Lotte 49504, Germany HRB 9669 Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number Ontex Hygi\u00ebnartikel Deutschland GmbH Germany 100.0% 100.0% Fabrikstrasse 30, 02692 Grosspostwitz, Germany HRB 3865 Ontex Inko Deutschland GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 20630 Ontex Care GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 21024 Ontex Mayen GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 11699 Ontex Vertrieb GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 4983 WS Windel-Shop GmbH Germany 100.0% 100.0% Robert-Bosch-Stra\u00dfe 8, 56727 Mayen, Germany HRB 2793 Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Ontex Manufacturing Italy S.r.l. Italy 100.0% 100.0% 02456370697 Italy Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Serenity Holdco S.r.l. Italy 100.0% 100.0% CH-178769 Italy Localita Cucullo, Zona Industriale, 66026 Ortona (Chieti), Serenity Spa Italy 100.0% 100.0% CH-99632 Italy Ibsen N40 4to piso, col. Polanco Delegacion Miguel Grupe P.I Mabe, S.A de C.V Mexico 100.0% 100.0% GPI950824N64 Hidalgo CP 11560 Mexico Calle Norte 12, Ciudad Industrial 105,22505 Tijuana, Productos Internacionales Mabe, S.A de C.V Mexico 100.0% 100.0% PIM810710R32 Mexico 2)Ontex Mexico Operations S.A. de C.V. Mexico 100.0% 0.0% Calle 12 Norte No. 105, Ciudad Industrial, Tijuana, Mexico OMO220624KA3 1)Quartier Al Hank Boulevard De La Corniche, 6i\u00e8me \u00e9tage, Ontex Hygi\u00e8ne Sarlau Morocco 0.0% 100.0% 240709 immeuble Yacht A/B Anfa - Casablanca, Morocco Office No 705, 7th Floor, Park Avenue, Main Sharh-e-Ontex Pakistan ltd Pakistan 100.0% 100.0% 0076658 Faisal, Karachi Sindh 7400, Pakistan Ontex Polska sp. z.o.o. Poland 100.0% 100.0% ul. Przedsiebiorcrow 6, 97-500 Radomsko, Poland 0000010044 Bucharest, 46 Grigore Cobalcescu Street, 2nd floor, 1st Ontex Romania Srl Romania 100.0% 100.0% R 7682053 District, Romania Ontex RU LLC Russia 100.0% 100.0% Zemlyanoy Val Street 9, 10564 Moscow, Russia 1055008702649 Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex ES Holdco S.L. Spain 100.0% 100.0% B85082832 sector C, 40140 Valverde del Majano, Segovia, Spain Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex ID SAU Spain 100.0% 100.0% NIFA-60617875 sector C, 40140 Valverde del Majano, Segovia, Spain Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex Peninsular SAU Spain 100.0% 100.0% A40103855 sector C, 40140 Valverde del Majano, Segovia, Spain Valor Brands Europe, S.L Spain 100.0% 100.0% Torviscal 12, 45007 Toledo, Spain B2837-1540 Poligono Industrial Nicomedes Garcia, C/Fresno s/n, Ontex Hygienic Spain, S.L. Spain 100.0% 100.0% M635-328 sector C, 40140 Valverde del Majano, Segovia, Spain Tekstilkent Cad. Koza Plaza B Blok Kat:31 No:116-117 Ontex T\u00fcketim. Urn. San. ve Tic. AS Turkey 100.0% 100.0% 137334 Esenler, Istanbul Building 7(C), 13 M. Pymonenko Street, 04050 Kyiv, Ontex Ukraine LLC Ukraine 100.0% 100.0% 37728333 Ukraine, Percentage of interest held by the Group Name Country 2022 2021 Registered office Company legal number United Kettering Parkway, Kettering Venture Park, Kettering, Ontex Health Care UK Ltd 100.0% 100.0% 02274216 Kingdom Northants, NN156XR, United Kingdom Unit 5 (1st Floor), Grovelands Business Centre, Boundary United Ontex Retail UK Ltd 100.0% 100.0% Way, Hemel Hempstead, Hertfordshire, HP2 7TE, United 1613466 Kingdom Kingdom 1201 North Market Street, 19801 Wilmington, New Castle Ontex US Holdco, LLC USA 100.0% 100.0% 35-2548297 county, Delaware, United States of America 960 North Point Parkway, Suite 100, Alpharetta, GA Valor Brands, LLC USA 100.0% 100.0% 06-1661367 30005, USA Ontex Operations USA, LCC USA 100.0% 100.0% 1900 Barnes Street, Reidsville, NC 27320 85-0811594 1) Ontema BV, Valor Brands de centroam\u00e9rica, S.A de C.V. and Ontex Hygi\u00e8ne Sarlau have been liquidated in the course of 2022. 2) Ontex Mexico Operations S.A. de C.V. was founded in the course of 2022. The voting rights equal the percentage of interest held. The most significant Group subsidiaries are Ontex BV, Ontex Mayen GmbH, Ontex Hygi\u00ebnartikel Deutschland GmbH, Ontex Sant\u00e9 France SAS, Ontex CZ Sro, Serenity Spa, Ontex Manufacturing Italy S.r.l. and Valor Brands LLC. For the financial year ending December 31, 2022 the following companies make use of the exemptions in accordance with the German regulations of \u00a7 264 III and \u00a7 264b HGB \u2022 Ontex Vertrieb GmbH, Mayen; \u2022 Ontex Mayen GmbH, Mayen; \u2022 Moltex Baby-Hygiene GmbH, Mayen; \u2022 WS Windel-Shop, Mayen; \u2022 Ontex Healthcare Deutschland GmbH, Lotte; \u2022 Ontex Hygieneartikel Deutschland GmbH, Gro\u00dfpostwitz; and \u2022 Ontex Engineering GmbH & Co. KG, Mayen.", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__73-1": { "value": "7.8. DISPOSAL GROUP HELD FOR SALE AND DISCONTINUED OPERATIONS Following its strategic review announced end of 2021 and formalized beginning of 2022, the Group announced it will pursue divestment opportunities for the activities located in the \u201cEmerging Markets\u201d. \u201cEmerging Markets\u201d are primarily driven by own brands and essentially groups the Central and South American activities, as well as those in the Middle East and Africa. These operations, which are expected to be sold within 12 months, have been classified as a disposal group held for sale and presented separately in the statement of financial position. As a result, discontinued operations are shown as one line item in the consolidated financial statements as detailed below. The discontinued statement of financial position items are presented at lower of the fair value less cost-to-sell and the carrying amount, in accordance with IFRS 5. stThe associated assets and liabilities are consequently presented as held for sale as from January 1, 2022. The related financial performance is thereby reported as discontinued operations in the Income statement. The assets held for sale in the table below amount to \u20ac653.9 million and deviate from the amount in the consolidated statement of financial position as the Group also stholds a building in Germany as held for sale at December 31, 2022. Ontex entered into a binding agreement in July 2022 to sell its Mexican and related export activities to Softys S.A., marking a milestone in the transformation of Ontex. Net cash proceeds are estimated at approximately \u20ac250.0 million. The closing is foreseen early Q2 2023, subject to the customary conditions, including the applicable merger clearance approvals. Proceeds from the transaction will be exclusively applied to reduce debt. Ontex is making progress in the divestment of its remaining Emerging Markets businesses, as discussions with potential acquirers continue. Disposal group classified as held for sale Upon reclassification as held for sale, total impairment losses on goodwill of \u20ac60.0 million have been recognized to present the net assets at the lower of the carrying amount and the fair value less costs of disposal. At December 31, 2022, additional impairment losses on goodwill of \u20ac48.9 million have been recognized based on a comparison of the expected proceeds of disposal less costs to sell versus the carrying amount of the related net assets. \u20ac33.2 million of the impairment is related to the impact of the application of Hyperinflation on the Turkish carrying net assets, which increased with \u20ac29.0 million. The major classes of assets and liabilities comprising the operations classified as held for sale are as follows: December 31, 2022 in \u20ac million Non-current Assets Goodwill 83.8 Intangible assets 17.1 Property, plant and equipment 183.8 Right-of-use assets 16.3 Deferred tax assets 0.4 Other non-current assets 0.5 301.9 Current Assets Inventories 116.1 Trade receivables 115.4 Prepaid expenses and other receivables 53.8 Current tax assets 6.5 Derivative financial assets 0.5 Cash and cash equivalents 59.7 352.0 Assets classified as held for sale 653.9 December 31, 2022 in \u20ac million Non-current liabilities Employee benefit liabilities 3.4 Interest-bearing debts 16.8 Deferred tax liabilities 12.9 33.1 Current liabilities Interest-bearing debts 22.2 Derivative financial liabilities 0.4 Trade payables 154.1 Accrued expenses and other payables 19.6 Employee benefit liabilities 12.5 Current tax liabilities 4.8 Provisions 2.9 216.5 Liabilities related to assets classified as held for sale 249.6 The cumulative foreign exchange losses recognized in other comprehensive income in relation to the discontinued operations as at December 31, 2022 were \u20ac302.4 million. Financial performance The results of the discontinued operations, which have been included in the consolidated income statement, were as follows: Full Year in \u20ac million 2022 2021 Revenue 792.3 617.7 Operating expenses (excl. depreciations and amortizations) (760.6) (601.7) Adjusted EBITDA 31.7 15.9 Income and expenses related to impairment losses and restructuring (122.6) (25.1) EBITDA (90.9) (9.1) Depreciation and amortization - (22.0) Financial result (19.9) (1.1) Profit/(loss) before income tax (110.7) (32.3) Income tax expense (10.9) (10.2) Profit/(loss) for the period from discontinued operations (121.6) (42.4) Full Year Earnings per share (\u20ac) 2022 2021 For discontinuing operations Basic earnings per share (1.50) (0.52) Diluted earnings per share (1.50) (0.52) Cash flows The cash flow information presented for the period ended December 31, 2022 and 2021: Full Year in \u20ac million 2022 2021 Net cash generated from / (used in) operating activities 14.4 81.7 Net cash generated from / (used in) investing activities (13.1) (31.4) Net cash generated from / (used in) financing activities (4.2) (40.6) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (2.9) 9.8 Effects of exchange rate changes on cash and cash equivalents 1.5 (7.8)7.1.11. Non-current assets held for sale and discontinued operations Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit. When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or disposal group) as held for sale. A discontinued operation is a component of the Group which the Group has disposed of or which is classified as held for sale, and which: \u2022 represents a separate major line of business or geographical area of operations; \u2022 is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or \u2022 is a subsidiary acquired exclusively with a view to resale.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__341-1": { "value": "Cash flows The cash flow information presented for the period ended December 31, 2022 and 2021: Full Year in \u20ac million 2022 2021 Net cash generated from / (used in) operating activities 14.4 81.7 Net cash generated from / (used in) investing activities (13.1) (31.4) Net cash generated from / (used in) financing activities (4.2) (40.6) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (2.9) 9.8 Effects of exchange rate changes on cash and cash equivalents 1.5 (7.8)The following table reconciles the movements of the financial liabilities to the cash flows arising from financing activities: December 31, 2022 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 793.1 (0.4) - (0.8) (1.1) 2.6 793.4 (2.0) Lease and other liabilities 92.1 (25.0) 44.8 4.3 (1.6) 0.6 115.2 (14.8) Current interest-bearing debts - Borrowings 56.4 75.9 - 0.7 1.1 - 134.1 (8.7) Lease and other liabilities 30.6 1.0 - 0.2 1.6 0.0 33.5 (13.5) Total liabilities from financing activities 972.2 51.5 44.8 4.4 0.0 3.2 1,076.1 (39.0) Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 133.2 Repayment of borrowings (81.7) December 31, 2021 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 800.4 33.9 - (0.1) (48.2) 7.1 793.1 - Lease and other liabilities 111.0 (22.7) 7.2 1.3 0.2 (4.9) 92.1 - Current interest-bearing debts Borrowings 341.1 (341.9) - 0.2 48.2 8.8 56.4 - Lease and other liabilities 25.2 5.4 - 0.2 (0.2) - 30.6 - Total liabilities from financing activities 1,277.7 (325.3) 7.2 1.7 0.0 10.9 972.2 - Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 799.3 Repayment of borrowings (1,124.7)", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__157-1": { "value": "Capitalized IT implementation costs represent internally developed and externally purchased software for own use. The impairment recognized in 2022 results mainly from the goodwill impairment test carried out on the Russian business, see below for more information. The amortization expense is included in the captions of the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of sales 0.1 0.0 General and administrative expenses 9.1 8.5 Total amortization expense 9.2 8.6 * The amortization expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac2.2 million. The Group incurred \u20ac11.8 million of research and development expenses in 2022 (2021: \u20ac8.7 million) that has been recorded under the caption \u2018General and administrative expenses\u2019.The depreciation expense is included in the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of Sales 34.3 33.0 Distribution expenses 1.3 1.4 Sales and marketing expenses 0.1 0.1 General administrative expenses 2.4 2.4 Other operating income 1.8 1.5 Total depreciation expense 40.0 38.4 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac14.2 million.The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million.The cost of inventories recognized as an expense and included under \u2018Cost of sales\u2019 amounted to \u20ac1,294.7 million in 2022 (\u20ac1,510.4 million in 2021). The amount for 2021 consists of the full group and does not take into account the reclassification to discontinued operations as the statement of financial position figures at December 31, 2021 were not restated.Movements on the Group allowance for impairment of trade receivables are as follows: in \u20ac million December 31, 2022 December 31, 2021 Opening Balance 8.6 8.2 Allowance for receivable impairment 0.3 1.3 Receivables written off during the year as uncollectible (0.3) (0.1) Unused amounts reversed (0.1) (0.9) Foreign exchange differences 0.1 0.1 Reclassified as held for sale (4.4) - At December 31 4.1 8.6 The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The creation and the release of the allowance for impaired receivables have been included in \u2018Sales and marketing expense\u2019 in the income statement.Reconciliation of the post-employment employee benefit liabilities in \u20ac million December 31, 2022 December 31, 2021 RECOGNITION OF THE OBLIGATION Defined benefit obligation (DBO) at end of period (26.2) (33.6) Fair value of plan assets at end of period 15.2 14.7 Funded status (11.1) (18.9) Net (liability)/asset in statement of financial position (11.1) (18.9) Defined benefit cost Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost recognized in Income Statement (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Interest income on plan assets 0.2 0.1 Net interest cost (0.2) (0.2) Pension expense (2.4) (2.8) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF THE OBLIGATION Defined benefit obligation (DBO) at beginning of year (33.6) (36.3) Transfer to liability held for sale 2.4 - Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Participant contributions (0.1) (0.1) Administrative expenses included in the DBO 0.1 0.1 Taxes included in the DBO 0.1 0.2 Benefit payments from plan 0.4 0.2 Benefit payments from employer 0.5 0.5 Effect of changes in financial assumptions 5.4 2.5 Effect of experience adjustments 1.1 2.0 Effect of changes in foreign exchange rates - 0.3 Defined benefit obligation (DBO) at end of year (26.2) (33.6) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF PLAN ASSETS AT FAIR VALUE Fair value of plan assets at beginning of year 14.7 13.5 Transfer to liability held for sale (0.4) - Interest income 0.2 0.1 Employer contribution 1.6 1.9 Plan participants' contributions 0.1 0.1 Benefit payments from plan (0.4) (0.2) Benefit payments from employer (0.5) (0.5) Administrative expenses included in the DBO (0.1) (0.1) Taxes paid from plan assets (0.1) (0.2) Return on plan assets (excluding interest income) 0.0 0.1 Fair value of plan assets at end of year 15.2 14.7 in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF NET (LIABILITY)/ASSET IN STATEMENT OF FINANCIAL POSITION Net (liability)/asset at beginning of year (18.9) (22.8) Transfer to liability held for sale 2.0 - Defined benefit cost included in the income statement (2.2) (2.6) Net interest expense (0.2) (0.2) Total remeasurements included in OCI 6.5 4.6 Employer contributions 1.6 1.9 Effect of changes in foreign exchange rates - 0.3 Net (liability)/asset at end of year (11.1) (18.9) Unfunded versus Funded Part of DBO from plans that are wholly unfunded (11.1) (18.9)7.22. EMPLOYEE BENEFIT EXPENSES Full Year in \u20ac million 2022 2021* Wages and salaries (193.7) (185.8) Social security costs (44.8) (45.7) Defined benefit plans - Service cost (2.2) (2.4) Defined contribution costs (4.1) (4.9) Other employee benefit expenses (40.8) (33.3) Total employee benefit expenses (285.6) (272.2) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac81.1 million. The FTEs listed in the table below only contains the employees part of the continuing operations and therefore deviates significantly from the number of employees included in section 1.2. In Full-Time Equivalents 2022 2021* Average number of total employees 5,351 5,370 Of which: - workers 3,323 3,486 - employees 1,966 1,824 - management 62 59 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of 3.974 average number of total employees. 7.23. OTHER OPERATING INCOME/(EXPENSES), NET Full Year in \u20ac million 2022 2021* Foreign exchange differences on operating activities 8.5 (1.9) Losses on sale of assets (0.6) (0.0) Other income/(expenses) (2.8) (5.0) Total other operating income/(expense), net 5.1 (7.0) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having a negative impact of \u20ac1.4 million. \u201cOther income/(expenses)\u201d consists mainly of depreciation expenses on idle equipment and machinery and pension expenses. 7.24. EBITDA ADJUSTMENTS Full Year in \u20ac million 2022 2021* Business restructuring (10.8) (33.0) Acquisition and disposal of businesses (0.3) (1.1) Refinancing - (0.1) Income and expenses related to changes to Group structure (11.2) (34.2) Impairment of assets (91.0) (23.5) Litigation and legal claims (0.2) (3.2) Other (0.6) 1.2 Income and expenses related to impairments and major litigations (91.8) (25.5) Total EBITDA adjustments (103.0) (59.7) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac25.1 million Items classified under the heading EBITDA adjustments are those items that are considered by management not to relate to items in the ordinary course of activities of the Company. The Group has adopted this classification to allow a better understanding of its recurring financial performance. These items are presented as follows in the consolidated income statement as follows: \u2022 income and expenses related to changes to Group structure; and \u2022 income and expenses related to impairments and major litigations. 7.24.1. Income and expenses related to changes to Group structure Restructuring In 2021, the cost relates to the restructuring expenses in the context of the redistribution/re-allocation of production capabilities and the strategic review of the geographical footprint of the Group. As such, the Company decided to downsize some production capacity which has been announced to the relevant stakeholders and incurred costs for a total amount of \u20ac26.4 million in 2021, of which \u20ac23.8 million was recognized as a restructuring provision during 2021. Costs related to this exercise amounted to \u20ac5.4 million in 2022. The Group announced in the fourth quarter of 2020 an in-depth review of the Group\u2019s overhead cost structure. The costs incurred in 2021 amount to \u20ac7.5 million. The difference with the figures included in the annual report of 2021 is explained by the part related to the Emerging Markets. 7.24.2. Income and expenses related to impairments and major litigations Impairment of assets In 2022, the impairment losses mainly include the impairment of goodwill related to the Russian business (\u20ac84.1 million) and also some impairment losses on idle machinery. In 2021, the impairment losses mainly include the impairment losses on idle machinery. Litigation and claims The Company incurred specific legal fees in the context of certain on-going or potential litigation matters which are expected to result in a potential benefit for the Company or in the avoidance of potential future expenses. 7.25. EXPENSES BY NATURE Expenses by nature represent an alternative disclosure for amounts included in the consolidated income statement. There are classified under \u2018Cost of sales\u2019, \u2018Distribution expenses\u2019, \u2018Sales and marketing expenses\u2019, \u2018General administrative expenses\u2019 and \u2018Other operating income / expense (net)\u2019 in respect of the years ended December 31: Full Year in \u20ac million Note 2022 2021* Changes in inventories 2.8 (2.8) Raw materials and consumables purchased (1,048.1) (777.0) Employee benefit expenses 22 (285.6) (272.2) Depreciation and amortization 9, 10, 11 (70.4) (65.7) Rendered services (223.9) (178.5) Lease expenses 11 (18.5) (15.0) Other income / (expenses) 23 5.1 (7.0) Total cost of sales, distribution expenses, sales and marketing expenses, general administrative expenses and other operating (1,638.6) (1,318.1) income / (expense) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac623.7 million.7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11.7.27. INCOME TAX EXPENSE The income tax (charged)/credited to the income statement during the year is as follows: Full Year in \u20ac million 2022 2021* Current tax (expense) / income (16.3) (12.4) Deferred tax (expense) / income (12.1) 3.5 Total income tax expense (28.4) (8.9) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac9.1 million. The income tax expense can be reconciled as follows: Full Year in \u20ac million 2022 2021* Profit/(loss) before income tax (120.3) (10.6) Income tax expense calculated at domestic tax rates 27.1 2.6 Disallowed expenses (2.6) (4.1) Tax-exempt income 1.0 1.3 Impairment of goodwill (19.3) - Write-off of previously recognized deferred tax assets on losses (12.0) (10.1) Current year tax losses not recognized as deferred tax asset (23.4) (1.4) Recognition of previously unrecognized deferred tax assets on losses 1.6 0.4 Adjustments in respect of prior year (1.5) 0.7 Difference in statutory tax rates - (0.2) Exchange rate differences - 0.1 Other 0.8 1.8 Total income tax expense (28.4) (8.9) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac9.1 million.7.33. AUDIT FEES Full Year in \u20ac thousands 2022 2021 Audit Fees 1,464.2 1,165.0 Additional Services rendered by the auditor's mandate: Audit related fees 192.5 363.7 Tax advisory & compliance services 45.2 30.0 Total 1,701.9 1,558.7 The fees in the above table concern the audit fees for the full Group and not only the continuing operations.", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__344-1": { "value": "The amortization expense is included in the captions of the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of sales 0.1 0.0 General and administrative expenses 9.1 8.5 Total amortization expense 9.2 8.6 * The amortization expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac2.2 million.The depreciation expense is included in the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of Sales 34.3 33.0 Distribution expenses 1.3 1.4 Sales and marketing expenses 0.1 0.1 General administrative expenses 2.4 2.4 Other operating income 1.8 1.5 Total depreciation expense 40.0 38.4 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac14.2 million.The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million.The cost of inventories recognized as an expense and included under \u2018Cost of sales\u2019 amounted to \u20ac1,294.7 million in 2022 (\u20ac1,510.4 million in 2021). The amount for 2021 consists of the full group and does not take into account the reclassification to discontinued operations as the statement of financial position figures at December 31, 2021 were not restated.7.25. EXPENSES BY NATURE Expenses by nature represent an alternative disclosure for amounts included in the consolidated income statement. There are classified under \u2018Cost of sales\u2019, \u2018Distribution expenses\u2019, \u2018Sales and marketing expenses\u2019, \u2018General administrative expenses\u2019 and \u2018Other operating income / expense (net)\u2019 in respect of the years ended December 31: Full Year in \u20ac million Note 2022 2021* Changes in inventories 2.8 (2.8) Raw materials and consumables purchased (1,048.1) (777.0) Employee benefit expenses 22 (285.6) (272.2) Depreciation and amortization 9, 10, 11 (70.4) (65.7) Rendered services (223.9) (178.5) Lease expenses 11 (18.5) (15.0) Other income / (expenses) 23 5.1 (7.0) Total cost of sales, distribution expenses, sales and marketing expenses, general administrative expenses and other operating (1,638.6) (1,318.1) income / (expense) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac623.7 million.", "dimensions": { "concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__175-1": { "value": "The amortization expense is included in the captions of the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of sales 0.1 0.0 General and administrative expenses 9.1 8.5 Total amortization expense 9.2 8.6 * The amortization expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac2.2 million. The Group incurred \u20ac11.8 million of research and development expenses in 2022 (2021: \u20ac8.7 million) that has been recorded under the caption \u2018General and administrative expenses\u2019.The depreciation expense is included in the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of Sales 34.3 33.0 Distribution expenses 1.3 1.4 Sales and marketing expenses 0.1 0.1 General administrative expenses 2.4 2.4 Other operating income 1.8 1.5 Total depreciation expense 40.0 38.4 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac14.2 million.The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million.The cost of inventories recognized as an expense and included under \u2018Cost of sales\u2019 amounted to \u20ac1,294.7 million in 2022 (\u20ac1,510.4 million in 2021). The amount for 2021 consists of the full group and does not take into account the reclassification to discontinued operations as the statement of financial position figures at December 31, 2021 were not restated.Movements on the Group allowance for impairment of trade receivables are as follows: in \u20ac million December 31, 2022 December 31, 2021 Opening Balance 8.6 8.2 Allowance for receivable impairment 0.3 1.3 Receivables written off during the year as uncollectible (0.3) (0.1) Unused amounts reversed (0.1) (0.9) Foreign exchange differences 0.1 0.1 Reclassified as held for sale (4.4) - At December 31 4.1 8.6 The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The creation and the release of the allowance for impaired receivables have been included in \u2018Sales and marketing expense\u2019 in the income statement.Reconciliation of the post-employment employee benefit liabilities in \u20ac million December 31, 2022 December 31, 2021 RECOGNITION OF THE OBLIGATION Defined benefit obligation (DBO) at end of period (26.2) (33.6) Fair value of plan assets at end of period 15.2 14.7 Funded status (11.1) (18.9) Net (liability)/asset in statement of financial position (11.1) (18.9) Defined benefit cost Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost recognized in Income Statement (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Interest income on plan assets 0.2 0.1 Net interest cost (0.2) (0.2) Pension expense (2.4) (2.8) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF THE OBLIGATION Defined benefit obligation (DBO) at beginning of year (33.6) (36.3) Transfer to liability held for sale 2.4 - Current service cost (2.2) (3.2) Past service cost - 0.7 Service cost (2.2) (2.6) Interest expense on DBO (0.3) (0.4) Participant contributions (0.1) (0.1) Administrative expenses included in the DBO 0.1 0.1 Taxes included in the DBO 0.1 0.2 Benefit payments from plan 0.4 0.2 Benefit payments from employer 0.5 0.5 Effect of changes in financial assumptions 5.4 2.5 Effect of experience adjustments 1.1 2.0 Effect of changes in foreign exchange rates - 0.3 Defined benefit obligation (DBO) at end of year (26.2) (33.6) in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF PLAN ASSETS AT FAIR VALUE Fair value of plan assets at beginning of year 14.7 13.5 Transfer to liability held for sale (0.4) - Interest income 0.2 0.1 Employer contribution 1.6 1.9 Plan participants' contributions 0.1 0.1 Benefit payments from plan (0.4) (0.2) Benefit payments from employer (0.5) (0.5) Administrative expenses included in the DBO (0.1) (0.1) Taxes paid from plan assets (0.1) (0.2) Return on plan assets (excluding interest income) 0.0 0.1 Fair value of plan assets at end of year 15.2 14.7 in \u20ac million December 31, 2022 December 31, 2021 RECONCILIATION OF NET (LIABILITY)/ASSET IN STATEMENT OF FINANCIAL POSITION Net (liability)/asset at beginning of year (18.9) (22.8) Transfer to liability held for sale 2.0 - Defined benefit cost included in the income statement (2.2) (2.6) Net interest expense (0.2) (0.2) Total remeasurements included in OCI 6.5 4.6 Employer contributions 1.6 1.9 Effect of changes in foreign exchange rates - 0.3 Net (liability)/asset at end of year (11.1) (18.9) Unfunded versus Funded Part of DBO from plans that are wholly unfunded (11.1) (18.9)7.22. EMPLOYEE BENEFIT EXPENSES Full Year in \u20ac million 2022 2021* Wages and salaries (193.7) (185.8) Social security costs (44.8) (45.7) Defined benefit plans - Service cost (2.2) (2.4) Defined contribution costs (4.1) (4.9) Other employee benefit expenses (40.8) (33.3) Total employee benefit expenses (285.6) (272.2) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac81.1 million. The FTEs listed in the table below only contains the employees part of the continuing operations and therefore deviates significantly from the number of employees included in section 1.2. In Full-Time Equivalents 2022 2021* Average number of total employees 5,351 5,370 Of which: - workers 3,323 3,486 - employees 1,966 1,824 - management 62 59 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of 3.974 average number of total employees. 7.23. OTHER OPERATING INCOME/(EXPENSES), NET Full Year in \u20ac million 2022 2021* Foreign exchange differences on operating activities 8.5 (1.9) Losses on sale of assets (0.6) (0.0) Other income/(expenses) (2.8) (5.0) Total other operating income/(expense), net 5.1 (7.0) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having a negative impact of \u20ac1.4 million. \u201cOther income/(expenses)\u201d consists mainly of depreciation expenses on idle equipment and machinery and pension expenses. 7.24. EBITDA ADJUSTMENTS Full Year in \u20ac million 2022 2021* Business restructuring (10.8) (33.0) Acquisition and disposal of businesses (0.3) (1.1) Refinancing - (0.1) Income and expenses related to changes to Group structure (11.2) (34.2) Impairment of assets (91.0) (23.5) Litigation and legal claims (0.2) (3.2) Other (0.6) 1.2 Income and expenses related to impairments and major litigations (91.8) (25.5) Total EBITDA adjustments (103.0) (59.7) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac25.1 million Items classified under the heading EBITDA adjustments are those items that are considered by management not to relate to items in the ordinary course of activities of the Company. The Group has adopted this classification to allow a better understanding of its recurring financial performance. These items are presented as follows in the consolidated income statement as follows: \u2022 income and expenses related to changes to Group structure; and \u2022 income and expenses related to impairments and major litigations. 7.24.1. Income and expenses related to changes to Group structure Restructuring In 2021, the cost relates to the restructuring expenses in the context of the redistribution/re-allocation of production capabilities and the strategic review of the geographical footprint of the Group. As such, the Company decided to downsize some production capacity which has been announced to the relevant stakeholders and incurred costs for a total amount of \u20ac26.4 million in 2021, of which \u20ac23.8 million was recognized as a restructuring provision during 2021. Costs related to this exercise amounted to \u20ac5.4 million in 2022. The Group announced in the fourth quarter of 2020 an in-depth review of the Group\u2019s overhead cost structure. The costs incurred in 2021 amount to \u20ac7.5 million. The difference with the figures included in the annual report of 2021 is explained by the part related to the Emerging Markets. 7.24.2. Income and expenses related to impairments and major litigations Impairment of assets In 2022, the impairment losses mainly include the impairment of goodwill related to the Russian business (\u20ac84.1 million) and also some impairment losses on idle machinery. In 2021, the impairment losses mainly include the impairment losses on idle machinery. Litigation and claims The Company incurred specific legal fees in the context of certain on-going or potential litigation matters which are expected to result in a potential benefit for the Company or in the avoidance of potential future expenses. 7.25. EXPENSES BY NATURE Expenses by nature represent an alternative disclosure for amounts included in the consolidated income statement. There are classified under \u2018Cost of sales\u2019, \u2018Distribution expenses\u2019, \u2018Sales and marketing expenses\u2019, \u2018General administrative expenses\u2019 and \u2018Other operating income / expense (net)\u2019 in respect of the years ended December 31: Full Year in \u20ac million Note 2022 2021* Changes in inventories 2.8 (2.8) Raw materials and consumables purchased (1,048.1) (777.0) Employee benefit expenses 22 (285.6) (272.2) Depreciation and amortization 9, 10, 11 (70.4) (65.7) Rendered services (223.9) (178.5) Lease expenses 11 (18.5) (15.0) Other income / (expenses) 23 5.1 (7.0) Total cost of sales, distribution expenses, sales and marketing expenses, general administrative expenses and other operating (1,638.6) (1,318.1) income / (expense) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac623.7 million.", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__171-1": { "value": "The Group incurred \u20ac11.8 million of research and development expenses in 2022 (2021: \u20ac8.7 million) that has been recorded under the caption \u2018General and administrative expenses\u2019.The depreciation expense is included in the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of Sales 34.3 33.0 Distribution expenses 1.3 1.4 Sales and marketing expenses 0.1 0.1 General administrative expenses 2.4 2.4 Other operating income 1.8 1.5 Total depreciation expense 40.0 38.4 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac14.2 million.The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million.7.25. EXPENSES BY NATURE Expenses by nature represent an alternative disclosure for amounts included in the consolidated income statement. There are classified under \u2018Cost of sales\u2019, \u2018Distribution expenses\u2019, \u2018Sales and marketing expenses\u2019, \u2018General administrative expenses\u2019 and \u2018Other operating income / expense (net)\u2019 in respect of the years ended December 31: Full Year in \u20ac million Note 2022 2021* Changes in inventories 2.8 (2.8) Raw materials and consumables purchased (1,048.1) (777.0) Employee benefit expenses 22 (285.6) (272.2) Depreciation and amortization 9, 10, 11 (70.4) (65.7) Rendered services (223.9) (178.5) Lease expenses 11 (18.5) (15.0) Other income / (expenses) 23 5.1 (7.0) Total cost of sales, distribution expenses, sales and marketing expenses, general administrative expenses and other operating (1,638.6) (1,318.1) income / (expense) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac623.7 million.", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__170": { "value": "The Group incurred \u20ac11.8 million of research and development expenses in 2022 (2021: \u20ac8.7 million) that has been recorded under the caption \u2018General and administrative expenses\u2019.", "dimensions": { "concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__345-1": { "value": "No intangible assets have been pledged in the context of financial liabilities.No pledges have been set on the items of property, plant and equipment, except for some machinery in the context of local borrowings.During the year, the payment terms for the receivables have neither deteriorated nor been renegotiated that affect the overall payment terms. The maximum credit risk exposure at the end of the reporting period is the carrying value of each caption of receivables mentioned above. The Group does not hold any collateral as security.7.17.1. Collateral for borrowings The Group is subject to regular information covenants, and certain financial ratios are monitored. At year-end 2022 and 2021, all covenants were met. No assets have been pledged in the context of the syndicated term loans. However, certain subsidiaries act as guarantors for these loans. For local borrowings, some machinery are pledged.7.17.2. Other information Serenity SPA has a total of \u20ac62.0 million lines of credit available, of which \u20ac19.5 million has been used through the issuance of external bank guarantees: \u2022 \u20ac30.0 million from UniCredit \u2022 \u20ac25.0 million from UBI \u2022 \u20ac7.0 million from BNL A line of credit of AUD 1.0 million has been granted to Ontex Manufacturing Pty Ltd by Commonwealth Bank Australia, of which AUD 0.4 million has been used. For Ontex BV, a bank guarantee issued by BNL is in place for \u20ac2.5 million in favor of the Italian Custom Agency as at December 31, 2022. .7.30.2. Bank guarantees As indicated in note 7.17 \u2018Interest-bearing debts\u2019, no assets are pledged as security for these borrowings. The entire amount of the Group\u2019s bank borrowings and accrued interest are secured according to collective pledge agreements. The Group has given bank guarantees for an amount of \u20ac19.5 million in order to participate in public tenders as at December 31, 2022 (2021: \u20ac18.7 million). ", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__350-1": { "value": "Considering the renewed strategy of the Group to refocus its activities on Europe and North America, the Group has reviewed the cash-generating units and has determined the following cash-generating units for the purpose of the goodwill impairment testing: \u2022 Europe \u2022 Russia \u2022 North America Annual impairment reviews are performed during the fourth quarter of each year for all CGUs, except if there would be factors indicating a risk for impairment loss. These reviews compare the carrying value of each CGU with the recoverable amount of the CGU\u2019s assets calculated using a discounted cash flow model. If the recoverable amount is less than the carrying value of the CGU, an impairment loss is recognized immediately in the income statement. Due to the current economic performance of the Group and the modified strategy, the Group has performed an impairment test on a more frequent basis during 2022. The test at half year 2022 revealed that an impairment loss should be recognized on the CGU \u201cRussia\u201d. The test at year-end did not lead to any additional impairment. The judgments and estimates considered in the context of the impairment tests are disclosed in note 7.4.4. Goodwill allocated to the CGUs as at December 31 was as follows: in \u20ac million 2022 2021 Europe 743.1 818.0 North & Central America N/A 205.1 North America 54.9 N/A Middle East, Africa & Asia N/A 16.7 Goodwill allocated to the CGU's 797.9 1,039.9 As mentioned above, the test carried out at half year 2022 resulted in the recognition of an impairment loss of \u20ac84.1 million on the CGU \u201cRussia\u201d reflecting the revised strategy and forecasts. The impairment loss of \u20ac84.1 million has been entirely allocated to goodwill. The recoverable amount of a CGU is determined by means of value-in-use calculations. These calculations are based on pre-tax cash flow projections (prepared in euros) using key parameters from the consolidated financial budget approved by Ontex\u2019 Board of Directors and the Group\u2019s Strategic Plan through 2025. Cash flows in 2026 are determined based on the average growth rate in the Group\u2019s Strategic Plan through 2025. Cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. The key assumptions for the value-in-use calculations used to determine the recoverable amount are those regarding the discount rates, estimated changes to selling prices, product offerings, direct costs, operating margins and terminal growth rates. Climate-related matters were considered but did not have a material impact on the value-in-use calculation as explained in the Non-Financial Statements. The discount rate is a measure based on industry average weighted cost of capital and risk-free rates weighted for the different regions in which the CGU\u2019s are operating. Changes in selling practices and direct costs are based on past practices and expectations of future changes in the market. The calculation uses cash flow projections based on key parameters from the consolidated financial budget approved by the Board of Directors, the Group\u2019s Strategic Plan through 2025, and pre-tax discount rates for each CGU as described in note 7.4.4 Impairment based on current market assessments of the time value of money and the risks specific to the Group. The development of the financial budget and Strategic Plan relies on a number of assumptions, including: \u2022 The market growth, the evolution of the Group\u2019s market share, competitive landscape and innovation trends in the different markets as well as strategic initiatives. \u2022 The product mix. \u2022 The expected evolution of various direct and indirect expenses. \u2022 The estimated future capital expenditure. The assumptions were derived mainly from: \u2022 Available historic data. \u2022 External market research. \u2022 Internal market expectations based on trend reports, etc. The key assumptions used are reviewed and updated on a yearly basis by the Group\u2019s management. Taking into account the excess of the cash-generating unit\u2019s recoverable amount over its carrying amount, and based on sensitivity testing performed, management is of the opinion that any reasonably possible changes in key assumptions on which the recoverable amount is based would not cause the carrying amount to exceed the recoverable amount at December 31, 2022. The Group has performed a sensitivity analysis by reducing the risk-adjusted cash flow projections and by increasing the pre-tax discount rate as disclosed in note 7.4.4 Impairment. 7.19.1. Deferred taxes Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred taxes relate to the same fiscal authority. The deferred tax assets and liabilities are attributable to the following items: December 31, 2022 December 31, 2021 Deferred tax asset Deferred tax liability Deferred tax asset Deferred tax liability in \u20ac million Intangible assets 1.1 - - (0.9) Property, plant and equipment - (45.4) - (40.7) Leases 19.5 (14.9) 22.7 (19.8) Inventories 2.8 - 1.7 - Financial instruments 0.0 - 35.8 (36.6) Employee benefits 3.1 - 5.8 - Accrued expenses and other payables 3.9 - 8.9 - Others - (0.1) 2.5 - Tax losses 126.0 - 162.6 - Tax credit 15.9 - 9.4 - Deferred tax assets & liabilities - Gross 172.4 (60.3) 249.3 (98.0) Net deferred tax assets not recognized (121.2) - (154.1) - Offsetting (39.0) 39.0 (75.5) 75.5 Deferred tax assets & liabilities - Net 12.1 (21.3) 19.7 (22.5) Deferred tax assets are recognized on temporary differences, tax attributes carried forward and tax losses carried forward to the extent that the realization of the related tax benefit through the future taxable profits is probable. The tax losses carried forward mainly relate to France, Belgium and Spain. In Belgium and France, deferred tax assets have been recognized on tax losses carried forward considering the expected taxable profits in the foreseeable future. The Group did not recognize deferred tax assets for an amount of \u20ac121.2 million (2021: \u20ac154.1 million) on the tax losses carried forward. Tax losses can in principle be carried forward indefinitely. The Group did not recognize deferred taxes associated with investments in subsidiaries. There is currently no policy or detailed plan in relation to the payment of dividends within the Group.", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__59-1": { "value": "7.10. PROPERTY, PLANT AND EQUIPMENT Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2022 Opening carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 Hyperinflation opening net book amount 0.0 6.4 0.0 0.0 0.0 6.5 Restated opening net book amount 121.4 403.3 1.0 0.6 53.6 579.9 Additions 4.9 33.6 0.3 0.1 7.0 45.9 Transfers 2.0 21.6 0.1 0.0 (23.2) 0.6 Disposals (0.3) (0.7) 0.0 0.0 (0.1) (1.1) Depreciation expense (4.4) (35.2) (0.3) (0.2) 0.0 (40.0) Impairment 0.0 (4.1) (0.0) 0.0 (0.2) (4.4) Capital grants received 0.0 (0.4) 0.0 0.0 0.0 (0.4) Exchange differences 0.8 7.2 0.0 0.0 0.9 9.0 Reclassified as held for sale (46.7) (124.9) (0.3) (0.2) 2.5 (169.5) Closing carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 At December 31, 2022 Cost 124.1 587.5 3.3 3.3 40.6 758.8 Accumulated depreciation and impairment ( 46.3) ( 287.1) ( 2.3) ( 2.9) 0.0 ( 338.7) Carrying amount 77.8 300.4 0.9 0.4 40.6 420.1 Assets under Land, land Plant, machinery Furniture and Other tangible construction and improvements and Total and equipment vehicles assets advance buildings in \u20ac million payments Period ended December 31, 2021 Opening carrying amount 123.1 407.3 1.3 1.0 83.2 615.9 Additions 0.9 18.1 0.0 0.0 25.3 44.2 Transfers 1.0 54.1 0.0 0.1 (55.6) (0.3) Disposals (1.2) (0.3) 0.0 (0.1) (0.1) (1.7) Depreciation expense (5.7) (46.0) (0.4) (0.5) 0.0 (52.5) Impairment (1.7) (39.5) (0.0) 0.0 (0.2) (41.4) Capital grants received 0.0 (0.2) 0.0 0.0 0.0 (0.2) Exchange differences 2.3 3.2 (0.0) 0.0 1.0 6.5 Reclassified as held for sale 2.7 0.2 (0.0) 0.0 0.0 2.9 Closing carrying amount 121.4 396.9 1.0 0.6 53.6 573.4 At December 31, 2021 Cost 171.7 743.6 3.5 3.9 53.6 976.3 Accumulated depreciation and impairment ( 50.3) ( 346.7) ( 2.5) ( 3.4) 0.0 ( 402.9) Carrying amount 121.4 396.9 1.0 0.6 53.6 573.47.11. LEASES Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2022 Opening carrying amount 87.4 4.0 10.5 102.0 Hyperinflation opening net book amount 0.7 0.0 0.0 0.7 Restated opening net book amount 88.1 4.0 10.5 102.7 Additions 40.3 0.6 3.3 44.2 Transfers ( 0.0) ( 0.7) 0.0 ( 0.7) Disposals ( 0.5) 0.0 ( 0.0) ( 0.6) Depreciation expense ( 15.8) ( 1.3) ( 4.1) ( 21.2) Impairment ( 3.2) 0.0 0.0 ( 3.2) Modifications to lease liabilities ( 2.0) ( 0.1) ( 0.5) ( 2.5) Exchange differences 2.6 ( 0.0) 0.1 2.7 Reclassified as held for sale ( 9.5) ( 0.1) ( 1.7) ( 11.3) Closing carrying amount 100.1 2.5 7.5 110.1 At December 31, 2022 Cost 156.8 6.7 16.5 180.0 Accumulated depreciation and impairment ( 56.8) ( 4.2) ( 9.0) ( 69.9) Carrying amount 100.1 2.5 7.5 110.1 Land, land Plant, machinery and improvements and Furniture and vehicles Total equipment in \u20ac million buildings Period ended December 31, 2021 Opening carrying amount 108.8 6.2 11.8 126.8 Additions 2.5 0.2 4.5 7.2 Depreciation expense (16.3) (2.3) (5.8) (24.4) Impairment (5.0) 0.0 0.0 (5.0) Modifications to lease liabilities (3.5) (0.1) 0.3 (3.3) Exchange differences 0.9 0.0 (0.3) 0.7 Closing carrying amount 87.4 4.0 10.5 102.0 At December 31, 2021 Cost 138.6 11.4 25.5 175.5 Accumulated depreciation and impairment (51.1) (7.4) (14.9) (73.4) Carrying amount 87.4 4.0 10.5 102.07.24. EBITDA ADJUSTMENTS Full Year in \u20ac million 2022 2021* Business restructuring (10.8) (33.0) Acquisition and disposal of businesses (0.3) (1.1) Refinancing - (0.1) Income and expenses related to changes to Group structure (11.2) (34.2) Impairment of assets (91.0) (23.5) Litigation and legal claims (0.2) (3.2) Other (0.6) 1.2 Income and expenses related to impairments and major litigations (91.8) (25.5) Total EBITDA adjustments (103.0) (59.7) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac25.1 million7.9. GOODWILL AND INTANGIBLE ASSETS IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2022 Opening net book amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 Hyperinflation opening net book amount 9.5 0.0 0.0 0.0 0.0 9.5 Restated opening net book amount 1,049.4 15.4 1.7 19.2 9.5 1,095.2 Additions 0.0 0.0 0.2 6.7 4.5 11.3 Transfers 0.0 0.0 3.7 0.9 (4.5) 0.1 Reclassified as held for sale (170.6) (15.4) 0.0 0.0 0.2 (185.8) Amortization expense 0.0 0.0 (1.3) (7.9) 0.0 (9.2) Impairment (84.1) 0.0 (0.2) 0.0 0.0 (84.3) Exchange differences 3.2 (0.0) 0.0 (0.0) 0.0 3.2 Closing carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 At December 31, 2022 Cost 862.6 0.0 9.4 67.5 23.7 963.4 Accumulated amortization and impairment (64.7) (0.0) (5.3) (48.6) (14.1) (132.7) Carrying amount 797.9 (0.0) 4.1 18.9 9.6 830.6 IT Capitalized Other Goodwill Brands implementation Total Development intangibles in \u20ac million costs Year ended December 31, 2021 Opening net book amount 1,106.7 23.2 3.7 20.8 5.8 1,160.2 Additions 0.0 0.0 0.1 7.0 5.2 12.3 Transfers 0.0 0.0 1.1 0.1 (0.9) 0.3 Disposals 0.0 0.0 (0.1) (0.0) 0.0 (0.1) Amortization expense 0.0 (1.6) (1.0) (8.2) (0.0) (10.8) Impairment (66.1) (7.1) (2.1) (0.5) (0.5) (76.3) Exchange differences (0.7) 0.8 0.0 (0.0) 0.0 0.1 Closing carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.7 At December 31, 2021 Cost 1,106.8 31.2 5.5 62.2 23.7 1,229.3 Accumulated amortization and impairment (66.9) (15.8) (3.8) (43.0) (14.1) (143.6) Carrying amount 1,039.9 15.4 1.7 19.2 9.5 1,085.77.24.2. Income and expenses related to impairments and major litigations Impairment of assets In 2022, the impairment losses mainly include the impairment of goodwill related to the Russian business (\u20ac84.1 million) and also some impairment losses on idle machinery. In 2021, the impairment losses mainly include the impairment losses on idle machinery. 7.1.9. Impairment of non-financial assets, other than goodwill Intangible assets with indefinite useful lives and intangible assets not yet available for use are not subject to amortization, but are tested annually for impairment. Other assets which are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.Spare parts held by the Group are classified as property, plant and equipment if they are expected to be used in more than one period and if they are specific to a single machine. If they are not expected to be used in more than one period or if they can be used on several machines, they are classified as inventory. For the spare parts classified as inventory, the Group uses write-down rules based on the economic use of these spare parts.7.4.4. Impairment The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 7.1.4 \u201cGoodwill\u201d. The outcome of these goodwill impairment tests in 2022 resulted in an impairment loss for the CGU \u201cRussia\u201d. The impairment recognized on the CGU \u201cRussia\u201d was entirely allocated to the goodwill (\u20ac84.1 million). For more detailed information, see note 7.9. The Group identifies the following cash-generating units: \u2022 Europe \u2022 Russia \u2022 North America \u2022 As part of Assets held for sale (Central America, MEAA and South America. For more information, see note 7.4.9 and 7.8 The recoverable amounts of cash-generating units (\u2018CGUs\u2019) have been determined based on value-in-use calculations. These calculations require the use of estimates and assumptions, including macroeconomic conditions, demand and competition in the markets where we operate, product offerings, product mix and pricing, raw materials availability and cost, direct and indirect expenses, operating margins, growth rates, capital expenditure and working capital, etc. as reflected in Ontex\u2019 financial budgets and strategic plans, as well as discount rates. The Group did consider climate-related matters, yet these did not have a material impact on the goodwill impairment exercise, as explained in the Non-Financial Statements. For more details on the impairment test performed, we refer to note 7.9 \u2018Goodwill and intangible assets\u2019. The discount rates used are summarized here below: in % Full Year 2022 2021 Pre-tax discount rate Europe 9.6% 6.8% Russia 18.8% N/A North & Central America N/A 7.5% North America 9.1% N/A Middle East, Africa & Asia N/A 12.8% South America N/A 16.4% As a result of the impairment recognized on the CGU \u201cRussia\u201d, no goodwill is allocated anymore to this CGU. A sensitivity analysis indicates that the recoverable amount of Europe and North America would be equal to their carrying amount if the pre-tax discount rates of the CGUs were 11.8% and 20.8%, respectively and all other variables kept constant. As indicated in note 7.9, cash flows beyond the four-year period are extrapolated using an estimated growth rate of 2.0% for both Europe and North America. These same percentages are used as perpetual growth rates. The growth rates have been determined by management but do not exceed the current market expectations in which the two CGUs are currently operating. Should the long growth rate for any of the CGUs decrease by 40.0%, no impairment would need to be recognized. Should the estimated operating margins decrease by 20.0%, no impairment would be recognized. Future cash flows are estimates that are likely to be revised in future periods as underlying assumptions change. Key assumptions in supporting the value of goodwill include long-term interest rates and other market data. Should the assumptions vary adversely in the future, the value in use of goodwill may reduce below their carrying amounts. Based on current valuations, headroom appears to be sufficient to absorb a normal variation in the underlying assumptions.7.12. INVENTORIES Inventories can be split as follows: in \u20ac million December 31, 2022 December 31, 2021 Raw materials 148.7 178.8 Work in progress 0.8 1.6 Finished goods 122.6 188.6 Other 5.1 7.5 Write-down on inventories (12.9) (17.8) Inventories 264.3 358.7An impairment analysis of trade receivables is done based on expected losses, next to individual assessments, but there are no significant impairments. Movements on the Group allowance for impairment of trade receivables are as follows: in \u20ac million December 31, 2022 December 31, 2021 Opening Balance 8.6 8.2 Allowance for receivable impairment 0.3 1.3 Receivables written off during the year as uncollectible (0.3) (0.1) Unused amounts reversed (0.1) (0.9) Foreign exchange differences 0.1 0.1 Reclassified as held for sale (4.4) - At December 31 4.1 8.6 The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The creation and the release of the allowance for impaired receivables have been included in \u2018Sales and marketing expense\u2019 in the income statement.7.13. TRADE RECEIVABLES, PREPAID EXPENSES AND OTHER RECEIVABLES The current trade and other receivables are detailed below: in \u20ac million December 31, 2022 December 31, 2021 Trade receivables 195.9 278.4 Less: allowance for impairment of trade receivables (4.1) (8.6) Trade receivables - net 191.8 269.8 Prepayments 4.8 8.7 Other amounts receivable 32.1 60.5 Prepaid expenses and other receivables 36.8 69.2 Trade and other receivables - Current 228.6 339.0Brands in 2021 represent the capitalization of some of the brands acquired through the acquisitions of Grupo Mabe and Ontex Brazil. The impairment recognized in 2021 resulted mainly from the goodwill impairment test carried out on the Brazilian business.Impairment losses in 2022 are limited to \u20ac4.4 million and is related to an expected decreased utilization rate on some machinery. In 2021, impairment losses consisted for an amount of \u20ac18.4 million to the impairment performed on the business in Brazil and additional impairment losses recognized on idle machinery because of the economic downturn in certain of our geographies.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__192-1": { "value": "The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million.The depreciation expense is included in the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of Sales 34.3 33.0 Distribution expenses 1.3 1.4 Sales and marketing expenses 0.1 0.1 General administrative expenses 2.4 2.4 Other operating income 1.8 1.5 Total depreciation expense 40.0 38.4 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac14.2 million.7.23. OTHER OPERATING INCOME/(EXPENSES), NET Full Year in \u20ac million 2022 2021* Foreign exchange differences on operating activities 8.5 (1.9) Losses on sale of assets (0.6) (0.0) Other income/(expenses) (2.8) (5.0) Total other operating income/(expense), net 5.1 (7.0) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having a negative impact of \u20ac1.4 million. \u201cOther income/(expenses)\u201d consists mainly of depreciation expenses on idle equipment and machinery and pension expenses. 7.25. EXPENSES BY NATURE Expenses by nature represent an alternative disclosure for amounts included in the consolidated income statement. There are classified under \u2018Cost of sales\u2019, \u2018Distribution expenses\u2019, \u2018Sales and marketing expenses\u2019, \u2018General administrative expenses\u2019 and \u2018Other operating income / expense (net)\u2019 in respect of the years ended December 31: Full Year in \u20ac million Note 2022 2021* Changes in inventories 2.8 (2.8) Raw materials and consumables purchased (1,048.1) (777.0) Employee benefit expenses 22 (285.6) (272.2) Depreciation and amortization 9, 10, 11 (70.4) (65.7) Rendered services (223.9) (178.5) Lease expenses 11 (18.5) (15.0) Other income / (expenses) 23 5.1 (7.0) Total cost of sales, distribution expenses, sales and marketing expenses, general administrative expenses and other operating (1,638.6) (1,318.1) income / (expense) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac623.7 million.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__191-1": { "value": "The consolidated income statement presents the following amounts relating to leases: in \u20ac million 2022 2021* Cost of Sales 7.2 6.0 Distribution expenses 8.8 7.2 Sales and marketing expenses 1.3 1.3 General administrative expenses 3.3 4.3 Other operating income/(expenses) 0.6 0.0 Total depreciation expense 21.2 18.7 Interest expense 4.3 3.2 Expense relating to short-term leases 14.6 11.3 Expense relating to leases of low-value assets 0.3 0.4 Expense relating to variable lease payments 3.7 3.3 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac5.7 million.The depreciation expense is included in the consolidated income statement as follows: in \u20ac million 2022 2021* Cost of Sales 34.3 33.0 Distribution expenses 1.3 1.4 Sales and marketing expenses 0.1 0.1 General administrative expenses 2.4 2.4 Other operating income 1.8 1.5 Total depreciation expense 40.0 38.4 * The depreciation expense for 2021 in the above table deviates from the depreciation expense in the roll forward table of 2021 due to the reclassification of the Emerging Markets to discontinued operations for an amount of \u20ac14.2 million.7.23. OTHER OPERATING INCOME/(EXPENSES), NET Full Year in \u20ac million 2022 2021* Foreign exchange differences on operating activities 8.5 (1.9) Losses on sale of assets (0.6) (0.0) Other income/(expenses) (2.8) (5.0) Total other operating income/(expense), net 5.1 (7.0) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having a negative impact of \u20ac1.4 million. \u201cOther income/(expenses)\u201d consists mainly of depreciation expenses on idle equipment and machinery and pension expenses. 7.25. EXPENSES BY NATURE Expenses by nature represent an alternative disclosure for amounts included in the consolidated income statement. There are classified under \u2018Cost of sales\u2019, \u2018Distribution expenses\u2019, \u2018Sales and marketing expenses\u2019, \u2018General administrative expenses\u2019 and \u2018Other operating income / expense (net)\u2019 in respect of the years ended December 31: Full Year in \u20ac million Note 2022 2021* Changes in inventories 2.8 (2.8) Raw materials and consumables purchased (1,048.1) (777.0) Employee benefit expenses 22 (285.6) (272.2) Depreciation and amortization 9, 10, 11 (70.4) (65.7) Rendered services (223.9) (178.5) Lease expenses 11 (18.5) (15.0) Other income / (expenses) 23 5.1 (7.0) Total cost of sales, distribution expenses, sales and marketing expenses, general administrative expenses and other operating (1,638.6) (1,318.1) income / (expense) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac623.7 million.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__380": { "value": "7.13. TRADE RECEIVABLES, PREPAID EXPENSES AND OTHER RECEIVABLES The current trade and other receivables are detailed below: in \u20ac million December 31, 2022 December 31, 2021 Trade receivables 195.9 278.4 Less: allowance for impairment of trade receivables (4.1) (8.6) Trade receivables - net 191.8 269.8 Prepayments 4.8 8.7 Other amounts receivable 32.1 60.5 Prepaid expenses and other receivables 36.8 69.2 Trade and other receivables - Current 228.6 339.0 Other amounts receivable include recoverable VAT for an amount of \u20ac29.4 million for 2022 (2021: \u20ac55.9 million). The decrease compared to prior year is explained by the reclassification to assets held for sale of the Emerging Markets. The fair value of the current receivables approximates their carrying amounts.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__379": { "value": "7.13. TRADE RECEIVABLES, PREPAID EXPENSES AND OTHER RECEIVABLES The current trade and other receivables are detailed below: in \u20ac million December 31, 2022 December 31, 2021 Trade receivables 195.9 278.4 Less: allowance for impairment of trade receivables (4.1) (8.6) Trade receivables - net 191.8 269.8 Prepayments 4.8 8.7 Other amounts receivable 32.1 60.5 Prepaid expenses and other receivables 36.8 69.2 Trade and other receivables - Current 228.6 339.0 Other amounts receivable include recoverable VAT for an amount of \u20ac29.4 million for 2022 (2021: \u20ac55.9 million). The decrease compared to prior year is explained by the reclassification to assets held for sale of the Emerging Markets. The fair value of the current receivables approximates their carrying amounts.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__378": { "value": "7.13. TRADE RECEIVABLES, PREPAID EXPENSES AND OTHER RECEIVABLES The current trade and other receivables are detailed below: in \u20ac million December 31, 2022 December 31, 2021 Trade receivables 195.9 278.4 Less: allowance for impairment of trade receivables (4.1) (8.6) Trade receivables - net 191.8 269.8 Prepayments 4.8 8.7 Other amounts receivable 32.1 60.5 Prepaid expenses and other receivables 36.8 69.2 Trade and other receivables - Current 228.6 339.0", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__391": { "value": "7.16. EARNINGS PER SHARE In accordance with IAS 33, the basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. The number of shares used for 2022 was 81,030,032, which is the weighted average number of shares for 2022 (2021: 80,950,106 shares). Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent (after adjusting for the effects of all dilutive potential ordinary shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. In case of Ontex Group NV, no effects of dilution affect the net profit attributable to ordinary equity holders. The table below reflects the income and share data used in the basic and diluted earnings per share computations: Full Year in \u20ac million 2022 2021* Basic earnings Profit/(loss) from continuing operations attributable to equity holders of the Company (148.7) (19.5) Profit/loss attributable to equity holders of the Company (270.3) (61.9) Diluted earnings Profit/(loss) from continuing operations attributable to equity holders of the Company (148.7) (19.5) Profit/loss attributable to equity holders of the Company (270.3) (61.9) Adjusted Basic Earnings Profit from continuing operations attributable to equity holders of the Company (148.7) (19.5) EBITDA adjustments 103.0 59.7 Tax correction (4.4) (15.5) Adjusted Basic Earnings (50.1) 24.7 Adjustment dilution - - Adjusted Earnings, after dilution effect (50.1) 24.7 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations. Full Year Number of Shares 2022 2021 Weighted average number of ordinary shares outstanding during the period 81,030,032 80,950,106 Dilution 285,935 230,027 Full Year Earnings per share (\u20ac) 2022 2021 For continuing operations Basic earnings per share (1.83) (0.24) Diluted earnings per share (1.83) (0.24) Adjusted basic earnings per share (0.62) 0.30 Adjusted diluted earnings per share (0.62) 0.30 For continuing and discontinued operations Basic earnings per share (3.34) (0.76) Diluted earnings per share (3.34) (0.76) A weighted average number of 3,377,976 options were not included in the denominator of the diluted earnings per share as they were out-of-the-money at year-end 2022 (2021: 2,320,425 options). .", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__396": { "value": "The following table reconciles the movements of the financial liabilities to the cash flows arising from financing activities: December 31, 2022 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 793.1 (0.4) - (0.8) (1.1) 2.6 793.4 (2.0) Lease and other liabilities 92.1 (25.0) 44.8 4.3 (1.6) 0.6 115.2 (14.8) Current interest-bearing debts - Borrowings 56.4 75.9 - 0.7 1.1 - 134.1 (8.7) Lease and other liabilities 30.6 1.0 - 0.2 1.6 0.0 33.5 (13.5) Total liabilities from financing activities 972.2 51.5 44.8 4.4 0.0 3.2 1,076.1 (39.0) Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 133.2 Repayment of borrowings (81.7) December 31, 2021 Opening Non-cash movements Closing Of which held carrying Cash flows Exchange carrying Acquisition Reclasses Other for sale in \u20ac million amount differences amount Non-current interest-bearing debts Borrowings 800.4 33.9 - (0.1) (48.2) 7.1 793.1 - Lease and other liabilities 111.0 (22.7) 7.2 1.3 0.2 (4.9) 92.1 - Current interest-bearing debts Borrowings 341.1 (341.9) - 0.2 48.2 8.8 56.4 - Lease and other liabilities 25.2 5.4 - 0.2 (0.2) - 30.6 - Total liabilities from financing activities 1,277.7 (325.3) 7.2 1.7 0.0 10.9 972.2 - Presented in the statement of cash flows (financing activities) as follows: Proceeds from borrowings 799.3 Repayment of borrowings (1,124.7)", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasePrepaymentsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__404": { "value": "The Group did not recognize deferred taxes associated with investments in subsidiaries. There is currently no policy or detailed plan in relation to the payment of dividends within the Group.", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__123": { "value": "The Group did not recognize deferred taxes associated with investments in subsidiaries. There is currently no policy or detailed plan in relation to the payment of dividends within the Group.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__407": { "value": "7.19.2. Current taxes December 31, 2022 December 31, 2021 in \u20ac million Current tax assets 5.0 15.0 Current tax liabilities (23.0) (31.8) The current tax assets mainly relate to the excess of pre-payments made compared to the actual income tax payable for the year. The current tax liabilities include an amount of \u20ac14.8 million actual corporate taxes payable (2021: \u20ac19.5 million) and \u20ac8.2 million of provision for uncertain taxes (2021: \u20ac12.3 million). ", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__410": { "value": "7.20. CURRENT AND NON-CURRENT LIABILITIES Other current liabilities (excluding provisions, income tax liabilities, financial liabilities and liabilities directly associated with non-current assets intended for sale) can be presented as follows: in \u20ac million December 31, 2022 December 31, 2021 Accrued expenses and other payables 22.6 39.0 Current accrued expenses and other payables 22.6 39.0 Trade payables 405.3 532.6 Employee benefit liabilities 40.4 46.2 Total current liabilities 468.3 617.8", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__409": { "value": "7.20. CURRENT AND NON-CURRENT LIABILITIES Other current liabilities (excluding provisions, income tax liabilities, financial liabilities and liabilities directly associated with non-current assets intended for sale) can be presented as follows: in \u20ac million December 31, 2022 December 31, 2021 Accrued expenses and other payables 22.6 39.0 Current accrued expenses and other payables 22.6 39.0 Trade payables 405.3 532.6 Employee benefit liabilities 40.4 46.2 Total current liabilities 468.3 617.8", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__408": { "value": "7.20. CURRENT AND NON-CURRENT LIABILITIES Other current liabilities (excluding provisions, income tax liabilities, financial liabilities and liabilities directly associated with non-current assets intended for sale) can be presented as follows: in \u20ac million December 31, 2022 December 31, 2021 Accrued expenses and other payables 22.6 39.0 Current accrued expenses and other payables 22.6 39.0 Trade payables 405.3 532.6 Employee benefit liabilities 40.4 46.2 Total current liabilities 468.3 617.8", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__412-1": { "value": "7.21. PROVISIONS in \u20ac million Legal claims Restructuring Other Total Opening Balance 7.9 24.5 0.2 32.6 Additional provisions 0.2 0.5 0.0 0.7 Unused amounts reversed (0.1) (1.2) - (1.3) Used during the year (0.1) (22.6) (0.1) (22.9) Reclassified as held for sale (1.1) (0.1) - (1.2) As at December 31, 2022 6.8 1.1 0.1 8.0 Of which current 6.8 1.1 0.1 8.0 The restructuring provisions used in 2022 was recognized in 2021 and related to the strategic review of the geographical footprint, launched at year-end 2020 and confirmed in 2021. The provision mainly included termination benefits. The Group recognizes a provision for certain legal claims filed against the Group by customers, suppliers or former employees. On September 2, 2014, Ontex received a notification that the Spanish Competition Authorities (CNMC) opened infringement proceedings against 15 companies in the sector (including three subsidiaries of the Company: Ontex Es Holdco, S.A., Ontex Peninsular, S.A.U. and Ontex ID, S.A.U.) with respect to alleged conduct of fixing prices and other commercial conditions in the Spanish market for heavy adult incontinence products. On May 26, 2016, following the investigation, the CNMC issued its decision. In its decision it has found eight companies, including Ontex' Spanish subsidiaries guilty of being part of a cartel. For its involvement from 1999 to 2014, Ontex was fined \u20ac5.2 million. Ontex initiated an appeal against the decision and this appeal was rejected by judgement of September 2022. Ontex has filed a subsequent request demanding correction of the judgement that rejected Ontex\u2019s appeal and will consider further steps once the request has been processed. As per December 31, 2016, a provision amounting to \u20ac5.2 million has been accounted for. The provision has not been adjusted per December 31, 2022. 7.29. CONTINGENCIES The Group is involved in a number of environmental, contractual, product liability, intellectual property, employment and other claims and disputes incidental to our business. COFECE, the Mexican antitrust authority, conducted an investigation into our industry and confirmed Mabe and certain individuals committed antitrust violations on periods prior to the acquisition of Grupo PI Mabe, S.A. de C.V. (\u201cMabe\u201d) by Ontex; such decision is being appealed on grounds of unconstitutionality of the fines imposed. Based on the confirmed findings of the investigation (all related to pre-Ontex acquisition of Mabe) and in light of the contractual terms of the Mabe acquisition, the Group does not expect this to result in a net financial cost to it. State Sales Tax (ICMS), the State of Goias issued a decree determining Falcon Distribui\u00e7\u00e3o Armazenamento e Transportes S/A (Falcon) to pay a contribution to the Social Protection Fund of the State of Goias (PROTEGE). Falcon received a tax assessment, but filed a lawsuit against the Treasury office of the State of Goias and is currently awaiting the judgement by the court. The Group believes that there are good arguments to defend the case and as such the Group does not believe a loss is probable. The Group currently believes that the disposition of the claims and disputes, individually or in aggregate, should not have a material adverse effect on our consolidated financial condition, results of operations or liquidity.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__416": { "value": "The FTEs listed in the table below only contains the employees part of the continuing operations and therefore deviates significantly from the number of employees included in section 1.2. In Full-Time Equivalents 2022 2021* Average number of total employees 5,351 5,370 Of which: - workers 3,323 3,486 - employees 1,966 1,824 - management 62 59 * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of 3.974 average number of total employees. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__359-1": { "value": "7.23. OTHER OPERATING INCOME/(EXPENSES), NET Full Year in \u20ac million 2022 2021* Foreign exchange differences on operating activities 8.5 (1.9) Losses on sale of assets (0.6) (0.0) Other income/(expenses) (2.8) (5.0) Total other operating income/(expense), net 5.1 (7.0) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having a negative impact of \u20ac1.4 million. \u201cOther income/(expenses)\u201d consists mainly of depreciation expenses on idle equipment and machinery and pension expenses. 7.25. EXPENSES BY NATURE Expenses by nature represent an alternative disclosure for amounts included in the consolidated income statement. There are classified under \u2018Cost of sales\u2019, \u2018Distribution expenses\u2019, \u2018Sales and marketing expenses\u2019, \u2018General administrative expenses\u2019 and \u2018Other operating income / expense (net)\u2019 in respect of the years ended December 31: Full Year in \u20ac million Note 2022 2021* Changes in inventories 2.8 (2.8) Raw materials and consumables purchased (1,048.1) (777.0) Employee benefit expenses 22 (285.6) (272.2) Depreciation and amortization 9, 10, 11 (70.4) (65.7) Rendered services (223.9) (178.5) Lease expenses 11 (18.5) (15.0) Other income / (expenses) 23 5.1 (7.0) Total cost of sales, distribution expenses, sales and marketing expenses, general administrative expenses and other operating (1,638.6) (1,318.1) income / (expense) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac623.7 million.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__427": { "value": "7.26. NET FINANCE COST The various items comprising the net finance cost are as follows: Full Year in \u20ac million 2022 2021* Interest income on current assets 0.8 0.6 Other 0.0 (0.0) Finance income 0.8 0.6 Interest expense on group borrowings (30.6) (21.7) Amortization of borrowing expenses (2.7) (7.1) Interest expense on other borrowings and other liabilities (8.4) (6.0) Interest expense (41.7) (34.7) Banking cost (1.1) (1.3) Factor fee (1.1) (1.2) Losses on derivatives and deports forward contracts (3.2) (0.3) Other (2.3) (2.1) Finance cost (49.3) (39.6) Finance income as per income statement 0.8 0.6 Finance expense as per income statement (49.3) (39.6) Net exchange differences relating to financing activities (2.4) (2.5) Net finance cost as per income statement (50.9) (41.5) * The 2021 consolidated income statement has been restated following the classification of the Emerging Markets as discontinued operations having an impact of \u20ac1.1 million The interest expense on other borrowings and other liabilities includes also the interest expense on lease liabilities as disclosed in note 7.11.", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__436": { "value": "7.29. CONTINGENCIES The Group is involved in a number of environmental, contractual, product liability, intellectual property, employment and other claims and disputes incidental to our business. COFECE, the Mexican antitrust authority, conducted an investigation into our industry and confirmed Mabe and certain individuals committed antitrust violations on periods prior to the acquisition of Grupo PI Mabe, S.A. de C.V. (\u201cMabe\u201d) by Ontex; such decision is being appealed on grounds of unconstitutionality of the fines imposed. Based on the confirmed findings of the investigation (all related to pre-Ontex acquisition of Mabe) and in light of the contractual terms of the Mabe acquisition, the Group does not expect this to result in a net financial cost to it. State Sales Tax (ICMS), the State of Goias issued a decree determining Falcon Distribui\u00e7\u00e3o Armazenamento e Transportes S/A (Falcon) to pay a contribution to the Social Protection Fund of the State of Goias (PROTEGE). Falcon received a tax assessment, but filed a lawsuit against the Treasury office of the State of Goias and is currently awaiting the judgement by the court. The Group believes that there are good arguments to defend the case and as such the Group does not believe a loss is probable. The Group currently believes that the disposition of the claims and disputes, individually or in aggregate, should not have a material adverse effect on our consolidated financial condition, results of operations or liquidity.", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__434-1": { "value": "7.29. CONTINGENCIES The Group is involved in a number of environmental, contractual, product liability, intellectual property, employment and other claims and disputes incidental to our business. COFECE, the Mexican antitrust authority, conducted an investigation into our industry and confirmed Mabe and certain individuals committed antitrust violations on periods prior to the acquisition of Grupo PI Mabe, S.A. de C.V. (\u201cMabe\u201d) by Ontex; such decision is being appealed on grounds of unconstitutionality of the fines imposed. Based on the confirmed findings of the investigation (all related to pre-Ontex acquisition of Mabe) and in light of the contractual terms of the Mabe acquisition, the Group does not expect this to result in a net financial cost to it. State Sales Tax (ICMS), the State of Goias issued a decree determining Falcon Distribui\u00e7\u00e3o Armazenamento e Transportes S/A (Falcon) to pay a contribution to the Social Protection Fund of the State of Goias (PROTEGE). Falcon received a tax assessment, but filed a lawsuit against the Treasury office of the State of Goias and is currently awaiting the judgement by the court. The Group believes that there are good arguments to defend the case and as such the Group does not believe a loss is probable. The Group currently believes that the disposition of the claims and disputes, individually or in aggregate, should not have a material adverse effect on our consolidated financial condition, results of operations or liquidity.7.30. COMMITMENTS 7.30.1. Capital commitments The Group has contracted expenditures for the acquisition of property, plant and equipment at December 31, 2022 of \u20ac21.6 million (2021: \u20ac18.9 million). The amount of 2021 has been adjusted to only reflect the continuing operations.", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__437": { "value": "7.30.1. Capital commitments The Group has contracted expenditures for the acquisition of property, plant and equipment at December 31, 2022 of \u20ac21.6 million (2021: \u20ac18.9 million). The amount of 2021 has been adjusted to only reflect the continuing operations.", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__125": { "value": "7.31. RELATED PARTY TRANSACTIONS As part of our business, Ontex has entered into several transactions with related parties. 7.31.1. Consolidated companies A list of subsidiaries is given in note 7.7 \u2018List of consolidated companies\u2019. 7.31.2. Relations with the shareholders There are no transactions with shareholders per December 31, 2022 (nor in 2021). 7.31.3. Relations with non-executive members of the Board of Directors Full Year in \u20ac million 2022 2021 Remuneration 1.6 1.4 7.31.4. Relations with the key management personnel Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Group. Key management for the Group are all the members of Management Committee. 7.31.5. Key management compensation Remuneration of the CEO Full Year in \u20ac million 2022 2021 Fixed and variable remuneration 2.0 1.6 Remuneration of the Executive Team (excluding the CEO) Full Year in \u20ac million 2022 2021 Fixed remuneration 3.0 4.5 Variable remuneration 1.3 1.5 Other remuneration 0.6 0.6 Total 4.9 6.6 The other remuneration relates mainly to post-employment benefit plans. For a more detailed breakdown, see the Remuneration report. The Company implemented Long-Term Incentive Plans (\u2018LTIP\u2019), which are based on a combination of stock options, restricted stock units and performance stock units (see note 7.28). The number of stock options, restricted stock units and performance stock units granted to the CEO and the Executive Management Team is summarized below: For the year ended December 31, 2022 Number of RSU's Number of PSU's Number of Stock Options LTIP 2018 CEO 14,921 - 75,114 Executive Team (excluding CEO) 47,478 - 239,016 LTIP 2019 CEO 18,414 18,414 64,610 Executive Team (excluding CEO) 53,376 53,376 171,928 LTIP 2020 CEO 19,891 19,891 88,333 Executive Team (excluding CEO) 56,265 56,265 249,870 LTIP 2021 CEO - 94,954 - Executive Team (excluding CEO) - 229,572 - LTIP 2022 CEO - 149,891 - Executive Team (excluding CEO) - 213,070 -", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithRelatedPartiesExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__440-1": { "value": "7.31.4. Relations with the key management personnel Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Group. Key management for the Group are all the members of Management Committee.7.31.5. Key management compensation Remuneration of the CEO Full Year in \u20ac million 2022 2021 Fixed and variable remuneration 2.0 1.6 Remuneration of the Executive Team (excluding the CEO) Full Year in \u20ac million 2022 2021 Fixed remuneration 3.0 4.5 Variable remuneration 1.3 1.5 Other remuneration 0.6 0.6 Total 4.9 6.6 The other remuneration relates mainly to post-employment benefit plans. For a more detailed breakdown, see the Remuneration report. The Company implemented Long-Term Incentive Plans (\u2018LTIP\u2019), which are based on a combination of stock options, restricted stock units and performance stock units (see note 7.28). The number of stock options, restricted stock units and performance stock units granted to the CEO and the Executive Management Team is summarized below: For the year ended December 31, 2022 Number of RSU's Number of PSU's Number of Stock Options LTIP 2018 CEO 14,921 - 75,114 Executive Team (excluding CEO) 47,478 - 239,016 LTIP 2019 CEO 18,414 18,414 64,610 Executive Team (excluding CEO) 53,376 53,376 171,928 LTIP 2020 CEO 19,891 19,891 88,333 Executive Team (excluding CEO) 56,265 56,265 249,870 LTIP 2021 CEO - 94,954 - Executive Team (excluding CEO) - 229,572 - LTIP 2022 CEO - 149,891 - Executive Team (excluding CEO) - 213,070 -", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__444": { "value": "7.32. EVENTS AFTER THE END OF THE REPORTING PERIOD There were no significant events that occurred after the end of the reporting period.", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "s8_notes__5__445": { "value": "7.33. AUDIT FEES Full Year in \u20ac thousands 2022 2021 Audit Fees 1,464.2 1,165.0 Additional Services rendered by the auditor's mandate: Audit related fees 192.5 363.7 Tax advisory & compliance services 45.2 30.0 Total 1,701.9 1,558.7 The fees in the above table concern the audit fees for the full Group and not only the continuing operations.", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:549300AQESC6JJOPW253", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } } } }