Introduction
The Consolidated financial statements at 31 December 2024 were prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and ratified by the European Union (IFRS-EU), and with Part 9 of Book 2 of the Dutch Civil Code. These include all the international accounting standards (IAS) and interpretations of the International Financial Reporting Standards Interpretation Committee (IFRIC).
The Consolidated Financial Statements include the Consolidated Statement of Financial Position, the Consolidated Statement of Income, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, and these Explanatory Notes, in accordance with IFRS requirements.
The Group has prepared the financial statements on a going concern basis, in the belief that there are no material uncertainties that might cast significant doubt over this assumption. The Directors believe that there is a reasonable expectation that the Group possesses adequate resources to continue in operational existence for the foreseeable future.
The financial statements are prepared by the Board of Directors and authorized for issue on 18 March 2025 and will be submitted for adoption to the Annual General Meeting of Shareholders of 29 April 2025.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__15": { "value": "Basis of Preparation and Presentation
The Consolidated Financial Statements of the Group have been prepared on the basis of the financial statements as of 31 December 2024 approved by the Boards of Directors or, if available, by the Shareholders\u2019 Meetings of the relevant consolidated companies, adjusted, where necessary, to ensure conformity with the Group\u2019s classification criteria and accounting policies.
The Consolidated Financial Statements have been prepared in accordance with the general principle of providing a true and fair presentation of the Group\u2019s assets and liabilities, financial position, statement of income results and cash flows, based on the following general assumptions: going concern, accrual accounting, consistency of presentation, materiality and aggregation, prohibition of offsetting, and comparative information.
The administrative period and the closing date for preparing the Consolidated Financial Statements correspond to the ones for the Financial Statements of the Parent and all the consolidated companies. The Consolidated Financial Statements are presented in euro, which is the functional currency of the Parent, Brembo N.V., and all amounts are rounded to the nearest thousand unless otherwise indicated.
The Consolidated Financial Statements provide comparison figures for the previous year. When applying an accounting standard or retroactively recognising an adjustment, or reclassifying financial statement items, the Group includes an additional column showing the Statement of Financial Position for the first comparison year.
The Group made the following choices in relation to the presentation of the Financial Statements:
for the Consolidated Statement of Financial Position, there is separate disclosure of the current and non-current assets and the current and non-current liabilities. Current assets, which include cash and cash equivalents, are those assets that will be realized, sold or consumed in the Group\u2019s normal operating cycle. Current liabilities are obligations that will be liquidated within the Group\u2019s normal operating cycle or within twelve months of the close of the accounting period;
in the Consolidated Statement of Income, expense and income items are stated based on their nature;
the Consolidated Statement of Comprehensive Income has been reported in a separate statement;
for the Consolidated Statement of Cash Flows, the indirect method was used, as indicated in IAS 7.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__16": { "value": "Discretionary Valuations and Significant Accounting Estimates
Preparing financial statements in compliance with the applicable accounting standards requires management to make estimates that may have a significant effect on the items reported in the accounts. Estimates and associated assumptions are based on historical experience and other factors that are believed to be reasonable under the current circumstances and given the information available at the reporting date. Actual results may differ from these estimates. Estimates and associated assumptions are reviewed on an ongoing basis. Revisions of estimates are recognized in the period in which such estimates are revised. Management\u2019s decisions that have a significant impact on the financial statements and estimates, and have a significant risk of material adjustments to the
book value of assets and liabilities in the next accounting period, are discussed in the notes to the individual financial statement entries.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.
Capitalization of development costs
The initial capitalization is based on management\u2019s judgement about the technical and economic feasibility of the project, usually when the project has reached a certain phase of the development plan. When assessing the recoverability of development costs, recoverable amount is estimated on the basis of the future cash flows expected from the project, the applicable discount rates and the period in which expected benefits will be generated. Further information is given in Note 2 of these Explanatory Notes;
Taxes
The Consolidated Financial Statements include deferred tax assets associated with the recognition of tax losses or tax credits that may be used in subsequent years and income components that are tax-deductible on a deferred basis, resulting in an amount the future recovery of which is deemed highly probable by company management The recoverability of such deferred tax assets is conditional on earning future taxable income sufficient to offset such tax losses and for the use of the benefits of other deferred tax assets. Significant management\u2019s judgement is required in assessing the probability of the recoverability of deferred tax assets, taking into account all possible negative and positive evidence, and in determining the amount that may be recognized on the basis of the timing and amount of future taxable income, future tax planning strategies and the tax rates in effect when
the differences will be reversed. Deferred tax liabilities for taxes on non-distributed profits of subsidiaries, associates or joint ventures are not recognized to the extent that it is considered probable that they will not be distributed in the foreseeable future. The wide range of international commercial relations, the long-term nature and the complexity of current contractual agreements, any differences between actual results and formulated hypothesis, or future changes of those assumptions, may require future adjustments to previously recognized income taxes and expenses. If it should be concluded that the Group is no longer able to recover in future years part or all of the deferred tax assets recognized, the consequent adjustment will be taken to the Statement of Income in the year in which this occurs. The recoverability of deferred tax assets is reviewed at the end of each period. Deferred tax assets not recognized in the financial statements are reassessed at each reporting date to verify the conditions for recognising them. Further information is given in Note 6 of these Explanatory Notes.
Impairment of non-financial assets
The recoverable amounts of such assets have been verified in accordance with the criteria laid down in IAS\u00a036. When determining their recoverable amount, the Group generally applies the criterion of value in use, defined as the present value of the future cash flows expected from the assets being assessed. CGUs (cash-generating units) have been identified in accordance with the Group\u2019s organizational and business structure as assets that generate independent cash inflows from their ongoing use. CGUs are thus represented by the individual legal entities that serve the markets, and the criteria for defining them were not changed during the year. In limited cases, the CGU may be represented by the business of reference present in the region, even if managed by multiple legal entities. An impairment loss occurs when the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount, which is the greater of fair value less costs to sell and its value in use. Recoverable amount is highly dependent on the discount rate used in
the discounted cash flow model (which reflects the current market assessments of the time value of money and the risks specific to the asset in question), the expected future cash flows and the growth rate used for extrapolation. The expected future cash flows used to determine value in use are based on the most recent financial plan approved by management, containing projected volumes, revenues, operating costs and investments. The key assumptions used to determine the recoverable amounts of the various cash-generating units, including a sensitivity analysis, are described in detail in these Explanatory Note 2 hereto.
Defined benefit plan
The cost of defined benefit pension plans and other post-employment medical care and the present value of the defined benefit obligation are determined according to an actuarial assessment. Costs and liabilities associated with such plans are calculated based on estimates prepared by actuarial consultants, who use a combination of statistical and actuarial factors, including statistical data concerning previous years and projections of future costs. In addition, the components of estimation also include mortality and retirement rates, assumptions regarding the future evolution of discount rates, salary growth rates, inflation rates and an analysis of the performance of healthcare costs. These estimates may differ substantially from actual results due to the development of economic and market conditions, increases or decreases in retirement rates and the life expectancy of participants and changes in actual healthcare costs. Due to the complexity of the assessment and its long-term nature, such estimates are extremely sensitive to changes in assumptions. All assumptions are therefore reviewed annually. Further information is given in Note 16 of these Explanatory Notes.
Fair value measurement of financial instruments
The determination of the fair value of financial instruments is a structured process involving the use of complex valuation methodologies and techniques
and the collection of up-to-date information from the markets of reference and/or the use of internal input data. The fair value of financial instruments is calculated on the basis of market prices, where available, or, for unlisted financial instruments, by applying specific valuation techniques based on the discounting of future cash flows. As with other estimates, the determination of fair value, while based on the best available information and the adoption of adequate valuation methodologies and techniques, is intrinsically characterized by elements of uncertainty and the use of professional judgement, which could result in projected values that differ from actual results.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__17": { "value": "Climate Change
A worldwide process of decarbonization and electrification of the global economy is in progress. In accordance with the requirements of the Paris Agreement, this process is crucial to achieving the net zero goal, which should prevent the severe consequences of an increase in temperatures of over 1.5\u00b0C.
To this end, and as illustrated in greater detail in the Sustainability statement, the Group has set its own strategic guidelines, which lay down:
a process aimed at reducing to zero by 2040 the CO2emissions classified as Scopes 1 and 2 (direct and indirect emissions generated by its activities) and Scope\u00a03 (emissions generated by the value chain);
the development of solutions that facilitate the emission reduction, increasing vehicles\u2019 overall efficiency.
Within this framework, IAS 1 requires that the Notes to the Financial Statements include a disclosure of the entity\u2019s assumptions concerning the future that might entail a significant risk of causing a material adjustment in the subsequent financial year. The consequences in terms of investments, costs and cash flows are taken into consideration when preparing the financial statements, in accordance with the progress of the roadmap of the
process (e.g., revision of the useful lives of assets planned to be replaced, adjustment of impairment tests to reflect the impacts on investment flows, etc.). It is possible that in the future the carrying amounts of assets and liabilities in the Group\u2019s financial statements may be subject to various impacts as the strategy for managing climate change continues to evolve. These aspects are monitored through coordination between the various company functions involving a cross-functional work team set up to conduct thorough analyses of the impact of projects aimed at reducing the emissions generated by the production process and value chain. The roadmap to achieving the net zero goal is periodically updated and discussed within the Sustainability Committee to assess specific investment needs, evaluate the impact of external events and update the state of progress.
Pursuant to IAS 36, impairment tests are conducted on the basis of the Group\u2019s Business Plan, which in turn is founded on short-, medium- and long-term strategic objectives. The cash flows used are therefore drawn from this plan and include both the risks and opportunities associated with climate change (e.g., energy efficiency projects, replacement of energy sources, development of low-emissions products, etc.).
IAS 16 and 38 establish the criteria for capitalising costs. Costs, including those of developing new solutions that reduce consumption, are capitalized when they meet the requirements set by the two standards. The useful lives of property, plant and equipment, along with those of intangible assets, are determined in accordance with the Group\u2019s strategic objectives and Business Plan.
IFRS 13 requires a disclosure of the key assumptions used when assets are measured at fair value and measurement may include various possible scenarios. The Company\u2019s portfolio includes VPPAs (Virtual Power Purchase Agreements) and a cPPA (Corporate Power Purchase Agreement). The VPPAs are measured at fair value on the basis of market scenarios that reflect actual transactions, fundamental models and operators\u2019 expectations regarding short, medium and long-term energy scenarios
according to IFRS 9 principle, applying hedge accounting. In particular, as part of the assessment of the existence of an economic relationship between the hedged item and the hedging instrument through a qualitative assessment, the Company expects a high level of compensation between change in fair value of hedging instrument and present value of cash flows resulting from hedged item due to:
identical volume of the hedging instrument (VPPA) and the hedged item (forecasted purchase price of electricty) in each year,
similar payments dates;
an identical basis instrument for floating price (TGe24 index).
At each assessment date the Group will review whether all above key terms and conditions are still matched.
The cPPA is elected for own use exemption, according to the same accounting principle.
In addition, specific sensitivity analyses are conducted to take account of the various future scenarios.
All the contracts are managed to hedge electricity price in Poland (paying a fixed price) and to grant the company an higher share of green energy, according to its sustainability targets.
On the basis of IAS 37, it is possible that the provisions previously recognized for future events could be realized sooner, with the resulting change in the estimate to be recognized. Climate change, and the ensuing associated legislation, might require the reconsideration of such estimates and recognition of liabilities previously not recognized, for which specific disclosure would be provided.
Despite including considerable investments relating to sustainability objectives in its financial plans, Brembo has introduced an additional sensitivity scenario for its flows (at both consolidated level and GBU level), designed to reflect its carbon neutrality goals. Accordingly, cash outflows were simulated, both during the explicit period and in the estimate of terminal value, which simulate the cost of neutralising CO2 emissions (Scope 1) on the basis of the market values that would be incurred to neutralize them.
", "dimensions": { "concept": "BRE:DisclosureOfClimateChange", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__18": { "value": "Change in accounting standards and disclosures
The valuation and measurement criteria used are based on the IFRS in force as of 31 December 2024 and endorsed by the European Union. In the reporting year, the Group applied a series of amendments to the international accounting standards issued by the IASB that entered into effect on a mandatory basis for accounting periods that begin on or after 1 January 2024. Their adoption had no impact on the information or the amounts indicated in these Financial Statements.
Amendments to IFRS 16 \u2013 Leases
The IASB has issued narrow-scope amendments to the requirements for sale and leaseback transactions in IFRS 16 explaining how a seller-lessee accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or a rate are most likely to be impacted.
Amendments to IAS 1 \u2013 Presentation of Financial Statements
The amendments to IAS 1 clarify the criteria for classifying liabilities with covenants as current or non-current. The amendments will also require companies to provide additional information to stakeholders. The changes introduced by the amendments require companies to consider the potential impact for their loan arrangements and the presentation of their financial statements.
Amendments to IAS 7 \u2013 Statement of Cash Flows and IFRS 7 \u2013 Financial Instruments
In May 2023, the International Accounting Standards Board issued amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. With the amendments, the IASB has introduced new disclosure requirements in IFRS Standards to enhance the transparency and, thus, the usefulness of the information provided by entities about supplier finance arrangements.
Other standards, interpretations or amendments, endorsed or not yet endorsed, and not yet entered into force at the reporting date, are listed in the following table:
Description | Endorsed | Expected date of entry into force |
Amendments to IAS 21 \u2013 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability(issued on 15 August 2023) | YES | 1 January 2025 |
IFRS 18 - Presentation and Disclosure in Financial Statement(issued on 9 April 2024) | NO | 1 January 2027 |
IFRS 19 - Subsidiaries without Public Accountability Disclosure(issued on 9 May 2024) | NO | 1 January 2027 |
Annual Improvements Volume 11(issued on 18 July 2024) | NO | 1 January 2026 |
Amendments to IFRS 9 and IFRS 7 \u2013 Contracts Referencing Nature-dependent Electricity (issued on 18 December 2024) | NO | 1 January 2026 |
Amendments to IFRS 9 and IFRS 7 \u2013 Amendments to the Classification and Measurement of Financial Instruments (issued on 30 May 2024) | NO | 1 January 2026 |
The Group did not opt for early adoption of new standards, interpretations or amendments that have been issued but have not entered into force yet.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__19": { "value": "Change in accounting standards and disclosures
The valuation and measurement criteria used are based on the IFRS in force as of 31 December 2024 and endorsed by the European Union. In the reporting year, the Group applied a series of amendments to the international accounting standards issued by the IASB that entered into effect on a mandatory basis for accounting periods that begin on or after 1 January 2024. Their adoption had no impact on the information or the amounts indicated in these Financial Statements.
Amendments to IFRS 16 \u2013 Leases
The IASB has issued narrow-scope amendments to the requirements for sale and leaseback transactions in IFRS 16 explaining how a seller-lessee accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or a rate are most likely to be impacted.
Amendments to IAS 1 \u2013 Presentation of Financial Statements
The amendments to IAS 1 clarify the criteria for classifying liabilities with covenants as current or non-current. The amendments will also require companies to provide additional information to stakeholders. The changes introduced by the amendments require companies to consider the potential impact for their loan arrangements and the presentation of their financial statements.
Amendments to IAS 7 \u2013 Statement of Cash Flows and IFRS 7 \u2013 Financial Instruments
In May 2023, the International Accounting Standards Board issued amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. With the amendments, the IASB has introduced new disclosure requirements in IFRS Standards to enhance the transparency and, thus, the usefulness of the information provided by entities about supplier finance arrangements.
Other standards, interpretations or amendments, endorsed or not yet endorsed, and not yet entered into force at the reporting date, are listed in the following table:
Description | Endorsed | Expected date of entry into force |
Amendments to IAS 21 \u2013 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability(issued on 15 August 2023) | YES | 1 January 2025 |
IFRS 18 - Presentation and Disclosure in Financial Statement(issued on 9 April 2024) | NO | 1 January 2027 |
IFRS 19 - Subsidiaries without Public Accountability Disclosure(issued on 9 May 2024) | NO | 1 January 2027 |
Annual Improvements Volume 11(issued on 18 July 2024) | NO | 1 January 2026 |
Amendments to IFRS 9 and IFRS 7 \u2013 Contracts Referencing Nature-dependent Electricity (issued on 18 December 2024) | NO | 1 January 2026 |
Amendments to IFRS 9 and IFRS 7 \u2013 Amendments to the Classification and Measurement of Financial Instruments (issued on 30 May 2024) | NO | 1 January 2026 |
The Group did not opt for early adoption of new standards, interpretations or amendments that have been issued but have not entered into force yet.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__20": { "value": "Principles and basis of consolidation
The Consolidated Financial Statements include the Financial Statements of the Parent, Brembo N.V., at 31 December 2024, and the Financial Statements of the companies controlled by Brembo N.V. pursuant to IFRS 10.
Control arises when the Group is exposed, or has rights, to variable returns from its involvement with the investee and at the same time has the ability to influence those returns through its power over the said investee.
Specifically, the Group controls an investee if, and only if, the Group has:
power over the investee (i.e., existing rights that give the current ability to direct the relevant activities of the investee);
exposure, or rights, to variable returns from its involvement with the investee;
the ability to exert its power over the investee to influence its returns.
It is generally presumed that the majority of voting rights confers control. In support of this assumption, where the Group holds less than the majority of voting rights (or similar rights), the Group considers all facts and circumstances relevant to determining whether it controls the investee, including the contractual agreements with the other vote-holders of the investee, rights arising from other contractual agreements and the Group\u2019s actual and potential voting rights. The Group reconsiders whether it controls an investee if the facts and circumstances indicate that there have been changes in one or more of the three factors relevant to determining control. A subsidiary begins to be consolidated when the Group obtains control of it and ceases to be consolidated when the Group loses control. The assets, liabilities, revenues and costs of a subsidiary acquired or disposed of during the year are included in the Consolidated Financial Statements from the date the Group obtains control until the date the Group no longer controls the company.
Income (loss) for the year and other comprehensive income components are allocated to the shareholders of the Parent and minority interests, even if this results in a negative balance for the minority interests. Where necessary, the appropriate adjustments are applied to the financial statements of subsidiaries, so as to ensure compliance with the Group\u2019s accounting policies. All intra-group assets and liabilities, equity, revenues, costs and cash flows relating to transactions between Group entities are completely eliminated during the consolidation process.
Changes in percent interests in a subsidiary that do not entail a loss of control are recognized at equity. If the Group loses control of a subsidiary, it eliminates the related
assets (including goodwill), liabilities, minority interests and other equity components, while any profit or loss is recognized in the Statement of Income. The residual interest, if any, is measured at fair value.
The following corporate transactions impacting the Group\u2019s consolidation area were performed in 2024:
in July 2024, a new entity named Brembo Australia Pty. Ltd., fully owned by Brembo N.V. was established. The company carries out marketing activities within the Australian market for the aftermarket only.
in August 2024, a new entity named Brembo France Sas, fully owned by Brembo N.V. was established. It deals with promoting the sale of car brake discs for the aftermarket only.
The list of consolidated subsidiaries, associates and joint ventures that are accounted for using the equity method, along with information regarding their registered offices and the percentage of share capital held, is included in the paragraph \u201cInformation About the Group\u201d of these Explanatory Notes.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__21": { "value": "Business combinations and goodwill
Business combinations (established after the date of transition to IFRS) are accounted for using the purchase accounting method envisaged by IFRS 3. The value of the entity included in the business combination is the sum of the fair value of the assets acquired and liabilities assumed, including contingent liabilities.
The cost of a business combination is identified as the fair value, at the date control is obtained, of the assets acquired, liabilities assumed and equity instruments issued for the purposes of the combination. That cost is then compared with the fair value of the identifiable assets, liabilities and contingent liabilities upon acquisition. Any positive difference between the cost of the acquisition and the Group\u2019s share of the fair value of the identifiable assets, liabilities and contingent liabilities upon acquisition is recognized as goodwill. Any negative differences are charged directly to the Statement of
Income. If the initial cost of a business combination can only be determined provisionally, adjustments to the initial provisional values must be made within twelve months of the acquisition date. Minority interests are recognized on the basis of the fair value of the net assets acquired. If a business combination involves more than one transaction, with successive share purchases, each transaction is treated separately using the cost of the transaction and fair value information on the assets, liabilities and contingent liabilities at the date of each transaction to determine the amount of any differences. When control of a company is obtained through a subsequent share purchase, the previously held interests are accounted for based on the fair value of identifiable assets, liabilities and contingent liabilities at the date control is acquired.
The acquiree measures contingent consideration at fair value at the acquisition date. The change in fair value of contingent consideration classified as an asset or liability, in that it is a financial instrument falling within the scope of IFRS 9, must be recognized in profit or loss or in Other Comprehensive Income. If the contingent consideration is not within the scope of IFRS 9, it is measured in accordance with the relevant IFRS. If the contingent consideration is classified as an equity instrument, its value is not remeasured and its subsequent settlement is recognized in equity.
Goodwill is initially recognized at cost, as the difference of the aggregate of the value of the consideration transferred and the amount attributed to minority interests compared to net identifiable assets acquired and liabilities assumed by the Group. If the consideration is lower than the fair value of net assets of the acquired subsidiary, the difference is recognized in profit or loss.
After initial recognition, goodwill is measured at cost less any impairment losses. For the purposes of impairment testing, goodwill acquired in a business combination is allocated from the acquisition date to each of the Group\u2019s cash-generating units that is expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquiree have been assigned to those units.
If goodwill has been allocated to a cash-generating unit and the entity disposes of an operation within that unit, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal. The goodwill associated with the operation disposed of is measured on the basis of the relative value of the operation disposed of and the portion of the cash-generating unit retained.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__22": { "value": "Equity Investments in Associates and Joint Ventures
An associate is a company over which the Group exercises significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, without exercising control or joint control over the investee.
A joint venture is a joint arrangement whereby the parties that have joint control have rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control, which exists only when decisions about the relevant activities require the unanimous consent of all parties sharing control.
Considerations used to determine significant influence or joint control are similar to those required to determine control of subsidiaries.
The Group\u2019s investments in associates and joint ventures are accounted for using the equity method. Under the equity method, an investment in an associate or a joint venture is initially recognized at cost. The carrying amount is increased or decreased to recognize the investor\u2019s share of the investee\u2019s profit or loss realized after the acquisition date. The goodwill related to the associate or joint venture is included in the carrying amount of the investment and is not tested separately for impairment.
The Statement of Income reflects the Group\u2019s share of the profits or losses of the associate or joint venture. All changes in Other Comprehensive Income relating to such investees have been presented in the Group\u2019s Statement of Comprehensive Income. In addition, when an associate
or a joint venture recognizes a change directly in equity, the Group recognizes its share of that change, where applicable, in its Statement of Changes in Equity. Unrealized gains and losses on transactions between the Group and associates or joint ventures are eliminated in proportion to the interest held in the associates or joint ventures.
The aggregate share of the net result of associates and joint ventures attributable to the Group is recognized in the Statement of Income and represents the income or loss after taxes and the amounts attributable to the other shareholders of the associate or joint venture.
The financial statements of associates and joint ventures are prepared at the same reporting date as the Group\u2019s Financial Statements. Where necessary, such financial statements are adjusted to bring them into line with the Group\u2019s accounting standards.
Once the equity method has been applied, at each reporting date the Group assesses whether there is objective evidence that the investments in the associates or joint ventures have become impaired. In such cases, the Group calculates the amount of the loss as the difference between the recoverable amount of the associate or joint venture and the carrying amount of the investment in its financial statements, and then accounts for that difference in the Statement of Income.
When significant influence over an associate or joint control of a joint venture is lost, the Group measures and recognizes the residual investment at fair value. The difference between the carrying amount of the investment at the date significant influence or joint control is lost and the fair value of the residual investment and consideration received is recognized in profit or loss.
Shareholdings in other companies
Shareholdings in other companies are classified and measured at fair values through other comprehensive income (OCI), as better described in the section \u201cFinancial Instruments \u2013 Financial Assets\u201d below.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__23": { "value": "Shareholdings in other companies
Shareholdings in other companies are classified and measured at fair values through other comprehensive income (OCI), as better described in the section \u201cFinancial Instruments \u2013 Financial Assets\u201d below.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__24": { "value": "Conversion of the Financial Statements of foreign companies
The financial statements of the Group companies included in the Consolidated Financial Statements are denominated in the currency used in the primary market in which they operate (functional currency). The Group\u2019s Consolidated Financial Statements are denominated in euro, which is the functional currency of the Parent Brembo N.V.
At year end, the assets and liabilities of subsidiaries, associates and joint ventures with a functional currency other than the euro are translated into the currency used to prepare the consolidated Group accounts at the exchange rate prevailing at that date. Statement of Income items are translated at the average exchange rate for the period (as it is considered to represent the average of the exchange rates prevailing on the dates of the individual transactions). The differences arising from the translation of initial equity at end-of-period exchange rates and the differences arising as a result of the different method used for translating the result for the period are recognized under a specific heading of equity. If consolidated foreign companies are subsequently sold, accumulated conversion differences are recognized in the Statement of Income.
The following table shows the exchange rates used in the translation of financial statements denominated in currencies other than the Group\u2019s functional currency (euro).
Euro against other currencies | Exchange rate 2024 | Average exchange rate 2024 | Trading price High for the period | Trading price Low for the period | Exchange rate 2023 | Average exchange rate 2023 | Trading price High for the period | Trading price Low for the period |
U.S. Dollar | 1.038900 | 1.082055 | 1.1196 | 1.0389 | 1.105000 | 1.081580 | 1.1255 | 1.0469 |
Japanese Yen | 163.060000 | 163.817355 | 175.3900 | 155.6600 | 156.330000 | 151.942108 | 164.0500 | 137.9300 |
Swedish Krona | 11.459000 | 11.430903 | 11.7740 | 11.1545 | 11.096000 | 11.472809 | 11.9872 | 11.0030 |
Danish Krone | 7.457800 | 7.458879 | 7.4628 | 7.4536 | 7.452900 | 7.450991 | 7.4648 | 7.4370 |
Polish Zloty | 4.275000 | 4.305748 | 4.3993 | 4.2483 | 4.339500 | 4.542063 | 4.7875 | 4.3090 |
Czech Koruna | 25.185000 | 25.118922 | 25.4600 | 24.4880 | 24.724000 | 24.000676 | 24.7240 | 23.2710 |
Mexican Peso | 21.550400 | 19.824911 | 22.2790 | 17.5982 | 18.723100 | 19.189748 | 20.8318 | 18.0507 |
Pound Sterling | 0.829180 | 0.846592 | 0.8665 | 0.8243 | 0.869050 | 0.869907 | 0.8934 | 0.8511 |
Brazilian Real | 6.425300 | 5.826786 | 6.5335 | 5.3069 | 5.361800 | 5.401616 | 5.7758 | 5.1860 |
Indian Rupee | 88.933500 | 90.530736 | 93.8130 | 87.9290 | 91.904500 | 89.324864 | 92.4490 | 86.4210 |
Chinese Renminbi | 7.583300 | 7.786260 | 7.9547 | 7.5458 | 7.850900 | 7.659070 | 8.1014 | 7.2045 |
Russian Rouble | 114.976500 | 100.176490 | 119.5058 | 89.7376 | 97.914300 | 92.146067 | 107.4191 | 72.5216 |
Swiss Franc | 0.941200 | 0.952603 | 0.9924 | 0.9267 | 0.926000 | 0.971730 | 1.0056 | 0.9260 |
Thai Baht | 35.676000 | 38.178502 | 39.9480 | 35.4890 | 37.973000 | 37.632835 | 39.0810 | 34.4550 |
Australian Dollar | 1.677200 | 1.639944 | 1.7008 | 1.6018 | 1.626300 | 1.628477 | 1.6999 | 1.5289 |
Transactions in currencies other than the functional currency
Transactions in currencies other than the functional currency are initially converted into the functional currency using the exchange rate prevailing at the date of the transaction. At the closing date of the accounting period, monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the exchange rate prevailing at that date. Exchange differences arising from such translation are recognized in the Statement of Income.
Non-monetary assets and liabilities denominated in currencies other than the functional currency that are carried at cost are translated using the exchange rate prevailing at the transaction date, while those carried at fair value are translated using the exchange rate prevailing on the date the fair value is determined.
Accounting Standards and Valuation Criteria
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__25": { "value": "Property, Plant, Equipment and right of use assets
Recognition and measurement
Property, plant, equipment and other equipment are recognized at cost, net of the related accumulated depreciation and any impairment loss. The cost includes the purchase or production price and direct costs incurred for bringing the asset to the location and in the conditions necessary for it to be capable of being operated; interest expense is also included, where applicable under IAS 23.
Subsequent to initial recognition, the asset continues to be carried at cost and depreciated based on its useful life net of any impairment in value, taking into account any residual value.
Land, including land linked to buildings, is recognized separately and is not depreciated since it is regarded as having an indefinite useful life.
Subsequent costs
Costs for improvements and transformations that increase the value of assets (i.e., they result in probable future economic rewards that can be reliably measured) are recognized in the assets section of the Statements of Financial Position as increases in the reference assets or as separate assets. Costs are recognized in the year in which they are incurred, where they relate to maintenance or repair and do not lead to any significant and measurable increase in productive capacity or in the useful life of the relevant asset.
Depreciation
Depreciation represents the economic and technical loss of value of the asset and is charged from when the asset is available for use; it is calculated using the straight-line method based on the rate considered representative of the estimated useful life of the asset.
The range of expected useful lives of property, plant and equipment used for calculating depreciation is reported below:
Category | Useful life |
Land | Indefinite |
Buildings | 10-35 years |
Plant and machinery | 5-20 years |
Industrial and commercial equipment | 2.5-10 years |
Other assets | 4-10 years |
The residual values, useful lives and depreciation methods applied to property, plant and equipment are reviewed at the end of each year and prospectively corrected, where appropriate. Useful lives are unchanged compared to the previous year.
Leases
IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases. It requires lessees to recognize all lease contracts in the financial statements on the basis of a single accounting model similar to that used to recognize finance leases that were governed by IAS 17. The lessee recognizes a liability for payments of rental fees specified in the lease contract and an asset representing the right to use the underlying asset for the period of the contract. Lessees must recognize separately the interest paid on the lease liability and depreciation of the right to use the asset. Lessees must also re-measure the lease liability when certain events happen (e.g., a change in lease contract conditions or a change in future lease payments caused by a change in an index or rate used to determine those payments). The lessee generally recognizes the re-measured amount of the lease liability as an adjustment to the right to use the asset. The Group determines the lease term as the non-cancellable portion of the lease, together with the periods covered by the option to extend the lease, where it is reasonably certain that this option will be exercised, as well as the periods covered by the lease break option, if it is reasonably certain that this option will not be exercised.
Leasehold improvements
Improvements to third-party assets that can be considered fixed assets are capitalized to the appropriate asset category and depreciated over the shorter of their useful life or the lease term.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__26": { "value": "Development Costs and Other Intangible Assets
The Company recognizes intangible assets when the following conditions are met:
the asset is identifiable, or separable, or can be separated or removed from the entity;
the asset is controlled by the Group, meaning that the company has the power to obtain future economic
rewards from the asset;
it is probable that the Group will enjoy future rewards attributable to the asset.
Intangible assets are initially measured at cost; subsequent to initial recognition, they are carried at cost less amortization, which is calculated using the straight-line method (beginning on the date the assets are available for use) over their useful lives, and net of any impairment losses, taking into account any residual value. The useful life of assets is reviewed periodically.
Intangible assets with indefinite useful lives principally consist of acquired trademarks which have no legal, regulatory, contractual, competitive, economic, or other factor that limits their useful life. Intangible assets with an indefinite useful life are not amortized but are tested for impairment annually or more frequently whenever there is an indication that the asset may be impaired.
An intangible asset generated in the development phase of an internal project is recognized as asset if the Group can demonstrate:
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
the intention to complete the intangible asset and the ability to use or sell it;
how the intangible asset will generate probable future economic rewards;
the availability of adequate resources to complete the asset;
the ability to measure reliably the expenditure attributable to the intangible asset during its development;
the ability to use the intangible asset generated.
Research costs are recognized in the Statement of Income. Similarly, in the case of externally acquired intangibles that qualify as research and development costs, only the costs attributable to the development phase are recognized as assets, provided that the above requirements are met.
Such costs are capitalized under \u201cDevelopment costs\u201d and
amortized only when the development phase is concluded and the asset developed generates economic rewards. In the period in which internal development costs that can be capitalized are incurred, these costs are excluded from the Statement of Income item \u201cIncrease on internal works capitalized\u201d and recognized in the item \u201cCosts for capitalized internal works\u201d.
The range of expected useful lives of intangible fixed assets used for calculating amortization is reported below:
Category | Useful life |
Development costs | 3-5 years |
Goodwill and other fixed assets with indefinite useful lives | Indefinite |
Industrial patents and similar rights | 5-10 years |
Other intangible assets | 3-5 years |
The residual values, useful lives and amortization methods applied to intangible assets are reviewed at the end of each year and prospectively corrected, where appropriate. Useful lives are unchanged compared to the previous year.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__27": { "value": "Impairment of Non-Financial Assets
Goodwill, intangible assets with an indefinite life and development costs underway are systematically tested for impairment at least once a year, and whenever there are any indications of impairment.
Property, plant and equipment, as well as intangible assets that are subject to depreciation and amortization are tested for impairment whenever indications of impairment arise.
Write-downs correspond to the difference between the carrying value and recoverable value of the assets in question. The recoverable value is the greater of the fair value of an asset or cash-generating unit less the costs of disposal and the value in use, determined as the present
value of estimated future cash flows. The value in use is defined as the cash flows expected to arise from the use of an asset, or the sum of the cash flows in the case of more cash-generating units. The expected future cash flows are measured using the unlevered discounted cash flows method and each group of assets is discounted to the present value using the WACC method (weighted average cost of capital). If the recoverable amount is less than the carrying amount, the carrying amount is reduced to the recoverable amount, and, as a general rule, the impairment loss is recorded in the Statement of Income. When the impairment loss of an asset (except for goodwill) is subsequently reversed, the carrying value of the asset (or cash-generating unit) is increased to the new estimate of recoverable value, without exceeding the value prior to write-down.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__28": { "value": "Inventories
Inventories of raw materials and finished products are stated at the lower of cost of acquisition or market value and the corresponding presumable net realisable value estimated from market trends.
The purchase cost includes costs incurred to bring each asset to the place it is stored. Manufacturing costs of finished products and semi-finished goods include direct costs and a portion of indirect costs that can be reasonably attributed to the products based on normal exploitation of the production capacity; interest expense is excluded. Work in progress is valued at production costs for the year, based on the progress report.
The cost of inventories of raw materials, finished goods, goods for resale and semi-finished products is calculated using the weighted mean cost method.
For raw materials, ancillaries and consumables, the presumable net realisable value corresponds to the replacement cost. For finished products and semi-finished goods, the presumable net realisable value corresponds to the estimated sales price in the ordinary course of business, less the estimated costs of completion and costs to sell.
Inventories that are obsolete or characterized by a long turnover period are written down on the basis of their
possible useful life or future realisable value, by creating a special provision for inventory adjustment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__29": { "value": "Cash and cash equivalents
Cash and cash equivalents include cash balances, unrestricted deposits and other treasury investments with original maturities of up to three months. A treasury investment is classified among cash and cash equivalents when it is instantly convertible to cash with minimal risk of any fluctuation in value and when it is intended to meet short-term cash requirements and is not held as an investment.
For purposes of the Statement of Cash Flows, cash balances are stated net of bank overdrafts at the end of the period.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__30": { "value": "Provisions
Provisions include certain or probable costs of a specific nature, the amount or settlement date of which could not be determined at year end. A provision is recognized when:
there is a present obligation (legal or constructive) as a result of a past event;
it is probable that an outflow of resources will be required to settle the obligation;
a reliable estimate can be made of the amount of the obligation.
Provisions are recognized at the present value of the expected expenditure required to settle the related obligation. Where the Group expects some or all of the expenditure required to settle a provision to be reimbursed, such as for the case of insured risks, the reimbursement is treated as a separate asset and is recognized when, and only when, it is virtually certain that the reimbursement will be received. In this case, the expense relating to the provision is presented in the Statement of Income net of the amount recognized for the reimbursement. Provisions are periodically updated
to reflect changes in cost estimates, timing and present value, if any; revisions to estimates of provisions are recognized under the same item of the Statement of Income under which the original provision was recognized and in the Statement of Income of the period in which the change is made. When provisions are discounted to present value, the change resulting from the passage of time or interest rate fluctuations is recognized under \u201cNet interest income (expense)\u201d.
Any provisions for restructuring costs are recognized when the company involved has approved a formal detailed plan and communicated it to affected parties.
A provision for costs arising from tax liabilities is recognized when the dispute to which the contingent liability refers is ongoing or likely.
Provisions for product warranty costs are recognized when products are sold. Initial recognition is based on historical experience, excluding exceptional events, for which a precise assessment is conducted. The initial estimate of the costs of warranty work is reviewed annually.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__31": { "value": "Employee Benefits
The difference between defined contribution plans, wholly unfunded defined benefit plans, wholly or partly funded defined benefit plans and other forms of long-term benefits is reported below.
Defined contribution plans
Defined contribution plans are post-employment benefit plans under which a company pays contributions to an insurance company or pension fund and has no legal or constructive obligation to pay further contributions if, when the benefit right matures, the fund does not have sufficient assets to pay all benefits relating to employee service in the current or prior periods.
These contributions, which are paid for the services rendered by employees, are recognized in the same accounting period in which the services are rendered.
Defined benefit plans and other long-term benefits
Defined benefit plans are post-employment benefit plans that entail a future obligation for the company. The company assumes actuarial and investment risks in relation to the plan.
To determine the present value of its obligations relating to such plans and the related service costs, the Group uses the \u201cProjected Unit Credit Method\u201d.
This actuarial calculation method requires the use of unbiased and mutually compatible actuarial assumptions about demographic variables (mortality rate and employee turnover rate) and financial variables (discount rates and future increases in salary and benefits). When a defined benefit plan is wholly or partly funded by contributions paid either into a fund that is legally separate from the company or to an insurance company, any plan assets are measured at fair value. The obligation is therefore stated net of the fair value of the plan assets that will be used to directly meet such obligation.
Remeasurements, which include actuarial gains and losses, any changes in the effect of the assets ceiling (excluding net interest) and return on plan assets (excluding net interest) are recognized immediately in the Statement of Financial Position, debiting or crediting retained earnings through Other Comprehensive Income in the period in which they occur. Remeasurements are not reclassified through profit or loss in the following years.
Other long-term benefits refer to employee benefits other than post-employment benefits. They are accounted for in the same manner as defined benefit plans.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__32": { "value": "Own Shares
Own shares bought back are recognized at cost and are deducted from equity. No gain or loss is recognized in the Statement of Income on the purchase, sale, or cancellation of the company\u2019s own shares. The difference between the carrying amount and the consideration, in case of reissue, is recognized in the share premium reserve.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__33": { "value": "Government grants
Government grants are recognized at fair value, when there is reasonable assurance that all necessary conditions attached to them have been satisfied and the grants will be received.
Grants received in recognition of specific expenses are recognized as liabilities and credited to the Statement of Income on a systematic basis over the periods necessary to match the grant income with the related expenditure. Grants received for defined assets that are recognized as fixed assets are accounted for as non-current liabilities and credited to the Statement of Income in relation to the period in which depreciation or amortization is charged for the relevant assets.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__34": { "value": "Fair Value Measurement
The Group measures financial instruments, such as derivatives, at fair value at the end of each financial period. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Fair value measurement assumes a sale of the asset or transfer of the liability taking place:
in the principal market for the asset or liability; or
in the absence of a principal market, the most advantageous market for the asset or liability.
The principal or most advantageous market must be accessible to the Group.
Fair value measurement takes into account the characteristics of the asset or liability being measured that market participants would consider when pricing the asset or liability, assuming that market participants act with the aim of best satisfying their economic interest. A fair value measurement of a non-financial asset takes into account a market participant\u2019s ability to generate economic rewards by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.
The Group uses valuation techniques appropriate to the circumstances and for which sufficient data for fair value measurement are available, thus maximising the use of significant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities, the fair value of which has been measured or recognized in the financial statements, are categorized based on the fair value hierarchy, as described below:
Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 - inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;
Level 3 - measurement techniques whereby inputs are unobservable inputs for the asset or liability.
The fair value measurement is categorized in its entirety in the hierarchy level of the lowest level input that has been used for the measurement.
For assets and liabilities that are measured at fair value on a recurring basis, the Group determines whether shifts have occurred between hierarchy levels and revises the categorization (based on the lowest level input that is significant to the entire fair value measurement) at the end of each financial period.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__35": { "value": "Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets
Financial assets are initially recognized at their fair value, plus ancillary costs. Upon initial recognition, financial assets are classified, depending on their nature,
in the following categories: financial assets measured at fair value through profit or loss or through other comprehensive income (OCI), loans, receivables and financial assets available for sale.
Loans and receivables (the category of greatest significance for the Group) are non-derivative financial assets, with fixed or determinable payments, that are not quoted in an active market. After initial recognition, such financial assets are measured at amortized cost, using the effective interest rate method, less impairment losses. Amortized cost is calculated by including any discounts, premiums or fees and/or costs, which are an integral part of the effective interest rate. The effective interest rate is recognized as interest income in the Statement of Income. Impairment losses are recognized in the Statement of Income as interest expense. This category normally includes trade and other receivables.
When accounting for financial assets measured at amortized cost, the Group first assesses whether impairment exists for each financial asset that is individually significant, and collectively for financial assets that are not individually significant. The carrying amount of an asset is reduced by recognising a write-down provision, and the amount of the loss is recognized in the Statement of Income. Loans and the associated write-down provisions are derecognized when there is no realistic prospect that they may be recovered in future and the guarantees have been enforced or transferred to the Group. If, in a subsequent year, the amount of an estimated impairment loss increases or decreases because of an event occurring after the impairment is recognized, the previously recognized impairment loss is increased or decreased by adjusting the provision.
Financial assets are classified and measured at fair values through OCI when they are held in a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. Upon the initial recognition of investments in equity instruments, the Group may irrevocably elect to classify its investments as equity instruments measured at fair value through OCI where they meet the definition of an equity instrument pursuant to IAS 32 \u2013 Financial Instruments: Presentation
and are not held for trading. The classification is determined for each instrument. Gains and losses on such financial assets are never transferred to profit or loss. Dividends are recognized as other income in profit or loss when entitlement to payment is approved, unless the Group benefits from such income as a recovery of part of the cost of the financial asset, in which case the profits are taken to OCI. Equity instruments measured at fair value through OCI are not tested for impairment.
Financial assets are derecognized from the financial statements when the right to receive cash flows ceases, the Group transfers the right to receive cash flows from the asset to a third party, or the Group assumes a contractual obligation to pay them in full and without delay, and (1) it has transferred substantially all of the risks and rewards of ownership of the financial asset, or (2) it has neither transferred nor retained substantially all of the risks and rewards of the asset, but has transferred control of the asset.
Where the Group has transferred the rights to receive the cash flows from an asset, or has entered into a contractual arrangement whereby it retains its contractual right to receive the cash flows from the asset, but assumes a contractual obligation to pay cash flows to one or more beneficiaries (pass-through arrangement), it evaluates the extent to which it has retained the risks and rewards of ownership.
Financial liabilities
Upon initial recognition, financial liabilities are classified among financial liabilities at fair value through profit or loss, loans and financing or derivatives designated as hedging instruments. All financial liabilities are initially recognized at fair value, in addition to directly attributable transaction costs in the case of loans, financing and payables. The Group\u2019s financial liabilities extend to trade payables and other payables, loans and financing, including account overdrafts, guarantees issued and derivative financial instruments, as well as lease liabilities.
Loans and payables (the category of greatest significance for the Group) are measured at amortized cost using the effective interest rate method. Gains and losses are
recognized in the Statement of Income when the liability is extinguished, as well as through the amortization process.
Amortized cost is calculated by including the discount or premium of the acquisition, as well as costs and fees, which are an integral part of the effective interest rate. Amortization at the effective interest rate is gradually recognized to profit or loss over the life of the loan.
Financial guarantees issued are contracts that require a payment to reimburse the holder of a debt instrument for a loss incurred by the holder due to default by the debtor on payment at the contractual due date. When the Group issues financial guarantees, the financial guarantee contracts are initially recognized as liabilities at fair value, plus the transaction costs directly attributable to issuing the guarantee. The liability is then measured at the greater of the best estimate of the outlay required to meet the guaranteed obligation at the reporting date and the initially recognized amount, less cumulative amortization.
A financial liability is derecognized when the obligation underlying the liability is extinguished, cancelled or discharged. Where one existing financial liability is replaced by another attributable to the same borrower with substantially different conditions, or the conditions of an existing liability are substantially modified, such exchange or modification is accounted for by derecognising the original liability and recognising a new liability, with any differences between carrying amounts recognized in the Statement of Income.
Offsetting of financial instruments
A financial asset and a financial liability may be set off against one another, and the net balance presented in the Statement of Financial Position, if there is a legally enforceable right to set off the recognized amounts and the entity intends either to settle on a net basis or realize the asset and settle the liability simultaneously.
Loans, payables and other financial and/or trade liabilities with a fixed or determinable maturity are initially recognized at fair value, net of the transaction costs. After initial recognition, these payables are evaluated using the
criterion of amortized cost at the effective interest rate.
Long-term debts for which an interest rate is not specified are recognized by discounting future cash flows at market rate, if the increase in payables arises from the passage of time, with subsequent recognition of interest through profit or loss, in item \u201cNet interest income (expense)\u201d.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__36": { "value": "Derivatives
Derivatives, including embedded derivatives separated from their host contracts, are initially recognized at fair value.
Derivatives are classified as hedging instruments when the relationship between the derivative and the object of the hedge is formally documented and the degree of coverage, which is periodically checked, is high.
When hedging derivatives hedge the risk of changes in the fair values of the hedged instruments, they are recognized at fair value through profit or loss. Accordingly, the hedged instruments are adjusted to reflect changes in fair value associated with the hedged risk.
When derivatives hedge the risk of changes in the cash flows of the hedged instruments (cash flow hedges), the hedges are designated on the basis of the exposure to changes in cash flows attributable to risks that may influence profit or loss at a later date. Such risks are generally associated with a recognized asset or liability (such as future payments of variable-rate debt).
The effective portion of the change in the fair value of the part of derivative contracts designated as hedges in accordance with the requirements of IFRS 9 is recognized in the Statement of Comprehensive Income (hedging reserve). That reserve is then released to the profit or loss when the hedged transaction is recognized in the Statement of Income.
The ineffective portion of the change in fair value, along with the entire change in the fair value of derivatives not designated as hedges or that do not meet the requirements presented in IFRS 9, is recognized directly in profit or loss.
The current and non-current classification of active and passive derivative instruments is carried out considering
the maturity of the future financial flows of the derivatives.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__37": { "value": "Revenue from Contracts with Customers, Other Revenues and Income
Revenue from contracts with customers is recognized in the Statement of Income for an amount that reflects the consideration to which the entity claims entitlement in exchange for transferring the control of the goods or services to the customer.
Revenues are recognized net of sales returns, discounts, allowances and taxes that are directly associated with the sale of the product or provision of the service.
Sales of goods and services are recognized at the fair value of the consideration received when the following conditions are met:
the control associated with ownership of the good is transferred;
the revenue amount can be measured reliably;
it is probable that the economic rewards arising from the sale will flow to the Company;
the costs incurred or that will be incurred can be measured reliably.
The sale of the brake system is the sole obligation (\u201cat a point in time\u201d), since revenue will be recognized when control of the asset is transferred to the customer, which generally coincides with the moment of delivery. The price, which refers to the sole Performance Obligation identified, resulting from market value and negotiations between the parties. Revenues are recognized net of sales returns, discounts, allowances and taxes that are directly associated with the sale of the product or provision of the service.
The Group supplies equipment sold separately from the brake systems. The equipment sold becomes the full property of the customer and does not have an alternative use, i.e. there are practical limitations \u2014 unique design
specifications for the customer \u2014 that prevent the entity from easily directing the asset to another use in its complete form. There is thus a single performance obligation in the contract whose price coincides with the price of the order and that is satisfied when the customer obtains control of the asset.
The Group recognizes revenue for carrying out development activities of specific brake systems requested by its customers. If the services rendered by the Group regard primary product development and Brembo keep the ownership of the development, the related revenue is suspended from Statement of income, and a \u201cContract liability\u201d is booked, until the development process is completed; then, the revenue is recognized in the Statement of income over the useful life of the product to which the development activity is related (the time horizon is estimated, on average, of five years). On the other hand, if the ownership of the development is sold to the customer, the revenue is recognized when the control (along with the risks/rewards) is transferred to the customer, i.e., upon invoicing to the customer.
Paragraph 15.B63 identifies the exceptions to the recognition of revenue over time. These exceptions are royalties and sales-based royalties. The exception applies to royalties collected for the licensing of Brembo\u2019s trademark and technology. The proceeds are to be accounted for as revenue at a point in time and thus to be taken to the statement of income in full when they are received. The entity only recognizes revenue from sales-based royalties when the subsequent sale occurs, i.e. when the article produced using the trademark or technology to which the royalties refer is then sold, consequently, the revenue is accounted for in accordance with the principle of economic competence.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__38": { "value": "Interest Income (Expense)
Interest income/expense is recognized after being measured on an accrual basis.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__39": { "value": "Income Taxes
Current tax assets and liabilities are measured as the amount that is expected to be recovered from or paid to the taxation authorities. The tax rates and laws used to calculate that amount are those enacted, or substantially enacted, at the reporting date in the countries in which the Group operates and generates its taxable income. Management periodically assesses the position assumed in the income tax return, where tax laws are subject to interpretation, and recognizes provisions, where appropriate.
Any differences between the calculation of taxes in the financial statements and income tax returns or amounts paid or provisioned for direct income tax disputes are presented under the item \u201cPrior years\u2019 taxes and other tax payables\u201d.
Deferred tax assets and liabilities are recognized in order to reflect the temporary differences between the value attributed to an asset/liability for tax purposes and that attributed based on the accounting standards applied at the reporting date. They are measured using the tax rates that are expected to apply in the year when the assets will be realized or the liabilities will be settled, based on tax rates in force or those already enacted or substantially enacted at the reporting date.
Deferred tax assets are recognized for all deductible temporary differences, unused tax credits and unused tax losses eligible to be carried forward, to the extent it is probable that sufficient future taxable income will be available to permit the use of the deductible temporary differences, unused tax credits and unused tax losses carried forward, except for the cases in which:
the deferred tax asset related to the deductible temporary differences arises from initial recognition of an asset or liability in a transaction other than a business combination that does not affect accounting or taxable income at the time of the transaction;
there are deductible temporary differences related to equity investments in subsidiaries, associates and joint ventures. In this case deferred tax assets are recognized
solely to the extent it is probable that they will be reversed in the foreseeable future and there will be sufficient taxable income to permit such temporary differences to be recovered.
The carrying amounts of deferred tax assets are reviewed at each reporting date and reduced to the extent it is no longer probable that there will be sufficient future taxable income to permit all or part of the credit concerned to be used. Unrecognized deferred tax assets are reviewed at each reporting date and are recognized to the extent it has become probable that taxable income will be sufficient to permit such deferred tax assets to be recovered.
Deferred tax liabilities are recognized on all taxable temporary differences, with the following exceptions:
the deferred tax liabilities arise from the initial recognition of goodwill or an asset or liability in a transaction other than a business combination that does not affect accounting or taxable income at the time of the transaction;
reversal of the taxable temporary differences related to equity investments in subsidiaries, associates and joint ventures may be controlled, and it is probable that it will not occur in the foreseeable future.
Tax balances (current and deferred) attributable to amounts recognized directly in equity are also recognized directly in equity.
Current and deferred tax assets and liabilities are offset only when the legal right of offset exists; such amounts are recognized as receivables or payables in the Statement of Financial Position.
The Company has monitored, and continues to monitor, the implementation of the OECD Pillar II in all countries in which the Group operates. Considering the analyses conducted for 2024, the Company has not identified any potential impacts arising from the Global Minimum Tax.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__40": { "value": "Dividends
Dividends are recognized when the shareholders\u2019 right to receive payment is established under local law.
The Parent recognizes a liability to account for the distribution to its shareholders of cash or non-cash assets once the distribution has been appropriately authorized and is no longer at the Company\u2019s discretion. Under current Italian company law, a distribution is authorized when it has been approved by the shareholders. The corresponding amount is recognized directly in equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__41": { "value": "Non-Current Assets Held for Sale and Discontinued Operations
The Group classifies non-current assets and disposal groups as held for sale if their carrying amount will be recovered primarily through sale rather than through continuing use. Such non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value net of costs to sell. Costs to sell are incremental costs directly attributable to disposal, excluding interest expense and taxes. The conditions for classification as held for sale are only considered to be met when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. The actions required to complete the disposal should indicate that it is unlikely that significant changes to the disposal will be made or that the disposal will be withdrawn. Management must be committed to the disposal, the completion of which must be expected to occur within one year of the classification date. Depreciation of property, plant and equipment and amortization of intangible assets cease when such assets are classified as available for sale. Assets and liabilities classified as held for sale are recognized separately among the current items of the financial statements. Assets held for sale are excluded from result from continuing operations and are presented through profit or loss for the year in a single item as \u201cNet income/(loss) from assets held for sale\u201d.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__42": { "value": "Financial Risk Management
The Brembo Group is exposed to market, commodity, liquidity and credit risks, all of which are tied to the use of financial instruments.
Financial risk management is the responsibility of the central Treasury & Credit Department of Brembo N.V., which, together with the Group Finance Department, evaluates the main financial transactions and related hedging policies.
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices resulting from shifts in exchange rates, interest rates and equity security prices.
Interest Rate Risk
Interest rate risk applies to variable-rate financial instruments recognized in the Statement of Financial Position (particularly short-term bank loans, other loans, leases, bonds, etc.) that are not hedged by other financial instruments.
In order to fix the financial burden relating to a part of its debt, Brembo has mainly entered into fixed-rate financing contracts and interest rate swaps. However, the Company continues to be exposed to interest-rate risk due to the fluctuation of variable rates.
A sensitivity analysis was performed to analyse the effects of a change in interest rates of +/-50 basis points compared to the rates at 31 December 2024 and 31 December 2023, with other variables held constant. The potential impacts were calculated on the variable-rate financial liabilities at 31 December 2024. The aforementioned change in interest rates would result in a higher (or lower) annual net pre-tax expense of approximately \u20ac1,660 thousand (\u20ac1,463 thousand at 31 December 2023), gross of the tax effect.
The average weekly gross financial debt was used to
provide the most reliable information possible.
Exchange Rate Risk
Brembo deals in international markets with currencies other than the euro and is therefore exposed to exchange rate risk.
To mitigate this risk, Brembo uses natural hedging (offsetting receivables and payables) and hedges only net positions in foreign currency, using mostly short-term financing denominated in the currency to be hedged, in order to offset any unbalances; currency forward contracts
are also used to hedge this risk category.
A sensitivity analysis is provided below to illustrate the effects on pre-tax result arising on a positive (negative) change in exchange rates.
Starting with the exposures at 31 December 2024 and 2023, a change calculated as the standard deviation of the exchange rate with respect to the average exchange rate was applied to the average exchange rates for 2024 and 2023 to measure exchange rate volatility.
Euro against other currencies | Change % | Effect of exchange rate increase | Effect of exchange rate decrease | Change % | Effect of exchange rate increase | Effect of exchange rate decrease |
EUR/CNY | 1.09% | 19.6 | (20.0) | 2.88% | (388.3) | 411.3 |
EUR/GBP | 1.23% | 6.7 | (6.9) | 1.23% | (7.5) | 7.6 |
EUR/JPY | 2.63% | (61.3) | 64.6 | 4.75% | 100.2 | (110.2) |
EUR/PLN | 0.76% | 16.3 | (16.5) | 2.81% | (27.9) | 29.5 |
EUR/SEK | 1.32% | 10.0 | (10.3) | 2.29% | 7.2 | (7.5) |
EUR/USD | 1.60% | (318.3) | 328.6 | 1.52% | (199.7) | 205.8 |
EUR/CZK | 0.94% | (48.7) | 49.7 | 1.63% | (0.6) | 0.7 |
EUR/CHF | 1.84% | (8.6) | 8.9 | 1.70% | (8.2) | 8.5 |
EUR/RUB | 4.28% | 0.0 | 0.0 | 23.11% | 121.8 | (195.1) |
EUR/DKK | 0.03% | 0.0 | 0.0 | 0.09% | (7.0) | 7.0 |
PLN/CNY | 1.46% | 3.6 | (3.7) | 5.38% | 17.0 | (18.9) |
PLN/EUR | 0.76% | (253.3) | 257.1 | 2.80% | (1.664.3) | 1.760.3 |
PLN/GBP | 1.27% | 0.2 | (0.2) | 2.12% | 0.0 | 0.0 |
PLN/USD | 1.84% | (13.7) | 14.2 | 3.66% | (35.4) | 38.1 |
PLN/CZK | 1.30% | 0.0 | 0.0 | 3.86% | 2.1 | (2.2) |
PLN/CHF | 2.21% | 7.1 | (7.4) | 1.85% | 4.8 | (5.0) |
GBP/EUR | 1.24% | 3.6 | (3.7) | 1.23% | 13.5 | (13.9) |
GBP/USD | 1.71% | 3.5 | (3.6) | 2.14% | 2.9 | (3.0) |
GBP/AUD | 1.39% | 0.0 | 0.0 | 3.46% | (0.9) | 1.0 |
USD/CNY | 0.95% | 11.3 | (11.5) | 2.64% | (19.4) | 20.5 |
USD/EUR | 1.61% | 246.6 | (254.7) | 1.52% | (54.2) | 55.9 |
USD/MXN | 7.50% | 913.0 | (1.061.2) | 3.90% | 161.4 | (174.5) |
BRL/EUR | 6.25% | 32.8 | (37.2) | 2.40% | 13.0 | (13.6) |
Euro against other currencies | Change % | Effect of exchange rate increase | Effect of exchange rate decrease | Change % | Effect of exchange rate increase | Effect of exchange rate decrease |
BRL/USD | 6.56% | 0.0 | 0.0 | 2.92% | 4.3 | (4.6) |
JPY/EUR | 2.59% | 15.6 | (16.4) | 4.84% | 23.3 | (25.7) |
JPY/USD | 3.31% | 2.5 | (2.7) | 4.89% | 3.7 | (4.0) |
CNY/EUR | 1.09% | 44.3 | (45.3) | 2.92% | (14.6) | 15.5 |
CNY/JPY | 2.64% | 0.1 | (0.1) | 2.51% | 2.6 | (2.7) |
CNY/USD | 0.96% | (109.7) | 111.9 | 2.67% | (189.1) | 199.4 |
INR/EUR | 1.44% | (12.5) | 12.9 | 1.38% | 7.4 | (7.6) |
INR/JPY | 3.30% | 36.5 | (39.0) | 4.37% | 24.9 | (27.2) |
INR/USD | 0.68% | 3.0 | (3.1) | 0.69% | 7.9 | (8.0) |
CZK/EUR | 0.95% | 642.1 | (654.3) | 1.63% | 462.3 | (477.6) |
CZK/GBP | 1.77% | 0.5 | (0.5) | 2.37% | 0.8 | (0.8) |
CZK/PLN | 1.32% | 7.2 | (7.4) | 3.84% | 14.1 | (15.3) |
CZK/USD | 1.95% | (26.9) | 28.0 | 2.54% | (2.9) | 3.1 |
DKK/EUR | 0.03% | 0.1 | (0.1) | 0.09% | 3.8 | (3.8) |
DKK/JPY | 2.62% | (0.1) | 0.1 | 4.69% | (0.1) | 0.1 |
DKK/USD | 1.60% | (0.3) | 0.3 | 1.53% | (0.1) | 0.1 |
Commodity Risk
The Group is exposed to changes in prices of main raw materials and commodities. It bears recalling that fixed prices are set in supply contracts with certain commodities suppliers for a given period of time and that the contracts in place with the main customers also provide for automatic periodic indexing on the basis of commodities prices; both these approaches thus mitigate the risk of fluctuations in commodities prices. When it was not possible to take these mitigating measures, derivatives hedging the risk of fluctuations in commodities prices have been implemented, in particular for a little portion of purchases of Brembo Poland Spolka Zo.o.\u2019s exposure to the risk of fluctuation in the price of electricity through a through PPAs (Power Purchase Agreement \u2013 Virtual and Physical) derivatives.
Liquidity Risk
Liquidity risk can arise from the inability to obtain the financial resources necessary to guarantee Brembo\u2019s operation.
To mitigate liquidity risk, the Treasury & Credit area:
constantly assesses financial requirements to ensure the appropriate measures are taken in a timely manner (obtaining additional credit lines, capital increases, etc.);
obtains adequate credit lines;
ensures the appropriate composition of net financial debt, i.e., investments are financed with medium-to-long-term debt (as well as with equity), and net working capital requirements are financed using short-term credit lines;
includes the Group companies in cash pooling structures to optimize any excess liquidity of participating companies.
The following table provides information on payables, other payables and derivatives broken down by maturity. The maturities are determined based on the period from the reporting date to the expiry of the contractual
obligations. The amounts shown in the table reflect undiscounted cash flows and the fair value of existing derivative liabilities.
(euro thousand) | Carrying value | Contractual cash flow | Within 1 year | From 1 to 5 years | Beyond 5 years |
Non-derivative financial liabilities: | |||||
Short-term credit lines and bank overdrafts | 261,621 | 261,621 | 261,621 | 0 | 0 |
Payables to banks (loans and bonds) | 737,909 | 796,142 | 182,414 | 602,449 | 11,279 |
Payables to other financial institutions | 700 | 703 | 548 | 155 | 0 |
Lease liabilities | 238,492 | 238,492 | 93,346 | 57,289 | 87,857 |
Trade and other payables | 864,150 | 864,150 | 864,150 | 0 | 0 |
Derivative financial liabilities: | |||||
Derivatives | 4,181 | 4,181 | 1,909 | 2,518 | (246) |
Total | 2,107,053 | 2,165,289 | 1,403,988 | 662,411 | 98,890 |
For fixed- and variable-rate financial liabilities, both principal and interest were considered for the different maturity periods; for variable-rate liabilities, the rate at 31 December 2024 plus the relevant spread was used.
Some of the Group\u2019s loan agreements require the satisfaction of financial covenants and the obligation for the Group to meet certain financial ratio levels.
In detail, the following covenants and relevant maximum thresholds are to be complied with:
Net financial debt/Gross operating income not exceeding 4.5.
If the covenants are not met, the financial institutions can request early repayment of the relevant loan.
The values of these covenants are monitored at the end of each quarter, and at 31 December 2024 the Group had complied with the covenants in question by a considerable margin.
Management believes that currently available lines of credit, apart from the cash flow generated by operating activities will allow Brembo to meet its financial
requirements arising from investing activities, working capital management, and the payment of payables at their natural maturities.
In further detail, at 31 December 2024, unused bank credit facilities accounted for 69% of the total (credit facilities totalled \u20ac838.3 million).
Credit Risk
Credit risk is the risk that a customer or one of the parties to a financial instrument will cause a financial loss by failing to perform an obligation. Exposure to credit risk for the Group arises mainly in relation to trade receivables. Most parties with which the Group does business are leading car and motorbike manufacturers with high credit standings.
The Group evaluates the creditworthiness of all new customers using assessments from external sources and then assigns a credit limit.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__43": { "value": "Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices resulting from shifts in exchange rates, interest rates and equity security prices.
Interest Rate Risk
Interest rate risk applies to variable-rate financial instruments recognized in the Statement of Financial Position (particularly short-term bank loans, other loans, leases, bonds, etc.) that are not hedged by other financial instruments.
In order to fix the financial burden relating to a part of its debt, Brembo has mainly entered into fixed-rate financing contracts and interest rate swaps. However, the Company continues to be exposed to interest-rate risk due to the fluctuation of variable rates.
A sensitivity analysis was performed to analyse the effects of a change in interest rates of +/-50 basis points compared to the rates at 31 December 2024 and 31 December 2023, with other variables held constant. The potential impacts were calculated on the variable-rate financial liabilities at 31 December 2024. The aforementioned change in interest rates would result in a higher (or lower) annual net pre-tax expense of approximately \u20ac1,660 thousand (\u20ac1,463 thousand at 31 December 2023), gross of the tax effect.
The average weekly gross financial debt was used to
provide the most reliable information possible.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__44": { "value": "Exchange Rate Risk
Brembo deals in international markets with currencies other than the euro and is therefore exposed to exchange rate risk.
To mitigate this risk, Brembo uses natural hedging (offsetting receivables and payables) and hedges only net positions in foreign currency, using mostly short-term financing denominated in the currency to be hedged, in order to offset any unbalances; currency forward contracts
are also used to hedge this risk category.
A sensitivity analysis is provided below to illustrate the effects on pre-tax result arising on a positive (negative) change in exchange rates.
Starting with the exposures at 31 December 2024 and 2023, a change calculated as the standard deviation of the exchange rate with respect to the average exchange rate was applied to the average exchange rates for 2024 and 2023 to measure exchange rate volatility.
Euro against other currencies | Change % | Effect of exchange rate increase | Effect of exchange rate decrease | Change % | Effect of exchange rate increase | Effect of exchange rate decrease |
EUR/CNY | 1.09% | 19.6 | (20.0) | 2.88% | (388.3) | 411.3 |
EUR/GBP | 1.23% | 6.7 | (6.9) | 1.23% | (7.5) | 7.6 |
EUR/JPY | 2.63% | (61.3) | 64.6 | 4.75% | 100.2 | (110.2) |
EUR/PLN | 0.76% | 16.3 | (16.5) | 2.81% | (27.9) | 29.5 |
EUR/SEK | 1.32% | 10.0 | (10.3) | 2.29% | 7.2 | (7.5) |
EUR/USD | 1.60% | (318.3) | 328.6 | 1.52% | (199.7) | 205.8 |
EUR/CZK | 0.94% | (48.7) | 49.7 | 1.63% | (0.6) | 0.7 |
EUR/CHF | 1.84% | (8.6) | 8.9 | 1.70% | (8.2) | 8.5 |
EUR/RUB | 4.28% | 0.0 | 0.0 | 23.11% | 121.8 | (195.1) |
EUR/DKK | 0.03% | 0.0 | 0.0 | 0.09% | (7.0) | 7.0 |
PLN/CNY | 1.46% | 3.6 | (3.7) | 5.38% | 17.0 | (18.9) |
PLN/EUR | 0.76% | (253.3) | 257.1 | 2.80% | (1.664.3) | 1.760.3 |
PLN/GBP | 1.27% | 0.2 | (0.2) | 2.12% | 0.0 | 0.0 |
PLN/USD | 1.84% | (13.7) | 14.2 | 3.66% | (35.4) | 38.1 |
PLN/CZK | 1.30% | 0.0 | 0.0 | 3.86% | 2.1 | (2.2) |
PLN/CHF | 2.21% | 7.1 | (7.4) | 1.85% | 4.8 | (5.0) |
GBP/EUR | 1.24% | 3.6 | (3.7) | 1.23% | 13.5 | (13.9) |
GBP/USD | 1.71% | 3.5 | (3.6) | 2.14% | 2.9 | (3.0) |
GBP/AUD | 1.39% | 0.0 | 0.0 | 3.46% | (0.9) | 1.0 |
USD/CNY | 0.95% | 11.3 | (11.5) | 2.64% | (19.4) | 20.5 |
USD/EUR | 1.61% | 246.6 | (254.7) | 1.52% | (54.2) | 55.9 |
USD/MXN | 7.50% | 913.0 | (1.061.2) | 3.90% | 161.4 | (174.5) |
BRL/EUR | 6.25% | 32.8 | (37.2) | 2.40% | 13.0 | (13.6) |
Euro against other currencies | Change % | Effect of exchange rate increase | Effect of exchange rate decrease | Change % | Effect of exchange rate increase | Effect of exchange rate decrease |
BRL/USD | 6.56% | 0.0 | 0.0 | 2.92% | 4.3 | (4.6) |
JPY/EUR | 2.59% | 15.6 | (16.4) | 4.84% | 23.3 | (25.7) |
JPY/USD | 3.31% | 2.5 | (2.7) | 4.89% | 3.7 | (4.0) |
CNY/EUR | 1.09% | 44.3 | (45.3) | 2.92% | (14.6) | 15.5 |
CNY/JPY | 2.64% | 0.1 | (0.1) | 2.51% | 2.6 | (2.7) |
CNY/USD | 0.96% | (109.7) | 111.9 | 2.67% | (189.1) | 199.4 |
INR/EUR | 1.44% | (12.5) | 12.9 | 1.38% | 7.4 | (7.6) |
INR/JPY | 3.30% | 36.5 | (39.0) | 4.37% | 24.9 | (27.2) |
INR/USD | 0.68% | 3.0 | (3.1) | 0.69% | 7.9 | (8.0) |
CZK/EUR | 0.95% | 642.1 | (654.3) | 1.63% | 462.3 | (477.6) |
CZK/GBP | 1.77% | 0.5 | (0.5) | 2.37% | 0.8 | (0.8) |
CZK/PLN | 1.32% | 7.2 | (7.4) | 3.84% | 14.1 | (15.3) |
CZK/USD | 1.95% | (26.9) | 28.0 | 2.54% | (2.9) | 3.1 |
DKK/EUR | 0.03% | 0.1 | (0.1) | 0.09% | 3.8 | (3.8) |
DKK/JPY | 2.62% | (0.1) | 0.1 | 4.69% | (0.1) | 0.1 |
DKK/USD | 1.60% | (0.3) | 0.3 | 1.53% | (0.1) | 0.1 |
Commodity Risk
The Group is exposed to changes in prices of main raw materials and commodities. It bears recalling that fixed prices are set in supply contracts with certain commodities suppliers for a given period of time and that the contracts in place with the main customers also provide for automatic periodic indexing on the basis of commodities prices; both these approaches thus mitigate the risk of fluctuations in commodities prices. When it was not possible to take these mitigating measures, derivatives hedging the risk of fluctuations in commodities prices have been implemented, in particular for a little portion of purchases of Brembo Poland Spolka Zo.o.\u2019s exposure to the risk of fluctuation in the price of electricity through a through PPAs (Power Purchase Agreement \u2013 Virtual and Physical) derivatives.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__45": { "value": "Liquidity Risk
Liquidity risk can arise from the inability to obtain the financial resources necessary to guarantee Brembo\u2019s operation.
To mitigate liquidity risk, the Treasury & Credit area:
constantly assesses financial requirements to ensure the appropriate measures are taken in a timely manner (obtaining additional credit lines, capital increases, etc.);
obtains adequate credit lines;
ensures the appropriate composition of net financial debt, i.e., investments are financed with medium-to-long-term debt (as well as with equity), and net working capital requirements are financed using short-term credit lines;
includes the Group companies in cash pooling structures to optimize any excess liquidity of participating companies.
The following table provides information on payables, other payables and derivatives broken down by maturity. The maturities are determined based on the period from the reporting date to the expiry of the contractual
obligations. The amounts shown in the table reflect undiscounted cash flows and the fair value of existing derivative liabilities.
(euro thousand) | Carrying value | Contractual cash flow | Within 1 year | From 1 to 5 years | Beyond 5 years |
Non-derivative financial liabilities: | |||||
Short-term credit lines and bank overdrafts | 261,621 | 261,621 | 261,621 | 0 | 0 |
Payables to banks (loans and bonds) | 737,909 | 796,142 | 182,414 | 602,449 | 11,279 |
Payables to other financial institutions | 700 | 703 | 548 | 155 | 0 |
Lease liabilities | 238,492 | 238,492 | 93,346 | 57,289 | 87,857 |
Trade and other payables | 864,150 | 864,150 | 864,150 | 0 | 0 |
Derivative financial liabilities: | |||||
Derivatives | 4,181 | 4,181 | 1,909 | 2,518 | (246) |
Total | 2,107,053 | 2,165,289 | 1,403,988 | 662,411 | 98,890 |
For fixed- and variable-rate financial liabilities, both principal and interest were considered for the different maturity periods; for variable-rate liabilities, the rate at 31 December 2024 plus the relevant spread was used.
Some of the Group\u2019s loan agreements require the satisfaction of financial covenants and the obligation for the Group to meet certain financial ratio levels.
In detail, the following covenants and relevant maximum thresholds are to be complied with:
Net financial debt/Gross operating income not exceeding 4.5.
If the covenants are not met, the financial institutions can request early repayment of the relevant loan.
The values of these covenants are monitored at the end of each quarter, and at 31 December 2024 the Group had complied with the covenants in question by a considerable margin.
Management believes that currently available lines of credit, apart from the cash flow generated by operating activities will allow Brembo to meet its financial
requirements arising from investing activities, working capital management, and the payment of payables at their natural maturities.
In further detail, at 31 December 2024, unused bank credit facilities accounted for 69% of the total (credit facilities totalled \u20ac838.3 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__46": { "value": "Credit Risk
Credit risk is the risk that a customer or one of the parties to a financial instrument will cause a financial loss by failing to perform an obligation. Exposure to credit risk for the Group arises mainly in relation to trade receivables. Most parties with which the Group does business are leading car and motorbike manufacturers with high credit standings.
The Group evaluates the creditworthiness of all new customers using assessments from external sources and then assigns a credit limit.
Fair Value Measurement
To complete the disclosure of financial risks, the following information is provided:
the fair value hierarchy for the Group\u2019s assets and liabilities:
(euro thousand) | ||||||||
31.12.2024 | 31.12.2023 | |||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
Financial assets measured at fair value through profit or loss: | ||||||||
Current derivatives | 0 | 91 | 0 | 91 | 0 | 3,152 | 0 | 3,152 |
Hedging derivatives: | ||||||||
Current derivatives | 0 | 23,894 | 0 | 23,894 | 0 | 9,797 | 0 | 9,797 |
Non-current derivatives | 0 | 4,565 | 4,433 | 8,998 | 0 | 9,097 | 11,288 | 20,385 |
Total financial assets measured at fair value | 0 | 28,550 | 4,433 | 32,983 | 0 | 22,046 | 11,288 | 33,334 |
Financial liabilities measured at fair value: | ||||||||
Current derivatives | 0 | (1,598) | 0 | (1,598) | 0 | (160) | 0 | (160) |
Hedging derivatives: | ||||||||
Current derivatives | 0 | (9) | 0 | (9) | 0 | 0 | 0 | 0 |
Non-current derivatives | 0 | (302) | (2,272) | (2,574) | 0 | 0 | 0 | 0 |
Total financial liabilities measured at fair value | 0 | (1,909) | (2,272) | (4,181) | 0 | (160) | 0 | (160) |
Assets (liabilities) for which fair value is indicated: | ||||||||
Current and non-current payables to banks | 0 | (757,028) | 0 | (757,028) | 0 | (611,718) | 0 | (611,718) |
Current and non-current lease liabilities | 0 | (238,492) | 0 | (238,492) | 0 | (171,240) | 0 | (171,240) |
Other current and non-current financial liabilities | 0 | (700) | 0 | (700) | 0 | (58,685) | 0 | (58,685) |
Total assets (liabilities) for which fair value is indicated | 0 | (996,220) | 0 | (996,220) | 0 | (841,643) | 0 | (841,643) |
a reconciliation between the classes of financial assets and liabilities identified in the Group\u2019s Statement of Financial Position and the types of financial assets and
liabilities identified based on the requirements of IFRS\u00a07:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Financial assets | ||
Financial assets at fair value through profit or loss | ||
Other financial assets at fair value through profit or loss | 0 | 0 |
Current derivatives | 91 | 3,152 |
Financial assets at amortized cost | ||
Other non-current receivables | 53,197 | 40,264 |
Current trade receivables | 631,395 | 604,877 |
Other current receivables | 94,533 | 68,299 |
Cash and cash equivalents | 867,216 | 510,058 |
Financial assets measured at fair value through other comprehensive income (FVOCI) | ||
Other financial assets at fair value through other comprehensive income | 914 | 278,446 |
Hedging derivatives | ||
Current derivatives | 23,894 | 3,797 |
Non-current derivatives | 8,998 | 20,385 |
Total financial assets | 1,680,238 | 1,529,278 |
Financial liabilities | ||
Financial liabilities at fair value through profit or loss | ||
Current derivatives | (1,598) | (160) |
Non-current derivatives | 0 | 0 |
Financial liabilities measured at amortized cost | ||
Non-current payables to banks and other financial institutions (excluding lease payables) | (574,391) | (488,295) |
Other non-current payables | (2,793) | (3,887) |
Current payables to banks and other financial institutions (excluding lease payables) | (425,839) | (330,274) |
Trade payables | (697,574) | (742,099) |
Other current payables | (166,576) | (150,254) |
Lease payables | ||
Long-term lease liabilities | (145,146) | (149,785) |
Current lease payables | (93,346) | (21,455) |
Hedging derivatives | ||
Non-current derivatives | (2,574) | 0 |
Current derivatives | (9) | 0 |
Total financial liabilities | (2,109,846) | (1,886,209) |
The approach used to calculate fair value is the present value of the future cash flows expected to derive from the instrument being measured, determined by discounting the scheduled instalments at a rate equal to the forward rate curve applicable to each account payable. In detail:
loans and payables to other lenders with a duration of more than 12 months were measured at fair value determined by applying the forward rates curve to the residual duration of the loan;
receivables, trade payables, held-to-maturity financial assets, and payables and receivables to and from banks due within 12 months were measured at their carrying amounts, inasmuch as this is believed to approximate fair values;
the fair value of derivatives was determined on the basis of valuation techniques that take into account observable market parameters other than the prices of the financial instrument.
Segment report
Based on the IFRS 8 definition, an operating segment is a component of an entity:
that engages in business activities from which it may earn revenues and incur expenses;
whose operating results are reviewed regularly by the entity\u2019s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and
for which discrete financial information is available.
In light of such definition, the Brembo Group\u2019s operating segments are five GBUs (Global Business Units): Discs, Systems, Motorbikes, Performance Group, Aftermarket.
Each GBU Director reports to the top management and periodically discusses with them operating activities, financial statements results, forecasts or plans.
The Group thus aggregated the operating segments as follows for the purposes of financial reporting:
Discs \u2013 Systems \u2013 Motorbikes;
Aftermarket \u2013 Performance Group.
The segments that are included in each aggregate are similar in terms of:
the nature of products (braking systems);
the nature of production processes (melting process, subsequent processing for finishing and assembly);
the type of customers (manufacturers for Group 1 and distributors for Group 2);
the methods used to distribute the products (targeted to manufacturers for Group 1 and through distribution chains for Group 2);
the economic characteristics (gross manufacturing margin percentage for Group 1 and gross operating income for Group 2).
Transfer prices applied to transactions between segments for the exchange of goods and services are settled according to usual market conditions.
In light of the requirements of IFRS 8 in terms of revenues earned from major customers, where a single customer is defined as all companies that belong to a given Group, Brembo had one customer in the segment Discs/Systems/Motorbikes who, in 2024, accounted for approximately 12% of consolidated net revenues; considering the individual car manufacturers that compose such group, no one of them exceeded this threshold.
The following table shows segment information on sales of goods and services and results at 31 December 2024 and 31 December 2023:
(euro thousand) | ||||||||||
Total | Discs/Systems/Motorbikes | Aftermarket/Performance Group | Interdivision | Non-segment data | ||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Sales | 3,930,187 | 3,933,310 | 3,231,946 | 3,330,114 | 745,405 | 650,978 | (8,834) | (5,994) | (38,330) | (41,788) |
Allowances and discounts | (98,245) | (79,817) | (11,568) | (10,434) | (86,675) | (69,377) | 0 | 0 | (2) | (6) |
Net sales | 3,831,942 | 3,853,493 | 3,220,378 | 3,319,680 | 658,730 | 581,601 | (8,834) | (5,994) | (38,332) | (41,794) |
Transport costs | 30,190 | 28,557 | 17,744 | 18,086 | 12,409 | 10,422 | 0 | 0 | 37 | 49 |
Variable production costs | 2,381,516 | 2,446,822 | 2,038,606 | 2,138,880 | 389,174 | 361,741 | (8,805) | (5,981) | (37,459) | (47,818) |
Contribution margin | 1,420,236 | 1,378,114 | 1,164,028 | 1,162,714 | 257,147 | 209,438 | (29) | (13) | (910) | 5,975 |
Fixed production costs | 557,673 | 520,578 | 518,228 | 488,474 | 37,369 | 30,080 | 0 | 0 | 2,076 | 2,024 |
Production gross operating income | 862,563 | 857,536 | 645,800 | 674,240 | 219,778 | 179,358 | (29) | (13) | (2,986) | 3,951 |
BU personnel costs | 289,362 | 258,476 | 171,473 | 161,358 | 90,695 | 74,938 | (29) | (12) | 27,223 | 22,192 |
BU gross operating income | 573,201 | 599,060 | 474,327 | 512,882 | 129,083 | 104,420 | 0 | (1) | (30,209) | (18,241) |
Costs for Central Functions | 198,227 | 187,263 | 145,321 | 136,756 | 21,081 | 18,561 | 0 | 0 | 31,825 | 31,946 |
Operating income (loss) | 374,974 | 411,797 | 329,006 | 376,126 | 108,002 | 85,859 | 0 | (1) | (62,034) | (50,187) |
Extraordinary costs and revenues | 6,395 | 5,453 | 0 | 0 | 0 | 0 | 0 | 0 | 6,395 | 5,453 |
Financial costs and revenues | (28,898) | (23,375) | 0 | 0 | 0 | 0 | 0 | 0 | (28,898) | (23,375) |
Income (expense) from investments | 16,335 | 17,124 | 0 | 0 | 0 | 0 | 0 | 0 | 16,335 | 17,124 |
Non-operating costs and revenues | (2,915) | (18,863) | 0 | 0 | 0 | 0 | 0 | 0 | (2,915) | (18,863) |
Result before taxes | 365,891 | 392,136 | 329,006 | 376,126 | 108,002 | 85,859 | 0 | (1) | (71,117) | (69,848) |
Taxes | (99,570) | (84,837) | 0 | 0 | 0 | 0 | 0 | 0 | (99,570) | (84,837) |
Result before minority interests | 266,321 | 307,299 | 329,006 | 376,126 | 108,002 | 85,859 | 0 | (1) | (170,687) | (154,685) |
Minority interests | (3,718) | (2,260) | 0 | 0 | 0 | 0 | 0 | 0 | (3,718) | (2,260) |
Net result | 262,603 | 305,039 | 329,006 | 376,126 | 108,002 | 85,859 | 0 | (1) | (174,405) | (156,945) |
Group EBITDA | 612,283 | 635,034 | 546,279 | 582,603 | 121,835 | 98,142 | 0 | 0 | (55,831) | (45,711) |
A reconciliation between the annual Consolidated Financial Statements and the above information is provided below:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Revenue from contracts with customers | 3,840,643 | 3,849,202 |
Scrap sales (in the segment report they are subtracted from \"Variable production costs\") | (27,711) | (27,521) |
Differences between internal and statutory reports relating to developments activities | 4,849 | 18,897 |
Capital gains on sale of equipment (in the Consolidated Financial Statements they are included in \"Other revenues and income\") | 778 | 422 |
Effect of adjustment of transactions among consolidated companies | 390 | (290) |
Miscellaneous recharges (in the Consolidated Financial Statements they are included in \"Other revenues and income\") | 1,877 | 1,653 |
Other | 11,116 | 11,130 |
Net sales | 3,831,942 | 3,853,493 |
(euro thousand) | 31.12.2024 | 31.12.2023 |
NET OPERATING INCOME | 393,333 | 414,072 |
Differences between internal and statutory reports relating to developments activities | 808 | 16,171 |
Other differences between internal and statutory reports | (497) | 690 |
Income (expense) from non-financial investments | (16,253) | (17,044) |
Claim compensation and subsidies | (4,485) | (4,156) |
Capital gains/losses on disposal of assets (in the segment report they are included in \"Non-operating costs and revenues\") | 320 | (574) |
Different classification of banking expenses (in the segment report they are included in \"Financial costs and revenues\") | 1,374 | 1,421 |
Reclassification of Brembo Argentina | 0 | (62) |
Other | 374 | 1,279 |
OPERATING RESULT | 374,974 | 411,797 |
The breakdown of Group sales by geographical area of destination and by application is provided in the paragraph 2.5.1.
Statement of Financial Position data at 31 December 2024 and 31 December 2023 are provided in the tables below:
(euro thousand) | ||||||||||
Total | Discs/Systems/Motorbikes | Aftermarket/Performance Group | Interdivision | Non-segment data | ||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Tangible assets | 1,774,996 | 1,522,879 | 1,619,178 | 1,377,799 | 103,349 | 82,157 | 5 | 5 | 52,464 | 62,918 |
Intangible assets | 202,413 | 196,309 | 176,871 | 174,268 | 20,797 | 19,562 | 0 | 0 | 4,745 | 2,479 |
Financial assets and other non-current assets/liabilities | 161,983 | 138,427 | 548 | 3,756 | 0 | 0 | 0 | 0 | 161,435 | 134,671 |
Total fixed assets (A) | 2,139,392 | 1,857,615 | 1,796,597 | 1,555,823 | 124,146 | 101,719 | 5 | 5 | 218,644 | 200,068 |
Inventories | 638,015 | 621,359 | 451,945 | 461,134 | 185,198 | 159,301 | 0 | 0 | 872 | 924 |
Current assets | 780,800 | 716,387 | 560,672 | 537,329 | 92,169 | 75,964 | (35,612) | (27,086) | 163,571 | 130,180 |
Current liabilities | (967,651) | (996,007) | (564,755) | (611,448) | (172,423) | (160,951) | 35,612 | 27,086 | (266,085) | (250,694) |
Provisions for contingencies and charges and other provisions | (50,205) | (62,275) | (143) | (116) | 0 | 0 | 0 | 0 | (50,062) | (62,159) |
Net working capital (B) | 400,959 | 279,464 | 447,719 | 386,899 | 104,944 | 74,314 | 0 | 0 | (151,704) | (181,749) |
NET INVESTED OPERATING CAPITAL (A + B) | 2,540,351 | 2,137,079 | 2,244,316 | 1,942,722 | 229,090 | 176,033 | 5 | 5 | 66,940 | 18,319 |
Extraordinary components | 197,175 | 453,532 | 0 | 0 | 0 | 0 | 0 | 0 | 197,175 | 453,532 |
NET INVESTED CAPITAL | 2,737,526 | 2,590,611 | 2,244,316 | 1,942,722 | 229,090 | 176,033 | 5 | 5 | 264,115 | 471,851 |
Total Group equity | 2,294,474 | 2,067,795 | 0 | 0 | 0 | 0 | 0 | 0 | 2,294,474 | 2,067,795 |
Total Minority interests | 35,343 | 31,624 | 0 | 0 | 0 | 0 | 0 | 0 | 35,343 | 31,624 |
Equity (D) | 2,329,817 | 2,099,419 | 0 | 0 | 0 | 0 | 0 | 0 | 2,329,817 | 2,099,419 |
Provisions for employee benefits (E) | 47,356 | 36,445 | 0 | 0 | 0 | 0 | 0 | 0 | 47,356 | 36,445 |
Medium/long-term financial debt | 715,274 | 628,983 | 0 | 0 | 0 | 0 | 0 | 0 | 715,274 | 628,983 |
Short-term financial debt | (354,921) | (174,236) | 0 | 0 | 0 | 0 | 0 | 0 | (354,921) | (174,236) |
Net financial debt (F) | 360,353 | 454,747 | 0 | 0 | 0 | 0 | 0 | 0 | 360,353 | 454,747 |
COVERAGE (d + e + f) | 2,737,526 | 2,590,611 | 0 | 0 | 0 | 0 | 0 | 0 | 2,737,526 | 2,590,611 |
The following should be noted in regard to the non-segment data:
intangible assets mainly consist of development costs;
financial assets are not allocated; they mainly refer to the value of shareholdings in associates, joint ventures and other companies;
current assets and liabilities mainly consist of trade receivables and payables;
provisions for contingencies and charges and other provisions are not allocated.
Related Parties
The Group carries out transactions with parents, subsidiaries, associates, joint ventures, directors, key management personnel and other related parties. The Parent Brembo N.V. is a subsidiary of Nuova FourB S.r.l., which holds 76.56% of voting rights. Brembo did not engage in dealings with its parent in 2024, except for the dividend distribution.
Information pertaining to the compensation paid to
Directors and Statutory Auditors of Brembo N.V. and of other Group companies and additional information required is reported in the Explanatory notes to the Separate Financial Statements of Brembo N.V.
Sales of products, supply of services and the transfer of fixed assets between Group companies were carried out at prices reflecting fair market conditions. The trading volumes reflect the internationalization process aimed at
constantly improving both operating and organizational standards and optimising synergies within the Company. From a financial standpoint, the subsidiaries operate independently, although some benefit from various forms of centralized financing. Since 2008, a zero-balance cash-pooling system has been effective, with Brembo N.V. as the pool leader. In 2013, an additional cash pooling arrangement was put in place, denominated in CNY, with Brembo Nanjing Brake Systems Co. Ltd. as pooler
and Brembo Nanjing Automobile Components Co. Ltd., Qingdao Brembo Trading Co. Ltd., Brembo Huilian (Langfang) Brake Systems Co. Ltd. and Jiaxing Ciju Control Systems Co. Ltd. The cash pooling is entirely based in China, and Citibank China is the service provider.
The following table provides a summary of related party transactions with reference to balances of the Statement of Financial Position and Statement of Income:
(euro thousand) | ||||||||||||||
31.12.2024 | 31.12.2023 | |||||||||||||
Carrying value | Total | Key management personnel | Other companies | Joint ventures | Associates | % | Carrying value | Total | Key management personnel | Other companies | Joint ventures | Associates | % | |
a)\tWeight of transactions or positions with related parties on items of the Statement of Financial Position | ||||||||||||||
Trade receivables | 631,395 | 2,400 | 7 | 5 | 2,297 | 91 | 0.4% | 604,877 | 3,121 | 10 | 8 | 2,998 | 105 | 0.5% |
Other non-current liabilities | (2,793) | 0 | 0 | 0 | 0 | 0 | 0.0% | (3,887) | (628) | (628) | 0 | 0 | 0 | 16.2% |
Employee benefits | (47,356) | (11,377) | (13,085) | 1,708 | 0 | 0 | 24.0% | (36,445) | (7,151) | (8,395) | 1,244 | 0 | 0 | 19.6% |
Trade payables | (697,574) | (14,594) | 0 | (422) | (13,855) | (317) | 2.1% | (742,099) | (21,160) | (161) | (3,117) | (17,301) | (581) | 2.9% |
Other current liabilities | (166,576) | (4,678) | (4,548) | 0 | (130) | 0 | 2.8% | (150,254) | (3,920) | (3,787) | 0 | (133) | 0 | 2.6% |
b)\tWeight of transactions or positions with related parties on items of the Statement of Income | ||||||||||||||
Revenue from contracts with customers | 3,840,643 | 794 | 0 | 5 | 789 | 0 | 0.0% | 3,849,202 | 450 | 0 | 5 | 445 | 0 | 0.0% |
Other revenues and income | 47,926 | 4,493 | 27 | 11 | 4,255 | 200 | 9.4% | 45,126 | 4,689 | 18 | 9 | 4,452 | 210 | 10.4% |
Raw materials, consumables and goods | (1,758,445) | (104,308) | 0 | (25) | (104,232) | (51) | 5.9% | (1,788,322) | (76,706) | 0 | (11) | (76,300) | (395) | 4.3% |
Income (expense) from non-financial investments | 16,253 | 16,253 | 0 | 0 | 16,253 | 0 | 100.0% | 17,044 | 17,044 | 0 | 0 | 17,044 | 0 | 100.0% |
Other operating costs | (787,271) | (12,269) | (7,174) | (1,381) | (3,263) | (451) | 1.6% | (804,253) | (12,566) | (7,821) | (1,124) | (3,218) | (403) | 1.6% |
Personnel expenses | (729,547) | (6,332) | (6,235) | (97) | 0 | 0 | 0.9% | (681,620) | (7,285) | (7,130) | (155) | 0 | 0 | 1.1% |
Net interest income (expense) | (38,573) | (209) | (288) | 0 | (3) | 82 | 0.5% | (34,328) | 248 | 174 | 0 | (6) | 80 | -0.7% |
Interest income (expense) from investments | 11,131 | 11,048 | 0 | 11,048 | 0 | 0 | 99.3% | 12,256 | 12,164 | 0 | 12,164 | 0 | 0 | 99.2% |
Information About the Group
The key figures of Group companies are commented upon in the sections of the Directors\u2019 Report on Operations \u201cGroup Structure\u201d and \u201cPerformance of Brembo Companies\u201d.
Company | Headquarters | Share capital | Stake held by group companies | |||
Brembo N.V. | Bergamo | Italy | Eur | 7,007,202 | ||
AP Racing Ltd. | Coventry | United Kingdom | Gbp | 135,935 | 100% | Brembo N.V. |
AP Racing North America Corp. | Huntersville, North Carolina | USA | Usd | 300,000 | 100% | AP Racing Ltd. |
Brembo Australia Pty Ltd. | Melbourne | Australia | Aus | 300,000 | 100% | Brembo N.V. |
Brembo Czech S.r.o. | Ostrava-Hrabov\u00e1 | Czech Republic | Czk | 605,850,000 | 100% | Brembo N.V. |
Brembo Deutschland GmbH | Leinfelden-Echterdingen | Germany | Eur | 25,000 | 100% | Brembo N.V. |
Brembo France SAS | Paris | France | Eur | 50,000 | 100% | Brembo N.V. |
Brembo Inspiration Lab Corp. | Sunnyvale, California | USA | Usd | 300,000 | 100% | Brembo N.V. |
Brembo Japan Co. Ltd. | Tokyo | Japan | Jpy | 11,000,000 | 100% | Brembo N.V. |
Brembo Nanjing Brake Systems Co. Ltd. | Nanjing | China | Cny | 492,030,169 | 100% | Brembo N.V. |
Brembo North America Inc. | Plymouth, Michigan | USA | Usd | 33,798,805 | 100% | Brembo N.V. |
Brembo Poland Spolka Zo.o. | D\u0105browa G\u00f3rnicza | Poland | Pln | 144,879,500 | 100% | Brembo N.V. |
Brembo Poland Manufacturing Sp. Zo.o. | D\u0105browa G\u00f3rnicza | Poland | Pln | 50,000,000 | 100% | Brembo Poland Spolka Zo.o. |
Brembo Poland Heratech Sp. Zo.o. | D\u0105browa G\u00f3rnicza | Poland | Pln | 5,000 | 100% | Brembo Poland Spolka Zo.o. |
Brembo Reinsurance AG | Z\u00dcrich | Switzerland | Eur | 6,148,533 | 100% | Brembo N.V. |
Brembo Russia LLC | Moscow | Russia | Rub | 1,250,000 | 100% | Brembo N.V. |
Brembo Scandinavia A.B. | G\u00f6teborg | Sweden | Sek | 4,500,000 | 100% | Brembo N.V. |
J.Juan S.A.U. | Barcelona | Spain | Eur | 150,260 | 100% | Brembo N.V. |
Jiaxing Ciju Control Systems Co. Ltd. | Jiaxing | China | Cny | 16,309,640 | 100% | J.Juan S.A.U. |
Company | Headquarters | Share capital | Stake held by group companies | |||
La.Cam (Lavorazioni Camune) S.r.l. | Stezzano | Italy | Eur | 100,000 | 100% | Brembo N.V. |
Qingdao Brembo Trading Co. Ltd. | Qingdao | China | Cny | 1,365,700 | 100% | Brembo N.V. |
Brembo (Nanjing) Automobile Components Co. Ltd. | Nanjing | China | Cny | 226,565,500 | 60% | Brembo N.V. |
40% | Brembo Brake India Pvt. Ltd. | |||||
SBS Friction A/S | Svendborg | Denmark | Dkk | 12,001,000 | 60% | Brembo N.V. |
40% | Brembo Brake India Pvt. Ltd. | |||||
Brembo Mexico S.A. de C.V. | Apodaca | Mexico | Usd | 20,428,836 | 49% | Brembo N.V. |
51% | Brembo North America Inc. | |||||
Brembo Brake India Pvt. Ltd. | Pune | India | Inr | 140,000,000 | 99.99% | Brembo N.V. |
Brembo do Brasil Ltda. | Betim | Brazil | Brl | 159,136,227 | 99.99% | Brembo N.V. |
Brembo Thailand Ltd. | Rayong | Thailand | Thb | 273,280,000 | 99.99% | Brembo N.V. |
Corporaci\u00d3n Upwards \u201898 S.A. | Zaragoza | Spain | Eur | 498,043 | 68% | Brembo N.V. |
Brembo Huilian (Langfang) Brake Systems Co. Ltd. | Langfang | China | Cny | 170,549,133 | 66% | Brembo N.V. |
Shandong BRGP Friction Technology Co. Ltd. | Jinan | China | Cny | 124,900,000 | 50% | Brembo N.V. |
Brembo SGL Carbon Ceramic Brakes S.p.A. | Stezzano | Italy | Eur | 4,000,000 | 50% | Brembo N.V. |
Brembo SGL Carbon Ceramic Brakes GmbH | Meitingen | Germany | Eur | 25,000 | 100% | Brembo SGL Carbon Ceramic Brakes S.p.A. |
Infibra Technologies S.r.l. | Pisa | Italy | Eur | 53,133 | 20% | Brembo N.V. |
Petroceramics S.p.A. | Stezzano | Italy | Eur | 123,750 | 20% | Brembo N.V. |
Independent Auditors\u2019 Fees
Details on the fees paid to the independent audit firm and other companies within its network are provided below:
Deloitte Accountants B.V. | Other Deloitte member firms and affilitates | |||
(euro thousand) | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 |
Independent Auditors\u2019 fees for the provision of audit services: | ||||
\u2013 to the Parent Brembo N.V. | 293 | 0 | 246 | 270 |
\u2013 to the subsidiaries (services provided by the network) | 0 | 0 | 510 | 573 |
Independent Auditors\u2019 fees for the provision of auditing services for issuing attestation: | ||||
\u2013 to the Parent Brembo N.V. | 95 | 0 | 35 | 65 |
\u2013 to the subsidiaries (services provided by the network) | 0 | 0 | 43 | 61 |
Commitments
Contractual commitments for investments in property, plant and equipment and intangible assets already entered into with third parties at 31 December 2024 and not yet recognized in the Consolidated Financial Statements amounted to \u20ac504 million.
Positions or Transactions from Atypical and/or Unusual Operations
It is hereby specified that during 2024 the Company did not carry out any atypical and/or unusual transactions, as defined by the said Notice.
Significant Events After 31 December 2024
On 2 January 2025, Brembo, further to the announcement made on 11 October 2024, completed the acquisition of a 100% stake in \u00d6hlins Racing, the leading manufacturer of premium, high-performance suspension technology for motorcycles and cars in the Original Equipment, Motorsport, and Aftermarket segments. The value of the transaction corresponds to an enterprise value of $405 million, on a cash free/debt free basis, subject to the customary adjustment mechanisms which will be completed within the next 135 days. The payment of the consideration was made entirely using available cash.
No other significant events occurred after 31 December 2024 and up to 18 March 2025.
5.2.4 Analysis of each item
Statement of Financial Position
1. Property, plant, equipment and right of use assets
Property, Plant and Equipment
The changes in property, plant and equipment are shownin the table below and described in this section.
(euro thousand) | Land | Buildings | Plant and machinery | Industrial and commercial equipment | Other assets | Assets in course of construction and payments on account | Total |
Historical cost | 37,789 | 467,765 | 1,767,495 | 298,789 | 86,515 | 138,809 | 2,797,162 |
Accumulated depreciation | 0 | (184,504) | (1,168,763) | (252,216) | (63,692) | 0 | (1,669,175) |
Write-down provision | 0 | 0 | (2,128) | (18) | (10) | (120) | (2,276) |
Balance at 1 January 2023 | 37,789 | 283,261 | 596,604 | 46,555 | 22,813 | 138,689 | 1,125,711 |
Changes: | |||||||
Translation differences | (598) | (1,944) | (3,631) | 241 | (854) | (1,948) | (8,734) |
Reclassifications | 0 | 11,610 | 51,471 | 6,527 | 1,793 | (73,664) | (2,263) |
Additions | 10,000 | 41,948 | 119,635 | 22,944 | 4,695 | 169,862 | 369,084 |
Disposals | 0 | (25) | (314) | (119) | (177) | (23) | (658) |
Other | 11,052 | 50,087 | 0 | (4,260) | (16) | 0 | 56,863 |
Depreciation | 0 | (19,988) | (138,746) | (19,994) | (7,024) | 0 | (185,752) |
Impairment losses | 0 | (183) | (236) | (24) | 0 | (260) | (703) |
Total changes | 20,454 | 81,505 | 28,179 | 5,315 | (1,583) | 93,967 | 227,837 |
Historical cost | 58,243 | 569,758 | 1,922,562 | 326,205 | 89,442 | 233,023 | 3,199,233 |
Accumulated depreciation | 0 | (204,816) | (1,295,852) | (270,036) | (68,205) | 0 | (1,838,909) |
Write-down provision | 0 | (176) | (1,927) | (4,299) | (7) | (367) | (6,776) |
Balance at 31 December 2023 | 58,243 | 364,766 | 624,783 | 51,870 | 21,230 | 232,656 | 1,353,548 |
(euro thousand) | Land | Buildings | Plant and machinery | Industrial and commercial equipment | Other assets | Assets in course of construction and payments on account | Total |
Historical cost | 58,243 | 569,758 | 1,922,562 | 326,205 | 89,442 | 233,023 | 3,199,233 |
Accumulated depreciation | 0 | (204,816) | (1,295,852) | (270,036) | (68,205) | 0 | (1,838,909) |
Write-down provision | 0 | (176) | (1,927) | (4,299) | (7) | (367) | (6,776) |
Balance at 1 January 2024 | 58,243 | 364,766 | 624,783 | 51,870 | 21,230 | 232,656 | 1,353,548 |
Changes: | |||||||
Translation differences | 1,568 | 11,841 | 12,391 | 210 | 365 | 6,942 | 33,317 |
Reclassifications | (1) | 33,730 | 65,506 | 8,757 | 3,046 | (116,712) | (5,674) |
Additions | 140 | 14,826 | 67,830 | 22,513 | 5,860 | 252,795 | 363,964 |
Disposals | 0 | (11) | (1,930) | (789) | (71) | (11) | (2,812) |
Other | 0 | 0 | 0 | 642 | 0 | 0 | 642 |
Depreciation | 0 | (22,327) | (146,684) | (22,825) | (6,953) | 0 | (198,789) |
Impairment losses | 0 | 0 | (1,597) | (78) | (3) | (183) | (1,861) |
Total changes | 1,707 | 38,059 | (4,484) | 8,430 | 2,244 | 142,831 | 188,787 |
Historical cost | 59,950 | 634,963 | 2,064,611 | 356,109 | 98,273 | 375,775 | 3,589,681 |
Accumulated depreciation | 0 | (231,962) | (1,442,030) | (292,173) | (74,788) | 0 | (2,040,953) |
Write-down provision | 0 | (176) | (2,282) | (3,636) | (11) | (288) | (6,393) |
Balance at 31 December 2024 | 59,950 | 402,825 | 620,299 | 60,300 | 23,474 | 375,487 | 1,542,335 |
In 2024, investments in tangible fixed assets amounted to \u20ac363,964 thousand, including \u20ac252,795 thousand in fixed assets in course of construction.
As already noted in the Report on Operations, the Group continued its development programme. This involved significant investments in Italy, North America, Poland.
Net disposals amounted to \u20ac2,812 thousand and refer to the normal cycle of machinery replacement, as it becomes unusable in production processes.
Total depreciation charges for 2024 amounted to \u20ac198,789 thousand (2023: \u20ac185,752 thousand).
Right of use assets
The following table shows the movements in item \u201cRight of use assets\u201d:
(euro thousand) | Land | Buildings | Plant and machinery | Other assets | Total |
Historical cost | 4,862 | 288,679 | 441 | 36,426 | 330,408 |
Accumulated depreciation | (533) | (63,877) | (264) | (23,613) | (88,287) |
Balance at 1 January 2023 | 4,329 | 224,802 | 177 | 12,813 | 242,121 |
Changes: | |||||
Translation differences | (185) | (3,450) | 1 | 123 | (3,511) |
Reclassification from leased assets to property, plant and equipment | 0 | (63,672) | 0 | (6) | (63,678) |
New contracts/leases for the period | 0 | 14,777 | 0 | 5,954 | 20,731 |
Unwinding of lease contract | 0 | (359) | 0 | (94) | (453) |
Depreciation | (90) | (17,605) | (136) | (8,048) | (25,879) |
Total changes | (275) | (70,309) | (135) | (2,071) | (72,790) |
Historical cost | 4,648 | 222,769 | 441 | 32,495 | 260,353 |
Accumulated depreciation | (594) | (68,276) | (399) | (21,753) | (91,022) |
Balance at 1 January 2024 | 4,054 | 154,493 | 42 | 10,742 | 169,331 |
Changes: | |||||
Translation differences | 122 | (207) | 0 | 62 | (23) |
New contracts/leases for the period | 10,589 | 68,362 | 0 | 10,355 | 89,306 |
Unwinding of lease contract | 0 | 0 | (42) | (29) | (71) |
Depreciation | (200) | (18,253) | 0 | (7,429) | (25,882) |
Total changes | 10,511 | 49,902 | (42) | 2,959 | 63,330 |
Historical cost | 15,388 | 285,630 | 0 | 36,320 | 337,338 |
Accumulated depreciation | (823) | (81,235) | 0 | (22,619) | (104,677) |
Balance at 31 December 2024 | 14,565 | 204,395 | 0 | 13,701 | 232,661 |
The increases mainly refer to new contracts subscribed by Brembo N.V. for a new building in Stezzano, by Brembo Inspiration Lab. Inc. for the extension of the existing building and by Brembo Thailand Ltd. for the new plant located in the motorcycle industry hub of the country, situated in the Rayong province, south of the capital Bangkok.
Brembo N.V. also increased the right of use of its own property in Stezzano following the decision to proceed with the purchase of the same, which will be completed in early 2025.
Note 13 provides other information on the Group\u2019s financial commitment with respect to leased assets.
2. Intangible Assets (Development Costs,Goodwill and Other Intangible Assets)
The changes in this item are shown in the table below and described in this section.
(euro thousand) | Development costs | Goodwill(A) | Intangible assets with indefinite useful lives (B) | Sub-total(A + B) | Industrialpatents and similar rights(C) | Other intangible assets(D) | Total other intangible assets(C + D) | Total |
Historical cost | 287,214 | 123,591 | 11,332 | 134,923 | 48,591 | 193,028 | 241,619 | 663,756 |
Accumulated amortization | (178,967) | 0 | 0 | 0 | (36,047) | (127,454) | (163,501) | (342,468) |
Write-down provision | (6,589) | (11,686) | (2) | (11,688) | (2,589) | 0 | (2,589) | (20,866) |
Balance at 1 January 2023 | 101,658 | 111,905 | 11,330 | 123,235 | 9,955 | 65,574 | 75,529 | 300,422 |
Changes: | ||||||||
Translation differences | (271) | (3,629) | (27) | (3,656) | 41 | (1,326) | (1,285) | (5,212) |
Reclassifications | 0 | 0 | 0 | 0 | 510 | 648 | 1,158 | 1,158 |
Additions | 28,910 | 0 | 0 | 0 | 1,910 | 12,913 | 14,823 | 43,733 |
Other | 1 | 0 | 0 | 0 | 2 | 0 | 2 | 3 |
Amortization | (23,461) | 0 | 0 | 0 | (2,165) | (11,332) | (13,497) | (36,958) |
Impairment losses | (2,414) | 0 | 0 | 0 | 0 | 0 | 0 | (2,414) |
Total changes | 2,765 | (3,629) | (27) | (3,656) | 298 | 903 | 1,201 | 310 |
Historical cost | 315,056 | 120,203 | 11,305 | 131,508 | 51,252 | 203,754 | 255,006 | 701,570 |
Accumulated amortization | (201,631) | 0 | 0 | 0 | (38,410) | (137,277) | (175,687) | (377,318) |
Write-down provision | (9,002) | (11,927) | (2) | (11,929) | (2,589) | 0 | (2,589) | (23,520) |
Balance at 31 December 2023 | 104,423 | 108,276 | 11,303 | 119,579 | 10,253 | 66,477 | 76,730 | 300,732 |
(euro thousand) | Development costs | Goodwill(A) | Intangible assets with indefinite useful lives (B) | Sub-total(A + B) | Industrialpatents and similar rights(C) | Other intangible assets(D) | Total other intangible assets(C + D) | Total |
Historical cost | 315,056 | 120,203 | 11,305 | 131,508 | 51,252 | 203,754 | 255,006 | 701,570 |
Accumulated amortization | (201,631) | 0 | 0 | 0 | (38,410) | (137,277) | (175,687) | (377,318) |
Write-down provision | (9,002) | (11,927) | (2) | (11,929) | (2,589) | 0 | (2,589) | (23,520) |
Balance at 1 January 2024 | 104,423 | 108,276 | 11,303 | 119,579 | 10,253 | 66,477 | 76,730 | 300,732 |
Changes: | ||||||||
Translation differences | 440 | 3,387 | 12 | 3,399 | 6 | 734 | 740 | 4,579 |
Reclassifications | 140 | 0 | 0 | 0 | 409 | (342) | 67 | 207 |
Additions | 31,465 | 0 | 0 | 0 | 1,796 | 13,829 | 15,625 | 47,090 |
Other | 0 | 0 | 0 | 0 | 8 | 0 | 8 | 8 |
Amortization | (24,928) | 0 | 0 | 0 | (2,368) | (11,367) | (13,735) | (38,663) |
Impairment losses | (2,528) | 0 | 0 | 0 | 0 | 0 | 0 | (2,528) |
Total changes | 4,589 | 3,387 | 12 | 3,399 | (149) | 2,854 | 2,705 | 10,693 |
Historical cost | 347,969 | 124,164 | 11,317 | 135,481 | 53,389 | 219,205 | 272,594 | 756,044 |
Accumulated amortization | (227,427) | 0 | 0 | 0 | (40,696) | (149,874) | (190,570) | (417,997) |
Write-down provision | (11,530) | (12,501) | (2) | (12,503) | (2,589) | 0 | (2,589) | (26,622) |
Balance at 31 December 2024 | 109,012 | 111,663 | 11,315 | 122,978 | 10,104 | 69,331 | 79,435 | 311,425 |
Development costs
Item \u201cDevelopment costs\u201d includes costs for development, internal and external, for a gross historical cost of \u20ac347,969 thousand. During the reporting year, this item changed due to higher costs incurred in 2024 for development orders received both during the year and in previous years, for which additional development costs were incurred; amortization amounting to \u20ac24,928 thousand was recognized for development costs associated with orders
regarding products that have already entered production.
The gross amount includes development activities for projects underway totalling \u20ac56,654 thousand. The total amount of costs for capitalized internal works charged to the Statement of Income in item \u201cCosts for capitalized internal works\u201d during the year amounted to \u20ac31,497 thousand (2023: \u20ac28,601 thousand).
Impairment losses totalled \u20ac2,528 thousand and are recognized in the Statement of Income under \u201cAmortization, depreciation and impairment losses.\u201d Impairment losses refer to development costs incurred mainly by the Parent, Brembo N.V., in relation to projects that, consistent with the desire of the customer or Brembo, were not completed or underwent changes in terms of their end destination.
Goodwill
Item \u201cGoodwill\u201d arose from business combinations and the ensuing allocation to the following GCUs:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Discs - Systems - Motorbikes: | ||
Brembo North America Inc.(Hayes Lemmerz) | 16,430 | 15,447 |
Brembo M\u00e9xico S.A. de C.V.(Hayes Lemmerz) | 1,000 | 940 |
Brembo Nanjing Brake SystemsCo. Ltd. | 923 | 892 |
Brembo Brake India Pvt. Ltd. | 7,404 | 7,165 |
Brembo Huilian (Langfang)Brake Systems Co. Ltd. | 44,396 | 42,882 |
SBS Friction A/S | 20,690 | 20,703 |
J.Juan group | 6,296 | 6,296 |
After Market - Performance Group: | ||
Corporaci\u00f3n Upwards '98 (Frenco S.A.) | 2,006 | 2,006 |
AP Racing Ltd. | 12,518 | 11,945 |
Total | 111,663 | 108,276 |
The change compared to 31 December 2023 was attributable to the change in consolidation exchange rates.
CGUs are typically identified as the business being acquired and therefore tested for impairment. If the asset being tested for impairment refers to businesses operating in multiple business lines, it is attributed to all business lines in existence at the date of acquisition; this approach is consistent with valuations carried out at the acquisition date, which are typically based on the estimated recoverable amount of the entire investment.
Intangible assets with indefinite useful lives
This item includes \u20ac1,030 thousand related to the Villar trademark, owned by the subsidiary Corporaci\u00f3n Upwards \u201898 S.A., \u20ac1,317 thousand to the SBS Friction trademark, \u20ac8,585 thousand to the J.Juan trademark and \u20ac383 thousand to the trademark LF of Brembo Huilian (Langfang) Brake Systems Co. Ltd.
Impairment test
The Group conducts an impairment test at year-end and whenever there are indicators of impairment losses. The Group\u2019s impairment test on goodwill and intangible assets with indefinite useful lives is based on value in use.
Among the various indicators of impairment losses, the Group considers the relationship between its market capitalization and equity, which at 31 December 2024 did not show any indicators of impairment losses.
Future cash flows used for the calculation are based on management\u2019s most recent operating and financial plans. In particular, in defining the future cash flows reference was made to:
the Group\u2019s 2025 Budget approved by the Board of Directors on 30 January 2025;
the Group\u2019s 2026-2028 Industrial Plan approved by the Board of Directors on 30 July 2024;
which both reflect the current expectations regarding economic conditions and market trends as well as the Company\u2019s initiatives for the period covered by the projections.
The main assumptions that determined the test outcome were:
the Group\u2019s rate (Group WACC) of 8.91% (9.79% in 2023). The change compared to the previous year was mainly due to the decrease in the intrest rates;
a growth rate (g-rate) used in determining terminal value of 1.5% (1.5% in 2023).
The previously mentioned impairment tests did not indicate the need to recognize any impairment loss in the reporting year.
After having performed the base tests, according to the calculation for each CGU, the sensitivity analyses were conducted. In the event of a change in the WACC from 8.91% to 9.91%, in the growth rate from 1.5% to 1% or a decline in sales volumes/margins of 5%-10% over the plan period, no impairment loss would be required.
In addition to the foregoing, the Group analysed the presence of impairment indicators on the various CGUs that do not present goodwill recognized or fixed assets with indefinite useful lives. However, for these CGUs, the impairment test for Property, plant, equipment and other equipment, Right of use assets, Development costs and Other intangible assets is only required when such indicators are present.
In the reporting year, impairment indicators were identified with reference to Brembo Czech S.r.o. The impairment test and sensitivity analyses on the above CGU did not identify any risks of impairment (for methodology, reference is made to what is stated above with regard to goodwill).
Despite including considerable investments relating to sustainability objectives in its financial plans, Brembo has introduced an additional sensitivity scenario for its flows (at both Group level and GBU level), designed to reflect its carbon neutrality goals. Accordingly, cash outflows were simulated, both during the explicit period and in the estimate of terminal value, which simulate the cost of neutralising CO2emissions (Scope 1) on the basis of the market values that would be incurred to neutralize them. Impairment tests did not indicate the need to recognize any impairment loss in the reporting year.
Other intangible assets
Acquisitions recognized under \u201cOther intangible assets\u201d totalled \u20ac15,625 thousand and refer for \u20ac1,796 thousand to the filing of specific patents and trademarks, and for the remaining amount mainly to the share of the investment for the reporting year associated with the development of the Group\u2019s Digital Transformation plan.
3. Shareholdings Valued Using theEquity Method (Associates andJoint Ventures)
This item includes the Group\u2019s share of equity in companiesthat are valued using the equity method. The followingtable shows all relevant movements:
(euro thousand) | 31.12.2023 | Acquisitions and new shareholdings | Exchange rate fluctuations | Write-ups/Write-downs | Dividends | Other changes | 31.12.2024 |
Brembo SGL Carbon Ceramic Brakes Group | 53,707 | 0 | 0 | 16,045 | (15,000) | 81 | 54,833 |
Shandong BRGP Friction Technology Co. Ltd. | 4,393 | 2,733 | 221 | 208 | 0 | 0 | 7,555 |
Petroceramics S.p.A. | 1,294 | 0 | 0 | 117 | 0 | (6) | 1,405 |
Infibra Technologies S.r.l. | 793 | 0 | 0 | (35) | 0 | (10) | 748 |
Total | 60,187 | 2,733 | 221 | 16,335 | (15,000) | 65 | 64,541 |
It should be noted that the impact on the Statement of Income of investments valued using the equity method refers to two items: \u201cIncome (expense) from non-financial investments\u201d, attributable to the effect of the valuation using the equity method of the BSCCB Group and the company Shandong BRGP Friction Technology Co. Ltd.,
and \u201cInterest income (expense) from investments\u201d, attributable to the valuation of associates using the equity method.
The following is a breakdown of the assets, liabilities, costs and revenues referring to joint ventures and associates.
Joint ventures
(euro thousand) | ||||
Brembo Group SGL Carbon Ceramic Brakes | Shandong BRGP Friction Technology Co. Ltd. | |||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Revenue from contracts with customers | 267,811 | 254,789 | 33,720 | 12,596 |
Other revenues and income | 4,146 | 5,090 | 796 | (8) |
Raw materials, consumables and goods | (85,717) | (79,171) | (21,901) | (8,616) |
Other operating costs | (61,296) | (61,524) | (2,636) | (1,738) |
Personnel expenses | (65,998) | (58,410) | (4,935) | (2,790) |
Gross operating income | 58,946 | 60,774 | 5,044 | (556) |
Depreciation, amortization and impairment losses | (13,100) | (11,395) | (2,254) | (1,190) |
Net operating income | 45,846 | 49,379 | 2,790 | (1,746) |
Net interest income (expense) | (1,043) | 107 | (723) | (623) |
Result before taxes | 44,803 | 49,486 | 2,067 | (2,369) |
Taxes | (12,820) | (13,554) | (380) | 589 |
Group net result | 31,983 | 35,932 | 1,687 | (1,780) |
% ownership | 50% | 50% | 50% | 50% |
Other consolidation adjustments | 53 | (32) | (636) | 0 |
Group net result | 16,045 | 17,934 | 208 | (890) |
Property, plant, equipment and other equipment | 103,228 | 71,246 | 14,215 | 9,982 |
Right-of-use assets | 39,092 | 11,566 | 8,846 | 8,389 |
Other intangible assets | 419 | 196 | 138 | 113 |
Other non-current financial assets | 131 | 131 | 0 | 0 |
Receivables and other non-current assets | 973 | 950 | 0 | 0 |
Deferred tax assets | 3,682 | 3,690 | 464 | 582 |
Total non-current assets | 147,525 | 87,779 | 23,663 | 19,066 |
Inventories | 44,960 | 39,918 | 1,645 | 999 |
Trade receivables | 23,211 | 34,541 | 7,772 | 5,404 |
Other receivables and current assets | 12,773 | 6,873 | 1,471 | 1,917 |
Other current financial assets | 2 | 6 | 0 | 0 |
Cash and cash equivalents | 9,444 | 4,551 | 13,158 | 3,046 |
Total current assets | 90,390 | 85,889 | 24,046 | 11,366 |
Total assets | 237,915 | 173,668 | 47,709 | 30,432 |
(euro thousand) | ||||
Brembo Group SGL Carbon Ceramic Brakes | Shandong BRGP Friction Technology Co. Ltd. | |||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Share capital | 4,000 | 4,000 | 16,470 | 10,547 |
Other reserves | 24,993 | 34,765 | 0 | 0 |
Reserve for cumulative traslation adjustment | 0 | 0 | 45 | 43 |
Retained earnings/(losses) | 46,934 | 31,068 | 0 | 0 |
Retained earning/(losses) carried forward | 0 | 0 | (1,821) | (24) |
Net result for the period | 31,983 | 35,932 | 1,687 | (1,780) |
Total equity | 107,910 | 105,765 | 16,381 | 8,786 |
Non-current payables to banks | 20,000 | 0 | 5,064 | 4,891 |
Long-term lease liabilities | 36,422 | 9,833 | 9,466 | 8,558 |
Other non-current liabilities | 1,899 | 1,667 | 0 | 0 |
Non-current provisions | 1,276 | 2,954 | 0 | 0 |
Employee benefits | 3,180 | 2,971 | 0 | 0 |
Deferred tax liabilities | 26 | 0 | 0 | 0 |
Total non-current liabilities | 62,803 | 17,425 | 14,530 | 13,449 |
Current payables to banks | 16,340 | 1,712 | 0 | 193 |
Short-term lease liabilities | 3,541 | 2,405 | 324 | 261 |
Trade payables | 35,663 | 31,059 | 15,841 | 7,489 |
Tax payables | 586 | 2,060 | 252 | 0 |
Other current liabilities | 11,072 | 13,242 | 381 | 254 |
Total current liabilities | 67,202 | 50,478 | 16,798 | 8,197 |
Total liabilities | 130,005 | 67,903 | 31,328 | 21,646 |
Total equity and liabilities | 237,915 | 173,668 | 47,709 | 30,432 |
% ownership | 50% | 50% | 50% | 50% |
Goodwill | 1,033 | 1,033 | 0 | |
Other consolidation adjustments | (155) | (209) | (636) | 0 |
Carrying value of Group shareholding | 54,833 | 53,707 | 7,555 | 4,393 |
Associates
(euro thousand) | ||||
Petroceramics S.p.A. | Infibra Technologies S.r.l. | |||
31.12.2024 | 31.12.20223 | 31.12.2024 | 31.12.20223 | |
Revenue from contracts with customers | 2,905 | 2,316 | 302 | 606 |
Net result for the year | 586 | 454 | (175) | (54) |
% ownership | 20% | 20% | 20% | 20% |
Group net result | 117 | 91 | (35) | (11) |
Total current assets | 5,562 | 5,120 | 505 | 775 |
Total non-current assets | 3,108 | 3,160 | 290 | 278 |
Total current liabilities | 1,355 | 1,512 | 61 | 81 |
Total non-current liabilities | 288 | 299 | 116 | 129 |
Total equity | 7,027 | 6,469 | 618 | 843 |
% ownership | 20% | 20% | 20% | 20% |
Other consolidation adjustments | 0 | 0 | 624 | 624 |
Carrying value of Group shareholding | 1,405 | 1,294 | 748 | 793 |
4. Investments in Other Companies,Derivatives and Other Non-CurrentFinancial Assets
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Investments in other companies measured at fair value | 914 | 278,446 |
Investments in other companies measured at cost | 2,727 | 1,686 |
Derivatives measured at fair value | 8,998 | 20,385 |
Other securities | 53 | 447 |
Other | 2,512 | 2,464 |
Total | 15,204 | 303,428 |
The item \u201cInvestments in other companies measured at fair value\u201d consisted of the fair value of the 10.33% interest held in E-Novia S.p.A. amounting to \u20ac914 thousand. The change in value compared to 31 December 2023 was mainly due to the sale of the entire stake of ordinary shares of Pirelli & C. S.p.A. Brembo placed 55,800,000 Pirelli ordinary shares to institutional investors, equal to approximately 5.58% of the Company\u2019s issued share capital, at a price of \u20ac 5.07 per share for \u20ac282,906 thousands booked at fair value through other comprehensive income.
\u201cInvestments in other companies measured at cost\u201d also includes the 10% interest in International Sport Automobile S.\u00e0r.l. and the 1.20% interest in Fuji Co. The change of \u20ac1,041 thousand on 31 December 2023 was attributable to the Parent\u2019s interest in consortium funds intended for research for \u20ac45 thousand and to the acquisition of a the 2.11% in Spoke Safety, a U.S. startup
specializing in the development of digital communication technologies between vehicles and the road ecosystem, for \u20ac996 thousand.
The item \u201cDerivatives\u201d refers for \u20ac4,433 thousand to the fair value of derivative assets relating to a specific financial transaction hedging against the risk of fluctuation in the electricity price undertaken in 2021 by Brembo Poland Sp.Zo.o. and for \u20ac4,565 thousand to the non-current portion of the fair value of two IRSs entered into directly by the Parent Brembo N.V., for a remaining notional amount of \u20ac50 million and \u20ac175 million, respectively, at 31 December 2024, hedging the change in interest rate risk associated with a specific outstanding loan. These IRSs fall within the requirements set forth in the accounting standards relating to hedge accounting (cash flow hedge). The change in fair value compared to 31 December 2023 was recognized as a component of comprehensive income, net of the tax effect, given that the hedge is fully effective.
\u201cOther\u201d includes interest-free security deposits for utilities and car rental agreements.
5. Receivables and Other Non-current Assets
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Other non-current assets | 47,870 | 35,634 |
Income tax receivables | 5,024 | 6,075 |
Non-income tax receivables | 34 | 34 |
Total | 52,928 | 41,743 |
Item \u201cOther non-current assets\u201d refers to contributions towards clients for the acquisition of long-term exclusive supply arrangements, which were released to the Statement of Income in accordance with the supply schedule for the clients.
Income tax receivables mainly refer to tax credits that can be used beyond one year, granted on the purchase of new property, plant and equipment, and other tax credits for which refunds have been requested.
6. Deferred Tax Assets and Liabilities
The net balance of deferred tax assets and liabilities is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Deferred tax assets | 109,284 | 97,661 |
Deferred tax liabilities | (25,202) | (30,956) |
Total | 84,082 | 66,705 |
Deferred tax assets and liabilities were generated mainly due to temporary differences for capital gains with deferred taxation, other income items subject to future deductions or taxation, prior years\u2019 tax losses and other consolidation adjustments.
Movements for the year are reported in the following table:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Balance at beginning of period | 66,705 | 32,607 |
Deferred tax liabilities generated | (376) | (1,364) |
Deferred tax assets generated | 15,341 | 29,328 |
Use of deffered tax assets and liabilities | (4,446) | (1,520) |
Exchange rate fluctuations | 2,262 | (1,735) |
Other movements | 4,596 | 9,389 |
Balance at end of period | 84,082 | 66,705 |
The nature of temporary differences that generateddeferred tax assets and liabilities is detailed below:
(euro thousand) | ||||||
Assets | Liabilities | Net | ||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Property, plant, equipment and other equipment | 29,210 | 44,182 | 25,757 | 25,172 | 3,453 | 19,010 |
Development costs | 4,369 | 2,517 | 416 | 340 | 3,953 | 2,177 |
Goodwill and other indefinite useful life assets | 115 | 246 | 2,356 | 2,356 | (2,241) | (2,110) |
Other intangible assets | 602 | 530 | 8,082 | 9,063 | (7,480) | (8,533) |
Equity shareholdings | 0 | 38 | 0 | 803 | 0 | (765) |
Other financial assets | 2,042 | 0 | 111 | 99 | 1,931 | (99) |
Trade receivables | 6,168 | 6,074 | 0 | 0 | 6,168 | 6,074 |
Inventories | 20,621 | 18,657 | 0 | 0 | 20,621 | 18,657 |
Other receivables and current assets | 69 | 86 | 7,483 | 6,860 | (7,414) | (6,774) |
Financial liabilities | 64 | 56 | 2,258 | 4,460 | (2,194) | (4,404) |
Other financial liabilities | 11,908 | 8,696 | 236 | 159 | 11,672 | 8,537 |
Provisions | 8,544 | 7,651 | 172 | 695 | 8,372 | 6,956 |
Provisions for employee benefits | 11,365 | 9,088 | 1,523 | 1,435 | 9,842 | 7,653 |
Short/long-term lease liabilities | 53 | 699 | 0 | 0 | 53 | 699 |
Trade payables | 203 | 160 | 0 | 0 | 203 | 160 |
Cash and cash equivalents | 10 | 10 | 0 | 0 | 10 | 10 |
Other liabilities | 19,660 | 13,628 | 1,177 | 1,218 | 18,483 | 12,410 |
Other | 13,387 | 461 | 6,385 | 8,838 | 7,002 | (8,377) |
Tax losses | 11,648 | 15,424 | 0 | 0 | 11,648 | 15,424 |
Compensation balance | (30,754) | (30,542) | (30,754) | (30,542) | 0 | 0 |
Total | 109,284 | 97,661 | 25,202 | 30,956 | 84,082 | 66,705 |
Item \u201cTax losses\u201d refers to deferred tax assets on losses for the previous years recognized by Brembo Czech S.r.o. (\u20ac6,678 thousand), J.Jaun S.A.U. (\u20ac2,314 thousand), Brembo do Brasil Ltd. (\u20ac2,060 thousand) and SBS Friction A/S (\u20ac596 thousand), considering there to be a basis for the future recoverability of the tax assets in light of updated strategic plans.
It should also be noted that:
unrecognized deferred tax assets of Brembo do Brasil Ltda. \u2014 calculated on prior years\u2019 losses (BRL 63 million) eligible to be unlimitedly carried forward \u2014 amounted to BRL 21.42 million;
unrecognized deferred tax assets of J.Juan S.A.U. \u2014 calculated on prior years\u2019 losses (\u20ac8,488 thousand) eligible to be unlimitedly carried forward \u2014 amounted to \u20ac2,122 thousand;
Brembo Czech Sro. has three tax incentive plans, one of CZK 133.1 million (expiring in 2026), one of CZK 63.8 million (expiring in 2029) and another of CZK 367.0 million (expiring in 2031), on which the company did not recognize any deferred tax assets;
at 31 December 2024, deferred tax liabilities of \u20ac5,975 thousand were recognized on profits of subsidiaries, associates or joint ventures which the Group considers may be distributed in the foreseeable future;
at 31 December 2024, the temporary differences between the Parent\u2019s share of the net assets of the subsidiary, associate or investee company, including the book value of goodwill, and the value of the investment or shareholding (cost) (as indicated in \u00a738 of IAS 12) amounted to \u20ac1,321 million and were considered to be permanently reinvested, since these provisions are used to fund current transactions and future business growth in those countries in which the same subsidiary resides; as a result, no deferred tax liability was recognized on the taxable portion of such differences.
7. Inventories
A breakdown of net inventories, which are stated net of the inventory write-down provision, is shown below:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Raw materials | 249,033 | 228,060 |
Work in progress | 123,415 | 148,749 |
Finished products | 216,357 | 196,547 |
Goods in transit | 49,505 | 48,341 |
Total | 638,310 | 621,697 |
The change compared to 31 December 2023 was attributable to the higher cost of raw materials and greater volumes, as well as to a policy aimed at increasing the supply of inventories in order to tackle any supply chain-related risks. Movements in the inventory write-down provision are reported in the following table:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Balance at the beginningof period | 76,913 | 77,073 |
Provisions | 26,336 | 16,021 |
Use/Release | (15,375) | (16,267) |
Exchange rate fluctuations | 733 | 77 |
Reclassification | (112) | 9 |
Balance at end of period | 88,495 | 76,913 |
The inventory write-down provision was determined in order to align the cost of inventories to their estimated realisable value; the provision increased due to higher depreciation calculated on obsolete goods as a result of faster renewal of product ranges.
8. Trade Receivables
At 31 December 2024, the balance of account receivables from customers compared to the end of the previous year was as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Receivables from customers | 629,007 | 601,774 |
Receivables from associates and joint ventures | 2,388 | 3,103 |
Total | 631,395 | 604,877 |
The increase in trade receivables is mainly due to higher overdue receivables, which in any case did not entail any criticality.
The bad debt risk is not concentrated in any one area, as the Group has a client portfolio spread across the various geographical areas in which it operates.
Account receivables from customers are recognized net of the provision for bad debts, which amounted to \u20ac17,946 thousand. Movements in the provision for bad debts are shown below:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Balance at beginning of period | 8,455 | 7,285 |
Provisions | 11,273 | 2,734 |
Use/Release | (1,822) | (2,164) |
Exchange rate fluctuations | 40 | 148 |
Reclassifications | 0 | 452 |
Balance at end of period | 17,946 | 8,455 |
The increase of provision is related to legal restructuring proceeding with self-administration of a primary listed OE producer.
The Brembo Group\u2019s maximum credit risk exposure is
the book value of the gross financial assets recognized in the financial statements, net of any amounts offset in accordance with IAS 32 and any impairment losses recognized in accordance with IFRS 9.
It bears noting that Brembo has no credit insurance contracts as its credit risk is modest since its main business partners are leading car and motorbike manufacturers with high credit standing.
To mitigate commercial credit risk towards third parties, the Group applies procedures for assessing their financial solidity. These involve an analysis of the last three annual financial statements available, with the assignment of the relevant rating and commercial credit limit. Operating credit management is entrusted to a dedicated team that performs thorough checks on past-due accounts, involving the Sales Departments to which the customers are assigned as necessary.
To express the creditworthiness of financial assets the Group has elected to distinguish between clients who are listed or not listed on the stock exchange. Listed clients are those listed on a stock market, directly or indirectly controlled by a listed company or closely connected to listed companies.
(euro thousand) | 31.12.2024 | 31.12.2023 |
Listed clients | 539,604 | 516,571 |
Unlisted clients | 109,737 | 96,761 |
Total | 649,341 | 613,332 |
The following table provides details on trade receivables that have not been adjusted for impairment, broken down by maturity.
Listed clients
(euro thousand) | 31.12.2024 | Write-down 2024 | 31.12.2023 | Write-down 2023 |
Current | 466,543 | 3,260 | 485,074 | 0 |
Expired by up 30 days | 17,590 | 716 | 4,567 | 0 |
Overdue from 31 to 60 days | 16,871 | 915 | 9,162 | 0 |
Overdue more than 60 days | 38,600 | 8,737 | 17,768 | 5,815 |
Total | 539,604 | 13,628 | 516,571 | 5,815 |
% ratio of expired receivables not written down to total exposure | 11.6% | 5.0% | ||
Total expired receivables, not written down | 62,693 | 25,682 |
Unlisted clients
(euro thousand) | 31.12.2024 | Write-down 2024 | 31.12.2023 | Write-down 2023 |
Current | 96,389 | 0 | 82,496 | 0 |
Expired by up 30 days | 2,447 | 0 | 4,296 | 0 |
Overdue from 31 to 60 days | 3,730 | 0 | 3,052 | 32 |
Overdue more than 60 days | 7,171 | 4,318 | 6,917 | 2,608 |
Total | 109,737 | 4,318 | 96,761 | 2,640 |
% ratio of expired receivables not written down to total exposure | 8.2% | 12.0% | ||
Total expired receivables, not written down | 9,030 | 11,625 |
Expired receivables from listed clients mainly refer to primary OE customers (they also include the already mentioned credit under restructuring proceeding with self-administration of a primary OE producer); the repayment plans of the expired receivables, that have not been written down, were almost fully set at the beginning of 2025.
With regard to the portion of expired receivables from unlisted clients that have not been written down, most of this amount has already been collected in the first months of 2025.
9. Other Receivables and Current Assets
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Income tax receivables | 45,878 | 29,338 |
Non-income tax receivables | 63,247 | 39,224 |
Other receivables | 28,551 | 25,977 |
Total | 137,676 | 94,539 |
Item \u201cIncome tax receivables\u201d includes the receivable recognized by the Parent in prior years in relation to the application of an IRES refund, concerning the non-deductibility for IRAP purposes of personnel expenses, and other applications for IRES and IRAP refund, besides the R&D tax credit.
Item \u201cNon-income tax receivables\u201d primarily includes the VAT receivables of subsidiaries located in Poland and M\u00e9xico.
Item \u201cOther receivables\u201d includes dividends to be received by investees and advances paid to suppliers for goods and services, as well as other accrued income.
10. Derivatives and Other Current Financial Assets
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Other securities | 395 | 0 |
Derivatives measured at fair value | 23,985 | 12,949 |
Security deposits | 2,636 | 2,969 |
Other receivables | 99 | 128 |
Total | 27,115 | 16,046 |
The item \u201cDerivatives\u201d refers for \u20ac5,276 thousand to the current portion of the fair value of two IRSs entered into directly by the Parent Brembo N.V., for a remaining notional amount of \u20ac50 million and \u20ac175 million, respectively, at 31 December 2024, hedging the change in interest rate risk associated with a specific outstanding loan. These IRSs fall within the requirements set forth in the accounting standards relating to hedge accounting (cash flow hedge). The change in fair value compared to 31 December 2023 was recognized as a component of comprehensive income, net of the tax effect, given that the hedge is fully effective.
The item also includes the fair value of derivative assets relating to hedging through currency forwards for \u20ac18,709 thousand.
11. Cash and Cash Equivalents
Cash and cash equivalents include:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Bank and postal account | 867,066 | 509,935 |
Cash-in-hand and cash equivalents | 150 | 123 |
Total cash and cash equivalents | 867,216 | 510,058 |
Payables to banks: overdrafts | (261,621) | (164,191) |
Cash and cash equivalents from the Statement of Cash Flow | 605,595 | 345,867 |
The items listed above can be converted readily into cash and are not exposed to a significant risk that their value may change. It is deemed that the book value of cash and cash equivalents approximates their fair value at the reporting date. Cash is on deposit with credit institutions whose ratings are constantly monitored in order to select only financially sound counterparties.
The increase is mainly due to the sale of the share of Pirelli S.p.A., as mentioned in note 4.
In addition to the amount recognized in the Statement of Cash Flows, it should be noted that interest paid in the year totalled \u20ac52,804 thousand (\u20ac36,668 thousand in 2023). This interest does not include the \u20ac11,332 thousand positive differentials on the IRSs entered into to hedge against the change in interest-rate risk on the variable-rate loans.
12. Equity
Group consolidated equity at 31 December 2024 increased by \u20ac226,679 thousand compared to 31 December 2023. For further details, reference should be made to the paragraph \u201cSignificant events during the year\u201d. Movements are given in the relevant statement within the Consolidated Financial Report.
Share capital
The issued share capital amounted to \u20ac7,007 thousand at 31 December 2024. The table below shows the composition of the share capital and the number of shares outstanding at 31 December 2024:
Issued share capital (\u20ac) | No. of shares making up the share capital | No. of voting rights | |
Ordinary shares | 3,339,222.50 | 333,922,250 | 333,922,250 |
Special Voting Shares A (*) | 91,354.12 | 9,135,412 | 9,135,412 |
Special Voting Shares B (*) | 3,576,625.42 | 178,831,271 | 357,662,542 |
Total shares outstanding | 7,007,202.04 | 521,888,933 | 700,720,204 |
(*)For further information on the share capital, please see the Brembo website: Share Capital | Brembo Corporate. |
As part of its buy-back plan, in the first semester Brembo bought back 4,387,303 ordinary own shares (\u20ac57,456 thousand), which, together with the 10,664,557 ordinary own shares already held, represent 4.51% of the ordinary own shares.
Statutory reserve
The statutory reserve, created in 2024 from share capital decrease, is aimed to generate a reserve for future issued of special voting share, without any need to amend the Articles of Association.
Other reserves and retained earnings/(losses)
The General Shareholders\u2019 Meeting of the Parent Brembo N.V. held on 23 April 2024 approved the Financial Statements for the financial year ended 31 December 2023, allocating net income for the year amounting to \u20ac139,265,254.39 as follows:
to the Shareholders, a gross ordinary dividend of \u20ac0.30 per ordinary share outstanding, excluding own shares;
the remaining amount carried forward.
Minority interests
This item changed due to dividends paid to minorityshareholders, as well as to the change in consolidationdifferences.
13. Financial Debt and Derivatives
This item is broken down as follows:
(euro thousand) | ||||||
31.12.2024 | 31.12.2023 | |||||
Due within one year | Due after one year | Total | Due within one year | Due after one year | Total | |
Payables to banks: | ||||||
\u2013 overdrafts | 261,621 | 0 | 261,621 | 164,191 | 0 | 164,191 |
\u2013 loans | 163,673 | 574,236 | 737,909 | 108,078 | 487,615 | 595,693 |
Total | 425,294 | 574,236 | 999,530 | 272,269 | 487,615 | 759,884 |
Lease liabilities | 93,346 | 145,146 | 238,492 | 21,455 | 149,785 | 171,240 |
Payables to other financial institutions | 545 | 155 | 700 | 58,005 | 680 | 58,685 |
Derivatives measured at fair value | 1,607 | 2,574 | 4,181 | 160 | 0 | 160 |
Total | 95,498 | 147,875 | 243,373 | 79,620 | 150,465 | 230,085 |
The following table provides a breakdown of \u201cPayables to banks\u201d:
(euro thousand) | Amount at31.12.2023 | Amount at31.12.2024 | Portion due within one year | Portion due between 1 and 5 years | Portion due after 5 years |
Loans: | |||||
BNL loan (\u20ac100 million) | 75,288 | 50,143 | 25,149 | 24,994 | 0 |
BNL loan (\u20ac 200 million) | 205,009 | 174,849 | 49,930 | 124,919 | 0 |
Banca Popolare di Sondrio loan (\u20ac125 million) | 88,237 | 62,939 | 25,445 | 37,494 | 0 |
ISP loan (\u20ac100 milion) | 74,754 | 49,882 | 24,924 | 24,958 | 0 |
Banca Popolare di Sondrio loan (\u20ac150 million) | 149,786 | 149,849 | 37,439 | 112,410 | 0 |
Mediobanca loan (\u20ac100 million) | 0 | 99,761 | 0 | 88,656 | 11,105 |
Mediobanca loan (\u20ac150 million) | 0 | 149,840 | 140 | 149,700 | 0 |
Bankiter loan (\u20ac2 million) | 797 | 274 | 274 | 0 | 0 |
Banco Sabadell loan (\u20ac500 thousand) | 170 | 43 | 43 | 0 | 0 |
Santander loan (\u20ac2 million) | 354 | 51 | 51 | 0 | 0 |
Santander loan (\u20ac600 thousand) | 52 | 0 | 0 | 0 | 0 |
Santander 2020 loan (\u20ac2 million) | 689 | 174 | 174 | 0 | 0 |
Caixbank loan (\u20ac1 million) | 354 | 104 | 104 | 0 | 0 |
BBVA loan (\u20ac2 million) | 203 | 0 | 0 | 0 | 0 |
Total loans | 595,693 | 737,909 | 163,673 | 563,131 | 11,105 |
The most significant transactions finalized in 2024 includes the full draw-down of two medium-term loans of \u20ac100,000 thousand and \u20ac150,000 thousand contracted with Mediobanca.
It should be noted that several loans require compliance with certain financial covenants. At the end of the reporting year, all of these covenants had been met. The
current level of covenants allows the Group to benefit from a safety margin that does not entail the need to reclassify financial payables subject to such covenants as short-term financial payables. At 31 December 2024, there were no financial payables secured by collateral.
The following table shows the breakdown of \u201cOtherfinancial liabilities\u201d.
(euro thousand) | Amount at31.12.2023 | Amount at31.12.2024 | Portion due within one year | Portion due between 1 and 5 years | Portion due after 5 years |
Other financial liabilities: | |||||
Payables to other financial institutions: | |||||
Libra loan | 648 | 391 | 260 | 131 | 0 |
Payable due to liquidation of shares subject to withdrawal | 57,456 | 0 | 0 | 0 | 0 |
Ministerio Industria Espa\u00f1a | 500 | 257 | 257 | 0 | 0 |
Ministerio de Ciencia e Innovaci\u00d3n | 81 | 52 | 28 | 24 | 0 |
Total payables to other financial institutions | 58,685 | 700 | 545 | 155 | 0 |
Lease liabilities | 171,240 | 238,492 | 93,346 | 57,289 | 87,857 |
Total other financial liabilities | 229,925 | 239,192 | 93,891 | 57,444 | 87,857 |
At 31 December 2023, Brembo N.V. recognized a payable to the shareholders that validly exercized the right of withdrawal. Debt was repaid on 31 January 2024. For further information, reference should be made to section \u201cSignificant events during the year\u201d.
With regard to payments relating to optional lease renewal periods not included in the calculation of
liabilities at 31 December 2024, \u20ac 44,676 thousand of lease instalments, relating solely to properties and due beyond five years, were not subject to discounting.
The following table shows the structure of loans towardsbanks and other financial institutions, broken down byannual interest rate and currency:
(euro thousand) | ||||||
31.12.2024 | 31.12.2023 | |||||
Fixed rate | Variable rate | Total | Fixed rate | Variable rate | Total | |
Euro | 325,997 | 412,612 | 738,609 | 341,246 | 313,132 | 654,378 |
The average variable rate applicable to the Group\u2019s debt is 4.66% and the average fixed rate is 1.60%.
The item \u201cDerivatives\u201d includes the fair value relating to hedging through currency forward for \u20ac1,598 thousand and for \u20ac2,272 thousand to the fair value of derivative liability relating to a specific financial transaction hedging against the risk of fluctuation in the electricity price undertaken in 2024 by Brembo Poland Sp.Zo.o. It refers also for \u20ac311 thousand to the fair value of one IRS entered into directly by the Parent Brembo N.V., for a remaining notional amount of \u20ac100 million hedging the change in interest rate risk associated with a specific outstanding loan. This IRS falls within the requirements set forth in the accounting standards relating to hedge accounting (cash flow hedge). The change in fair value compared to 31 December 2023 was recognized as a component of comprehensive income, net of the tax effect, given that the hedge is fully effective.
At 31 December 2024, IRS derivatives had an overall positive fair value of \u20ac9,530 thousand, entirely recognized in a cash flow hedge reserve, gross of tax effects.
Changes in the Cash Flow Hedge Reserve, gross of tax effects, are as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Opening value | (29,873) | (75,643) |
Change in fair value reserve | (16,246) | 28,288 |
Change in reserve for payment/collection of differentials | 15,932 | 17,482 |
Closing value | (30,187) | (29,873) |
Net financial debt
The following table shows the reconciliation of the net financial debt at 31 December 2024 (\u20ac360,353 thousand) and at 31 December 2023 (\u20ac454,768 thousand) based on the layout prescribed by ESMA 32-382-1138 Guidelines of 4\u00a0March 2021:
(euro thousand) | 31.12.2024 | 31.12.2023 | |
A | Cash | 867,216 | 510,058 |
B | Cash equivalents | 0 | 0 |
C | Other current financial assets | 8,497 | 16,046 |
D | Liquidity (A + B + C) | 875,713 | 526,104 |
E | Current financial debt (including debt instruments, but excluding current portion of non-current financial debt) | 357,119 | 243,811 |
F | Current portion of non-current financial debt | 163,673 | 108,078 |
G | Current financial debt (E + F) | 520,792 | 351,889 |
H | Net current financial debt (G - D) | (354,921) | (174,215) |
I | Non-current financial debt (excluding current portion and debt instruments) | 715,274 | 628,983 |
J | Debt instruments | 0 | 0 |
K | Trade payables and other non-current payables | 0 | 0 |
L | Non-current financial debt (I + J + K) | 715,274 | 628,983 |
M | Total financial debt (H + L) | 360,353 | 454,768 |
The various components that gave rise to the change in net financial debt during the current year are presented in the Statement of Cash Flows in the Directors\u2019 Report.
Item \u201cNon-current financial debt (excluding the current portion and debt instruments)\u201d includes the non-current component of IRS derivatives amounting to \u20ac4,565 thousand.
Pursuant to IAS 7 \u2014 Statement of Cash Flows, changes in liabilities arising from financing activities are reported below. The table allows a reconciliation of the cash flows recognized in the Statement of Cash Flows in the Directors\u2019 Report and the total changes in the year of the Statement of Financial Position items that contribute to financial debt.
(euro thousand) | 31.12.2022 | Cash flows | |||||
Non-cash flow | |||||||
31.12.2023 | |||||||
Acquisitions | Exchange rate delta | FV | Other movements | ||||
Loans and payables to other financial institutions | 545,669 | 44,633 | 0 | 0 | 0 | 64,076 | 654,378 |
Lease liabilities | 241,196 | (92,590) | 16,054 | (3,545) | 0 | 10,125 | 171,240 |
Derivatives measured at fair value | 3,586 | 0 | 0 | 0 | (3,426) | 0 | 160 |
Total liabilities from financing activities | 790,451 | (47,957) | 16,054 | (3,545) | (3,426) | 74,201 | 825,778 |
(euro thousand) | 31.12.2023 | Cash flows | |||||
Non-cash flow | |||||||
31.12.2024 | |||||||
Acquisitions | Exchange rate delta | FV | Other movements | ||||
Loans and payables to other financial institutions | 654,378 | 83,612 | 0 | 0 | 0 | 619 | 738,609 |
Lease liabilities | 171,240 | (28,607) | 60,534 | 1,399 | 0 | 33,926 | 238,492 |
Derivatives measured at fair value | 160 | 0 | 0 | 0 | 4,021 | 0 | 4,181 |
Total liabilities from financing activities | 825,778 | 55,005 | 60,534 | 1,399 | 4,021 | 34,545 | 981,282 |
14. Other Non-current Liabilities
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Social security payables | 103 | 1,887 |
Payables to employees | 2,689 | 2,000 |
Other payables | 1 | 0 |
Total | 2,793 | 3,887 |
15. Provisions
This item is broken down as follows:
(euro thousand) | ||||||
31.12.2024 | 31.12.2023 | |||||
Provisions for contingencies and charges | Provision for product guarantees | Total | Provisions for contingencies and charges | Provision for product guarantees | Total | |
Balance at beginning of period | 19,052 | 14,766 | 33,818 | 9,557 | 16,042 | 25,599 |
Provisions | 3,256 | 4,287 | 7,543 | 7,563 | 4,253 | 11,816 |
Use/Release | (9,305) | (7,888) | (17,193) | (4,143) | (5,331) | (9,474) |
Exchange rate fluctuations | (56) | (47) | (103) | 151 | (198) | (47) |
Other | 1,738 | 0 | 1,738 | 5,924 | 0 | 5,924 |
Balance at the end of year | 14,685 | 11,118 | 25,803 | 19,052 | 14,766 | 33,818 |
of which short-term | 5,365 | 9,638 |
Provisions totalled \u20ac25,803 thousand, including a \u20ac11,118 thousand provision for product warranties for probable future costs linked to contractual warranties, supplemental customer indemnities \u2014 in connection with the Italian
agency contract \u2014 and the valuation of risks related to litigation underway, as well as an estimate of liabilities that could arise as a result of tax litigation in place.
16. Employee Benefits
Group companies provide post-employment benefits through defined contribution plans or defined benefit plans.
In the case of defined contribution plans, the Group companies pay contributions to public or private insurance institutes based on legal or contractual obligations or on a voluntary basis. Once such contributions have been paid, the companies have no further payment obligations.
Defined contribution plans include a plan relating to Brembo Huilian (Langfang) Brake Systems Co. Ltd. and reserved for 17 early retired employees, who have guaranteed monthly payments until they reach pension age.
The employees of the UK subsidiary AP Racing Ltd. have the benefit of a corporate pension plan (AP Racing Pension Scheme), which is made up of two sections: the first is a defined contribution plan for employees hired after 1 April 2001, and the second is a defined benefit plan for those already in service at 1 April 2001 (and previously covered by the AP Group Pension Fund). The defined benefit plan is funded by employer and employee contributions made to a trustee that is legally separate from the enterprise providing benefits to its employees.
Brembo M\u00e9xico S.A. de C.V., Brembo Japan Co. Ltd. and Brembo Brake India Pvt. Ltd. offer to their employees specific pension plans that qualify as defined benefit plans.
Defined benefit plans include also the \u201cEmployees\u2019 leaving entitlement\u201d provided by the Group\u2019s Italian companies, in accordance with current applicable regulations.
The value of defined benefit plans is calculated on an actuarial basis using the \u201cProjected Unit Credit Method\u201d.
Item \u201cOther employee benefits\u201d includes the liability associated with the 2022-2024 three-year incentive plan reserved for top managers, to be settled in May 2025.
Liabilities at 31 December 2024 are given in the table below:
(euro thousand) | ||||||||||
31.12.2024 | 31.12.2023 | |||||||||
Employees\u2019 leaving entitlement | Defined benefit plans | |||||||||
Defined contribution plans | Other long-term benefits | Total | Employees\u2019 leaving entitlement | Defined benefit plans | ||||||
Defined contribution plans | Other long-term benefits | Total | ||||||||
Balance at beginning of period | 12,598 | 4,232 | 614 | 19,001 | 36,445 | 12,350 | 3,698 | 924 | 7,114 | 24,086 |
Provisions | 0 | 906 | 5,046 | 11,269 | 17,221 | 0 | 802 | 3,060 | 12,156 | 16,018 |
Use/Release | (813) | (447) | (4,808) | (556) | (6,624) | (838) | (1,202) | (3,365) | 0 | (5,405) |
Interest expense | 406 | 357 | 0 | 535 | 1,298 | 478 | 305 | 0 | (214) | 569 |
Exchange rate fluctuations | 0 | (477) | 18 | 112 | (347) | 0 | 237 | (5) | (55) | 177 |
Other | (35) | (602) | 0 | 0 | (637) | 608 | 392 | 0 | 0 | 1,000 |
Balance at the end of year | 12,156 | 3,969 | 870 | 30,361 | 47,356 | 12,598 | 4,232 | 614 | 19,001 | 36,445 |
Defined benefit plans
(euro thousand) | |||||||||||
Unfunded plan (employees\u2019 leaving entitlement) | Funded Plan (AP Racing plan) | Brembo M\u00e9xico plan | Brembo Brake India plan | Brembo Japan plan | |||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | ||
A. | Change in defined benefit obligation | ||||||||||
1. | Defined benefit obligation at end of prior year | 12,598 | 12,350 | 25,509 | 24,701 | 3,697 | 2,718 | 2,124 | 1,827 | 307 | 307 |
2. | Service cost: | ||||||||||
Current service cost | 0 | 0 | 0 | 0 | 584 | 514 | 286 | 238 | 32 | 21 | |
3. | Interest expense | 406 | 478 | 1,231 | 1,237 | 315 | 268 | 147 | 130 | 3 | 3 |
4. | Cash flows: | ||||||||||
Benefit payments from plan | 0 | 0 | (1,080) | (878) | 0 | 0 | (11) | (16) | 0 | 0 | |
Benefit payments from employer | (813) | (838) | 0 | 0 | (266) | (62) | (39) | (37) | (30) | (4) | |
Other significant events: | |||||||||||
6. | Remeasurements: | ||||||||||
Effects of changes in demographic assumptions | 0 | 0 | (726) | (541) | 0 | 0 | 0 | (131) | 0 | 0 | |
Effects of changes in financial assumptions | (35) | 608 | (2,273) | 441 | (119) | 27 | 65 | 144 | 0 | 0 | |
Effects of experience adjustments (changes occurred since the previous measurement not in line with assumptions) | 0 | 0 | 191 | 42 | (225) | (110) | 27 | 54 | 0 | 0 | |
7. | Effect of changes in foreign exchange rates | 0 | 0 | 1,178 | 507 | (460) | 342 | 79 | (85) | (10) | (26) |
8. | Defined benefit obligations at end of year | 12,156 | 12,598 | 24,030 | 25,509 | 3,526 | 3,697 | 2,678 | 2,124 | 302 | 301 |
(euro thousand) | |||||||||||
Unfunded plan (employees\u2019 leaving entitlement) | Funded Plan (AP Racing plan) | Brembo M\u00e9xico plan | Brembo Brake India plan | Brembo Japan plan | |||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | ||
B. | Change in fair value of plan assets | ||||||||||
1. | Fair value of plan assets at end of prior year | 0 | 0 | 26,753 | 25,293 | 0 | 0 | 651 | 562 | 0 | 0 |
2. | Interest income | 0 | 0 | 1,292 | 1,291 | 0 | 0 | 47 | 42 | 0 | 0 |
3. | Cash flows: | ||||||||||
Total employer contributions: | |||||||||||
- employer contributions | 0 | 0 | 0 | 951 | 0 | 0 | 113 | 85 | 0 | 0 | |
- employer direct benefit payments | 815 | 838 | 0 | 0 | 266 | 62 | 41 | 37 | 0 | 0 | |
Benefit payments from plan | 0 | 0 | (1,080) | (878) | 0 | 0 | (11) | (16) | 0 | 0 | |
Benefit payments from employer | (815) | (838) | 0 | 0 | (266) | (62) | (41) | (37) | 0 | 0 | |
5. | Remeasurements: | ||||||||||
Return on plan assets (excluding interest income) | 0 | 0 | (2,466) | (427) | 0 | 0 | 4 | 9 | 0 | 0 | |
6. | Effect of changes in foreign exchange rates | 0 | 0 | 1,239 | 523 | 0 | 0 | 25 | (31) | 0 | 0 |
7. | Fair value of plan assets at end of year | 0 | 0 | 25,738 | 26,753 | 0 | 0 | 829 | 651 | 0 | 0 |
E. | Amounts recognized in the Statement of Financial Position | ||||||||||
1. | Defined benefit obligation | 12,156 | 12,598 | 24,030 | 25,509 | 3,526 | 3,697 | 2,678 | 2,124 | 302 | 301 |
2. | Fair value of plan assets | 0 | 0 | 25,738 | 26,753 | 0 | 0 | 829 | 651 | 0 | 0 |
3. | Funded status | 12,156 | 12,598 | (1,708) | (1,244) | 3,526 | 3,697 | 1,849 | 1,473 | 302 | 301 |
5. | Net liability (asset) | 12,156 | 12,598 | (1,708) | (1,244) | 3,526 | 3,697 | 1,849 | 1,473 | 302 | 301 |
F. | Components of defined benefit cost | ||||||||||
1. | Service cost: | ||||||||||
a. Current service cost | 0 | 0 | 0 | 0 | 584 | 514 | 286 | 238 | 32 | 21 | |
e.Total service cost | 0 | 0 | 0 | 0 | 584 | 514 | 286 | 238 | 32 | 21 | |
2. | Net interest expense: | ||||||||||
Interest expense on defined benefit plans | 406 | 478 | 1,231 | 1,237 | 315 | 268 | 147 | 130 | 3 | 3 | |
Interest (income) on plan assets | 0 | 0 | (1,292) | (1,291) | 0 | 0 | (47) | (42) | 0 | 0 | |
Total net interest expense | 406 | 478 | (61) | (54) | 315 | 268 | 100 | 88 | 3 | 3 | |
3. | Remeasurement on other long-term benefits | 0 | 0 | 0 | 0 | 0 | 0 | 4 | (48) | 0 | 0 |
5. | Defined benefit cost included in P&L | 406 | 478 | (61) | (54) | 899 | 782 | 390 | 278 | 35 | 24 |
6. | Remeasurements (recognized in Other Comprehensive Income) |
(euro thousand) | |||||||||||
Unfunded plan (employees\u2019 leaving entitlement) | Funded Plan (AP Racing plan) | Brembo M\u00e9xico plan | Brembo Brake India plan | Brembo Japan plan | |||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | ||
Effects of changes in demographic assumptions | 0 | 0 | (726) | (541) | 0 | 0 | 0 | (31) | 0 | 0 | |
Effects of changes in financial assumptions | (35) | 608 | (2,273) | 441 | (119) | 27 | 40 | 89 | 0 | 0 | |
Effects of experience adjustments (changes occurred since the previous measurement not in line with assumptions) | 0 | 0 | 191 | 42 | (225) | (110) | 49 | 57 | 0 | 0 | |
Return on plan assets (excluding interest income) | 0 | 0 | 2,466 | 427 | 0 | 0 | (5) | (9) | 0 | 0 | |
Total remeasurements included in OCI | (35) | 608 | (342) | 369 | (344) | (83) | 84 | 106 | 0 | 0 | |
7. | Total defined benefit cost recognized in P&L and OCI | 371 | 1,086 | (403) | 315 | 555 | 699 | 474 | 384 | 35 | 24 |
G. | Net defined benefit liability (asset) reconciliation | ||||||||||
1. | Net defined benefit liability (asset) | 12.598 | 12.350 | (1.244) | (592) | 3.697 | 2.718 | 1.473 | 1.265 | 307 | 307 |
2. | Defined benefit cost included in P&L | 406 | 478 | (61) | (54) | 899 | 782 | 390 | 278 | 35 | 24 |
3. | Total remeasurements included in OCI | (35) | 608 | (342) | 369 | (344) | (83) | 84 | 106 | 0 | 0 |
4. | Other significant events | ||||||||||
5. | Cash flows: | ||||||||||
Employer contributions | 0 | 0 | 0 | (951) | 0 | 0 | (113) | (85) | 0 | 0 | |
Employer direct benefit payments | (813) | (838) | 0 | 0 | (266) | (62) | (39) | (37) | (30) | (4) | |
7. | Effect of changes in foreign exchange rates | 0 | 0 | (61) | (16) | (460) | 342 | 54 | (54) | (10) | (26) |
8. | Net defined benefit liability (asset) at end of year | 12.156 | 12.598 | (1.708) | (1.244) | 3.526 | 3.697 | 1.849 | 1.473 | 302 | 301 |
H. | Defined benefit obligation | ||||||||||
1. | Defined benefit obligation by participant status: | ||||||||||
Actives | 12,156 | 12,584 | 0 | 0 | 3,526 | 3,697 | 2,678 | 2,124 | 0 | 0 | |
Vested deferred | 0 | 0 | 10,272 | 12,641 | 0 | 0 | 0 | 0 | 0 | 0 | |
Retirees | 0 | 0 | 13,758 | 12,868 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total | 12,156 | 12,584 | 24,030 | 25,509 | 3,526 | 3,697 | 2,678 | 2,124 | 0 | 0 | |
I. | Plan assets | ||||||||||
1. | Fair value of plan assets | ||||||||||
Cash and cash equivalents | 0 | 0 | 1,425 | 158 | 0 | 0 | 0 | 0 | 0 | 0 | |
Equity instruments | 0 | 0 | 3,936 | 8,410 | 0 | 0 | 0 | 0 | 0 | 0 |
(euro thousand) | |||||||||||
Unfunded plan (employees\u2019 leaving entitlement) | Funded Plan (AP Racing plan) | Brembo M\u00e9xico plan | Brembo Brake India plan | Brembo Japan plan | |||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | ||
Debt instruments | 0 | 0 | 3,163 | 4,071 | 0 | 0 | 0 | 0 | 0 | 0 | |
Derivatives | 0 | 0 | 15,257 | 8,461 | 0 | 0 | 0 | 0 | 0 | 0 | |
Investment funds | 0 | 0 | 1,957 | 5,653 | 0 | 0 | 0 | 0 | 0 | 0 | |
Assets held by insurance company | 0 | 0 | 0 | 0 | 0 | 0 | 829 | 651 | 0 | 0 | |
Total | 0 | 0 | 25,738 | 26,753 | 0 | 0 | 829 | 651 | 0 | 0 | |
2. | Fair value of assets that have quoted market prices | ||||||||||
Cash and cash equivalents | 0 | 0 | 1,425 | 158 | 0 | 0 | 0 | 0 | 0 | 0 | |
Equity instruments | 0 | 0 | 3,936 | 8,410 | 0 | 0 | 0 | 0 | 0 | 0 | |
Debt instruments | 0 | 0 | 3,163 | 4,071 | 0 | 0 | 0 | 0 | 0 | 0 | |
Derivatives | 0 | 0 | 15,257 | 8,461 | 0 | 0 | 0 | 0 | 0 | 0 | |
Investment funds | 0 | 0 | 1,957 | 5,653 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total | 0 | 0 | 25,738 | 26,753 | 0 | 0 | 0 | 0 | 0 | 0 | |
J. | Significant actuarial assumptions | ||||||||||
Weighted-average assumptions to determine benefit obligations | |||||||||||
1. | Discount rates | 3.30% | 3.40% | 5.55% | 4.80% | 11.00% | 9.25% | 6.90% | 7.30% | 0.50% | 0.50% |
2. | Duration used to set the discount rate (years) | N/A | N/A | 13.00 | 15.00 | 9.09 | 10.08 | 8.87 | 8.85 | N/A | N/A |
3. | Rate of salary increase | 0.00% | N/A | N/A | N/A | 4.50% | 4.50% | 10.00% | 10.00% | N/A | N/A |
4. | Pension increase rate | 0.00% | N/A | 3.00% | 3.00% | 0.00% | 0.00% | 0.00% | 0.00% | 2.50% | 2.50% |
5. | Rate of price inflation | 1.80% | 2.00% | 3.20% | 3.20% | 3.50% | 3.50% | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average assumptions to determine defined benefit cost | |||||||||||
1. | Discount rates | 3.40% | 4.10% | 4.80% | 5.00% | 9.25% | 9.25% | 7.30% | 7.60% | 0.50% | 0.50% |
2. | Rate of salary increase | 0.00% | N/A | N/A | N/A | 4.50% | 4.50% | 10.00% | 9.00% | N/A | N/A |
3. | Pension increase rate | 0.00% | N/A | 3.00% | 3.10% | 0.00% | 0.00% | 0.00% | 0.00% | N/A | N/A |
4. | Rate of price inflation | 2.00% | 2.40% | 3.20% | 3.30% | 3.50% | 3.50% | 0.00% | 0.00% | 0.00% | 0.00% |
K. | Sensitivity analysis | ||||||||||
Present value of defined benefit obligation | |||||||||||
Discount rate -25 basis points | 12,482 | 12,938 | 24,757 | 26,353 | 3,472 | 3,771 | 2,724 | 2,161 | N/A | N/A | |
Discount rate +25 basis points | 11,807 | 12,240 | 23,341 | 24,709 | 3,422 | 3,601 | 2,639 | 2,094 | N/A | N/A |
(euro thousand) | ||||||||||
Unfunded plan (employees\u2019 leaving entitlement) | Funded Plan (AP Racing plan) | Brembo M\u00e9xico plan | Brembo Brake India plan | Brembo Japan plan | ||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Rate of salary increase -25 basis points | 12,139 | 12,584 | 24,031 | 25,509 | 3,379 | 3,614 | 2,645 | 2,100 | N/A | N/A |
Rate of salary increase +25 basis points | 12,139 | 12,584 | 24,031 | 25,509 | 3,514 | 3,757 | 2,717 | 2,156 | N/A | N/A |
% impact on the defined benefit obligation | ||||||||||
Discount rate -25 basis points | 2.82% | 2.82% | 3.02% | 3.31% | 0.76% | 2.35% | 1.62% | 1.60% | 0.00% | 0.00% |
Discount rate +25 basis points | -2.74% | -2.74% | -2.87% | -3.14% | -0.69% | -2.27% | -1.57% | -1.55% | 0.00% | 0.00% |
Rate of salary increase -25 basis points | 0.00% | 0.00% | 0.00% | 0.00% | -1.94% | -1.92% | -1.32% | -1.31% | 0.00% | 0.00% |
Rate of salary increase +25 basis points | 0.00% | 0.00% | 0.00% | 0.00% | 2.00% | 1.97% | 1.35% | 1.34% | 0.00% | 0.00% |
Change in defined benefit obligation | ||||||||||
Discount rate -25 basis points | 342 | 354 | 726 | 843 | 26 | 87 | 43 | 34 | N/A | N/A |
Discount rate +25 basis points | (332) | (344) | (690) | (801) | (24) | (84) | (42) | (33) | N/A | N/A |
Rate of salary increase -25 basis points | 0 | 0 | 0 | 0 | (67) | (71) | (35) | (28) | N/A | N/A |
Rate of salary increase +25 basis points | 0 | 0 | 0 | 0 | 69 | 73 | 36 | 28 | N/A | N/A |
Duration of defined benefit obligation (in years) | ||||||||||
Weighted average duration of defined benefit obligation (in years) | 22.17 | 11.49 | 13.00 | 15.00 | 9.09 | 10.08 | 9.32 | 9.13 | N/A | N/A |
By applying a uniform change in the discount rate by +/-25 basis points, the consolidated liabilities would have been respectively lower/higher by approximately \u20ac1.29 million compared to the base liabilities value of \u20ac42.5 million. The average duration of the plans is 12.01 years.
17. Trade Payables
At 31 December 2024, trade payables were as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Trade payables | 683,402 | 724,217 |
Payables to associates and joint ventures | 14,172 | 17,882 |
Total | 697,574 | 742,099 |
18. Tax payables
This item reflects the net amount due for the current taxes of the Group\u2019s companies.
(euro thousand) | 31.12.2024 | 31.12.2023 |
Tax payables | 11,719 | 11,560 |
19. Contract Liabilities and Other Current Payables\t
At 31 December 2024, this item was broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Tax payables other than current tax | 15,607 | 12,190 |
Social security payables | 30,288 | 25,048 |
Payables to employees | 79,227 | 78,081 |
Contract liabilities | 80,347 | 75,461 |
Other payables | 41,454 | 34,935 |
Total | 246,923 | 225,715 |
Item \u201cContract liabilities\u201d refers to grants received by customers towards development activities suspended until the conclusion of the development activity and then recognized over the useful lives of the products to which the grants refer (2024: \u20ac17,010 thousand).
Consolidated Statement of Income
20. Revenue from Contracts with Customers
The item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Revenue from sales of brake systems | 3,773,756 | 3,788,929 |
Revenue from equipment | 32,332 | 33,435 |
Revenue from study and design acivities | 33,700 | 25,205 |
Revenue from royalties | 855 | 1,633 |
Total | 3,840,643 | 3,849,202 |
The breakdown of Group sales by geographical area of destination and by application is provided in the Directors\u2019 Report.
21. Other Revenues and Income
This item is made up of:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Miscellaneous recharges | 7,178 | 9,788 |
Gains on disposal of assets | 2,491 | 1,228 |
Miscellaneous grants | 27,853 | 29,316 |
Other revenues | 10,404 | 4,794 |
Total | 47,926 | 45,126 |
The item \u201cMiscellaneous grants\u201d refers to grants for personnel training, research and development projects and the purchase of new capital goods. Moreover, in 2024 Brembo N.V. and Brembo Poland Spolka Zo.o. recognized \u20ac21,024 thousand for grants relating to electricity and gas.
22. Costs for Capitalized Internal Works
This item refers to the capitalization of development costs incurred during the year, amounting to \u20ac31,497 thousand (2023: \u20ac28,601 thousand).
23. Cost of Raw Materials, Consumables and Goods
The item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Purchase of raw materials, semi-finished and finished products | 1,580,922 | 1,599,569 |
Purchase of consumables | 177,523 | 188,753 |
Total | 1,758,445 | 1,788,322 |
The change compared to 2023 is attributable to a policy aimed at increasing supplies in order to tackle any supply chain-related risks.
24. Income (Expense) from Non-Financial Investments
Income (expense) from non-financial investments amounted to \u20ac16,253 thousand and was attributable to the effects of valuing the investment in the BSCCB Group and the company Shandong BRGP Friction Technology Co. Ltd. using the equity method (\u20ac17,044 thousand in 2023).
25. Other Operating Costs
These costs are broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Transports | 98,337 | 93,693 |
Maintenance, repairs and utilities | 259,577 | 308,788 |
Contracted work | 158,437 | 153,379 |
Leases | 47,948 | 37,592 |
Other operating costs | 222,972 | 210,801 |
Total | 787,271 | 804,253 |
Item \u201cOther operating costs\u201d mainly includes the costs of travels, quality-related costs and insurance costs, as well as fees for legal, technical and commercial consulting.
26. Personnel Expenses
Breakdown of personnel expenses is as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Wages and salaries | 509,332 | 467,540 |
Social security contributions | 112,917 | 103,362 |
Employees' leaving entitlement and other personnel provisions | 18,582 | 15,875 |
Other costs | 88,716 | 94,843 |
Total | 729,547 | 681,620 |
Item \u201cOther costs\u201d refers for \u20ac55,703 thousand (\u20ac63,247 thousand in 2023) to the cost of the agency workers incurred by the Group.
The average number and the year-end number of Groupemployees by category were as follows:
Managers | White-collars | Blue-collars | Total | |
2024: average | 174 | 4,276 | 9,764 | 14,214 |
2023: average | 162 | 3,975 | 9,344 | 13,481 |
Changes | 12 | 301 | 420 | 733 |
Total at 31.12.2024 | 184 | 4,352 | 9,812 | 14,348 |
Total at 31.12.2023 | 162 | 4,109 | 9,383 | 13,654 |
Changes | 22 | 243 | 429 | 694 |
The number of agency workers at 31 December 2024 was1,113 (1,999 at 31 December 2023).
Please note that no employees work at companies with registered offices in the Netherlands, as the Group\u2019s actual and operating headquarter continues to be located in Italy.
27. Depreciation, Amortization and Impairment Losses
The item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Amortization of intangible assets: | ||
Development costs | 24,928 | 23,461 |
Industrial patents and similar rights for original work | 1,553 | 1,355 |
Licenses, trademarks and similar rights | 815 | 810 |
Other intangible assets | 11,367 | 11,332 |
Total | 38,663 | 36,958 |
Depreciation of property, plant and equipment: | ||
Buildings | 22,327 | 19,988 |
Plant and machinery | 146,684 | 138,746 |
Industrial and commercial equipment | 22,825 | 19,994 |
Other assets | 6,953 | 7,024 |
Right of use assets | 25,882 | 25,879 |
Total | 224,671 | 211,631 |
Imparment losses: | ||
Property, plant and equipment | 1,861 | 703 |
Intangible assets | 2,528 | 2,414 |
Total | 4,389 | 3,117 |
Total amortization, depreciation and impairment losses | 267,723 | 251,706 |
Comments on impairment losses are provided in the notesto the Statement of Financial Position items.
28. Net Interest Income (Expense)
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Exchange rate gains | 294,896 | 147,358 |
Interests income from employee's entitlement indemnity and other personnel provisions | 1,339 | 1,332 |
Interest income | 23,549 | 21,899 |
Total interest income | 319,784 | 170,589 |
Exchange rate losses | (307,404) | (161,309) |
Interests expense from employee's leaving entitlement and other personnel provisions | (2,102) | (2,115) |
Lease interest expense | (5,155) | (5,448) |
Interest expense | (43,696) | (36,045) |
Total interest expense | (358,357) | (204,917) |
Total net interest income (expense) | (38,573) | (34,328) |
Items \u201cExchange rate gains\u201d and \u201cExchange rate losses\u201d include the effects of the management of foreign exchange hedges undertaken through forward contracts for a negative amount of \u20ac 7,143 thousand. For contracts of this type, the Company does not opt to apply hedge accounting pursuant to IFRS 9 since there is no formal designation of the hedged item and hedging instrument, in the belief that the representation of the impact of the strategy for hedging this risk on the Statement of Income and Statement of Financial Position is nonetheless assured.
Net exchange differences as at 31 December 2024, amounting to a negative \u20ac12,508 thousand (negative for \u20ac13,951 thousand at 31 December 2023), relate mainly to the effect of translation into local currency of accounts receivable and payable in foreign currencies included in the financial statements of foreign subsidiaries.
29. Interest Income (Expense) from Investments
Net interest income from investments (excluding non-financial investments described in Note 24) amounted to \u20ac11,131 thousand (\u20ac12,256 thousand in 2023), and was mainly attributable to the dividends received by investees not included in the consolidation area and, for the remainder, to the effects of valuing investments in associates using the equity method.
30. Taxes
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Current taxes | 105,048 | 110,759 |
Deferred taxes (assets) and liabilities | (10,519) | (26,444) |
Prior years' taxes and other tax payables | 5,041 | 522 |
Total | 99,570 | 84,837 |
The following is a reconciliation of theoretical and actual tax burden:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Theoretical income taxes | 85,161 | 91,119 |
Prior years\u2019 taxes | 942 | (347) |
Other differences | 34,822 | 7,282 |
Tax incentive effects | (5,660) | (17,917) |
Unallocated DTA effect | (170) | (1,316) |
DTA adjustment effect | (21,843) | (396) |
Current and deferred taxes (excluding IRAP) | 93,252 | 78,425 |
Current and deferred IRAP | 6,318 | 6,412 |
Total | 99,570 | 84,837 |
The Group\u2019s actual tax rate is 27.2%, compared with a theoretical tax rate of 25.0% (at 31 December 2023: actual tax rate was 21,6%; theoretical tax rate was 24.9%).
31. Earnings Per Share
Basic earnings per share were \u20ac0.82 at 31 December 2024 (\u20ac0.94 at 31 December 2023), and were calculated by dividing the net income or loss for the year attributable to holders of ordinary equity instruments of the Parent by the weighted average number of ordinary shares outstanding in 2024, amounting to 319,230,990 (2023: 323,640,100). Diluted earnings per share are identical to basic earnings per share inasmuch as no diluting transactions were undertaken.
32 Statement of Comprehensive Income
The Statement of Comprehensive Income includes:
the fair value measurement of the interests in Pirelli S.p.A. and E-Novia S.p.A., net of the tax effect, positive for \u20ac4,729 thousand (positive for \u20ac50,885 thousand in 2023);
the fair value measurement of derivatives, net of the tax effect, positive for \u20ac4,113 thousand (negative for \u20ac39,239 thousand in 2023);
the actuarial value on defined benefit plans, net of the tax effect, positive for \u20ac542 thousand (negative for \u20ac816 thousand in the previous year);
the change in the translation adjustment reserve positive for \u20ac51,408 thousand (negative for \u20ac7,293 thousand in 2023).
Fair Value Measurement
To complete the disclosure of financial risks, the following information is provided:
the fair value hierarchy for the Group\u2019s assets and liabilities:
(euro thousand) | ||||||||
31.12.2024 | 31.12.2023 | |||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
Financial assets measured at fair value through profit or loss: | ||||||||
Current derivatives | 0 | 91 | 0 | 91 | 0 | 3,152 | 0 | 3,152 |
Hedging derivatives: | ||||||||
Current derivatives | 0 | 23,894 | 0 | 23,894 | 0 | 9,797 | 0 | 9,797 |
Non-current derivatives | 0 | 4,565 | 4,433 | 8,998 | 0 | 9,097 | 11,288 | 20,385 |
Total financial assets measured at fair value | 0 | 28,550 | 4,433 | 32,983 | 0 | 22,046 | 11,288 | 33,334 |
Financial liabilities measured at fair value: | ||||||||
Current derivatives | 0 | (1,598) | 0 | (1,598) | 0 | (160) | 0 | (160) |
Hedging derivatives: | ||||||||
Current derivatives | 0 | (9) | 0 | (9) | 0 | 0 | 0 | 0 |
Non-current derivatives | 0 | (302) | (2,272) | (2,574) | 0 | 0 | 0 | 0 |
Total financial liabilities measured at fair value | 0 | (1,909) | (2,272) | (4,181) | 0 | (160) | 0 | (160) |
Assets (liabilities) for which fair value is indicated: | ||||||||
Current and non-current payables to banks | 0 | (757,028) | 0 | (757,028) | 0 | (611,718) | 0 | (611,718) |
Current and non-current lease liabilities | 0 | (238,492) | 0 | (238,492) | 0 | (171,240) | 0 | (171,240) |
Other current and non-current financial liabilities | 0 | (700) | 0 | (700) | 0 | (58,685) | 0 | (58,685) |
Total assets (liabilities) for which fair value is indicated | 0 | (996,220) | 0 | (996,220) | 0 | (841,643) | 0 | (841,643) |
a reconciliation between the classes of financial assets and liabilities identified in the Group\u2019s Statement of Financial Position and the types of financial assets and
liabilities identified based on the requirements of IFRS\u00a07:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Financial assets | ||
Financial assets at fair value through profit or loss | ||
Other financial assets at fair value through profit or loss | 0 | 0 |
Current derivatives | 91 | 3,152 |
Financial assets at amortized cost | ||
Other non-current receivables | 53,197 | 40,264 |
Current trade receivables | 631,395 | 604,877 |
Other current receivables | 94,533 | 68,299 |
Cash and cash equivalents | 867,216 | 510,058 |
Financial assets measured at fair value through other comprehensive income (FVOCI) | ||
Other financial assets at fair value through other comprehensive income | 914 | 278,446 |
Hedging derivatives | ||
Current derivatives | 23,894 | 3,797 |
Non-current derivatives | 8,998 | 20,385 |
Total financial assets | 1,680,238 | 1,529,278 |
Financial liabilities | ||
Financial liabilities at fair value through profit or loss | ||
Current derivatives | (1,598) | (160) |
Non-current derivatives | 0 | 0 |
Financial liabilities measured at amortized cost | ||
Non-current payables to banks and other financial institutions (excluding lease payables) | (574,391) | (488,295) |
Other non-current payables | (2,793) | (3,887) |
Current payables to banks and other financial institutions (excluding lease payables) | (425,839) | (330,274) |
Trade payables | (697,574) | (742,099) |
Other current payables | (166,576) | (150,254) |
Lease payables | ||
Long-term lease liabilities | (145,146) | (149,785) |
Current lease payables | (93,346) | (21,455) |
Hedging derivatives | ||
Non-current derivatives | (2,574) | 0 |
Current derivatives | (9) | 0 |
Total financial liabilities | (2,109,846) | (1,886,209) |
The approach used to calculate fair value is the present value of the future cash flows expected to derive from the instrument being measured, determined by discounting the scheduled instalments at a rate equal to the forward rate curve applicable to each account payable. In detail:
loans and payables to other lenders with a duration of more than 12 months were measured at fair value determined by applying the forward rates curve to the residual duration of the loan;
receivables, trade payables, held-to-maturity financial assets, and payables and receivables to and from banks due within 12 months were measured at their carrying amounts, inasmuch as this is believed to approximate fair values;
the fair value of derivatives was determined on the basis of valuation techniques that take into account observable market parameters other than the prices of the financial instrument.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__48": { "value": "Segment report
Based on the IFRS 8 definition, an operating segment is a component of an entity:
that engages in business activities from which it may earn revenues and incur expenses;
whose operating results are reviewed regularly by the entity\u2019s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and
for which discrete financial information is available.
In light of such definition, the Brembo Group\u2019s operating segments are five GBUs (Global Business Units): Discs, Systems, Motorbikes, Performance Group, Aftermarket.
Each GBU Director reports to the top management and periodically discusses with them operating activities, financial statements results, forecasts or plans.
The Group thus aggregated the operating segments as follows for the purposes of financial reporting:
Discs \u2013 Systems \u2013 Motorbikes;
Aftermarket \u2013 Performance Group.
The segments that are included in each aggregate are similar in terms of:
the nature of products (braking systems);
the nature of production processes (melting process, subsequent processing for finishing and assembly);
the type of customers (manufacturers for Group 1 and distributors for Group 2);
the methods used to distribute the products (targeted to manufacturers for Group 1 and through distribution chains for Group 2);
the economic characteristics (gross manufacturing margin percentage for Group 1 and gross operating income for Group 2).
Transfer prices applied to transactions between segments for the exchange of goods and services are settled according to usual market conditions.
In light of the requirements of IFRS 8 in terms of revenues earned from major customers, where a single customer is defined as all companies that belong to a given Group, Brembo had one customer in the segment Discs/Systems/Motorbikes who, in 2024, accounted for approximately 12% of consolidated net revenues; considering the individual car manufacturers that compose such group, no one of them exceeded this threshold.
The following table shows segment information on sales of goods and services and results at 31 December 2024 and 31 December 2023:
(euro thousand) | ||||||||||
Total | Discs/Systems/Motorbikes | Aftermarket/Performance Group | Interdivision | Non-segment data | ||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Sales | 3,930,187 | 3,933,310 | 3,231,946 | 3,330,114 | 745,405 | 650,978 | (8,834) | (5,994) | (38,330) | (41,788) |
Allowances and discounts | (98,245) | (79,817) | (11,568) | (10,434) | (86,675) | (69,377) | 0 | 0 | (2) | (6) |
Net sales | 3,831,942 | 3,853,493 | 3,220,378 | 3,319,680 | 658,730 | 581,601 | (8,834) | (5,994) | (38,332) | (41,794) |
Transport costs | 30,190 | 28,557 | 17,744 | 18,086 | 12,409 | 10,422 | 0 | 0 | 37 | 49 |
Variable production costs | 2,381,516 | 2,446,822 | 2,038,606 | 2,138,880 | 389,174 | 361,741 | (8,805) | (5,981) | (37,459) | (47,818) |
Contribution margin | 1,420,236 | 1,378,114 | 1,164,028 | 1,162,714 | 257,147 | 209,438 | (29) | (13) | (910) | 5,975 |
Fixed production costs | 557,673 | 520,578 | 518,228 | 488,474 | 37,369 | 30,080 | 0 | 0 | 2,076 | 2,024 |
Production gross operating income | 862,563 | 857,536 | 645,800 | 674,240 | 219,778 | 179,358 | (29) | (13) | (2,986) | 3,951 |
BU personnel costs | 289,362 | 258,476 | 171,473 | 161,358 | 90,695 | 74,938 | (29) | (12) | 27,223 | 22,192 |
BU gross operating income | 573,201 | 599,060 | 474,327 | 512,882 | 129,083 | 104,420 | 0 | (1) | (30,209) | (18,241) |
Costs for Central Functions | 198,227 | 187,263 | 145,321 | 136,756 | 21,081 | 18,561 | 0 | 0 | 31,825 | 31,946 |
Operating income (loss) | 374,974 | 411,797 | 329,006 | 376,126 | 108,002 | 85,859 | 0 | (1) | (62,034) | (50,187) |
Extraordinary costs and revenues | 6,395 | 5,453 | 0 | 0 | 0 | 0 | 0 | 0 | 6,395 | 5,453 |
Financial costs and revenues | (28,898) | (23,375) | 0 | 0 | 0 | 0 | 0 | 0 | (28,898) | (23,375) |
Income (expense) from investments | 16,335 | 17,124 | 0 | 0 | 0 | 0 | 0 | 0 | 16,335 | 17,124 |
Non-operating costs and revenues | (2,915) | (18,863) | 0 | 0 | 0 | 0 | 0 | 0 | (2,915) | (18,863) |
Result before taxes | 365,891 | 392,136 | 329,006 | 376,126 | 108,002 | 85,859 | 0 | (1) | (71,117) | (69,848) |
Taxes | (99,570) | (84,837) | 0 | 0 | 0 | 0 | 0 | 0 | (99,570) | (84,837) |
Result before minority interests | 266,321 | 307,299 | 329,006 | 376,126 | 108,002 | 85,859 | 0 | (1) | (170,687) | (154,685) |
Minority interests | (3,718) | (2,260) | 0 | 0 | 0 | 0 | 0 | 0 | (3,718) | (2,260) |
Net result | 262,603 | 305,039 | 329,006 | 376,126 | 108,002 | 85,859 | 0 | (1) | (174,405) | (156,945) |
Group EBITDA | 612,283 | 635,034 | 546,279 | 582,603 | 121,835 | 98,142 | 0 | 0 | (55,831) | (45,711) |
A reconciliation between the annual Consolidated Financial Statements and the above information is provided below:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Revenue from contracts with customers | 3,840,643 | 3,849,202 |
Scrap sales (in the segment report they are subtracted from \"Variable production costs\") | (27,711) | (27,521) |
Differences between internal and statutory reports relating to developments activities | 4,849 | 18,897 |
Capital gains on sale of equipment (in the Consolidated Financial Statements they are included in \"Other revenues and income\") | 778 | 422 |
Effect of adjustment of transactions among consolidated companies | 390 | (290) |
Miscellaneous recharges (in the Consolidated Financial Statements they are included in \"Other revenues and income\") | 1,877 | 1,653 |
Other | 11,116 | 11,130 |
Net sales | 3,831,942 | 3,853,493 |
(euro thousand) | 31.12.2024 | 31.12.2023 |
NET OPERATING INCOME | 393,333 | 414,072 |
Differences between internal and statutory reports relating to developments activities | 808 | 16,171 |
Other differences between internal and statutory reports | (497) | 690 |
Income (expense) from non-financial investments | (16,253) | (17,044) |
Claim compensation and subsidies | (4,485) | (4,156) |
Capital gains/losses on disposal of assets (in the segment report they are included in \"Non-operating costs and revenues\") | 320 | (574) |
Different classification of banking expenses (in the segment report they are included in \"Financial costs and revenues\") | 1,374 | 1,421 |
Reclassification of Brembo Argentina | 0 | (62) |
Other | 374 | 1,279 |
OPERATING RESULT | 374,974 | 411,797 |
The breakdown of Group sales by geographical area of destination and by application is provided in the paragraph 2.5.1.
Statement of Financial Position data at 31 December 2024 and 31 December 2023 are provided in the tables below:
(euro thousand) | ||||||||||
Total | Discs/Systems/Motorbikes | Aftermarket/Performance Group | Interdivision | Non-segment data | ||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Tangible assets | 1,774,996 | 1,522,879 | 1,619,178 | 1,377,799 | 103,349 | 82,157 | 5 | 5 | 52,464 | 62,918 |
Intangible assets | 202,413 | 196,309 | 176,871 | 174,268 | 20,797 | 19,562 | 0 | 0 | 4,745 | 2,479 |
Financial assets and other non-current assets/liabilities | 161,983 | 138,427 | 548 | 3,756 | 0 | 0 | 0 | 0 | 161,435 | 134,671 |
Total fixed assets (A) | 2,139,392 | 1,857,615 | 1,796,597 | 1,555,823 | 124,146 | 101,719 | 5 | 5 | 218,644 | 200,068 |
Inventories | 638,015 | 621,359 | 451,945 | 461,134 | 185,198 | 159,301 | 0 | 0 | 872 | 924 |
Current assets | 780,800 | 716,387 | 560,672 | 537,329 | 92,169 | 75,964 | (35,612) | (27,086) | 163,571 | 130,180 |
Current liabilities | (967,651) | (996,007) | (564,755) | (611,448) | (172,423) | (160,951) | 35,612 | 27,086 | (266,085) | (250,694) |
Provisions for contingencies and charges and other provisions | (50,205) | (62,275) | (143) | (116) | 0 | 0 | 0 | 0 | (50,062) | (62,159) |
Net working capital (B) | 400,959 | 279,464 | 447,719 | 386,899 | 104,944 | 74,314 | 0 | 0 | (151,704) | (181,749) |
NET INVESTED OPERATING CAPITAL (A + B) | 2,540,351 | 2,137,079 | 2,244,316 | 1,942,722 | 229,090 | 176,033 | 5 | 5 | 66,940 | 18,319 |
Extraordinary components | 197,175 | 453,532 | 0 | 0 | 0 | 0 | 0 | 0 | 197,175 | 453,532 |
NET INVESTED CAPITAL | 2,737,526 | 2,590,611 | 2,244,316 | 1,942,722 | 229,090 | 176,033 | 5 | 5 | 264,115 | 471,851 |
Total Group equity | 2,294,474 | 2,067,795 | 0 | 0 | 0 | 0 | 0 | 0 | 2,294,474 | 2,067,795 |
Total Minority interests | 35,343 | 31,624 | 0 | 0 | 0 | 0 | 0 | 0 | 35,343 | 31,624 |
Equity (D) | 2,329,817 | 2,099,419 | 0 | 0 | 0 | 0 | 0 | 0 | 2,329,817 | 2,099,419 |
Provisions for employee benefits (E) | 47,356 | 36,445 | 0 | 0 | 0 | 0 | 0 | 0 | 47,356 | 36,445 |
Medium/long-term financial debt | 715,274 | 628,983 | 0 | 0 | 0 | 0 | 0 | 0 | 715,274 | 628,983 |
Short-term financial debt | (354,921) | (174,236) | 0 | 0 | 0 | 0 | 0 | 0 | (354,921) | (174,236) |
Net financial debt (F) | 360,353 | 454,747 | 0 | 0 | 0 | 0 | 0 | 0 | 360,353 | 454,747 |
COVERAGE (d + e + f) | 2,737,526 | 2,590,611 | 0 | 0 | 0 | 0 | 0 | 0 | 2,737,526 | 2,590,611 |
The following should be noted in regard to the non-segment data:
intangible assets mainly consist of development costs;
financial assets are not allocated; they mainly refer to the value of shareholdings in associates, joint ventures and other companies;
current assets and liabilities mainly consist of trade receivables and payables;
provisions for contingencies and charges and other provisions are not allocated.
Related Parties
The Group carries out transactions with parents, subsidiaries, associates, joint ventures, directors, key management personnel and other related parties. The Parent Brembo N.V. is a subsidiary of Nuova FourB S.r.l., which holds 76.56% of voting rights. Brembo did not engage in dealings with its parent in 2024, except for the dividend distribution.
Information pertaining to the compensation paid to
Directors and Statutory Auditors of Brembo N.V. and of other Group companies and additional information required is reported in the Explanatory notes to the Separate Financial Statements of Brembo N.V.
Sales of products, supply of services and the transfer of fixed assets between Group companies were carried out at prices reflecting fair market conditions. The trading volumes reflect the internationalization process aimed at
constantly improving both operating and organizational standards and optimising synergies within the Company. From a financial standpoint, the subsidiaries operate independently, although some benefit from various forms of centralized financing. Since 2008, a zero-balance cash-pooling system has been effective, with Brembo N.V. as the pool leader. In 2013, an additional cash pooling arrangement was put in place, denominated in CNY, with Brembo Nanjing Brake Systems Co. Ltd. as pooler
and Brembo Nanjing Automobile Components Co. Ltd., Qingdao Brembo Trading Co. Ltd., Brembo Huilian (Langfang) Brake Systems Co. Ltd. and Jiaxing Ciju Control Systems Co. Ltd. The cash pooling is entirely based in China, and Citibank China is the service provider.
The following table provides a summary of related party transactions with reference to balances of the Statement of Financial Position and Statement of Income:
(euro thousand) | ||||||||||||||
31.12.2024 | 31.12.2023 | |||||||||||||
Carrying value | Total | Key management personnel | Other companies | Joint ventures | Associates | % | Carrying value | Total | Key management personnel | Other companies | Joint ventures | Associates | % | |
a)\tWeight of transactions or positions with related parties on items of the Statement of Financial Position | ||||||||||||||
Trade receivables | 631,395 | 2,400 | 7 | 5 | 2,297 | 91 | 0.4% | 604,877 | 3,121 | 10 | 8 | 2,998 | 105 | 0.5% |
Other non-current liabilities | (2,793) | 0 | 0 | 0 | 0 | 0 | 0.0% | (3,887) | (628) | (628) | 0 | 0 | 0 | 16.2% |
Employee benefits | (47,356) | (11,377) | (13,085) | 1,708 | 0 | 0 | 24.0% | (36,445) | (7,151) | (8,395) | 1,244 | 0 | 0 | 19.6% |
Trade payables | (697,574) | (14,594) | 0 | (422) | (13,855) | (317) | 2.1% | (742,099) | (21,160) | (161) | (3,117) | (17,301) | (581) | 2.9% |
Other current liabilities | (166,576) | (4,678) | (4,548) | 0 | (130) | 0 | 2.8% | (150,254) | (3,920) | (3,787) | 0 | (133) | 0 | 2.6% |
b)\tWeight of transactions or positions with related parties on items of the Statement of Income | ||||||||||||||
Revenue from contracts with customers | 3,840,643 | 794 | 0 | 5 | 789 | 0 | 0.0% | 3,849,202 | 450 | 0 | 5 | 445 | 0 | 0.0% |
Other revenues and income | 47,926 | 4,493 | 27 | 11 | 4,255 | 200 | 9.4% | 45,126 | 4,689 | 18 | 9 | 4,452 | 210 | 10.4% |
Raw materials, consumables and goods | (1,758,445) | (104,308) | 0 | (25) | (104,232) | (51) | 5.9% | (1,788,322) | (76,706) | 0 | (11) | (76,300) | (395) | 4.3% |
Income (expense) from non-financial investments | 16,253 | 16,253 | 0 | 0 | 16,253 | 0 | 100.0% | 17,044 | 17,044 | 0 | 0 | 17,044 | 0 | 100.0% |
Other operating costs | (787,271) | (12,269) | (7,174) | (1,381) | (3,263) | (451) | 1.6% | (804,253) | (12,566) | (7,821) | (1,124) | (3,218) | (403) | 1.6% |
Personnel expenses | (729,547) | (6,332) | (6,235) | (97) | 0 | 0 | 0.9% | (681,620) | (7,285) | (7,130) | (155) | 0 | 0 | 1.1% |
Net interest income (expense) | (38,573) | (209) | (288) | 0 | (3) | 82 | 0.5% | (34,328) | 248 | 174 | 0 | (6) | 80 | -0.7% |
Interest income (expense) from investments | 11,131 | 11,048 | 0 | 11,048 | 0 | 0 | 99.3% | 12,256 | 12,164 | 0 | 12,164 | 0 | 0 | 99.2% |
Information About the Group
The key figures of Group companies are commented upon in the sections of the Directors\u2019 Report on Operations \u201cGroup Structure\u201d and \u201cPerformance of Brembo Companies\u201d.
Company | Headquarters | Share capital | Stake held by group companies | |||
Brembo N.V. | Bergamo | Italy | Eur | 7,007,202 | ||
AP Racing Ltd. | Coventry | United Kingdom | Gbp | 135,935 | 100% | Brembo N.V. |
AP Racing North America Corp. | Huntersville, North Carolina | USA | Usd | 300,000 | 100% | AP Racing Ltd. |
Brembo Australia Pty Ltd. | Melbourne | Australia | Aus | 300,000 | 100% | Brembo N.V. |
Brembo Czech S.r.o. | Ostrava-Hrabov\u00e1 | Czech Republic | Czk | 605,850,000 | 100% | Brembo N.V. |
Brembo Deutschland GmbH | Leinfelden-Echterdingen | Germany | Eur | 25,000 | 100% | Brembo N.V. |
Brembo France SAS | Paris | France | Eur | 50,000 | 100% | Brembo N.V. |
Brembo Inspiration Lab Corp. | Sunnyvale, California | USA | Usd | 300,000 | 100% | Brembo N.V. |
Brembo Japan Co. Ltd. | Tokyo | Japan | Jpy | 11,000,000 | 100% | Brembo N.V. |
Brembo Nanjing Brake Systems Co. Ltd. | Nanjing | China | Cny | 492,030,169 | 100% | Brembo N.V. |
Brembo North America Inc. | Plymouth, Michigan | USA | Usd | 33,798,805 | 100% | Brembo N.V. |
Brembo Poland Spolka Zo.o. | D\u0105browa G\u00f3rnicza | Poland | Pln | 144,879,500 | 100% | Brembo N.V. |
Brembo Poland Manufacturing Sp. Zo.o. | D\u0105browa G\u00f3rnicza | Poland | Pln | 50,000,000 | 100% | Brembo Poland Spolka Zo.o. |
Brembo Poland Heratech Sp. Zo.o. | D\u0105browa G\u00f3rnicza | Poland | Pln | 5,000 | 100% | Brembo Poland Spolka Zo.o. |
Brembo Reinsurance AG | Z\u00dcrich | Switzerland | Eur | 6,148,533 | 100% | Brembo N.V. |
Brembo Russia LLC | Moscow | Russia | Rub | 1,250,000 | 100% | Brembo N.V. |
Brembo Scandinavia A.B. | G\u00f6teborg | Sweden | Sek | 4,500,000 | 100% | Brembo N.V. |
J.Juan S.A.U. | Barcelona | Spain | Eur | 150,260 | 100% | Brembo N.V. |
Jiaxing Ciju Control Systems Co. Ltd. | Jiaxing | China | Cny | 16,309,640 | 100% | J.Juan S.A.U. |
Company | Headquarters | Share capital | Stake held by group companies | |||
La.Cam (Lavorazioni Camune) S.r.l. | Stezzano | Italy | Eur | 100,000 | 100% | Brembo N.V. |
Qingdao Brembo Trading Co. Ltd. | Qingdao | China | Cny | 1,365,700 | 100% | Brembo N.V. |
Brembo (Nanjing) Automobile Components Co. Ltd. | Nanjing | China | Cny | 226,565,500 | 60% | Brembo N.V. |
40% | Brembo Brake India Pvt. Ltd. | |||||
SBS Friction A/S | Svendborg | Denmark | Dkk | 12,001,000 | 60% | Brembo N.V. |
40% | Brembo Brake India Pvt. Ltd. | |||||
Brembo Mexico S.A. de C.V. | Apodaca | Mexico | Usd | 20,428,836 | 49% | Brembo N.V. |
51% | Brembo North America Inc. | |||||
Brembo Brake India Pvt. Ltd. | Pune | India | Inr | 140,000,000 | 99.99% | Brembo N.V. |
Brembo do Brasil Ltda. | Betim | Brazil | Brl | 159,136,227 | 99.99% | Brembo N.V. |
Brembo Thailand Ltd. | Rayong | Thailand | Thb | 273,280,000 | 99.99% | Brembo N.V. |
Corporaci\u00d3n Upwards \u201898 S.A. | Zaragoza | Spain | Eur | 498,043 | 68% | Brembo N.V. |
Brembo Huilian (Langfang) Brake Systems Co. Ltd. | Langfang | China | Cny | 170,549,133 | 66% | Brembo N.V. |
Shandong BRGP Friction Technology Co. Ltd. | Jinan | China | Cny | 124,900,000 | 50% | Brembo N.V. |
Brembo SGL Carbon Ceramic Brakes S.p.A. | Stezzano | Italy | Eur | 4,000,000 | 50% | Brembo N.V. |
Brembo SGL Carbon Ceramic Brakes GmbH | Meitingen | Germany | Eur | 25,000 | 100% | Brembo SGL Carbon Ceramic Brakes S.p.A. |
Infibra Technologies S.r.l. | Pisa | Italy | Eur | 53,133 | 20% | Brembo N.V. |
Petroceramics S.p.A. | Stezzano | Italy | Eur | 123,750 | 20% | Brembo N.V. |
Independent Auditors\u2019 Fees
Details on the fees paid to the independent audit firm and other companies within its network are provided below:
Deloitte Accountants B.V. | Other Deloitte member firms and affilitates | |||
(euro thousand) | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 |
Independent Auditors\u2019 fees for the provision of audit services: | ||||
\u2013 to the Parent Brembo N.V. | 293 | 0 | 246 | 270 |
\u2013 to the subsidiaries (services provided by the network) | 0 | 0 | 510 | 573 |
Independent Auditors\u2019 fees for the provision of auditing services for issuing attestation: | ||||
\u2013 to the Parent Brembo N.V. | 95 | 0 | 35 | 65 |
\u2013 to the subsidiaries (services provided by the network) | 0 | 0 | 43 | 61 |
Commitments
Contractual commitments for investments in property, plant and equipment and intangible assets already entered into with third parties at 31 December 2024 and not yet recognized in the Consolidated Financial Statements amounted to \u20ac504 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__52": { "value": "Positions or Transactions from Atypical and/or Unusual Operations
It is hereby specified that during 2024 the Company did not carry out any atypical and/or unusual transactions, as defined by the said Notice.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExceptionalItemsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__53": { "value": "Significant Events After 31 December 2024
On 2 January 2025, Brembo, further to the announcement made on 11 October 2024, completed the acquisition of a 100% stake in \u00d6hlins Racing, the leading manufacturer of premium, high-performance suspension technology for motorcycles and cars in the Original Equipment, Motorsport, and Aftermarket segments. The value of the transaction corresponds to an enterprise value of $405 million, on a cash free/debt free basis, subject to the customary adjustment mechanisms which will be completed within the next 135 days. The payment of the consideration was made entirely using available cash.
No other significant events occurred after 31 December 2024 and up to 18 March 2025.
5.2.4 Analysis of each item
Statement of Financial Position
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__54": { "value": "1. Property, plant, equipment and right of use assets
Property, Plant and Equipment
The changes in property, plant and equipment are shownin the table below and described in this section.
(euro thousand) | Land | Buildings | Plant and machinery | Industrial and commercial equipment | Other assets | Assets in course of construction and payments on account | Total |
Historical cost | 37,789 | 467,765 | 1,767,495 | 298,789 | 86,515 | 138,809 | 2,797,162 |
Accumulated depreciation | 0 | (184,504) | (1,168,763) | (252,216) | (63,692) | 0 | (1,669,175) |
Write-down provision | 0 | 0 | (2,128) | (18) | (10) | (120) | (2,276) |
Balance at 1 January 2023 | 37,789 | 283,261 | 596,604 | 46,555 | 22,813 | 138,689 | 1,125,711 |
Changes: | |||||||
Translation differences | (598) | (1,944) | (3,631) | 241 | (854) | (1,948) | (8,734) |
Reclassifications | 0 | 11,610 | 51,471 | 6,527 | 1,793 | (73,664) | (2,263) |
Additions | 10,000 | 41,948 | 119,635 | 22,944 | 4,695 | 169,862 | 369,084 |
Disposals | 0 | (25) | (314) | (119) | (177) | (23) | (658) |
Other | 11,052 | 50,087 | 0 | (4,260) | (16) | 0 | 56,863 |
Depreciation | 0 | (19,988) | (138,746) | (19,994) | (7,024) | 0 | (185,752) |
Impairment losses | 0 | (183) | (236) | (24) | 0 | (260) | (703) |
Total changes | 20,454 | 81,505 | 28,179 | 5,315 | (1,583) | 93,967 | 227,837 |
Historical cost | 58,243 | 569,758 | 1,922,562 | 326,205 | 89,442 | 233,023 | 3,199,233 |
Accumulated depreciation | 0 | (204,816) | (1,295,852) | (270,036) | (68,205) | 0 | (1,838,909) |
Write-down provision | 0 | (176) | (1,927) | (4,299) | (7) | (367) | (6,776) |
Balance at 31 December 2023 | 58,243 | 364,766 | 624,783 | 51,870 | 21,230 | 232,656 | 1,353,548 |
(euro thousand) | Land | Buildings | Plant and machinery | Industrial and commercial equipment | Other assets | Assets in course of construction and payments on account | Total |
Historical cost | 58,243 | 569,758 | 1,922,562 | 326,205 | 89,442 | 233,023 | 3,199,233 |
Accumulated depreciation | 0 | (204,816) | (1,295,852) | (270,036) | (68,205) | 0 | (1,838,909) |
Write-down provision | 0 | (176) | (1,927) | (4,299) | (7) | (367) | (6,776) |
Balance at 1 January 2024 | 58,243 | 364,766 | 624,783 | 51,870 | 21,230 | 232,656 | 1,353,548 |
Changes: | |||||||
Translation differences | 1,568 | 11,841 | 12,391 | 210 | 365 | 6,942 | 33,317 |
Reclassifications | (1) | 33,730 | 65,506 | 8,757 | 3,046 | (116,712) | (5,674) |
Additions | 140 | 14,826 | 67,830 | 22,513 | 5,860 | 252,795 | 363,964 |
Disposals | 0 | (11) | (1,930) | (789) | (71) | (11) | (2,812) |
Other | 0 | 0 | 0 | 642 | 0 | 0 | 642 |
Depreciation | 0 | (22,327) | (146,684) | (22,825) | (6,953) | 0 | (198,789) |
Impairment losses | 0 | 0 | (1,597) | (78) | (3) | (183) | (1,861) |
Total changes | 1,707 | 38,059 | (4,484) | 8,430 | 2,244 | 142,831 | 188,787 |
Historical cost | 59,950 | 634,963 | 2,064,611 | 356,109 | 98,273 | 375,775 | 3,589,681 |
Accumulated depreciation | 0 | (231,962) | (1,442,030) | (292,173) | (74,788) | 0 | (2,040,953) |
Write-down provision | 0 | (176) | (2,282) | (3,636) | (11) | (288) | (6,393) |
Balance at 31 December 2024 | 59,950 | 402,825 | 620,299 | 60,300 | 23,474 | 375,487 | 1,542,335 |
In 2024, investments in tangible fixed assets amounted to \u20ac363,964 thousand, including \u20ac252,795 thousand in fixed assets in course of construction.
As already noted in the Report on Operations, the Group continued its development programme. This involved significant investments in Italy, North America, Poland.
Net disposals amounted to \u20ac2,812 thousand and refer to the normal cycle of machinery replacement, as it becomes unusable in production processes.
Total depreciation charges for 2024 amounted to \u20ac198,789 thousand (2023: \u20ac185,752 thousand).
Right of use assets
The following table shows the movements in item \u201cRight of use assets\u201d:
(euro thousand) | Land | Buildings | Plant and machinery | Other assets | Total |
Historical cost | 4,862 | 288,679 | 441 | 36,426 | 330,408 |
Accumulated depreciation | (533) | (63,877) | (264) | (23,613) | (88,287) |
Balance at 1 January 2023 | 4,329 | 224,802 | 177 | 12,813 | 242,121 |
Changes: | |||||
Translation differences | (185) | (3,450) | 1 | 123 | (3,511) |
Reclassification from leased assets to property, plant and equipment | 0 | (63,672) | 0 | (6) | (63,678) |
New contracts/leases for the period | 0 | 14,777 | 0 | 5,954 | 20,731 |
Unwinding of lease contract | 0 | (359) | 0 | (94) | (453) |
Depreciation | (90) | (17,605) | (136) | (8,048) | (25,879) |
Total changes | (275) | (70,309) | (135) | (2,071) | (72,790) |
Historical cost | 4,648 | 222,769 | 441 | 32,495 | 260,353 |
Accumulated depreciation | (594) | (68,276) | (399) | (21,753) | (91,022) |
Balance at 1 January 2024 | 4,054 | 154,493 | 42 | 10,742 | 169,331 |
Changes: | |||||
Translation differences | 122 | (207) | 0 | 62 | (23) |
New contracts/leases for the period | 10,589 | 68,362 | 0 | 10,355 | 89,306 |
Unwinding of lease contract | 0 | 0 | (42) | (29) | (71) |
Depreciation | (200) | (18,253) | 0 | (7,429) | (25,882) |
Total changes | 10,511 | 49,902 | (42) | 2,959 | 63,330 |
Historical cost | 15,388 | 285,630 | 0 | 36,320 | 337,338 |
Accumulated depreciation | (823) | (81,235) | 0 | (22,619) | (104,677) |
Balance at 31 December 2024 | 14,565 | 204,395 | 0 | 13,701 | 232,661 |
The increases mainly refer to new contracts subscribed by Brembo N.V. for a new building in Stezzano, by Brembo Inspiration Lab. Inc. for the extension of the existing building and by Brembo Thailand Ltd. for the new plant located in the motorcycle industry hub of the country, situated in the Rayong province, south of the capital Bangkok.
Brembo N.V. also increased the right of use of its own property in Stezzano following the decision to proceed with the purchase of the same, which will be completed in early 2025.
Note 13 provides other information on the Group\u2019s financial commitment with respect to leased assets.
Property, Plant and Equipment
The changes in property, plant and equipment are shownin the table below and described in this section.
(euro thousand) | Land | Buildings | Plant and machinery | Industrial and commercial equipment | Other assets | Assets in course of construction and payments on account | Total |
Historical cost | 37,789 | 467,765 | 1,767,495 | 298,789 | 86,515 | 138,809 | 2,797,162 |
Accumulated depreciation | 0 | (184,504) | (1,168,763) | (252,216) | (63,692) | 0 | (1,669,175) |
Write-down provision | 0 | 0 | (2,128) | (18) | (10) | (120) | (2,276) |
Balance at 1 January 2023 | 37,789 | 283,261 | 596,604 | 46,555 | 22,813 | 138,689 | 1,125,711 |
Changes: | |||||||
Translation differences | (598) | (1,944) | (3,631) | 241 | (854) | (1,948) | (8,734) |
Reclassifications | 0 | 11,610 | 51,471 | 6,527 | 1,793 | (73,664) | (2,263) |
Additions | 10,000 | 41,948 | 119,635 | 22,944 | 4,695 | 169,862 | 369,084 |
Disposals | 0 | (25) | (314) | (119) | (177) | (23) | (658) |
Other | 11,052 | 50,087 | 0 | (4,260) | (16) | 0 | 56,863 |
Depreciation | 0 | (19,988) | (138,746) | (19,994) | (7,024) | 0 | (185,752) |
Impairment losses | 0 | (183) | (236) | (24) | 0 | (260) | (703) |
Total changes | 20,454 | 81,505 | 28,179 | 5,315 | (1,583) | 93,967 | 227,837 |
Historical cost | 58,243 | 569,758 | 1,922,562 | 326,205 | 89,442 | 233,023 | 3,199,233 |
Accumulated depreciation | 0 | (204,816) | (1,295,852) | (270,036) | (68,205) | 0 | (1,838,909) |
Write-down provision | 0 | (176) | (1,927) | (4,299) | (7) | (367) | (6,776) |
Balance at 31 December 2023 | 58,243 | 364,766 | 624,783 | 51,870 | 21,230 | 232,656 | 1,353,548 |
(euro thousand) | Land | Buildings | Plant and machinery | Industrial and commercial equipment | Other assets | Assets in course of construction and payments on account | Total |
Historical cost | 58,243 | 569,758 | 1,922,562 | 326,205 | 89,442 | 233,023 | 3,199,233 |
Accumulated depreciation | 0 | (204,816) | (1,295,852) | (270,036) | (68,205) | 0 | (1,838,909) |
Write-down provision | 0 | (176) | (1,927) | (4,299) | (7) | (367) | (6,776) |
Balance at 1 January 2024 | 58,243 | 364,766 | 624,783 | 51,870 | 21,230 | 232,656 | 1,353,548 |
Changes: | |||||||
Translation differences | 1,568 | 11,841 | 12,391 | 210 | 365 | 6,942 | 33,317 |
Reclassifications | (1) | 33,730 | 65,506 | 8,757 | 3,046 | (116,712) | (5,674) |
Additions | 140 | 14,826 | 67,830 | 22,513 | 5,860 | 252,795 | 363,964 |
Disposals | 0 | (11) | (1,930) | (789) | (71) | (11) | (2,812) |
Other | 0 | 0 | 0 | 642 | 0 | 0 | 642 |
Depreciation | 0 | (22,327) | (146,684) | (22,825) | (6,953) | 0 | (198,789) |
Impairment losses | 0 | 0 | (1,597) | (78) | (3) | (183) | (1,861) |
Total changes | 1,707 | 38,059 | (4,484) | 8,430 | 2,244 | 142,831 | 188,787 |
Historical cost | 59,950 | 634,963 | 2,064,611 | 356,109 | 98,273 | 375,775 | 3,589,681 |
Accumulated depreciation | 0 | (231,962) | (1,442,030) | (292,173) | (74,788) | 0 | (2,040,953) |
Write-down provision | 0 | (176) | (2,282) | (3,636) | (11) | (288) | (6,393) |
Balance at 31 December 2024 | 59,950 | 402,825 | 620,299 | 60,300 | 23,474 | 375,487 | 1,542,335 |
In 2024, investments in tangible fixed assets amounted to \u20ac363,964 thousand, including \u20ac252,795 thousand in fixed assets in course of construction.
As already noted in the Report on Operations, the Group continued its development programme. This involved significant investments in Italy, North America, Poland.
Net disposals amounted to \u20ac2,812 thousand and refer to the normal cycle of machinery replacement, as it becomes unusable in production processes.
Total depreciation charges for 2024 amounted to \u20ac198,789 thousand (2023: \u20ac185,752 thousand).
Right of use assets
The following table shows the movements in item \u201cRight of use assets\u201d:
(euro thousand) | Land | Buildings | Plant and machinery | Other assets | Total |
Historical cost | 4,862 | 288,679 | 441 | 36,426 | 330,408 |
Accumulated depreciation | (533) | (63,877) | (264) | (23,613) | (88,287) |
Balance at 1 January 2023 | 4,329 | 224,802 | 177 | 12,813 | 242,121 |
Changes: | |||||
Translation differences | (185) | (3,450) | 1 | 123 | (3,511) |
Reclassification from leased assets to property, plant and equipment | 0 | (63,672) | 0 | (6) | (63,678) |
New contracts/leases for the period | 0 | 14,777 | 0 | 5,954 | 20,731 |
Unwinding of lease contract | 0 | (359) | 0 | (94) | (453) |
Depreciation | (90) | (17,605) | (136) | (8,048) | (25,879) |
Total changes | (275) | (70,309) | (135) | (2,071) | (72,790) |
Historical cost | 4,648 | 222,769 | 441 | 32,495 | 260,353 |
Accumulated depreciation | (594) | (68,276) | (399) | (21,753) | (91,022) |
Balance at 1 January 2024 | 4,054 | 154,493 | 42 | 10,742 | 169,331 |
Changes: | |||||
Translation differences | 122 | (207) | 0 | 62 | (23) |
New contracts/leases for the period | 10,589 | 68,362 | 0 | 10,355 | 89,306 |
Unwinding of lease contract | 0 | 0 | (42) | (29) | (71) |
Depreciation | (200) | (18,253) | 0 | (7,429) | (25,882) |
Total changes | 10,511 | 49,902 | (42) | 2,959 | 63,330 |
Historical cost | 15,388 | 285,630 | 0 | 36,320 | 337,338 |
Accumulated depreciation | (823) | (81,235) | 0 | (22,619) | (104,677) |
Balance at 31 December 2024 | 14,565 | 204,395 | 0 | 13,701 | 232,661 |
The increases mainly refer to new contracts subscribed by Brembo N.V. for a new building in Stezzano, by Brembo Inspiration Lab. Inc. for the extension of the existing building and by Brembo Thailand Ltd. for the new plant located in the motorcycle industry hub of the country, situated in the Rayong province, south of the capital Bangkok.
Brembo N.V. also increased the right of use of its own property in Stezzano following the decision to proceed with the purchase of the same, which will be completed in early 2025.
Note 13 provides other information on the Group\u2019s financial commitment with respect to leased assets.
2. Intangible Assets (Development Costs,Goodwill and Other Intangible Assets)
The changes in this item are shown in the table below and described in this section.
(euro thousand) | Development costs | Goodwill(A) | Intangible assets with indefinite useful lives (B) | Sub-total(A + B) | Industrialpatents and similar rights(C) | Other intangible assets(D) | Total other intangible assets(C + D) | Total |
Historical cost | 287,214 | 123,591 | 11,332 | 134,923 | 48,591 | 193,028 | 241,619 | 663,756 |
Accumulated amortization | (178,967) | 0 | 0 | 0 | (36,047) | (127,454) | (163,501) | (342,468) |
Write-down provision | (6,589) | (11,686) | (2) | (11,688) | (2,589) | 0 | (2,589) | (20,866) |
Balance at 1 January 2023 | 101,658 | 111,905 | 11,330 | 123,235 | 9,955 | 65,574 | 75,529 | 300,422 |
Changes: | ||||||||
Translation differences | (271) | (3,629) | (27) | (3,656) | 41 | (1,326) | (1,285) | (5,212) |
Reclassifications | 0 | 0 | 0 | 0 | 510 | 648 | 1,158 | 1,158 |
Additions | 28,910 | 0 | 0 | 0 | 1,910 | 12,913 | 14,823 | 43,733 |
Other | 1 | 0 | 0 | 0 | 2 | 0 | 2 | 3 |
Amortization | (23,461) | 0 | 0 | 0 | (2,165) | (11,332) | (13,497) | (36,958) |
Impairment losses | (2,414) | 0 | 0 | 0 | 0 | 0 | 0 | (2,414) |
Total changes | 2,765 | (3,629) | (27) | (3,656) | 298 | 903 | 1,201 | 310 |
Historical cost | 315,056 | 120,203 | 11,305 | 131,508 | 51,252 | 203,754 | 255,006 | 701,570 |
Accumulated amortization | (201,631) | 0 | 0 | 0 | (38,410) | (137,277) | (175,687) | (377,318) |
Write-down provision | (9,002) | (11,927) | (2) | (11,929) | (2,589) | 0 | (2,589) | (23,520) |
Balance at 31 December 2023 | 104,423 | 108,276 | 11,303 | 119,579 | 10,253 | 66,477 | 76,730 | 300,732 |
(euro thousand) | Development costs | Goodwill(A) | Intangible assets with indefinite useful lives (B) | Sub-total(A + B) | Industrialpatents and similar rights(C) | Other intangible assets(D) | Total other intangible assets(C + D) | Total |
Historical cost | 315,056 | 120,203 | 11,305 | 131,508 | 51,252 | 203,754 | 255,006 | 701,570 |
Accumulated amortization | (201,631) | 0 | 0 | 0 | (38,410) | (137,277) | (175,687) | (377,318) |
Write-down provision | (9,002) | (11,927) | (2) | (11,929) | (2,589) | 0 | (2,589) | (23,520) |
Balance at 1 January 2024 | 104,423 | 108,276 | 11,303 | 119,579 | 10,253 | 66,477 | 76,730 | 300,732 |
Changes: | ||||||||
Translation differences | 440 | 3,387 | 12 | 3,399 | 6 | 734 | 740 | 4,579 |
Reclassifications | 140 | 0 | 0 | 0 | 409 | (342) | 67 | 207 |
Additions | 31,465 | 0 | 0 | 0 | 1,796 | 13,829 | 15,625 | 47,090 |
Other | 0 | 0 | 0 | 0 | 8 | 0 | 8 | 8 |
Amortization | (24,928) | 0 | 0 | 0 | (2,368) | (11,367) | (13,735) | (38,663) |
Impairment losses | (2,528) | 0 | 0 | 0 | 0 | 0 | 0 | (2,528) |
Total changes | 4,589 | 3,387 | 12 | 3,399 | (149) | 2,854 | 2,705 | 10,693 |
Historical cost | 347,969 | 124,164 | 11,317 | 135,481 | 53,389 | 219,205 | 272,594 | 756,044 |
Accumulated amortization | (227,427) | 0 | 0 | 0 | (40,696) | (149,874) | (190,570) | (417,997) |
Write-down provision | (11,530) | (12,501) | (2) | (12,503) | (2,589) | 0 | (2,589) | (26,622) |
Balance at 31 December 2024 | 109,012 | 111,663 | 11,315 | 122,978 | 10,104 | 69,331 | 79,435 | 311,425 |
Development costs
Item \u201cDevelopment costs\u201d includes costs for development, internal and external, for a gross historical cost of \u20ac347,969 thousand. During the reporting year, this item changed due to higher costs incurred in 2024 for development orders received both during the year and in previous years, for which additional development costs were incurred; amortization amounting to \u20ac24,928 thousand was recognized for development costs associated with orders
regarding products that have already entered production.
The gross amount includes development activities for projects underway totalling \u20ac56,654 thousand. The total amount of costs for capitalized internal works charged to the Statement of Income in item \u201cCosts for capitalized internal works\u201d during the year amounted to \u20ac31,497 thousand (2023: \u20ac28,601 thousand).
Impairment losses totalled \u20ac2,528 thousand and are recognized in the Statement of Income under \u201cAmortization, depreciation and impairment losses.\u201d Impairment losses refer to development costs incurred mainly by the Parent, Brembo N.V., in relation to projects that, consistent with the desire of the customer or Brembo, were not completed or underwent changes in terms of their end destination.
Goodwill
Item \u201cGoodwill\u201d arose from business combinations and the ensuing allocation to the following GCUs:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Discs - Systems - Motorbikes: | ||
Brembo North America Inc.(Hayes Lemmerz) | 16,430 | 15,447 |
Brembo M\u00e9xico S.A. de C.V.(Hayes Lemmerz) | 1,000 | 940 |
Brembo Nanjing Brake SystemsCo. Ltd. | 923 | 892 |
Brembo Brake India Pvt. Ltd. | 7,404 | 7,165 |
Brembo Huilian (Langfang)Brake Systems Co. Ltd. | 44,396 | 42,882 |
SBS Friction A/S | 20,690 | 20,703 |
J.Juan group | 6,296 | 6,296 |
After Market - Performance Group: | ||
Corporaci\u00f3n Upwards '98 (Frenco S.A.) | 2,006 | 2,006 |
AP Racing Ltd. | 12,518 | 11,945 |
Total | 111,663 | 108,276 |
The change compared to 31 December 2023 was attributable to the change in consolidation exchange rates.
CGUs are typically identified as the business being acquired and therefore tested for impairment. If the asset being tested for impairment refers to businesses operating in multiple business lines, it is attributed to all business lines in existence at the date of acquisition; this approach is consistent with valuations carried out at the acquisition date, which are typically based on the estimated recoverable amount of the entire investment.
Intangible assets with indefinite useful lives
This item includes \u20ac1,030 thousand related to the Villar trademark, owned by the subsidiary Corporaci\u00f3n Upwards \u201898 S.A., \u20ac1,317 thousand to the SBS Friction trademark, \u20ac8,585 thousand to the J.Juan trademark and \u20ac383 thousand to the trademark LF of Brembo Huilian (Langfang) Brake Systems Co. Ltd.
Impairment test
The Group conducts an impairment test at year-end and whenever there are indicators of impairment losses. The Group\u2019s impairment test on goodwill and intangible assets with indefinite useful lives is based on value in use.
Among the various indicators of impairment losses, the Group considers the relationship between its market capitalization and equity, which at 31 December 2024 did not show any indicators of impairment losses.
Future cash flows used for the calculation are based on management\u2019s most recent operating and financial plans. In particular, in defining the future cash flows reference was made to:
the Group\u2019s 2025 Budget approved by the Board of Directors on 30 January 2025;
the Group\u2019s 2026-2028 Industrial Plan approved by the Board of Directors on 30 July 2024;
which both reflect the current expectations regarding economic conditions and market trends as well as the Company\u2019s initiatives for the period covered by the projections.
The main assumptions that determined the test outcome were:
the Group\u2019s rate (Group WACC) of 8.91% (9.79% in 2023). The change compared to the previous year was mainly due to the decrease in the intrest rates;
a growth rate (g-rate) used in determining terminal value of 1.5% (1.5% in 2023).
The previously mentioned impairment tests did not indicate the need to recognize any impairment loss in the reporting year.
After having performed the base tests, according to the calculation for each CGU, the sensitivity analyses were conducted. In the event of a change in the WACC from 8.91% to 9.91%, in the growth rate from 1.5% to 1% or a decline in sales volumes/margins of 5%-10% over the plan period, no impairment loss would be required.
In addition to the foregoing, the Group analysed the presence of impairment indicators on the various CGUs that do not present goodwill recognized or fixed assets with indefinite useful lives. However, for these CGUs, the impairment test for Property, plant, equipment and other equipment, Right of use assets, Development costs and Other intangible assets is only required when such indicators are present.
In the reporting year, impairment indicators were identified with reference to Brembo Czech S.r.o. The impairment test and sensitivity analyses on the above CGU did not identify any risks of impairment (for methodology, reference is made to what is stated above with regard to goodwill).
Despite including considerable investments relating to sustainability objectives in its financial plans, Brembo has introduced an additional sensitivity scenario for its flows (at both Group level and GBU level), designed to reflect its carbon neutrality goals. Accordingly, cash outflows were simulated, both during the explicit period and in the estimate of terminal value, which simulate the cost of neutralising CO2emissions (Scope 1) on the basis of the market values that would be incurred to neutralize them. Impairment tests did not indicate the need to recognize any impairment loss in the reporting year.
Other intangible assets
Acquisitions recognized under \u201cOther intangible assets\u201d totalled \u20ac15,625 thousand and refer for \u20ac1,796 thousand to the filing of specific patents and trademarks, and for the remaining amount mainly to the share of the investment for the reporting year associated with the development of the Group\u2019s Digital Transformation plan.
Development costs
Item \u201cDevelopment costs\u201d includes costs for development, internal and external, for a gross historical cost of \u20ac347,969 thousand. During the reporting year, this item changed due to higher costs incurred in 2024 for development orders received both during the year and in previous years, for which additional development costs were incurred; amortization amounting to \u20ac24,928 thousand was recognized for development costs associated with orders
regarding products that have already entered production.
The gross amount includes development activities for projects underway totalling \u20ac56,654 thousand. The total amount of costs for capitalized internal works charged to the Statement of Income in item \u201cCosts for capitalized internal works\u201d during the year amounted to \u20ac31,497 thousand (2023: \u20ac28,601 thousand).
Impairment losses totalled \u20ac2,528 thousand and are recognized in the Statement of Income under \u201cAmortization, depreciation and impairment losses.\u201d Impairment losses refer to development costs incurred mainly by the Parent, Brembo N.V., in relation to projects that, consistent with the desire of the customer or Brembo, were not completed or underwent changes in terms of their end destination.
3. Shareholdings Valued Using theEquity Method (Associates andJoint Ventures)
This item includes the Group\u2019s share of equity in companiesthat are valued using the equity method. The followingtable shows all relevant movements:
(euro thousand) | 31.12.2023 | Acquisitions and new shareholdings | Exchange rate fluctuations | Write-ups/Write-downs | Dividends | Other changes | 31.12.2024 |
Brembo SGL Carbon Ceramic Brakes Group | 53,707 | 0 | 0 | 16,045 | (15,000) | 81 | 54,833 |
Shandong BRGP Friction Technology Co. Ltd. | 4,393 | 2,733 | 221 | 208 | 0 | 0 | 7,555 |
Petroceramics S.p.A. | 1,294 | 0 | 0 | 117 | 0 | (6) | 1,405 |
Infibra Technologies S.r.l. | 793 | 0 | 0 | (35) | 0 | (10) | 748 |
Total | 60,187 | 2,733 | 221 | 16,335 | (15,000) | 65 | 64,541 |
It should be noted that the impact on the Statement of Income of investments valued using the equity method refers to two items: \u201cIncome (expense) from non-financial investments\u201d, attributable to the effect of the valuation using the equity method of the BSCCB Group and the company Shandong BRGP Friction Technology Co. Ltd.,
and \u201cInterest income (expense) from investments\u201d, attributable to the valuation of associates using the equity method.
The following is a breakdown of the assets, liabilities, costs and revenues referring to joint ventures and associates.
Joint ventures
(euro thousand) | ||||
Brembo Group SGL Carbon Ceramic Brakes | Shandong BRGP Friction Technology Co. Ltd. | |||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Revenue from contracts with customers | 267,811 | 254,789 | 33,720 | 12,596 |
Other revenues and income | 4,146 | 5,090 | 796 | (8) |
Raw materials, consumables and goods | (85,717) | (79,171) | (21,901) | (8,616) |
Other operating costs | (61,296) | (61,524) | (2,636) | (1,738) |
Personnel expenses | (65,998) | (58,410) | (4,935) | (2,790) |
Gross operating income | 58,946 | 60,774 | 5,044 | (556) |
Depreciation, amortization and impairment losses | (13,100) | (11,395) | (2,254) | (1,190) |
Net operating income | 45,846 | 49,379 | 2,790 | (1,746) |
Net interest income (expense) | (1,043) | 107 | (723) | (623) |
Result before taxes | 44,803 | 49,486 | 2,067 | (2,369) |
Taxes | (12,820) | (13,554) | (380) | 589 |
Group net result | 31,983 | 35,932 | 1,687 | (1,780) |
% ownership | 50% | 50% | 50% | 50% |
Other consolidation adjustments | 53 | (32) | (636) | 0 |
Group net result | 16,045 | 17,934 | 208 | (890) |
Property, plant, equipment and other equipment | 103,228 | 71,246 | 14,215 | 9,982 |
Right-of-use assets | 39,092 | 11,566 | 8,846 | 8,389 |
Other intangible assets | 419 | 196 | 138 | 113 |
Other non-current financial assets | 131 | 131 | 0 | 0 |
Receivables and other non-current assets | 973 | 950 | 0 | 0 |
Deferred tax assets | 3,682 | 3,690 | 464 | 582 |
Total non-current assets | 147,525 | 87,779 | 23,663 | 19,066 |
Inventories | 44,960 | 39,918 | 1,645 | 999 |
Trade receivables | 23,211 | 34,541 | 7,772 | 5,404 |
Other receivables and current assets | 12,773 | 6,873 | 1,471 | 1,917 |
Other current financial assets | 2 | 6 | 0 | 0 |
Cash and cash equivalents | 9,444 | 4,551 | 13,158 | 3,046 |
Total current assets | 90,390 | 85,889 | 24,046 | 11,366 |
Total assets | 237,915 | 173,668 | 47,709 | 30,432 |
(euro thousand) | ||||
Brembo Group SGL Carbon Ceramic Brakes | Shandong BRGP Friction Technology Co. Ltd. | |||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Share capital | 4,000 | 4,000 | 16,470 | 10,547 |
Other reserves | 24,993 | 34,765 | 0 | 0 |
Reserve for cumulative traslation adjustment | 0 | 0 | 45 | 43 |
Retained earnings/(losses) | 46,934 | 31,068 | 0 | 0 |
Retained earning/(losses) carried forward | 0 | 0 | (1,821) | (24) |
Net result for the period | 31,983 | 35,932 | 1,687 | (1,780) |
Total equity | 107,910 | 105,765 | 16,381 | 8,786 |
Non-current payables to banks | 20,000 | 0 | 5,064 | 4,891 |
Long-term lease liabilities | 36,422 | 9,833 | 9,466 | 8,558 |
Other non-current liabilities | 1,899 | 1,667 | 0 | 0 |
Non-current provisions | 1,276 | 2,954 | 0 | 0 |
Employee benefits | 3,180 | 2,971 | 0 | 0 |
Deferred tax liabilities | 26 | 0 | 0 | 0 |
Total non-current liabilities | 62,803 | 17,425 | 14,530 | 13,449 |
Current payables to banks | 16,340 | 1,712 | 0 | 193 |
Short-term lease liabilities | 3,541 | 2,405 | 324 | 261 |
Trade payables | 35,663 | 31,059 | 15,841 | 7,489 |
Tax payables | 586 | 2,060 | 252 | 0 |
Other current liabilities | 11,072 | 13,242 | 381 | 254 |
Total current liabilities | 67,202 | 50,478 | 16,798 | 8,197 |
Total liabilities | 130,005 | 67,903 | 31,328 | 21,646 |
Total equity and liabilities | 237,915 | 173,668 | 47,709 | 30,432 |
% ownership | 50% | 50% | 50% | 50% |
Goodwill | 1,033 | 1,033 | 0 | |
Other consolidation adjustments | (155) | (209) | (636) | 0 |
Carrying value of Group shareholding | 54,833 | 53,707 | 7,555 | 4,393 |
Associates
(euro thousand) | ||||
Petroceramics S.p.A. | Infibra Technologies S.r.l. | |||
31.12.2024 | 31.12.20223 | 31.12.2024 | 31.12.20223 | |
Revenue from contracts with customers | 2,905 | 2,316 | 302 | 606 |
Net result for the year | 586 | 454 | (175) | (54) |
% ownership | 20% | 20% | 20% | 20% |
Group net result | 117 | 91 | (35) | (11) |
Total current assets | 5,562 | 5,120 | 505 | 775 |
Total non-current assets | 3,108 | 3,160 | 290 | 278 |
Total current liabilities | 1,355 | 1,512 | 61 | 81 |
Total non-current liabilities | 288 | 299 | 116 | 129 |
Total equity | 7,027 | 6,469 | 618 | 843 |
% ownership | 20% | 20% | 20% | 20% |
Other consolidation adjustments | 0 | 0 | 624 | 624 |
Carrying value of Group shareholding | 1,405 | 1,294 | 748 | 793 |
24. Income (Expense) from Non-Financial Investments
Income (expense) from non-financial investments amounted to \u20ac16,253 thousand and was attributable to the effects of valuing the investment in the BSCCB Group and the company Shandong BRGP Friction Technology Co. Ltd. using the equity method (\u20ac17,044 thousand in 2023).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__59": { "value": "Joint ventures
(euro thousand) | ||||
Brembo Group SGL Carbon Ceramic Brakes | Shandong BRGP Friction Technology Co. Ltd. | |||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Revenue from contracts with customers | 267,811 | 254,789 | 33,720 | 12,596 |
Other revenues and income | 4,146 | 5,090 | 796 | (8) |
Raw materials, consumables and goods | (85,717) | (79,171) | (21,901) | (8,616) |
Other operating costs | (61,296) | (61,524) | (2,636) | (1,738) |
Personnel expenses | (65,998) | (58,410) | (4,935) | (2,790) |
Gross operating income | 58,946 | 60,774 | 5,044 | (556) |
Depreciation, amortization and impairment losses | (13,100) | (11,395) | (2,254) | (1,190) |
Net operating income | 45,846 | 49,379 | 2,790 | (1,746) |
Net interest income (expense) | (1,043) | 107 | (723) | (623) |
Result before taxes | 44,803 | 49,486 | 2,067 | (2,369) |
Taxes | (12,820) | (13,554) | (380) | 589 |
Group net result | 31,983 | 35,932 | 1,687 | (1,780) |
% ownership | 50% | 50% | 50% | 50% |
Other consolidation adjustments | 53 | (32) | (636) | 0 |
Group net result | 16,045 | 17,934 | 208 | (890) |
Property, plant, equipment and other equipment | 103,228 | 71,246 | 14,215 | 9,982 |
Right-of-use assets | 39,092 | 11,566 | 8,846 | 8,389 |
Other intangible assets | 419 | 196 | 138 | 113 |
Other non-current financial assets | 131 | 131 | 0 | 0 |
Receivables and other non-current assets | 973 | 950 | 0 | 0 |
Deferred tax assets | 3,682 | 3,690 | 464 | 582 |
Total non-current assets | 147,525 | 87,779 | 23,663 | 19,066 |
Inventories | 44,960 | 39,918 | 1,645 | 999 |
Trade receivables | 23,211 | 34,541 | 7,772 | 5,404 |
Other receivables and current assets | 12,773 | 6,873 | 1,471 | 1,917 |
Other current financial assets | 2 | 6 | 0 | 0 |
Cash and cash equivalents | 9,444 | 4,551 | 13,158 | 3,046 |
Total current assets | 90,390 | 85,889 | 24,046 | 11,366 |
Total assets | 237,915 | 173,668 | 47,709 | 30,432 |
(euro thousand) | ||||
Brembo Group SGL Carbon Ceramic Brakes | Shandong BRGP Friction Technology Co. Ltd. | |||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Share capital | 4,000 | 4,000 | 16,470 | 10,547 |
Other reserves | 24,993 | 34,765 | 0 | 0 |
Reserve for cumulative traslation adjustment | 0 | 0 | 45 | 43 |
Retained earnings/(losses) | 46,934 | 31,068 | 0 | 0 |
Retained earning/(losses) carried forward | 0 | 0 | (1,821) | (24) |
Net result for the period | 31,983 | 35,932 | 1,687 | (1,780) |
Total equity | 107,910 | 105,765 | 16,381 | 8,786 |
Non-current payables to banks | 20,000 | 0 | 5,064 | 4,891 |
Long-term lease liabilities | 36,422 | 9,833 | 9,466 | 8,558 |
Other non-current liabilities | 1,899 | 1,667 | 0 | 0 |
Non-current provisions | 1,276 | 2,954 | 0 | 0 |
Employee benefits | 3,180 | 2,971 | 0 | 0 |
Deferred tax liabilities | 26 | 0 | 0 | 0 |
Total non-current liabilities | 62,803 | 17,425 | 14,530 | 13,449 |
Current payables to banks | 16,340 | 1,712 | 0 | 193 |
Short-term lease liabilities | 3,541 | 2,405 | 324 | 261 |
Trade payables | 35,663 | 31,059 | 15,841 | 7,489 |
Tax payables | 586 | 2,060 | 252 | 0 |
Other current liabilities | 11,072 | 13,242 | 381 | 254 |
Total current liabilities | 67,202 | 50,478 | 16,798 | 8,197 |
Total liabilities | 130,005 | 67,903 | 31,328 | 21,646 |
Total equity and liabilities | 237,915 | 173,668 | 47,709 | 30,432 |
% ownership | 50% | 50% | 50% | 50% |
Goodwill | 1,033 | 1,033 | 0 | |
Other consolidation adjustments | (155) | (209) | (636) | 0 |
Carrying value of Group shareholding | 54,833 | 53,707 | 7,555 | 4,393 |
Associates
(euro thousand) | ||||
Petroceramics S.p.A. | Infibra Technologies S.r.l. | |||
31.12.2024 | 31.12.20223 | 31.12.2024 | 31.12.20223 | |
Revenue from contracts with customers | 2,905 | 2,316 | 302 | 606 |
Net result for the year | 586 | 454 | (175) | (54) |
% ownership | 20% | 20% | 20% | 20% |
Group net result | 117 | 91 | (35) | (11) |
Total current assets | 5,562 | 5,120 | 505 | 775 |
Total non-current assets | 3,108 | 3,160 | 290 | 278 |
Total current liabilities | 1,355 | 1,512 | 61 | 81 |
Total non-current liabilities | 288 | 299 | 116 | 129 |
Total equity | 7,027 | 6,469 | 618 | 843 |
% ownership | 20% | 20% | 20% | 20% |
Other consolidation adjustments | 0 | 0 | 624 | 624 |
Carrying value of Group shareholding | 1,405 | 1,294 | 748 | 793 |
4. Investments in Other Companies,Derivatives and Other Non-CurrentFinancial Assets
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Investments in other companies measured at fair value | 914 | 278,446 |
Investments in other companies measured at cost | 2,727 | 1,686 |
Derivatives measured at fair value | 8,998 | 20,385 |
Other securities | 53 | 447 |
Other | 2,512 | 2,464 |
Total | 15,204 | 303,428 |
The item \u201cInvestments in other companies measured at fair value\u201d consisted of the fair value of the 10.33% interest held in E-Novia S.p.A. amounting to \u20ac914 thousand. The change in value compared to 31 December 2023 was mainly due to the sale of the entire stake of ordinary shares of Pirelli & C. S.p.A. Brembo placed 55,800,000 Pirelli ordinary shares to institutional investors, equal to approximately 5.58% of the Company\u2019s issued share capital, at a price of \u20ac 5.07 per share for \u20ac282,906 thousands booked at fair value through other comprehensive income.
\u201cInvestments in other companies measured at cost\u201d also includes the 10% interest in International Sport Automobile S.\u00e0r.l. and the 1.20% interest in Fuji Co. The change of \u20ac1,041 thousand on 31 December 2023 was attributable to the Parent\u2019s interest in consortium funds intended for research for \u20ac45 thousand and to the acquisition of a the 2.11% in Spoke Safety, a U.S. startup
specializing in the development of digital communication technologies between vehicles and the road ecosystem, for \u20ac996 thousand.
The item \u201cDerivatives\u201d refers for \u20ac4,433 thousand to the fair value of derivative assets relating to a specific financial transaction hedging against the risk of fluctuation in the electricity price undertaken in 2021 by Brembo Poland Sp.Zo.o. and for \u20ac4,565 thousand to the non-current portion of the fair value of two IRSs entered into directly by the Parent Brembo N.V., for a remaining notional amount of \u20ac50 million and \u20ac175 million, respectively, at 31 December 2024, hedging the change in interest rate risk associated with a specific outstanding loan. These IRSs fall within the requirements set forth in the accounting standards relating to hedge accounting (cash flow hedge). The change in fair value compared to 31 December 2023 was recognized as a component of comprehensive income, net of the tax effect, given that the hedge is fully effective.
\u201cOther\u201d includes interest-free security deposits for utilities and car rental agreements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__62": { "value": "5. Receivables and Other Non-current Assets
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Other non-current assets | 47,870 | 35,634 |
Income tax receivables | 5,024 | 6,075 |
Non-income tax receivables | 34 | 34 |
Total | 52,928 | 41,743 |
Item \u201cOther non-current assets\u201d refers to contributions towards clients for the acquisition of long-term exclusive supply arrangements, which were released to the Statement of Income in accordance with the supply schedule for the clients.
Income tax receivables mainly refer to tax credits that can be used beyond one year, granted on the purchase of new property, plant and equipment, and other tax credits for which refunds have been requested.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__63": { "value": "6. Deferred Tax Assets and Liabilities
The net balance of deferred tax assets and liabilities is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Deferred tax assets | 109,284 | 97,661 |
Deferred tax liabilities | (25,202) | (30,956) |
Total | 84,082 | 66,705 |
Deferred tax assets and liabilities were generated mainly due to temporary differences for capital gains with deferred taxation, other income items subject to future deductions or taxation, prior years\u2019 tax losses and other consolidation adjustments.
Movements for the year are reported in the following table:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Balance at beginning of period | 66,705 | 32,607 |
Deferred tax liabilities generated | (376) | (1,364) |
Deferred tax assets generated | 15,341 | 29,328 |
Use of deffered tax assets and liabilities | (4,446) | (1,520) |
Exchange rate fluctuations | 2,262 | (1,735) |
Other movements | 4,596 | 9,389 |
Balance at end of period | 84,082 | 66,705 |
The nature of temporary differences that generateddeferred tax assets and liabilities is detailed below:
(euro thousand) | ||||||
Assets | Liabilities | Net | ||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Property, plant, equipment and other equipment | 29,210 | 44,182 | 25,757 | 25,172 | 3,453 | 19,010 |
Development costs | 4,369 | 2,517 | 416 | 340 | 3,953 | 2,177 |
Goodwill and other indefinite useful life assets | 115 | 246 | 2,356 | 2,356 | (2,241) | (2,110) |
Other intangible assets | 602 | 530 | 8,082 | 9,063 | (7,480) | (8,533) |
Equity shareholdings | 0 | 38 | 0 | 803 | 0 | (765) |
Other financial assets | 2,042 | 0 | 111 | 99 | 1,931 | (99) |
Trade receivables | 6,168 | 6,074 | 0 | 0 | 6,168 | 6,074 |
Inventories | 20,621 | 18,657 | 0 | 0 | 20,621 | 18,657 |
Other receivables and current assets | 69 | 86 | 7,483 | 6,860 | (7,414) | (6,774) |
Financial liabilities | 64 | 56 | 2,258 | 4,460 | (2,194) | (4,404) |
Other financial liabilities | 11,908 | 8,696 | 236 | 159 | 11,672 | 8,537 |
Provisions | 8,544 | 7,651 | 172 | 695 | 8,372 | 6,956 |
Provisions for employee benefits | 11,365 | 9,088 | 1,523 | 1,435 | 9,842 | 7,653 |
Short/long-term lease liabilities | 53 | 699 | 0 | 0 | 53 | 699 |
Trade payables | 203 | 160 | 0 | 0 | 203 | 160 |
Cash and cash equivalents | 10 | 10 | 0 | 0 | 10 | 10 |
Other liabilities | 19,660 | 13,628 | 1,177 | 1,218 | 18,483 | 12,410 |
Other | 13,387 | 461 | 6,385 | 8,838 | 7,002 | (8,377) |
Tax losses | 11,648 | 15,424 | 0 | 0 | 11,648 | 15,424 |
Compensation balance | (30,754) | (30,542) | (30,754) | (30,542) | 0 | 0 |
Total | 109,284 | 97,661 | 25,202 | 30,956 | 84,082 | 66,705 |
Item \u201cTax losses\u201d refers to deferred tax assets on losses for the previous years recognized by Brembo Czech S.r.o. (\u20ac6,678 thousand), J.Jaun S.A.U. (\u20ac2,314 thousand), Brembo do Brasil Ltd. (\u20ac2,060 thousand) and SBS Friction A/S (\u20ac596 thousand), considering there to be a basis for the future recoverability of the tax assets in light of updated strategic plans.
It should also be noted that:
unrecognized deferred tax assets of Brembo do Brasil Ltda. \u2014 calculated on prior years\u2019 losses (BRL 63 million) eligible to be unlimitedly carried forward \u2014 amounted to BRL 21.42 million;
unrecognized deferred tax assets of J.Juan S.A.U. \u2014 calculated on prior years\u2019 losses (\u20ac8,488 thousand) eligible to be unlimitedly carried forward \u2014 amounted to \u20ac2,122 thousand;
Brembo Czech Sro. has three tax incentive plans, one of CZK 133.1 million (expiring in 2026), one of CZK 63.8 million (expiring in 2029) and another of CZK 367.0 million (expiring in 2031), on which the company did not recognize any deferred tax assets;
at 31 December 2024, deferred tax liabilities of \u20ac5,975 thousand were recognized on profits of subsidiaries, associates or joint ventures which the Group considers may be distributed in the foreseeable future;
at 31 December 2024, the temporary differences between the Parent\u2019s share of the net assets of the subsidiary, associate or investee company, including the book value of goodwill, and the value of the investment or shareholding (cost) (as indicated in \u00a738 of IAS 12) amounted to \u20ac1,321 million and were considered to be permanently reinvested, since these provisions are used to fund current transactions and future business growth in those countries in which the same subsidiary resides; as a result, no deferred tax liability was recognized on the taxable portion of such differences.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__64": { "value": "7. Inventories
A breakdown of net inventories, which are stated net of the inventory write-down provision, is shown below:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Raw materials | 249,033 | 228,060 |
Work in progress | 123,415 | 148,749 |
Finished products | 216,357 | 196,547 |
Goods in transit | 49,505 | 48,341 |
Total | 638,310 | 621,697 |
The change compared to 31 December 2023 was attributable to the higher cost of raw materials and greater volumes, as well as to a policy aimed at increasing the supply of inventories in order to tackle any supply chain-related risks. Movements in the inventory write-down provision are reported in the following table:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Balance at the beginningof period | 76,913 | 77,073 |
Provisions | 26,336 | 16,021 |
Use/Release | (15,375) | (16,267) |
Exchange rate fluctuations | 733 | 77 |
Reclassification | (112) | 9 |
Balance at end of period | 88,495 | 76,913 |
The inventory write-down provision was determined in order to align the cost of inventories to their estimated realisable value; the provision increased due to higher depreciation calculated on obsolete goods as a result of faster renewal of product ranges.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__65": { "value": "8. Trade Receivables
At 31 December 2024, the balance of account receivables from customers compared to the end of the previous year was as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Receivables from customers | 629,007 | 601,774 |
Receivables from associates and joint ventures | 2,388 | 3,103 |
Total | 631,395 | 604,877 |
The increase in trade receivables is mainly due to higher overdue receivables, which in any case did not entail any criticality.
The bad debt risk is not concentrated in any one area, as the Group has a client portfolio spread across the various geographical areas in which it operates.
Account receivables from customers are recognized net of the provision for bad debts, which amounted to \u20ac17,946 thousand. Movements in the provision for bad debts are shown below:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Balance at beginning of period | 8,455 | 7,285 |
Provisions | 11,273 | 2,734 |
Use/Release | (1,822) | (2,164) |
Exchange rate fluctuations | 40 | 148 |
Reclassifications | 0 | 452 |
Balance at end of period | 17,946 | 8,455 |
The increase of provision is related to legal restructuring proceeding with self-administration of a primary listed OE producer.
The Brembo Group\u2019s maximum credit risk exposure is
the book value of the gross financial assets recognized in the financial statements, net of any amounts offset in accordance with IAS 32 and any impairment losses recognized in accordance with IFRS 9.
It bears noting that Brembo has no credit insurance contracts as its credit risk is modest since its main business partners are leading car and motorbike manufacturers with high credit standing.
To mitigate commercial credit risk towards third parties, the Group applies procedures for assessing their financial solidity. These involve an analysis of the last three annual financial statements available, with the assignment of the relevant rating and commercial credit limit. Operating credit management is entrusted to a dedicated team that performs thorough checks on past-due accounts, involving the Sales Departments to which the customers are assigned as necessary.
To express the creditworthiness of financial assets the Group has elected to distinguish between clients who are listed or not listed on the stock exchange. Listed clients are those listed on a stock market, directly or indirectly controlled by a listed company or closely connected to listed companies.
(euro thousand) | 31.12.2024 | 31.12.2023 |
Listed clients | 539,604 | 516,571 |
Unlisted clients | 109,737 | 96,761 |
Total | 649,341 | 613,332 |
The following table provides details on trade receivables that have not been adjusted for impairment, broken down by maturity.
Listed clients
(euro thousand) | 31.12.2024 | Write-down 2024 | 31.12.2023 | Write-down 2023 |
Current | 466,543 | 3,260 | 485,074 | 0 |
Expired by up 30 days | 17,590 | 716 | 4,567 | 0 |
Overdue from 31 to 60 days | 16,871 | 915 | 9,162 | 0 |
Overdue more than 60 days | 38,600 | 8,737 | 17,768 | 5,815 |
Total | 539,604 | 13,628 | 516,571 | 5,815 |
% ratio of expired receivables not written down to total exposure | 11.6% | 5.0% | ||
Total expired receivables, not written down | 62,693 | 25,682 |
Unlisted clients
(euro thousand) | 31.12.2024 | Write-down 2024 | 31.12.2023 | Write-down 2023 |
Current | 96,389 | 0 | 82,496 | 0 |
Expired by up 30 days | 2,447 | 0 | 4,296 | 0 |
Overdue from 31 to 60 days | 3,730 | 0 | 3,052 | 32 |
Overdue more than 60 days | 7,171 | 4,318 | 6,917 | 2,608 |
Total | 109,737 | 4,318 | 96,761 | 2,640 |
% ratio of expired receivables not written down to total exposure | 8.2% | 12.0% | ||
Total expired receivables, not written down | 9,030 | 11,625 |
Expired receivables from listed clients mainly refer to primary OE customers (they also include the already mentioned credit under restructuring proceeding with self-administration of a primary OE producer); the repayment plans of the expired receivables, that have not been written down, were almost fully set at the beginning of 2025.
With regard to the portion of expired receivables from unlisted clients that have not been written down, most of this amount has already been collected in the first months of 2025.
9. Other Receivables and Current Assets
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Income tax receivables | 45,878 | 29,338 |
Non-income tax receivables | 63,247 | 39,224 |
Other receivables | 28,551 | 25,977 |
Total | 137,676 | 94,539 |
Item \u201cIncome tax receivables\u201d includes the receivable recognized by the Parent in prior years in relation to the application of an IRES refund, concerning the non-deductibility for IRAP purposes of personnel expenses, and other applications for IRES and IRAP refund, besides the R&D tax credit.
Item \u201cNon-income tax receivables\u201d primarily includes the VAT receivables of subsidiaries located in Poland and M\u00e9xico.
Item \u201cOther receivables\u201d includes dividends to be received by investees and advances paid to suppliers for goods and services, as well as other accrued income.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__67": { "value": "10. Derivatives and Other Current Financial Assets
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Other securities | 395 | 0 |
Derivatives measured at fair value | 23,985 | 12,949 |
Security deposits | 2,636 | 2,969 |
Other receivables | 99 | 128 |
Total | 27,115 | 16,046 |
The item \u201cDerivatives\u201d refers for \u20ac5,276 thousand to the current portion of the fair value of two IRSs entered into directly by the Parent Brembo N.V., for a remaining notional amount of \u20ac50 million and \u20ac175 million, respectively, at 31 December 2024, hedging the change in interest rate risk associated with a specific outstanding loan. These IRSs fall within the requirements set forth in the accounting standards relating to hedge accounting (cash flow hedge). The change in fair value compared to 31 December 2023 was recognized as a component of comprehensive income, net of the tax effect, given that the hedge is fully effective.
The item also includes the fair value of derivative assets relating to hedging through currency forwards for \u20ac18,709 thousand.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__68": { "value": "11. Cash and Cash Equivalents
Cash and cash equivalents include:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Bank and postal account | 867,066 | 509,935 |
Cash-in-hand and cash equivalents | 150 | 123 |
Total cash and cash equivalents | 867,216 | 510,058 |
Payables to banks: overdrafts | (261,621) | (164,191) |
Cash and cash equivalents from the Statement of Cash Flow | 605,595 | 345,867 |
The items listed above can be converted readily into cash and are not exposed to a significant risk that their value may change. It is deemed that the book value of cash and cash equivalents approximates their fair value at the reporting date. Cash is on deposit with credit institutions whose ratings are constantly monitored in order to select only financially sound counterparties.
The increase is mainly due to the sale of the share of Pirelli S.p.A., as mentioned in note 4.
In addition to the amount recognized in the Statement of Cash Flows, it should be noted that interest paid in the year totalled \u20ac52,804 thousand (\u20ac36,668 thousand in 2023). This interest does not include the \u20ac11,332 thousand positive differentials on the IRSs entered into to hedge against the change in interest-rate risk on the variable-rate loans.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__69": { "value": "12. Equity
Group consolidated equity at 31 December 2024 increased by \u20ac226,679 thousand compared to 31 December 2023. For further details, reference should be made to the paragraph \u201cSignificant events during the year\u201d. Movements are given in the relevant statement within the Consolidated Financial Report.
Share capital
The issued share capital amounted to \u20ac7,007 thousand at 31 December 2024. The table below shows the composition of the share capital and the number of shares outstanding at 31 December 2024:
Issued share capital (\u20ac) | No. of shares making up the share capital | No. of voting rights | |
Ordinary shares | 3,339,222.50 | 333,922,250 | 333,922,250 |
Special Voting Shares A (*) | 91,354.12 | 9,135,412 | 9,135,412 |
Special Voting Shares B (*) | 3,576,625.42 | 178,831,271 | 357,662,542 |
Total shares outstanding | 7,007,202.04 | 521,888,933 | 700,720,204 |
(*)For further information on the share capital, please see the Brembo website: Share Capital | Brembo Corporate. |
As part of its buy-back plan, in the first semester Brembo bought back 4,387,303 ordinary own shares (\u20ac57,456 thousand), which, together with the 10,664,557 ordinary own shares already held, represent 4.51% of the ordinary own shares.
Statutory reserve
The statutory reserve, created in 2024 from share capital decrease, is aimed to generate a reserve for future issued of special voting share, without any need to amend the Articles of Association.
Other reserves and retained earnings/(losses)
The General Shareholders\u2019 Meeting of the Parent Brembo N.V. held on 23 April 2024 approved the Financial Statements for the financial year ended 31 December 2023, allocating net income for the year amounting to \u20ac139,265,254.39 as follows:
to the Shareholders, a gross ordinary dividend of \u20ac0.30 per ordinary share outstanding, excluding own shares;
the remaining amount carried forward.
Minority interests
This item changed due to dividends paid to minorityshareholders, as well as to the change in consolidationdifferences.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__70": { "value": "13. Financial Debt and Derivatives
This item is broken down as follows:
(euro thousand) | ||||||
31.12.2024 | 31.12.2023 | |||||
Due within one year | Due after one year | Total | Due within one year | Due after one year | Total | |
Payables to banks: | ||||||
\u2013 overdrafts | 261,621 | 0 | 261,621 | 164,191 | 0 | 164,191 |
\u2013 loans | 163,673 | 574,236 | 737,909 | 108,078 | 487,615 | 595,693 |
Total | 425,294 | 574,236 | 999,530 | 272,269 | 487,615 | 759,884 |
Lease liabilities | 93,346 | 145,146 | 238,492 | 21,455 | 149,785 | 171,240 |
Payables to other financial institutions | 545 | 155 | 700 | 58,005 | 680 | 58,685 |
Derivatives measured at fair value | 1,607 | 2,574 | 4,181 | 160 | 0 | 160 |
Total | 95,498 | 147,875 | 243,373 | 79,620 | 150,465 | 230,085 |
The following table provides a breakdown of \u201cPayables to banks\u201d:
(euro thousand) | Amount at31.12.2023 | Amount at31.12.2024 | Portion due within one year | Portion due between 1 and 5 years | Portion due after 5 years |
Loans: | |||||
BNL loan (\u20ac100 million) | 75,288 | 50,143 | 25,149 | 24,994 | 0 |
BNL loan (\u20ac 200 million) | 205,009 | 174,849 | 49,930 | 124,919 | 0 |
Banca Popolare di Sondrio loan (\u20ac125 million) | 88,237 | 62,939 | 25,445 | 37,494 | 0 |
ISP loan (\u20ac100 milion) | 74,754 | 49,882 | 24,924 | 24,958 | 0 |
Banca Popolare di Sondrio loan (\u20ac150 million) | 149,786 | 149,849 | 37,439 | 112,410 | 0 |
Mediobanca loan (\u20ac100 million) | 0 | 99,761 | 0 | 88,656 | 11,105 |
Mediobanca loan (\u20ac150 million) | 0 | 149,840 | 140 | 149,700 | 0 |
Bankiter loan (\u20ac2 million) | 797 | 274 | 274 | 0 | 0 |
Banco Sabadell loan (\u20ac500 thousand) | 170 | 43 | 43 | 0 | 0 |
Santander loan (\u20ac2 million) | 354 | 51 | 51 | 0 | 0 |
Santander loan (\u20ac600 thousand) | 52 | 0 | 0 | 0 | 0 |
Santander 2020 loan (\u20ac2 million) | 689 | 174 | 174 | 0 | 0 |
Caixbank loan (\u20ac1 million) | 354 | 104 | 104 | 0 | 0 |
BBVA loan (\u20ac2 million) | 203 | 0 | 0 | 0 | 0 |
Total loans | 595,693 | 737,909 | 163,673 | 563,131 | 11,105 |
The most significant transactions finalized in 2024 includes the full draw-down of two medium-term loans of \u20ac100,000 thousand and \u20ac150,000 thousand contracted with Mediobanca.
It should be noted that several loans require compliance with certain financial covenants. At the end of the reporting year, all of these covenants had been met. The
current level of covenants allows the Group to benefit from a safety margin that does not entail the need to reclassify financial payables subject to such covenants as short-term financial payables. At 31 December 2024, there were no financial payables secured by collateral.
The following table shows the breakdown of \u201cOtherfinancial liabilities\u201d.
(euro thousand) | Amount at31.12.2023 | Amount at31.12.2024 | Portion due within one year | Portion due between 1 and 5 years | Portion due after 5 years |
Other financial liabilities: | |||||
Payables to other financial institutions: | |||||
Libra loan | 648 | 391 | 260 | 131 | 0 |
Payable due to liquidation of shares subject to withdrawal | 57,456 | 0 | 0 | 0 | 0 |
Ministerio Industria Espa\u00f1a | 500 | 257 | 257 | 0 | 0 |
Ministerio de Ciencia e Innovaci\u00d3n | 81 | 52 | 28 | 24 | 0 |
Total payables to other financial institutions | 58,685 | 700 | 545 | 155 | 0 |
Lease liabilities | 171,240 | 238,492 | 93,346 | 57,289 | 87,857 |
Total other financial liabilities | 229,925 | 239,192 | 93,891 | 57,444 | 87,857 |
At 31 December 2023, Brembo N.V. recognized a payable to the shareholders that validly exercized the right of withdrawal. Debt was repaid on 31 January 2024. For further information, reference should be made to section \u201cSignificant events during the year\u201d.
With regard to payments relating to optional lease renewal periods not included in the calculation of
liabilities at 31 December 2024, \u20ac 44,676 thousand of lease instalments, relating solely to properties and due beyond five years, were not subject to discounting.
The following table shows the structure of loans towardsbanks and other financial institutions, broken down byannual interest rate and currency:
(euro thousand) | ||||||
31.12.2024 | 31.12.2023 | |||||
Fixed rate | Variable rate | Total | Fixed rate | Variable rate | Total | |
Euro | 325,997 | 412,612 | 738,609 | 341,246 | 313,132 | 654,378 |
The average variable rate applicable to the Group\u2019s debt is 4.66% and the average fixed rate is 1.60%.
The item \u201cDerivatives\u201d includes the fair value relating to hedging through currency forward for \u20ac1,598 thousand and for \u20ac2,272 thousand to the fair value of derivative liability relating to a specific financial transaction hedging against the risk of fluctuation in the electricity price undertaken in 2024 by Brembo Poland Sp.Zo.o. It refers also for \u20ac311 thousand to the fair value of one IRS entered into directly by the Parent Brembo N.V., for a remaining notional amount of \u20ac100 million hedging the change in interest rate risk associated with a specific outstanding loan. This IRS falls within the requirements set forth in the accounting standards relating to hedge accounting (cash flow hedge). The change in fair value compared to 31 December 2023 was recognized as a component of comprehensive income, net of the tax effect, given that the hedge is fully effective.
At 31 December 2024, IRS derivatives had an overall positive fair value of \u20ac9,530 thousand, entirely recognized in a cash flow hedge reserve, gross of tax effects.
Changes in the Cash Flow Hedge Reserve, gross of tax effects, are as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Opening value | (29,873) | (75,643) |
Change in fair value reserve | (16,246) | 28,288 |
Change in reserve for payment/collection of differentials | 15,932 | 17,482 |
Closing value | (30,187) | (29,873) |
Net financial debt
The following table shows the reconciliation of the net financial debt at 31 December 2024 (\u20ac360,353 thousand) and at 31 December 2023 (\u20ac454,768 thousand) based on the layout prescribed by ESMA 32-382-1138 Guidelines of 4\u00a0March 2021:
(euro thousand) | 31.12.2024 | 31.12.2023 | |
A | Cash | 867,216 | 510,058 |
B | Cash equivalents | 0 | 0 |
C | Other current financial assets | 8,497 | 16,046 |
D | Liquidity (A + B + C) | 875,713 | 526,104 |
E | Current financial debt (including debt instruments, but excluding current portion of non-current financial debt) | 357,119 | 243,811 |
F | Current portion of non-current financial debt | 163,673 | 108,078 |
G | Current financial debt (E + F) | 520,792 | 351,889 |
H | Net current financial debt (G - D) | (354,921) | (174,215) |
I | Non-current financial debt (excluding current portion and debt instruments) | 715,274 | 628,983 |
J | Debt instruments | 0 | 0 |
K | Trade payables and other non-current payables | 0 | 0 |
L | Non-current financial debt (I + J + K) | 715,274 | 628,983 |
M | Total financial debt (H + L) | 360,353 | 454,768 |
The various components that gave rise to the change in net financial debt during the current year are presented in the Statement of Cash Flows in the Directors\u2019 Report.
Item \u201cNon-current financial debt (excluding the current portion and debt instruments)\u201d includes the non-current component of IRS derivatives amounting to \u20ac4,565 thousand.
Pursuant to IAS 7 \u2014 Statement of Cash Flows, changes in liabilities arising from financing activities are reported below. The table allows a reconciliation of the cash flows recognized in the Statement of Cash Flows in the Directors\u2019 Report and the total changes in the year of the Statement of Financial Position items that contribute to financial debt.
(euro thousand) | 31.12.2022 | Cash flows | |||||
Non-cash flow | |||||||
31.12.2023 | |||||||
Acquisitions | Exchange rate delta | FV | Other movements | ||||
Loans and payables to other financial institutions | 545,669 | 44,633 | 0 | 0 | 0 | 64,076 | 654,378 |
Lease liabilities | 241,196 | (92,590) | 16,054 | (3,545) | 0 | 10,125 | 171,240 |
Derivatives measured at fair value | 3,586 | 0 | 0 | 0 | (3,426) | 0 | 160 |
Total liabilities from financing activities | 790,451 | (47,957) | 16,054 | (3,545) | (3,426) | 74,201 | 825,778 |
(euro thousand) | 31.12.2023 | Cash flows | |||||
Non-cash flow | |||||||
31.12.2024 | |||||||
Acquisitions | Exchange rate delta | FV | Other movements | ||||
Loans and payables to other financial institutions | 654,378 | 83,612 | 0 | 0 | 0 | 619 | 738,609 |
Lease liabilities | 171,240 | (28,607) | 60,534 | 1,399 | 0 | 33,926 | 238,492 |
Derivatives measured at fair value | 160 | 0 | 0 | 0 | 4,021 | 0 | 4,181 |
Total liabilities from financing activities | 825,778 | 55,005 | 60,534 | 1,399 | 4,021 | 34,545 | 981,282 |
14. Other Non-current Liabilities
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Social security payables | 103 | 1,887 |
Payables to employees | 2,689 | 2,000 |
Other payables | 1 | 0 |
Total | 2,793 | 3,887 |
15. Provisions
This item is broken down as follows:
(euro thousand) | ||||||
31.12.2024 | 31.12.2023 | |||||
Provisions for contingencies and charges | Provision for product guarantees | Total | Provisions for contingencies and charges | Provision for product guarantees | Total | |
Balance at beginning of period | 19,052 | 14,766 | 33,818 | 9,557 | 16,042 | 25,599 |
Provisions | 3,256 | 4,287 | 7,543 | 7,563 | 4,253 | 11,816 |
Use/Release | (9,305) | (7,888) | (17,193) | (4,143) | (5,331) | (9,474) |
Exchange rate fluctuations | (56) | (47) | (103) | 151 | (198) | (47) |
Other | 1,738 | 0 | 1,738 | 5,924 | 0 | 5,924 |
Balance at the end of year | 14,685 | 11,118 | 25,803 | 19,052 | 14,766 | 33,818 |
of which short-term | 5,365 | 9,638 |
Provisions totalled \u20ac25,803 thousand, including a \u20ac11,118 thousand provision for product warranties for probable future costs linked to contractual warranties, supplemental customer indemnities \u2014 in connection with the Italian
agency contract \u2014 and the valuation of risks related to litigation underway, as well as an estimate of liabilities that could arise as a result of tax litigation in place.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__73": { "value": "16. Employee Benefits
Group companies provide post-employment benefits through defined contribution plans or defined benefit plans.
In the case of defined contribution plans, the Group companies pay contributions to public or private insurance institutes based on legal or contractual obligations or on a voluntary basis. Once such contributions have been paid, the companies have no further payment obligations.
Defined contribution plans include a plan relating to Brembo Huilian (Langfang) Brake Systems Co. Ltd. and reserved for 17 early retired employees, who have guaranteed monthly payments until they reach pension age.
The employees of the UK subsidiary AP Racing Ltd. have the benefit of a corporate pension plan (AP Racing Pension Scheme), which is made up of two sections: the first is a defined contribution plan for employees hired after 1 April 2001, and the second is a defined benefit plan for those already in service at 1 April 2001 (and previously covered by the AP Group Pension Fund). The defined benefit plan is funded by employer and employee contributions made to a trustee that is legally separate from the enterprise providing benefits to its employees.
Brembo M\u00e9xico S.A. de C.V., Brembo Japan Co. Ltd. and Brembo Brake India Pvt. Ltd. offer to their employees specific pension plans that qualify as defined benefit plans.
Defined benefit plans include also the \u201cEmployees\u2019 leaving entitlement\u201d provided by the Group\u2019s Italian companies, in accordance with current applicable regulations.
The value of defined benefit plans is calculated on an actuarial basis using the \u201cProjected Unit Credit Method\u201d.
Item \u201cOther employee benefits\u201d includes the liability associated with the 2022-2024 three-year incentive plan reserved for top managers, to be settled in May 2025.
Liabilities at 31 December 2024 are given in the table below:
(euro thousand) | ||||||||||
31.12.2024 | 31.12.2023 | |||||||||
Employees\u2019 leaving entitlement | Defined benefit plans | |||||||||
Defined contribution plans | Other long-term benefits | Total | Employees\u2019 leaving entitlement | Defined benefit plans | ||||||
Defined contribution plans | Other long-term benefits | Total | ||||||||
Balance at beginning of period | 12,598 | 4,232 | 614 | 19,001 | 36,445 | 12,350 | 3,698 | 924 | 7,114 | 24,086 |
Provisions | 0 | 906 | 5,046 | 11,269 | 17,221 | 0 | 802 | 3,060 | 12,156 | 16,018 |
Use/Release | (813) | (447) | (4,808) | (556) | (6,624) | (838) | (1,202) | (3,365) | 0 | (5,405) |
Interest expense | 406 | 357 | 0 | 535 | 1,298 | 478 | 305 | 0 | (214) | 569 |
Exchange rate fluctuations | 0 | (477) | 18 | 112 | (347) | 0 | 237 | (5) | (55) | 177 |
Other | (35) | (602) | 0 | 0 | (637) | 608 | 392 | 0 | 0 | 1,000 |
Balance at the end of year | 12,156 | 3,969 | 870 | 30,361 | 47,356 | 12,598 | 4,232 | 614 | 19,001 | 36,445 |
Defined benefit plans
(euro thousand) | |||||||||||
Unfunded plan (employees\u2019 leaving entitlement) | Funded Plan (AP Racing plan) | Brembo M\u00e9xico plan | Brembo Brake India plan | Brembo Japan plan | |||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | ||
A. | Change in defined benefit obligation | ||||||||||
1. | Defined benefit obligation at end of prior year | 12,598 | 12,350 | 25,509 | 24,701 | 3,697 | 2,718 | 2,124 | 1,827 | 307 | 307 |
2. | Service cost: | ||||||||||
Current service cost | 0 | 0 | 0 | 0 | 584 | 514 | 286 | 238 | 32 | 21 | |
3. | Interest expense | 406 | 478 | 1,231 | 1,237 | 315 | 268 | 147 | 130 | 3 | 3 |
4. | Cash flows: | ||||||||||
Benefit payments from plan | 0 | 0 | (1,080) | (878) | 0 | 0 | (11) | (16) | 0 | 0 | |
Benefit payments from employer | (813) | (838) | 0 | 0 | (266) | (62) | (39) | (37) | (30) | (4) | |
Other significant events: | |||||||||||
6. | Remeasurements: | ||||||||||
Effects of changes in demographic assumptions | 0 | 0 | (726) | (541) | 0 | 0 | 0 | (131) | 0 | 0 | |
Effects of changes in financial assumptions | (35) | 608 | (2,273) | 441 | (119) | 27 | 65 | 144 | 0 | 0 | |
Effects of experience adjustments (changes occurred since the previous measurement not in line with assumptions) | 0 | 0 | 191 | 42 | (225) | (110) | 27 | 54 | 0 | 0 | |
7. | Effect of changes in foreign exchange rates | 0 | 0 | 1,178 | 507 | (460) | 342 | 79 | (85) | (10) | (26) |
8. | Defined benefit obligations at end of year | 12,156 | 12,598 | 24,030 | 25,509 | 3,526 | 3,697 | 2,678 | 2,124 | 302 | 301 |
(euro thousand) | |||||||||||
Unfunded plan (employees\u2019 leaving entitlement) | Funded Plan (AP Racing plan) | Brembo M\u00e9xico plan | Brembo Brake India plan | Brembo Japan plan | |||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | ||
B. | Change in fair value of plan assets | ||||||||||
1. | Fair value of plan assets at end of prior year | 0 | 0 | 26,753 | 25,293 | 0 | 0 | 651 | 562 | 0 | 0 |
2. | Interest income | 0 | 0 | 1,292 | 1,291 | 0 | 0 | 47 | 42 | 0 | 0 |
3. | Cash flows: | ||||||||||
Total employer contributions: | |||||||||||
- employer contributions | 0 | 0 | 0 | 951 | 0 | 0 | 113 | 85 | 0 | 0 | |
- employer direct benefit payments | 815 | 838 | 0 | 0 | 266 | 62 | 41 | 37 | 0 | 0 | |
Benefit payments from plan | 0 | 0 | (1,080) | (878) | 0 | 0 | (11) | (16) | 0 | 0 | |
Benefit payments from employer | (815) | (838) | 0 | 0 | (266) | (62) | (41) | (37) | 0 | 0 | |
5. | Remeasurements: | ||||||||||
Return on plan assets (excluding interest income) | 0 | 0 | (2,466) | (427) | 0 | 0 | 4 | 9 | 0 | 0 | |
6. | Effect of changes in foreign exchange rates | 0 | 0 | 1,239 | 523 | 0 | 0 | 25 | (31) | 0 | 0 |
7. | Fair value of plan assets at end of year | 0 | 0 | 25,738 | 26,753 | 0 | 0 | 829 | 651 | 0 | 0 |
E. | Amounts recognized in the Statement of Financial Position | ||||||||||
1. | Defined benefit obligation | 12,156 | 12,598 | 24,030 | 25,509 | 3,526 | 3,697 | 2,678 | 2,124 | 302 | 301 |
2. | Fair value of plan assets | 0 | 0 | 25,738 | 26,753 | 0 | 0 | 829 | 651 | 0 | 0 |
3. | Funded status | 12,156 | 12,598 | (1,708) | (1,244) | 3,526 | 3,697 | 1,849 | 1,473 | 302 | 301 |
5. | Net liability (asset) | 12,156 | 12,598 | (1,708) | (1,244) | 3,526 | 3,697 | 1,849 | 1,473 | 302 | 301 |
F. | Components of defined benefit cost | ||||||||||
1. | Service cost: | ||||||||||
a. Current service cost | 0 | 0 | 0 | 0 | 584 | 514 | 286 | 238 | 32 | 21 | |
e.Total service cost | 0 | 0 | 0 | 0 | 584 | 514 | 286 | 238 | 32 | 21 | |
2. | Net interest expense: | ||||||||||
Interest expense on defined benefit plans | 406 | 478 | 1,231 | 1,237 | 315 | 268 | 147 | 130 | 3 | 3 | |
Interest (income) on plan assets | 0 | 0 | (1,292) | (1,291) | 0 | 0 | (47) | (42) | 0 | 0 | |
Total net interest expense | 406 | 478 | (61) | (54) | 315 | 268 | 100 | 88 | 3 | 3 | |
3. | Remeasurement on other long-term benefits | 0 | 0 | 0 | 0 | 0 | 0 | 4 | (48) | 0 | 0 |
5. | Defined benefit cost included in P&L | 406 | 478 | (61) | (54) | 899 | 782 | 390 | 278 | 35 | 24 |
6. | Remeasurements (recognized in Other Comprehensive Income) |
(euro thousand) | |||||||||||
Unfunded plan (employees\u2019 leaving entitlement) | Funded Plan (AP Racing plan) | Brembo M\u00e9xico plan | Brembo Brake India plan | Brembo Japan plan | |||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | ||
Effects of changes in demographic assumptions | 0 | 0 | (726) | (541) | 0 | 0 | 0 | (31) | 0 | 0 | |
Effects of changes in financial assumptions | (35) | 608 | (2,273) | 441 | (119) | 27 | 40 | 89 | 0 | 0 | |
Effects of experience adjustments (changes occurred since the previous measurement not in line with assumptions) | 0 | 0 | 191 | 42 | (225) | (110) | 49 | 57 | 0 | 0 | |
Return on plan assets (excluding interest income) | 0 | 0 | 2,466 | 427 | 0 | 0 | (5) | (9) | 0 | 0 | |
Total remeasurements included in OCI | (35) | 608 | (342) | 369 | (344) | (83) | 84 | 106 | 0 | 0 | |
7. | Total defined benefit cost recognized in P&L and OCI | 371 | 1,086 | (403) | 315 | 555 | 699 | 474 | 384 | 35 | 24 |
G. | Net defined benefit liability (asset) reconciliation | ||||||||||
1. | Net defined benefit liability (asset) | 12.598 | 12.350 | (1.244) | (592) | 3.697 | 2.718 | 1.473 | 1.265 | 307 | 307 |
2. | Defined benefit cost included in P&L | 406 | 478 | (61) | (54) | 899 | 782 | 390 | 278 | 35 | 24 |
3. | Total remeasurements included in OCI | (35) | 608 | (342) | 369 | (344) | (83) | 84 | 106 | 0 | 0 |
4. | Other significant events | ||||||||||
5. | Cash flows: | ||||||||||
Employer contributions | 0 | 0 | 0 | (951) | 0 | 0 | (113) | (85) | 0 | 0 | |
Employer direct benefit payments | (813) | (838) | 0 | 0 | (266) | (62) | (39) | (37) | (30) | (4) | |
7. | Effect of changes in foreign exchange rates | 0 | 0 | (61) | (16) | (460) | 342 | 54 | (54) | (10) | (26) |
8. | Net defined benefit liability (asset) at end of year | 12.156 | 12.598 | (1.708) | (1.244) | 3.526 | 3.697 | 1.849 | 1.473 | 302 | 301 |
H. | Defined benefit obligation | ||||||||||
1. | Defined benefit obligation by participant status: | ||||||||||
Actives | 12,156 | 12,584 | 0 | 0 | 3,526 | 3,697 | 2,678 | 2,124 | 0 | 0 | |
Vested deferred | 0 | 0 | 10,272 | 12,641 | 0 | 0 | 0 | 0 | 0 | 0 | |
Retirees | 0 | 0 | 13,758 | 12,868 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total | 12,156 | 12,584 | 24,030 | 25,509 | 3,526 | 3,697 | 2,678 | 2,124 | 0 | 0 | |
I. | Plan assets | ||||||||||
1. | Fair value of plan assets | ||||||||||
Cash and cash equivalents | 0 | 0 | 1,425 | 158 | 0 | 0 | 0 | 0 | 0 | 0 | |
Equity instruments | 0 | 0 | 3,936 | 8,410 | 0 | 0 | 0 | 0 | 0 | 0 |
(euro thousand) | |||||||||||
Unfunded plan (employees\u2019 leaving entitlement) | Funded Plan (AP Racing plan) | Brembo M\u00e9xico plan | Brembo Brake India plan | Brembo Japan plan | |||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | ||
Debt instruments | 0 | 0 | 3,163 | 4,071 | 0 | 0 | 0 | 0 | 0 | 0 | |
Derivatives | 0 | 0 | 15,257 | 8,461 | 0 | 0 | 0 | 0 | 0 | 0 | |
Investment funds | 0 | 0 | 1,957 | 5,653 | 0 | 0 | 0 | 0 | 0 | 0 | |
Assets held by insurance company | 0 | 0 | 0 | 0 | 0 | 0 | 829 | 651 | 0 | 0 | |
Total | 0 | 0 | 25,738 | 26,753 | 0 | 0 | 829 | 651 | 0 | 0 | |
2. | Fair value of assets that have quoted market prices | ||||||||||
Cash and cash equivalents | 0 | 0 | 1,425 | 158 | 0 | 0 | 0 | 0 | 0 | 0 | |
Equity instruments | 0 | 0 | 3,936 | 8,410 | 0 | 0 | 0 | 0 | 0 | 0 | |
Debt instruments | 0 | 0 | 3,163 | 4,071 | 0 | 0 | 0 | 0 | 0 | 0 | |
Derivatives | 0 | 0 | 15,257 | 8,461 | 0 | 0 | 0 | 0 | 0 | 0 | |
Investment funds | 0 | 0 | 1,957 | 5,653 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total | 0 | 0 | 25,738 | 26,753 | 0 | 0 | 0 | 0 | 0 | 0 | |
J. | Significant actuarial assumptions | ||||||||||
Weighted-average assumptions to determine benefit obligations | |||||||||||
1. | Discount rates | 3.30% | 3.40% | 5.55% | 4.80% | 11.00% | 9.25% | 6.90% | 7.30% | 0.50% | 0.50% |
2. | Duration used to set the discount rate (years) | N/A | N/A | 13.00 | 15.00 | 9.09 | 10.08 | 8.87 | 8.85 | N/A | N/A |
3. | Rate of salary increase | 0.00% | N/A | N/A | N/A | 4.50% | 4.50% | 10.00% | 10.00% | N/A | N/A |
4. | Pension increase rate | 0.00% | N/A | 3.00% | 3.00% | 0.00% | 0.00% | 0.00% | 0.00% | 2.50% | 2.50% |
5. | Rate of price inflation | 1.80% | 2.00% | 3.20% | 3.20% | 3.50% | 3.50% | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average assumptions to determine defined benefit cost | |||||||||||
1. | Discount rates | 3.40% | 4.10% | 4.80% | 5.00% | 9.25% | 9.25% | 7.30% | 7.60% | 0.50% | 0.50% |
2. | Rate of salary increase | 0.00% | N/A | N/A | N/A | 4.50% | 4.50% | 10.00% | 9.00% | N/A | N/A |
3. | Pension increase rate | 0.00% | N/A | 3.00% | 3.10% | 0.00% | 0.00% | 0.00% | 0.00% | N/A | N/A |
4. | Rate of price inflation | 2.00% | 2.40% | 3.20% | 3.30% | 3.50% | 3.50% | 0.00% | 0.00% | 0.00% | 0.00% |
K. | Sensitivity analysis | ||||||||||
Present value of defined benefit obligation | |||||||||||
Discount rate -25 basis points | 12,482 | 12,938 | 24,757 | 26,353 | 3,472 | 3,771 | 2,724 | 2,161 | N/A | N/A | |
Discount rate +25 basis points | 11,807 | 12,240 | 23,341 | 24,709 | 3,422 | 3,601 | 2,639 | 2,094 | N/A | N/A |
(euro thousand) | ||||||||||
Unfunded plan (employees\u2019 leaving entitlement) | Funded Plan (AP Racing plan) | Brembo M\u00e9xico plan | Brembo Brake India plan | Brembo Japan plan | ||||||
31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | 31.12.2024 | 31.12.2023 | |
Rate of salary increase -25 basis points | 12,139 | 12,584 | 24,031 | 25,509 | 3,379 | 3,614 | 2,645 | 2,100 | N/A | N/A |
Rate of salary increase +25 basis points | 12,139 | 12,584 | 24,031 | 25,509 | 3,514 | 3,757 | 2,717 | 2,156 | N/A | N/A |
% impact on the defined benefit obligation | ||||||||||
Discount rate -25 basis points | 2.82% | 2.82% | 3.02% | 3.31% | 0.76% | 2.35% | 1.62% | 1.60% | 0.00% | 0.00% |
Discount rate +25 basis points | -2.74% | -2.74% | -2.87% | -3.14% | -0.69% | -2.27% | -1.57% | -1.55% | 0.00% | 0.00% |
Rate of salary increase -25 basis points | 0.00% | 0.00% | 0.00% | 0.00% | -1.94% | -1.92% | -1.32% | -1.31% | 0.00% | 0.00% |
Rate of salary increase +25 basis points | 0.00% | 0.00% | 0.00% | 0.00% | 2.00% | 1.97% | 1.35% | 1.34% | 0.00% | 0.00% |
Change in defined benefit obligation | ||||||||||
Discount rate -25 basis points | 342 | 354 | 726 | 843 | 26 | 87 | 43 | 34 | N/A | N/A |
Discount rate +25 basis points | (332) | (344) | (690) | (801) | (24) | (84) | (42) | (33) | N/A | N/A |
Rate of salary increase -25 basis points | 0 | 0 | 0 | 0 | (67) | (71) | (35) | (28) | N/A | N/A |
Rate of salary increase +25 basis points | 0 | 0 | 0 | 0 | 69 | 73 | 36 | 28 | N/A | N/A |
Duration of defined benefit obligation (in years) | ||||||||||
Weighted average duration of defined benefit obligation (in years) | 22.17 | 11.49 | 13.00 | 15.00 | 9.09 | 10.08 | 9.32 | 9.13 | N/A | N/A |
By applying a uniform change in the discount rate by +/-25 basis points, the consolidated liabilities would have been respectively lower/higher by approximately \u20ac1.29 million compared to the base liabilities value of \u20ac42.5 million. The average duration of the plans is 12.01 years.
17. Trade Payables
At 31 December 2024, trade payables were as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Trade payables | 683,402 | 724,217 |
Payables to associates and joint ventures | 14,172 | 17,882 |
Total | 697,574 | 742,099 |
18. Tax payables
This item reflects the net amount due for the current taxes of the Group\u2019s companies.
(euro thousand) | 31.12.2024 | 31.12.2023 |
Tax payables | 11,719 | 11,560 |
19. Contract Liabilities and Other Current Payables\t
At 31 December 2024, this item was broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Tax payables other than current tax | 15,607 | 12,190 |
Social security payables | 30,288 | 25,048 |
Payables to employees | 79,227 | 78,081 |
Contract liabilities | 80,347 | 75,461 |
Other payables | 41,454 | 34,935 |
Total | 246,923 | 225,715 |
Item \u201cContract liabilities\u201d refers to grants received by customers towards development activities suspended until the conclusion of the development activity and then recognized over the useful lives of the products to which the grants refer (2024: \u20ac17,010 thousand).
Consolidated Statement of Income
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__77": { "value": "20. Revenue from Contracts with Customers
The item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Revenue from sales of brake systems | 3,773,756 | 3,788,929 |
Revenue from equipment | 32,332 | 33,435 |
Revenue from study and design acivities | 33,700 | 25,205 |
Revenue from royalties | 855 | 1,633 |
Total | 3,840,643 | 3,849,202 |
The breakdown of Group sales by geographical area of destination and by application is provided in the Directors\u2019 Report.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__78": { "value": "21. Other Revenues and Income
This item is made up of:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Miscellaneous recharges | 7,178 | 9,788 |
Gains on disposal of assets | 2,491 | 1,228 |
Miscellaneous grants | 27,853 | 29,316 |
Other revenues | 10,404 | 4,794 |
Total | 47,926 | 45,126 |
The item \u201cMiscellaneous grants\u201d refers to grants for personnel training, research and development projects and the purchase of new capital goods. Moreover, in 2024 Brembo N.V. and Brembo Poland Spolka Zo.o. recognized \u20ac21,024 thousand for grants relating to electricity and gas.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__79": { "value": "22. Costs for Capitalized Internal Works
This item refers to the capitalization of development costs incurred during the year, amounting to \u20ac31,497 thousand (2023: \u20ac28,601 thousand).
", "dimensions": { "concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__80": { "value": "23. Cost of Raw Materials, Consumables and Goods
The item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Purchase of raw materials, semi-finished and finished products | 1,580,922 | 1,599,569 |
Purchase of consumables | 177,523 | 188,753 |
Total | 1,758,445 | 1,788,322 |
The change compared to 2023 is attributable to a policy aimed at increasing supplies in order to tackle any supply chain-related risks.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__82": { "value": "25. Other Operating Costs
These costs are broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Transports | 98,337 | 93,693 |
Maintenance, repairs and utilities | 259,577 | 308,788 |
Contracted work | 158,437 | 153,379 |
Leases | 47,948 | 37,592 |
Other operating costs | 222,972 | 210,801 |
Total | 787,271 | 804,253 |
Item \u201cOther operating costs\u201d mainly includes the costs of travels, quality-related costs and insurance costs, as well as fees for legal, technical and commercial consulting.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__83": { "value": "26. Personnel Expenses
Breakdown of personnel expenses is as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Wages and salaries | 509,332 | 467,540 |
Social security contributions | 112,917 | 103,362 |
Employees' leaving entitlement and other personnel provisions | 18,582 | 15,875 |
Other costs | 88,716 | 94,843 |
Total | 729,547 | 681,620 |
Item \u201cOther costs\u201d refers for \u20ac55,703 thousand (\u20ac63,247 thousand in 2023) to the cost of the agency workers incurred by the Group.
The average number and the year-end number of Groupemployees by category were as follows:
Managers | White-collars | Blue-collars | Total | |
2024: average | 174 | 4,276 | 9,764 | 14,214 |
2023: average | 162 | 3,975 | 9,344 | 13,481 |
Changes | 12 | 301 | 420 | 733 |
Total at 31.12.2024 | 184 | 4,352 | 9,812 | 14,348 |
Total at 31.12.2023 | 162 | 4,109 | 9,383 | 13,654 |
Changes | 22 | 243 | 429 | 694 |
The number of agency workers at 31 December 2024 was1,113 (1,999 at 31 December 2023).
Please note that no employees work at companies with registered offices in the Netherlands, as the Group\u2019s actual and operating headquarter continues to be located in Italy.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__84": { "value": "27. Depreciation, Amortization and Impairment Losses
The item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Amortization of intangible assets: | ||
Development costs | 24,928 | 23,461 |
Industrial patents and similar rights for original work | 1,553 | 1,355 |
Licenses, trademarks and similar rights | 815 | 810 |
Other intangible assets | 11,367 | 11,332 |
Total | 38,663 | 36,958 |
Depreciation of property, plant and equipment: | ||
Buildings | 22,327 | 19,988 |
Plant and machinery | 146,684 | 138,746 |
Industrial and commercial equipment | 22,825 | 19,994 |
Other assets | 6,953 | 7,024 |
Right of use assets | 25,882 | 25,879 |
Total | 224,671 | 211,631 |
Imparment losses: | ||
Property, plant and equipment | 1,861 | 703 |
Intangible assets | 2,528 | 2,414 |
Total | 4,389 | 3,117 |
Total amortization, depreciation and impairment losses | 267,723 | 251,706 |
Comments on impairment losses are provided in the notesto the Statement of Financial Position items.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__85": { "value": "28. Net Interest Income (Expense)
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Exchange rate gains | 294,896 | 147,358 |
Interests income from employee's entitlement indemnity and other personnel provisions | 1,339 | 1,332 |
Interest income | 23,549 | 21,899 |
Total interest income | 319,784 | 170,589 |
Exchange rate losses | (307,404) | (161,309) |
Interests expense from employee's leaving entitlement and other personnel provisions | (2,102) | (2,115) |
Lease interest expense | (5,155) | (5,448) |
Interest expense | (43,696) | (36,045) |
Total interest expense | (358,357) | (204,917) |
Total net interest income (expense) | (38,573) | (34,328) |
Items \u201cExchange rate gains\u201d and \u201cExchange rate losses\u201d include the effects of the management of foreign exchange hedges undertaken through forward contracts for a negative amount of \u20ac 7,143 thousand. For contracts of this type, the Company does not opt to apply hedge accounting pursuant to IFRS 9 since there is no formal designation of the hedged item and hedging instrument, in the belief that the representation of the impact of the strategy for hedging this risk on the Statement of Income and Statement of Financial Position is nonetheless assured.
Net exchange differences as at 31 December 2024, amounting to a negative \u20ac12,508 thousand (negative for \u20ac13,951 thousand at 31 December 2023), relate mainly to the effect of translation into local currency of accounts receivable and payable in foreign currencies included in the financial statements of foreign subsidiaries.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__86": { "value": "29. Interest Income (Expense) from Investments
Net interest income from investments (excluding non-financial investments described in Note 24) amounted to \u20ac11,131 thousand (\u20ac12,256 thousand in 2023), and was mainly attributable to the dividends received by investees not included in the consolidation area and, for the remainder, to the effects of valuing investments in associates using the equity method.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__87": { "value": "30. Taxes
This item is broken down as follows:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Current taxes | 105,048 | 110,759 |
Deferred taxes (assets) and liabilities | (10,519) | (26,444) |
Prior years' taxes and other tax payables | 5,041 | 522 |
Total | 99,570 | 84,837 |
The following is a reconciliation of theoretical and actual tax burden:
(euro thousand) | 31.12.2024 | 31.12.2023 |
Theoretical income taxes | 85,161 | 91,119 |
Prior years\u2019 taxes | 942 | (347) |
Other differences | 34,822 | 7,282 |
Tax incentive effects | (5,660) | (17,917) |
Unallocated DTA effect | (170) | (1,316) |
DTA adjustment effect | (21,843) | (396) |
Current and deferred taxes (excluding IRAP) | 93,252 | 78,425 |
Current and deferred IRAP | 6,318 | 6,412 |
Total | 99,570 | 84,837 |
The Group\u2019s actual tax rate is 27.2%, compared with a theoretical tax rate of 25.0% (at 31 December 2023: actual tax rate was 21,6%; theoretical tax rate was 24.9%).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__88": { "value": "31. Earnings Per Share
Basic earnings per share were \u20ac0.82 at 31 December 2024 (\u20ac0.94 at 31 December 2023), and were calculated by dividing the net income or loss for the year attributable to holders of ordinary equity instruments of the Parent by the weighted average number of ordinary shares outstanding in 2024, amounting to 319,230,990 (2023: 323,640,100). Diluted earnings per share are identical to basic earnings per share inasmuch as no diluting transactions were undertaken.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s8__6__89": { "value": "32 Statement of Comprehensive Income
The Statement of Comprehensive Income includes:
the fair value measurement of the interests in Pirelli S.p.A. and E-Novia S.p.A., net of the tax effect, positive for \u20ac4,729 thousand (positive for \u20ac50,885 thousand in 2023);
the fair value measurement of derivatives, net of the tax effect, positive for \u20ac4,113 thousand (negative for \u20ac39,239 thousand in 2023);
the actuarial value on defined benefit plans, net of the tax effect, positive for \u20ac542 thousand (negative for \u20ac816 thousand in the previous year);
the change in the translation adjustment reserve positive for \u20ac51,408 thousand (negative for \u20ac7,293 thousand in 2023).
", "dimensions": { "concept": "BRE:DisclosureOfComprehensiveIncome", "language": "en", "entity": "scheme:549300BLWVJN2BAT0A44", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } } } }