A balanced business model
GBL\u2019s paid dividend is primarily derived from (i) the net dividend paid out by its portfolio companies and (ii) the contribution of GBL Capital and Sienna Investment Managers (\u201cSIM\u201d) to GBL\u2019s cash earnings, after deduction of its cost structure.
GBL\u2019s financial flexibility has been enhanced as a result of the revised dividend policy introduced in 2020. GBL has set a payout ratio of between 75% and 100% of its cash earnings from 2021 onwards by way of\u00a0ordinary dividend, while reserving the option of paying exceptional dividends in the future when and if deemed appropriate.
On this basis, GBL will continue to provide an attractive dividend yield to its shareholders while releasing additional financial resources to support (i) the net asset value growth throughout the cycle, (ii) its portfolio companies if needed and (iii) the execution of the group\u2019s share buyback program.
GBL\u2019s payout ratio is derived from the cash earnings. As a result, this ratio excludes cash inflows from asset disposals (including capital gains). GBL has a solid liquidity profile ensuring the availability of resources to implement its investment strategy throughout the economic cycle.
Solid and flexible financial structure
GBL\u2019s objective is to maintain a sound financial structure, with:
a solid liquidity profile; and
limited net indebtedness relative to its portfolio value.\t
The financial strength derived from the liquidity profile ensures resources are readily available to quickly seize investment opportunities throughout the economic cycle.
The Loan To Value ratio fluctuates primarily depending on the deployment of capital for investments and more generally on the implementation of the portfolio rotation strategy. As part of financial discipline, the Loan To Value target is to maintain it below 10% through the cycle. While the effective Loan To Value ratio may exceed that threshold, it should (i) not exceed it for a prolonged period and (ii)\u00a0remain below 25%.
This conservative approach is consistent with GBL\u2019s philosophy of capital preservation and allows GBL to continue investing and generating returns throughout the cycle.
At year-end 2023, GBL had:
a Loan To Value ratio of 11.4%; and
a liquidity profile of EUR\u00a03.5 billion, consisting of gross cash for EUR\u00a01.1 billion and undrawn committed credit lines (having no financial covenants) for EUR\u00a02.4 billion maturing progressively over the 2027-2028 period.
7.1.6\tAccounting policies
Groupe Bruxelles Lambert SA (\u201cGBL\u201d) is a Belgian holding company listed on Euronext Brussels. Its consolidated financial statements cover a period of 12 months ended December\u00a031, 2023. They were approved by its Board of Directors on March 14, 2024 on a going concern basis, in millions of euros, to one decimal place and rounded to the nearest hundred thousand euros.
General accounting principles and applicable standards
The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union.
Mandatory changes in accounting policies
The following amended standards have been applied since the 2023 financial year. They did not have any material impact on GBL\u2019s consolidated financial statements.
IFRS 17 Insurance Contracts;
Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 \u2013 Comparative Information ;
Amendments to IAS 1 Presentation of Financial Statementsand IFRS Practice Statement 2: Disclosure of Accounting Policies;
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates;
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction; and
Amendments to IAS 12 Income taxes: International Tax Reform-Pillar Two Model Rules (effective immediately but not yet endorsed in the EU \u2013 disclosures are required for annual periods beginning on or after January 1, 2023).
Texts in force after the reporting date
GBL did not opt for the early adoption of the new and amended standards which entered into force after December\u00a031, 2022, namely:
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Non- current Liabilities with Covenants (applicable for annual periods beginning on or after January 1, 2024);
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (applicable for annual periods beginning on or after January 1, 2024);
Amendments to IAS 7 Statement of Cash Flowsand IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements (applicable for annual periods beginning on or after January 1, 2024, but not yet endorsed in the EU); and
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (applicable for annual periods beginning on or after January 1, 2025, but not yet endorsed in the\u00a0EU).
The future application of these new and amended standards should not have a significant impact on the group\u2019s consolidated financial statements.
Basis and scope of consolidation
The consolidated financial statements, prepared before appropriation of result, include those of GBL and its subsidiaries (the \u201cgroup\u201d) and the interests of the group in joint ventures and associates accounted for using the equity method. The important subsidiaries, joint ventures and associates close their accounts on December\u00a031.
Controlled companies
Controlled companies are entities for which GBL is exposed to variable returns because of ties to these entities and has the ability to influence these returns because of the control that GBL has over these entities. Controlled companies are consolidated.
Intragroup balances and transactions as well as unrealized gains (losses) are eliminated. Newly acquired companies are consolidated as from the date of acquisition.
Joint ventures
A joint venture is a company over which GBL has joint control with one or more other parties and for which the parties have a claim to the company\u2019s net assets. Joint control is the contractually agreed sharing of the control exercised over a company, which only exists in cases where decisions regarding the relevant operations require the unanimous consent of the parties sharing control. These joint ventures are accounted for in the consolidated financial statements using the equity method.
Associates
If the group has a significant influence in a company, the investment it holds in that company is considered as an associate company.Significant influence is the power to participate in decisions about financial and operational policies, but without exercising control or joint control over these policies.
Associates are accounted for in the consolidated financial statements using the equity method.
An investment is accounted for using the equity method as from the date it becomes an investment in an associate or joint venture. Under the equity method, the investment in an associate or joint venture is recorded at cost on initial recognition.
In the absence of definition in the standards of the notion of cost, the group considers, in the event of a change from an \u201cother equity investment\u2013financial assets recognized at fair value through equity\u201d to an associate, the fair value at the date of the first equity method as the cost. The revaluation reserve accounted for until that date is transferred to consolidated reserves.
Intangible assets
Intangible assets are recorded at cost less any accumulated amortization and potential impairment losses.
Intangible assets with finite useful life are amortized on a straight- line basis over the following estimated useful lives and include among others:
software: 1 to 8 years;
trademarks, patents and licenses: 5 to 40 years \u2013 notably: 30 years for the trademark \u201cCanyon\u201d;
customer relations: 5 to 50 years \u2013 notably: between 20 and 50 years for Affidea and 11 years for Sanoptis;
hospital accreditations (Sanoptis): 15 years;
industrial processes and others: estimated useful life, specific to the project.
Intangible assets with an indefinite useful life are not amortized but are tested for impairment annually at the close of the financial year (or at an earlier date should there be an indication of impairment). When the recoverable amount of an asset is less than its carrying amount, this carrying amount is reduced to reflect the loss of value.
Intangible assets include brands and customer relations, which may have a de\ufb01ned or indefinite useful life, determined according to the results of an analysis of the following criteria: (i) impact on customers, (ii) stability (versus an expected change in the short or medium term) and (iii) competitive environment.
In the absence of any applicable standard or interpretation, Imerys treats greenhouse gas emission credits as intangible assets. Imerys holds these credits solely to prove the volume of its emissions and does not trade them, for example through forward purchases or sales. The recognized value of credits received free of charge is zero and credits purchased on the market are recognized at their purchase price. If the credits held are less than the actual emissions at the reporting date, a provision is recognized in profit or loss that is equal to the value of the credits to be purchased, measured at their market value (net liability method). Disposals are only related to surplus credits and are recognized in profit or loss as asset disposals. The group\u2019s greenhouse gas emission rights cannot be amortized.
Business combinations and goodwill
When the group acquires a business, the identifiable assets and liabilities of the acquired entity are recorded at fair value on the acquisition date.
The counterparty transferred to a business combination corresponds to the fair value of the transferred assets (including cash), the assumed liabilities and the shareholders\u2019 equity instruments issued by the group in exchange for the control of the acquired entity. The costs directly related to the acquisition are generally recognized in profit or loss.
Goodwill is calculated as the positive difference between the following two elements:
the sum of (i) the counterparty transferred and, where appropriate, (ii) the amount of the non-controlling interests (minority interests) in the acquired entity, and (iii) the fair value of interests already held by the group prior to acquiring the controlling interest; and
the net amount on the date of acquisition of the identifiable assets and liabilities acquired and assumed.
If, after confirmation of the values, this difference proves to be negative, this amount is immediately recorded in the income statement as a gain from a bargain purchase.
Goodwill is accounted for as an asset in the balance sheet under the heading \u201cGoodwill\u201d and is subject to an annual impairment test, which consists in comparing the recoverable amount of the cash generating units (\u201cCGU\u201d) to which the goodwill has been allocated with their carrying amount (including the goodwill). If the latter is higher, an impairment loss must be recorded in the income statement.
In addition, in valuing goodwill as outlined above, the amount of the non-controlling interests can be valued on a case by case basis and at GBL\u2019s choice, either at fair value (the so-called \u201cfull goodwill\u201d option) or at the share of the identifiable net asset in the acquired entity.
When an activity is put up for sale, a share of the goodwill of the CGU to which the activity belongs is allocated to it and included in the measurement of its carrying amount. This allocation is made on the basis of the relative fair values of the business for sale and the retained portion of the CGU.
Finally, where there are options to purchase non-controlling interests, the group has opted to eliminate any non-controlling interests at the time of acquisition. The financial liability resulting from this contract is reevaluated at each closing, with any subsequent change recognized in the income statement.
Property, plant and equipment
Fully owned property, plant and equipment
Items of property, plant and equipment are recorded under assets if they are controlled as a result of a deed of ownership. Items of property, plant and equipment are initially valued at acquisition or production cost.
The cost of property, plant and equipment includes the cost of loans contracted to finance their construction or production when they necessitate a substantial period of time. The cost of the assets is reduced, where appropriate, by the amount of public subsidies used to finance their acquisition or construction.
Maintenance and repair costs are immediately expensed under \u201cOther operating income (expenses) from operating activities\u201d. The cost of property, plant and equipment includes, in particular for satellite industrial installations built on clients\u2019 land, the present value of the rehabilitation or dismantling obligation, where such an obligation exists. Property, plant and equipment are subsequently valued at cost less accumulated depreciation and any accumulated impairment losses.
Leasehold property, plant and equipment
All contracts that convey the right to use an item of non-substitutable property, plant and equipment for a period of time in exchange for consideration are recognized as right-of-use assets against a lease liability. This treatment applies to all leases except mine land leases, which are recognized in the manner described in the following paragraph, as well as immaterial leases (leases with terms of 12\u2248months or less and leases of low-value assets), for which payments are recognized as an expense.
At Imerys level, easements, especially for pipelines used to connect mineral deposits, processing facilities and shipping facilities are analyzed as non-mine land leases. Right-of-use assets are initially measured at the value of the lease liability, plus any initial direct costs and equipment dismantling costs where necessary. Lease liabilities are measured at the discounted value of future lease payments due in accordance with a contractual payment schedule, adjusted for rent-free periods. Payments are therefore scheduled through to the reasonably certain end date of the lease, reflecting the date beyond which the lease ceases to be legally enforceable. This date represents the end of the lease, adjusted for any options the lessee is able to exercise regarding early termination or extension and any restrictions the lessor is able to exercise. The lease payments taken into account in the calculation of the lease liabilities include the unconditional payments due in exchange for the right to use the asset, as well as the cost related to the early termination, extension or purchase clauses when it is reasonably certain they will be exercised.
The liability calculation excludes any variable payment related to the use of the asset (at the level of Imerys, for example, a payment dependent on the actual number of hours a piece of mining equipment is used), as well as any payment for services rendered by the lessor (for example, at Imerys, rail car maintenance). In the absence of implicit interest rates, future payments determined in this way are discounted using the lessees\u2019 incremental borrowing rate.
The first time deferred tax assets and liabilities are recognized, they are calculated separately for lease liabilities and right-of-use assets, respectively. In subsequent years, right-of-use assets are amortized under the headings \u201cOther operating income (expenses) from investing activities\u201d or \u201cDepreciation/amortization of property, plant, equipment and intangible assets\u201d of the consolidated income statement and lease liabilities are measured at amortized cost, which generates an interest expense that is recognized in financial income (loss).
When an option is exercised, the lease must be reassessed to symmetrically adjust the carrying amounts of the lease liability and the right of use.
Any modification to leases gives rise to such a symmetrical adjustment, except when the scope of the lease is restricted to reduce the capacity of the asset leased or the duration of the lease. In this situation, the carrying amount of the lease liability and the right-of-use are reduced in proportion to the reduction of the scope, impacting the income statement.
Mining assets
In the absence of any specific applicable standard or interpretation, Imerys has defined the following methods to recognize and measure mining assets. Prospection expenditure, i.e., searching for new sites with mineral producing potential and studying the technical feasibility and commercial viability of a geographical area, is immediately recognized as an expense under the heading \u201cOther operating income (expenses) from operating activities\u201d. Mineral reserves are included in property, plant and equipment. Freehold mineral deposits are initially measured at acquisition cost minus subsoil. Leasehold mineral deposits are measured at a value of nil if the lease is entered into in the ordinary course of business. If the lease is acquired through a business combination, the acquisition cost of the deposit is measured at the fair value of the ore.
Costs incurred to determine the tonnage of ore present in the deposit are added to the acquisition cost. Overburden work, i.e., the process of removing the topsoil to gain access to the deposit, is considered a component of mineral reserve assets. The initial measurement of overburden work includes production cost and the discounted value of restoration obligations as a result of the deterioration caused by such work. Mineral reserves and overburden assets are included under the heading \u201cProperty, plant and equipment\u201d. Mining assets are subsequently measured at cost, minus accumulated depreciation and any impairment loss.
Depreciation
Depreciation expense is spread over the expected useful life of the different categories of property, plant and equipment using the straight- line method. The estimated useful lives of the most significant items of property, plant and equipment fall into the following ranges:
buildings: 10 to 50 years;
industrial constructions: 10 to 30 years;
fixtures and fittings of buildings and constructions: 5 to 23 years;
machinery, equipment and technical fittings: 5 to 20 years;
vehicles: 2 to 9 years; and
other property, plant and equipment: 10 to 20 years.
Land is not\u00a0depreciated.
Right-of-use assets held through leases are depreciated over the reasonably certain end date of the lease, unless the lessee is considering exercising their right to purchase the asset. In that case, the useful life of the asset leased is applied. Rights-of-use are depreciated or amortized on a straight-line basis, except, for Imerys, those applicable to bulk carriers, which are depreciated by the number of journeys made. Freehold and leasehold equipment is depreciated over its useful life, up to the end of the reasonably certain end date of the lease. Furthermore, Imerys does not consider the straight-line depreciation method appropriate to reflect the consumption of property, plant and equipment related to mining activities such as mineral reserves and overburden assets as well as certain industrial assets of discontinuous use.
Depreciation of mining assets is therefore estimated in units of production on the basis of actual extraction, while operational monitoring units such as production or operating hours are used to estimate depreciation of industrial assets.
A mineral reserve is depreciated to the quantity of the geological inventory of the deposit minus discounts for the geological uncertainty inherent to the resources. Overburden assets, a component of mineral reserve assets, are depreciated over the quantity of reserve to which they specifically give access. Subsoil, i.e.,\u00a0the area of land not part of the mineral deposit, is not depreciated since it is not consumed by mining operations.
Other equity investments
Other equity investments include investments in companies in which the group does not control nor exercise a significant influence, as defined above.
Other equity investments are either quoted or private assets or unquoted funds.
Quoted and private investments (SGS, Pernod Ricard, adidas, Umicore, Concentrix + Webhelp, Voodoo, etc.)
These investments are recorded at fair value based on their stock market price at each closing date for quoted investments and on the valuation methods used for private investments.
GBL has opted to account for changes in the fair value of quoted and private investments via equity (\u201cFinancial assets recognized at fair value through equity\u201d). These amounts will never be recycled in earnings, even in the event of the sale of securities or significant or prolonged loss of value. In the event of a sale, the accumulated revaluation reserves at the time of sale are reclassified to consolidated reserves.
Unquoted funds (Upfield, Sagard funds, Kartesia funds, Human capital funds, BDT Capital Partners II, Cepsa, etc.)
Investments in funds are revalued at each closing at their fair value, determined by the managers of these funds, according to their investment portfolio.
Based on the analysis of the characteristics of these unlisted funds, GBL determined that they were not eligible for the \u201cFair value through other comprehensive income\u201d option. Therefore, the changes in fair value are accounted for in profit or loss (\u201cFinancial assets recognized at fair value through profit or loss\u201d).
Non-current assets held for sale and discontinued operations
When, at the reporting date, it is highly likely that non-current assets or groups of directly related assets and liabilities will be disposed of, they are designated as non-current assets or groups of assets held for sale. Their sale is considered highly likely if, on the reporting date, a plan to put them up for sale at a reasonable price in relation to their fair value has been organized in order to find a buyer and finalize their transfer within one year at most. Non-current assets or groups of assets held for sale are presented as separate assets and liabilities in the consolidated balance sheet, separately from the rest of the continuing operations, at the balance sheet date and without comparative information provided for prior periods. They are no longer depreciated at the date of designation as non-current assets or disposal groups and are valued at the lower of carrying amount or fair value less costs to sell.
Non-current assets or groups of assets that will be shut down and not sold constitute non-current assets that are to be abandoned. When non-current assets or groups of assets held for sale or to be disposed of are allocated to a separate line item for the main operation and are to be abandoned as part of a single coordinated plan, they are categorized as discontinued operations and their related flows are disclosed separately in the income statement and statement of cash flows, as of the balance sheet date and in the comparative information provided for prior periods. As non-current assets or groups of assets held for sale are controlled until their disposal date, intra-group transactions between them and the rest of the continuing operations are eliminated in the balance sheet and in the income statement, with the exception of transactions within the income statement that the discontinued operations will continue after the date of loss of control with the continuing operations. This presentation, which has no impact on the amount of consolidated net income, enables users of the financial statements to assess the impact of discontinued operations on the remaining continuing operations.
Inventories
Inventories are recorded as assets at the date on which the risks, rewards and control are transferred to the group. At the time of sale, their disposal is accounted for through an expense at the same date as the corresponding gain. Inventories are valued at the lower of production cost or net realizable value. When production is less than normal capacity, fixed costs specifically exclude the share corresponding to the sub- activity. Inventories presenting similar characteristics are valued under the same method. The methods used in the group are FIFO \u2013 First-In, First-Out \u2013 and the weighted average unit cost. When production cost cannot be recovered, it is lowered to net realization value under the conditions existing at the reporting\u00a0date.
Trade receivables
Trade receivables are initially recognized at their transaction price, when those do not contain an important financing component (determined in accordance with IFRS 15 Revenue from Contractswith Customers). The transaction price is the amount of consideration that the group expects to receive in exchange for the goods or services transferred.
Subsequent to their initial recognition, trade receivables are valued at amortized cost, i.e., at fair value plus, where applicable, directly attributable transaction costs, increased or decreased, of accumulated amortization of any difference between this initial amount and the amount at maturity, and less any write-down for impairment or non- recoverability. At the end of the reporting period, a write-down is recognized for the value of expected credit losses. Such losses correspond to the estimated weighted probability of credit losses, i.e.,\u00a0the expected loss of cash over the life of the trade receivable, minus cash to be received from credit insurance where applicable.
A\u00a0receivable sold to a banking institution for financing purposes is only derecognized if the factoring agreement also transfers to the factor all the risks and rewards incidental to the receivable.
Other financial assets
The other financial assets are classified in one of the following two categories:
Amortized cost. Financial assets are measured at amortized cost when the objective of the business model is to collect the contractual cash flows. These correspond mainly to cash and cash equivalents, as well as, to a lesser extent, to receivables related to dividends to be received. Cash and cash equivalents include bank deposits and fixed-term investments with a maturity date equal to or less than three months from the acquisition date. These are highly liquid investments indexed on a money market rate and the value of which is known or subject to very little uncertainty.
Fair value through profit or loss. Financial assets are measured at fair value through profit or loss when the objective of the business model is to both collect the contractual cash flows and make a trading profit in the short term. They are non-derivative financial assets held for trading and recognized as assets between the dates of purchase and disposal, and whose changes in fair value are recognized in other financial income and expenses (investing or operating activities) at market prices published at the closing date. This category also includes trading assets as well as derivative instruments other than hedge accounting.
Finally, the group derecognizes a financial asset only if the contractual rights to the cash flows of the asset expire, or if the financial asset and the associated risks and benefits are transferred to third parties. If the group does not transfer or retain substantially all the risks and rewards of ownership and continues to control the transferred asset, the group then recognizes retained interests in that asset and an associated liability for amounts that it may have to pay. If the group retains substantially all the risks and rewards of owning a transferred financial asset, the group continues to recognize the financial asset and also recognizes a debt backed by the proceeds received.
Impairment of assets
Other equity investments
Other equity investments are not subject to impairment tests since any decrease in fair value, even significant or prolonged, is still recognized in equity for financial assets recognized at fair value through equity or, directly in profit or loss for financial assets recognized at fair value through profit or loss.
Investments in equity-accounted entities
When there is an objective indication of impairment of an investment accounted for using the equity method, an impairment test must be carried out, in accordance with IAS 36 Impairment of assetsand IAS\u00a028 Investments in Associates and Joint Ventures. The recoverable amount of the asset is estimated in order to compare it to its carrying amount and, where applicable, to recognize an impairment loss for the surplus. The recoverable amount is the highest of either the fair value less costs to sell or the value in use. The value in use corresponds\u00a0to the future estimated discounted cash flows. When an impairment accounted for in an earlier period ceases to exist, the carrying amount is partially or totally restored. The reversal of an impairment loss is recorded immediately in profit.
Property, plant and equipment and intangible assets
At every reporting date, the group reviews the carrying amount of intangible assets and property, plant and equipment with finite useful life in order to assess whether there is any evidence of impairment of these assets.
If there is any evidence of impairment, the asset\u2019s recoverable amount is estimated to compare it with its carrying amount. The recoverable amount is the higher of the asset\u2019s net sale price or its value in use. The value in use is the present value of estimated future cash flows from the continuous use of an asset. Where it is not possible to estimate the recoverable amount of an asset individually, the group estimates the recoverable amount of the CGU to which the asset belongs. If the recoverable amount of the asset or of the CGU is estimated to be less than the carrying amount, the carrying value of the asset or of the CGU is lowered to its recoverable amount. An impairment loss is immediately recognized in expenses.
When an impairment recorded during past financial years is no longer justified, the impairment loss on this asset or CGU is reversed in order to bring the asset or CGU back to a value corresponding to the new valuation of its recoverable amount.
However, the carrying value of an asset or CGU may not exceed, following reversal of an impairment loss, the carrying value it would have had if no impairment had been recognized for the asset or CGU in previous years. The reversal of an impairment loss is recognized immediately as income.
Trade receivables and other financial assets
IFRS 9 Financial Instrumentsrequires the application of a model based on anticipated losses on trade receivables and other financial assets. In particular, IFRS 9 requires, among other things, that the group recognizes an impairment loss on trade receivables and other financial assets as of the initial recognition date thereof.
The assessment of expected credit losses is made on an individual or collective basis taking into account historical data on late payments, information on current circumstances, as well as forward-looking information.
Taxes
Income taxes of the financial year include both current and deferred taxes. They are recorded in the income statement unless they relate to items directly recorded in shareholders\u2019 equity, in which case they are also recorded in shareholders\u2019 equity.
Current taxes are the taxes to be paid on the taxable profit for the financial year and are calculated in accordance with the tax rates in effect or that will be in effect on the last day of the financial year, plus any adjustments relating to prior years.
Deferred taxes are calculated in accordance with the liability method, which is applied to the temporary differences between the carrying amount and tax basis of the assets and liabilities recorded in the balance sheet.
The following tax differences are disregarded: non tax-deductible goodwill and initial valuations of assets and liabilities not affecting the accounting and taxable profit.
Deferred taxes are calculated according to the manner in which the related assets and liabilities are expected to be realized or settled, based on the tax rates in effect or that will be in effect on the last day of the financial year.
Additionally, deferred tax liabilities related to investments in subsidiaries are not recorded when the group is able to control the date on which the temporary difference will reverse and when the group does not expect the temporary difference to reverse in the foreseeable future.
Deferred tax assets are recorded if the taxable profits are likely to materialize in such a manner as to allow them to be offset against tax losses and tax credits.
Finally, deferred tax assets and liabilities are offset by tax entity when the latter has the right to offset its current tax assets and liabilities and that the deferred tax assets and liabilities in question are levied by the same tax authority.
Treasury shares
When treasury shares are bought (or sold), the amount paid (or received) is recorded as a decrease (or increase) in shareholders\u2019 equity.Movements in these shares are shown in the consolidated statement of changes in shareholders\u2019 equity. No profits or losses on these movements are recorded in the income statement.
Appropriation of profit
Dividends paid by GBL to its shareholders are included as a reduction of shareholders\u2019 equity for their gross amount, i.e., before withholding tax. The financial statements are prepared before appropriation of\u00a0profit.
Incentive plans
Equity-settled share-based plans
GBL and Imerys stock options granted prior to November 7, 2002 have not been recorded in the consolidated financial statements in accordance with the transitional provisions of IFRS 2 Share-based Payment.
Incentive plans granted as from November 7, 2002 are accounted for in accordance with IFRS 2. In accordance with this standard, the fair value of the options on the date of allocation is recorded in the income statement for the period of acquisition of the rights (\u201cvesting period\u201d). The options are valued by means of a valuation model generally accepted based on the market conditions prevailing at the time of their grant.
Cash-settled share-based plans
If the arrangement is settled in cash, the group incurs a liability measured at fair value. Until the settlement of the liability, the fair value should be measured at each reporting date and at settlement date. The changes in fair value are recognized in the income statement of the period.
Retirement benefits and other post- employment benefits
Defined benefit plans
Commitments for defined benefit pension plans and similar obligations are valued using the projected credit unit method, in accordance with IAS 19 Employee Benefits. This valuation uses financial and demographic actuarial assumptions. These are used to value services rendered during the year on the basis of an estimate of the end-of-career salary.
The provisions or assets recognized correspond to the present value of the obligation less the fair value of the plan\u2019s assets, which may be capped. The discount rates used to discount the obligations and calculate the resulting normative return on the assets are determined by referring to the yields of bonds issued by AA (high quality) rated companies within the main iBoxx GBP and USD Corporate AA indexes. Where negative interest rates arise, they are applied as published, without a floor at zero.
Contributions to funds and direct payments to beneficiaries as well as contributions and payments related to restructuring are recorded under \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d. Contributions to closed deficit plans with compulsory funding are recorded under \u201cFinancial income (expenses) from operating activities\u201d. The effect of these contributions in income statement is neutralized by reversals of provisions recognized in each of the mentioned above. Other elements of the change in post- employment benefit plans are recorded in \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d, with the exception of the accretion of obligations and normative return on assets that are recognized under \u201cFinancial income (expenses) from investing activities\u201d or \u201cFinancial income (expenses) from operating activities\u201d.
Administrative costs are recorded in \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d, except for the administrative expenses of the closed deficit plans with compulsory funding that are recorded under \u201cOther financial income (expenses) from operational activities\u201d.
Plan amendments, reductions and liquidations are immediately recognized in profit or loss. Actuarial differences and caps relating to post-employment benefit plan assets are fully recognized in other comprehensive income, net of asset management fees, without reclassification to profit or loss in a subsequent period.
Defined contribution plans
The group participates, in accordance with the regulations and corporate practices of each country, in the creation of retirement reserves for its staff, paying contributions on a mandatory or voluntary basis to external bodies such as pension funds, insurance companies or financial institutions.
These plans are defined contribution plans, in other words they do not guarantee the level of benefits paid. These contributions are recorded under \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d.
Provisions
Provisions are recorded at the reporting date when a group entity has an actual (legal or implicit) obligation resulting from a past event, when it is probable that an amount will have to be paid out to settle this obligation, and if the amount of the obligation can be determined reliably.
The amount recorded as a provision should be the most accurate estimation of the expenditure required to meet the obligation existing at the reporting date.
Provisions are recognized in profit or loss, apart from provisions for decommissioning and some provisions for rehabilitation, whose counterpart is included in the cost of assets whose construction has created the obligation. This treatment applies in particular to some of Imerys\u2019 industrial installations and overburden mineral assets.
Provisions whose settlement is expected within twelve months after the reporting date or whose settlement may occur at any time are not discounted. Provisions whose settlement is expected more than twelve months after the reporting date are discounted.
Changes in discounted provisions resulting from a revision of the amount of the obligation, its calendar or its discount rate are recognized in profit or loss, or for provisions recognized against assets, as an adjustment of the cost of the assets. The discounting is recognized as a debit in financial income (expenses).
Provisions for restructuring costs are not recorded unless the group has approved a detailed and formal restructuring plan and if the restructuring has either begun or been publicly announced. Costs relating to the group\u2019s continuing operations are not taken into account.
Current and non-current liabilities
Non-current liabilities (bank loans and bonds) and current liabilities (bank deposits) are initially recognized in the accounting records at their fair value less, in the case of a financial liability that has not been recorded at fair value through the income statement, the transaction costs that are directly imputed to the issuance of the financial liability.
After initial recording, they are valued at their amortized cost (initial amount less repayments of principal plus or minus the accumulated amortization of any difference between the initial amount and the value at maturity).
The exchangeable or convertible bonds issued by the group are considered as hybrid instruments, i.e., containing both a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds. The difference between the proceeds of issuance of the exchangeable or convertible bond and the fair value assigned to the bond component, representing the value of embedded option to exchange the bonds for shares, is included separately, depending on the option\u2019s maturity, in the heading \u201cOther current liabilities\u201d or \u201cOther non-current liabilities\u201d. The interest cost of the bond component is calculated by applying the prevailing interest market rate at the issuance date.
Transaction costs related to the issue of convertible or exchangeable bonds are allocated to the \u201cliability\u201d and \u201cderivative\u201d components in proportion to the allocation of gross proceeds.
Transaction costs related to the \u201cderivative\u201d component are recognized directly in profit or loss. Transaction costs related to the \u201cliability\u201d component are included in the carrying amount of the \u201cliability\u201d component and are amortized over the life of the convertible or exchangeable bonds using the effective interest rate method.
Trade payables and other financial non-derivative liabilities are measured at amortized cost.
The group derecognizes a financial liability if, and only if, its obligations are discharged, canceled or expired. The difference between the carrying amount of the derecognized financial liability and the consideration paid and payable is recognized in profit or loss. When the group exchanges a debt instrument with an existing lender for another instrument with substantially different terms, the exchange is recognized as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, if the contractual terms of an existing liability are substantially changed, the group also recognizes an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the contractual terms of the financial liability are substantially different if the present value of the cash flows under the new conditions, including any fees paid, net of fees collected and discounted at the original effective rate, is at least 10% different from the present value of the remaining cash flows of the original financial liability.
Derivative financial instruments
The group\u2019s consolidated operating companies use derivatives to reduce their exposure to various risks, in particular foreign exchange, interest rate and energy price risks. The sole purpose of these instruments is to hedge the economic risks to which they are exposed. Financial instruments are recognized at the transaction date, i.e., the date the hedge accounting contract is entered into. However, only those that fulfil the hedge accounting criteria laid down in IFRS 9 are given the accounting treatments described hereafter.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are immediately recognized in profit or loss.
Any transaction qualified as hedge accounting is documented by reference to the hedging strategy by identifying the hedged risk, the hedged item, the hedging instrument, the hedging relationship and the measurement method of the hedge relationship effectiveness.\u00a0The measurement of the hedge relationship effectiveness is updated at every reporting date.
Derivatives are measured at fair value on initial recognition. Fair value is subsequently remeasured at every reporting date by reference to market conditions and to IFRS 13 Fair Value Measurement.
Derivatives recorded as assets or liabilities are classified in the headings \u201cOther non-current assets/liabilities\u201d and \u201cOther current assets/ liabilities\u201d depending on their maturity date. The recognition of hedging derivatives varies depending on whether they are designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations.
GBL also uses derivative instruments. It can carry out transactions using call or put options. These transactions are implemented with reference to thorough documentation and are subject to specific and appropriate prior analysis and systematic monitoring.
Consolidated operating companies use different types of derivative financial instruments in various hedging strategies, as described below.
Fair value hedge
When changes in fair value of a recognized asset or liability or an unrecognized firm commitment may affect income, these changes may be covered by a fair value hedge. The hedged item and the hedging instrument are remeasured symmetrically in profit or loss at every reporting date. The impact in profit or loss is limited to the ineffective portion of the hedge.
Cash flow hedge
A cash flow hedge is used to cover unfavorable cash flow changes related to a recognized asset or liability or a highly likely future transaction when such changes are likely to affect profit or loss. At every reporting date, the effective share of the hedge and, if applicable, the changes in the time value of the options and futures points of the futures contracts, are recognized in shareholders\u2019 equity. The ineffective portion is recognized in profit or loss. When the transaction is recognized, items previously recognized in shareholders\u2019 equity are reclassified to profit or loss simultaneously with the recognition of the hedged item. In the event of a disqualification of a derivative, i.e., the interruption of hedge accounting, the effective portion of the hedge previously recognized in shareholders\u2019 equity is amortized to operating or financial result, depending on the nature of the hedged item.
Hedge of net investments in foreign operations
Foreign currency translation adjustments generated by net assets held by the group\u2019s consolidated operating companies in foreign currencies can be hedged. At every reporting date, the effective share of the hedge is recognized in shareholders\u2019 equity and the ineffective portion in profit or loss.
The effective portion in shareholders\u2019 equity is only reclassified as profit or loss in the case of loss of control over a consolidated activity or reduction of an interest in an activity under significant influence.
Items denominated in foreign currencies
Monetary assets and liabilities denominated in foreign currencies in the accounting records of group companies are translated into euros using the exchange rates of the last day of the financial year. Unrealized differences on translation resulting from the application of this methodology are recorded as gains or losses of the financial year. Non- monetary assets and liabilities are recorded using the exchange rates applicable on the date of the transaction.
In the consolidated financial statements, the group\u2019s assets and liabilities related to activities held abroad are converted at the closing rate.
Items of income and expenses denominated in foreign currencies are converted into euros at the average exchange rate for the year. Foreign currency translation adjustments reflecting the difference between the average rate and the rate on the last day of the year, are recognized in shareholders\u2019 equity under \u201cForeign currency translation adjustments\u201d. These foreign currency translation adjustments are recorded in profit or loss when the group disposes of the entity concerned.
Revenue
For Imerys, revenue is made up of two elements: on the one hand, the sale of goods and on the other hand, the services rendered mainly made out of the reinvoicing to customers of the cost of shipping goods and\u00a0industrial services provided. The contractual commitments made by the group to transfer these goods and services to its customers are categorized as performance obligations. When control of goods or services is transferred to customers, the performance obligation is deemed to have been satisfied and the revenue is recognized. Goods are therefore transferred to customers at a given point in time, which coincides with the transfer of all the risks and rewards defined in the contractual incoterms. The contract includes multiple incoterms due to the specificities as defined in contracts. However, while certain services, such as molding work, are rendered at a given point in time, most of the other services are transferred to customers over time, notably in the case of shipping services, for which the revenue is recognized after the delivery has been made, and certain specialized services in the
construction of industrial facilities or services aimed at intervening in the management of the customer process and whose degree of completion is measured based on the actual level of production costs committed or based on the time spent. Collateral requirements on the sale of goods and rendering of services offer customers guarantees about the specifications agreed in the contracts, rather than an additional service on top of these guarantees. Consequently, guarantees are not recognized as performance obligations but as provisions. Sale of goods and rendering of services are measured at the amount of the transaction, minus trade and volume rebates, as well as discounts for early payment.
For Canyon, sales are generated by the following revenue streams: B2C e-commerce, B2B e-commerce, workshops and services. Canyon grants its customers a 30-day right of return. A return rate is determined on the basis of historical data. This rate is used to establish a provision in the balance sheet for expected returns and is deducted from revenues.
For Sanoptis, revenues are generated by two main surgical treatments. One is cataract surgery, in which the opacified lens is replaced by an artificial lens, and the other is age-related macular degeneration surgery, in which multiple injections are made into the patient\u2019s eyeball. In the case of these medical treatments, billing takes place via statutory or private health insurance funds. The two billing processes are considered separately for recording and evaluating sales revenue.Sales generated are recorded daily, based on completed treatments in the patient software, and revenues are recorded at least monthly in the income statement. The starting point is the number of treatments performed during the month and the number of treatments. An operation is billed when all the operation forms and documents are available.Statutory health insurance funds are invoiced on a quarterly basis. Payment is made up to five months later, and may include deductibles on the amount invoiced. These deductions are estimated in advance as part of the revenue recognition process. The final payment is compared with the estimated amounts, and any difference is recorded as an adjustment. For private health insurance patients, classical services are billed as soon as possible, and are therefore recorded on the basis of the amounts actually billed.
For Affidea, income comes mainly from the reimbursement value of healthcare services, examinations and treatments carried out. The main sources of revenue are diagnostic imaging, cancer treatment and laboratory analyses. Revenues are recognized in the year in which the examinations and treatments take place, to the extent that it is highly probable that a significant reversal of the amount of accumulated revenues recognized will not occur.
Sale of goods and rendering of services are measured at the fair value of the transaction, minus trade and volume rebates, as well as discounts for early payment.
Interest
Interest income (expenses) include interest to be paid on loans and interest to be received on investments. Interest income received or interest charges paid are recorded prorata temporis in the consolidated statement of comprehensive income, taking into account the effective interest rate on the investment.
Dividends
Dividends relating to other equity investments or trading securities are booked in profit or loss on the date on which their distribution is decided upon, unless these dividends clearly represent the recovery of a portion of the cost of the investment. The amount of withholding tax is recorded as a deduction of gross dividends.
Changes in accounting policies and errors
A change in the accounting policies is only applied to meet the requirements of a standard or an interpretation, or if it gives more reliable and more relevant information. Changes in accounting policies are recognized retrospectively, except when specific transitional provisions are stated in a standard or an interpretation. When an error is detected, it is also retrospectively adjusted. No errors were corrected in 2023 or 2022.
Climate and sustainable development
The main climate issues concern Imerys. They are not addressed in a dedicated note but in each of the sections concerned.
Main estimates and judgments
During the preparation of the financial statements, the group makes a number of estimates and judgments relating to the recognition and measurement of its assets and liabilities. These assessments are intended to address the uncertain nature of the risks and opportunities to which the group\u2019s activities are exposed to. Among these, the risks and opportunities related to climate change, which may mainly impact Imerys\u2019 activities, are given particular attention. The group has decided to further integrate climate change and sustainable development issues into its strategy in order to reduce risks and create new opportunities for sustainable value creation. We refer to the ESG section. In this context, risks and opportunities are assessed in terms of market developments, physical risks and changes in the energy mix.
Uncertainties inherent to the business require estimates to be made when preparing the financial statements. These estimates result from judgements aiming at providing a true and fair view based upon available and reliable information. An estimate is revised to reflect changes in circumstances, new information available and effects linked to experience. Changes in estimates are accounted for on a prospective basis.
When such estimates are established, they are explained in the notes on the items to which they relate.
The main estimates are the following:
the valuation of the assets and liabilities of an acquired business (section \u201cScope of consolidation, associates and changes in group structure\u201d);
the principal assumptions related to goodwill impairment testing (Note 10), intangible assets (Note 9) and property, plant and equipment (Note 11), such as the duration, the amount of future cash flows as well as the discount rate and perpetual growth involved in computing the value in use of the tested assets. In particular, GBL has included in its estimates the uncertainties related to the risks and opportunities associated with climate change;
the valuation of unlisted assets or funds;
an estimate of the useful life of intangible assets with limited life (Note 9) and property, plant and equipment (Note 11);
estimates of indicators related to the climate and sustainable development that may create obligations for the group if they are not abided by, in particular estimates at Imerys:
the amount of greenhouse gas emissions generated by its industrial facilities and the need to purchase emission rights so as to assess the provisions covering any potential deficits (Note\u00a09);
the fulfilment of the sustainable development goals that Imerys must pursue and are indexed to Sustainability-Linked Bonds (Note\u00a017.2).
For Imerys, valuation methods to assess the acquisition cost of mining assets; in particular Imerys integrates the risks and opportunities related to climate change in the business plans used to draw up the geological inventory of mineral deposits, which is used as a base from which to calculate the acquisition cost (Note\u00a011);
estimate of reasonably certain lease terms of certain leases (Note\u00a011);
the estimation of inflation levels incorporated in the valuation of certain future cash flows, notably in the context of impairment tests (note 10), the valuation of other provisions (Note 20) and the valuation of defined benefit plans (Note 21);
the assessment, as part of the recognition and measurement of provisions, of the probability of settlement and amount of the obligation, of the expected timing of future payments and of discount rates (Note 20);
actuarial assumptions for defined benefit plans (Note 21); and
the assumptions related to the evaluation of debts on minority interests (Note 22).
Ontex, SGS, Umicore and Voodoo
GBL analyzed the accounting treatment to be applied to the investments in Ontex, SGS, Umicore and Voodoo and particularly the classification in (i) investments in associates (IAS 28), with the recognition of GBL\u2019s share in the profit or loss and shareholders\u2019 equity of Ontex, SGS, Umicore and Voodoo respectively or in (ii) other equity investments (IFRS 9), with the recognition of these investments at their fair value and the recognition of the dividend through profit or loss.
In accordance with IAS 28, it is assumed that a group does not exercise significant influence if the percentage holding is less than 20.00%, unless it can be clearly demonstrated. According to this standard, significant influence is usually demonstrated in the case of (i) representation on the Board of Directors, (ii) participation in policy-making processes, (iii) material transactions between the investor and the company owned, (iv) the interchange of managerial personnel or (v) the supply of critical technical information.
As of December\u00a031, 2023, those four investments are held respectively at 19.98%, 19.31%, 15.92% and 15.90%. The representation on the Board of Directors of those companies is not sufficient to demonstrate the existence of significant influence. Moreover, representation on the Board of Directors is limited to the mandates of the Directors and requires a resolution at General Shareholders\u2019 Meeting. In particular for listed companies, this representation does not come from a contractual or legal right. Taking these different factors into account, GBL has entered into the accounting treatment of its investments in Ontex, SGS, Umicore and Voodoo as other equity investments as of December\u00a031,\u00a02023.
Exchange rates used
2023 | 2022 | |
Closing rate | ||
US Dollar | 1.11 | 1.07 |
Swiss franc | 0.93 | 0.98 |
Average rate | ||
US Dollar | 1.08 | 1.05 |
Presentation of the consolidated financial statements
The consolidated income statement separately presents:
-\tInvesting activities
Components of income resulting from investing activities, which include the operations of GBL and of its subsidiaries whose main purpose is investment management. This includes GBL\u00a0Capital and Sienna Investment Managers as well as the profit (loss) of operating associates (Parques\u00a0Reunidos/Piolin II) and non-consolidated operating companies (Pernod\u00a0Ricard, SGS, adidas, Umicore, etc.); and
-\tConsolidated operating activities
Components of income from consolidated operating activities, i.e.,\u00a0from consolidated operating companies (Imerys, Webhelp, Canyon, Sanoptis, Affidea as well as the sub-groups Sausalitos, Vanreusel, etc).
7.1.7\tScope of consolidation, associates and joint ventures and changes in group structure
Fully consolidated subsidiaries
Interest and voting rights (in %) | Main activity | |||
NAME | Registered office | 2023 | 2022 | |
Brussels Securities SA | Brussels | 100.0 | 100.0 | Holding |
GBL O SA | Brussels | 100.0 | 100.0 | Holding |
Sagerpar SA | Brussels | 100.0 | 100.0 | Holding |
URDAC SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR II SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR III SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR IV SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR V SRL | Brussels | 100.0 | 100.0 | Holding |
FINPAR VI SRL | Brussels | 100.0 | 100.0 | Holding |
FINPAR VII SRL | Brussels | 100.0 | 100.0 | Holding |
Finpar VIII SRL | Brussels | 100.0 | 100.0 | Holding |
Finpar IX SRL | Brussels | 100.0 | - | Holding |
LTI Two SA | Brussels | 100.0 | 100.0 | Holding |
Tr\u00f4ne24 SRL | Brussels | 100.0 | - | Holding |
GBL Verwaltung SA | Luxembourg | 100.0 | 100.0 | Holding |
Belgian Securities S\u00e0rl (previously Belgian Securities BV) | ||||
Luxembourg (previously Amsterdam) | 100.0 | 100.0 | Holding | |
Sapiens S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Marnix Lux S\u00e0rl (group Webhelp and subsidiaries) | Luxembourg | - | 61.3 | Operational |
G.f.G. Topco S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
G.f.G. Capital S\u00e0rl | Luxembourg | 90.5 | 90.5 | Holding |
GoforGold Holding GmbH (group Canyon and subsidiaries) | Koblenz | 55.2 | 54.8 | Operational |
Celeste Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Celeste InvestCo SA | Luxembourg | 100.0 | 100.0 | Holding |
Celeste TopCo SA | Luxembourg | 99.0 | 99.5 | Holding |
Celeste Midco 1 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste Midco 2 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste Midco 3 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste BidCo BV (group Affidea and subsidiaries) | Netherlands | 100.0 | 100.0 | Operational |
Celeste GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia InvestCo SA | Luxembourg | 99.7 | 99.7 | Holding |
Sofia MasterCo SA | Luxembourg | 83.6 | 84.1 | Holding |
Sofia TopCo S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia Holdco S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia MidCo S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia BidCo S\u00e0rl (group Sanoptis and subsidiaries) (newly Sanoptis\u00a0S\u00e0rl) | Luxembourg | 100.0 | 100.0 | Operational |
One24 Capital SCA | Luxembourg | 100.0 | - | Holding |
Arthur Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Energy S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Serena S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Finance S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Eliott Capital S\u00e0rl | Luxembourg | - | 100.0 | Holding |
Miles Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Owen Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Theo Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Oliver Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Jade Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Vancouver Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Investments Ltd | Dublin | 100.0 | 100.0 | Holding |
GBL Development Ltd | London | 100.0 | 100.0 | Operational |
GBL Advisors Ltd | London | 100.0 | 100.0 | Operational |
RCPE Consulting SAS | Paris | 100.0 | 100.0 | Operational |
GBL Advisors DE GmbH | Munich | 100.0 | - | Operational |
Interest and voting rights (in %) | Main activity | |||
NAME | Registered office | 2023 | 2022 | |
Imerys SA (and subsidiaries) | Paris | 54.6 | 54.6 | Operational |
GBL Capital Participations S\u00e0rl | Luxembourg | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Investment Managers SA (newly Sienna Investment Managers\u00a0Luxembourg\u00a0SA) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Euclide SA | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Euclide GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Euclide SCA SICAV-RAIF | Luxembourg | 84.7 | - | GBL Capital and SIM |
Sienna Landlife SA | Luxembourg | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Landlife GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Landlife SCA SICAV-RAIF | Luxembourg | 84.4 | - | GBL Capital and SIM |
Sienna AM Luxembourg SA | Wilmington | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Capital US LLC | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital Invest GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital Invest SCSp | London | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital UK (previously Sienna Capital London Ltd) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Fund SCSp | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Carry SCSp | Luxembourg | - | 100,0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Master S\u00e0rl | Luxembourg | - | 100.0 | GBL Capital and SIM |
Sienna Capital Co-Invest Master S\u00e0rl (newly GBL Capital Coinvest Master S\u00e0rl) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna PE Invest GP S\u00e0rl | Luxembourg | - | 100.0 | GBL Capital and SIM |
Sienna Venture Capital GP S\u00e0rl | Luxembourg | 70.0 | 100.0 | GBL Capital and SIM |
Sienna Venture Capital SAS | Paris | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Venture Capital SCA SICAV-RAIF | Luxembourg | 100.0 | - | GBL Capital and SIM |
Sienna Real Estate Solutions S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Real Estate Partner JV Netherlands BV (group Sienna Real Estate and subsidiaries) | Amsterdam | 89.4 | 89.4 | GBL Capital and SIM |
Sienna Gestion (group Sienna Gestion and subsidiaries) | Paris | 66.6 | 66.6 | GBL Capital and SIM |
Sienna 2A SAS (group Sienna Private Credit and subsidiaries) | Paris | 87.5 | 87.5 | GBL Capital and SIM |
Sienna Private Equity SAS | Paris | 75.0 | 75.0 | GBL Capital and SIM |
Sienna Private Equity GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Private Equity Fund I SCA SICAV-RAIF | Luxembourg | 100.0 | - | GBL Capital and SIM |
Sienna SID III GP S\u00e0rl | Luxembourg | 100.0 | - | GBL Capital and SIM |
Apheon MidCap Buyout III SA (previously Ergon Capital Partners III SA) (group AMB III and subsidiaries) | Brussels | 89.9 | 89.9 | GBL Capital and SIM |
The percentage of voting rights is identical to the percentage interest, with the exception of Imerys, for which the voting rights are 68.11% and of the Sanoptis group, for which the voting rights are 61.96%. An incentive plan has also been granted to the management of Apheon MidCap Buyout\u00a0III, covering 16.67% of the shares.
Associates and joint ventures
RATE (IN %) | ||||||||
Avanti Acquisition SCSP | StreetTeam Software Ltd | Piolin II S\u00e0rl /Parques Reunidos | Backed 1 LP | Backed Encore 1 LP | Backed 2 LP | Apheon MidCap Buyout SA (previously Ergon Capital Partners SA) | ||
Office | Luxembourg | London | Luxembourg | Jersey | Jersey | Jersey | Brussels | |
Activity | GBL Capital and SIM | GBL Capital and SIM | Leisure parks | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | |
2023 | DETENTION RATE | - | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
2022 | Detention rate | 50.0 | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
RATE (IN %) | Apheon MidCap Buyout II SA (previously Ergon Capital Partners II SA) | Apheon MidCap Buyout IV SCSP (previously Ergon Capital Partners IV SCSp) | I.P.E. SRL, subsidiary of AMB III (previously ECP III) | M\u00e9rieux Participations 2 SAS | Landlife Holding S\u00e0rl | |||
Office | Brussels | Luxembourg | Bologna | Lyon | Luxembourg | |||
Activity | GBL Capital and SIM | GBL Capital and SIM | Home furnishing | GBL Capital and SIM | GBL Capital and SIM | |||
2023 | DETENTION RATE | 50.0 | 34.4 | 65.6 | 34.3 | 30.7 | ||
2022 | Detention rate | 50.0 | 34.4 | 65.6 | 34.3 | 35.1 |
The percentage of voting rights is identical to the percentage interest.
The group has analyzed the accounting treatment to be applied to the recognition of its investment in I.P.E. SRL (Visionnaire group) and has concluded that it only has a significant influence despite its 65.55% interest, based on the existence of a shareholders\u2019 agreement. The group reached the same conclusion regarding the consolidation method to be used to integrate the investments in Backed Encore 1 LP.
As of December\u00a031, 2023, GBL holds a stake in the funds Eight Partners Worldwide SAS (22.01%), Kartesia Credit Opportunities III SCA (31.15%), Sagard II B (74.65%), Sagard 3 FPCI (26.93%), Sagard Sant\u00e9 Animale FPCI (32.41%), Sagard Testing FPCI (63.72%), Sagard Business Intelligence FPCI (92.59%), Sagard NewGen Pharma FPCI (32.31%), Marcho Partners Feeder Fund ICAV (39.10%), C2 Capital Global Export-to-China Fund LP (26.96%), KKR Sigma Co-Invest II LP (32.30%), Sienna Levier ENR (100.00%), Sienna Rendement Avenir IV (25.11%), HCM IV LP/HCM V LP/HCM S11A LP/HCM S3C LP (20.27%, 28.55%, 56.26% and 49.26% respectively) and has determined that it has no significant influence over those investments. These funds are therefore presented as other equity investments and are measured at fair value at each reporting date.
In the rest of the notes, Apheon MidCap Buyout, Apheon MidCap Buyout II and Apheon MidCap Buyout IV have been referred to together under the\u00a0name \u201cAMB I, II & IV\u201d, while the name \u201cAMB\u201d refers to these companies referred to above and Apheon MidCap Buyout III (\u201cAMB III\u201d). Similarly, Backed\u00a01 LP, Backed Encore 1 LP and Backed 2 LP entities will be referred to as \u201cBacked\u201d, the entity Piolin II S\u00e0rl as \u201cPiolin II\u201d, the entity StreetTeam\u00a0Software Ltd. as \u201cStreetTeam\u201d and the entity Avanti Acquisition SCSP as \u201cAvanti Acquisition Corp.\u201d
Changes in group structure
Companies entering the group structure
Sanoptis
Project ROM- In the second quarter of 2023, Skylight Beteiligungs AG acquired a majority stake in TAZZ AG, Ambulante Augenchirurgie Zurich AG, Augenpraxis Gambon AG and Fleischhauer Ophthalmology AG, Swiss companies active in the ophthalmology sector. The total purchase price amounted to EUR\u00a077\u00a0million, comprising a cash payment of EUR\u00a045\u00a0million, put options on minority interests of EUR\u00a013\u00a0million and a share exchange of EUR\u00a019\u00a0million at the time of acquisition. The provisional goodwill generated by the acquisition amounts to EUR\u00a065\u00a0million. This\u00a0acquisition contributed EUR\u00a02\u00a0million (group share) to net income for the period.
Project MILANO- In the third quarter of 2023, Sanoptis AG acquired majority stakes in Augenarztpraxis Dr. Heinemann AG, Augencentrum Zytglogge AG, Tagesklinik im Eichgut AG and Augenarztpraxis Dr. H\u00fcrzeler, as well as minority stakes in Augenarztpraxis Dr. Eugster AG and Augenzentrum Winterthur AG, Swiss companies active in the ophthalmology sector. The total purchase price amounted to EUR\u00a087\u00a0million, comprising a cash settlement of EUR\u00a066\u00a0million, put options on minority interests of EUR\u00a05\u00a0million and a debt transfer of EUR\u00a016\u00a0million at the time of acquisition. Provisional goodwill and investments in associates generated by the acquisition amounted to EUR\u00a051\u00a0million and EUR\u00a08\u00a0million respectively. This acquisition contributed EUR\u00a01\u00a0million (group share) to net income for the year.
The fair values of the assets, liabilities and contingent liabilities of these two acquisitions are presented in the following table:
In EUR\u00a0million | Project ROM | Project MILANO | Total |
Non-current assets | 17.3 | 30.5 | 47.7 |
Current assets | 7.4 | 8.3 | 15.7 |
Non-current liabilities | 7.6 | 6.2 | 13.8 |
Current liabilities | 4.5 | 3.7 | 8.2 |
Acquired net assets | 12.6 | 28.8 | 41.4 |
Purchase price - paid in cash | 45.4 | 66.2 | 111.6 |
Purchase price - put options on minority interests | 12.6 | 5.1 | 17.7 |
Purchase price - share exchange | 19.4 | - | 19.4 |
Purchase price - debt transfer | - | 16.0 | 16.0 |
Total | 77.4 | 87.3 | 164.7 |
Goodwill | 64.8 | 50.7 | 115.5 |
Investments in associates | - | 7.8 | 7.8 |
Acquired cash and cash equivalents | 5.2 | 3.1 | 8.3 |
Net cash flow | 40.2 | 63.1 | 103.3 |
Other
Finally, the group also made other acquisitions in 2023 that were not individually significant. Those acquisitions generated a net cash outflow of EUR\u00a0378\u00a0million.
Companies leaving the group structure
Webhelp
On March 29, 2023, Webhelp and Concentrix announced that they had reached an agreement to combine the two groups. This transaction has created a global player in customer experience (\u201cCX\u201d). The Group concluded that the entire group Webhelp, with the exception of the investment vehicle Sapiens S\u00e0rl, constituted from this date a group held for sale because the following condition was met: GBL\u2019s ability to dispose of this business immediately in its current state within one year. As a consequence the group Webhelp has been classified as a discontinued operation.
On September 25, 2023, the sale of Webhelp has been completed.GBL received a total consideration of EUR\u00a01,103\u00a0million composed of (i)\u00a08,773,667\u00a0Concentrix + Webhelp shares (valued, as at the date of the transaction, at EUR\u00a0610\u00a0million), (ii) earn-out shares (valued, as at the date of the transaction, at EUR\u00a018\u00a0million), (iii) a seller note (with a net present value, as at the date of the transaction, of EUR\u00a0460\u00a0million) and (iv) cash for EUR\u00a015\u00a0million. The debt on minority shareholders was extinguished, without any impact on GBL\u2019s cash, at the closing of the transaction. The impact of the reversal was included in the gain on deconsolidation of Webhelp.
Upon completion of the transaction, GBL became the largest shareholder of the combined entity (\u201cConcentrix + Webhelp\u201d) with 13.17% of the capital and voting rights. GBL is also represented on the Board of Directors.
The assets and liabilities sold are shown in the table below:
In EUR\u00a0million | September 25, 2023 |
Non-current assets\u00a0 | 3,483.9 |
Current assets\u00a0 | 1,078.6 |
Assets held for sale | 4,562.5 |
Assets held for sale | 2,143.3(1) |
Current liabilities\u00a0 | 2,579.3 |
Liabilities associated with assets held for sale | 4,722.6 |
The contributions from discontinued operations have been presented on separate lines in the consolidated income statement and consolidated statement of cash flows, and are shown in the table below:
In EUR\u00a0million | 2023 | 2022 |
Share of profit (loss) of associates and joint ventures from investing activities | - | - |
Net dividends from investments | - | - |
Other operating income (expenses) from investing activities | - | - |
Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities | - | - |
Financial income (expenses) from investing activities | - | 0.1 |
Profit (loss) before tax from investing activities - continuing operations | - | 0.1 |
Turnover | 2,013.8 | 2,485.3 |
Raw materials and consumables | (47.6) | (57.9) |
Employee expenses | (1,500.7) | (1,841.7) |
Depreciation/amortization of property, plant, equipment and intangible assets (excluding impairments and reversals) | (167.2) | (215.5) |
Other operating income (expenses) from operating activities | (215.7) | (301.6) |
Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities | (0.0) | (6.9) |
Financial income (expenses) from operating activities\u00a0 | (51.9) | (413.0) |
Profit (loss) before tax from consolidated operating activities | 30.7 | (351.2) |
Gains (losses) on disposals | 1,291.8 | - |
Income taxes\u00a0 | (11.8) | (18.4) |
Profit (loss) from consolidated operating activities - discontinued operations | 1,310.7 | (369.5) |
In EUR\u00a0million | 2023 | 2022 |
Cash flow from operating activities | 215.6 | 259.8 |
Cash flow from investing activities | (89.9) | (220.4) |
Cash flow from financing activities | (22.7) | (87.3) |
Change in cash and cash equivalents | 103.1 | (47.9) |
The net cash inflow from this sale was EUR\u00a0- 422\u00a0millions.
(1)\tIncluding the debt on minority shareholders
Imerys
On July 28, 2022, Imerys had designated as discontinued operations substantially all of its High Temperature Solutions business line. In the financial statements to December\u00a031, 2023, as in those to December\u00a031, 2022, the discontinued operations\u2019 contributions to income and cash flows were presented separately in the income statement for the current year and the comparative period presented. On January\u00a031, 2023, the business was sold to the US investment fund Platinum Equity for proceeds of EUR\u00a0703\u00a0million received in cash, corresponding to a sale price of EUR\u00a0645\u00a0million for the shares in the entities sold, and EUR\u00a057\u00a0million in debt refinancing. The book value of the assets sold amounted to EUR\u00a0455\u00a0million. Translation adjustments recycled to the income statement in connection with this transaction amounted to EUR\u00a0- 137\u00a0million. Gain on disposal amounted to EUR\u00a053\u00a0million.
The assets and liabilities sold are shown in the table below:
In EUR\u00a0million | December 31, 2022 |
Non-current assets\u00a0 | 503.2 |
Current assets\u00a0 | 439.6 |
Assets held for sale | 942.8 |
Assets held for sale | 164.7 |
Current liabilities\u00a0 | 170.8 |
Liabilities associated with assets held for sale | 335.5 |
The contributions of the business have been presented under separate headings in the consolidated income statement, and their details in the income statement and in the consolidated statement of cash flows are provided in the tables below:
In EUR\u00a0million | 2023 | 2022 |
Turnover | 73.2 | 981.0 |
Raw materials and consumables | (41.6) | (515.5) |
Employee expenses | (13.4) | (148.6) |
Depreciation/amortization of property, plant, equipment and intangible assets (excluding impairments and reversals) | (0.1) | (13.8) |
Other operating income (expenses) from operating activities | (10.2) | (184.0) |
Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities | (21.3) | (0.4) |
Financial income (expenses) from operating activities\u00a0 | 1.8 | (2.7) |
Profit (loss) before tax from consolidated operating activities | (11.6) | 116.0 |
Gains (losses) on disposals | 53.5 | - |
Income taxes\u00a0 | 3.0 | (38.7) |
Profit (loss) from consolidated operating activities - discontinued operations | 44.9 | 77.3 |
In EUR\u00a0million | 2023 | 2022 |
Cash flow from operating activities | 11.9 | 94.4 |
Cash flow from investing activities | (60.7) | 23.9 |
Cash flow from financing activities | (58.6) | (35.1) |
Change in cash and cash equivalents | (107.4) | 83.2 |
The net cash inflow from this sale was EUR\u00a0554\u00a0million.
Other
Lastly, during the 2023 financial year, the group made a number of individually insignificant disposals which generated a net cash inflow of EUR\u00a018\u00a0million.
For consistency purposes, the notes to the consolidated financial statements are grouped based on the nature of the items and not in the order they are presented in the consolidated balance sheet and consolidated statement of comprehensive income. This arrangement is meant to facilitate the analysis of all the factors of the same kind affecting the assets and liabilities in the financial statements.
Note 1Segment information
IFRS 8 Operating Segmentsrequires the identification of segments based on internal reports which are regularly presented to the main operating decision-maker for the purpose of managing the allocation of resources to the segments and assessing their performance.
In conformity with IFRS 8, the group has identified seven segments:
Holding: consisting of the parent company GBL and its subsidiaries. Its main activity is to manage investments as well as the non-consolidated operating companies or associates;
Imerys: consisting of the Imerys group, a French group listed on Euronext Paris and holding leading positions in each of its two main business lines: Performance Minerals and Refractory, Abrasives & Construction;
Webhelp: consisting, until September 25, 2023, date of the disposal, of the Webhelp group, a non-listed French group, specialized in customer experience and business process outsourcing, as well as the dedicated investment vehicle, Sapiens S\u00e0rl;
Canyon: consisting of the Canyon group, a non-listed German group, the world leader in exclusively online Direct-to-Consumer (\u201cDTC\u201d) sales of premium bicycles, as well as the dedicated investment vehicle, GfG Capital S\u00e0rl;
Affidea: comprising the non-listed Affidea Group, leading European provider of advanced diagnostics and outpatient services, and the dedicated investment vehicles to Celeste Capital S\u00e0rl;
Sanoptis: comprising the non-listed Sanoptis(1)Group, a European leader in ophthalmology services including surgeries and diagnostics, and the dedicated investment vehicles to Sofia Capital S\u00e0rl; and
GBL Capital and Sienna Investment Managers (\u201cSIM\u201d)including:
GBL Capital, with its investment\u2019s activity, which includes investments in alternative funds and direct co-investments in private equity, as well as, under consolidated operating activities, the operating subsidiaries of AMB III (subgroups Sausalitos, Vanreusel, Indo, etc.);
Sienna Investment Managers, activity of third-party asset management, through its stake in Sienna Real Estate, Sienna Gestion and Sienna\u00a0Private Credit.
The results of a segment, its assets and its liabilities include all the items directly attributable to it. The accounting standards applied to these segments are identical as those described in the section entitled \u201cAccounting Policies\u201d.
(1)\tFor the following companies of the Sanoptis Group, which are included in the consolidated financial statements, the disclosure exemptions according to \u00a7 264 para. 3 HGB (German Commercial Code) are aplied for: Sanoptis GmbH, Augenklinik Dr. Hoffmann GmbH, Augen\u00e4rzte Braunschweig-G\u00f6ttingen MVZ GmbH, MASG - Medizinische Abrechnungs- und Servicegesellschaft mbH, S\u00fcdblick GmbH, Augenheilkunde Medizinische Versorgungszentren Dillingen GmbH, Augenheilkunde Medizinische Versorgungszentren Heidenheim GmbH, nordBLICK Augenklinik Bellevue GmbH, nordBLICK MVZ GmbH, Wilhelminenhaus Kiel MVZ GmbH, Augentagesklinik Zehlendorf MVZ GmbH, Berolina Augenzentren MVZ GmbH, Augerlin MVZ GmbH, MVZ RHR Augen\u00e4rzte GmbH, MVZ Auregio GmbH, MVZ i-care4u GmbH, Augenzentrum M\u00fchldorf MVZ GmbH, Augenklinik M\u00fchldorf GmbH, Augenkompetenz Zentrum Bremerhaven MVZ GmbH, Augenblick Mannheim S\u00fcd MVZ GmbH, Augenblick Mannheim-Zentrum MVZ GmbH, Augenzentrum Oberstenfeld MVZ GmbH, Augenklinik Rendsburg GmbH, Taxi und Transport Neuwerk GmbH, Augenzentrum Unna MVZ GmbH, Augenblick Augenzentrum Reutlingen MVZ GmbH, Mainblick Augenzentrum GmbH, MVZ Augen Praxisklinik L\u00fcbeck GmbH, Augenzentrum an der Leine MVZ GmbH (former: MVZ Sch\u00f6ne Augenblicke GmbH), Augencentrum K\u00f6ln MVZ GmbH, BEP Augen\u00e4rzte MVZ GmbH, Augenkompetenz Zentrum Cuxhaven MVZ GmbH, AOC Augen OP Centrum Porz GmbH, Augenkompetenz Zentrum Cuxhaven MVZ GmbH (former: MVZ Augencentrum Cuxhaven GmbH), MVZ Weitblick GmbH, Augenheilkunde und Augenchirurgie Bottrop MVZ GmbH, Augentagesklinik am Rothenbaum RBC MVZ GmbH, Avila Augenpraxisklinik MVZ GmbH, Augenzentrum Brilon MVZ GmbH, OCU PRO\u00aeAugen\u00e4rzte MVZ GmbH, Rheinblick Augenzentrum GmbH, Argus Augen MVZ GmbH and Oculent Contactlinsen GmbH
1.1\tSegment information - Consolidated income statement
For the period ended as of December 31, 2023
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Share of profit (loss) of associates and joint ventures from investing activities | (21.8) | - | - | - | - | - | 65.8 | 44.0 |
Net dividends from investments | 286.1 | - | - | - | - | - | - | 286.1 |
Other operating income (expenses) from investing activities | (49.7) | - | (0.2) | (0.1) | (1.2) | (0.4) | (74.5) | (126.0) |
Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities | - | - | (0.0) | - | - | - | 18.5 | 18.5 |
Financial income (expenses) from investing activities | 77.0 | - | (0.4) | - | (0.0) | - | 204.3 | 280.9 |
Profit (loss) before tax from investing activities - continuing operations | 291.6 | - | (0.5) | (0.1) | (1.3) | (0.4) | 214.1 | 503.5 |
Turnover | - | 3,794.4 | - | 790.6 | 851.8 | 494.1 | 206.4 | 6,137.3 |
Raw materials and consumables | - | (1,365.3) | - | (517.3) | (87.9) | (98.6) | (41.5) | (2,110.7) |
Employee expenses | - | (869.1) | - | (105.8) | (438.1) | (205.5) | (71.6) | (1,690.2) |
Depreciation/amortization of property, plant, equipment and intangible assets (excluding impairments and reversals) | - | (299.7) | - | (44.4) | (112.7) | (39.7) | (23.1) | (519.6) |
Other operating income (expenses) from operating activities\u00a0(1) | - | (930.2) | (0.1) | (129.2) | (160.8) | (75.8) | (70.5) | (1,366.7) |
Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities | - | (222.0) | (0.0) | - | 0.2 | 0.0 | (3.5) | (225.3) |
Financial income (expenses) from operating activities\u00a0 | - | (38.6) | (0.0) | (13.0) | (83.2) | (84.9) | (8.7) | (228.4) |
Profit (loss) before tax from consolidated operating activities - continuing operations | - | 69.4 | (0.1) | (19.1) | (30.9) | (10.5) | (12.5) | (3.7) |
Income taxes\u00a0 | (0.2) | (60.4) | (0.0) | 5.9 | (10.4) | (45.8) | (1.3) | (112.2) |
Profit (loss) from continuing operations | 291.4 | 8.9 | (0.6) | (13.3) | (42.5) | (56.7) | 200.3 | 387.5 |
Profit (loss) from consolidated operating activities - discontinued operations | - | 44.9 | 1,310.7 | - | - | - | - | 1,355.6 |
Consolidated profit (loss) for the year | 291.4 | 53.8 | 1,310.1 | (13.3) | (42.5) | (56.7) | 200.3 | 1,743.1 |
Attributable to the group | 291.4 | 28.2 | 1,300.5 | (6.2) | (42.6) | (47.1) | 199.1 | 1,723.2 |
Information by segment on other items of profit or loss is mentioned below:
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Share of profit (loss) of associates and joint ventures | (21.8) | 90.5 | - | - | - | 0.2 | 70.7 | 139.4 |
Depreciation/amortization of property, plant, equipment and intangible assets | (1.1) | (299.8) | (167.2) | (44.4) | (112.7) | (39.7) | (28.2) | (693.1) |
Impairment of non-current assets | - | (214.6) | (0.8) | - | - | - | 1.2 | (214.1) |
(1)\tIncludes the share of profit (loss) of associates and joint ventures from operating activities
For the period ended as of December 31, 2022
In EUR\u00a0million | Holding | Imerys | Webhelp\u00a0(1) | Canyon | Affidea | Sanoptis | GBL Capitalen SIM | Total |
Share of profit (loss) of associates and joint ventures from investing activities | 1.3 | - | - | - | - | - | 1.9 | 3.2 |
Net dividends from investments | 322.3 | - | - | - | - | - | - | 322.3 |
Other operating income (expenses) from investing activities | (37.0) | - | (0.2) | (0.2) | (0.0) | (0.1) | (79.8) | (117.3) |
Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities | - | - | - | - | - | 0.0 | (83.3) | (83.3) |
Financial income (expenses) from investing activities | 136.4 | - | (0.4) | - | (0.0) | - | (531.5) | (395.5) |
Profit (loss) before tax from investing activities - continuing operations | 422.9 | - | (0.6) | (0.2) | (0.0) | (0.1) | (692.6) | (270.6) |
Turnover | - | 4,281.6 | - | 644.9 | 306.6 | 180.1 | 210.2 | 5,623.3 |
Raw materials and consumables | - | (1,472.5) | - | (375.8) | (32.8) | (35.0) | (48.1) | (1,964.2) |
Employee expenses | - | (872.7) | - | (77.8) | (156.2) | (77.5) | (73.8) | (1,258.0) |
Depreciation/amortization of property, plant, equipment and intangible assets (excluding impairments and reversals) | - | (303.1) | - | (46.9) | (42.5) | (23.6) | (26.6) | (442.6) |
Other operating income (expenses) from operating activities\u00a0(2) | - | (1,201.6) | (0.9) | (105.9) | (78.6) | (44.6) | (66.2) | (1,498.0) |
Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities | - | (112.6) | - | - | - | (0.0) | 0.1 | (112.5) |
Financial income (expenses) from operating activities | - | (51.0) | (0.0) | (5.2) | (24.2) | (24.1) | (8.2) | (112.7) |
Profit (loss) before tax from consolidated operating activities - continuing operations | - | 268.1 | (1.0) | 33.2 | (27.8) | (24.7) | (12.6) | 235.3 |
Income taxes\u00a0 | 0.2 | (91.0) | (0.0) | (10.2) | (1.9) | (0.0) | (2.1) | (105.0) |
Profit (loss) from continuing operations | 423.1 | 177.1 | (1.6) | 22.8 | (29.7) | (24.8) | (707.3) | (140.3) |
Profit (loss) from consolidated operating activities - discontinued operations | - | 77.3 | (369.5) | - | - | - | - | (292.2) |
Consolidated profit (loss) for the periode | 423.1 | 254.4 | (371.0) | 22.8 | (29.7) | (24.8) | (707.3) | (432.5) |
Attributable to the group | 423.1 | 130.4 | (388.2) | 11.0 | (30.0) | (20.7) | (710.3) | (584.7) |
Information by segment on other items of profit or loss is mentioned below:
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Share of profit (loss) of associates and joint ventures | 1.3 | 35.9 | - | - | - | - | 4.7 | 41.9 |
Depreciation/amortization of property, plant, equipment and intangible assets | (0.8) | (316.8) | (215.5) | (46.9) | (42.5) | (23.6) | (30.3) | (676.5) |
Impairment of non-current assets | - | (126.0) | (6.9) | - | - | - | (130.7) | (263.6) |
The geographical split of the turnover is presented in Note 8.
(1)\tThe income statement for the period ending December 31, 2022 has been restated to reflect the designation as discontinued operations, in accordance with IFRS 5, of the Webhelp group \u2013 see Note Scope of consolidation
(2)\tIncludes the share of profit (loss) of associates and joint ventures from operating activities
1.2\tSegment information - Consolidated balance sheet
Consolidated balance sheet as of December 31, 2023
In EUR\u00a0million | Holding | Imerys | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Non-current assets | 10,903.5 | 4,469.7 | 749.6 | 2,150.2 | 2,294.2 | 3,024.9 | 23,592.2 |
Intangible assets | 1.0 | 333.3 | 351.9 | 603.5 | 741.9 | 41.8 | 2,073.5 |
Goodwill | - | 1,839.1 | 309.1 | 936.3 | 1,236.6 | 39.7 | 4,360.7 |
Property, plant and equipment | 13.6 | 2,018.4 | 66.2 | 576.5 | 280.2 | 22.0 | 2,976.9 |
Investments | 10,368.2 | 122.9 | 8.6 | 3.0 | 11.8 | 2,861.9 | 13,376.5 |
Investments in associates and joint ventures | 68.0 | 122.7 | 0.0 | - | 10.1 | 571.0 | 771.8 |
Other equity investments | 10,300.3 | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 | 12,604.8 |
Other non-current assets | 520.7 | 41.5 | 2.1 | 10.7 | 9.9 | 57.9 | 642.8 |
Deferred tax assets | - | 114.5 | 11.7 | 20.2 | 13.9 | 1.5 | 161.8 |
Current assets | 1,124.9 | 2,682.2 | 475.6 | 253.9 | 182.4 | 248.5 | 4,967.5 |
Inventories | - | 734.6 | 417.9 | 11.4 | 8.9 | - | 1,172.8 |
Trade receivables | 1.5 | 398.5 | 2.9 | 113.7 | 71.7 | 12.3 | 600.6 |
Trading financial assets | 705.5 | 671.9 | 8.1 | - | - | 0.0 | 1,385.6 |
Cash and cash equivalents | 378.5 | 585.0 | 16.7 | 78.0 | 52.6 | 87.2 | 1,198.0 |
Other current assets | 39.4 | 253.7 | 29.9 | 50.9 | 49.2 | 14.4 | 437.4 |
Assets held for sale | - | 38.5 | - | - | - | 134.7 | 173.1 |
Total assets | 12,028.4 | 7,151.9 | 1,225.2 | 2,404.1 | 2,476.7 | 3,273.4 | 28,559.6 |
Non-current liabilities | 3,061.0 | 2,497.6 | 373.3 | 1,221.2 | 1,590.5 | 62.3 | 8,805.9 |
Financial liabilities | 3,051.4 | 1,810.5 | 261.7 | 1,002.2 | 1,035.6 | 15.8 | 7,177.2 |
Provisions | 0.5 | 426.6 | 8.4 | 13.4 | 4.8 | 2.1 | 456.0 |
Pensions and post-employment benefits | 1.9 | 160.6 | 0.2 | 13.1 | 7.6 | 0.3 | 183.8 |
Other non-current liabilities | 7.2 | 18.7 | - | 56.2 | 355.5 | 34.8 | 472.4 |
Deferred tax liabilities\u00a0 | - | 81.2 | 103.0 | 136.1 | 186.9 | 9.4 | 516.5 |
Current liabilities | 598.4 | 1,497.0 | 136.9 | 261.8 | 113.6 | 136.4 | 2,744.1 |
Financial liabilities | 507.7 | 566.7 | 6.6 | 49.0 | 36.3 | 7.3 | 1,173.7 |
Trade payables | 6.5 | 377.9 | 84.4 | 47.5 | 27.2 | 28.0 | 571.5 |
Provisions | - | 43.6 | 8.2 | 0.2 | 0.1 | 0.1 | 52.2 |
Tax liabilities | 8.2 | 86.0 | 10.6 | 12.2 | 5.2 | 3.2 | 125.3 |
Other current liabilities\u00a0 | 76.0 | 396.8 | 27.0 | 152.9 | 44.8 | 31.9 | 729.4 |
Liabilities associated with assets held for sale | - | 26.0 | - | - | - | 65.8 | 91.9 |
Total liabilities\u00a0 | 3,659.4 | 3,994.6 | 510.2 | 1,482.9 | 1,704.1 | 198.7 | 11,550.0 |
All the assets and liabilities are allocated to the various segments.
Capital expenditure (property, plant and equipment and intangible assets) by segment is shown in the following table:
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Capital expenditure | 1.0 | 390.3 | 72.5 | 20.6 | 80.7 | 82.6 | 8.9 | 656.5 |
Consolidated balance sheet as of December 31, 2022
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Non-current assets | 11,217.2 | 4,357.4 | 3,505.6 | 751.7 | 1,972.2 | 1,846.8 | 2,826.1 | 26,477.0 |
Intangible assets | 1.1 | 287.5 | 833.6 | 373.4 | 589.7 | 663.5 | 86.8 | 2,835.6 |
Goodwill | - | 1,852.2 | 2,128.3 | 309.1 | 889.2 | 965.9 | 113.9 | 6,258.5 |
Property, plant and equipment | 15.2 | 1,959.2 | 499.4 | 48.4 | 468.9 | 184.0 | 113.6 | 3,288.6 |
Investments | 11,200.4 | 92.8 | 0.0 | 0.0 | 1.0 | 2.3 | 2,485.2 | 13,781.8 |
Investments in associates and joint ventures | 90.2 | 90.5 | - | 0.0 | - | - | 436.7 | 617.4 |
Other equity investments | 11,110.2 | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 | 13,164.4 |
Other non-current assets | 0.6 | 54.9 | 28.0 | 13.1 | 4.8 | 6.2 | 25.4 | 132.9 |
Deferred tax assets | - | 110.7 | 16.3 | 7.8 | 18.8 | 24.9 | 1.2 | 179.6 |
Current assets | 1,427.9 | 3,513.6 | 990.6 | 483.9 | 187.7 | 176.7 | 142.9 | 6,923.4 |
Inventories | - | 789.9 | 5.0 | 393.6 | 9.6 | 5.7 | 6.7 | 1,210.6 |
Trade receivables | 0.0 | 489.9 | 454.1 | 3.3 | 88.3 | 53.8 | 19.3 | 1,108.7 |
Trading financial assets | 839.8 | 1.9 | 12.0 | 16.3 | - | - | 0.0 | 870.0 |
Cash and cash equivalents | 544.0 | 620.2 | 340.0 | 25.0 | 63.0 | 88.0 | 88.0 | 1,768.3 |
Other current assets | 44.0 | 235.6 | 179.4 | 45.7 | 26.8 | 29.2 | 28.8 | 589.5 |
Assets held for sale | - | 1,376.2 | - | - | - | - | - | 1,376.2 |
Total assets | 12,645.1 | 7,871.0 | 4,496.2 | 1,235.6 | 2,160.0 | 2,023.5 | 2,969.0 | 33,400.4 |
Non-current liabilities | 3,102.8 | 2,465.6 | 3,879.3 | 367.1 | 968.6 | 1,100.2 | 217.5 | 12,101.1 |
Financial liabilities | 3,055.4 | 1,792.7 | 1,988.1 | 249.8 | 779.1 | 694.5 | 155.1 | 8,714.7 |
Provisions | 0.5 | 388.8 | 2.5 | 4.4 | 9.9 | 2.0 | 4.9 | 413.1 |
Pensions and post-employment benefits | 1.4 | 160.2 | 14.4 | 0.2 | 11.1 | 1.5 | 0.3 | 189.1 |
Other non-current liabilities | 45.4 | 24.1 | 1,732.1 | - | 28.4 | 262.2 | 32.6 | 2,124.8 |
Deferred tax liabilities\u00a0 | - | 99.9 | 142.2 | 112.8 | 140.1 | 139.9 | 24.5 | 659.4 |
Current liabilities | 1,148.5 | 2,020.0 | 792.1 | 123.2 | 226.7 | 77.5 | 91.7 | 4,479.7 |
Financial liabilities | 984.0 | 498.4 | 89.8 | 5.4 | 40.3 | 19.3 | 17.3 | 1,654.6 |
Trade payables | 4.1 | 540.1 | 129.2 | 66.7 | 48.8 | 27.1 | 41.4 | 857.4 |
Provisions | - | 34.3 | 23.6 | 7.4 | 3.2 | 0.1 | 0.1 | 68.6 |
Tax liabilities | 6.8 | 105.0 | 31.5 | 10.5 | 4.9 | 4.8 | 3.5 | 167.0 |
Other current liabilities\u00a0 | 153.6 | 373.3 | 518.0 | 33.2 | 129.5 | 26.1 | 29.4 | 1,263.1 |
Liabilities associated with assets held for sale | - | 468.9 | - | - | - | - | - | 468.9 |
Total liabilities\u00a0 | 4,251.3 | 4,485.6 | 4,671.4 | 490.4 | 1,195.3 | 1,177.7 | 309.2 | 16,580.8 |
All the assets and liabilities are allocated to the various segments.
Capital expenditure (property, plant and equipment and intangible assets) by segment is shown in the following table:
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Capital expenditure | 1.4 | 406.2 | 132.5 | 23.3 | 37.1 | 22.1 | 12.7 | 635.3 |
The breakdown of the group\u2019s non-current assets(1)by geographic region is as follows:
In EUR\u00a0million | 2023 | 2022 |
Belgium | 140.5 | 223.4 |
Other European countries | 7,650.9 | 10,155.8 |
North America | 1,036.5 | 1,167.3 |
Other | 586.3 | 836.3 |
Total | 9,414.1 | 12,382.8 |
Regarding the exposure to climate risks, given their geographic location, Imerys\u2019 entities may potentially be exposed to physical risks related to climate change, such as flooding, submersion, droughts, tornadoes and wildfires. Imerys uses Hazard modelling to identify the locations likely to be exposed to these risks between now and 2050. At December\u00a031, 2023, the carrying amount of these sites represented 9.1% of the group\u2019s consolidated assets, which are covered by suitable insurance policies (2.4% as of December\u00a031, 2022).
Note 2Associates and joint ventures
2.1\tShare of profit (loss)
Dividends received from equity-accounted entities have been eliminated and replaced by GBL\u2019s share of their profit or loss.
Dividends received
In EUR\u00a0million | 2023 | 2022 |
M\u00e9rieux Participations 2 | 5.0 | 13.3 |
Other associates and joint ventures | 54.7 | 5.8 |
Total | 59.6 | 19.1 |
Profit (loss) of associates and joint ventures (GBL\u2019s share)
In EUR\u00a0million | 2023 | 2022 |
Share of profit or loss of associates and joint ventures \u2013 investing activities | 44.0 | 3.2 |
AMB I, II & IV\u00a0 | 72.9 | 9.2 |
Backed | 10.6 | (10.3) |
Avanti Acquisition Corp. | - | 1.8 |
StreetTeam | - | - |
Landlife Holding | (2.2) | (0.0) |
M\u00e9rieux Participations 2 | (15.5) | 1.2 |
Parques Reunidos/Piolin II | (21.8) | 1.3 |
Associates and joint ventures related to consolidated operating activities (shown under \"Other operating income (expenses)\")\u00a0 | 94.6 | 32.6 |
The Quartz Corporation (Imerys) | 80.1 | 18.4 |
I.P.E. | 4.7 | 2.5 |
Other | 9.8 | 11.7 |
Total | 138.5 | 35.9 |
AMB I, II & IV
The contribution of AMB I, II & IV to the net result of GBL amounts to EUR\u00a073\u00a0million in 2023 (EUR\u00a09\u00a0million in 2022). This result mainly includes gains on the revaluation to fair value of AMB IV\u2019s share portfolio.
Backed
Backed contributed to GBL\u2019s result for EUR\u00a011\u00a0million (EUR\u00a0- 10\u00a0million in 2022). This result comes mainly from fair value revaluation gains on its investment portfolio.
(1)\tIntangible assets, property, plant and equipment and goodwill
M\u00e9rieux Participations 2
The contribution of M\u00e9rieux Participations 2 (EUR\u00a0- 15\u00a0million versus EUR\u00a01\u00a0million in 2022) includes mainly fair value revaluation on its investment portfolio.
Parques Reunidos/Piolin II
The net result (GBL\u2019s share) of Parques Reunidos/Piolin II amounts to EUR\u00a0- 22\u00a0million in 2023 (EUR\u00a01\u00a0million in 2022).
2.2Value of associates and joint ventures
Investing activities | Operating activities | Total | ||||||||
In EUR\u00a0million | Parques Reunidos/Piolin II | Backed | AMB I, II & IV | Avanti | StreetTeam | Landlife Holding | M\u00e9rieux Participations 2 | I.P.E. | Other | |
As of December 31, 2021 | 89.7 | 141.9 | 191.0 | 4.7 | 70.5 | - | 62.4 | 44.2 | 101.1 | 705.4 |
Investment/(Divestment) | - | 7.9 | 18.9 | 0.5 | - | 0.0 | (10.2) | (5.2) | (3.6) | 8.2 |
Profit (loss) for the year | 1.3 | (10.3) | 9.2 | 1.8 | - | - | 1.2 | 2.5 | 30.1 | 35.9 |
Distribution | - | - | - | - | - | - | (13.3) | - | (5.8) | (19.1) |
Impairment | - | - | - | (7.4) | (76.8) | - | - | (5.3) | - | (89.5) |
Other | (0.8) | (0.0) | - | 0.5 | 6.4 | - | 0.0 | (0.0) | (29.4) | (23.4) |
As of December 31, 2022 | 90.2 | 139.4 | 219.1 | - | - | 0.0 | 40.0 | 36.2 | 92.5 | 617.4 |
Investment/(Divestment) | - | 4.5 | 4.8 | (7.4) | - | 55.3 | (2.2) | - | 9.2 | 64.1 |
Profit (loss) for the year | (21.8) | 10.6 | 72.9 | - | - | (2.2) | (15.5) | 4.7 | 89.8 | 138.5 |
Distribution | - | - | - | - | - | - | (5.0) | - | (54.7) | (59.6) |
Impairment | - | - | - | 7.4 | - | - | - | 7.4 | - | 14.8 |
Other | (0.4) | 0.0 | - | - | - | (0.3) | 0.0 | 0.0 | (2.6) | (3.3) |
As of December 31, 2023 | 68.0 | 154.5 | 296.8 | - | - | 52.8 | 17.4 | 48.3 | 134.2 | 771.8 |
Of which: Holding | 68.0 | - | - | - | - | - | - | - | - | 68.0 |
Imerys | - | - | - | - | - | - | - | - | 122.7 | 122.7 |
Canyon | - | - | - | - | - | - | - | - | 0.0 | 0.0 |
Affidea | - | - | - | - | - | - | - | - | - | - |
Sanoptis | - | - | - | - | - | - | - | - | 10.1 | 10.1 |
GBL Capital and SIM | - | 154.5 | 296.8 | - | - | 52.8 | 17.4 | 48.3 | 1.3 | 571.0 |
Associates and joint ventures are not listed.
2.3Other information on associates and joint ventures
Aggregated financial information of major associates and joint ventures
The tables below present a summary of the financial information regarding Backed, AMB I, II & IV and Parques Reunidos/Piolin II, significant associates in 2023 and the other smaller associates and joint ventures. This summary represents the amounts included in the companies\u2019 financial statements prepared in accordance with IFRS.
In EUR\u00a0million | Backed | AMB I, II & IV | Parques Reunidos/Piolin II | Other associates and joint ventures | Total |
As of December 31, 2023 | |||||
Non-current assets | 361.5 | 919.4 | 2,354.9 | 764.4 | 4,400.2 |
Current assets | 2.4 | 18.8 | 126.6 | 411.0 | 558.8 |
Non-current liabilities | 38.4 | 76.4 | 1,789.6 | 145.0 | 2,049.3 |
Current liabilities | 1.2 | 0.2 | 396.4 | 493.0 | 890.7 |
Non-controlling interests | - | - | 1.4 | 120.9 | 122.3 |
Shareholder's equity (group's share) | 324.4 | 861.7 | 294.2 | 416.6 | 1,896.8 |
Ownership interest in capital | n.r. | n.r. | 23.1% | n.r. | n.r. |
Share in equity | 154.5 | 296.8 | 68.0 | 247.9 | 767.2 |
Goodwill | - | - | - | 4.6 | 4.6 |
Carrying amount as of December 31, 2023 | 154.5 | 296.8 | 68.0 | 252.5 | 771.8 |
Turnover | - | - | 830.1 | 548.9 | 1,379.0 |
Profit (loss) from continuing operations | 22.3 | 211.8 | (94.6) | 127.0 | 266.7 |
Net result of the year (including non-controlling interests) | 22.3 | 211.8 | (94.8) | 127.0 | 266.4 |
Net result of the year (group\u2019s share) | 22.3 | 211.8 | (94.6) | 41.2 | 180.9 |
Other comprehensive income (loss) | - | - | (0.7) | - | (0.7) |
Total comprehensive income (loss) for the year | 22.3 | 211.8 | (95.2) | 41.2 | 180.2 |
Dividends received during the year | - | - | - | 59.6 | 59.6 |
Share of the group in the profit (loss) for the year | 10.6 | 72.9 | (21.8) | 76.9 | 138.5 |
In EUR\u00a0million | |||||
Backed | AMB I, II & IV | Parques Reunidos/Piolin II | Other associates and joint ventures | Total | |
As of December 31, 2022 | |||||
Non-current assets | 320.1 | 678.0 | 2,369.9 | 277.4 | 3,645.5 |
Current assets | 4.8 | 3.3 | 150.7 | 170.4 | 329.2 |
Non-current liabilities | 31.6 | 40.8 | 1,830.7 | 67.9 | 1,970.9 |
Current liabilities | 1.4 | 5.1 | 298.1 | 74.8 | 379.4 |
Non-controlling interests | - | - | 1.3 | 0.0 | 1.3 |
Shareholder's equity (group's share) | 291.9 | 635.5 | 390.6 | 305.0 | 1,623.0 |
Ownership interest in capital | n.r. | n.r. | 23.1% | n.r. | n.r. |
Share in equity | 139.4 | 219.1 | 90.2 | 163.9 | 612.6 |
Goodwill | - | - | - | 4.8 | 4.8 |
Carrying amount as of December 31, 2022 | 139.4 | 219.1 | 90.2 | 168.7 | 617.4 |
Turnover | - | - | 820.5 | 334.9 | 1,155.4 |
Profit (loss) from continuing operations | (15.0) | 26.7 | 5.9 | 58.5 | 76.1 |
Net result of the year (including non-controlling interests) | (15.0) | 26.7 | 5.9 | 58.5 | 76.1 |
Net result of the year (group\u2019s share) | (15.0) | 26.7 | 5.7 | 58.5 | 75.9 |
Other comprehensive income (loss) | - | - | (4.2) | 0.0 | (4.1) |
Total comprehensive income (loss) for the year | (15.0) | 26.7 | 1.6 | 58.6 | 71.8 |
Dividends received during the year | - | - | - | 19.1 | 19.1 |
Share of the group in the profit (loss) for the year | (10.3) | 9.2 | 1.3 | 35.7 | 35.9 |
Note 3SGS, Pernod Ricard, adidas and other equity investments
3.1\tNet dividends
In EUR\u00a0million | 2023 | 2022 |
SGS | 117.7 | 109.8 |
Pernod Ricard | 80.9 | 82.0 |
Holcim | 33.6 | 28.0 |
Umicore | 31.4 | 31.4 |
GEA | 9.9 | 10.2 |
adidas | 8.2 | 38.5 |
Concentrix + Webhelp | 2.4 | - |
Mowi | 1.4 | 19.1 |
TotalEnergies | 0.7 | 0.8 |
Other | 0.1 | 0.9 |
Reimbursements of withholding taxes | - | 1.6 |
Total | 286.1 | 322.3 |
In 2023, GBL recorded EUR\u00a0286\u00a0million in dividends (EUR\u00a0322\u00a0million in 2022). This decrease mainly reflects the lower dividends received from\u00a0adidas, as well as the decrease of Mowi\u2019s contribution as a consequence of the sales of the position in 2022 and 2023.
3.2\tFair value and changes
The investments in listed companies are valued on the basis of the share price at the reporting date. The investments in unlisted companies are valued on a quarterly basis at their fair value in line with the recommendations of the International Private Equity and Venture Capital Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d). Recent investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of their fair values. Changes in the fair value are recognized in the revaluation reserves (see Note 3.3.).
Shares in \u201cFunds\u201d comprising 468 Capital II, Alto Capital V, Apheon opseo Long Term Value Fund, Apheon SVT Long Term Value Fund, BDT Capital Partners Fund II, Carlyle International Energy Partners II, C2 Capital Global Export-to-China Fund, E.C.B. (Bastille)-Telenco, EC IV Invest, Eight Partners Worldwide, Fonds F2E, Globality, Griffin, HCM IV, HCM V, HCM S11A (Transcarent), HCM S3C (Commure), Iceberg Data Lab, Iconiq VII, Illumio, Innovius Capital Fund, Kartesia Credit Opportunities III, IV and V, KKR Azur Co-invest, KKR Rainbow Co-Invest (Asset), KKR Sigma Co-Invest II, Klarna Holding, Marcho Partners, Marcho Partners Long, Cepsa, M\u00e9rieux Participations I, Predirec ABL-3 (Part B), PrimeStone, Sagard, Sagard II, Sagard 3, Sagard 4, Sagard NewGen,Sagard NewGen Pharma, Sagard Sant\u00e9 Animale, Sagard Testing, Sagard Business Intelligence, Sapphire (proALPHA), Sienna Levier, Sienna Rendement Avenir IV, Sienna Social Impact, Sienna Venture Capital Startup Nation, Sienna Sustainable Infra Debt\u00a0III, South Park Commons Seed Fund II, South Park Commons Opportunities Fund II, Stripes VI (A) and others are revalued at their fair value, as notably determined by the managers of these funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss) (see Note 7).
Of which: | ||||||||||||
In EUR\u00a0million | December 31, 2022 | Acquisitions | Disposals/Reimburse-ments | Change in fair value | Other | December 31, 2023 | Holding | Imerys | Canyon | Affidea | Sanoptis | GBL Capitaland SIM |
Investments with changes in fair value through equity | 11,110.2 | 643.3 | (1,075.8) | (377.5) | 0.0 | 10,300.3 | 10,300.3 | - | - | - | - | - |
SGS | 3,126.6 | 33.3 | - | (324.9) | - | 2,835.0 | 2,835.0 | - | - | - | - | - |
Pernod Ricard | 3,266.2 | - | (23.6) | (494.1) | - | 2,748.5 | 2,748.5 | - | - | - | - | - |
adidas | 1,748.1 | - | - | 777.6 | - | 2,525.7 | 2,525.7 | - | - | - | - | - |
Umicore | 1,346.5 | - | - | (369.6) | - | 976.9 | 976.9 | - | - | - | - | - |
Concentrix + Webhelp | - | 609.9 | - | 169.8 | - | 779.8 | 779.8 | - | - | - | - | - |
Voodoo | 273.0 | - | - | 14.2 | - | 287.2 | 287.2 | - | - | - | - | - |
Ontex | 102.7 | - | - | 22.5 | - | 125.1 | 125.1 | - | - | - | - | - |
TotalEnergies | 15.7 | - | - | 0.8 | 0.0 | 16.5 | 16.5 | - | - | - | - | - |
GEA | 434.0 | - | (400.9) | (28.9) | - | 4.2 | 4.2 | - | - | - | - | - |
Holcim | 639.7 | - | (488.1) | (151.6) | - | - | - | - | - | - | - | - |
Mowi | 156.7 | - | (163.2) | 6.5 | - | - | - | - | - | - | - | - |
Other | 1.2 | 0.0 | - | 0.2 | - | 1.4 | 1.4 | - | - | - | - | - |
Investments with changes in fair value through profit or loss | 2,054.2 | 347.9 | (270.5) | 187.6 | (14.6) | 2,304.6 | - | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 |
Co-investments/Funds | 2,030.9 | 343.5 | (266.3) | 187.6 | (27.0) | 2,268.6 | - | - | - | - | - | 2,268.6 |
Other | 23.3 | 4.4 | (4.2) | - | 12.4 | 35.9 | - | 0.2 | 8.6 | 3.0 | 1.7 | 22.3 |
Fair value | 13,164.4 | 991.2 | (1,346.3) | (189.9) | (14.6) | 12,604.8 | 10,300.3 | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 |
Of which: | |||||||||||||
In EUR\u00a0million | December 31, 2021 | Acquisitions | Disposals/Reimburse-ments | Change in fair value | Other | December 31, 2022 | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM |
Investments with changes in fair value through equity | 15,789.2 | 0.7 | (759.3) | (3,920.4) | 0.0 | 11,110.2 | 11,110.2 | - | - | - | - | - | - |
SGS | 4,207.3 | - | (87.6) | (853.6) | - | 3,266.2 | 3,266.2 | - | - | - | - | - | - |
Pernod Ricard | 4,223.4 | - | - | (1,096.8) | - | 3,126.6 | 3,126.6 | - | - | - | - | - | - |
adidas | 3,472.5 | - | - | (1,724.5) | - | 1,748.1 | 1,748.1 | - | - | - | - | - | - |
Umicore | 1,402.6 | - | - | (56.1) | - | 1,346.5 | 1,346.5 | - | - | - | - | - | - |
Holcim | 592.3 | - | - | 47.4 | - | 639.7 | 639.7 | - | - | - | - | - | - |
GEA | 546.3 | - | - | (112.4) | - | 434.0 | 434.0 | - | - | - | - | - | - |
Voodoo | 266.0 | 0.3 | - | 6.7 | - | 273.0 | 273.0 | - | - | - | - | - | - |
Mowi | 756.9 | - | (436.8) | (163.4) | - | 156.7 | 156.7 | - | - | - | - | - | - |
Ontex | 115.0 | - | - | (12.3) | - | 102.7 | 102.7 | - | - | - | - | - | - |
TotalEnergies | 11.9 | - | - | 3.7 | 0.0 | 15.7 | 15.7 | - | - | - | - | - | - |
Other | 194.9 | 0.4 | (234.9) | 40.7 | - | 1.2 | 1.2 | - | - | - | - | - | - |
Investments with changes in fair value through profit or loss | 2,385.7 | 491.9 | (328.5) | (487.1) | (7.7) | 2,054.2 | - | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 |
Funds | 2,385.7 | 473.1 | (328.5) | (487.1) | (12.3) | 2,030.9 | - | - | - | - | - | - | 2,030.9 |
Other | 0.0 | 18.7 | (0.0) | - | 4.6 | 23.3 | - | 2.3 | 0.0 | - | 1.0 | 2.3 | 17.6 |
Fair value | 18,174.9 | 492.6 | (1,087.8) | (4,407.5) | (7.7) | 13,164.4 | 11,110.2 | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 |
3.3\tRevaluation reserves
These reserves include the changes in the fair value of other equity investments whose changes in fair value are recorded through equity.
In 2023, the disposals of the remaining stakes in Holcim and Mowi, the partial disposal of Pernod Ricard and the disposal of the securities underlying the exchangeable bonds in GEA shares (matured in December\u00a02023) resulted in a reclassification to retained earnings\u00a0of\u00a0EUR\u00a0-\u00a045\u00a0million, EUR\u00a05\u00a0million, EUR\u00a0-\u00a087\u00a0million and EUR\u00a036\u00a0million respectively. In 2022, following\u00a0the\u00a0partial disposals of Mowi and Pernod\u00a0Ricard, the cumulated revaluation reserves of EUR\u00a075\u00a0million and EUR\u00a0297\u00a0million respectively were reclassified to retained earnings.
In EUR\u00a0million | SGS | Pernod Ricard | adidas | Umicore | Mowi | Holcim | GEA | Concentrix + Webhelp | Voodoo | Ontex | TotalEnergies | Other | Total |
As of December 31, 2021 | 1,670.0 | 3,384.4 | 2,361.2 | 607.9 | 156.8 | 104.2 | 141.5 | - | (2.2) | (339.4) | 5.6 | (43.5) | 8,046.6 |
Change resulting from the change in fair value | (1,096.8) | (556.8) | (1,724.5) | (56.1) | (88.4) | 47.4 | (112.4) | - | 6.7 | (12.3) | 3.7 | (29.2) | (3,618.6) |
Transfers to consolidated reserves in case of disposal | - | (296.7) | - | - | (75.0) | - | - | - | - | - | - | 69.9 | (301.8) |
As of December 31, 2022 | 573.1 | 2,530.8 | 636.7 | 551.8 | (6.5) | 151.6 | 29.2 | - | 4.5 | (351.7) | 9.3 | (2.7) | 4,126.1 |
Change resulting from the change in fair value | (324.9) | (407.2) | 777.6 | (369.6) | 1.3 | (106.2) | (64.6) | 169.8 | 14.2 | 22.5 | 0.8 | 0.2 | (285.9) |
Transfers to consolidated reserves in case of disposal | - | (86.9) | - | - | 5.2 | (45.4) | 35.6 | - | - | - | - | - | (91.6) |
As of December 31, 2023 | 248.2 | 2,036.8 | 1,414.4 | 182.2 | - | - | 0.2 | 169.8 | 18.8 | (329.3) | 10.1 | (2.5) | 3,748.7 |
Note 4Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities
In EUR\u00a0million | 2023 | 2022 |
Sausalitos | 13.4 | - |
Avanti | 0.3 | - |
Indo | - | 47.3 |
Other | (0.0) | 0.1 |
Gains on disposals of subsidiaries - investing activities | 13.6 | 47.4 |
Pollen | (2.5) | (102.6) |
Sienna Real Estate | - | (15.4) |
Avanti | - | (7.4) |
Other | 7.4 | (5.3) |
Impairments and reversals of non-current assets - investing activities | 4.9 | (130.7) |
This section, relating to results from transactions with subsidiaries or associates, mainly includes, in 2023, the net capital gain on the disposal by AMB\u00a0III of Sausalitos (EUR\u00a013\u00a0million). In 2022, it mainly included the net capital gains on the sale by AMB III of Indo (EUR\u00a047\u00a0million) and the impairment loss recorded on Pollen (EUR\u00a0- 103\u00a0million).
Note 5Other operating income (expenses) and employee expenses
5.1Details of other operating income (expenses)
In EUR\u00a0million | 2023 | 2022 |
Miscellaneous goods and services | (84.3) | (71.7) |
Employee expenses | (57.2) | (38.3) |
Depreciation and amortization | (6.3) | (4.6) |
Other operating expenses | 1.1 | (4.7) |
Other operating income | 20.7 | 2.0 |
Other operating income (expenses) - investing activities | (126.0) | (117.3) |
Transport costs | (521.0) | (691.8) |
Subcontracting costs | (140.4) | (129.2) |
Operating leases | (81.1) | (41.4) |
Fees | (125.9) | (181.0) |
Various taxes | (33.8) | (39.8) |
Other operating expenses | (664.8) | (537.0) |
Other operating income | 105.9 | 89.5 |
Share of profit (loss) of associates and joint ventures belonging to consolidated operating activities | 94.5 | 32.6 |
Other operating income (expenses) - operating activities\u00a0 | (1,366.7) | (1,498.0) |
Other operating expenses related to operating activities mainly consist of Imerys\u2019 maintenance and repair expenses (EUR\u00a096\u00a0million and EUR\u00a0119\u00a0million in 2023 and 2022 respectively), restructuring expenses (EUR\u00a034\u00a0million in 2023 and EUR\u00a021\u00a0million in 2022) and research and development costs (EUR\u00a044\u00a0million and EUR\u00a042\u00a0million in 2023 and 2022 respectively).
5.2Details of employee expenses
In EUR\u00a0million | 2023 | 2022 |
Remuneration | (48.4) | (36.0) |
Social security contributions | (7.9) | (6.2) |
Costs related to stock options | 3.1 | 9.4 |
Contributions to pension plans\u00a0 | (1.7) | (2.9) |
Other | (2.3) | (2.6) |
Employee expenses - investing activities | (57.2) | (38.3) |
Remuneration | (1,233.0) | (962.9) |
Social security contributions | (230.7) | (177.3) |
Costs related to stock options | (14.0) | (16.2) |
Contributions to pension plans\u00a0 | (27.9) | (34.4) |
Other | (184.5) | (67.1) |
Employee expenses - consolidated operating activities | (1,690.2) | (1,258.0) |
The details of the remuneration of GBL\u2019s directors are shown in Note 32. The stock option plans are detailed in Note 27.
Note 6Gains (losses) on disposals, impairments and reversals of non-current assets related to operating activities
In EUR\u00a0million | 2023 | 2022 |
Impairment on intangible assets and goodwill | (5.4) | (108.0) |
Impairment on property, plant and equipment, net of reversals | (209.4) | (18.0) |
Reversal of impairment on other non-current assets | (3.4) | 1.0 |
Capital gain/(loss) realized on disposals of investments and activities | (7.1) | 12.5 |
Total | (225.3) | (112.5) |
The impairments on intangible assets, goodwill and property, plant and equipment are detailed in the Notes 9, 10, 11 and 24.
Note 7Financial income (expenses)
In EUR\u00a0million | 2023 | 2022 |
Interest income on cash and cash equivalents, non-current assets or other | 36.5 | (7.7) |
Interest expenses on financial liabilities | (67.0) | (27.0) |
Gains (losses) on trading securities and derivatives | 122.1 | 124.0 |
Change in the fair value of other equity investments recognized at fair value through profit or loss | 187.6 | (487.1) |
Other financial income | 17.2 | 13.0 |
Other financial expenses | (15.4) | (10.7) |
Financial income (expenses) - investing activities | 280.9 | (395.5) |
Interest income on cash and cash equivalents and non-current assets | 10.6 | 6.5 |
Interest expenses on financial liabilities | (215.9) | (102.0) |
Gains (losses) on trading securities and derivatives | 4.8 | (1.8) |
Other financial income | 72.9 | 36.2 |
Other financial expenses | (100.8) | (51.7) |
Financial income (expenses) - operating activities\u00a0 | (228.4) | (112.7) |
Financial income (expenses) from investing activities total EUR\u00a0281\u00a0million (compared to EUR\u00a0- 395\u00a0million in 2022). They mainly consist of (i) the changes in fair value of other equity investments recognized at fair value in profit or loss for EUR\u00a0188\u00a0million (EUR\u00a0- 487\u00a0million in 2022), (ii) a total net income of EUR\u00a070\u00a0million related to the mark to market of the derivative component associated to the exchangeable bonds into GEA shares, to the exchangeable bonds into Pernod Ricard shares and the convertible bonds into GBL shares (a net income of EUR\u00a098\u00a0million 2022), (iii) the result of yield enhancement for EUR\u00a019\u00a0million in 2023, including EUR\u00a06\u00a0million in revenues generated in 2023 and EUR\u00a013\u00a0million in mark-to-market (against EUR\u00a09\u00a0million in 2022) and (iv) the interest charges on GBL\u2019s indebtedness for EUR\u00a0-\u00a064\u00a0million (EUR\u00a0-\u00a026\u00a0million in 2022).
Financial income (expenses) from consolidated operating activities essentially result from interest expenses on Affidea\u2019s, Sanoptis\u2019 and Imerys\u2019 indebtedness for EUR\u00a076\u00a0million, EUR\u00a076\u00a0million and EUR\u00a041\u00a0million respectively (EUR\u00a026\u00a0million, EUR\u00a023\u00a0million and EUR\u00a038\u00a0million in 2022 respectively).
Note 8Turnover
The table below presents the split of the revenue into sales of goods, services provided and other:
In EUR\u00a0million | 2023 | 2022 |
Sales of goods | 4,361.3 | 4,638.0 |
Services provided | 1,773.2 | 966.2 |
Other | 2.7 | 19.1 |
Total | 6,137.3 | 5,623.3 |
The table below presents the split by cash generating unit:
In EUR\u00a0million | 2023 | 2022 |
Performance Materials | 2,341.0 | 2,599.7 |
Refractory, Abrasives & Construction | 1,232.7 | 1,434.4 |
Other | 220.7 | 247.5 |
Imerys | 3,794.4 | 4,281.6 |
Canyon | 790.6 | 644.9 |
Affidea | 851.8 | 306.6 |
Sanoptis | 494.1 | 180.1 |
Vanreusel | 82.5 | 72.5 |
Sienna Gestion | 58.7 | 38.6 |
Sausalitos | 33.2 | 46.7 |
Sienna Real Estate | 19.3 | 15.5 |
Sienna Private Credit | 12.6 | 8.6 |
Indo | - | 28.4 |
GBL Capital and SIM | 206.4 | 210.2 |
Total | 6,137.3 | 5,623.3 |
The breakdown of the group\u2019s turnover by geographic region is as follows:
In EUR\u00a0million | 2023 | 2022 |
Belgium | 161.8 | 149.2 |
Other European countries | 3,616.1 | 2,898.1 |
Americas | 1,383.6 | 1,485.9 |
Asia | 791.6 | 924.7 |
Other | 184.1 | 165.4 |
Total | 6,137.3 | 5,623.3 |
The following table presents a different breakdown of revenue by the time at which goods and services are transferred to customers, distinguishing between goods and services transferred to customers at a given point in time and services transferred to customers over time:
In EUR\u00a0million | 2023 | 2018 |
Goods and services transferred to customers at a specific time | 4,366.6 | 4,768.5 |
Services progressively transferred to customers | 1,770.7 | 854.8 |
Total | 6,137.3 | 5,623.3 |
At Imerys\u2019 level, main contributor to the turnover, the breakdown of revenue by geographical location of its operations and geographical location of its customers is as follows:
In EUR\u00a0million | 2023 | 2022 |
Turnover breakdown by geographic areas | ||
Europe | 1,975.3 | 2,204.1 |
Asia-Oceania | 521.7 | 616.5 |
North America | 1,063.4 | 1,215.4 |
Other | 234.0 | 245.6 |
Total | 3,794.4 | 4,281.6 |
In EUR\u00a0million | 2023 | 2022 |
Turnover breakdown by geographic areas of the customers | ||
Europe | 1,690.4 | 1,868.2 |
Asia-Oceania | 760.3 | 903.5 |
North America | 1,014.9 | 1,149.7 |
Other | 328.8 | 360.2 |
Total | 3,794.4 | 4,281.6 |
Note 9Intangible assets
In EUR\u00a0million | Software | Mining rights | Patents, licenses and concessions | Trade-marks | Customer relations | Other | Total |
Gross carrying amount\u00a0 | |||||||
As of December 31, 2021 | 266.5 | 2.8 | 235.5 | 479.1 | 821.6 | 269.2 | 2,074.6 |
Investments | 29.0 | 0.2 | 0.8 | - | - | 55.3 | 85.3 |
Changes in group structure/business combinations | 8.2 | - | 13.4 | 86.0 | 713.2 | 542.9 | 1,363.6 |
Transfers between categories | 14.0 | - | (3.2) | - | - | (12.5) | (1.8) |
Disposals and retirements | (9.7) | - | (7.8) | (10.2) | (19.7) | (6.3) | (53.7) |
Foreign currency translation adjustments | 1.1 | 0.0 | (3.3) | - | 4.3 | 1.7 | 3.8 |
Other | (11.6) | (0.4) | (35.7) | (0.1) | (0.3) | (16.7) | (64.7) |
As of December 31, 2022 | 297.4 | 2.6 | 199.8 | 554.8 | 1,519.1 | 833.5 | 3,407.2 |
Investments | 14.8 | 3.7 | 2.0 | 0.0 | - | 69.7 | 90.2 |
Changes in group structure/Business combinations | 0.1 | - | 0.5 | 1.2 | 59.4 | 66.7 | 127.9 |
Transfers between categories | 39.4 | 1.0 | (23.8) | 12.4 | 91.7 | (118.4) | 2.3 |
Disposals and retirements | (25.3) | - | (0.2) | (0.2) | (22.6) | (29.9) | (78.2) |
Foreign currency translation adjustments | (0.8) | 0.0 | 0.0 | 0.1 | 0.6 | (0.2) | (0.2) |
Other | (122.9) | - | (10.2) | (182.7) | (764.9) | (27.2) | (1,108.0) |
As of December 31, 2023 | 202.7 | 7.3 | 168.1 | 385.6 | 883.2 | 794.1 | 2,441.1 |
Cumulated amortization | |||||||
As of December 31, 2021 | (175.3) | (0.7) | (38.6) | (12.2) | (109.0) | (128.8) | (464.6) |
Amortization | (32.5) | (0.2) | (2.6) | (15.2) | (85.8) | (24.8) | (161.1) |
Impairment (losses)/reversals | - | - | - | - | - | (0.1) | (0.1) |
Transfers between categories | (2.9) | - | 2.6 | - | - | 1.9 | 1.6 |
Disposals and retirements | 10.2 | - | 7.1 | 4.0 | 7.7 | 0.3 | 29.3 |
Foreign currency translation adjustments | (1.2) | (0.0) | (0.1) | - | 0.6 | (1.1) | (1.9) |
Changes in group structure/Other | 6.7 | 0.1 | 6.4 | - | 0.1 | 11.9 | 25.1 |
As of December 31, 2022 | (195.1) | (0.7) | (25.2) | (23.4) | (186.4) | (140.7) | (571.6) |
Amortization | (25.8) | (0.3) | (2.7) | (18.4) | (66.7) | (14.6) | (128.5) |
Impairment (losses)/reversals | (0.2) | - | - | - | - | (0.0) | (0.2) |
Transfers between categories | (2.3) | (0.3) | 2.6 | - | (42.5) | 44.3 | 1.8 |
Disposals and retirements | 25.3 | - | 0.2 | - | 11.1 | 25.3 | 61.9 |
Foreign currency translation adjustments | 1.0 | (0.0) | (0.1) | (0.0) | 1.6 | 0.1 | 2.6 |
Changes in group structure/Other | 83.2 | 0.0 | 5.1 | 11.3 | 159.2 | 7.6 | 266.3 |
As of December 31, 2023 | (113.9) | (1.3) | (20.1) | (30.6) | (123.8) | (78.0) | (367.7) |
Net carrying amount\u00a0 | |||||||
As of December 31, 2021 | 91.1 | 2.1 | 196.8 | 466.9 | 712.7 | 140.5 | 1,610.0 |
As of December 31, 2022 | 102.3 | 1.9 | 174.5 | 531.4 | 1,332.7 | 692.8 | 2,835.6 |
As of December 31, 2023 | 88.9 | 6.0 | 148.0 | 355.0 | 759.4 | 716.0 | 2,073.5 |
Of which: Holding | 1.0 | - | - | - | - | - | 1.0 |
Imerys | 68.3 | 6.0 | 138.5 | - | 35.0 | 85.5 | 333.3 |
Canyon | 6.4 | - | 2.6 | 276.2 | 27.5 | 39.2 | 351.9 |
Affidea | 9.0 | - | - | 73.3 | 521.2 | - | 603.5 |
Sanoptis | 1.2 | - | 0.4 | 5.5 | 149.6 | 585.1 | 741.9 |
GBL Capital and SIM | 3.0 | - | 6.3 | - | 26.2 | 6.4 | 41.8 |
The intangible assets with an indefinite useful life amount to EUR\u00a0557\u00a0million as of December\u00a031, 2023 \u2013 presented under the heading \u201cOther\u201d (EUR\u00a0653\u00a0million as of December\u00a031, 2022 \u2013 presented under the heading \u201cTrademarks\u201d and \u201cOther\u201d). These include the valuation at Sanoptis of the rights to receive insured patients for EUR\u00a0557\u00a0million (EUR\u00a0498\u00a0million s of December\u00a031, 2022). Intangible assets with finite useful lives mainly relate to customer relationships (EUR\u00a0521\u00a0million at Affidea and EUR\u00a0150\u00a0million at Sanoptis) and trademarks (EUR\u00a0276\u00a0million at Canyon).
The depreciation charges for the various periods are shown under \u201cOther operating income (expenses) from investing activities\u201d and \u201cDepreciation/ amortization of property, plant, equipment and intangible assets \u2013 consolidated operating activities\u201d in the consolidated income statement.
Research and development costs in 2023 amounted to EUR\u00a044\u00a0million (EUR\u00a042\u00a0million in 2022).
The line \u201cOther\u201d in 2023 includes mainly the reclassification of intangible assets of Webhelp to \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Regarding the emission rights, Imerys is subject to greenhouse gas regulation schemes at eleven of its facilities in Europe and one facility in the US. In 2023 and 2022, Imerys used all the emission rights allocated to its eligible facilities. As the estimated volume of greenhouse gas emissions exceeded the emission rights in 2023, the group made a provision of EUR\u00a08\u00a0million at December\u00a031, 2023 to cover the deficit (EUR\u00a04\u00a0million at December\u00a031, 2022). In addition, the carrying amount of emission rights acquired on the market was EUR\u00a015\u00a0million as of December\u00a031, 2023 (EUR\u00a08\u00a0million as of December\u00a031, 2022).
Note 10Goodwill
In EUR\u00a0million | 2023 | 2022 |
Gross carrying amount\u00a0 | ||
As of January 1 | 6,359.1 | 4,750.6 |
Changes in group structure/Business combinations | 285.3 | 1,916.1 |
Foreign currency translation adjustments | 6.7 | 45.4 |
Subsequent value adjustments | 3.3 | 3.6 |
Disposals | (74.2) | (42.0) |
Other | (2,015.9) | (314.5) |
As of December\u00a031 | 4,564.3 | 6,359.1 |
Cumulated impairment losses | ||
As of January 1 | (100.6) | (96.3) |
Impairment losses | (5.4) | (123.4) |
Foreign currency translation adjustments | 3.9 | (2.9) |
Other | (101.5) | 122.0 |
As of December\u00a031 | (203.6) | (100.6) |
Net carrying amount as of December, 31 | 4,360.7 | 6,258.5 |
Of which: Holding | - | - |
Imerys | 1,839.1 | 1,852.2 |
Webhelp | - | 2,128.3 |
Canyon | 309.1 | 309.1 |
Affidea | 936.3 | 889.2 |
Sanoptis | 1,236.6 | 965.9 |
GBL Capital and SIM | 39.7 | 113.9 |
As of December\u00a031, 2023, this caption is made up of EUR\u00a01,839\u00a0million of goodwill generated by Imerys\u2019 various business lines, EUR\u00a01,237\u00a0million of goodwill from the Sanoptis group acquisition, EUR\u00a0936\u00a0million of goodwill from the Affidea group acquisition, EUR\u00a0309\u00a0million of goodwill from the Canyon group acquisition and EUR\u00a040\u00a0million of goodwill on acquisitions by GBL Capital and Sienna Investment Managers (EUR\u00a01,852\u00a0million, EUR\u00a0966\u00a0million, EUR\u00a0889\u00a0million, EUR\u00a0309\u00a0million and EUR\u00a0114\u00a0million respectively as of December\u00a031, 2022). The heading \u201cOther\u201d in 2023 mainly reflects the reclassification of the goodwill of the Webhelp to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Definition of cash generating units (CGU)
GBL\u2019s management has retained the judgements made by Imerys, Canyon, Affidea, Sanoptis and GBL Capital and Sienna Investment Managers in\u00a0the\u00a0definition of CGUs.
For Imerys, as goodwill feeds into the business management indicators per operational segment monitored by the management, it is tested for impairment at the same levels as those monitored by the management, which are as follows: (i) Performance Minerals Europe, Middle East, Africa and Asia-Pacific (PM EMEA & APAC) and Performance Minerals Americas (PM Americas) within the Performance Minerals (PM) segment, (ii) Refractory, Abrasives & Construction (RAC) and (iii) Graphite & Carbon (IG&C). Bauxite production being designated as \u201cAssets held for sale\u201d (see Note 24), its assets are excluded from the scope of this test. Other than goodwill, all assets within Imerys including right-of-use assets net of lease liabilities and mining assets are covered within the scope of these tests.
For Canyon, the operational reporting and thus the goodwill management is carried out at the highest level, i.e., GoForGold Holding, which represents the only identified CGU.
For Affidea, the activity of the group is reported through a single CGU, the Affidea CGU.
For Sanoptis, the activity of the group is reported through a single CGU, the Sanoptis CGU.
For GBL Capital and Sienna Investment Managers, the goodwill is allocated to each investment.
In the table below, the carrying amount and the impairment loss of the goodwill are presented by CGU:
2023 | 2022 | |||
In EUR\u00a0million | Net carrying amount | Cumulated impairment losses | Net carrying amount | Cumulated impairment losses |
Sanoptis | 1,236.6 | - | 965.9 | - |
Performance Materials (Imerys) | 1,068.9 | (112.3) | 1,072.9 | (5.5) |
Affidea | 936.3 | - | 889.2 | - |
Refractory, Abrasives & Construction (Imerys) | 742.1 | (75.9) | 751.2 | (79.7) |
Canyon | 309.1 | - | 309.1 | - |
Others (Imerys) | 28.1 | - | 28.1 | - |
Sienna Gestion (SIM) | 18.3 | - | 18.3 | - |
Sienna Private Credit (SIM) | 14.4 | - | 14.4 | - |
Sienna Real Estate (SIM) | 7.0 | (15.4) | 7.0 | (15.4) |
Vanreusel (GBL Capital) | - | - | 59.2 | - |
Webhelp | - | - | 2,128.3 | - |
Sausalitos (GBL Capital) | - | - | 15.0 | - |
Total | 4,360.7 | (203.6) | 6,258.5 | (100.6) |
Impairment tests
In accordance with IAS 36, group companies conduct a yearly impairment test on all their CGUs to the extent that they report goodwill. The\u00a0recoverable amount of a CGU or an individual asset is the highest of the fair value less the costs of sale and the value in use. In practice, fair value can only be reliably estimated for individual assets and therefore corresponds to recent transaction prices for sales of similar assets. The\u00a0value in use is the most commonly used measurement basis for CGUs and individual assets.
For Imerys, the projected cash flows used in their impairment test as of December\u00a031, 2023 are based on the 2024 budget and the 2025-2027 plan. This central case was developed using external analyses of underlying markets. To calculate the terminal growth rate, Imerys uses the Gordon and Shapiro perpetual growth model. The discount rate used to calculate the value in use is determined using the weighted average cost of capital of groups comparable to Imerys in the industrial minerals sector. This rate, set at 8.00% for 2023 (8.00% for 2022), is adjusted for a country-market risk premium, which depending on the CGU or individual assets tested ranged from + 94 to + 125 bps in 2023 (+ 92 to + 174 bps in 2022). In 2023, the average discount rate after income tax amounted to 9.10% (8.89% in 2022). The calculations net of income tax are the same as those that would be performed with cash flows and rates before income tax, as required by applicable standards. The impairment tests carried out on the various Imerys CGUs did not result in the recognition of any impairment loss as of December\u00a031, 2023 and\u00a0December\u00a031, 2022.
Following the disposal of the High Temperature Solutions (HTS) line of business, Imerys has incorporated the assets of the PMAPAC CGU into the other two CGUs, PM Americas and PM EMEA & APAC. Had Imerys maintained the 2022 CGU structure and performed impairment tests on that basis, it would not have needed to recognize any impairment.
For Canyon, the projected cash flows used are based on the 2024-2028 plan. For the terminal value, Canyon uses the Gordon and Shapiro perpetual growth model. The definition of the discount rate is based on a study of the cost of capital of groups comparable to Canyon. It stands at 10.20% as of December\u00a031, 2023. (12.69% as of December\u00a031, 2022). The impairment test carried out on the Canyon CGU does not reveal any loss in value on the group\u2019s tested assets as of December\u00a031, 2023.
For Affidea, the cash flow projections used are taken from the 2024-2028 plan. For the terminal value, Affidea uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Affidea Group. The discount rate is 9.43% at December\u00a031, 2023. The impairment test performed on the Affidea CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023 and at December\u00a031,\u00a02022.
For Sanoptis, the cash flow projections used are taken from the 2024-2028 plan. For terminal value, Sanoptis uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Sanoptis Group. The discount rate is 6.82% at December\u00a031, 2023 (6.72% at December 31, 2022). The impairment test performed on the Sanoptis CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023.
For GBL Capital and SIM, the projected cash flows are derived from the financial budgets made by managements of each respective investment, covering a period of three to five years. The prepared projections are extrapolated and cover a period of ten years. For the terminal value, GBL Capital and SIM use an average of the Gordon and Shapiro perpetual growth model and multiple valuation method. The discount rate used to calculate the value in use is determined based on the weighted average cost of capital of groups comparable to each investment in their respective sector. This rate is adjusted by a country/market risk premium and a specific premium. The average discount rate after taxes is 11.07% in 2023 (11.80% in 2022). At GBL Capital and SIM, these annual tests did not reveal any impairment at December\u00a031, 2023 (EUR\u00a015\u00a0million in 2022).
In the table below, the weighted average discount and perpetual growth rates used to calculate the value in use are presented by CGU:
2023 | 2022 | |||
Discount rate | Perpetual growth rate | Discount rate | Perpetual growth rate | |
Performance Materials (Imerys)(1) | 9.21% | 2.00% | 9.06% | 1.92% |
Refractory, Abrasives & Construction (Imerys) | 8.98% | 2.08% | 8.64% | 1.98% |
Average rate Imerys | 9.10% | 2.10% | 8.89% | 1.68% |
Average rate Webhelp | - | - | 8.77% | 2.00% |
Average rate Canyon | 10.20% | 1.00% | 12.69% | 1.00% |
Average rate Affidea | 9.43% | 2.5% | - | - |
Average rate Sanoptis | 6.82% | 1.00% | 6.72% | 1.00% |
Average rate GBL Capital and SIM | 11.07% | 2.10% | 11.80% | 2.55% |
Sensitivity analysis
Of the assumptions used, those whose variation has the most significant impact on the financial statements are the forecasted cash flows, the discount rate and the perpetual growth rate. The group has carried out simulations to measure the impairment losses that would be recognized in the event of unfavorable changes in the assumptions used in the central scenario at December\u00a031, 2023. The changes used for these sensitivity tests are those that the group considers reasonably possible in the context of the test: a 5.00% decrease in forecasted cash flows; a 1.00% increase in discount rates; and a 1.00% decrease in perpetual growth rates (unchanged at December\u00a031, 2022). As summarized in the table below, the sensitivities performed on the central scenario show a total impairment of EUR\u00a0- 47\u00a0million in case of a 5.00% decrease of the forecasted cash flows, EUR\u00a0-\u00a045\u00a0million in case of a 1.00% increase of the discount rates and a total impairment of EUR\u00a00\u00a0million in case of a 1.00% decrease of the perpetual growth rates.
In EUR\u00a0million | Adverse changes |
Forecasted cash flows\u00a0 | (5%) |
Impairment loss\u00a0 | (46.6) |
Discount rates | + 100 bps |
Impairment loss\u00a0 | (45.0) |
Perpetual growth rates | (100 bps) |
Impairment loss\u00a0 | - |
In addition, Imerys carried out a sensitivity exercise incorporating the risks of climate change in the context of a global warming of + 2 degrees Celsius by 2050, as projected by the International Energy Agency (IEA) in its Stated Policies scenario published in the World Energy Outlook in 2019. This scenario, which is one of the three trajectories modeled by the IEA, was chosen by Imerys for this sensitivity exercise because it is reasonably possible. The risks taken into account in this model are heat waves as identified by the S&P Global Trucost Assessment, fires as identified by the FM\u00a0Global Assessment and the Angstr\u00f6m Index and droughts as identified by the Water Risk Filter of the World Wild Fund for Nature and the Deutsche Investitions- und Entwicklungsgesellschaft. The sites included in the sensitivity exercise are those whose risks are known to be uninsurable in the long term, according to the latest known information as of December\u00a031, 2023, as well as those whose risks are normally insurable but specifically known to be uninsurable due to specific climatic conditions. On this basis, Imerys has estimated for each site the foreseeable frequency of closure and the corresponding cash flow losses. As a result of this work, the sensitivity of the risks and opportunities related to climate issues does not highlight any impairment.
(1) Discount and perpetual growth rates have been restated to make them comparable following changes in CGUs in 2023
Note 11Property, plant and equipment
In EUR\u00a0million | Land and buildings | Mineral reserves | Fittings, machinery, equipment and rolling stock | Right-of-use assets | Assets under construction | Other property, plant and equipment | Total |
Gross carrying amount | |||||||
As of December 31, 2021 | 601.6 | 966.1 | 4,400.2 | 694.5 | 262.6 | 254.5 | 7,179.5 |
Investments | 13.3 | 72.1 | 119.1 | 290.2 | 255.1 | 85.4 | 835.2 |
Changes in group structure/Business combinations | 243.0 | - | 468.9 | 421.9 | 10.8 | 104.0 | 1,248.7 |
Disposals and retirements | (21.6) | (0.2) | (92.0) | (35.6) | (1.8) | (25.5) | (176.6) |
Foreign currency translation adjustments | 6.4 | 26.7 | 30.0 | (10.8) | 6.9 | (6.3) | 52.8 |
Other | (113.5) | (88.2) | (908.9) | (109.9) | (262.3) | 308.0 | (1,174.9) |
As of December 31, 2022 | 729.2 | 976.4 | 4,017.3 | 1,250.3 | 271.3 | 720.1 | 7,964.6 |
Investments | 18.4 | 61.7 | 96.6 | 165.2 | 279.6 | 54.9 | 676.5 |
Changes in group structure/Business combinations | 16.4 | 0.4 | 16.0 | 78.2 | 0.1 | 5.8 | 117.0 |
Disposals and retirements | (6.0) | (12.0) | (154.7) | (88.1) | (1.6) | (25.8) | (288.2) |
Foreign currency translation adjustments | (1.4) | (15.4) | (30.9) | (0.1) | (1.7) | (1.8) | (51.3) |
Other | 23.0 | (49.2) | 365.5 | (437.9) | (213.8) | (328.0) | (640.4) |
As of December 31, 2023 | 779.6 | 961.9 | 4,309.8 | 967.8 | 333.9 | 425.2 | 7,778.2 |
Cumulated depreciation | |||||||
As of December 31, 2021 | (277.5) | (547.0) | (3,193.0) | (229.9) | (24.1) | (158.0) | (4,429.5) |
Depreciation | (24.8) | (57.0) | (186.6) | (153.9) | (1.7) | (78.1) | (502.0) |
Impairment (losses)/reversals | (2.3) | - | 0.0 | - | - | 1.5 | (0.8) |
Disposals and retirements | 12.8 | 0.2 | 71.8 | 29.8 | 0.3 | 24.1 | 138.9 |
Foreign currency translation adjustments | (4.6) | (16.8) | (23.3) | 2.1 | (1.8) | 3.0 | (41.4) |
Changes in group structure/Other | (77.1) | 59.7 | 452.5 | (30.9) | 22.7 | (268.2) | 158.7 |
As of December 31, 2022 | (373.3) | (560.9) | (2,878.5) | (382.8) | (4.6) | (475.7) | (4,675.9) |
Depreciation | (27.1) | (50.0) | (191.0) | (138.4) | 0.7 | (44.5) | (450.2) |
Impairment (losses)/reversals | (16.0) | (33.5) | (141.6) | (5.0) | (10.8) | (2.3) | (209.2) |
Disposals and retirements | 4.1 | 11.7 | 133.8 | 41.1 | - | 25.2 | 215.9 |
Foreign currency translation adjustments | (0.1) | 8.3 | 22.0 | 1.8 | 0.1 | 1.9 | 34.1 |
Changes in group structure/Other | 0.5 | 53.6 | (159.1) | 185.9 | 1.0 | 202.5 | 284.3 |
As of December 31, 2023 | (411.9) | (570.9) | (3,214.4) | (297.2) | (13.8) | (293.0) | (4,801.2) |
Net carrying amount\u00a0 | |||||||
As of December 31, 2021 | 324.1 | 419.0 | 1,207.2 | 464.7 | 238.5 | 96.5 | 2,750.0 |
As of December 31, 2022 | 355.8 | 415.5 | 1,138.7 | 867.5 | 266.7 | 244.4 | 3,288.6 |
As of December 31, 2023 | 367.6 | 391.1 | 1,095.4 | 670.5 | 320.1 | 132.2 | 2,976.9 |
Of which: Holding | - | - | 1.0 | 10.8 | - | 1.8 | 13.6 |
Imerys | 231.5 | 391.1 | 915.7 | 151.4 | 287.3 | 41.4 | 2,018.4 |
Canyon | 2.8 | - | 21.2 | 41.9 | 0.3 | - | 66.2 |
Affidea | 123.7 | - | 104.1 | 307.1 | 29.3 | 12.3 | 576.5 |
Sanoptis | 9.6 | - | 52.8 | 139.5 | 3.2 | 75.1 | 280.2 |
GBL Capital and SIM | - | - | 0.5 | 19.9 | - | 1.6 | 22.0 |
The depreciation charges for the various periods are shown under \u201cOther operating income (expenses) from investing activities\u201d and\u201cDepreciation/amortization of property, plant, equipment and intangible assets\u2013consolidated operating activities\u201d in the consolidated income\u00a0statement.
In 2023, impairment losses net of reversals were recognized by Imerys on its property, plant and equipment in the amount of EUR\u00a0209\u00a0million (EUR\u00a018\u00a0million in 2022). Impairment losses recognized in 2023 mainly concern operations serving the paper market and the restructuring of industrial assets serving the Refractories market in China and Europe.
The item \u201cChanges in group structure/Business combination\u201d in 2023 mainly includes the reclassification of Webhelp\u2019s property, plant and equipment to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Leases
The group uses leases to obtain from the lessor the right to use certain mining, industrial and logistics equipment, as well as real estate administrative, industrial and logistical property. As of December\u00a031, 2023, the value of these rights, recognized in\u201cRight-of-use assets\u201d, amounted to EUR\u00a0670million (EUR\u00a0868\u00a0million as of December\u00a031, 2022).\u201cRight-of-use assets\u201d represent the following assets:
In EUR\u00a0million | Land and buildings | Mineral reserves | Plants, machinery, equipment and rolling stock | Assets under construction | Other property, plant and equipment | Total |
Gross carrying amount | ||||||
As of December 31, 2021 | 474.7 | - | 101.0 | - | 118.8 | 694.5 |
Investments | 222.1 | - | 41.0 | - | 27.2 | 290.2 |
Changes in group structure/Business combinations | 298.2 | - | 114.0 | - | 9.7 | 421.9 |
Disposals and retirements | (32.3) | - | (6.1) | - | 2.7 | (35.6) |
Foreign currency translation adjustments | 1.5 | - | (16.8) | - | 4.5 | (10.8) |
Other | (78.6) | - | (21.1) | - | (10.1) | (109.9) |
As of December 31, 2022 | 885.6 | - | 211.9 | - | 152.8 | 1,250.3 |
Investments | 94.7 | - | 48.6 | - | 22.0 | 165.2 |
Changes in group structure/Business combinations | 77.1 | - | 0.1 | - | 1.0 | 78.2 |
Disposals and retirements | (17.6) | - | (1.0) | - | (69.6) | (88.1) |
Foreign currency translation adjustments | (0.2) | - | 0.7 | - | (0.6) | (0.1) |
Other | (396.7) | - | (33.2) | - | (8.1) | (437.9) |
As of December 31, 2023 | 643.0 | - | 227.2 | - | 97.5 | 967.8 |
Cumulated depreciation | ||||||
As of December 31, 2021 | (129.9) | - | (51.7) | - | (48.2) | (229.9) |
Depreciation | (104.9) | - | (26.0) | - | (22.9) | (153.9) |
Impairment (losses)/reversals | 0.2 | - | (0.1) | - | (0.1) | - |
Disposals and retirements | 27.4 | - | 2.4 | - | - | 29.8 |
Foreign currency translation adjustments | (10.9) | - | 17.6 | - | (4.6) | 2.1 |
Changes in group structure/Other | (16.8) | - | (19.0) | - | 4.9 | (30.9) |
As of December 31, 2022 | (234.9) | - | (76.9) | - | (71.0) | (382.8) |
Depreciation | (91.8) | - | (29.0) | - | (17.6) | (138.4) |
Impairment (losses)/reversals | - | - | - | - | (5.0) | (5.0) |
Disposals and retirements | 13.9 | - | 0.9 | - | 26.2 | 41.1 |
Foreign currency translation adjustments | 0.9 | - | 0.2 | - | 0.8 | 1.8 |
Changes in group structure/Other | 158.0 | - | 22.0 | - | 5.9 | 185.9 |
As of December 31, 2023 | (153.8) | - | (82.8) | - | (60.7) | (297.2) |
Net carrying amount\u00a0 | ||||||
As of December 31, 2021 | 344.8 | - | 49.3 | - | 70.6 | 464.7 |
As of December 31, 2022 | 650.7 | - | 135.1 | - | 81.8 | 867.5 |
As of December 31, 2023 | 489.2 | - | 144.4 | - | 36.8 | 670.5 |
Of which: Holding | 10.8 | - | - | - | - | 10.8 |
Imerys | 88.1 | - | 37.7 | - | 25.6 | 151.4 |
Canyon | 40.6 | - | 1.3 | - | - | 41.9 |
Affidea | 202.5 | - | 104.5 | - | - | 307.1 |
Sanoptis | 131.7 | - | 0.5 | - | 7.2 | 139.5 |
GBL Capital and SIM | 15.3 | - | 0.3 | - | 4.3 | 19.9 |
The right-of-use and lease liability model is applied to all leases, except leases with a term of 12 months or less, leases of low-value assets and variable lease payments and services, which are recognized in expenses (EUR\u00a081\u00a0million in 2023 and EUR\u00a041\u00a0million in 2022). As of December\u00a031, 2023, \u201clease liabilities\u201d recognized against \u201cright-of-use assets\u201d amounted to EUR\u00a0683\u00a0million (EUR\u00a0908\u00a0million as of December\u00a031, 2022) and generated an interest expense of EUR\u00a028\u00a0million recognized in financial income (expenses). Cash payments made in 2023 totaled EUR\u00a0173\u00a0million, broken down as EUR\u00a0145\u00a0million for the principal and EUR\u00a028\u00a0million in interest, respectively in financing and operating activities in the consolidated statement of cash flows (respectively EUR\u00a0253\u00a0million, EUR\u00a0217\u00a0million and EUR\u00a036\u00a0million in 2022). The group does not generate any significant revenue from leasing the freehold assets it owns, nor from the sub-lease of assets leased.
Note 12Other non-current assets
In EUR\u00a0million | 2023 | 2022 |
Non-current financial assets | 600.9 | 75.7 |
Derivative financial instruments - Hedging | 0.2 | 9.6 |
Derivative financial instruments - Held for trading | 27.0 | - |
Long-term advance payments, loans and deposits | 563.7 | 43.6 |
Other | 10.0 | 22.5 |
Non-current non-financial assets | 41.9 | 57.2 |
Assets related to pension plans | 1.0 | 17.1 |
Other | 40.8 | 40.1 |
Total\u00a0 | 642.8 | 132.9 |
Of which: Holding | 520.7 | 0.6 |
Imerys | 41.5 | 54.9 |
Webhelp | - | 28.0 |
Canyon | 2.1 | 13.1 |
Affidea | 10.7 | 4.8 |
Sanoptis | 9.9 | 6.2 |
GBL Capital and SIM | 57.9 | 25.4 |
The heading \u201cLong-term advance payments, loans and deposits\u201d mainly includes, as at December\u00a031, 2023, the Concentrix note with maturity in September 2025 for a nominal amount of EUR\u00a0493\u00a0million and bearing a facial yearly interest rate of 2.00%.
Note 13Income taxes
13.1 Breakdown of the\u201cincome taxes\u201d heading
In EUR\u00a0million | 2023 | 2022 |
Current taxes | (88.5) | (122.3) |
For the current year | (106.6) | (126.7) |
For previous years | 18.1 | 4.5 |
Deferred taxes | (23.7) | 17.3 |
Related to the creation and reversal of temporary differences | (30.1) | 26.0 |
Related to changes in tax rates or new tax liabilities | 0.8 | 0.1 |
Related to the recognition/(use) of deferred tax assets resulting from losses from previous periods | 2.9 | (9.0) |
Other | 2.7 | 0.1 |
Total | (112.2) | (105.0) |
13.2\tReconciliation of the income tax expense for the year
In EUR\u00a0million | 2023 | 2022 |
Profit (loss) before income taxes from continuing operations | 499.7 | (35.3) |
Share of profit (loss) of equity-accounted entities | (138.5) | (35.9) |
Profit (loss) before income taxes and before share of profit (loss) of equity-accounted entities | 361.2 | (71.2) |
Taxes at Belgian rate (25.00% in 2023 and in 2022) | (90.3) | 17.8 |
Impact of different tax rates in foreign countries\u00a0 | (18.2) | (10.3) |
Tax impact of non-taxable income | 190.9 | 152.4 |
Tax impact of non-deductible expenses | (89.2) | (206.0) |
Tax impact of changes in tax rates for subsidiaries | 0.8 | (0.0) |
Tax impact of adjustments relating to previous years or previously unrecognized deferred tax assets | (1.3) | (1.1) |
Other | (104.9) | (57.8) |
Income tax (expense) for the year | (112.2) | (105.0) |
The corporate tax rate in Belgium was 25.00% in 2023, as in 2022.
The effective tax rate in 2023 stands at 31.06%, compared with - 147.47% in 2022.
As a holding company, GBL is not supposed to pay tax as most of its income \u2013 dividends and capital gains \u2013 come from profits already taxed at the level of the participation. If GBL were to be taxed in turn on the dividends/capital gains, there would be double taxation. This regime is therefore not a tax advantage granted to holding companies, but quite simply a means to avoid double taxation (application of the European Parent-Subsidiary Directive).
13.3Deferred taxes by nature in the balance sheet
Deferred tax assets | Deferred tax liabilities | |||
In EUR\u00a0million | 2023 | 2022 | 2023 | 2022 |
Property, plant, equipment and intangible assets | 112.8 | 150.7 | (693.8) | (836.5) |
Inventories, trade receivables, trade payables and provisions | 68.5 | 80.1 | (15.3) | (7.9) |
Employee benefit obligations | 45.3 | 42.3 | (0.1) | (1.1) |
Unused tax losses and credits | 51.1 | 42.6 | - | - |
Other | 133.1 | 101.2 | (56.3) | (51.2) |
Offsetting of assets/liabilities | (249.0) | (237.2) | 249.0 | 237.2 |
Total | 161.8 | 179.6 | (516.5) | (659.4) |
Of which: Holding | - | - | - | - |
Imerys | 114.5 | 110.7 | (81.2) | (99.9) |
Webhelp | - | 16.3 | - | (142.2) |
Canyon | 11.7 | 7.8 | (103.0) | (112.8) |
Affidea | 20.2 | 18.8 | (136.1) | (140.1) |
Sanoptis | 13.9 | 24.9 | (186.9) | (139.9) |
GBL Capital and SIM | 1.5 | 1.2 | (9.4) | (24.5) |
Deferred tax assets are recognized for tax losses carried forward when their recovery is deemed probable and over an expected recovery horizon not exceeding five years. The valuation of deferred tax assets recognized in this regard is based on an analysis of the loss\u2019 constitution, the probability of recurrence of losses in the future, future business prospects and national laws limiting the use of carryforward losses. As of December\u00a031, 2023, these deferred tax assets thus recognized amount to a total of EUR\u00a051\u00a0million (EUR\u00a043\u00a0million in 2022).
Beside those recognized deferred tax assets, the group has also accumulated other tax losses carried forward, with limited or unlimited lifetime, and/or tax credits that did not give rise to the recognition of\u00a0a\u00a0deferred tax asset because their recovery is considered uncertain.
The following table shows the evolution of those unrecognized tax losses carried forward and tax credits in 2023 and 2022:
In EUR\u00a0million | 2023 | 2022 | |
Unrecognized tax losses and credits | 10,767.5 | (1) | 7,186.6(2) |
Total | 10,767.5 | 7,186.6 | |
Of which: Holding | 9,767.2 | 6,360.9 | |
Imerys | 635.2 | 477.6 | |
Webhelp | - | 38.2 | |
Canyon | - | - | |
Affidea | 262.1 | 219.9 | |
Sanoptis | - | - | |
GBL Capital and SIM | 103.0 | 90.0 |
No deferred tax liabilities are recognized in relation to the temporary tax differences between the carrying amount and the tax value of investment securities if the group is able to verify the date of the temporary difference\u2019s reversal and if it is likely that this difference will not be reversed in the foreseeable future. The group estimates that the deferred tax liabilities not recognized in this regard as of December\u00a031, 2023 amount to EUR\u00a07\u00a0million (EUR\u00a08\u00a0million as of December\u00a031, 2022).
The International Tax Reform-Pillar Two Model Rules aim at ensuring that groups with revenue of EUR\u00a0750.0\u00a0million or above pay tax of at least 15.0% on the income arising in each of the countries in which they operate (\u201cGloBE Rules\u201d published by the Organisation for Economic Co-operation and Development (\u201cOECD\u201d)).
As this newly (substantively) enacted legislation is only effective as from January 1,\u00a02024, there is no current tax impact for the year ended December\u00a031,\u00a02023. In compliance with the IAS 12 Amendments published in May 2023, the group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.
The group operates in various jurisdictions which have enacted a new legislation to implement this global minimum top-up tax. The group has been working internally and together with external advisors to assess (i) if and (ii) to which extent the group would be subject to top-up tax in any of the jurisdictions. At the same time, the group is in the process of setting up standard procedures for reporting information through its various consolidated subsidiaries. The group continues to work on those assessments, to further fine-tune the analysis.
(1)\tAt the end of 2023 or 2022, depending on available information and the reliability of estimates
(2)\tAt the end of 2022 or 2021, depending on available information and the reliability of estimates
The following tables show the evolution of deferred tax assets and liabilities in 2023 and 2022:
In EUR\u00a0million | As of January 1, 2023 | Result | Statement of comprehensive income | Other | As of December 31, 2023 |
Deferred tax assets | 179.6 | (59.2) | 43.6 | (2.2) | 161.8 |
Deferred tax liabilities\u00a0 | (659.4) | 35.5 | (31.5) | 138.8 | (516.5) |
Net | (479.8) | (23.7) | 12.1 | 136.6 | (354.7) |
In EUR\u00a0million | |||||
As of January 1, 2022 | Result | Statement of comprehensive income | Other | As of December 31, 2022 | |
Deferred tax assets | 162.8 | 17.5 | 8.3 | (9.0) | 179.6 |
Deferred tax liabilities\u00a0 | (458.4) | 19.5 | 7.6 | (228.1) | (659.4) |
Net | (295.6) | 37.0 | 15.9 | (237.1) | (479.8) |
In 2023, the amounts included under \u201cOther\u201d are due to the consolidation of the new subsidiaries acquired and the deconsolidation of Webhelp.
Finally, the different taxes directly recorded under shareholders equity are shown in the following table:
In EUR\u00a0million | 2023 | 2022 |
Actuarial gains (losses) | (28.5) | 39.0 |
Of which amounts before taxes | (34.0) | 46.5 |
Of which deferred taxes | 5.5 | (7.5) |
Gains and (losses) on financial liabilities measured at fair value attributable to the acquisition of a controlling or non-controlling interest | 5.5 | (10.6) |
Of which amounts before taxes | 5.8 | (8.9) |
Of which deferred taxes | (0.3) | (1.7) |
Foreign currency translation adjustments | 57.1 | 101.2 |
Of which amounts before taxes | 52.9 | 101.6 |
Of which deferred taxes | 4.2 | (0.4) |
Cash flow hedge | 57.5 | (129.2) |
Of which amounts before taxes | 54.8 | (154.7) |
Of which deferred taxes | 2.7 | 25.5 |
Revaluation reserves | (285.9) | (3,618.6) |
Of which amounts before taxes | (285.9) | (3,618.6) |
Of which deferred taxes | - | - |
Note 14Inventories
In EUR\u00a0million | 2023 | 2022 |
Raw materials, consumables and parts | 543.0 | 670.1 |
Work in progress | 134.0 | 133.9 |
Finished goods and goods for resale | 541.1 | 459.4 |
Gross total (before writedowns) | 1,218.0 | 1,263.4 |
Writedowns of inventory | ||
As of January 1 | (52.9) | (54.5) |
Writedowns over the year | (6.6) | (27.1) |
Reversals of writedowns | 14.9 | 15.4 |
Foreign currency translation adjustments | 0.8 | (0.5) |
Other | (1.4) | 13.9 |
As of December 31 | (45.2) | (52.9) |
Net total | 1,172.8 | 1,210.6 |
Of which: Holding | - | - |
Imerys | 734.6 | 789.9 |
Webhelp | - | 5.0 |
Canyon | 417.9 | 393.6 |
Affidea | 11.4 | 9.6 |
Sanoptis | 8.9 | 5.7 |
GBL Capital and SIM | - | 6.7 |
The variation of inventories recognized as an expense is EUR\u00a042\u00a0million in 2023 (EUR\u00a097\u00a0million in 2022).
Note 15Trade receivables
In EUR\u00a0million | 2023 | 2022 |
Trade receivables | 619.1 | 1,132.6 |
Writedowns of doubtful receivables | (18.5) | (23.8) |
Net total | 600.6 | 1,108.7 |
Of which: Holding | 1.5 | 0.0 |
Imerys | 398.5 | 489.9 |
Webhelp | - | 454.1 |
Canyon | 2.9 | 3.3 |
Affidea | 113.7 | 88.3 |
Sanoptis | 71.7 | 53.8 |
GBL Capital and SIM | 12.3 | 19.3 |
Trade receivables are mainly related to Imerys. Imerys has set up a one-off factoring program for the first time in 2023 within the PM Americas, PM\u00a0EMEA & APAC and RAC sectors. Within this framework, Imerys retains an ongoing involvement in the assigned receivables through the risk of\u00a0dilution, as well as through the obligation to return cash flows received from customers to the factor. The risks and rewards of the assigned receivables have been substantially transferred to the factor, and these receivables have been derecognized. The carrying amount of these derecognized receivables is EUR\u00a062\u00a0million at December\u00a031, 2023 (EUR\u00a06\u00a0million at December\u00a031, 2022).
Trade receivables do not bear interest and generally have a 30 to 90-day maturity. At the reporting date, some of the trade receivables detailed below may be due without being impaired, for example when covered by a credit insurance contract or a guarantee.
In EUR\u00a0million | 2023 | 2022 |
Delay of no more than 1 month | 124.7 | 171.8 |
Delay of 1 to 3 months | 39.8 | 53.1 |
Delay of more than 3 months | 38.0 | 57.1 |
Total trade receivables due and not written down | 202.5 | 281.9 |
Trade receivables not due and trade receivables due and written down | 398.1 | 826.8 |
Total trade receivables, net | 600.6 | 1,108.7 |
The following table shows the change in write-downs over several years:
In EUR\u00a0million | 2023 | 2022 |
Writedowns of receivables at 1 January | (23.8) | (40.5) |
Writedowns over the year | (9.5) | (2.1) |
Utilizations | 1.6 | 1.6 |
Reversals of writedowns | 11.2 | 9.2 |
Foreign currency translation adjustments/other | 2.0 | 8.0 |
Writedowns of receivables at 31 December | (18.5) | (23.8) |
Note 16Trading financial assets
In EUR\u00a0million | 2023 | 2022 |
Money market funds | 712.4 | 841.4 |
Other trading assets | 673.1 | 28.6 |
Total | 1,385.6 | 870.0 |
Of which: Holding | 705.5 | 839.8 |
Imerys | 671.9 | 1.9 |
Webhelp | - | 12.0 |
Canyon | 8.1 | 16.3 |
Affidea | - | - |
Sanoptis | - | - |
GBL Capital and SIM | 0.0 | 0.0 |
In EUR\u00a0million | 2023 | 2022 |
Money market funds | 712.4 | 841.4 |
Other trading assets | 673.1 | 28.6 |
Total | 1,385.6 | 870.0 |
Of which: Holding | 705.5 | 839.8 |
Imerys | 671.9 | 1.9 |
Webhelp | - | 12.0 |
Canyon | 8.1 | 16.3 |
Affidea | - | - |
Sanoptis | - | - |
GBL Capital and SIM | 0.0 | 0.0 |
Note 17Cash and debt
17.1\tCash and cash equivalents
In EUR\u00a0million | 2023 | 2022 |
Current accounts | 506.7 | 1,249.0 |
Term deposits | 638.3 | 473.0 |
Treasury bonds and treasury notes | 53.0 | 46.2 |
Total | 1,198.0 | 1,768.3 |
Of which: Holding | 378.5 | 544.0 |
Imerys | 585.0 | 620.2 |
Webhelp | - | 340.0 |
Canyon | 16.7 | 25.0 |
Affidea | 78.0 | 63.0 |
Sanoptis | 52.6 | 88.0 |
GBL Capital and SIM | 87.2 | 88.0 |
As of December\u00a031, 2023 and 2022, cash was completely held in current accounts, fixed-term deposits and treasury notes with various financial institutions.
17.2Financial liabilities
In EUR\u00a0million | 2023 | 2022 |
Non-current financial liabilities | 7,177.2 | 8,714.7 |
Bonds (GBL)\u00a0 | 1,984.5 | 1,985.2 |
Convertible bonds (GBL) | 499.8 | 499.7 |
Exchangeable bonds (GBL) | 486.3 | 479.6 |
Bonds (Imerys) | 1,710.7 | 1,705.3 |
Bank borrowings (Webhelp) | - | 1,738.1 |
Bank borrowings (Canyon) | 225.3 | 225.7 |
Bank borrowings (Affidea) | 741.9 | 572.3 |
Bank borrowings (Sanoptis) | 899.0 | 602.0 |
Bank borrowings (GBL Capital) | - | 89.7 |
Lease liabilities | 574.6 | 738.8 |
Other non-current financial liabilities\u00a0 | 55.0 | 78.2 |
Current financial liabilities | 1,173.7 | 1,654.6 |
Bonds (GBL)\u00a0 | 499.8 | - |
Exchangeable bonds (GBL) | - | 447.4 |
Bank borrowings (GBL) | - | 535.3 |
Bank borrowings (Imerys) | 23.5 | 437.6 |
Bonds (Imerys) | 500.0 | - |
Lease liabilities | 108.8 | 168.9 |
Other current financial liabilities | 41.7 | 65.4 |
Bonds (issued by GBL)
On May 9, 2023, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 10-year maturity and a coupon of 4.000%. The carrying amount of this debt is EUR\u00a0496\u00a0million as of December\u00a031, 2023.
On August 30, 2022, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 7-year maturity and a coupon of 3.125%. The carrying amount of this debt is EUR\u00a0495\u00a0million as of December\u00a031, 2023.
On January\u00a021, 2021, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 10-year maturity and a coupon of 0.125%. The carrying amount of this debt is EUR\u00a0495\u00a0million as of December\u00a031, 2023.
On June 19, 2018, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 7-year maturity and a coupon of 1.875%. The carrying amount of this debt is\u00a0EUR\u00a0499\u00a0million as of December\u00a031, 2023.
During the first semester of 2017, GBL issued an institutional bond of EUR\u00a0500\u00a0million, with a coupon of 1.375% and maturing on May 23, 2024. The\u00a0carrying amount of this debt is EUR\u00a0500\u00a0million as of December\u00a031, 2023.
These issuances are intended to cover the group\u2019s general corporate purposes and lengthen the weighted average maturity of the gross debt.
Bonds convertible into GBL shares (GBL)
On March 23, 2021, GBL announced the placement by its fully-owned subsidiary Sagerpar SA (the \u201cIssuer\u201d) of EUR\u00a0500\u00a0million of bonds convertible into existing ordinary shares of GBL (the \u201cShares\u201d). The bonds are fully guaranteed by GBL (the \u201cGuarantor\u201d). This issue initially relates to approximately 4.3\u00a0million treasury shares.
The bonds do not bear interests and had at placement a maturity of 5 years (April 1, 2026), subject to early redemption. The bonds have been issued at an issue price of 101.25% of their principal amount and, unless previously redeemed, converted or purchased and cancelled, the bonds will be redeemed in cash at their principal amount at maturity (subject to the Issuer\u2019s share redemption option), which corresponds to an annual yield to maturity of - 0.25%. The initial conversion price of the bonds has been set at EUR\u00a0117.4928. The effective interest rate (including transaction costs allocated to the debt) stands at 0.02%.
The Issuer will have the option to redeem all, but not some only, of the bonds for the time being outstanding at their principal amount, at any time on or after April 16, 2024 provided that the volume-weighted average price of one Share on Euronext Brussels shall have exceeded 130% of the conversion price on each of not less than 20 trading days in any period of 30 consecutive trading days. The Issuer will have a share redemption option to deliver Shares and, as the case may be, an additional amount in cash upon redemption of the Bonds on the maturity date.
Bondholders may request the conversion of their bonds at any time since April 1, 2021 until (and including) the 45th Brussels business day (included) prior to the maturity date, subject to the Issuer\u2019s option to satisfy the conversion rights in cash, shares or a combination thereof. If the Issuer elects to satisfy conversion rights in Shares, it intends to deliver existing Shares which the Issuer holds on behalf of the Guarantor as treasury shares.
The bonds are admitted to trading on the open market (Freiverkher) of the Frankfurt Stock Exchange. The carrying amount of these bonds (excluding the option) is EUR\u00a0500\u00a0million as of December\u00a031, 2023. The option is assessed at fair value on the reporting date (EUR\u00a00\u00a0million as of December\u00a031,\u00a02023, shown under \u201cOther current financial liabilities\u201d).
Bonds exchangeable into Pernod Ricard shares (GBL)
On November 29, 2022, GBL (the \u201cIssuer\u201d) issued bonds exchangeable into existing shares of Pernod Ricard SA (\u201cPernod Ricard\u201d) for an amount of EUR\u00a0500\u00a0million. The bonds initially related to 2.0\u00a0million Pernod Ricard shares representing approximately 1% of its share capital. The bonds have, at their issuance, a maturity of 3 years (November 29, 2025), except in case of early redemption, exchange or purchase and cancellation. The bonds carry a coupon of 2.125% per annum. The bonds were issued at an issue price of 100% of their principal amount and, unless previously redeemed, exchanged, or purchased and cancelled, will be redeemed at their principal amount at maturity on November 29, 2025.
The Issuer will have the option to redeem all, but not only some, of the bonds, at their principal amount plus accrued and unpaid interest until the relevant date fixed for redemption (i) at any time on or after the date falling 2 years and 21 days after the Issue Date, provided that the value of the exchange property (being initially only Pernod Ricard shares) per bond attributable to EUR\u00a0100,000 in principal amount of bonds shall have exceeded EUR\u00a0130,000 on each of not less than 20 trading days in any period of 30 consecutive trading days; (ii) at any time, if 20% or less of the principal amount of the bonds originally issued remain outstanding; or (iii) in the event of an offer or scheme relating to the predominant equity share capital comprised in the exchange property, where the consideration as a result of such offer or scheme consists wholly of cash, all as described in the terms and conditions of the bonds.
Bondholders may request the exchange of their bonds for exchange property at any time since January\u00a09, 2023 until 40 Brussels business days before the maturity date, subject to the option of GBL to satisfy exchange rights in cash, exchange property or a combination thereof.
The bonds are admitted to trading on the open market (Freiverkher) of the Frankfurt Stock Exchange. The carrying amount of these bonds (excluding the option) is EUR\u00a0486\u00a0million as of December\u00a031, 2023. The option is assessed at fair value on the reporting date (EUR\u00a02\u00a0million as of December\u00a031,\u00a02023, shown under \u201cOther current financial liabilities\u201d).
Bonds exchangeable into GEA shares (GBL)
The bonds exchangeable into GEA shares matured on December\u00a029, 2023. They were redeemed in full in cash.
Bank borrowings (GBL)
During the second half of 2022, GBL entered into forward sales contracts with prepayment for 13.2\u00a0million Holcim shares, maturing in May 2023, and received EUR\u00a0538\u00a0million in cash. As of December\u00a031, 2022, the carrying amount of this debt was of EUR\u00a0535\u00a0million and the value of the derivative attached to these transactions, recorded under \u201cOther current liabilities\u201d, amounted to EUR\u00a077\u00a0million.
Bonds (Imerys)
Imerys further underscored its commitment in its sustainable development policy by tying its financing strategy to its environmental ambition.
Therefore, on November 29, 2023, Imerys completed an issue of bonds indexed to its sustainable development objectives (Sustainability-Linked Bonds) for a principal amount of EUR\u00a0500\u00a0million. These bonds, due to mature on November 29, 2029, bear an annual coupon of 4.75% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. These bonds, due to mature on November 29, 2029, bear an annual coupon of 4.75% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. Issued in accordance with the Sustainability-Linked Bond Principles as published by the International Capital Markets Association (ICMA), these instruments, through their framework, are indexed to a target to reduce greenhouse gas emissions by 32.7% by 2028 (tCO2e) from a 2021 base year.
This includes Scope 1 emissions (direct emissions from sources owned or controlled by Imerys) and Scope 2 emissions (indirect emissions from the production of electricity, heat or steam imported or purchased by Imerys). Failure to comply with these targets at December\u00a031, 2028 could lead to the payment of penalties corresponding to 75 basis points of the principal amount for the 2028 target.
On May 14, 2021, the group also completed an issue of bonds indexed to its sustainable development objectives (Sustainability-Linked Bonds) for a principal amount of EUR\u00a0300\u00a0million. These bonds, due to mature on July 15, 2031, bear an annual coupon of 1.00% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. Issued in accordance with the Sustainability-Linked Bond Principles as published by the International Capital Markets Association (ICMA), these instruments are indexed to a target to reduce greenhouse gas emissions by 22.9% in 2025 and 36.0% in 2030 in relation to the revenue (tCO2e/million euros) considering 2018 as the base year, as approved by the Science Based Target initiative (\u201cSBTi\u201d). Failure to achieve these targets at December\u00a031, 2025 and/or at December\u00a031, 2030 could lead to the payment of penalties corresponding to 25\u00a0basis points of the principal amount for the 2025 target and/or 50 basis points of the principal amount for the 2030 target. At\u00a0December\u00a031, 2023, Imerys had reduced the metric tons of CO2emitted per\u00a0million euros of revenue by 30.6% compared with 2018 levels (29.6% since 2018 at December\u00a031,\u00a02022).
The details of the bond issued by Imerys as of December\u00a031, 2023 are mentioned below:
Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount | |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 500.0 | 2.00% | 2.13% | Listed | 12/10/2024 | 492.6 | 500.1 |
EUR | 600.0 | 1.50% | 1.63% | Listed | 01/15/2027 | 577.6 | 606.5 |
EUR | 300.0 | 1.88% | 1.92% | Listed | 03/31/2028 | 284.2 | 303.8 |
EUR | 500.0 | 4.75% | 4.82% | Listed | 11/29/2029 | 516.0 | 500.4 |
EUR | 300.0 | 1.00% | 1.07% | Listed | 07/15/2031 | 242.3 | 300.0 |
Total | 2,112.7 | 2,210.8 |
The details of the bond issued by Imerys as of December\u00a031, 2022 are mentioned below:
Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount | |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 500.0 | 2.00% | 2.13% | Listed | 12/10/2024 | 486.4 | 499.1 |
EUR | 600.0 | 1.50% | 1.63% | Listed | 01/15/2027 | 549.2 | 604.4 |
EUR | 300.0 | 1.88% | 1.92% | Listed | 03/31/2028 | 269.0 | 303.2 |
EUR | 300.0 | 1.00% | 1.07% | Listed | 07/15/2031 | 208.3 | 298.6 |
Total | 1,512.9 | 1,705.3 |
Bank debts (Imerys)
Those debts coming from Imerys include as of December\u00a031, 2023, EUR\u00a018\u00a0million of short-term borrowings and EUR\u00a05\u00a0million of bank overdrafts (EUR\u00a0434\u00a0million and EUR\u00a04\u00a0million respectively as of December\u00a031, 2022).
Bank debts (Webhelp)
In 2022, the bank debts coming from Webhelp mainly included the \u201csenior credit agreement\u201d concluded in 2019 and its extension for the financing of the acquisition of OneLink concluded on July 30, 2021:
As of December 31, 2022 | Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 1,020.0 | 3.00% | 4.91% | Unlisted | 11/18/2026 | 1,020.0 | 1,007.0 |
GBP | 125.0 | 4.00% | 7.80% | Unlisted | 11/18/2026 | 140.9 | 139.0 |
EUR | 285.6 | 3.75% | 5.60% | Unlisted | 11/18/2026 | 285.6 | 281.0 |
USD | 350.0 | 4.50% | 8.27% | Unlisted | 11/18/2026 | 323.2 | 317.0 |
Total | 1,769.7 | 1,744.0 |
Bank debts (Canyon)
This item includes long-term bank loans of Canyon.
Bank loans (Affidea)
This item includes Affidea\u2019s long-term bank debt. It is mainly composed of two bank loans of EUR\u00a0600\u00a0million and EUR\u00a0100\u00a0million, bearing a nominal interest rate of 5.00% each and maturing on July 22, 2029. Their total carrying amount is EUR\u00a0736\u00a0million at December\u00a031, 2023.
Bank loans (Sanoptis)
This item includes the long-term bank debt of Sanoptis.
Bank loans (GBL Capital)
This caption includes the different bank loans of the operational subsidiaries of AMB III.
Lease liabilities
These liabilities mature in 2024 for a total of EUR\u00a0109\u00a0million, between 2025 and 2029 for EUR\u00a0309\u00a0million and EUR\u00a0267\u00a0million thereafter.
Other current financial liabilities
In 2022, this item mainly included Webhelp\u2019s current portion of long-term debt.
Undrawn credit lines
As of December\u00a031, 2023, the group had undrawn credit lines with various financial institutions totaling EUR\u00a03,909\u00a0million (EUR\u00a04,336\u00a0million as of December\u00a031, 2022). These credit facilities are available mainly to GBL and Imerys in the amounts of EUR\u00a02,450\u00a0million and EUR\u00a01,010\u00a0million respectively (EUR\u00a02,450\u00a0million and EUR\u00a01,010\u00a0million as of December\u00a031, 2022).
With regards to GBL, all credit lines mature over the 2027 - 2028 period. Committed credit lines do not have financial covenants, meaning that, under its credit contracts, GBL has no obligations in terms of compliance with financial ratios.
17.3\tChange of financial liabilities
The table below mentions the reconciliation in 2023 and 2022 between the financial debts included in the consolidated balance sheet and the amounts from the consolidated statement of cash flows:
In EUR\u00a0million | As of January 1, 2023 | Cash flow variation | Acquisitions/sales of subsidiaries\u00a0 | Impact of exchange rates change | Other movements | As of December 31, 2023 |
Financial liabilities - Non-current liabilities | 8,714.7 | 940.6 | (14.1) | (2.3) | (2,461.7) | 7,177.2 |
Financial liabilities - Current liabilities | 1,654.6 | (421.3) | (1.6) | 1.8 | (59.9) | 1,173.7 |
Total | 10,369.3 | 519.3 | (15.7) | (0.5) | (2,521.6) | 8,350.9 |
In EUR\u00a0million | ||||||
As of January 1, 2022 | Cash flow variation | Acquisitions/sales of subsidiaries\u00a0 | Impact of exchange rates change | Other movements | As of December 31, 2022 | |
Financial liabilities - Non-current liabilities | 6,616.2 | 1,185.1 | 1,260.6 | 32.7 | (379.9) | 8,714.7 |
Financial liabilities - Current liabilities | 1,037.5 | (49.5) | 50.2 | (9.0) | 625.4 | 1,654.6 |
Total | 7,653.7 | 1,135.6 | 1,310.8 | 23.8 | 245.5 | 10,369.3 |
\u201cOther movements\u201d in 2023 resulted mainly from the reclassification of Webhelp\u2019s debt to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation) and the repayment of GBL\u2019s bank debt by Holcim shares. In 2022, these movements were mainly due to reclassifications between non-current and current liabilities, as well as the recognition of lease liabilities.
The change in cash and cash equivalents shown in the above table is reconciled with the consolidated statement of cash flows as follows:
In EUR\u00a0million | As of December 31, 2023 | As of December 31, 2022 |
Cash flow variation | 519.3 | 1,135.6 |
Of which: proceeds from financial liabilities | 3,291.1 | 2,191.7 |
repayments of financial liabilities | (2,771.8) | (1,056.1) |
17.4\tResidual contractual maturities of financial liabilities
In EUR\u00a0million | 2024 | 2025-2029 | 2030 and beyond | |||
As of December 31, 2023 | Principal | Interests | Principal | Interests | Principal | Interests |
Non-current financial liabilities | - | 157.7 | 3,456.8 | 773.8 | 3,723.7 | 212.1 |
Other non-current financial liabilities | - | - | 796.1 | 6.6 | 285.6 | - |
Non-current derivative financial instruments | - | - | 8.6 | - | - | - |
Current financial liabilities | 1,155.2 | 70.9 | - | - | - | - |
Trade payables | 571.5 | - | - | - | - | - |
Current derivative financial instruments | 46.2 | - | - | - | - | - |
Other current financial liabilities | 545.3 | 0.2 | - | - | - | - |
Total | 2,318.2 | 228.8 | 4,261.5 | 780.4 | 4,009.3 | 212.1 |
In EUR\u00a0million | 2023 | 2024-2028 | 2029 and beyond | |||
As of December 31, 2022 | Principal | Interests | Principal | Interests | Principal | Interests |
Non-current financial liabilities | - | 252.6 | 5,953.8 | 955.8 | 2,760.9 | 158.6 |
Other non-current financial liabilities | - | - | 1,545.2 | - | - | - |
Non-current derivative financial instruments | - | - | 92.8 | - | - | - |
Current financial liabilities | 1,654.6 | 40.9 | - | - | - | - |
Trade payables | 857.4 | - | - | - | - | - |
Current derivative financial instruments | 183.3 | - | - | - | - | - |
Other current financial liabilities | 73.7 | - | - | - | - | - |
Total | 2,769.1 | 293.5 | 7,591.8 | 955.8 | 2,760.9 | 158.6 |
Note 18Other current assets
In EUR\u00a0million | 2023 | 2022 |
Current financial assets | 60.3 | 90.9 |
Derivative financial instruments held for trading | 25.5 | 17.4 |
Derivative financial instruments - Hedging | 13.7 | 35.5 |
Other | 21.1 | 38.0 |
Current non financial assets | 377.1 | 498.7 |
Tax assets other than those related to income taxes | 101.1 | 110.7 |
Other taxes and VAT to be recovered | 124.1 | 201.6 |
Deferred expenses | 57.7 | 85.1 |
Other | 94.2 | 101.2 |
Total | 437.4 | 589.5 |
Of which: Holding | 39.4 | 44.0 |
Imerys | 253.7 | 235.6 |
Webhelp | - | 179.4 |
Canyon | 29.9 | 45.7 |
Affidea | 50.9 | 26.8 |
Sanoptis | 49.2 | 29.2 |
GBL Capital and SIM | 14.4 | 28.8 |
Note 19Share capital and dividends
19.1Shares issued and outstanding and treasury shares
Number of issued shares | Of which treasury shares | |
As of December 31, 2021 | 156,355,000 | (7,944,102) |
Change | (3,355,000) | (4,278,768) |
As of December 31, 2022 | 153,000,000 | (12,222,870) |
Change | (6,300,000) | (4,708,383) |
As of December 31, 2023 | 146,700,000 | (16,931,253) |
Treasury shares
As of December\u00a031, 2023, the group held 16,931,253 treasury shares, or 11.54% of the issued capital, the acquisition cost of which is deducted from shareholders\u2019 equity; 4,255,580 of which are used to hedge the convertible bond.
The Extraordinary General Meeting of May 4, 2023 approved the cancellation of 6,300,000 own shares acquired by GBL. The capital is therefore represented by 146,700.000 shares.
In 2023, GBL acquired and sold/cancelled respectively 12,013,110 and 7,304,727 shares (to compare with respectively 8,657,745 and 4,378,977 in 2022) for an overall net amount of EUR\u00a0816\u00a0million.
Information on acquisitions of treasury shares by GBL or its subsidiaries has been published on a weekly basis on the GBL website.
19.2\tDividends
On May 15, 2023, a gross dividend of EUR\u00a02.75 per share (EUR\u00a02.75 in 2022) was paid to the shareholders.
The proposition will be made to the General Shareholders Meeting of May 2, 2024 to approve the profit distribution relating to the 2023 financial year, amounting to a total of EUR\u00a0381\u00a0million, and which will be paid as from May 13, 2024. Based on the number of shares entitled to dividends (138,364,446), the distribution relating to 2023 will correspond to a gross dividend of EUR\u00a02.75per GBL share.
Note 20Provisions
In EUR\u00a0million | Product guarantees | Environment | Legal, social and regulatory risks | Total |
As of December 31, 2021 | 9.7 | 268.9 | 219.3 | 497.9 |
Additions | 4.2 | 23.5 | 42.8 | 70.5 |
Uses | (6.0) | (13.8) | (22.9) | (42.8) |
Reversals | (1.2) | (0.9) | (14.7) | (16.8) |
Impact of discounting | - | 2.1 | 0.8 | 2.9 |
Changes in group structure/Business combinations | - | (9.1) | 14.1 | 5.0 |
Foreign currency translation adjustments | 0.1 | (0.1) | 8.4 | 8.4 |
Other | (1.2) | (9.8) | (32.4) | (43.4) |
As of December 31, 2022 | 5.6 | 260.7 | 215.3 | 481.6 |
Additions | 4.0 | 17.8 | 59.0 | 80.9 |
Uses | (2.9) | (13.1) | (21.1) | (37.1) |
Reversals | (0.4) | (1.6) | (16.5) | (18.5) |
Impact of discounting | - | 3.0 | - | 3.0 |
Changes in group structure/Business combinations | - | 5.7 | 0.7 | 6.4 |
Foreign currency translation adjustments | (0.1) | (0.7) | (2.8) | (3.6) |
Other | 0.0 | 15.7 | (20.2) | (4.4) |
As of December 31, 2023 | 6.3 | 287.5 | 214.4 | 508.2 |
Of which current provisions | 2.1 | 10.2 | 39.9 | 52.2 |
Of which non-current provisions | 4.2 | 277.3 | 174.6 | 456.0 |
The group\u2019s provisions totaled EUR\u00a0508\u00a0million as of December\u00a031, 2023 (EUR\u00a0482\u00a0million in 2022). They mainly relate to Imerys (EUR\u00a0470\u00a0million in\u00a02023 and EUR\u00a0423\u00a0million in 2022).
The probability of settlement and the amount of the obligations are estimated by the group, that generally calls upon in-house company experts to approve the key assumptions, taking into account the anticipated effects, regulatory changes where applicable, and independent counsel regarding material disputes and claims. The resulting estimates are subject to change depending on the uncertainties specific to each dispute. Independent counsel handles allegations of personal or financial damage implicating the civil liability of the group and potential breaches of contractual obligations or regulations on social, real estate and environmental issues. The provisions set aside for these risks are included in the EUR\u00a0214\u00a0million of provisions for legal, social and regulatory risks in the table of changes mentioned above. This includes in particular the balance of the provision set aside to resolve the litigation involving Imerys\u2019 talc operations in the US, the materiality of which justifies a specific development.
On February 13, 2019, the group\u2019s three North American talc subsidiaries decided to file for the protection, with immediate effect, of the special legal process of Chapter 11 under US bankruptcy law in order to permanently resolve the potential liabilities related to their historic commercial talc operations in the United States. Under Chapter 11, the group remains the legal owner of the share capital of the North American talc subsidiaries, but their businesses are under the judicial control of the relevant Federal Court for the District of Delaware (the \u201cBankruptcy Court\u201d), which oversees the continuing operations of the entities concerned as well as the conclusion and execution of a business reorganization plan that the North American talc subsidiaries have sought to negotiate with representatives of existing and future potential talc claimants. The Chapter 11 process suspended all ongoing litigation proceedings and enjoined any further claims being brought against these entities relating to past and current talc operations in the US. Given effective control of the North American talc subsidiaries was transferred on February 13, 2019 to the court to repay creditors, the assets and liabilities held by the North American talc subsidiaries were removed from the scope of consolidation of the group\u2019s financial statements from this date forward, which led to an additional expense of EUR\u00a0- 6\u00a0million. Negotiations between the North American talc subsidiaries, which were joined by Imerys Talc Italy, the group and the representatives of claimants led to the agreement on May 15, 2020 of a joint reorganization plan, which was filed on the same day with the Bankruptcy Court. The plan provides that once the necessary approvals have been obtained, the talc subsidiaries involved will come out of the Chapter 11 process and the group will be released from all existing and future talc related liabilities arising out of past operations of the talc subsidiaries involved, as such liabilities will be channeled into a dedicated trust to be established.
Imerys Talc Italy has been named in a small number of talc related lawsuits in the United States. Upon the grant of the required majority vote on the plan and requisite corporate approvals, Imerys Talc Italy also intends to file for Chapter 11 protection before the final confirmation of the plan and join the plan in order to benefit from the same comprehensive and permanent resolution of historic talc-related liabilities as the North American talc subsidiaries. Imerys Talc Italy\u2019s business will remain part of the group throughout and after the closing of the Chapter 11 proceedings.
Following the approval in January\u00a02021 by the Bankruptcy Court of the disclosure statement filed in conjunction with the plan , the plan was then submitted to the vote by the creditors and claimants against the talc subsidiaries involved. In accordance with the plan, the North American talc subsidiaries also sold their assets to Magris Resources, a Canadian investment fund, for USD 223\u00a0million on February 17, 2021. In April 2021, the plan was approved at a qualified majority exceeding the 75% required voting threshold under the applicable regulations. However, on October 13, 2021, the Bankruptcy Court issued a ruling that certain ballots cast in favor of the plan will not be counted and, as a consequence, the approval of the plan fell just short of the required 75% majority vote. As a result, the North American talc subsidiaries, the representatives of the claimants, and other stakeholders in the Chapter 11 process have engaged in a mediation approved by the Bankruptcy Court, with a successively extended timeline, to reach a revised plan that will achieve the required 75% majority approval vote.
The progress in the mediation and negotiation process to agree on a revised plan has been delayed by the distraction of the representatives of the claimants caused by the chapter 11 petition commenced by a new subsidiary of the Johnson & Johnson group - LTL (now renamed LLT) Management LLC - specifically created for this purpose. This separate and specific chapter 11 case has been highly contested judicially and involved many of the same stakeholders, including claimants, as the Chapter 11 of the North American talc subsidiaries.
After a first dismissal in January\u00a02023 by the relevant court of appeals of the LLT\u2019s chapter 11 petition, the new filing in April 2023 by LLT for the chapter 11 protection before the same bankruptcy court for the district of New Jersey was again dismissed in August 2023.
The mediation and negotiations between the mediation parties have finally succeeded in an agreement on a revised plan, together with all supporting documents required for its implementation, which were filed before the Bankruptcy Court on January\u00a031, 2024. The revised plan includes without any change the terms and conditions of the settlement with the group as embedded in the plan announced in May 2020. The key amendments to the plan as now reflected in the revised plan, relate to (i) the structure and governance of the trust applicable to the receipt and management of the financial proceeds from the various financial contributors to the revised plan, (ii) the allocation rules of the trust assets among talc claimants alleging different injuries, including the actual or potential North American talc subsidiaries\u2019 rights to insurance coverage and contractual indemnity, current and future potential settlement proceeds with third parties; and (iii) the detailed procedures applicable to the approval of the revised plan, reflecting in particular its alignment with the concurring chapter 11 process initiated in April 2021 by one of the previous owners of certain talc assets of North American talc subsidiaries (i.e the former North American mining group \u201cCyprus Mines\u201d) which is contributing to the revised plan.
The proposed revised plan is currently under review by the Bankruptcy Court for the approval of a new solicitation by the talc subsidiaries involved of claimants\u2019 votes on the revised plan. Subject to approval of the revised plan at the required 75% voting threshold, it will then undergo a confirmation procedure before the Bankruptcy Court to be followed by a final approval process before another competent federal court.
Under the terms and conditions of the settlement with the group as embedded in the plan and restated in the revised plan, the group\u2019s contribution consists of (i) a minimum cash payment of USD 75\u00a0million, (ii) the proceeds from the sale of the assets of the North American talc subsidiaries at a price of USD 223\u00a0million, and (iii) certain other components further outlined in the revised plan. These commitments primarily include certain insurance assets, financing of minor unsecured trade claims (USD 5\u00a0million) and certain excess administrative costs of the Chapter 11 process incurred by the talc subsidiaries involved up to a maximum of USD 15\u00a0million.
On the basis of the revised plan and the current state of the Chapter 11 process, at the date the group\u2019s 2023 financial results were approved, the group reviewed with the help of independent third-party experts and reiterated its prior estimate of the risk related to the resolution of the Chapter\u00a011 procedure and the forecast financial impact for the group. A provision of EUR\u00a0250\u00a0million was initially accrued in Imerys\u2019 2018 consolidated financial accounts, bearing in mind that the North American talc subsidiaries have been deconsolidated since February 13, 2019. At\u00a0December\u00a031,\u00a02023, the provision recognized in group\u2019s financial statements, which amounted to USD 115\u00a0million, i.e., EUR\u00a0104\u00a0million, was considered appropriate to cover the expected financial impact of the revised plan for the group.
Imerys\u2019 and Canyon\u2019s provisions to hedge product guarantees amount to EUR\u00a06\u00a0million and have a probable maturity ranging from 2024 to 2028.
Finally, the group (overwhelmingly Imerys) establishes provisions to hedge the environmental risks resulting from its industrial activity and provisions for the rehabilitation of mining sites at the end of their operating lifetimes. These provisions totaled EUR\u00a0287\u00a0million as of December\u00a031,\u00a02023 (EUR\u00a0261\u00a0million in 2022). The corresponding obligations are expected to mature between 2024 and 2028 for EUR\u00a079\u00a0million, between 2029 and 2038 for EUR\u00a099\u00a0million and as from 2039 for EUR\u00a0109\u00a0million.
Note 21Retirement benefits and other post-employment benefits
21.1\tDefined contribution plans
In this type of retirement plan, whose future level is not guaranteed to the beneficiaries, the employer commits to pay regular contributions to the third parties (retirement funds, insurance companies or financial institutions) on a mandatory basis (statutory or regulatory provisions) or an optional basis (supplementary retirement plan voluntarily provided by the company).
The amounts are paid during the year in which they are due. The total amount of contributions paid for defined contribution plans is EUR\u00a025\u00a0million in 2023 (EUR\u00a027\u00a0million in 2022). These plans are mostly granted to Imerys employees.
21.2\tDefined benefit plans
Characteristics of defined benefit plans
In this type of plan, the group guarantees to the beneficiaries the level of the benefit that will be paid in the future. The beneficiaries of these plans are employees who are acquiring entitlements in exchange for services rendered to the group (active beneficiaries), employees who are no longer acquiring entitlements in exchange for services rendered to the group and former employees outside the group (deferred beneficiaries), as well as\u00a0former retired employees (retired beneficiaries).
The valuation of retirement benefit obligations and other employee benefits is carried out by independent actuaries. These plans may be financed by\u00a0insurance companies (group insurance), retirement funds or independent entities. Two plans accounted for 68.0 % of the group\u2019s total commitment as of December\u00a031, 2023. These are the UK plan\u2013the Imerys UK Pension Scheme (Imerys UK) and the US plan\u2013the Imerys USA Retirement Growth Account Plan (Imerys USA).
The table below sets out their main characteristics:
Imerys UK | Imerys USA | |
Eligibility | ||
Hiring limit date | 12/31/2004 | 03/31/2010 |
Retirement age | 65 | 65 |
Description of the benefits | ||
Terms of payment | Annuity(1) | Capital(2) |
Revaluation based on the consumer price index | Yes | No |
End date of cumulated rights | 03/31/2015 | 12/31/2014 |
Regulatory framework | ||
Minimum employer funding obligation | Yes(3) | Yes(3) |
Minimum beneficiary contribution obligation | Yes | No |
Governance | ||
Trustees representing the employer | Yes | Yes |
Trustees representing beneficiaries | Yes | No |
Independent trustees | Yes | No |
Responsibility of trustees | ||
Definition of the investment strategy | Yes | Yes |
Negotiation of deficit refinancing with the employer | Yes | - |
Administrative management of benefit payments | Yes | Yes |
The duration of these two plans is 11 years for Imerys UK and 8 years for Imerys USA (respectively 13 years and 8 years as of December\u00a031, 2022).
Management of risks associated with employees benefits
Description of risks
The main issue related to the financial management of employee benefits is the control of the funding ratio of obligations, i.e., the ratio between the value of plan assets and the value of the obligations. The funding ratio of obligations may be deteriorated by a decorrelation between a change in value (generally negative) of plan assets and a change in value (generally positive) of obligations. The value of plan assets may be reduced by deteriorating the fair value of investments. The value of obligations may rise for all plans after a drop in discount rates or benefits paid as life annuities, either due to an increase in the inflation rates used to remeasure the obligations of certain plans, or due to an increase in the life expectancy of beneficiaries.
(1)\tAnnuity calculated based on number of years of service provided, annual salary on retirement and average of three last annual salaries
(2)\tPrincipal at a guaranteed interest rate (Cash Balance Plan)
(3)\tThe employer is obliged to fund each unit of service provided at 100% on the basis of a funding evaluation
Risk management
The strategy to control the obligation funding level consists firstly of optimizing the value of the plan assets. Investment strategies are therefore devised to deliver a steady return while also taking advantage of opportunities with limited or moderate risks levels. The choice of investments is specific to each plan and factors in the duration of the plan as well as minimum funding regulatory constraints.
Since 2011, Imerys has pursued a specific strategy to control the funding ratio of obligations in the UK in particular, which defines plan asset investments to match the obligation. The strategy, known as Liability Driven Investment (LDI), controls the funding ratio of the obligation by pegging cash inflows to cash outflows over the duration of the obligation. In practice, it involves structuring the portfolio of plan assets so that the cash inflows generated by the return on investments match the cash outflows generated by the payment of benefits. It hedges the risk of an increase in the obligation due to a drop in discount rates or an increase in inflation rates by covering a portion of the value of the regularly revised obligation.
Funding of employee benefits
The group funds the majority of employee benefits with investments unavailable to third parties in trusts or insurance contracts legally separate from the group. These investments, classified as plan assets, stood at EUR\u00a01,004\u00a0million as of December\u00a031, 2023 (EUR\u00a0940\u00a0million as of December\u00a031,\u00a02022). Imerys also has reimbursement rights, in other words investments held directly by the group, which came to EUR\u00a00\u00a0million as\u00a0of\u00a0December\u00a031, 2023 (EUR\u00a00\u00a0million as of December\u00a031, 2022). The obligation funding ratio therefore stood at 85.5% as of December\u00a031, 2023 (85.3% as of December\u00a031, 2022).
A provision of EUR\u00a0183\u00a0million was recognized as of December\u00a031, 2023 for the funded and unfunded plan deficit (EUR\u00a0172\u00a0million as of December\u00a031,\u00a02022), as the following table shows:
In EUR\u00a0million | 2023 | 2022 |
Obligations funded by plan assets | (1,019.5) | (969.4) |
Obligations funded by reimbursement rights | (0.3) | (0.5) |
Fair value of plan assets | 1,004.3 | 939.5 |
Restrictions on recognized assets | (13.3) | (10.9) |
Fair value of reimbursement rights | 0.2 | 0.2 |
Funding surplus (deficit)\u00a0 | (28.6) | (41.2) |
Unfunded obligations | (154.3) | (130.9) |
Assets/(provision) | (182.9) | (172.0) |
Of which: Non-current liabilities | (183.8) | (189.1) |
Non-current assets | 1.0 | 17.1 |
Fair value of plan assets
The assets held by the group to fund employee benefits generated real interest of EUR\u00a041\u00a0million in 2023 (EUR\u00a0- 333\u00a0million in 2022), as presented in the table below. In accordance with current regulations, only a normative share of this return was credited to profit or loss in 2023, amounting to EUR\u00a036\u00a0million (EUR\u00a022\u00a0million in 2022), calculated based on the discount rate used on the obligations. The surplus real return above the normative return was credited to shareholders\u2019 equity in the amount of EUR\u00a04\u00a0million in 2023 (EUR\u00a0- 355\u00a0million in 2022).
In EUR\u00a0million | 2023 | 2022 |
Balance as of January 1 | 939.5 | 1,282.3 |
Employer's contributions | 34.0 | 19.4 |
Participants' contributions | 6.5 | 1.3 |
Benefits paid | (66.4) | (74.5) |
Foreign currency translation adjustments | 14.0 | (23.3) |
Real return on assets | 40.5 | (333.0) |
Normative return (profit or loss) | 36.1 | 22.4 |
Adjustment to the real return (shareholders' equity)\u00a0 | 4.4 | (355.4) |
Changes in group structure/Business combinations | 17.5 | 74.8 |
Other movements | 18.7 | (7.4) |
Balance as of December 31 | 1,004.3 | 939.5 |
Distribution of plan assets
In % | 2023 | 2022 |
Shares | 17% | 12% |
Listed | 17% | 12% |
Unlisted | - | 0% |
Bonds | 57% | 68% |
Listed | 57% | 66% |
Unlisted | - | 2% |
Real estate | 2% | 2% |
Other | 24% | 19% |
Total | 100% | 100% |
Plan obligations \u2013 funded, unfunded and partially funded plans
In EUR\u00a0million | 2023 | 2022 |
Balance as of January 1 | 1,100.8 | 1,821.1 |
Current service costs for the period | 19.1 | 24.4 |
Interest expense | 45.4 | 26.0 |
Actuarial losses (gains) from: | 36.1 | (412.8) |
changes to demographic assumptions | (11.1) | 4.0 |
changes to financial assumptions | 30.7 | (448.0) |
experience adjustments | 16.5 | 31.3 |
Benefits paid | (72.4) | (83.7) |
Changes in group structure/Business combinations | 6.5 | 45.5 |
Foreign currency translation adjustments | 12.0 | (19.7) |
Other movements | 26.6 | (300.0) |
Balance as of December 31 | 1,174.1 | 1,100.8 |
Amounts relating to the plan recognized in comprehensive income
In EUR\u00a0million | 2023 | 2022 |
Current service costs for the period | 19.1 | 24.4 |
Interest expense\u00a0 | 45.4 | 26.0 |
Normative return on the assets of defined benefit plans | (36.1) | (22.4) |
Amounts recognized in profit or loss | 28.4 | 28.1 |
Surplus real return on assets above their normative return | (4.4) | 355.4 |
Actuarial losses (gains) from post-employment benefits due to: | 36.1 | (412.8) |
changes to demographic assumptions | (11.1) | 4.0 |
changes to financial assumptions | 30.7 | (448.0) |
experience adjustments | 16.5 | 31.3 |
Restrictions on recognized assets | 2.3 | 10.9 |
Amounts recognized in shareholders' equity - (credit)/debit | 34.0 | (46.5) |
Total | 62.4 | (18.4) |
Changes in the statement of financial position
The change in the amounts recognized in the statement of financial position is explained in the following table:
In EUR\u00a0million | 2023 | 2022 |
Amounts recognized as of January 1 | 172.0 | 532.6 |
Net expense recognized in profit or loss | 28.4 | 28.1 |
Contributions paid | (46.5) | (29.9) |
Actuarial (gains)/losses and ceiling on assets recognized in shareholders' equity | 34.0 | (46.5) |
Changes in group structure/Business combinations/Foreign currency translation adjustments and other | (5.0) | (312.3) |
Amounts recognized as of December 31 | 182.9 | 172.0 |
Of which: Holding | 1.9 | 1.4 |
Imerys | 159.6 | 144.1 |
Webhelp | - | 14.4 |
Canyon | 0.2 | 0.2 |
Affidea | 13.1 | 11.1 |
Sanoptis | 7.6 | 1.5 |
GBL Capital and SIM | 0.3 | (0.7) |
During the financial year 2023, a net debit amount of EUR\u00a028\u00a0million related to actuarial gains and losses and the ceiling on recognized assets was charged directly to comprehensive income, i.e., EUR\u00a034\u00a0million gross less EUR\u00a06\u00a0million in related taxes (a net credit amount of EUR\u00a039\u00a0million as of December\u00a031, 2022, i.e., EUR\u00a046\u00a0million gross less EUR\u00a08\u00a0million in related taxes).
Estimates
The actuarial assumptions used to value the defined benefit plans are presented below:
In % | 2023 | 2022 |
Discount rate | 1.5% - 27.0% | 0.2% - 12.0% |
Average salary increase rate | 0.8% - 24.0% | 2.0% - 36.0% |
Inflation rate | 1.5% - 6.0% | 1.2% - 36.0% |
More specifically for the two monetary zones where the largest commitments are located (the United Kingdom and the United States), the actuarial assumptions were as follows in 2023:
In % | United Kingdom | United States |
Discount rate | 4.4% | 4.5% |
Average salary increase rate | 3.0% | 3.0% |
Inflation rate | 3.1% | 3.1% |
Among these estimates, it is the discount rate that has the most significant impact on the group\u2019s financial statements.
The following table presents the impact of a reasonably estimated change in discount rates following a possible decrease (lower case) or increase (higher case) in the assumption applied to the financial statements as of December\u00a031, 2023 (actual 2023). The impact of these changes is measured on three aggregates (obligation, net interest and current service cost) in the two monetary zones in which the most significant obligations have been undertaken (the United Kingdom and the United States). The reasonably estimated change in discount rates has been set at 50 basis points, based on the weighted average change in discount rates in the United Kingdom and the United States over the last five years.
In EUR\u00a0million | Low Simulation | Central/Base scenario | High Simulation |
United Kingdom | |||
Discount rate | 3.9% | 4.4% | 4.9% |
Obligation at the reporting date | 637.9 | 605.1 | 575.1 |
Net interest in 2024 profit or loss(1)\u00a0 | (3.7) | (2.8) | (1.6) |
Current service costs in 2024 profit or loss(2) | - | - | - |
United States | |||
Discount rate | 4.0% | 4.5% | 5.0% |
Obligation at the reporting date | 201.3 | 193.8 | 186.8 |
Net interest in 2024 profit or loss(1) | (2.1) | (2.1) | (1.9) |
Current service costs in 2024 profit or loss(2) | (0.6) | (0.5) | (0.5) |
At constant scope of consolidation and all other things being equal, the amount of the contributions to the various defined retirement benefit plans is estimated at EUR\u00a027\u00a0million for 2024.
(1)\tAccretion of obligation, net of normative yield on assets
(2)\tPlan closed-frozen as of April 1, 2015
Note 22Other non-current liabilities
In EUR\u00a0million | 2023 | 2022 |
Non-current financial liabilities | 423.1 | 1,638.0 |
Debt on minority shareholders | 367.8 | 1,512.6 |
Derivative financial instruments held for trading | 9.7 | 88.7 |
Derivative financial instruments - Hedging | 6.3 | 4.1 |
Other | 39.3 | 32.6 |
Non-current non-financial liabilities | 49.3 | 486.8 |
Debt on minority shareholders | 2.0 | 445.3 |
Liabilities related to cash-settled share-based payments | 4.9 | 8.5 |
Other | 42.4 | 33.0 |
Total | 472.4 | 2,124.8 |
Of which: Holding | 7.2 | 45.4 |
Imerys | 18.7 | 24.1 |
Webhelp | - | 1,732.1 |
Canyon | - | - |
Affidea | 56.2 | 28.4 |
Sanoptis | 355.5 | 262.2 |
GBL Capital and SIM | 34.8 | 32.6 |
As of December\u00a031, 2023, the debt on minority shareholders is mainly related to Sanoptis (EUR\u00a0312\u00a0million as of December\u00a031, 2023 and EUR\u00a0250\u00a0million as of December\u00a031, 2022). This represents the discounted value as at the reporting date based on the expected individual exercise dates of the put options of the minority shareholders.
The Sanoptis business model specifies, among other things, that the lead doctors in their clinics do not leave the company as shareholders or doctors in the event of a sale of clinics to Sanoptis. The remaining shares held by the doctors are subject to specific minimum holding periods. Call and put options on such shares are negotiated between Sanoptis and the sellers at the time of acquisitions, so that after expiry of the holding periods and upon fulfilment of certain contractually agreed conditions, the remaining shares of the minority shareholders can be sold to Sanoptis by executing the put options at purchase prices determined at the time of the original transactions. The sales price is generally determined based on the average EBITDA of a specific period under review for the target company and an individually agreed multiple on this.
As of December\u00a031, 2022, the debt on minority shareholders was mainly related to Webhelp. The 2 founders and some members of the staff of the Webhelp group were minority shareholders of Webhelp and hold put options towards Sapiens S\u00e0rl (sub-subsidiary of GBL and dedicated investment vehicle of the Webhelp group) on all their shares, which could be exercised at certain predefined periods. Consequently, a debt on minority shareholders was recognized on the balance sheet for a total amount, as of December\u00a031, 2022, of EUR\u00a01,675\u00a0million, out of which:
the debt towards the founders (EUR\u00a01,113\u00a0million as of December 31, 2022, included under \u201cNon-current financial liabilities\u201d), with changes in value recorded under \u201cFinancial income and expenses from operating activities\u201d ;
the debt towards members of the staff (EUR\u00a0563\u00a0million as of December 31, 2022, included under \u201cNon-current financial liabilities\u201d for a part and \u201cNon-current non-financial liabilities\u201d for another part), with changes in value recorded under \u201cOther operating income and expenses from operating activities\u201d.
As a consequence of the sale of Webhelp as of September 25, 2023, the debt towards the founders and the members of the staff was extinguished, without any impact on GBL\u2019s cash, at the closing of the transaction. The impact of the reversal was included in the gain on deconsolidation of Webhelp.
Note 23Other current liabilities
In EUR\u00a0million | 2023 | 2022 |
Current financial liabilities | 122.6 | 257.0 |
Derivative financial instruments held for trading | 5.1 | 69.8 |
Derivative financial instruments - Hedging | 41.1 | 113.5 |
Other | 76.3 | 73.7 |
Current non-financial liabilities | 606.9 | 1,006.1 |
Social security liabilities | 203.0 | 344.9 |
Tax liabilities other than those related to income tax | 63.1 | 168.6 |
Other | 340.8 | 492.6 |
Total | 729.4 | 1,263.1 |
Of which: Holding | 76.0 | 153.6 |
Imerys | 396.8 | 373.3 |
Webhelp | - | 518.0 |
Canyon | 27.0 | 33.2 |
Affidea | 152.9 | 129.5 |
Sanoptis | 44.8 | 26.1 |
GBL Capital and SIM | 31.9 | 29.4 |
The other current non-financial liabilities mainly include a debt related to fixed assets at Imerys\u2019 level for EUR\u00a0109\u00a0million.
Note 24Assets and liabilities associated with assets held for sale and discontinued operations
Imerys
Imerys has entered into exclusive negotiations with the Mytilineos Group to divest its bauxite production business in Greece, with an agreement signed on September 4, 2023, for an enterprise value of EUR\u00a010\u00a0million. The assets involved in this transaction, as well as their related liabilities, have been classified as assets and liabilities held for sale and depreciation has ceased to be recognized as from this date.
Contributions from operations have been presented under separate headings in the consolidated balance sheet, and are shown in the table below:
In EUR\u00a0million | December 31, 2023 |
Assets held for sale | 38.5 |
Non-current assets\u00a0 | 23.4 |
Current assets | 15.1 |
Liabilities associated with assets held for sale | 26.0 |
Non-current liabilities\u00a0 | 16.1 |
Current liabilities\u00a0 | 9.9 |
Finally, in September 2022, Imerys\u2019 Performance Minerals business line received an offer to purchase a set of mining and industrial assets serving the paper market in America, Europe and Asia. The assets concerned by this transaction and the related liabilities were designated as assets and liabilities held for sale as from that date, and depreciation ceased to be recognized. At December\u00a031, 2022, the EUR\u00a0110\u00a0million share of Performance Minerals goodwill allocated to this activity had been written down by EUR\u00a0108\u00a0million. In the first half of 2023, an additional impairment loss of EUR\u00a010\u00a0million net of tax was recognized on goodwill and depreciable assets. In the second half of 2023, as disposal had become highly unlikely, the assets involved in this transaction and the related liabilities ceased to be presented as assets and liabilities held for sale. Unrecognized depreciation since September 2022 has been recognized in the income statement in the amount of EUR\u00a016\u00a0million. In addition, the share of the impairment loss on depreciable assets recognized in June was reversed, amounting to EUR\u00a08\u00a0million, net of tax.
GBL Capital
AMB III has entered into an agreement in December\u00a02023 with Paul-Emmanuel and Roel Vanreusel who, after a period of transformational growth for Beltaste-Vanreusel during its partnership with Apheon, will acquire 100% of the company\u2019s shares. The company is a major producer of frozen snacks in Belgium and the Netherlands. The transaction was finalized in January\u00a02024. The table below shows the balance sheet contributions of this company:
In EUR\u00a0million | December 31, 2023 |
Assets held for sale | 134.7 |
Non-current assets\u00a0 | 109.5 |
Current assets | 25.1 |
Liabilities associated with assets held for sale | 65.8 |
Non-current liabilities\u00a0 | 48.4 |
Current liabilities\u00a0 | 17.5 |
Note 25Financial risks management and sensitivity analysis
Considering the specific nature of each of the entities consolidated in the group\u2019s financial statements and their widely differing activities (financial for GBL and operational for Imerys, Canyon, Affidea and Sanoptis), each entity manages risks independently.
The main risks identified at group level are the foreign exchange risk, the stock exchange risk, the interest rate risk, the energy price risk, the market liquidity risk, the conversion of financial statements risk and the credit risk (mainly for Imerys).
Foreign exchange riskis defined as the risk whereby a cash flow labeled in foreign currency may be subject to a deterioration caused by an unfavorable change in its counterpart in functional currency. The group is exposed to foreign exchange risk through:
(i)\tThe impact it can have on the value of its portfolio through investments quoted in foreign currencies (accounted for as other equity investments and trading assets), as well as through dividend flows it receives. As of December\u00a031, 2023, GBL was primarily exposed to CHF and USD. A 10% appreciation/depreciation in the Euro versus its end-of-year rate for all currencies used by the group would have had an impact of EUR\u00a0- 494\u00a0million and EUR\u00a0494\u00a0million on shareholders\u2019 equity and EUR\u00a0- 132\u00a0million and EUR\u00a0132\u00a0million on the annual income statement. These calculations only concern statements of financial position owned by the group and does not take into account the impact of the appreciation/depreciation of these currencies on the market price of the underlying assets.
(ii)\tThe impact on the underlying elements of its net financial debt, i.e., before foreign exchange rates derivatives as of December\u00a031, 2023. A 10% downward or upward variation of the Euro against other foreign currencies would generate a variation of EUR\u00a042\u00a0million and EUR\u00a0- 42\u00a0million on\u00a0net financial debt. A 10% decrease/increase in foreign currency exchange rates on the portfolio of derivative instruments held as of December\u00a031,\u00a02023 for highly probable future transactions of purchases and sales in foreign currencies would have an impact on equity (effective portion of derivative instruments qualified as cash flow hedges) of EUR\u00a00\u00a0million and EUR\u00a00\u00a0million respectively and on the income statement (ineffective portion of derivative instruments qualified as cash flow hedges of cash and derivative instruments not eligible for hedge accounting) of\u00a0EUR\u00a00\u00a0million and EUR\u00a00\u00a0million.
The transactions performed by the group are accounted for, wherever possible, in the functional currency of the entity that carries out the transaction. When it is not possible to record a transaction in the functional currency of the entity, the transactional currency risk may be hedged on an individual basis using forwards, swaps or options. The corresponding instruments qualify as cash flow hedges.
Stock exchange riskis defined as the risk whereby the portfolio of the group (other equity investments and trading assets) may be influenced by an unfavorable change of market prices. The group is exposed, due to the very nature of its activities, to market fluctuations of its portfolio. The volatility of the financial markets, moreover, can have an impact on the share price of GBL. As of December\u00a031, 2023, a 10% appreciation/ depreciation in the market price of all portfolio investments in listed companies as well as on the derivative instruments (options, exchangeable and convertible bonds) would have an impact of EUR\u00a0999\u00a0million and EUR\u00a0- 999\u00a0million on shareholders\u2019 equity and of EUR\u00a0-\u00a02\u00a0million and EUR\u00a02\u00a0million on the annual income statement.
Interest rate riskis defined as the risk whereby the interest flow related to financial liabilities, on the one hand, and gross cash, on the other hand, may be deteriorated by an unfavorable change of interest rates. Regarding financial liabilities, a modification of interest rates has a limited impact on GBL\u2019s profit (loss) because the vast majority of its financial liabilities is issued at fixed interest rates. As regards cash, GBL has chosen to continue to give priority to liquidity while limiting counterparty risk. Cash is therefore invested on a very short-term basis so that it can be mobilized at any time to contribute to the group\u2019s flexibility and security in the event of investment or the materialization of external risks. Imerys\u2019 strategy focuses on obtaining finances mainly in euros, which is the most accessible fixed-rate financial resource. Medium-term fixed-rate bond issues can be converted to floating rates using interest rate swaps. Given the expected trend in interest rates in 2023, the group has fixed the interest rate for part of its future financial debt on various terms. At Canyon, Affidea and Sanoptis, bank debt is also at variable rates, and in order to protect itself against rising interest rates, those companies entered into interest rate hedging instruments in 2023.
In terms of sensitivity, a decrease or increase of interest rates (Euribor, SONIA and SOFR) of 0.5% would respectively have an impact on the net financial debt of the group of EUR\u00a0- 6\u00a0million and EUR\u00a06\u00a0million.
Energy price risk is the risk whereby the cash outflow due in relation to energy purchases may be subject to a deterioration by a rise in its market price. Imerys is exposed to the price risk of energy used in the production cycle of its activities, mainly natural gas, electricity and, to a lesser extent, coal. To manage energy price risk, Imerys sources its energy from a variety of geographical locations and sources. The group aims at impacting the increase in energy onto the selling price of its products. Energy price risk is hedged using forward and option contracts, instruments that qualify as cash flow hedges. In terms of sensitivity, a 10% decrease or increase of natural gas and Brent prices on the portfolio of derivative instruments held at December\u00a031, 2023 with respect to highly probable future purchases of natural gas and Brent would have an impact on equity (effective portion of cash flow hedges) of EUR\u00a0- 3\u00a0million and EUR\u00a03\u00a0million respectively, and on the income statement (ineffective portion of cash flow hedges and non-hedge derivative instruments) of EUR\u00a00\u00a0million and EUR\u00a00\u00a0million.
Market liquidity riskis the risk whereby the group would not be in a position to meet the repayment obligations of its financial liabilities due to the non-renewal of a non-confirmed financial resource (short-term negotiable securities, bank facility and accrued interests, or other debt and facilities). Group cash flow forecasts between the drawdown date and the repayment date of these debts must allow the group to honor its repayments at maturity. The debt schedule of debts is presented in Note 17.
Conversion riskof financial statements is a form of foreign exchange risk whereby the value in euros of the financial statements of a foreign operation may be subject to a deterioration due to an unfavorable change in the foreign exchange rate of the functional currency of that business. The group, mainly through Imerys, hedges part of its net investments in foreign operations by granting loans specifically allocated to financing the operations in the long term and by controlling the proportion of its financial debt stated in foreign currencies. The exchange rate differences generated by the loans and borrowings qualified as hedges of net investments in foreign operations are recognized in equity so as to neutralize, to a certain extent, the translation gains or losses on hedged net investments. In terms of sensitivity, a 10% decrease or increase in foreign exchange rates on the portfolio of foreign exchange swaps held at December\u00a031, 2023 with respect to hedges of net investments in foreign operations would have an impact on equity (effective portion of hedges of net investments in foreign operations) of EUR\u00a0- 77\u00a0million and EUR\u00a063\u00a0million respectively, and on the income statement (ineffective portion of hedges of net investments in foreign operations and non-hedge derivative instruments) of EUR\u00a00\u00a0million and EUR\u00a00\u00a0million.
Credit riskis the risk that a group debtor (mainly Imerys) does not reimburse their debt at the agreed due date. This risk mainly affects trade receivables. Credit risk is monitored at entity level by analyzing the breakdown of receivables by maturity. Generally due between 30 and 90 days, the\u00a0group\u2019s receivables are not covered by any material financing component. Group entities may hedge credit risk through credit insurance contracts or warranties (see Note 15).
Note 26Derivative financial instruments
26.1 Fair values of short-term and long-term derivative financial instruments
The fair values of the derivative financial instruments held as of December\u00a031, 2023 and 2022 are shown in the following table:
In EUR\u00a0million | 2023 | 2022 |
Assets | 66.4 | 62.5 |
Of which non-current assets | 27.2 | 9.6 |
Of which current assets | 39.2 | 52.9 |
Composed of: | ||
Forwards, futures and currency swaps - Derivative instruments held for trading | 1.1 | 17.3 |
Forwards, futures and currency swaps - Hedging | 12.4 | 38.7 |
Interest rate hedging instruments - Derivative instruments held for trading | 24.4 | - |
Futures and commodities options - Hedging | 1.5 | 6.5 |
Call and put options on shares - Derivative instruments held for trading | 27.0 | - |
Liabilities | (62.2) | (276.1) |
Of which non-current liabilities | (16.0) | (92.8) |
Of which current liabilities | (46.2) | (183.3) |
Composed of: | - | - |
Forwards, futures and currency swaps - Derivative instruments held for trading | (2.5) | (0.3) |
Forwards, futures and currency swaps - Hedging | (2.1) | (15.0) |
Interest rate hedging instruments - Derivative instruments held for trading | (7.4) | - |
Interest rate hedging instruments - Hedging | (17.5) | - |
Futures and commodities options - Hedging | (27.8) | (25.9) |
Forwards on shares - Hedging | - | (76.7) |
Call and put options on shares - Derivative instruments held for trading | (4.9) | (158.2) |
Net position | 4.2 | (213.7) |
Forwards, futures and currency swaps | 8.9 | 40.7 |
Interest rate hedging instruments | (0.5) | - |
Forwards on shares | - | (76.7) |
Futures and commodities options | (26.3) | (19.4) |
Call and put options on shares | 22.1 | (158.2) |
The following table shows the maturity of the cash flow hedge derivatives for the reporting periods ended December\u00a031, 2023 and 2022:
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 10.3 | 10.1 | 0.2 | - |
Interest rate hedging instruments | (17.5) | (11.5) | (6.0) | - |
Futures and commodities options | (26.3) | (26.0) | (0.3) | - |
Total as of December 31, 2023 | (33.5) | (27.4) | (6.1) | - |
Forwards, futures and currency swaps | 23.7 | 18.3 | 5.4 | - |
Futures and commodities options | (19.4) | (19.4) | - | - |
Forwards on shares | (76.7) | (76.7) | - | - |
Total as of December 31, 2022 | (72.4) | (77.8) | 5.4 | - |
26.2Change in fair value of derivative instruments
The following table shows the changes in the fair value of hedging derivative instruments between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative instruments - hedging | ||
As of January 1 \u2013 net derivatives position\u00a0 | (72.4) | 73.6 |
Increase (decrease) recognized in profit or loss | (20.9) | (1.7) |
Increase (decrease) recognized in shareholders' equity | 54.8 | (154.7) |
Changes in group structure/Business combinations/Other | 5.0 | 10.4 |
As of December 31 \u2013 net derivatives position | (33.5) | (72.4) |
The following table shows the changes in the fair value of derivative instruments held for trading between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative financial instruments held for trading | ||
As of January 1 \u2013 net derivatives position\u00a0 | (141.2) | (206.2) |
Increase (decrease) recognized in profit or loss | 105.0 | 98.7 |
Increase (decrease) recognized in shareholders' equity | - | - |
Changes in group structure/Business combinations/Other | 73.9 | (33.6) |
As of December 31 \u2013 net derivatives position | 37.7 | (141.2) |
26.3\tNotional underlying amounts of derivative financial instruments
In EUR\u00a0million | 2023 | 2022 |
Assets\u00a0 | 1,701.9 | 2,140.4 |
Composed of: | ||
Forwards, futures and currency swaps | 616.1 | 2,063.7 |
Interest rate hedging instruments | 978.4 | - |
Futures and commodities options | 80.4 | 76.7 |
Call and put options on shares | 27.0 | - |
Liabilities | 3,548.2 | 4,043.6 |
Composed of: | ||
Forwards, futures and currency swaps | 1,292.9 | 1,715.9 |
Interest rate hedging instruments | 1,070.6 | - |
Forwards on shares | - | 537.6 |
Futures and commodities options | 24.8 | 21.7 |
Call and put options on shares | 1,159.9 | 1,768.4 |
26.4\tMaturity of notional underlying amounts of derivative financial instruments
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 1,909.0 | 1,898.4 | 10.6 | - |
Interest rate hedging instruments | 2,048.9 | 1,428.9 | 620.0 | - |
Futures and commodities options | 105.2 | 101.2 | 4.0 | - |
Call and put options on shares | 1,186.9 | 159.9 | 1,000.0 | 27.0 |
Total as of December 31, 2023 | 5,250.0 | 3,588.4 | 1,634.6 | 27.0 |
Forwards, futures and currency swaps | 3,779.6 | 3,067.9 | 107.1 | 604.6 |
Forwards on shares | 537.6 | 537.6 | - | - |
Futures and commodities options | 98.4 | 98.4 | - | - |
Call and put options on shares | 1,768.4 | 689.6 | 1,078.8 | - |
Total as of December 31, 2022 | 6,184.0 | 4,393.5 | 1,185.9 | 604.6 |
Note 27Stock options
GBL
Cash-settled plans
GBL issued since 2013 several incentive plans concerning the shares of a (sub-)subsidiaries of the group. These options were granted to the staff and the Executive Management of GBL. These options give the right to the beneficiary to acquire a share for an exercise price, corresponding with the value of the underlying share at the moment of the granting of the options. These options can be exercised during a period of time. The options will be settled in cash or in shares. These plans are treated as cash-settled plans. The characteristics of the plans not yet fully exercised or expired are included in the table below:
FINPAR IX S.R.L.(1) | FINPAR VIII S.R.L.(1) | FINPAR VII S.R.L.(1) | FINPAR VI S.R.L. | FINPAR V S.R.L. | FINPAR IV S.A. | FINPAR III S.A. | FINPAR II S.A. | URDAC S.A. | LTI TWO S.A. | |
Issue date | May 11, 2023 | May 9, 2022 | November 22, 2021 | December 15, 2020 | June 12, 2020 | May 10, 2019 | May 7, 2018 | May 8, 2017 | May 5, 2015 | April 29, 2014 |
Number of accepted options | 1,697,860 | 1,819,341 | 1,273,215 | 346,359 | 335,729 | 303,380 | 337,146 | 348,424 | 257,206 | 223,256 |
Exercise price (in EUR) | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 |
Vesting date | May 11, 2026 | May 9, 2025 | November 22, 2024 | December 15, 2023 | June 12, 2023 | May 10, 2022 | May 7, 2021 | May 8, 2020 | May 5, 2018 | April 29, 2017 |
Expiry date | May 10, 2033 | May 8, 2032 | November 21, 2031 | December 14, 2030 | June 11, 2030 | May 9, 2029 | May 6, 2028 | May 7, 2027 | May 4, 2025 | April 28, 2024 |
Valuation assumptions\u00a0 | ||||||||||
Valuation method | Intrinsic value | Intrinsic value | Intrinsic value | Intrinsic value | Intrinsic value | Intrinsic value | Intrinsic value | Intrinsic value | Monte Carlo | Monte Carlo |
Implicit volatility of the underlyings | n.r. | n.r. | n.r. | n.r. | n.r. | n.r. | n.r. | n.r. | 17.22%\u00a0- 19.17% | 16.33%\u00a0- 29.62% |
Fair value per unit (in EUR) | n.r. | n.r. | n.r. | 2.05 | 6.85 | 0.00 | 0.00 | 0.00 | 8.62 | 15.11 |
Debt accounted for (in EUR\u00a0million) | 0.6 | 0.7 | 0.5 | 0.7 | 2.2 | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 |
The table of changes is shown below:
2023 | 2022 | |||
Number | Exercise price | Number | Exercise price | |
\u00a0(in EUR) | \u00a0(en EUR) | |||
As of January 1 | 4,770,946 | 10.00 | 1,678,790 | 10.00 |
Exercised by: | ||||
Executive Management | - | 10.00 | - | 10.00 |
Employees | (12,021) | 10.00 | (400) | 10.00 |
Granted to: | ||||
Executive Management | 337,500 | 10.00 | 675,000 | 10.00 |
Employees | 1,360,360 | 10.00 | 2,417,556 | 10.00 |
As of December 31 | 6,456,785 | 10.00 | 4,770,946 | 10.00 |
Plan LTI Two | 3,249 | 10.00 | 3,249 | 10.00 |
Plan URDAC | 6,328 | 10.00 | 6,328 | 10.00 |
Plan FINPAR II | 348,424 | 10.00 | 348,424 | 10.00 |
Plan FINPAR III | 337,146 | 10.00 | 337,146 | 10.00 |
Plan FINPAR IV | 303,180 | 10.00 | 303,180 | 10.00 |
Plan FINPAR V | 322,628 | 10.00 | 334,649 | 10.00 |
Plan FINPAR VI | 345,414 | 10.00 | 345,414 | 10.00 |
Plan FINPAR VII | 1,273,215 | 10.00 | 1,273,215 | 10.00 |
Plan FINPAR VIII | 1,819,341 | 10.00 | 1,819,341 | 10.00 |
Plan FINPAR IX | 1,697,860 | 10.00 | - | - |
In 2023, the total cost for the group with respect to the stock option plans was recorded in operating expenses and amounted to EUR\u00a0- 3\u00a0million (EUR\u00a0-\u00a08\u00a0million in 2022), of which EUR\u00a0- 1\u00a0million for the Executive Management (EUR\u00a0- 1\u00a0million in 2022). At the end of 2023, 27.31% of the options were vested, but only 5.15% were exercisable.
(1)\tOf which Type A and Type B options
Equity-settled plans
GBL has issued six incentive plans from 2007 to 2012 based on GBL shares for its Executive Management and staff. These plans are treated as equity- settled plans. At December\u00a031, 2023, all these plans had been exercised or had expired.
The table of changes is shown below:
2023 | 2022 | |||
Number | Exercise price | Number | Exercise price | |
\u00a0(in EUR) | \u00a0(en EUR) | |||
As of January 1 | 30,613 | 77.40 | 52,426 | 81.17 |
Exercised by: | ||||
Executive Management | - | - | - | - |
Employees | (11,332) | 77.40 | (21,813) | 86.46 |
Expired: | ||||
Executive Management | - | - | - | - |
Employees | (19,281) | 77.40 | - | - |
As of December 31 | - | 77.40 | 30,613 | 77.40 |
2008 plan | - | 77.40 | 30,613 | 77.40 |
Imerys
Imerys had put in place an incentive plan for the group\u2019s executives and some of the managers and employees that entailed the granting of options on Imerys shares. Each option entitled the holder to subscribe shares at a predetermined fixed price. The right to exercise the options was generally acquired three years after the date of the granting and the options had a maximum life of ten years. All these plans were exercised or had expired by December\u00a031, 2022.
In addition, Imerys grants stock option plans, which, if exercised, result in the subscription of shares newly issued for this as well as free shares acquired in the market. In 2023, Imerys granted 446,300 free performance shares (432,950 in 2022). As of December\u00a031, 2023, the total employee expenses recognized in the Imerys group\u2019s financial statements with respect to stock option and free share plans for the year amounted to EUR\u00a010\u00a0million (EUR\u00a014\u00a0million in 2022).
Number of free shares | Maturity | Turnover rate | Average dividend rate | Performance conditions | Fair value | Total cost per plan | 2023 cost of plans | 2022 cost of plans | |
In EUR | In EUR\u00a0million | In EUR\u00a0million | In EUR\u00a0million | ||||||
2019 | 427,500 | 3 years | 33.80% | 3.00% | 54.90% | 35,75 | (5.4) | - | (0.2) |
2020 | 154,150 | 3 years | 9.80% | 3.10% | 100.00% | 36,71 | (4.5) | 0.2 | (1.4) |
2020 | 457,700 | 3 years | 6.00% | 3.10% | 100.00% | 26,75 | (11.1) | (0.5) | (4.1) |
2021 | 482,200 | 3 years | 6.90% | 3.20% | 100.00% | 38,85 | (16.8) | (4.5) | (5.7) |
2022 | 432,950 | 3 years | 10.00% | 3.30% | 89.70% | 27,36 | (9.6) | (2.9) | (2.1) |
2023 | 446,300 | 3 years | 10.00% | 4.00% | 94.10% | 30,73 | (11.6) | (2.6) | - |
Cost of plans recognized in employee expenses | (10.3) | (13.5) | |||||||
Settlement in equity instruments | (10.3) | (13.5) |
Note 28Earnings per share
28.1 Earnings per share (group\u2019s share)
In EUR\u00a0million | 2023 | 2022 |
Basic | ||
Consolidated income for the period (including discontinued operations) | 1,723.2 | (584.7) |
Consolidated income for the period (excluding discontinued operations) | 397.5 | (240.5) |
Diluted | ||
Consolidated income for the period (including discontinued operations) | 1,716.0 | (614.2) |
Consolidated income for the period (excluding discontinued operations) | 390.3 | (270.0) |
28.2\tNumber of shares
2023 | 2022 | |
Issued shares at beginning of year | 153,000,000 | 156,355,000 |
Treasury shares at beginning of year | (12,222,870) | (7,944,102) |
Weighted changes during the period | (469,341) | (1,693,739) |
Weighted average number of shares used to determine basic earnings per share | 140,307,789 | 146,717,159 |
Impact of financial instruments with a diluting effect: | ||
Convertible bonds | 4,255,580 | 4,255,580 |
Weighted average number of shares used to determine diluted earnings per share | 144,563,369 | 150,972,739 |
28.3\tSummary of earnings per share
In EUR\u00a0per share | 2023 | 2022 |
Basic\u00a0 | 12.28 | (3.99) |
Continuing operations | 2.83 | (1.64) |
Discontinued operations | 9.45 | (2.35) |
Diluted\u00a0 | 11.87 | (4.07) |
Continuing operations | 2.70 | (1.79) |
Discontinued operations | 9.17 | (2.28) |
Note 29Financial instruments
Fair value
The fair value of a financial instrument is the amount that would be received on selling the asset or paid on transferring a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is a presumption that an entity is a going concern without any intention or need to liquidate, to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Fair value is not, therefore, the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distressed sale.
To reflect the importance of inputs used when measuring at fair value, the group classifies these valuations according to a hierarchy composed of\u00a0the\u00a0following levels:
level 1: listed prices (non-adjusted) on active markets for identical assets or liabilities;
level 2: inputs, other than the listed prices included in level 1, that are observable for the asset or liability concerned, either directly (i.e., prices) or\u00a0indirectly (i.e., derived from prices); and
level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).
The group\u2019s financial instruments very largely belong to classification levels 1 and 2. The financial assets measured at level 3 fair value are not significant compared to the other asset classes (15.07% as of December\u00a031, 2023 and 12.93% as of December\u00a031, 2022).
Measurement techniques
The objective of using a valuation method is to establish what the transaction price would have been on the measurement date in an arm\u2019s-length exchange and motivated by normal business considerations.
Techniques used to measure the fair value of level 2 financial instruments:
Exchangeable or convertible bonds
The exchangeable or convertible bonds issued by the group are considered to be hybrid instruments, i.e., instruments including a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds, taking into account the risk associated with GBL (credit spread). At each reporting date, the value of the bond component is recalculated, taking into account the change in the risk-free rate and GBL\u2019s credit spread, and the difference in relation to the price of the exchangeable or convertible bond observed on the Frankfurt Stock Exchange\u2019s Euro MTF market is taken as the new value of the derivative component. The change in this value in relation to the previous reporting date is recognized in profit or loss.
Other level 2 financial instruments
The fair value of derivative instruments not associated with exchangeable or convertible bonds is taken from a model that uses observable data, in other words the quotes on the reporting date provided by third-parties operating on the financial markets. These valuations are adjusted for the counterparties\u2019 credit risk and the credit risk specific to Imerys or GBL. Accordingly, if the market value of the derivative is positive (derivative asset), its fair value incorporates the likelihood of the counterparty defaulting (Credit Value Adjustment or CVA). If the derivative\u2019s market value is negative (derivative liability), its fair value factors in the likelihood of Imerys or GBL defaulting (Debit Value Adjustment or DVA). These adjustments are measured based on the spreads of the bonds in circulation on the secondary market, as issued by Imerys, GBL and their counterparts.
Techniques used to measure the fair value of level 3 financial instruments:
Equity investments
The investments in unlisted companies are valued internally at their fair value on a quarterly basis, based on a specific valuation method or a combination of valuation methods, the specific valuations the method of combination of methods being consistent from an closing to another. Methodologies are aligned across the portfolio, though with different weights for respective methods depending on the company. Valuation are approved by the Valuation Committee of GBL and reviewed by an external advisor. Changes in the fair value of these investments are recognized in the revaluation reserves.
Investments in funds or co-investments owned by GBL Capital are revalued at their fair value, as notably determined by the managers of the funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss).
In accordance with the recommendations of the International Private Equity and Venture Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d), recent\u00a0investment, funds or co-investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of fair\u00a0value.
Analysis of financial instruments by category \u2013 balance sheets
The category, according to IFRS 9, uses the following abbreviations:
FATOCI: Financial Assets measured at fair value through Other Comprehensive Income
FATPL: Financial Assets measured at fair value through Profit or Loss
FLTPL: Financial Liabilities measured at fair value through Profit or Loss
FAAC: Financial Assets measured at Amortized Cost
FLAC: Financial Liabilities measured at Amortized Cost
HeAc: Hedge Accounting
The tables below show a comparison of the book value and the fair value of the financial instruments as of December\u00a031, 2023 and as of December\u00a031,\u00a02022, as well as the fair value hierarchy. There were no significant transfers between the different levels between 2023 and 2022.
As of December 31, 2023
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,013.1 | 10,013.1 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 287.2 | 287.2 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 112.4 | 112.4 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 2,192.0 | 2,192.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 0.2 | 0.2 | Level 2 |
Derivative instruments - Other | FATPL | 27.0 | 27.0 | Level 2 |
Other financial assets | FAAC | 573.7 | 573.7 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 600.6 | 600.6 | Level 2 |
Trading financial assets | FATPL | 1,385.6 | 1,385.6 | Level 1 |
Cash and cash equivalents | FAAC | 1,198.0 | 1,198.0 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 13.7 | 13.7 | Level 2 |
Derivative instruments - Other | FATPL | 25.5 | 25.5 | Level 2 |
Other financial assets | FAAC | 21.1 | 21.1 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 7,177.2 | 6,979.8 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 6.3 | 6.3 | Level 2 |
Derivative instruments - Other | FLTPL | 9.7 | 9.7 | Level 2 |
Other non current liabilities | FLAC | 407.1 | 407.1 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,173.7 | 1,173.7 | Level 2 |
Trade payables | FLAC | 571.5 | 571.5 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 41.1 | 41.1 | Level 2 |
Derivative instruments - Other | FLTPL | 5.1 | 5.1 | Level 2 |
Other current liabilities | FLAC | 76.3 | 76.3 | Level 2 |
As of December 31, 2022
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,837.2 | 10,837.2 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 273.0 | 273.0 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 127.3 | 127.3 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 1,927.0 | 1,927.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 9.6 | 9.6 | Level 2 |
Other financial assets | FAAC | 66.1 | 66.1 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 1,108.7 | 1,108.7 | Level 2 |
Trading financial assets | FATPL | 870.0 | 870.0 | Level 1 |
Cash and cash equivalents | FAAC | 1,768.3 | 1,768.3 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 35.5 | 35.5 | Level 2 |
Derivative instruments - Other | FATPL | 17.4 | 17.4 | Level 2 |
Other financial assets | FAAC | 38.0 | 38.0 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 8,714.7 | 8,379.3 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 4.1 | 4.1 | Level 2 |
Derivative instruments - Other | FLTPL | 88.7 | 88.7 | Level 2 |
Other non current liabilities | FLAC | 1,545.2 | 1,545.2 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,654.6 | 1,675.9 | Level 2 |
Trade payables | FLAC | 857.4 | 857.4 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 113.5 | 113.5 | Level 2 |
Derivative instruments - Other | FLTPL | 69.8 | 69.8 | Level 2 |
Other current liabilities | FLAC | 73.7 | 73.7 | Level 2 |
Analysis of financial instruments by category \u2013 income statements
The tables hereafter present the income and expenses before income taxes recognized in the income statement by categories of financial instruments. These tables analyze the income and expense lines containing financial instruments according to categories presented in columns. These distinguish, on the one hand, the categories applied by default to any item excluding hedge accounting and, on the other hand, the categories applied to any item falling within the scope of hedge accounting.
The IFRS 9 categories of amortized cost and fair value through profit or loss apply to the majority of non-hedge accounting items. Hedge accounting items are classified according to their fair value or cash flow hedging qualifications, distinguishing the values of hedged items and hedging instruments in columns and the types of risks hedged in rows. In addition, in order to ensure reconciliation between IFRS 9 classes and financial statements, this table includes a column containing the following non-IFRS 9 items: share-based payments (IFRS 2), mining assets (IFRS 6), inventories (IAS 2), income tax assets and liabilities (IAS 12), property, plant and equipment (IAS 16), finance lease liabilities (IFRS 16), defined benefit and short-term employee benefits assets and liabilities (IAS 19), grants (IAS\u00a020), provisions (IAS 37), intangible assets and prepaid expenses (IAS 38), stripping assets (IFRIC 20) and duties and taxes (IFRIC 21). The logic of classification of financial instruments in assets and liabilities is applied in transversally to their changes in income statement. For example, revenue is included in the amortized cost category, as its counterparties in trade receivables or cash and cash equivalents fall under this category on the asset\u00a0side.
2023
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 286.1 | - | - | - | - | - | 286.1 |
Other operating income (expenses) from investing activities | (62.5) | - | - | - | - | - | - | - | (62.5) |
Financial income (expenses) from investing activities | 189.7 | 91.3 | - | - | - | - | - | - | 280.9 |
Of which: Financial income | 303.7 | 93.9 | - | - | - | - | - | - | 397.6 |
Financial expenses | (114.0) | (2.6) | - | - | - | - | - | - | (116.7) |
Profit (loss) from investing activities - continuing operations | 127.1 | 91.3 | 286.1 | - | - | - | - | - | 504.5 |
Turnover | 6,137.1 | - | - | - | - | - | - | 0.2 | 6,137.3 |
Raw materials and consumables | (1,950.6) | - | - | (107.5) | - | - | - | (52.6) | (2,110.7) |
Other operating income (expenses) from operating activities | (1,471.4) | - | - | 10.2 | - | - | - | - | (1,461.2) |
Financial income (expenses) from operating activities | (211.7) | 0.4 | - | (17.1) | - | - | - | - | (228.4) |
Of which: Financial income | 83.1 | 0.4 | - | - | - | - | - | - | 83.5 |
Financial expenses | (294.8) | - | - | (17.1) | - | - | - | - | (311.9) |
Profit (loss) from consolidated operating activities - continuing operations | 2,503.3 | 0.4 | - | (114.4) | - | - | - | (52.4) | 2,336.9 |
2022
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 322.3 | - | - | - | - | - | 322.3 |
Other operating income (expenses) from investing activities | (74.3) | - | - | - | - | - | - | - | (74.3) |
Financial income (expenses) from investing activities | (490.0) | 94.6 | - | - | - | - | - | - | (395.4) |
Of which: Financial income | 168.7 | 119.0 | - | - | - | - | - | - | 287.7 |
Financial expenses | (658.7) | (24.4) | - | - | - | - | - | - | (683.1) |
Profit (loss) from investing activities - continuing operations | (564.3) | 94.6 | 322.3 | - | - | - | - | - | (147.4) |
Turnover | 5,623.4 | - | - | - | - | - | - | (0.1) | 5,623.3 |
Raw materials and consumables | (2,264.5) | - | - | 199.9 | - | - | - | 100.4 | (1,964.2) |
Other operating income (expenses) from operating activities | (1,548.7) | - | - | 18.1 | - | - | - | - | (1,530.6) |
Financial income (expenses) from operating activities | (362.9) | 5.8 | - | (11.0) | - | - | - | - | (368.1) |
Of which: Financial income | 36.9 | 5.8 | - | - | - | - | - | - | 42.7 |
Financial expenses | (399.9) | - | - | (11.0) | - | - | - | - | (410.9) |
Profit (loss) from consolidated operating activities - continuing operations | 1,447.3 | 5.8 | - | 207.0 | - | - | - | 100.3 | 1,760.4 |
Note 30Subsidiaries in which GBL holds significant non-controlling interests
The tables below present concise financial information about each of the subsidiaries in which GBL holds significant non-controlling interests, without taking intragroup eliminations into account.
In EUR\u00a0million | Imerys | Canyon | Sanoptis | Subsidiaries that are not individually material | 2023 |
Ownership percentage held by non-controlling interests | 45.1% | 50.0% | 16.8% | ||
Voting rights held by non-controlling interests | 31.9% | 50.0% | 38.0% | ||
Non-current assets | 4,469.7 | 749.6 | 2,294.2 | ||
Current assets | 2,682.2 | 475.6 | 182.4 | ||
Non-current liabilities | 2,497.6 | 373.3 | 1,590.5 | ||
Current liabilities | 1,497.0 | 136.9 | 113.6 | ||
Non-controlling interests | 33.3 | - | - | ||
Equity (group\u2019s share) | 3,124.0 | 714.9 | 772.6 | ||
Non-controlling interests (including those of the subsidiary) | 1,442.1 | 346.9 | 128.9 | 60.1 | 1,978.0 |
Turnover | 3,794.4 | 790.6 | 494.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 28.2 | (6.2) | (47.1) | ||
Net result of the period attributable to the non-controlling interests | 25.6 | (7.1) | (9.6) | 10.9 | 19.9 |
Net result of the period (including non-controlling interests) | 53.8 | (13.3) | (56.7) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 38.2 | (4.6) | (0.1) | ||
Other comprehensive income attributable to the non-controlling interests | 29.3 | (4.6) | (0.0) | 0.6 | 25.2 |
Total of other comprehensive income (including non-controlling interests) | 67.5 | (9.3) | (0.2) | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 66.4 | (10.8) | (47.3) | ||
Total comprehensive income attributable to the non-controlling interests | 54.9 | (11.7) | (9.6) | 11.5 | 45.1 |
Total comprehensive income (including non-controlling interests) | 121.3 | (22.6) | (56.9) | ||
Dividends paid to the non-controlling interests | 152.1 | - | - | ||
Net cash flows from operating activities | (86.5) | 11.6 | (19.3) | ||
Net cash flows from investing activities | 167.5 | (24.6) | (428.4) | ||
Net cash flows from financing activities | (259.0) | 4.7 | 411.6 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (14.9) | - | 0.7 | ||
Increase/decrease of cash and cash equivalents | (193.0) | (8.3) | (35.4) |
In EUR\u00a0million | Imerys | Webhelp | Canyon | Sanoptis | Subsidiaries that are not individually material | 2022 |
Ownership percentage held by non-controlling interests | 45.0% | 38.7% | 50.4% | 16.5% | ||
Voting rights held by non-controlling interests | 31.9% | 38.7% | 50.4% | 37.0% | ||
Non-current assets | 4,357.4 | 3,505.6 | 751.7 | 1,846.8 | ||
Current assets | 3,513.6 | 990.6 | 483.9 | 176.7 | ||
Non-current liabilities | 2,465.6 | 3,879.3 | 367.1 | 1,100.2 | ||
Current liabilities | 2,020.0 | 792.1 | 123.2 | 77.5 | ||
Non-controlling interests | 47.5 | 1.0 | - | 5.0 | ||
Equity (group\u2019s share) | 3,337.9 | (176.2) | 745.2 | 841.1 | ||
Non-controlling interests (including those of the subsidiary) | 1,550.4 | 1.0 | 362.4 | 140.5 | 45.7 | 2,100.0 |
Turnover | 4,281.6 | 2,485.3 | 644.9 | 180.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 130.4 | (388.2) | 11.0 | (20.7) | ||
Net result of the period attributable to the non-controlling interests | 124.0 | 17.2 | 11.8 | (4.1) | 3.2 | 152.2 |
Net result of the period (including non-controlling interests) | 254.4 | (371.0) | 22.8 | (24.8) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 7.9 | 26.9 | (0.2) | 2.2 | ||
Other comprehensive income attributable to the non-controlling interests | 15.9 | 17.2 | (0.2) | 0.4 | 0.2 | 33.5 |
Total of other comprehensive income (including non-controlling interests) | 23.8 | 44.1 | (0.4) | 2.6 | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 138.2 | (361.3) | 10.8 | (18.5) | ||
Total comprehensive income attributable to the non-controlling interests | 139.9 | 34.4 | 11.7 | (3.6) | 3.4 | 185.7 |
Total comprehensive income (including non-controlling interests) | 278.2 | (326.9) | 22.4 | (22.2) | ||
Dividends paid to the non-controlling interests | 65.3 | - | - | - | ||
Net cash flows from operating activities | 440.7 | 276.3 | (111.9) | 77.9 | ||
Net cash flows from investing activities | (311.3) | (301.4) | 7.2 | (187.9) | ||
Net cash flows from financing activities | 76.2 | (0.5) | 96.0 | 188.2 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (3.0) | (9.5) | - | 9.7 | ||
Increase/decrease of cash and cash equivalents | 202.6 | (35.2) | (8.7) | 88.0 |
Note 31Contingent assets and liabilities, rights and commitments
In relation to GBL
Investment/subscription commitments
Following GBL\u2019s commitment to GBL Capital, the uncalled subscribed capital totaled EUR\u00a0752\u00a0million as of December\u00a031, 2023 (EUR\u00a0846\u00a0million at\u00a0the end of 2022).
Foreign dividends/double international taxation
The group has taken certain measures in order to preserve its interests in matters of double taxation on its foreign dividends.
GBL\u2019s consolidated subsidiaries
Operating lease commitments
The remaining off-balance sheet items are limited to contracts outside the scope of IFRS 16 on leases, notably mining leases and commitments to\u00a0purchase services associated with leases (EUR\u00a04\u00a0million as of December\u00a031, 2023).
Other commitments given and received
These commitments given and received solely concern Imerys, GBL Capital and Sienna Investment Managers.
Other commitments given primarily relate to:
operating activities, i.e., firm purchase commitments given by Imerys within the framework of contracts for the purchase of goods, services, energy\u00a0or transport (EUR\u00a0181\u00a0million compared with EUR\u00a0113\u00a0million in 2022);
cash, i.e., corresponding to letters of credit and guarantees, mortgages and pledges obtained by Imerys from financial institutions to guarantee operating cash flow needs for their clients (EUR\u00a038\u00a0million compared with EUR\u00a063\u00a0million in 2022); and
other obligations (EUR\u00a076\u00a0million compared with EUR\u00a0192\u00a0million in 2022).
Commitments received totaled EUR\u00a0364\u00a0million as of December\u00a031, 2023 (EUR\u00a0470\u00a0million as of December\u00a031, 2022).
Note 32Transactions with related parties
External related parties to GBL
GBL\u2019s related parties are the Canadian group Power Corporation of Canada and the Belgian group Fr\u00e8re. These groups are for GBL the ultimate group heads. Through their joint venture Parjointco SA, they exercise joint control over the Swiss group Pargesa SA which controls GBL. Pargesa SA is as such a related party of GBL. There is no contract between GBL and Pargesa SA.
As of December\u00a031, 2023 and 2022, there were no transactions with these related parties, except for the provision of services to the Fr\u00e8re and Power Corporation of Canada groups for an amount of EUR\u00a01\u00a0million as of December\u00a031, 2023 (EUR\u00a01\u00a0million as of December\u00a031, 2022).
Directors\u2019 remunerations
The remunerations paid to the Directors are shown in the table below:
In EUR\u00a0million | 2023 | 2022 |
Remunerations, charges and short-term benefits\u00a0 | 3.9 | 3.3 |
Post-employment benefits | 0.4 | 0.5 |
Costs related to cash-settled share-based payments | (0.7) | (1.1) |
Other | 0.1 | 0.1 |
Total | 3.5 | 2.7 |
Note 33Events after the reporting period
Measures to enhance shareholder returns: treasury share buybacks
Between January\u00a08 and March 12, 2024, GBL acquired 0.7m GBL shares, accounting for 0.5% of the shares representing the capital and valued at EUR\u00a047\u00a0million on March 12, 2024. The seventh envelope of share buybacks was 9.5% executed at that date.
Note 34Statutory Auditor\u2019s fees
GBL\u2019s consolidated and statutory financial statements for this year have been audited and approved without qualifications by the Statutory Auditor PwC Reviseurs d\u2019Entreprises.
In accordance with article 3:65 of the Code on companies and associations, the fees for the services provided by the Statutory Auditor PwC Reviseur d\u2019Entreprises and its network were as follows:
In EUR\u00a0 | 2023 | 2022 |
Audit assignment | 6,720,989 | 5,244,000 |
of which GBL | 91,000 | 91,000 |
Other attest assignments | 1,116,072 | 271,286 |
Tax consultancy assignments | 1,235,847 | 672,482 |
Other assignments not related to the audit assignment | 1,637,156 | 384,579 |
Total | 10,710,064 | 6,572,347 |
Of which: Holding | 881,351 | 970,158 |
Imerys | 3,731,548 | 3,508,966 |
Webhelp | 1,185,512 | 1,516,759 |
Canyon | 18,000 | 13,000 |
Affidea | 3,125,525 | 10,350 |
Sanoptis | 762,775 | 0 |
GBL Capital and SIM | 1,005,353 | 553,114 |
8.1.2\tName
Groupe Bruxelles Lambert Groep Brussel Lambertin abbreviated \u00ab GBL \u00bb
The French and Dutch registered names may be used together or separately.
8.1.3\tRegistered office
24, avenue Marnix - 1000 Brussels
The registered office may be transferred to any other address in Belgium by decision of the Board of Directors.
8.1.4\tLegal form, incorporation and statutory publications
The Company was incorporated on January\u00a04, 1902 as a limited liability company under Belgian lawby deed executed by Edouard Van Halteren, Notary in Brussels, published in the Appendices to the Belgian Official Gazette of January\u00a010, 1902, reference number 176. The Articles of Association have been amended on a number of occasions, most recently by a deed dated May 4, 2023 published in the Appendices to the Belgian Official Gazette of May 16, 2023, reference number 23345360 and of June 16, 2023, reference number 23078388.
8.1.9\tPurpose
The Company\u2019s object is:
to carry out for itself or on behalf of third parties all real estate, financial and portfolio management transactions; to this end, it may create companies or bodies, take stakes therein, carry out all financing, consignment, loan, pledge or deposit transactions;
to carry out all studies and provide technical, legal, accounting, financial, commercial, administrative or management assistance on behalf of companies or bodies in which it holds a direct or indirect interest, or on behalf of third parties;
to insure for itself or on behalf of third parties any transport or transit companies.
The Company may be interested by contribution or merger in any existing or future companies or bodies whose object is similar, analogous or related to its own or which would be of such a nature as to confer on it any advantage in terms of achieving its object.
A balanced business model
GBL\u2019s paid dividend is primarily derived from (i) the net dividend paid out by its portfolio companies and (ii) the contribution of GBL Capital and Sienna Investment Managers (\u201cSIM\u201d) to GBL\u2019s cash earnings, after deduction of its cost structure.
GBL\u2019s financial flexibility has been enhanced as a result of the revised dividend policy introduced in 2020. GBL has set a payout ratio of between 75% and 100% of its cash earnings from 2021 onwards by way of\u00a0ordinary dividend, while reserving the option of paying exceptional dividends in the future when and if deemed appropriate.
On this basis, GBL will continue to provide an attractive dividend yield to its shareholders while releasing additional financial resources to support (i) the net asset value growth throughout the cycle, (ii) its portfolio companies if needed and (iii) the execution of the group\u2019s share buyback program.
GBL\u2019s payout ratio is derived from the cash earnings. As a result, this ratio excludes cash inflows from asset disposals (including capital gains). GBL has a solid liquidity profile ensuring the availability of resources to implement its investment strategy throughout the economic cycle.
Solid and flexible financial structure
GBL\u2019s objective is to maintain a sound financial structure, with:
a solid liquidity profile; and
limited net indebtedness relative to its portfolio value.\t
The financial strength derived from the liquidity profile ensures resources are readily available to quickly seize investment opportunities throughout the economic cycle.
The Loan To Value ratio fluctuates primarily depending on the deployment of capital for investments and more generally on the implementation of the portfolio rotation strategy. As part of financial discipline, the Loan To Value target is to maintain it below 10% through the cycle. While the effective Loan To Value ratio may exceed that threshold, it should (i) not exceed it for a prolonged period and (ii)\u00a0remain below 25%.
This conservative approach is consistent with GBL\u2019s philosophy of capital preservation and allows GBL to continue investing and generating returns throughout the cycle.
At year-end 2023, GBL had:
a Loan To Value ratio of 11.4%; and
a liquidity profile of EUR\u00a03.5 billion, consisting of gross cash for EUR\u00a01.1 billion and undrawn committed credit lines (having no financial covenants) for EUR\u00a02.4 billion maturing progressively over the 2027-2028 period.
7.1.6\tAccounting policies
Groupe Bruxelles Lambert SA (\u201cGBL\u201d) is a Belgian holding company listed on Euronext Brussels. Its consolidated financial statements cover a period of 12 months ended December\u00a031, 2023. They were approved by its Board of Directors on March 14, 2024 on a going concern basis, in millions of euros, to one decimal place and rounded to the nearest hundred thousand euros.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f98816": { "value": "Groupe Bruxelles Lambert SA (\u201cGBL\u201d) is a Belgian holding company listed on Euronext Brussels. Its consolidated financial statements cover a period of 12 months ended December\u00a031, 2023. They were approved by its Board of Directors on March 14, 2024 on a going concern basis, in millions of euros, to one decimal place and rounded to the nearest hundred thousand euros.", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f98817": { "value": "Groupe Bruxelles Lambert SA (\u201cGBL\u201d) is a Belgian holding company listed on Euronext Brussels. Its consolidated financial statements cover a period of 12 months ended December\u00a031, 2023. They were approved by its Board of Directors on March 14, 2024 on a going concern basis, in millions of euros, to one decimal place and rounded to the nearest hundred thousand euros.", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f98818": { "value": "Groupe Bruxelles Lambert SA (\u201cGBL\u201d) is a Belgian holding company listed on Euronext Brussels. Its consolidated financial statements cover a period of 12 months ended December\u00a031, 2023. They were approved by its Board of Directors on March 14, 2024 on a going concern basis, in millions of euros, to one decimal place and rounded to the nearest hundred thousand euros.", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__15-1": { "value": "They were approved by its Board of Directors on March 14, 2024 Note 33Events after the reporting periodMeasures to enhance shareholder returns: treasury share buybacks
Between January\u00a08 and March 12, 2024, GBL acquired 0.7m GBL shares, accounting for 0.5% of the shares representing the capital and valued at EUR\u00a047\u00a0million on March 12, 2024. The seventh envelope of share buybacks was 9.5% executed at that date.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f98881": { "value": "General accounting principles and applicable standards
The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f98882": { "value": "General accounting principles and applicable standards
The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f98913": { "value": "Mandatory changes in accounting policies
The following amended standards have been applied since the 2023 financial year. They did not have any material impact on GBL\u2019s consolidated financial statements.
IFRS 17 Insurance Contracts;
Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 \u2013 Comparative Information ;
Amendments to IAS 1 Presentation of Financial Statementsand IFRS Practice Statement 2: Disclosure of Accounting Policies;
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates;
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction; and
Amendments to IAS 12 Income taxes: International Tax Reform-Pillar Two Model Rules (effective immediately but not yet endorsed in the EU \u2013 disclosures are required for annual periods beginning on or after January 1, 2023).
Texts in force after the reporting date
GBL did not opt for the early adoption of the new and amended standards which entered into force after December\u00a031, 2022, namely:
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Non- current Liabilities with Covenants (applicable for annual periods beginning on or after January 1, 2024);
Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (applicable for annual periods beginning on or after January 1, 2024);
Amendments to IAS 7 Statement of Cash Flowsand IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements (applicable for annual periods beginning on or after January 1, 2024, but not yet endorsed in the EU); and
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (applicable for annual periods beginning on or after January 1, 2025, but not yet endorsed in the\u00a0EU).
The future application of these new and amended standards should not have a significant impact on the group\u2019s consolidated financial statements.
Basis and scope of consolidation
The consolidated financial statements, prepared before appropriation of result, include those of GBL and its subsidiaries (the \u201cgroup\u201d) and the interests of the group in joint ventures and associates accounted for using the equity method. The important subsidiaries, joint ventures and associates close their accounts on December\u00a031.
Controlled companies
Controlled companies are entities for which GBL is exposed to variable returns because of ties to these entities and has the ability to influence these returns because of the control that GBL has over these entities. Controlled companies are consolidated.
Intragroup balances and transactions as well as unrealized gains (losses) are eliminated. Newly acquired companies are consolidated as from the date of acquisition.
Joint ventures
A joint venture is a company over which GBL has joint control with one or more other parties and for which the parties have a claim to the company\u2019s net assets. Joint control is the contractually agreed sharing of the control exercised over a company, which only exists in cases where decisions regarding the relevant operations require the unanimous consent of the parties sharing control. These joint ventures are accounted for in the consolidated financial statements using the equity method.
Associates
If the group has a significant influence in a company, the investment it holds in that company is considered as an associate company.Significant influence is the power to participate in decisions about financial and operational policies, but without exercising control or joint control over these policies.
Associates are accounted for in the consolidated financial statements using the equity method.
An investment is accounted for using the equity method as from the date it becomes an investment in an associate or joint venture. Under the equity method, the investment in an associate or joint venture is recorded at cost on initial recognition.
In the absence of definition in the standards of the notion of cost, the group considers, in the event of a change from an \u201cother equity investment\u2013financial assets recognized at fair value through equity\u201d to an associate, the fair value at the date of the first equity method as the cost. The revaluation reserve accounted for until that date is transferred to consolidated reserves.
Intangible assets
Intangible assets are recorded at cost less any accumulated amortization and potential impairment losses.
Intangible assets with finite useful life are amortized on a straight- line basis over the following estimated useful lives and include among others:
software: 1 to 8 years;
trademarks, patents and licenses: 5 to 40 years \u2013 notably: 30 years for the trademark \u201cCanyon\u201d;
customer relations: 5 to 50 years \u2013 notably: between 20 and 50 years for Affidea and 11 years for Sanoptis;
hospital accreditations (Sanoptis): 15 years;
industrial processes and others: estimated useful life, specific to the project.
Intangible assets with an indefinite useful life are not amortized but are tested for impairment annually at the close of the financial year (or at an earlier date should there be an indication of impairment). When the recoverable amount of an asset is less than its carrying amount, this carrying amount is reduced to reflect the loss of value.
Intangible assets include brands and customer relations, which may have a de\ufb01ned or indefinite useful life, determined according to the results of an analysis of the following criteria: (i) impact on customers, (ii) stability (versus an expected change in the short or medium term) and (iii) competitive environment.
In the absence of any applicable standard or interpretation, Imerys treats greenhouse gas emission credits as intangible assets. Imerys holds these credits solely to prove the volume of its emissions and does not trade them, for example through forward purchases or sales. The recognized value of credits received free of charge is zero and credits purchased on the market are recognized at their purchase price. If the credits held are less than the actual emissions at the reporting date, a provision is recognized in profit or loss that is equal to the value of the credits to be purchased, measured at their market value (net liability method). Disposals are only related to surplus credits and are recognized in profit or loss as asset disposals. The group\u2019s greenhouse gas emission rights cannot be amortized.
Business combinations and goodwill
When the group acquires a business, the identifiable assets and liabilities of the acquired entity are recorded at fair value on the acquisition date.
The counterparty transferred to a business combination corresponds to the fair value of the transferred assets (including cash), the assumed liabilities and the shareholders\u2019 equity instruments issued by the group in exchange for the control of the acquired entity. The costs directly related to the acquisition are generally recognized in profit or loss.
Goodwill is calculated as the positive difference between the following two elements:
the sum of (i) the counterparty transferred and, where appropriate, (ii) the amount of the non-controlling interests (minority interests) in the acquired entity, and (iii) the fair value of interests already held by the group prior to acquiring the controlling interest; and
the net amount on the date of acquisition of the identifiable assets and liabilities acquired and assumed.
If, after confirmation of the values, this difference proves to be negative, this amount is immediately recorded in the income statement as a gain from a bargain purchase.
Goodwill is accounted for as an asset in the balance sheet under the heading \u201cGoodwill\u201d and is subject to an annual impairment test, which consists in comparing the recoverable amount of the cash generating units (\u201cCGU\u201d) to which the goodwill has been allocated with their carrying amount (including the goodwill). If the latter is higher, an impairment loss must be recorded in the income statement.
In addition, in valuing goodwill as outlined above, the amount of the non-controlling interests can be valued on a case by case basis and at GBL\u2019s choice, either at fair value (the so-called \u201cfull goodwill\u201d option) or at the share of the identifiable net asset in the acquired entity.
When an activity is put up for sale, a share of the goodwill of the CGU to which the activity belongs is allocated to it and included in the measurement of its carrying amount. This allocation is made on the basis of the relative fair values of the business for sale and the retained portion of the CGU.
Finally, where there are options to purchase non-controlling interests, the group has opted to eliminate any non-controlling interests at the time of acquisition. The financial liability resulting from this contract is reevaluated at each closing, with any subsequent change recognized in the income statement.
Property, plant and equipment
Fully owned property, plant and equipment
Items of property, plant and equipment are recorded under assets if they are controlled as a result of a deed of ownership. Items of property, plant and equipment are initially valued at acquisition or production cost.
The cost of property, plant and equipment includes the cost of loans contracted to finance their construction or production when they necessitate a substantial period of time. The cost of the assets is reduced, where appropriate, by the amount of public subsidies used to finance their acquisition or construction.
Maintenance and repair costs are immediately expensed under \u201cOther operating income (expenses) from operating activities\u201d. The cost of property, plant and equipment includes, in particular for satellite industrial installations built on clients\u2019 land, the present value of the rehabilitation or dismantling obligation, where such an obligation exists. Property, plant and equipment are subsequently valued at cost less accumulated depreciation and any accumulated impairment losses.
Leasehold property, plant and equipment
All contracts that convey the right to use an item of non-substitutable property, plant and equipment for a period of time in exchange for consideration are recognized as right-of-use assets against a lease liability. This treatment applies to all leases except mine land leases, which are recognized in the manner described in the following paragraph, as well as immaterial leases (leases with terms of 12\u2248months or less and leases of low-value assets), for which payments are recognized as an expense.
At Imerys level, easements, especially for pipelines used to connect mineral deposits, processing facilities and shipping facilities are analyzed as non-mine land leases. Right-of-use assets are initially measured at the value of the lease liability, plus any initial direct costs and equipment dismantling costs where necessary. Lease liabilities are measured at the discounted value of future lease payments due in accordance with a contractual payment schedule, adjusted for rent-free periods. Payments are therefore scheduled through to the reasonably certain end date of the lease, reflecting the date beyond which the lease ceases to be legally enforceable. This date represents the end of the lease, adjusted for any options the lessee is able to exercise regarding early termination or extension and any restrictions the lessor is able to exercise. The lease payments taken into account in the calculation of the lease liabilities include the unconditional payments due in exchange for the right to use the asset, as well as the cost related to the early termination, extension or purchase clauses when it is reasonably certain they will be exercised.
The liability calculation excludes any variable payment related to the use of the asset (at the level of Imerys, for example, a payment dependent on the actual number of hours a piece of mining equipment is used), as well as any payment for services rendered by the lessor (for example, at Imerys, rail car maintenance). In the absence of implicit interest rates, future payments determined in this way are discounted using the lessees\u2019 incremental borrowing rate.
The first time deferred tax assets and liabilities are recognized, they are calculated separately for lease liabilities and right-of-use assets, respectively. In subsequent years, right-of-use assets are amortized under the headings \u201cOther operating income (expenses) from investing activities\u201d or \u201cDepreciation/amortization of property, plant, equipment and intangible assets\u201d of the consolidated income statement and lease liabilities are measured at amortized cost, which generates an interest expense that is recognized in financial income (loss).
When an option is exercised, the lease must be reassessed to symmetrically adjust the carrying amounts of the lease liability and the right of use.
Any modification to leases gives rise to such a symmetrical adjustment, except when the scope of the lease is restricted to reduce the capacity of the asset leased or the duration of the lease. In this situation, the carrying amount of the lease liability and the right-of-use are reduced in proportion to the reduction of the scope, impacting the income statement.
Mining assets
In the absence of any specific applicable standard or interpretation, Imerys has defined the following methods to recognize and measure mining assets. Prospection expenditure, i.e., searching for new sites with mineral producing potential and studying the technical feasibility and commercial viability of a geographical area, is immediately recognized as an expense under the heading \u201cOther operating income (expenses) from operating activities\u201d. Mineral reserves are included in property, plant and equipment. Freehold mineral deposits are initially measured at acquisition cost minus subsoil. Leasehold mineral deposits are measured at a value of nil if the lease is entered into in the ordinary course of business. If the lease is acquired through a business combination, the acquisition cost of the deposit is measured at the fair value of the ore.
Costs incurred to determine the tonnage of ore present in the deposit are added to the acquisition cost. Overburden work, i.e., the process of removing the topsoil to gain access to the deposit, is considered a component of mineral reserve assets. The initial measurement of overburden work includes production cost and the discounted value of restoration obligations as a result of the deterioration caused by such work. Mineral reserves and overburden assets are included under the heading \u201cProperty, plant and equipment\u201d. Mining assets are subsequently measured at cost, minus accumulated depreciation and any impairment loss.
Depreciation
Depreciation expense is spread over the expected useful life of the different categories of property, plant and equipment using the straight- line method. The estimated useful lives of the most significant items of property, plant and equipment fall into the following ranges:
buildings: 10 to 50 years;
industrial constructions: 10 to 30 years;
fixtures and fittings of buildings and constructions: 5 to 23 years;
machinery, equipment and technical fittings: 5 to 20 years;
vehicles: 2 to 9 years; and
other property, plant and equipment: 10 to 20 years.
Land is not\u00a0depreciated.
Right-of-use assets held through leases are depreciated over the reasonably certain end date of the lease, unless the lessee is considering exercising their right to purchase the asset. In that case, the useful life of the asset leased is applied. Rights-of-use are depreciated or amortized on a straight-line basis, except, for Imerys, those applicable to bulk carriers, which are depreciated by the number of journeys made. Freehold and leasehold equipment is depreciated over its useful life, up to the end of the reasonably certain end date of the lease. Furthermore, Imerys does not consider the straight-line depreciation method appropriate to reflect the consumption of property, plant and equipment related to mining activities such as mineral reserves and overburden assets as well as certain industrial assets of discontinuous use.
Depreciation of mining assets is therefore estimated in units of production on the basis of actual extraction, while operational monitoring units such as production or operating hours are used to estimate depreciation of industrial assets.
A mineral reserve is depreciated to the quantity of the geological inventory of the deposit minus discounts for the geological uncertainty inherent to the resources. Overburden assets, a component of mineral reserve assets, are depreciated over the quantity of reserve to which they specifically give access. Subsoil, i.e.,\u00a0the area of land not part of the mineral deposit, is not depreciated since it is not consumed by mining operations.
Other equity investments
Other equity investments include investments in companies in which the group does not control nor exercise a significant influence, as defined above.
Other equity investments are either quoted or private assets or unquoted funds.
Quoted and private investments (SGS, Pernod Ricard, adidas, Umicore, Concentrix + Webhelp, Voodoo, etc.)
These investments are recorded at fair value based on their stock market price at each closing date for quoted investments and on the valuation methods used for private investments.
GBL has opted to account for changes in the fair value of quoted and private investments via equity (\u201cFinancial assets recognized at fair value through equity\u201d). These amounts will never be recycled in earnings, even in the event of the sale of securities or significant or prolonged loss of value. In the event of a sale, the accumulated revaluation reserves at the time of sale are reclassified to consolidated reserves.
Unquoted funds (Upfield, Sagard funds, Kartesia funds, Human capital funds, BDT Capital Partners II, Cepsa, etc.)
Investments in funds are revalued at each closing at their fair value, determined by the managers of these funds, according to their investment portfolio.
Based on the analysis of the characteristics of these unlisted funds, GBL determined that they were not eligible for the \u201cFair value through other comprehensive income\u201d option. Therefore, the changes in fair value are accounted for in profit or loss (\u201cFinancial assets recognized at fair value through profit or loss\u201d).
Non-current assets held for sale and discontinued operations
When, at the reporting date, it is highly likely that non-current assets or groups of directly related assets and liabilities will be disposed of, they are designated as non-current assets or groups of assets held for sale. Their sale is considered highly likely if, on the reporting date, a plan to put them up for sale at a reasonable price in relation to their fair value has been organized in order to find a buyer and finalize their transfer within one year at most. Non-current assets or groups of assets held for sale are presented as separate assets and liabilities in the consolidated balance sheet, separately from the rest of the continuing operations, at the balance sheet date and without comparative information provided for prior periods. They are no longer depreciated at the date of designation as non-current assets or disposal groups and are valued at the lower of carrying amount or fair value less costs to sell.
Non-current assets or groups of assets that will be shut down and not sold constitute non-current assets that are to be abandoned. When non-current assets or groups of assets held for sale or to be disposed of are allocated to a separate line item for the main operation and are to be abandoned as part of a single coordinated plan, they are categorized as discontinued operations and their related flows are disclosed separately in the income statement and statement of cash flows, as of the balance sheet date and in the comparative information provided for prior periods. As non-current assets or groups of assets held for sale are controlled until their disposal date, intra-group transactions between them and the rest of the continuing operations are eliminated in the balance sheet and in the income statement, with the exception of transactions within the income statement that the discontinued operations will continue after the date of loss of control with the continuing operations. This presentation, which has no impact on the amount of consolidated net income, enables users of the financial statements to assess the impact of discontinued operations on the remaining continuing operations.
Inventories
Inventories are recorded as assets at the date on which the risks, rewards and control are transferred to the group. At the time of sale, their disposal is accounted for through an expense at the same date as the corresponding gain. Inventories are valued at the lower of production cost or net realizable value. When production is less than normal capacity, fixed costs specifically exclude the share corresponding to the sub- activity. Inventories presenting similar characteristics are valued under the same method. The methods used in the group are FIFO \u2013 First-In, First-Out \u2013 and the weighted average unit cost. When production cost cannot be recovered, it is lowered to net realization value under the conditions existing at the reporting\u00a0date.
Trade receivables
Trade receivables are initially recognized at their transaction price, when those do not contain an important financing component (determined in accordance with IFRS 15 Revenue from Contractswith Customers). The transaction price is the amount of consideration that the group expects to receive in exchange for the goods or services transferred.
Subsequent to their initial recognition, trade receivables are valued at amortized cost, i.e., at fair value plus, where applicable, directly attributable transaction costs, increased or decreased, of accumulated amortization of any difference between this initial amount and the amount at maturity, and less any write-down for impairment or non- recoverability. At the end of the reporting period, a write-down is recognized for the value of expected credit losses. Such losses correspond to the estimated weighted probability of credit losses, i.e.,\u00a0the expected loss of cash over the life of the trade receivable, minus cash to be received from credit insurance where applicable.
A\u00a0receivable sold to a banking institution for financing purposes is only derecognized if the factoring agreement also transfers to the factor all the risks and rewards incidental to the receivable.
Other financial assets
The other financial assets are classified in one of the following two categories:
Amortized cost. Financial assets are measured at amortized cost when the objective of the business model is to collect the contractual cash flows. These correspond mainly to cash and cash equivalents, as well as, to a lesser extent, to receivables related to dividends to be received. Cash and cash equivalents include bank deposits and fixed-term investments with a maturity date equal to or less than three months from the acquisition date. These are highly liquid investments indexed on a money market rate and the value of which is known or subject to very little uncertainty.
Fair value through profit or loss. Financial assets are measured at fair value through profit or loss when the objective of the business model is to both collect the contractual cash flows and make a trading profit in the short term. They are non-derivative financial assets held for trading and recognized as assets between the dates of purchase and disposal, and whose changes in fair value are recognized in other financial income and expenses (investing or operating activities) at market prices published at the closing date. This category also includes trading assets as well as derivative instruments other than hedge accounting.
Finally, the group derecognizes a financial asset only if the contractual rights to the cash flows of the asset expire, or if the financial asset and the associated risks and benefits are transferred to third parties. If the group does not transfer or retain substantially all the risks and rewards of ownership and continues to control the transferred asset, the group then recognizes retained interests in that asset and an associated liability for amounts that it may have to pay. If the group retains substantially all the risks and rewards of owning a transferred financial asset, the group continues to recognize the financial asset and also recognizes a debt backed by the proceeds received.
Impairment of assets
Other equity investments
Other equity investments are not subject to impairment tests since any decrease in fair value, even significant or prolonged, is still recognized in equity for financial assets recognized at fair value through equity or, directly in profit or loss for financial assets recognized at fair value through profit or loss.
Investments in equity-accounted entities
When there is an objective indication of impairment of an investment accounted for using the equity method, an impairment test must be carried out, in accordance with IAS 36 Impairment of assetsand IAS\u00a028 Investments in Associates and Joint Ventures. The recoverable amount of the asset is estimated in order to compare it to its carrying amount and, where applicable, to recognize an impairment loss for the surplus. The recoverable amount is the highest of either the fair value less costs to sell or the value in use. The value in use corresponds\u00a0to the future estimated discounted cash flows. When an impairment accounted for in an earlier period ceases to exist, the carrying amount is partially or totally restored. The reversal of an impairment loss is recorded immediately in profit.
Property, plant and equipment and intangible assets
At every reporting date, the group reviews the carrying amount of intangible assets and property, plant and equipment with finite useful life in order to assess whether there is any evidence of impairment of these assets.
If there is any evidence of impairment, the asset\u2019s recoverable amount is estimated to compare it with its carrying amount. The recoverable amount is the higher of the asset\u2019s net sale price or its value in use. The value in use is the present value of estimated future cash flows from the continuous use of an asset. Where it is not possible to estimate the recoverable amount of an asset individually, the group estimates the recoverable amount of the CGU to which the asset belongs. If the recoverable amount of the asset or of the CGU is estimated to be less than the carrying amount, the carrying value of the asset or of the CGU is lowered to its recoverable amount. An impairment loss is immediately recognized in expenses.
When an impairment recorded during past financial years is no longer justified, the impairment loss on this asset or CGU is reversed in order to bring the asset or CGU back to a value corresponding to the new valuation of its recoverable amount.
However, the carrying value of an asset or CGU may not exceed, following reversal of an impairment loss, the carrying value it would have had if no impairment had been recognized for the asset or CGU in previous years. The reversal of an impairment loss is recognized immediately as income.
Trade receivables and other financial assets
IFRS 9 Financial Instrumentsrequires the application of a model based on anticipated losses on trade receivables and other financial assets. In particular, IFRS 9 requires, among other things, that the group recognizes an impairment loss on trade receivables and other financial assets as of the initial recognition date thereof.
The assessment of expected credit losses is made on an individual or collective basis taking into account historical data on late payments, information on current circumstances, as well as forward-looking information.
Taxes
Income taxes of the financial year include both current and deferred taxes. They are recorded in the income statement unless they relate to items directly recorded in shareholders\u2019 equity, in which case they are also recorded in shareholders\u2019 equity.
Current taxes are the taxes to be paid on the taxable profit for the financial year and are calculated in accordance with the tax rates in effect or that will be in effect on the last day of the financial year, plus any adjustments relating to prior years.
Deferred taxes are calculated in accordance with the liability method, which is applied to the temporary differences between the carrying amount and tax basis of the assets and liabilities recorded in the balance sheet.
The following tax differences are disregarded: non tax-deductible goodwill and initial valuations of assets and liabilities not affecting the accounting and taxable profit.
Deferred taxes are calculated according to the manner in which the related assets and liabilities are expected to be realized or settled, based on the tax rates in effect or that will be in effect on the last day of the financial year.
Additionally, deferred tax liabilities related to investments in subsidiaries are not recorded when the group is able to control the date on which the temporary difference will reverse and when the group does not expect the temporary difference to reverse in the foreseeable future.
Deferred tax assets are recorded if the taxable profits are likely to materialize in such a manner as to allow them to be offset against tax losses and tax credits.
Finally, deferred tax assets and liabilities are offset by tax entity when the latter has the right to offset its current tax assets and liabilities and that the deferred tax assets and liabilities in question are levied by the same tax authority.
Treasury shares
When treasury shares are bought (or sold), the amount paid (or received) is recorded as a decrease (or increase) in shareholders\u2019 equity.Movements in these shares are shown in the consolidated statement of changes in shareholders\u2019 equity. No profits or losses on these movements are recorded in the income statement.
Appropriation of profit
Dividends paid by GBL to its shareholders are included as a reduction of shareholders\u2019 equity for their gross amount, i.e., before withholding tax. The financial statements are prepared before appropriation of\u00a0profit.
Incentive plans
Equity-settled share-based plans
GBL and Imerys stock options granted prior to November 7, 2002 have not been recorded in the consolidated financial statements in accordance with the transitional provisions of IFRS 2 Share-based Payment.
Incentive plans granted as from November 7, 2002 are accounted for in accordance with IFRS 2. In accordance with this standard, the fair value of the options on the date of allocation is recorded in the income statement for the period of acquisition of the rights (\u201cvesting period\u201d). The options are valued by means of a valuation model generally accepted based on the market conditions prevailing at the time of their grant.
Cash-settled share-based plans
If the arrangement is settled in cash, the group incurs a liability measured at fair value. Until the settlement of the liability, the fair value should be measured at each reporting date and at settlement date. The changes in fair value are recognized in the income statement of the period.
Retirement benefits and other post- employment benefits
Defined benefit plans
Commitments for defined benefit pension plans and similar obligations are valued using the projected credit unit method, in accordance with IAS 19 Employee Benefits. This valuation uses financial and demographic actuarial assumptions. These are used to value services rendered during the year on the basis of an estimate of the end-of-career salary.
The provisions or assets recognized correspond to the present value of the obligation less the fair value of the plan\u2019s assets, which may be capped. The discount rates used to discount the obligations and calculate the resulting normative return on the assets are determined by referring to the yields of bonds issued by AA (high quality) rated companies within the main iBoxx GBP and USD Corporate AA indexes. Where negative interest rates arise, they are applied as published, without a floor at zero.
Contributions to funds and direct payments to beneficiaries as well as contributions and payments related to restructuring are recorded under \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d. Contributions to closed deficit plans with compulsory funding are recorded under \u201cFinancial income (expenses) from operating activities\u201d. The effect of these contributions in income statement is neutralized by reversals of provisions recognized in each of the mentioned above. Other elements of the change in post- employment benefit plans are recorded in \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d, with the exception of the accretion of obligations and normative return on assets that are recognized under \u201cFinancial income (expenses) from investing activities\u201d or \u201cFinancial income (expenses) from operating activities\u201d.
Administrative costs are recorded in \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d, except for the administrative expenses of the closed deficit plans with compulsory funding that are recorded under \u201cOther financial income (expenses) from operational activities\u201d.
Plan amendments, reductions and liquidations are immediately recognized in profit or loss. Actuarial differences and caps relating to post-employment benefit plan assets are fully recognized in other comprehensive income, net of asset management fees, without reclassification to profit or loss in a subsequent period.
Defined contribution plans
The group participates, in accordance with the regulations and corporate practices of each country, in the creation of retirement reserves for its staff, paying contributions on a mandatory or voluntary basis to external bodies such as pension funds, insurance companies or financial institutions.
These plans are defined contribution plans, in other words they do not guarantee the level of benefits paid. These contributions are recorded under \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d.
Provisions
Provisions are recorded at the reporting date when a group entity has an actual (legal or implicit) obligation resulting from a past event, when it is probable that an amount will have to be paid out to settle this obligation, and if the amount of the obligation can be determined reliably.
The amount recorded as a provision should be the most accurate estimation of the expenditure required to meet the obligation existing at the reporting date.
Provisions are recognized in profit or loss, apart from provisions for decommissioning and some provisions for rehabilitation, whose counterpart is included in the cost of assets whose construction has created the obligation. This treatment applies in particular to some of Imerys\u2019 industrial installations and overburden mineral assets.
Provisions whose settlement is expected within twelve months after the reporting date or whose settlement may occur at any time are not discounted. Provisions whose settlement is expected more than twelve months after the reporting date are discounted.
Changes in discounted provisions resulting from a revision of the amount of the obligation, its calendar or its discount rate are recognized in profit or loss, or for provisions recognized against assets, as an adjustment of the cost of the assets. The discounting is recognized as a debit in financial income (expenses).
Provisions for restructuring costs are not recorded unless the group has approved a detailed and formal restructuring plan and if the restructuring has either begun or been publicly announced. Costs relating to the group\u2019s continuing operations are not taken into account.
Current and non-current liabilities
Non-current liabilities (bank loans and bonds) and current liabilities (bank deposits) are initially recognized in the accounting records at their fair value less, in the case of a financial liability that has not been recorded at fair value through the income statement, the transaction costs that are directly imputed to the issuance of the financial liability.
After initial recording, they are valued at their amortized cost (initial amount less repayments of principal plus or minus the accumulated amortization of any difference between the initial amount and the value at maturity).
The exchangeable or convertible bonds issued by the group are considered as hybrid instruments, i.e., containing both a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds. The difference between the proceeds of issuance of the exchangeable or convertible bond and the fair value assigned to the bond component, representing the value of embedded option to exchange the bonds for shares, is included separately, depending on the option\u2019s maturity, in the heading \u201cOther current liabilities\u201d or \u201cOther non-current liabilities\u201d. The interest cost of the bond component is calculated by applying the prevailing interest market rate at the issuance date.
Transaction costs related to the issue of convertible or exchangeable bonds are allocated to the \u201cliability\u201d and \u201cderivative\u201d components in proportion to the allocation of gross proceeds.
Transaction costs related to the \u201cderivative\u201d component are recognized directly in profit or loss. Transaction costs related to the \u201cliability\u201d component are included in the carrying amount of the \u201cliability\u201d component and are amortized over the life of the convertible or exchangeable bonds using the effective interest rate method.
Trade payables and other financial non-derivative liabilities are measured at amortized cost.
The group derecognizes a financial liability if, and only if, its obligations are discharged, canceled or expired. The difference between the carrying amount of the derecognized financial liability and the consideration paid and payable is recognized in profit or loss. When the group exchanges a debt instrument with an existing lender for another instrument with substantially different terms, the exchange is recognized as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, if the contractual terms of an existing liability are substantially changed, the group also recognizes an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the contractual terms of the financial liability are substantially different if the present value of the cash flows under the new conditions, including any fees paid, net of fees collected and discounted at the original effective rate, is at least 10% different from the present value of the remaining cash flows of the original financial liability.
Derivative financial instruments
The group\u2019s consolidated operating companies use derivatives to reduce their exposure to various risks, in particular foreign exchange, interest rate and energy price risks. The sole purpose of these instruments is to hedge the economic risks to which they are exposed. Financial instruments are recognized at the transaction date, i.e., the date the hedge accounting contract is entered into. However, only those that fulfil the hedge accounting criteria laid down in IFRS 9 are given the accounting treatments described hereafter.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are immediately recognized in profit or loss.
Any transaction qualified as hedge accounting is documented by reference to the hedging strategy by identifying the hedged risk, the hedged item, the hedging instrument, the hedging relationship and the measurement method of the hedge relationship effectiveness.\u00a0The measurement of the hedge relationship effectiveness is updated at every reporting date.
Derivatives are measured at fair value on initial recognition. Fair value is subsequently remeasured at every reporting date by reference to market conditions and to IFRS 13 Fair Value Measurement.
Derivatives recorded as assets or liabilities are classified in the headings \u201cOther non-current assets/liabilities\u201d and \u201cOther current assets/ liabilities\u201d depending on their maturity date. The recognition of hedging derivatives varies depending on whether they are designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations.
GBL also uses derivative instruments. It can carry out transactions using call or put options. These transactions are implemented with reference to thorough documentation and are subject to specific and appropriate prior analysis and systematic monitoring.
Consolidated operating companies use different types of derivative financial instruments in various hedging strategies, as described below.
Fair value hedge
When changes in fair value of a recognized asset or liability or an unrecognized firm commitment may affect income, these changes may be covered by a fair value hedge. The hedged item and the hedging instrument are remeasured symmetrically in profit or loss at every reporting date. The impact in profit or loss is limited to the ineffective portion of the hedge.
Cash flow hedge
A cash flow hedge is used to cover unfavorable cash flow changes related to a recognized asset or liability or a highly likely future transaction when such changes are likely to affect profit or loss. At every reporting date, the effective share of the hedge and, if applicable, the changes in the time value of the options and futures points of the futures contracts, are recognized in shareholders\u2019 equity. The ineffective portion is recognized in profit or loss. When the transaction is recognized, items previously recognized in shareholders\u2019 equity are reclassified to profit or loss simultaneously with the recognition of the hedged item. In the event of a disqualification of a derivative, i.e., the interruption of hedge accounting, the effective portion of the hedge previously recognized in shareholders\u2019 equity is amortized to operating or financial result, depending on the nature of the hedged item.
Hedge of net investments in foreign operations
Foreign currency translation adjustments generated by net assets held by the group\u2019s consolidated operating companies in foreign currencies can be hedged. At every reporting date, the effective share of the hedge is recognized in shareholders\u2019 equity and the ineffective portion in profit or loss.
The effective portion in shareholders\u2019 equity is only reclassified as profit or loss in the case of loss of control over a consolidated activity or reduction of an interest in an activity under significant influence.
Items denominated in foreign currencies
Monetary assets and liabilities denominated in foreign currencies in the accounting records of group companies are translated into euros using the exchange rates of the last day of the financial year. Unrealized differences on translation resulting from the application of this methodology are recorded as gains or losses of the financial year. Non- monetary assets and liabilities are recorded using the exchange rates applicable on the date of the transaction.
In the consolidated financial statements, the group\u2019s assets and liabilities related to activities held abroad are converted at the closing rate.
Items of income and expenses denominated in foreign currencies are converted into euros at the average exchange rate for the year. Foreign currency translation adjustments reflecting the difference between the average rate and the rate on the last day of the year, are recognized in shareholders\u2019 equity under \u201cForeign currency translation adjustments\u201d. These foreign currency translation adjustments are recorded in profit or loss when the group disposes of the entity concerned.
Revenue
For Imerys, revenue is made up of two elements: on the one hand, the sale of goods and on the other hand, the services rendered mainly made out of the reinvoicing to customers of the cost of shipping goods and\u00a0industrial services provided. The contractual commitments made by the group to transfer these goods and services to its customers are categorized as performance obligations. When control of goods or services is transferred to customers, the performance obligation is deemed to have been satisfied and the revenue is recognized. Goods are therefore transferred to customers at a given point in time, which coincides with the transfer of all the risks and rewards defined in the contractual incoterms. The contract includes multiple incoterms due to the specificities as defined in contracts. However, while certain services, such as molding work, are rendered at a given point in time, most of the other services are transferred to customers over time, notably in the case of shipping services, for which the revenue is recognized after the delivery has been made, and certain specialized services in the
construction of industrial facilities or services aimed at intervening in the management of the customer process and whose degree of completion is measured based on the actual level of production costs committed or based on the time spent. Collateral requirements on the sale of goods and rendering of services offer customers guarantees about the specifications agreed in the contracts, rather than an additional service on top of these guarantees. Consequently, guarantees are not recognized as performance obligations but as provisions. Sale of goods and rendering of services are measured at the amount of the transaction, minus trade and volume rebates, as well as discounts for early payment.
For Canyon, sales are generated by the following revenue streams: B2C e-commerce, B2B e-commerce, workshops and services. Canyon grants its customers a 30-day right of return. A return rate is determined on the basis of historical data. This rate is used to establish a provision in the balance sheet for expected returns and is deducted from revenues.
For Sanoptis, revenues are generated by two main surgical treatments. One is cataract surgery, in which the opacified lens is replaced by an artificial lens, and the other is age-related macular degeneration surgery, in which multiple injections are made into the patient\u2019s eyeball. In the case of these medical treatments, billing takes place via statutory or private health insurance funds. The two billing processes are considered separately for recording and evaluating sales revenue.Sales generated are recorded daily, based on completed treatments in the patient software, and revenues are recorded at least monthly in the income statement. The starting point is the number of treatments performed during the month and the number of treatments. An operation is billed when all the operation forms and documents are available.Statutory health insurance funds are invoiced on a quarterly basis. Payment is made up to five months later, and may include deductibles on the amount invoiced. These deductions are estimated in advance as part of the revenue recognition process. The final payment is compared with the estimated amounts, and any difference is recorded as an adjustment. For private health insurance patients, classical services are billed as soon as possible, and are therefore recorded on the basis of the amounts actually billed.
For Affidea, income comes mainly from the reimbursement value of healthcare services, examinations and treatments carried out. The main sources of revenue are diagnostic imaging, cancer treatment and laboratory analyses. Revenues are recognized in the year in which the examinations and treatments take place, to the extent that it is highly probable that a significant reversal of the amount of accumulated revenues recognized will not occur.
Sale of goods and rendering of services are measured at the fair value of the transaction, minus trade and volume rebates, as well as discounts for early payment.
Interest
Interest income (expenses) include interest to be paid on loans and interest to be received on investments. Interest income received or interest charges paid are recorded prorata temporis in the consolidated statement of comprehensive income, taking into account the effective interest rate on the investment.
Dividends
Dividends relating to other equity investments or trading securities are booked in profit or loss on the date on which their distribution is decided upon, unless these dividends clearly represent the recovery of a portion of the cost of the investment. The amount of withholding tax is recorded as a deduction of gross dividends.
Changes in accounting policies and errors
A change in the accounting policies is only applied to meet the requirements of a standard or an interpretation, or if it gives more reliable and more relevant information. Changes in accounting policies are recognized retrospectively, except when specific transitional provisions are stated in a standard or an interpretation. When an error is detected, it is also retrospectively adjusted. No errors were corrected in 2023 or 2022.
Climate and sustainable development
The main climate issues concern Imerys. They are not addressed in a dedicated note but in each of the sections concerned.
Main estimates and judgments
During the preparation of the financial statements, the group makes a number of estimates and judgments relating to the recognition and measurement of its assets and liabilities. These assessments are intended to address the uncertain nature of the risks and opportunities to which the group\u2019s activities are exposed to. Among these, the risks and opportunities related to climate change, which may mainly impact Imerys\u2019 activities, are given particular attention. The group has decided to further integrate climate change and sustainable development issues into its strategy in order to reduce risks and create new opportunities for sustainable value creation. We refer to the ESG section. In this context, risks and opportunities are assessed in terms of market developments, physical risks and changes in the energy mix.
Uncertainties inherent to the business require estimates to be made when preparing the financial statements. These estimates result from judgements aiming at providing a true and fair view based upon available and reliable information. An estimate is revised to reflect changes in circumstances, new information available and effects linked to experience. Changes in estimates are accounted for on a prospective basis.
When such estimates are established, they are explained in the notes on the items to which they relate.
The main estimates are the following:
the valuation of the assets and liabilities of an acquired business (section \u201cScope of consolidation, associates and changes in group structure\u201d);
the principal assumptions related to goodwill impairment testing (Note 10), intangible assets (Note 9) and property, plant and equipment (Note 11), such as the duration, the amount of future cash flows as well as the discount rate and perpetual growth involved in computing the value in use of the tested assets. In particular, GBL has included in its estimates the uncertainties related to the risks and opportunities associated with climate change;
the valuation of unlisted assets or funds;
an estimate of the useful life of intangible assets with limited life (Note 9) and property, plant and equipment (Note 11);
estimates of indicators related to the climate and sustainable development that may create obligations for the group if they are not abided by, in particular estimates at Imerys:
the amount of greenhouse gas emissions generated by its industrial facilities and the need to purchase emission rights so as to assess the provisions covering any potential deficits (Note\u00a09);
the fulfilment of the sustainable development goals that Imerys must pursue and are indexed to Sustainability-Linked Bonds (Note\u00a017.2).
For Imerys, valuation methods to assess the acquisition cost of mining assets; in particular Imerys integrates the risks and opportunities related to climate change in the business plans used to draw up the geological inventory of mineral deposits, which is used as a base from which to calculate the acquisition cost (Note\u00a011);
estimate of reasonably certain lease terms of certain leases (Note\u00a011);
the estimation of inflation levels incorporated in the valuation of certain future cash flows, notably in the context of impairment tests (note 10), the valuation of other provisions (Note 20) and the valuation of defined benefit plans (Note 21);
the assessment, as part of the recognition and measurement of provisions, of the probability of settlement and amount of the obligation, of the expected timing of future payments and of discount rates (Note 20);
actuarial assumptions for defined benefit plans (Note 21); and
the assumptions related to the evaluation of debts on minority interests (Note 22).
Ontex, SGS, Umicore and Voodoo
GBL analyzed the accounting treatment to be applied to the investments in Ontex, SGS, Umicore and Voodoo and particularly the classification in (i) investments in associates (IAS 28), with the recognition of GBL\u2019s share in the profit or loss and shareholders\u2019 equity of Ontex, SGS, Umicore and Voodoo respectively or in (ii) other equity investments (IFRS 9), with the recognition of these investments at their fair value and the recognition of the dividend through profit or loss.
In accordance with IAS 28, it is assumed that a group does not exercise significant influence if the percentage holding is less than 20.00%, unless it can be clearly demonstrated. According to this standard, significant influence is usually demonstrated in the case of (i) representation on the Board of Directors, (ii) participation in policy-making processes, (iii) material transactions between the investor and the company owned, (iv) the interchange of managerial personnel or (v) the supply of critical technical information.
As of December\u00a031, 2023, those four investments are held respectively at 19.98%, 19.31%, 15.92% and 15.90%. The representation on the Board of Directors of those companies is not sufficient to demonstrate the existence of significant influence. Moreover, representation on the Board of Directors is limited to the mandates of the Directors and requires a resolution at General Shareholders\u2019 Meeting. In particular for listed companies, this representation does not come from a contractual or legal right. Taking these different factors into account, GBL has entered into the accounting treatment of its investments in Ontex, SGS, Umicore and Voodoo as other equity investments as of December\u00a031,\u00a02023.
Exchange rates used
2023 | 2022 | |
Closing rate | ||
US Dollar | 1.11 | 1.07 |
Swiss franc | 0.93 | 0.98 |
Average rate | ||
US Dollar | 1.08 | 1.05 |
Presentation of the consolidated financial statements
The consolidated income statement separately presents:
-\tInvesting activities
Components of income resulting from investing activities, which include the operations of GBL and of its subsidiaries whose main purpose is investment management. This includes GBL\u00a0Capital and Sienna Investment Managers as well as the profit (loss) of operating associates (Parques\u00a0Reunidos/Piolin II) and non-consolidated operating companies (Pernod\u00a0Ricard, SGS, adidas, Umicore, etc.); and
-\tConsolidated operating activities
Components of income from consolidated operating activities, i.e.,\u00a0from consolidated operating companies (Imerys, Webhelp, Canyon, Sanoptis, Affidea as well as the sub-groups Sausalitos, Vanreusel, etc).
7.1.7\tScope of consolidation, associates and joint ventures and changes in group structure
Fully consolidated subsidiaries
Interest and voting rights (in %) | Main activity | |||
NAME | Registered office | 2023 | 2022 | |
Brussels Securities SA | Brussels | 100.0 | 100.0 | Holding |
GBL O SA | Brussels | 100.0 | 100.0 | Holding |
Sagerpar SA | Brussels | 100.0 | 100.0 | Holding |
URDAC SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR II SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR III SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR IV SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR V SRL | Brussels | 100.0 | 100.0 | Holding |
FINPAR VI SRL | Brussels | 100.0 | 100.0 | Holding |
FINPAR VII SRL | Brussels | 100.0 | 100.0 | Holding |
Finpar VIII SRL | Brussels | 100.0 | 100.0 | Holding |
Finpar IX SRL | Brussels | 100.0 | - | Holding |
LTI Two SA | Brussels | 100.0 | 100.0 | Holding |
Tr\u00f4ne24 SRL | Brussels | 100.0 | - | Holding |
GBL Verwaltung SA | Luxembourg | 100.0 | 100.0 | Holding |
Belgian Securities S\u00e0rl (previously Belgian Securities BV) | ||||
Luxembourg (previously Amsterdam) | 100.0 | 100.0 | Holding | |
Sapiens S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Marnix Lux S\u00e0rl (group Webhelp and subsidiaries) | Luxembourg | - | 61.3 | Operational |
G.f.G. Topco S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
G.f.G. Capital S\u00e0rl | Luxembourg | 90.5 | 90.5 | Holding |
GoforGold Holding GmbH (group Canyon and subsidiaries) | Koblenz | 55.2 | 54.8 | Operational |
Celeste Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Celeste InvestCo SA | Luxembourg | 100.0 | 100.0 | Holding |
Celeste TopCo SA | Luxembourg | 99.0 | 99.5 | Holding |
Celeste Midco 1 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste Midco 2 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste Midco 3 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste BidCo BV (group Affidea and subsidiaries) | Netherlands | 100.0 | 100.0 | Operational |
Celeste GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia InvestCo SA | Luxembourg | 99.7 | 99.7 | Holding |
Sofia MasterCo SA | Luxembourg | 83.6 | 84.1 | Holding |
Sofia TopCo S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia Holdco S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia MidCo S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia BidCo S\u00e0rl (group Sanoptis and subsidiaries) (newly Sanoptis\u00a0S\u00e0rl) | Luxembourg | 100.0 | 100.0 | Operational |
One24 Capital SCA | Luxembourg | 100.0 | - | Holding |
Arthur Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Energy S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Serena S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Finance S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Eliott Capital S\u00e0rl | Luxembourg | - | 100.0 | Holding |
Miles Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Owen Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Theo Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Oliver Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Jade Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Vancouver Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Investments Ltd | Dublin | 100.0 | 100.0 | Holding |
GBL Development Ltd | London | 100.0 | 100.0 | Operational |
GBL Advisors Ltd | London | 100.0 | 100.0 | Operational |
RCPE Consulting SAS | Paris | 100.0 | 100.0 | Operational |
GBL Advisors DE GmbH | Munich | 100.0 | - | Operational |
Interest and voting rights (in %) | Main activity | |||
NAME | Registered office | 2023 | 2022 | |
Imerys SA (and subsidiaries) | Paris | 54.6 | 54.6 | Operational |
GBL Capital Participations S\u00e0rl | Luxembourg | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Investment Managers SA (newly Sienna Investment Managers\u00a0Luxembourg\u00a0SA) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Euclide SA | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Euclide GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Euclide SCA SICAV-RAIF | Luxembourg | 84.7 | - | GBL Capital and SIM |
Sienna Landlife SA | Luxembourg | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Landlife GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Landlife SCA SICAV-RAIF | Luxembourg | 84.4 | - | GBL Capital and SIM |
Sienna AM Luxembourg SA | Wilmington | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Capital US LLC | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital Invest GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital Invest SCSp | London | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital UK (previously Sienna Capital London Ltd) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Fund SCSp | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Carry SCSp | Luxembourg | - | 100,0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Master S\u00e0rl | Luxembourg | - | 100.0 | GBL Capital and SIM |
Sienna Capital Co-Invest Master S\u00e0rl (newly GBL Capital Coinvest Master S\u00e0rl) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna PE Invest GP S\u00e0rl | Luxembourg | - | 100.0 | GBL Capital and SIM |
Sienna Venture Capital GP S\u00e0rl | Luxembourg | 70.0 | 100.0 | GBL Capital and SIM |
Sienna Venture Capital SAS | Paris | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Venture Capital SCA SICAV-RAIF | Luxembourg | 100.0 | - | GBL Capital and SIM |
Sienna Real Estate Solutions S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Real Estate Partner JV Netherlands BV (group Sienna Real Estate and subsidiaries) | Amsterdam | 89.4 | 89.4 | GBL Capital and SIM |
Sienna Gestion (group Sienna Gestion and subsidiaries) | Paris | 66.6 | 66.6 | GBL Capital and SIM |
Sienna 2A SAS (group Sienna Private Credit and subsidiaries) | Paris | 87.5 | 87.5 | GBL Capital and SIM |
Sienna Private Equity SAS | Paris | 75.0 | 75.0 | GBL Capital and SIM |
Sienna Private Equity GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Private Equity Fund I SCA SICAV-RAIF | Luxembourg | 100.0 | - | GBL Capital and SIM |
Sienna SID III GP S\u00e0rl | Luxembourg | 100.0 | - | GBL Capital and SIM |
Apheon MidCap Buyout III SA (previously Ergon Capital Partners III SA) (group AMB III and subsidiaries) | Brussels | 89.9 | 89.9 | GBL Capital and SIM |
The percentage of voting rights is identical to the percentage interest, with the exception of Imerys, for which the voting rights are 68.11% and of the Sanoptis group, for which the voting rights are 61.96%. An incentive plan has also been granted to the management of Apheon MidCap Buyout\u00a0III, covering 16.67% of the shares.
Associates and joint ventures
RATE (IN %) | ||||||||
Avanti Acquisition SCSP | StreetTeam Software Ltd | Piolin II S\u00e0rl /Parques Reunidos | Backed 1 LP | Backed Encore 1 LP | Backed 2 LP | Apheon MidCap Buyout SA (previously Ergon Capital Partners SA) | ||
Office | Luxembourg | London | Luxembourg | Jersey | Jersey | Jersey | Brussels | |
Activity | GBL Capital and SIM | GBL Capital and SIM | Leisure parks | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | |
2023 | DETENTION RATE | - | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
2022 | Detention rate | 50.0 | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
RATE (IN %) | Apheon MidCap Buyout II SA (previously Ergon Capital Partners II SA) | Apheon MidCap Buyout IV SCSP (previously Ergon Capital Partners IV SCSp) | I.P.E. SRL, subsidiary of AMB III (previously ECP III) | M\u00e9rieux Participations 2 SAS | Landlife Holding S\u00e0rl | |||
Office | Brussels | Luxembourg | Bologna | Lyon | Luxembourg | |||
Activity | GBL Capital and SIM | GBL Capital and SIM | Home furnishing | GBL Capital and SIM | GBL Capital and SIM | |||
2023 | DETENTION RATE | 50.0 | 34.4 | 65.6 | 34.3 | 30.7 | ||
2022 | Detention rate | 50.0 | 34.4 | 65.6 | 34.3 | 35.1 |
The percentage of voting rights is identical to the percentage interest.
The group has analyzed the accounting treatment to be applied to the recognition of its investment in I.P.E. SRL (Visionnaire group) and has concluded that it only has a significant influence despite its 65.55% interest, based on the existence of a shareholders\u2019 agreement. The group reached the same conclusion regarding the consolidation method to be used to integrate the investments in Backed Encore 1 LP.
As of December\u00a031, 2023, GBL holds a stake in the funds Eight Partners Worldwide SAS (22.01%), Kartesia Credit Opportunities III SCA (31.15%), Sagard II B (74.65%), Sagard 3 FPCI (26.93%), Sagard Sant\u00e9 Animale FPCI (32.41%), Sagard Testing FPCI (63.72%), Sagard Business Intelligence FPCI (92.59%), Sagard NewGen Pharma FPCI (32.31%), Marcho Partners Feeder Fund ICAV (39.10%), C2 Capital Global Export-to-China Fund LP (26.96%), KKR Sigma Co-Invest II LP (32.30%), Sienna Levier ENR (100.00%), Sienna Rendement Avenir IV (25.11%), HCM IV LP/HCM V LP/HCM S11A LP/HCM S3C LP (20.27%, 28.55%, 56.26% and 49.26% respectively) and has determined that it has no significant influence over those investments. These funds are therefore presented as other equity investments and are measured at fair value at each reporting date.
In the rest of the notes, Apheon MidCap Buyout, Apheon MidCap Buyout II and Apheon MidCap Buyout IV have been referred to together under the\u00a0name \u201cAMB I, II & IV\u201d, while the name \u201cAMB\u201d refers to these companies referred to above and Apheon MidCap Buyout III (\u201cAMB III\u201d). Similarly, Backed\u00a01 LP, Backed Encore 1 LP and Backed 2 LP entities will be referred to as \u201cBacked\u201d, the entity Piolin II S\u00e0rl as \u201cPiolin II\u201d, the entity StreetTeam\u00a0Software Ltd. as \u201cStreetTeam\u201d and the entity Avanti Acquisition SCSP as \u201cAvanti Acquisition Corp.\u201d
Changes in group structure
Companies entering the group structure
Sanoptis
Project ROM- In the second quarter of 2023, Skylight Beteiligungs AG acquired a majority stake in TAZZ AG, Ambulante Augenchirurgie Zurich AG, Augenpraxis Gambon AG and Fleischhauer Ophthalmology AG, Swiss companies active in the ophthalmology sector. The total purchase price amounted to EUR\u00a077\u00a0million, comprising a cash payment of EUR\u00a045\u00a0million, put options on minority interests of EUR\u00a013\u00a0million and a share exchange of EUR\u00a019\u00a0million at the time of acquisition. The provisional goodwill generated by the acquisition amounts to EUR\u00a065\u00a0million. This\u00a0acquisition contributed EUR\u00a02\u00a0million (group share) to net income for the period.
Project MILANO- In the third quarter of 2023, Sanoptis AG acquired majority stakes in Augenarztpraxis Dr. Heinemann AG, Augencentrum Zytglogge AG, Tagesklinik im Eichgut AG and Augenarztpraxis Dr. H\u00fcrzeler, as well as minority stakes in Augenarztpraxis Dr. Eugster AG and Augenzentrum Winterthur AG, Swiss companies active in the ophthalmology sector. The total purchase price amounted to EUR\u00a087\u00a0million, comprising a cash settlement of EUR\u00a066\u00a0million, put options on minority interests of EUR\u00a05\u00a0million and a debt transfer of EUR\u00a016\u00a0million at the time of acquisition. Provisional goodwill and investments in associates generated by the acquisition amounted to EUR\u00a051\u00a0million and EUR\u00a08\u00a0million respectively. This acquisition contributed EUR\u00a01\u00a0million (group share) to net income for the year.
The fair values of the assets, liabilities and contingent liabilities of these two acquisitions are presented in the following table:
In EUR\u00a0million | Project ROM | Project MILANO | Total |
Non-current assets | 17.3 | 30.5 | 47.7 |
Current assets | 7.4 | 8.3 | 15.7 |
Non-current liabilities | 7.6 | 6.2 | 13.8 |
Current liabilities | 4.5 | 3.7 | 8.2 |
Acquired net assets | 12.6 | 28.8 | 41.4 |
Purchase price - paid in cash | 45.4 | 66.2 | 111.6 |
Purchase price - put options on minority interests | 12.6 | 5.1 | 17.7 |
Purchase price - share exchange | 19.4 | - | 19.4 |
Purchase price - debt transfer | - | 16.0 | 16.0 |
Total | 77.4 | 87.3 | 164.7 |
Goodwill | 64.8 | 50.7 | 115.5 |
Investments in associates | - | 7.8 | 7.8 |
Acquired cash and cash equivalents | 5.2 | 3.1 | 8.3 |
Net cash flow | 40.2 | 63.1 | 103.3 |
Other
Finally, the group also made other acquisitions in 2023 that were not individually significant. Those acquisitions generated a net cash outflow of EUR\u00a0378\u00a0million.
Companies leaving the group structure
Webhelp
On March 29, 2023, Webhelp and Concentrix announced that they had reached an agreement to combine the two groups. This transaction has created a global player in customer experience (\u201cCX\u201d). The Group concluded that the entire group Webhelp, with the exception of the investment vehicle Sapiens S\u00e0rl, constituted from this date a group held for sale because the following condition was met: GBL\u2019s ability to dispose of this business immediately in its current state within one year. As a consequence the group Webhelp has been classified as a discontinued operation.
On September 25, 2023, the sale of Webhelp has been completed.GBL received a total consideration of EUR\u00a01,103\u00a0million composed of (i)\u00a08,773,667\u00a0Concentrix + Webhelp shares (valued, as at the date of the transaction, at EUR\u00a0610\u00a0million), (ii) earn-out shares (valued, as at the date of the transaction, at EUR\u00a018\u00a0million), (iii) a seller note (with a net present value, as at the date of the transaction, of EUR\u00a0460\u00a0million) and (iv) cash for EUR\u00a015\u00a0million. The debt on minority shareholders was extinguished, without any impact on GBL\u2019s cash, at the closing of the transaction. The impact of the reversal was included in the gain on deconsolidation of Webhelp.
Upon completion of the transaction, GBL became the largest shareholder of the combined entity (\u201cConcentrix + Webhelp\u201d) with 13.17% of the capital and voting rights. GBL is also represented on the Board of Directors.
The assets and liabilities sold are shown in the table below:
In EUR\u00a0million | September 25, 2023 |
Non-current assets\u00a0 | 3,483.9 |
Current assets\u00a0 | 1,078.6 |
Assets held for sale | 4,562.5 |
Assets held for sale | 2,143.3(1) |
Current liabilities\u00a0 | 2,579.3 |
Liabilities associated with assets held for sale | 4,722.6 |
The contributions from discontinued operations have been presented on separate lines in the consolidated income statement and consolidated statement of cash flows, and are shown in the table below:
In EUR\u00a0million | 2023 | 2022 |
Share of profit (loss) of associates and joint ventures from investing activities | - | - |
Net dividends from investments | - | - |
Other operating income (expenses) from investing activities | - | - |
Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities | - | - |
Financial income (expenses) from investing activities | - | 0.1 |
Profit (loss) before tax from investing activities - continuing operations | - | 0.1 |
Turnover | 2,013.8 | 2,485.3 |
Raw materials and consumables | (47.6) | (57.9) |
Employee expenses | (1,500.7) | (1,841.7) |
Depreciation/amortization of property, plant, equipment and intangible assets (excluding impairments and reversals) | (167.2) | (215.5) |
Other operating income (expenses) from operating activities | (215.7) | (301.6) |
Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities | (0.0) | (6.9) |
Financial income (expenses) from operating activities\u00a0 | (51.9) | (413.0) |
Profit (loss) before tax from consolidated operating activities | 30.7 | (351.2) |
Gains (losses) on disposals | 1,291.8 | - |
Income taxes\u00a0 | (11.8) | (18.4) |
Profit (loss) from consolidated operating activities - discontinued operations | 1,310.7 | (369.5) |
In EUR\u00a0million | 2023 | 2022 |
Cash flow from operating activities | 215.6 | 259.8 |
Cash flow from investing activities | (89.9) | (220.4) |
Cash flow from financing activities | (22.7) | (87.3) |
Change in cash and cash equivalents | 103.1 | (47.9) |
The net cash inflow from this sale was EUR\u00a0- 422\u00a0millions.
(1)\tIncluding the debt on minority shareholders
Imerys
On July 28, 2022, Imerys had designated as discontinued operations substantially all of its High Temperature Solutions business line. In the financial statements to December\u00a031, 2023, as in those to December\u00a031, 2022, the discontinued operations\u2019 contributions to income and cash flows were presented separately in the income statement for the current year and the comparative period presented. On January\u00a031, 2023, the business was sold to the US investment fund Platinum Equity for proceeds of EUR\u00a0703\u00a0million received in cash, corresponding to a sale price of EUR\u00a0645\u00a0million for the shares in the entities sold, and EUR\u00a057\u00a0million in debt refinancing. The book value of the assets sold amounted to EUR\u00a0455\u00a0million. Translation adjustments recycled to the income statement in connection with this transaction amounted to EUR\u00a0- 137\u00a0million. Gain on disposal amounted to EUR\u00a053\u00a0million.
The assets and liabilities sold are shown in the table below:
In EUR\u00a0million | December 31, 2022 |
Non-current assets\u00a0 | 503.2 |
Current assets\u00a0 | 439.6 |
Assets held for sale | 942.8 |
Assets held for sale | 164.7 |
Current liabilities\u00a0 | 170.8 |
Liabilities associated with assets held for sale | 335.5 |
The contributions of the business have been presented under separate headings in the consolidated income statement, and their details in the income statement and in the consolidated statement of cash flows are provided in the tables below:
In EUR\u00a0million | 2023 | 2022 |
Turnover | 73.2 | 981.0 |
Raw materials and consumables | (41.6) | (515.5) |
Employee expenses | (13.4) | (148.6) |
Depreciation/amortization of property, plant, equipment and intangible assets (excluding impairments and reversals) | (0.1) | (13.8) |
Other operating income (expenses) from operating activities | (10.2) | (184.0) |
Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities | (21.3) | (0.4) |
Financial income (expenses) from operating activities\u00a0 | 1.8 | (2.7) |
Profit (loss) before tax from consolidated operating activities | (11.6) | 116.0 |
Gains (losses) on disposals | 53.5 | - |
Income taxes\u00a0 | 3.0 | (38.7) |
Profit (loss) from consolidated operating activities - discontinued operations | 44.9 | 77.3 |
In EUR\u00a0million | 2023 | 2022 |
Cash flow from operating activities | 11.9 | 94.4 |
Cash flow from investing activities | (60.7) | 23.9 |
Cash flow from financing activities | (58.6) | (35.1) |
Change in cash and cash equivalents | (107.4) | 83.2 |
The net cash inflow from this sale was EUR\u00a0554\u00a0million.
Other
Lastly, during the 2023 financial year, the group made a number of individually insignificant disposals which generated a net cash inflow of EUR\u00a018\u00a0million.
7.1.6\tAccounting policies
Groupe Bruxelles Lambert SA (\u201cGBL\u201d) is a Belgian holding company listed on Euronext Brussels. Its consolidated financial statements cover a period of 12 months ended December\u00a031, 2023. They were approved by its Board of Directors on March 14, 2024 on a going concern basis, in millions of euros, to one decimal place and rounded to the nearest hundred thousand euros.
General accounting principles and applicable standards
The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union.
Note 1Segment information
IFRS 8 Operating Segmentsrequires the identification of segments based on internal reports which are regularly presented to the main operating decision-maker for the purpose of managing the allocation of resources to the segments and assessing their performance.
In conformity with IFRS 8, the group has identified seven segments:
Holding: consisting of the parent company GBL and its subsidiaries. Its main activity is to manage investments as well as the non-consolidated operating companies or associates;
Imerys: consisting of the Imerys group, a French group listed on Euronext Paris and holding leading positions in each of its two main business lines: Performance Minerals and Refractory, Abrasives & Construction;
Webhelp: consisting, until September 25, 2023, date of the disposal, of the Webhelp group, a non-listed French group, specialized in customer experience and business process outsourcing, as well as the dedicated investment vehicle, Sapiens S\u00e0rl;
Canyon: consisting of the Canyon group, a non-listed German group, the world leader in exclusively online Direct-to-Consumer (\u201cDTC\u201d) sales of premium bicycles, as well as the dedicated investment vehicle, GfG Capital S\u00e0rl;
Affidea: comprising the non-listed Affidea Group, leading European provider of advanced diagnostics and outpatient services, and the dedicated investment vehicles to Celeste Capital S\u00e0rl;
Sanoptis: comprising the non-listed Sanoptis(1)Group, a European leader in ophthalmology services including surgeries and diagnostics, and the dedicated investment vehicles to Sofia Capital S\u00e0rl; and
GBL Capital and Sienna Investment Managers (\u201cSIM\u201d)including:
GBL Capital, with its investment\u2019s activity, which includes investments in alternative funds and direct co-investments in private equity, as well as, under consolidated operating activities, the operating subsidiaries of AMB III (subgroups Sausalitos, Vanreusel, Indo, etc.);
Sienna Investment Managers, activity of third-party asset management, through its stake in Sienna Real Estate, Sienna Gestion and Sienna\u00a0Private Credit.
The results of a segment, its assets and its liabilities include all the items directly attributable to it. The accounting standards applied to these segments are identical as those described in the section entitled \u201cAccounting Policies\u201d.
(1)\tFor the following companies of the Sanoptis Group, which are included in the consolidated financial statements, the disclosure exemptions according to \u00a7 264 para. 3 HGB (German Commercial Code) are aplied for: Sanoptis GmbH, Augenklinik Dr. Hoffmann GmbH, Augen\u00e4rzte Braunschweig-G\u00f6ttingen MVZ GmbH, MASG - Medizinische Abrechnungs- und Servicegesellschaft mbH, S\u00fcdblick GmbH, Augenheilkunde Medizinische Versorgungszentren Dillingen GmbH, Augenheilkunde Medizinische Versorgungszentren Heidenheim GmbH, nordBLICK Augenklinik Bellevue GmbH, nordBLICK MVZ GmbH, Wilhelminenhaus Kiel MVZ GmbH, Augentagesklinik Zehlendorf MVZ GmbH, Berolina Augenzentren MVZ GmbH, Augerlin MVZ GmbH, MVZ RHR Augen\u00e4rzte GmbH, MVZ Auregio GmbH, MVZ i-care4u GmbH, Augenzentrum M\u00fchldorf MVZ GmbH, Augenklinik M\u00fchldorf GmbH, Augenkompetenz Zentrum Bremerhaven MVZ GmbH, Augenblick Mannheim S\u00fcd MVZ GmbH, Augenblick Mannheim-Zentrum MVZ GmbH, Augenzentrum Oberstenfeld MVZ GmbH, Augenklinik Rendsburg GmbH, Taxi und Transport Neuwerk GmbH, Augenzentrum Unna MVZ GmbH, Augenblick Augenzentrum Reutlingen MVZ GmbH, Mainblick Augenzentrum GmbH, MVZ Augen Praxisklinik L\u00fcbeck GmbH, Augenzentrum an der Leine MVZ GmbH (former: MVZ Sch\u00f6ne Augenblicke GmbH), Augencentrum K\u00f6ln MVZ GmbH, BEP Augen\u00e4rzte MVZ GmbH, Augenkompetenz Zentrum Cuxhaven MVZ GmbH, AOC Augen OP Centrum Porz GmbH, Augenkompetenz Zentrum Cuxhaven MVZ GmbH (former: MVZ Augencentrum Cuxhaven GmbH), MVZ Weitblick GmbH, Augenheilkunde und Augenchirurgie Bottrop MVZ GmbH, Augentagesklinik am Rothenbaum RBC MVZ GmbH, Avila Augenpraxisklinik MVZ GmbH, Augenzentrum Brilon MVZ GmbH, OCU PRO\u00aeAugen\u00e4rzte MVZ GmbH, Rheinblick Augenzentrum GmbH, Argus Augen MVZ GmbH and Oculent Contactlinsen GmbH
Fair value
The fair value of a financial instrument is the amount that would be received on selling the asset or paid on transferring a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is a presumption that an entity is a going concern without any intention or need to liquidate, to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Fair value is not, therefore, the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distressed sale.
To reflect the importance of inputs used when measuring at fair value, the group classifies these valuations according to a hierarchy composed of\u00a0the\u00a0following levels:
level 1: listed prices (non-adjusted) on active markets for identical assets or liabilities;
level 2: inputs, other than the listed prices included in level 1, that are observable for the asset or liability concerned, either directly (i.e., prices) or\u00a0indirectly (i.e., derived from prices); and
level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).
", "dimensions": { "concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f98914": { "value": "Mandatory changes in accounting policies
The following amended standards have been applied since the 2023 financial year. They did not have any material impact on GBL\u2019s consolidated financial statements.
IFRS 17 Insurance Contracts;
Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 \u2013 Comparative Information ;
Amendments to IAS 1 Presentation of Financial Statementsand IFRS Practice Statement 2: Disclosure of Accounting Policies;
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates;
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction; and
Amendments to IAS 12 Income taxes: International Tax Reform-Pillar Two Model Rules (effective immediately but not yet endorsed in the EU \u2013 disclosures are required for annual periods beginning on or after January 1, 2023).
", "dimensions": { "concept": "ifrs-full:DescriptionOfInitialApplicationOfStandardsOrInterpretations", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f99069": { "value": "Texts in force after the reporting dateGBL did not opt for the early adoption of the new and amended standards which entered into force after December\u00a031, 2022, namely:Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Non- current Liabilities with Covenants (applicable for annual periods beginning on or after January 1, 2024);Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (applicable for annual periods beginning on or after January 1, 2024);Amendments to IAS 7 Statement of Cash Flowsand IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements (applicable for annual periods beginning on or after January 1, 2024, but not yet endorsed in the EU); andAmendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (applicable for annual periods beginning on or after January 1, 2025, but not yet endorsed in the\u00a0EU).The future application of these new and amended standards should not have a significant impact on the group\u2019s consolidated financial statements.", "dimensions": { "concept": "ifrs-full:ExplanationOfNotAppliedNewStandardsOrInterpretations", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f99259": { "value": "Basis and scope of consolidation
The consolidated financial statements, prepared before appropriation of result, include those of GBL and its subsidiaries (the \u201cgroup\u201d) and the interests of the group in joint ventures and associates accounted for using the equity method. The important subsidiaries, joint ventures and associates close their accounts on December\u00a031.
Controlled companies
Controlled companies are entities for which GBL is exposed to variable returns because of ties to these entities and has the ability to influence these returns because of the control that GBL has over these entities. Controlled companies are consolidated.
Intragroup balances and transactions as well as unrealized gains (losses) are eliminated. Newly acquired companies are consolidated as from the date of acquisition.
Joint ventures
A joint venture is a company over which GBL has joint control with one or more other parties and for which the parties have a claim to the company\u2019s net assets. Joint control is the contractually agreed sharing of the control exercised over a company, which only exists in cases where decisions regarding the relevant operations require the unanimous consent of the parties sharing control. These joint ventures are accounted for in the consolidated financial statements using the equity method.
Associates
If the group has a significant influence in a company, the investment it holds in that company is considered as an associate company.Significant influence is the power to participate in decisions about financial and operational policies, but without exercising control or joint control over these policies.
Associates are accounted for in the consolidated financial statements using the equity method.
An investment is accounted for using the equity method as from the date it becomes an investment in an associate or joint venture. Under the equity method, the investment in an associate or joint venture is recorded at cost on initial recognition.
In the absence of definition in the standards of the notion of cost, the group considers, in the event of a change from an \u201cother equity investment\u2013financial assets recognized at fair value through equity\u201d to an associate, the fair value at the date of the first equity method as the cost. The revaluation reserve accounted for until that date is transferred to consolidated reserves.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f99314": { "value": "Controlled companies
Controlled companies are entities for which GBL is exposed to variable returns because of ties to these entities and has the ability to influence these returns because of the control that GBL has over these entities. Controlled companies are consolidated.
Intragroup balances and transactions as well as unrealized gains (losses) are eliminated. Newly acquired companies are consolidated as from the date of acquisition.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__22-1": { "value": "Joint ventures
A joint venture is a company over which GBL has joint control with one or more other parties and for which the parties have a claim to the company\u2019s net assets. Joint control is the contractually agreed sharing of the control exercised over a company, which only exists in cases where decisions regarding the relevant operations require the unanimous consent of the parties sharing control. These joint ventures are accounted for in the consolidated financial statements using the equity method.
Associates
If the group has a significant influence in a company, the investment it holds in that company is considered as an associate company.Significant influence is the power to participate in decisions about financial and operational policies, but without exercising control or joint control over these policies.
Associates are accounted for in the consolidated financial statements using the equity method.
An investment is accounted for using the equity method as from the date it becomes an investment in an associate or joint venture. Under the equity method, the investment in an associate or joint venture is recorded at cost on initial recognition.
In the absence of definition in the standards of the notion of cost, the group considers, in the event of a change from an \u201cother equity investment\u2013financial assets recognized at fair value through equity\u201d to an associate, the fair value at the date of the first equity method as the cost. The revaluation reserve accounted for until that date is transferred to consolidated reserves.
Associates and joint ventures
RATE (IN %) | ||||||||
Avanti Acquisition SCSP | StreetTeam Software Ltd | Piolin II S\u00e0rl /Parques Reunidos | Backed 1 LP | Backed Encore 1 LP | Backed 2 LP | Apheon MidCap Buyout SA (previously Ergon Capital Partners SA) | ||
Office | Luxembourg | London | Luxembourg | Jersey | Jersey | Jersey | Brussels | |
Activity | GBL Capital and SIM | GBL Capital and SIM | Leisure parks | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | |
2023 | DETENTION RATE | - | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
2022 | Detention rate | 50.0 | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
RATE (IN %) | Apheon MidCap Buyout II SA (previously Ergon Capital Partners II SA) | Apheon MidCap Buyout IV SCSP (previously Ergon Capital Partners IV SCSp) | I.P.E. SRL, subsidiary of AMB III (previously ECP III) | M\u00e9rieux Participations 2 SAS | Landlife Holding S\u00e0rl | |||
Office | Brussels | Luxembourg | Bologna | Lyon | Luxembourg | |||
Activity | GBL Capital and SIM | GBL Capital and SIM | Home furnishing | GBL Capital and SIM | GBL Capital and SIM | |||
2023 | DETENTION RATE | 50.0 | 34.4 | 65.6 | 34.3 | 30.7 | ||
2022 | Detention rate | 50.0 | 34.4 | 65.6 | 34.3 | 35.1 |
The percentage of voting rights is identical to the percentage interest.
The group has analyzed the accounting treatment to be applied to the recognition of its investment in I.P.E. SRL (Visionnaire group) and has concluded that it only has a significant influence despite its 65.55% interest, based on the existence of a shareholders\u2019 agreement. The group reached the same conclusion regarding the consolidation method to be used to integrate the investments in Backed Encore 1 LP.
As of December\u00a031, 2023, GBL holds a stake in the funds Eight Partners Worldwide SAS (22.01%), Kartesia Credit Opportunities III SCA (31.15%), Sagard II B (74.65%), Sagard 3 FPCI (26.93%), Sagard Sant\u00e9 Animale FPCI (32.41%), Sagard Testing FPCI (63.72%), Sagard Business Intelligence FPCI (92.59%), Sagard NewGen Pharma FPCI (32.31%), Marcho Partners Feeder Fund ICAV (39.10%), C2 Capital Global Export-to-China Fund LP (26.96%), KKR Sigma Co-Invest II LP (32.30%), Sienna Levier ENR (100.00%), Sienna Rendement Avenir IV (25.11%), HCM IV LP/HCM V LP/HCM S11A LP/HCM S3C LP (20.27%, 28.55%, 56.26% and 49.26% respectively) and has determined that it has no significant influence over those investments. These funds are therefore presented as other equity investments and are measured at fair value at each reporting date.
In the rest of the notes, Apheon MidCap Buyout, Apheon MidCap Buyout II and Apheon MidCap Buyout IV have been referred to together under the\u00a0name \u201cAMB I, II & IV\u201d, while the name \u201cAMB\u201d refers to these companies referred to above and Apheon MidCap Buyout III (\u201cAMB III\u201d). Similarly, Backed\u00a01 LP, Backed Encore 1 LP and Backed 2 LP entities will be referred to as \u201cBacked\u201d, the entity Piolin II S\u00e0rl as \u201cPiolin II\u201d, the entity StreetTeam\u00a0Software Ltd. as \u201cStreetTeam\u201d and the entity Avanti Acquisition SCSP as \u201cAvanti Acquisition Corp.\u201d
Joint ventures
A joint venture is a company over which GBL has joint control with one or more other parties and for which the parties have a claim to the company\u2019s net assets. Joint control is the contractually agreed sharing of the control exercised over a company, which only exists in cases where decisions regarding the relevant operations require the unanimous consent of the parties sharing control. These joint ventures are accounted for in the consolidated financial statements using the equity method.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f99470": { "value": "Associates
If the group has a significant influence in a company, the investment it holds in that company is considered as an associate company.Significant influence is the power to participate in decisions about financial and operational policies, but without exercising control or joint control over these policies.
Associates are accounted for in the consolidated financial statements using the equity method.
An investment is accounted for using the equity method as from the date it becomes an investment in an associate or joint venture. Under the equity method, the investment in an associate or joint venture is recorded at cost on initial recognition.
In the absence of definition in the standards of the notion of cost, the group considers, in the event of a change from an \u201cother equity investment\u2013financial assets recognized at fair value through equity\u201d to an associate, the fair value at the date of the first equity method as the cost. The revaluation reserve accounted for until that date is transferred to consolidated reserves.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__26-1": { "value": "Intangible assets
Intangible assets are recorded at cost less any accumulated amortization and potential impairment losses.
Intangible assets with finite useful life are amortized on a straight- line basis over the following estimated useful lives and include among others:
software: 1 to 8 years;
trademarks, patents and licenses: 5 to 40 years \u2013 notably: 30 years for the trademark \u201cCanyon\u201d;
customer relations: 5 to 50 years \u2013 notably: between 20 and 50 years for Affidea and 11 years for Sanoptis;
hospital accreditations (Sanoptis): 15 years;
industrial processes and others: estimated useful life, specific to the project.
Intangible assets with an indefinite useful life are not amortized but are tested for impairment annually at the close of the financial year (or at an earlier date should there be an indication of impairment). When the recoverable amount of an asset is less than its carrying amount, this carrying amount is reduced to reflect the loss of value.
Intangible assets include brands and customer relations, which may have a de\ufb01ned or indefinite useful life, determined according to the results of an analysis of the following criteria: (i) impact on customers, (ii) stability (versus an expected change in the short or medium term) and (iii) competitive environment.
In the absence of any applicable standard or interpretation, Imerys treats greenhouse gas emission credits as intangible assets. Imerys holds these credits solely to prove the volume of its emissions and does not trade them, for example through forward purchases or sales. The recognized value of credits received free of charge is zero and credits purchased on the market are recognized at their purchase price. If the credits held are less than the actual emissions at the reporting date, a provision is recognized in profit or loss that is equal to the value of the credits to be purchased, measured at their market value (net liability method). Disposals are only related to surplus credits and are recognized in profit or loss as asset disposals. The group\u2019s greenhouse gas emission rights cannot be amortized.
Property, plant and equipment and intangible assets
At every reporting date, the group reviews the carrying amount of intangible assets and property, plant and equipment with finite useful life in order to assess whether there is any evidence of impairment of these assets.
If there is any evidence of impairment, the asset\u2019s recoverable amount is estimated to compare it with its carrying amount. The recoverable amount is the higher of the asset\u2019s net sale price or its value in use. The value in use is the present value of estimated future cash flows from the continuous use of an asset. Where it is not possible to estimate the recoverable amount of an asset individually, the group estimates the recoverable amount of the CGU to which the asset belongs. If the recoverable amount of the asset or of the CGU is estimated to be less than the carrying amount, the carrying value of the asset or of the CGU is lowered to its recoverable amount. An impairment loss is immediately recognized in expenses.
When an impairment recorded during past financial years is no longer justified, the impairment loss on this asset or CGU is reversed in order to bring the asset or CGU back to a value corresponding to the new valuation of its recoverable amount.
However, the carrying value of an asset or CGU may not exceed, following reversal of an impairment loss, the carrying value it would have had if no impairment had been recognized for the asset or CGU in previous years. The reversal of an impairment loss is recognized immediately as income.
Note 9Intangible assets
In EUR\u00a0million | Software | Mining rights | Patents, licenses and concessions | Trade-marks | Customer relations | Other | Total |
Gross carrying amount\u00a0 | |||||||
As of December 31, 2021 | 266.5 | 2.8 | 235.5 | 479.1 | 821.6 | 269.2 | 2,074.6 |
Investments | 29.0 | 0.2 | 0.8 | - | - | 55.3 | 85.3 |
Changes in group structure/business combinations | 8.2 | - | 13.4 | 86.0 | 713.2 | 542.9 | 1,363.6 |
Transfers between categories | 14.0 | - | (3.2) | - | - | (12.5) | (1.8) |
Disposals and retirements | (9.7) | - | (7.8) | (10.2) | (19.7) | (6.3) | (53.7) |
Foreign currency translation adjustments | 1.1 | 0.0 | (3.3) | - | 4.3 | 1.7 | 3.8 |
Other | (11.6) | (0.4) | (35.7) | (0.1) | (0.3) | (16.7) | (64.7) |
As of December 31, 2022 | 297.4 | 2.6 | 199.8 | 554.8 | 1,519.1 | 833.5 | 3,407.2 |
Investments | 14.8 | 3.7 | 2.0 | 0.0 | - | 69.7 | 90.2 |
Changes in group structure/Business combinations | 0.1 | - | 0.5 | 1.2 | 59.4 | 66.7 | 127.9 |
Transfers between categories | 39.4 | 1.0 | (23.8) | 12.4 | 91.7 | (118.4) | 2.3 |
Disposals and retirements | (25.3) | - | (0.2) | (0.2) | (22.6) | (29.9) | (78.2) |
Foreign currency translation adjustments | (0.8) | 0.0 | 0.0 | 0.1 | 0.6 | (0.2) | (0.2) |
Other | (122.9) | - | (10.2) | (182.7) | (764.9) | (27.2) | (1,108.0) |
As of December 31, 2023 | 202.7 | 7.3 | 168.1 | 385.6 | 883.2 | 794.1 | 2,441.1 |
Cumulated amortization | |||||||
As of December 31, 2021 | (175.3) | (0.7) | (38.6) | (12.2) | (109.0) | (128.8) | (464.6) |
Amortization | (32.5) | (0.2) | (2.6) | (15.2) | (85.8) | (24.8) | (161.1) |
Impairment (losses)/reversals | - | - | - | - | - | (0.1) | (0.1) |
Transfers between categories | (2.9) | - | 2.6 | - | - | 1.9 | 1.6 |
Disposals and retirements | 10.2 | - | 7.1 | 4.0 | 7.7 | 0.3 | 29.3 |
Foreign currency translation adjustments | (1.2) | (0.0) | (0.1) | - | 0.6 | (1.1) | (1.9) |
Changes in group structure/Other | 6.7 | 0.1 | 6.4 | - | 0.1 | 11.9 | 25.1 |
As of December 31, 2022 | (195.1) | (0.7) | (25.2) | (23.4) | (186.4) | (140.7) | (571.6) |
Amortization | (25.8) | (0.3) | (2.7) | (18.4) | (66.7) | (14.6) | (128.5) |
Impairment (losses)/reversals | (0.2) | - | - | - | - | (0.0) | (0.2) |
Transfers between categories | (2.3) | (0.3) | 2.6 | - | (42.5) | 44.3 | 1.8 |
Disposals and retirements | 25.3 | - | 0.2 | - | 11.1 | 25.3 | 61.9 |
Foreign currency translation adjustments | 1.0 | (0.0) | (0.1) | (0.0) | 1.6 | 0.1 | 2.6 |
Changes in group structure/Other | 83.2 | 0.0 | 5.1 | 11.3 | 159.2 | 7.6 | 266.3 |
As of December 31, 2023 | (113.9) | (1.3) | (20.1) | (30.6) | (123.8) | (78.0) | (367.7) |
Net carrying amount\u00a0 | |||||||
As of December 31, 2021 | 91.1 | 2.1 | 196.8 | 466.9 | 712.7 | 140.5 | 1,610.0 |
As of December 31, 2022 | 102.3 | 1.9 | 174.5 | 531.4 | 1,332.7 | 692.8 | 2,835.6 |
As of December 31, 2023 | 88.9 | 6.0 | 148.0 | 355.0 | 759.4 | 716.0 | 2,073.5 |
Of which: Holding | 1.0 | - | - | - | - | - | 1.0 |
Imerys | 68.3 | 6.0 | 138.5 | - | 35.0 | 85.5 | 333.3 |
Canyon | 6.4 | - | 2.6 | 276.2 | 27.5 | 39.2 | 351.9 |
Affidea | 9.0 | - | - | 73.3 | 521.2 | - | 603.5 |
Sanoptis | 1.2 | - | 0.4 | 5.5 | 149.6 | 585.1 | 741.9 |
GBL Capital and SIM | 3.0 | - | 6.3 | - | 26.2 | 6.4 | 41.8 |
The intangible assets with an indefinite useful life amount to EUR\u00a0557\u00a0million as of December\u00a031, 2023 \u2013 presented under the heading \u201cOther\u201d (EUR\u00a0653\u00a0million as of December\u00a031, 2022 \u2013 presented under the heading \u201cTrademarks\u201d and \u201cOther\u201d). These include the valuation at Sanoptis of the rights to receive insured patients for EUR\u00a0557\u00a0million (EUR\u00a0498\u00a0million s of December\u00a031, 2022). Intangible assets with finite useful lives mainly relate to customer relationships (EUR\u00a0521\u00a0million at Affidea and EUR\u00a0150\u00a0million at Sanoptis) and trademarks (EUR\u00a0276\u00a0million at Canyon).
The depreciation charges for the various periods are shown under \u201cOther operating income (expenses) from investing activities\u201d and \u201cDepreciation/ amortization of property, plant, equipment and intangible assets \u2013 consolidated operating activities\u201d in the consolidated income statement.
Research and development costs in 2023 amounted to EUR\u00a044\u00a0million (EUR\u00a042\u00a0million in 2022).
The line \u201cOther\u201d in 2023 includes mainly the reclassification of intangible assets of Webhelp to \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Regarding the emission rights, Imerys is subject to greenhouse gas regulation schemes at eleven of its facilities in Europe and one facility in the US. In 2023 and 2022, Imerys used all the emission rights allocated to its eligible facilities. As the estimated volume of greenhouse gas emissions exceeded the emission rights in 2023, the group made a provision of EUR\u00a08\u00a0million at December\u00a031, 2023 to cover the deficit (EUR\u00a04\u00a0million at December\u00a031, 2022). In addition, the carrying amount of emission rights acquired on the market was EUR\u00a015\u00a0million as of December\u00a031, 2023 (EUR\u00a08\u00a0million as of December\u00a031, 2022).
Intangible assets
Intangible assets are recorded at cost less any accumulated amortization and potential impairment losses.
Intangible assets with finite useful life are amortized on a straight- line basis over the following estimated useful lives and include among others:
software: 1 to 8 years;
trademarks, patents and licenses: 5 to 40 years \u2013 notably: 30 years for the trademark \u201cCanyon\u201d;
customer relations: 5 to 50 years \u2013 notably: between 20 and 50 years for Affidea and 11 years for Sanoptis;
hospital accreditations (Sanoptis): 15 years;
industrial processes and others: estimated useful life, specific to the project.
Intangible assets with an indefinite useful life are not amortized but are tested for impairment annually at the close of the financial year (or at an earlier date should there be an indication of impairment). When the recoverable amount of an asset is less than its carrying amount, this carrying amount is reduced to reflect the loss of value.
Intangible assets include brands and customer relations, which may have a de\ufb01ned or indefinite useful life, determined according to the results of an analysis of the following criteria: (i) impact on customers, (ii) stability (versus an expected change in the short or medium term) and (iii) competitive environment.
In the absence of any applicable standard or interpretation, Imerys treats greenhouse gas emission credits as intangible assets. Imerys holds these credits solely to prove the volume of its emissions and does not trade them, for example through forward purchases or sales. The recognized value of credits received free of charge is zero and credits purchased on the market are recognized at their purchase price. If the credits held are less than the actual emissions at the reporting date, a provision is recognized in profit or loss that is equal to the value of the credits to be purchased, measured at their market value (net liability method). Disposals are only related to surplus credits and are recognized in profit or loss as asset disposals. The group\u2019s greenhouse gas emission rights cannot be amortized.
Property, plant and equipment and intangible assets
At every reporting date, the group reviews the carrying amount of intangible assets and property, plant and equipment with finite useful life in order to assess whether there is any evidence of impairment of these assets.
If there is any evidence of impairment, the asset\u2019s recoverable amount is estimated to compare it with its carrying amount. The recoverable amount is the higher of the asset\u2019s net sale price or its value in use. The value in use is the present value of estimated future cash flows from the continuous use of an asset. Where it is not possible to estimate the recoverable amount of an asset individually, the group estimates the recoverable amount of the CGU to which the asset belongs. If the recoverable amount of the asset or of the CGU is estimated to be less than the carrying amount, the carrying value of the asset or of the CGU is lowered to its recoverable amount. An impairment loss is immediately recognized in expenses.
When an impairment recorded during past financial years is no longer justified, the impairment loss on this asset or CGU is reversed in order to bring the asset or CGU back to a value corresponding to the new valuation of its recoverable amount.
However, the carrying value of an asset or CGU may not exceed, following reversal of an impairment loss, the carrying value it would have had if no impairment had been recognized for the asset or CGU in previous years. The reversal of an impairment loss is recognized immediately as income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f99646": { "value": "Intangible assets
Intangible assets are recorded at cost less any accumulated amortization and potential impairment losses.
Intangible assets with finite useful life are amortized on a straight- line basis over the following estimated useful lives and include among others:
software: 1 to 8 years;
trademarks, patents and licenses: 5 to 40 years \u2013 notably: 30 years for the trademark \u201cCanyon\u201d;
customer relations: 5 to 50 years \u2013 notably: between 20 and 50 years for Affidea and 11 years for Sanoptis;
hospital accreditations (Sanoptis): 15 years;
industrial processes and others: estimated useful life, specific to the project.
Intangible assets with an indefinite useful life are not amortized but are tested for impairment annually at the close of the financial year (or at an earlier date should there be an indication of impairment). When the recoverable amount of an asset is less than its carrying amount, this carrying amount is reduced to reflect the loss of value.
Intangible assets include brands and customer relations, which may have a de\ufb01ned or indefinite useful life, determined according to the results of an analysis of the following criteria: (i) impact on customers, (ii) stability (versus an expected change in the short or medium term) and (iii) competitive environment.
In the absence of any applicable standard or interpretation, Imerys treats greenhouse gas emission credits as intangible assets. Imerys holds these credits solely to prove the volume of its emissions and does not trade them, for example through forward purchases or sales. The recognized value of credits received free of charge is zero and credits purchased on the market are recognized at their purchase price. If the credits held are less than the actual emissions at the reporting date, a provision is recognized in profit or loss that is equal to the value of the credits to be purchased, measured at their market value (net liability method). Disposals are only related to surplus credits and are recognized in profit or loss as asset disposals. The group\u2019s greenhouse gas emission rights cannot be amortized.
Business combinations and goodwill
When the group acquires a business, the identifiable assets and liabilities of the acquired entity are recorded at fair value on the acquisition date.
The counterparty transferred to a business combination corresponds to the fair value of the transferred assets (including cash), the assumed liabilities and the shareholders\u2019 equity instruments issued by the group in exchange for the control of the acquired entity. The costs directly related to the acquisition are generally recognized in profit or loss.
Goodwill is calculated as the positive difference between the following two elements:
the sum of (i) the counterparty transferred and, where appropriate, (ii) the amount of the non-controlling interests (minority interests) in the acquired entity, and (iii) the fair value of interests already held by the group prior to acquiring the controlling interest; and
the net amount on the date of acquisition of the identifiable assets and liabilities acquired and assumed.
If, after confirmation of the values, this difference proves to be negative, this amount is immediately recorded in the income statement as a gain from a bargain purchase.
Goodwill is accounted for as an asset in the balance sheet under the heading \u201cGoodwill\u201d and is subject to an annual impairment test, which consists in comparing the recoverable amount of the cash generating units (\u201cCGU\u201d) to which the goodwill has been allocated with their carrying amount (including the goodwill). If the latter is higher, an impairment loss must be recorded in the income statement.
In addition, in valuing goodwill as outlined above, the amount of the non-controlling interests can be valued on a case by case basis and at GBL\u2019s choice, either at fair value (the so-called \u201cfull goodwill\u201d option) or at the share of the identifiable net asset in the acquired entity.
When an activity is put up for sale, a share of the goodwill of the CGU to which the activity belongs is allocated to it and included in the measurement of its carrying amount. This allocation is made on the basis of the relative fair values of the business for sale and the retained portion of the CGU.
Finally, where there are options to purchase non-controlling interests, the group has opted to eliminate any non-controlling interests at the time of acquisition. The financial liability resulting from this contract is reevaluated at each closing, with any subsequent change recognized in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__28-1": { "value": "Intangible assets with finite useful life are amortized on a straight- line basis over the following estimated useful lives and include among others:
software: 1 to 8 years;
trademarks, patents and licenses: 5 to 40 years \u2013 notably: 30 years for the trademark \u201cCanyon\u201d;
customer relations: 5 to 50 years \u2013 notably: between 20 and 50 years for Affidea and 11 years for Sanoptis;
hospital accreditations (Sanoptis): 15 years;
industrial processes and others: estimated useful life, specific to the project.
Depreciation
Depreciation expense is spread over the expected useful life of the different categories of property, plant and equipment using the straight- line method. The estimated useful lives of the most significant items of property, plant and equipment fall into the following ranges:
buildings: 10 to 50 years;
industrial constructions: 10 to 30 years;
fixtures and fittings of buildings and constructions: 5 to 23 years;
machinery, equipment and technical fittings: 5 to 20 years;
vehicles: 2 to 9 years; and
other property, plant and equipment: 10 to 20 years.
Land is not\u00a0depreciated.
Right-of-use assets held through leases are depreciated over the reasonably certain end date of the lease, unless the lessee is considering exercising their right to purchase the asset. In that case, the useful life of the asset leased is applied. Rights-of-use are depreciated or amortized on a straight-line basis, except, for Imerys, those applicable to bulk carriers, which are depreciated by the number of journeys made. Freehold and leasehold equipment is depreciated over its useful life, up to the end of the reasonably certain end date of the lease. Furthermore, Imerys does not consider the straight-line depreciation method appropriate to reflect the consumption of property, plant and equipment related to mining activities such as mineral reserves and overburden assets as well as certain industrial assets of discontinuous use.
Depreciation of mining assets is therefore estimated in units of production on the basis of actual extraction, while operational monitoring units such as production or operating hours are used to estimate depreciation of industrial assets.
A mineral reserve is depreciated to the quantity of the geological inventory of the deposit minus discounts for the geological uncertainty inherent to the resources. Overburden assets, a component of mineral reserve assets, are depreciated over the quantity of reserve to which they specifically give access. Subsoil, i.e.,\u00a0the area of land not part of the mineral deposit, is not depreciated since it is not consumed by mining operations.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f99894": { "value": "In the absence of any applicable standard or interpretation, Imerys treats greenhouse gas emission credits as intangible assets. Imerys holds these credits solely to prove the volume of its emissions and does not trade them, for example through forward purchases or sales. The recognized value of credits received free of charge is zero and credits purchased on the market are recognized at their purchase price. If the credits held are less than the actual emissions at the reporting date, a provision is recognized in profit or loss that is equal to the value of the credits to be purchased, measured at their market value (net liability method). Disposals are only related to surplus credits and are recognized in profit or loss as asset disposals. The group\u2019s greenhouse gas emission rights cannot be amortized.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmissionRightsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__30-1": { "value": "Business combinations and goodwill
When the group acquires a business, the identifiable assets and liabilities of the acquired entity are recorded at fair value on the acquisition date.
The counterparty transferred to a business combination corresponds to the fair value of the transferred assets (including cash), the assumed liabilities and the shareholders\u2019 equity instruments issued by the group in exchange for the control of the acquired entity. The costs directly related to the acquisition are generally recognized in profit or loss.
Goodwill is calculated as the positive difference between the following two elements:
the sum of (i) the counterparty transferred and, where appropriate, (ii) the amount of the non-controlling interests (minority interests) in the acquired entity, and (iii) the fair value of interests already held by the group prior to acquiring the controlling interest; and
the net amount on the date of acquisition of the identifiable assets and liabilities acquired and assumed.
If, after confirmation of the values, this difference proves to be negative, this amount is immediately recorded in the income statement as a gain from a bargain purchase.
Goodwill is accounted for as an asset in the balance sheet under the heading \u201cGoodwill\u201d and is subject to an annual impairment test, which consists in comparing the recoverable amount of the cash generating units (\u201cCGU\u201d) to which the goodwill has been allocated with their carrying amount (including the goodwill). If the latter is higher, an impairment loss must be recorded in the income statement.
In addition, in valuing goodwill as outlined above, the amount of the non-controlling interests can be valued on a case by case basis and at GBL\u2019s choice, either at fair value (the so-called \u201cfull goodwill\u201d option) or at the share of the identifiable net asset in the acquired entity.
When an activity is put up for sale, a share of the goodwill of the CGU to which the activity belongs is allocated to it and included in the measurement of its carrying amount. This allocation is made on the basis of the relative fair values of the business for sale and the retained portion of the CGU.
Finally, where there are options to purchase non-controlling interests, the group has opted to eliminate any non-controlling interests at the time of acquisition. The financial liability resulting from this contract is reevaluated at each closing, with any subsequent change recognized in the income statement.
Changes in group structure
Companies entering the group structure
Sanoptis
Project ROM- In the second quarter of 2023, Skylight Beteiligungs AG acquired a majority stake in TAZZ AG, Ambulante Augenchirurgie Zurich AG, Augenpraxis Gambon AG and Fleischhauer Ophthalmology AG, Swiss companies active in the ophthalmology sector. The total purchase price amounted to EUR\u00a077\u00a0million, comprising a cash payment of EUR\u00a045\u00a0million, put options on minority interests of EUR\u00a013\u00a0million and a share exchange of EUR\u00a019\u00a0million at the time of acquisition. The provisional goodwill generated by the acquisition amounts to EUR\u00a065\u00a0million. This\u00a0acquisition contributed EUR\u00a02\u00a0million (group share) to net income for the period.
Project MILANO- In the third quarter of 2023, Sanoptis AG acquired majority stakes in Augenarztpraxis Dr. Heinemann AG, Augencentrum Zytglogge AG, Tagesklinik im Eichgut AG and Augenarztpraxis Dr. H\u00fcrzeler, as well as minority stakes in Augenarztpraxis Dr. Eugster AG and Augenzentrum Winterthur AG, Swiss companies active in the ophthalmology sector. The total purchase price amounted to EUR\u00a087\u00a0million, comprising a cash settlement of EUR\u00a066\u00a0million, put options on minority interests of EUR\u00a05\u00a0million and a debt transfer of EUR\u00a016\u00a0million at the time of acquisition. Provisional goodwill and investments in associates generated by the acquisition amounted to EUR\u00a051\u00a0million and EUR\u00a08\u00a0million respectively. This acquisition contributed EUR\u00a01\u00a0million (group share) to net income for the year.
The fair values of the assets, liabilities and contingent liabilities of these two acquisitions are presented in the following table:
In EUR\u00a0million | Project ROM | Project MILANO | Total |
Non-current assets | 17.3 | 30.5 | 47.7 |
Current assets | 7.4 | 8.3 | 15.7 |
Non-current liabilities | 7.6 | 6.2 | 13.8 |
Current liabilities | 4.5 | 3.7 | 8.2 |
Acquired net assets | 12.6 | 28.8 | 41.4 |
Purchase price - paid in cash | 45.4 | 66.2 | 111.6 |
Purchase price - put options on minority interests | 12.6 | 5.1 | 17.7 |
Purchase price - share exchange | 19.4 | - | 19.4 |
Purchase price - debt transfer | - | 16.0 | 16.0 |
Total | 77.4 | 87.3 | 164.7 |
Goodwill | 64.8 | 50.7 | 115.5 |
Investments in associates | - | 7.8 | 7.8 |
Acquired cash and cash equivalents | 5.2 | 3.1 | 8.3 |
Net cash flow | 40.2 | 63.1 | 103.3 |
Other
Finally, the group also made other acquisitions in 2023 that were not individually significant. Those acquisitions generated a net cash outflow of EUR\u00a0378\u00a0million.
Business combinations and goodwill
When the group acquires a business, the identifiable assets and liabilities of the acquired entity are recorded at fair value on the acquisition date.
The counterparty transferred to a business combination corresponds to the fair value of the transferred assets (including cash), the assumed liabilities and the shareholders\u2019 equity instruments issued by the group in exchange for the control of the acquired entity. The costs directly related to the acquisition are generally recognized in profit or loss.
Goodwill is calculated as the positive difference between the following two elements:
the sum of (i) the counterparty transferred and, where appropriate, (ii) the amount of the non-controlling interests (minority interests) in the acquired entity, and (iii) the fair value of interests already held by the group prior to acquiring the controlling interest; and
the net amount on the date of acquisition of the identifiable assets and liabilities acquired and assumed.
If, after confirmation of the values, this difference proves to be negative, this amount is immediately recorded in the income statement as a gain from a bargain purchase.
Goodwill is accounted for as an asset in the balance sheet under the heading \u201cGoodwill\u201d and is subject to an annual impairment test, which consists in comparing the recoverable amount of the cash generating units (\u201cCGU\u201d) to which the goodwill has been allocated with their carrying amount (including the goodwill). If the latter is higher, an impairment loss must be recorded in the income statement.
In addition, in valuing goodwill as outlined above, the amount of the non-controlling interests can be valued on a case by case basis and at GBL\u2019s choice, either at fair value (the so-called \u201cfull goodwill\u201d option) or at the share of the identifiable net asset in the acquired entity.
When an activity is put up for sale, a share of the goodwill of the CGU to which the activity belongs is allocated to it and included in the measurement of its carrying amount. This allocation is made on the basis of the relative fair values of the business for sale and the retained portion of the CGU.
Finally, where there are options to purchase non-controlling interests, the group has opted to eliminate any non-controlling interests at the time of acquisition. The financial liability resulting from this contract is reevaluated at each closing, with any subsequent change recognized in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__32-1": { "value": "Business combinations and goodwill
When the group acquires a business, the identifiable assets and liabilities of the acquired entity are recorded at fair value on the acquisition date.
The counterparty transferred to a business combination corresponds to the fair value of the transferred assets (including cash), the assumed liabilities and the shareholders\u2019 equity instruments issued by the group in exchange for the control of the acquired entity. The costs directly related to the acquisition are generally recognized in profit or loss.
Goodwill is calculated as the positive difference between the following two elements:
the sum of (i) the counterparty transferred and, where appropriate, (ii) the amount of the non-controlling interests (minority interests) in the acquired entity, and (iii) the fair value of interests already held by the group prior to acquiring the controlling interest; and
the net amount on the date of acquisition of the identifiable assets and liabilities acquired and assumed.
If, after confirmation of the values, this difference proves to be negative, this amount is immediately recorded in the income statement as a gain from a bargain purchase.
Goodwill is accounted for as an asset in the balance sheet under the heading \u201cGoodwill\u201d and is subject to an annual impairment test, which consists in comparing the recoverable amount of the cash generating units (\u201cCGU\u201d) to which the goodwill has been allocated with their carrying amount (including the goodwill). If the latter is higher, an impairment loss must be recorded in the income statement.
In addition, in valuing goodwill as outlined above, the amount of the non-controlling interests can be valued on a case by case basis and at GBL\u2019s choice, either at fair value (the so-called \u201cfull goodwill\u201d option) or at the share of the identifiable net asset in the acquired entity.
When an activity is put up for sale, a share of the goodwill of the CGU to which the activity belongs is allocated to it and included in the measurement of its carrying amount. This allocation is made on the basis of the relative fair values of the business for sale and the retained portion of the CGU.
Finally, where there are options to purchase non-controlling interests, the group has opted to eliminate any non-controlling interests at the time of acquisition. The financial liability resulting from this contract is reevaluated at each closing, with any subsequent change recognized in the income statement.
Changes in group structure
Companies entering the group structure
Sanoptis
Project ROM- In the second quarter of 2023, Skylight Beteiligungs AG acquired a majority stake in TAZZ AG, Ambulante Augenchirurgie Zurich AG, Augenpraxis Gambon AG and Fleischhauer Ophthalmology AG, Swiss companies active in the ophthalmology sector. The total purchase price amounted to EUR\u00a077\u00a0million, comprising a cash payment of EUR\u00a045\u00a0million, put options on minority interests of EUR\u00a013\u00a0million and a share exchange of EUR\u00a019\u00a0million at the time of acquisition. The provisional goodwill generated by the acquisition amounts to EUR\u00a065\u00a0million. This\u00a0acquisition contributed EUR\u00a02\u00a0million (group share) to net income for the period.
Project MILANO- In the third quarter of 2023, Sanoptis AG acquired majority stakes in Augenarztpraxis Dr. Heinemann AG, Augencentrum Zytglogge AG, Tagesklinik im Eichgut AG and Augenarztpraxis Dr. H\u00fcrzeler, as well as minority stakes in Augenarztpraxis Dr. Eugster AG and Augenzentrum Winterthur AG, Swiss companies active in the ophthalmology sector. The total purchase price amounted to EUR\u00a087\u00a0million, comprising a cash settlement of EUR\u00a066\u00a0million, put options on minority interests of EUR\u00a05\u00a0million and a debt transfer of EUR\u00a016\u00a0million at the time of acquisition. Provisional goodwill and investments in associates generated by the acquisition amounted to EUR\u00a051\u00a0million and EUR\u00a08\u00a0million respectively. This acquisition contributed EUR\u00a01\u00a0million (group share) to net income for the year.
The fair values of the assets, liabilities and contingent liabilities of these two acquisitions are presented in the following table:
In EUR\u00a0million | Project ROM | Project MILANO | Total |
Non-current assets | 17.3 | 30.5 | 47.7 |
Current assets | 7.4 | 8.3 | 15.7 |
Non-current liabilities | 7.6 | 6.2 | 13.8 |
Current liabilities | 4.5 | 3.7 | 8.2 |
Acquired net assets | 12.6 | 28.8 | 41.4 |
Purchase price - paid in cash | 45.4 | 66.2 | 111.6 |
Purchase price - put options on minority interests | 12.6 | 5.1 | 17.7 |
Purchase price - share exchange | 19.4 | - | 19.4 |
Purchase price - debt transfer | - | 16.0 | 16.0 |
Total | 77.4 | 87.3 | 164.7 |
Goodwill | 64.8 | 50.7 | 115.5 |
Investments in associates | - | 7.8 | 7.8 |
Acquired cash and cash equivalents | 5.2 | 3.1 | 8.3 |
Net cash flow | 40.2 | 63.1 | 103.3 |
Other
Finally, the group also made other acquisitions in 2023 that were not individually significant. Those acquisitions generated a net cash outflow of EUR\u00a0378\u00a0million.
Companies leaving the group structure
Webhelp
On March 29, 2023, Webhelp and Concentrix announced that they had reached an agreement to combine the two groups. This transaction has created a global player in customer experience (\u201cCX\u201d). The Group concluded that the entire group Webhelp, with the exception of the investment vehicle Sapiens S\u00e0rl, constituted from this date a group held for sale because the following condition was met: GBL\u2019s ability to dispose of this business immediately in its current state within one year. As a consequence the group Webhelp has been classified as a discontinued operation.
On September 25, 2023, the sale of Webhelp has been completed.GBL received a total consideration of EUR\u00a01,103\u00a0million composed of (i)\u00a08,773,667\u00a0Concentrix + Webhelp shares (valued, as at the date of the transaction, at EUR\u00a0610\u00a0million), (ii) earn-out shares (valued, as at the date of the transaction, at EUR\u00a018\u00a0million), (iii) a seller note (with a net present value, as at the date of the transaction, of EUR\u00a0460\u00a0million) and (iv) cash for EUR\u00a015\u00a0million. The debt on minority shareholders was extinguished, without any impact on GBL\u2019s cash, at the closing of the transaction. The impact of the reversal was included in the gain on deconsolidation of Webhelp.
Upon completion of the transaction, GBL became the largest shareholder of the combined entity (\u201cConcentrix + Webhelp\u201d) with 13.17% of the capital and voting rights. GBL is also represented on the Board of Directors.
The assets and liabilities sold are shown in the table below:
In EUR\u00a0million | September 25, 2023 |
Non-current assets\u00a0 | 3,483.9 |
Current assets\u00a0 | 1,078.6 |
Assets held for sale | 4,562.5 |
Assets held for sale | 2,143.3(1) |
Current liabilities\u00a0 | 2,579.3 |
Liabilities associated with assets held for sale | 4,722.6 |
The contributions from discontinued operations have been presented on separate lines in the consolidated income statement and consolidated statement of cash flows, and are shown in the table below:
In EUR\u00a0million | 2023 | 2022 |
Share of profit (loss) of associates and joint ventures from investing activities | - | - |
Net dividends from investments | - | - |
Other operating income (expenses) from investing activities | - | - |
Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities | - | - |
Financial income (expenses) from investing activities | - | 0.1 |
Profit (loss) before tax from investing activities - continuing operations | - | 0.1 |
Turnover | 2,013.8 | 2,485.3 |
Raw materials and consumables | (47.6) | (57.9) |
Employee expenses | (1,500.7) | (1,841.7) |
Depreciation/amortization of property, plant, equipment and intangible assets (excluding impairments and reversals) | (167.2) | (215.5) |
Other operating income (expenses) from operating activities | (215.7) | (301.6) |
Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities | (0.0) | (6.9) |
Financial income (expenses) from operating activities\u00a0 | (51.9) | (413.0) |
Profit (loss) before tax from consolidated operating activities | 30.7 | (351.2) |
Gains (losses) on disposals | 1,291.8 | - |
Income taxes\u00a0 | (11.8) | (18.4) |
Profit (loss) from consolidated operating activities - discontinued operations | 1,310.7 | (369.5) |
In EUR\u00a0million | 2023 | 2022 |
Cash flow from operating activities | 215.6 | 259.8 |
Cash flow from investing activities | (89.9) | (220.4) |
Cash flow from financing activities | (22.7) | (87.3) |
Change in cash and cash equivalents | 103.1 | (47.9) |
The net cash inflow from this sale was EUR\u00a0- 422\u00a0millions.
(1)\tIncluding the debt on minority shareholders
Imerys
On July 28, 2022, Imerys had designated as discontinued operations substantially all of its High Temperature Solutions business line. In the financial statements to December\u00a031, 2023, as in those to December\u00a031, 2022, the discontinued operations\u2019 contributions to income and cash flows were presented separately in the income statement for the current year and the comparative period presented. On January\u00a031, 2023, the business was sold to the US investment fund Platinum Equity for proceeds of EUR\u00a0703\u00a0million received in cash, corresponding to a sale price of EUR\u00a0645\u00a0million for the shares in the entities sold, and EUR\u00a057\u00a0million in debt refinancing. The book value of the assets sold amounted to EUR\u00a0455\u00a0million. Translation adjustments recycled to the income statement in connection with this transaction amounted to EUR\u00a0- 137\u00a0million. Gain on disposal amounted to EUR\u00a053\u00a0million.
The assets and liabilities sold are shown in the table below:
In EUR\u00a0million | December 31, 2022 |
Non-current assets\u00a0 | 503.2 |
Current assets\u00a0 | 439.6 |
Assets held for sale | 942.8 |
Assets held for sale | 164.7 |
Current liabilities\u00a0 | 170.8 |
Liabilities associated with assets held for sale | 335.5 |
The contributions of the business have been presented under separate headings in the consolidated income statement, and their details in the income statement and in the consolidated statement of cash flows are provided in the tables below:
In EUR\u00a0million | 2023 | 2022 |
Turnover | 73.2 | 981.0 |
Raw materials and consumables | (41.6) | (515.5) |
Employee expenses | (13.4) | (148.6) |
Depreciation/amortization of property, plant, equipment and intangible assets (excluding impairments and reversals) | (0.1) | (13.8) |
Other operating income (expenses) from operating activities | (10.2) | (184.0) |
Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities | (21.3) | (0.4) |
Financial income (expenses) from operating activities\u00a0 | 1.8 | (2.7) |
Profit (loss) before tax from consolidated operating activities | (11.6) | 116.0 |
Gains (losses) on disposals | 53.5 | - |
Income taxes\u00a0 | 3.0 | (38.7) |
Profit (loss) from consolidated operating activities - discontinued operations | 44.9 | 77.3 |
In EUR\u00a0million | 2023 | 2022 |
Cash flow from operating activities | 11.9 | 94.4 |
Cash flow from investing activities | (60.7) | 23.9 |
Cash flow from financing activities | (58.6) | (35.1) |
Change in cash and cash equivalents | (107.4) | 83.2 |
The net cash inflow from this sale was EUR\u00a0554\u00a0million.
Other
Lastly, during the 2023 financial year, the group made a number of individually insignificant disposals which generated a net cash inflow of EUR\u00a018\u00a0million.
Business combinations and goodwill
When the group acquires a business, the identifiable assets and liabilities of the acquired entity are recorded at fair value on the acquisition date.
The counterparty transferred to a business combination corresponds to the fair value of the transferred assets (including cash), the assumed liabilities and the shareholders\u2019 equity instruments issued by the group in exchange for the control of the acquired entity. The costs directly related to the acquisition are generally recognized in profit or loss.
Goodwill is calculated as the positive difference between the following two elements:
the sum of (i) the counterparty transferred and, where appropriate, (ii) the amount of the non-controlling interests (minority interests) in the acquired entity, and (iii) the fair value of interests already held by the group prior to acquiring the controlling interest; and
the net amount on the date of acquisition of the identifiable assets and liabilities acquired and assumed.
If, after confirmation of the values, this difference proves to be negative, this amount is immediately recorded in the income statement as a gain from a bargain purchase.
Goodwill is accounted for as an asset in the balance sheet under the heading \u201cGoodwill\u201d and is subject to an annual impairment test, which consists in comparing the recoverable amount of the cash generating units (\u201cCGU\u201d) to which the goodwill has been allocated with their carrying amount (including the goodwill). If the latter is higher, an impairment loss must be recorded in the income statement.
In addition, in valuing goodwill as outlined above, the amount of the non-controlling interests can be valued on a case by case basis and at GBL\u2019s choice, either at fair value (the so-called \u201cfull goodwill\u201d option) or at the share of the identifiable net asset in the acquired entity.
When an activity is put up for sale, a share of the goodwill of the CGU to which the activity belongs is allocated to it and included in the measurement of its carrying amount. This allocation is made on the basis of the relative fair values of the business for sale and the retained portion of the CGU.
Finally, where there are options to purchase non-controlling interests, the group has opted to eliminate any non-controlling interests at the time of acquisition. The financial liability resulting from this contract is reevaluated at each closing, with any subsequent change recognized in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__35-1": { "value": "Goodwill is accounted for as an asset in the balance sheet under the heading \u201cGoodwill\u201d and is subject to an annual impairment test, which consists in comparing the recoverable amount of the cash generating units (\u201cCGU\u201d) to which the goodwill has been allocated with their carrying amount (including the goodwill). If the latter is higher, an impairment loss must be recorded in the income statement.Other equity investments
Other equity investments are not subject to impairment tests since any decrease in fair value, even significant or prolonged, is still recognized in equity for financial assets recognized at fair value through equity or, directly in profit or loss for financial assets recognized at fair value through profit or loss.
Investments in equity-accounted entities
When there is an objective indication of impairment of an investment accounted for using the equity method, an impairment test must be carried out, in accordance with IAS 36 Impairment of assetsand IAS\u00a028 Investments in Associates and Joint Ventures. The recoverable amount of the asset is estimated in order to compare it to its carrying amount and, where applicable, to recognize an impairment loss for the surplus. The recoverable amount is the highest of either the fair value less costs to sell or the value in use. The value in use corresponds\u00a0to the future estimated discounted cash flows. When an impairment accounted for in an earlier period ceases to exist, the carrying amount is partially or totally restored. The reversal of an impairment loss is recorded immediately in profit.
Property, plant and equipment and intangible assets
At every reporting date, the group reviews the carrying amount of intangible assets and property, plant and equipment with finite useful life in order to assess whether there is any evidence of impairment of these assets.
If there is any evidence of impairment, the asset\u2019s recoverable amount is estimated to compare it with its carrying amount. The recoverable amount is the higher of the asset\u2019s net sale price or its value in use. The value in use is the present value of estimated future cash flows from the continuous use of an asset. Where it is not possible to estimate the recoverable amount of an asset individually, the group estimates the recoverable amount of the CGU to which the asset belongs. If the recoverable amount of the asset or of the CGU is estimated to be less than the carrying amount, the carrying value of the asset or of the CGU is lowered to its recoverable amount. An impairment loss is immediately recognized in expenses.
When an impairment recorded during past financial years is no longer justified, the impairment loss on this asset or CGU is reversed in order to bring the asset or CGU back to a value corresponding to the new valuation of its recoverable amount.
However, the carrying value of an asset or CGU may not exceed, following reversal of an impairment loss, the carrying value it would have had if no impairment had been recognized for the asset or CGU in previous years. The reversal of an impairment loss is recognized immediately as income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f100286": { "value": "In addition, in valuing goodwill as outlined above, the amount of the non-controlling interests can be valued on a case by case basis and at GBL\u2019s choice, either at fair value (the so-called \u201cfull goodwill\u201d option) or at the share of the identifiable net asset in the acquired entity.
When an activity is put up for sale, a share of the goodwill of the CGU to which the activity belongs is allocated to it and included in the measurement of its carrying amount. This allocation is made on the basis of the relative fair values of the business for sale and the retained portion of the CGU.
Finally, where there are options to purchase non-controlling interests, the group has opted to eliminate any non-controlling interests at the time of acquisition. The financial liability resulting from this contract is reevaluated at each closing, with any subsequent change recognized in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__37-1": { "value": "Property, plant and equipment
Fully owned property, plant and equipment
Items of property, plant and equipment are recorded under assets if they are controlled as a result of a deed of ownership. Items of property, plant and equipment are initially valued at acquisition or production cost.
The cost of property, plant and equipment includes the cost of loans contracted to finance their construction or production when they necessitate a substantial period of time. The cost of the assets is reduced, where appropriate, by the amount of public subsidies used to finance their acquisition or construction.
Maintenance and repair costs are immediately expensed under \u201cOther operating income (expenses) from operating activities\u201d. The cost of property, plant and equipment includes, in particular for satellite industrial installations built on clients\u2019 land, the present value of the rehabilitation or dismantling obligation, where such an obligation exists. Property, plant and equipment are subsequently valued at cost less accumulated depreciation and any accumulated impairment losses.
Leasehold property, plant and equipment
All contracts that convey the right to use an item of non-substitutable property, plant and equipment for a period of time in exchange for consideration are recognized as right-of-use assets against a lease liability. This treatment applies to all leases except mine land leases, which are recognized in the manner described in the following paragraph, as well as immaterial leases (leases with terms of 12\u2248months or less and leases of low-value assets), for which payments are recognized as an expense.
At Imerys level, easements, especially for pipelines used to connect mineral deposits, processing facilities and shipping facilities are analyzed as non-mine land leases. Right-of-use assets are initially measured at the value of the lease liability, plus any initial direct costs and equipment dismantling costs where necessary. Lease liabilities are measured at the discounted value of future lease payments due in accordance with a contractual payment schedule, adjusted for rent-free periods. Payments are therefore scheduled through to the reasonably certain end date of the lease, reflecting the date beyond which the lease ceases to be legally enforceable. This date represents the end of the lease, adjusted for any options the lessee is able to exercise regarding early termination or extension and any restrictions the lessor is able to exercise. The lease payments taken into account in the calculation of the lease liabilities include the unconditional payments due in exchange for the right to use the asset, as well as the cost related to the early termination, extension or purchase clauses when it is reasonably certain they will be exercised.
The liability calculation excludes any variable payment related to the use of the asset (at the level of Imerys, for example, a payment dependent on the actual number of hours a piece of mining equipment is used), as well as any payment for services rendered by the lessor (for example, at Imerys, rail car maintenance). In the absence of implicit interest rates, future payments determined in this way are discounted using the lessees\u2019 incremental borrowing rate.
The first time deferred tax assets and liabilities are recognized, they are calculated separately for lease liabilities and right-of-use assets, respectively. In subsequent years, right-of-use assets are amortized under the headings \u201cOther operating income (expenses) from investing activities\u201d or \u201cDepreciation/amortization of property, plant, equipment and intangible assets\u201d of the consolidated income statement and lease liabilities are measured at amortized cost, which generates an interest expense that is recognized in financial income (loss).
When an option is exercised, the lease must be reassessed to symmetrically adjust the carrying amounts of the lease liability and the right of use.
Any modification to leases gives rise to such a symmetrical adjustment, except when the scope of the lease is restricted to reduce the capacity of the asset leased or the duration of the lease. In this situation, the carrying amount of the lease liability and the right-of-use are reduced in proportion to the reduction of the scope, impacting the income statement.
Mining assets
In the absence of any specific applicable standard or interpretation, Imerys has defined the following methods to recognize and measure mining assets. Prospection expenditure, i.e., searching for new sites with mineral producing potential and studying the technical feasibility and commercial viability of a geographical area, is immediately recognized as an expense under the heading \u201cOther operating income (expenses) from operating activities\u201d. Mineral reserves are included in property, plant and equipment. Freehold mineral deposits are initially measured at acquisition cost minus subsoil. Leasehold mineral deposits are measured at a value of nil if the lease is entered into in the ordinary course of business. If the lease is acquired through a business combination, the acquisition cost of the deposit is measured at the fair value of the ore.
Costs incurred to determine the tonnage of ore present in the deposit are added to the acquisition cost. Overburden work, i.e., the process of removing the topsoil to gain access to the deposit, is considered a component of mineral reserve assets. The initial measurement of overburden work includes production cost and the discounted value of restoration obligations as a result of the deterioration caused by such work. Mineral reserves and overburden assets are included under the heading \u201cProperty, plant and equipment\u201d. Mining assets are subsequently measured at cost, minus accumulated depreciation and any impairment loss.
Depreciation
Depreciation expense is spread over the expected useful life of the different categories of property, plant and equipment using the straight- line method. The estimated useful lives of the most significant items of property, plant and equipment fall into the following ranges:
buildings: 10 to 50 years;
industrial constructions: 10 to 30 years;
fixtures and fittings of buildings and constructions: 5 to 23 years;
machinery, equipment and technical fittings: 5 to 20 years;
vehicles: 2 to 9 years; and
other property, plant and equipment: 10 to 20 years.
Land is not\u00a0depreciated.
Right-of-use assets held through leases are depreciated over the reasonably certain end date of the lease, unless the lessee is considering exercising their right to purchase the asset. In that case, the useful life of the asset leased is applied. Rights-of-use are depreciated or amortized on a straight-line basis, except, for Imerys, those applicable to bulk carriers, which are depreciated by the number of journeys made. Freehold and leasehold equipment is depreciated over its useful life, up to the end of the reasonably certain end date of the lease. Furthermore, Imerys does not consider the straight-line depreciation method appropriate to reflect the consumption of property, plant and equipment related to mining activities such as mineral reserves and overburden assets as well as certain industrial assets of discontinuous use.
Depreciation of mining assets is therefore estimated in units of production on the basis of actual extraction, while operational monitoring units such as production or operating hours are used to estimate depreciation of industrial assets.
A mineral reserve is depreciated to the quantity of the geological inventory of the deposit minus discounts for the geological uncertainty inherent to the resources. Overburden assets, a component of mineral reserve assets, are depreciated over the quantity of reserve to which they specifically give access. Subsoil, i.e.,\u00a0the area of land not part of the mineral deposit, is not depreciated since it is not consumed by mining operations.
Property, plant and equipment and intangible assets
At every reporting date, the group reviews the carrying amount of intangible assets and property, plant and equipment with finite useful life in order to assess whether there is any evidence of impairment of these assets.
If there is any evidence of impairment, the asset\u2019s recoverable amount is estimated to compare it with its carrying amount. The recoverable amount is the higher of the asset\u2019s net sale price or its value in use. The value in use is the present value of estimated future cash flows from the continuous use of an asset. Where it is not possible to estimate the recoverable amount of an asset individually, the group estimates the recoverable amount of the CGU to which the asset belongs. If the recoverable amount of the asset or of the CGU is estimated to be less than the carrying amount, the carrying value of the asset or of the CGU is lowered to its recoverable amount. An impairment loss is immediately recognized in expenses.
When an impairment recorded during past financial years is no longer justified, the impairment loss on this asset or CGU is reversed in order to bring the asset or CGU back to a value corresponding to the new valuation of its recoverable amount.
However, the carrying value of an asset or CGU may not exceed, following reversal of an impairment loss, the carrying value it would have had if no impairment had been recognized for the asset or CGU in previous years. The reversal of an impairment loss is recognized immediately as income.
Note 11Property, plant and equipment
In EUR\u00a0million | Land and buildings | Mineral reserves | Fittings, machinery, equipment and rolling stock | Right-of-use assets | Assets under construction | Other property, plant and equipment | Total |
Gross carrying amount | |||||||
As of December 31, 2021 | 601.6 | 966.1 | 4,400.2 | 694.5 | 262.6 | 254.5 | 7,179.5 |
Investments | 13.3 | 72.1 | 119.1 | 290.2 | 255.1 | 85.4 | 835.2 |
Changes in group structure/Business combinations | 243.0 | - | 468.9 | 421.9 | 10.8 | 104.0 | 1,248.7 |
Disposals and retirements | (21.6) | (0.2) | (92.0) | (35.6) | (1.8) | (25.5) | (176.6) |
Foreign currency translation adjustments | 6.4 | 26.7 | 30.0 | (10.8) | 6.9 | (6.3) | 52.8 |
Other | (113.5) | (88.2) | (908.9) | (109.9) | (262.3) | 308.0 | (1,174.9) |
As of December 31, 2022 | 729.2 | 976.4 | 4,017.3 | 1,250.3 | 271.3 | 720.1 | 7,964.6 |
Investments | 18.4 | 61.7 | 96.6 | 165.2 | 279.6 | 54.9 | 676.5 |
Changes in group structure/Business combinations | 16.4 | 0.4 | 16.0 | 78.2 | 0.1 | 5.8 | 117.0 |
Disposals and retirements | (6.0) | (12.0) | (154.7) | (88.1) | (1.6) | (25.8) | (288.2) |
Foreign currency translation adjustments | (1.4) | (15.4) | (30.9) | (0.1) | (1.7) | (1.8) | (51.3) |
Other | 23.0 | (49.2) | 365.5 | (437.9) | (213.8) | (328.0) | (640.4) |
As of December 31, 2023 | 779.6 | 961.9 | 4,309.8 | 967.8 | 333.9 | 425.2 | 7,778.2 |
Cumulated depreciation | |||||||
As of December 31, 2021 | (277.5) | (547.0) | (3,193.0) | (229.9) | (24.1) | (158.0) | (4,429.5) |
Depreciation | (24.8) | (57.0) | (186.6) | (153.9) | (1.7) | (78.1) | (502.0) |
Impairment (losses)/reversals | (2.3) | - | 0.0 | - | - | 1.5 | (0.8) |
Disposals and retirements | 12.8 | 0.2 | 71.8 | 29.8 | 0.3 | 24.1 | 138.9 |
Foreign currency translation adjustments | (4.6) | (16.8) | (23.3) | 2.1 | (1.8) | 3.0 | (41.4) |
Changes in group structure/Other | (77.1) | 59.7 | 452.5 | (30.9) | 22.7 | (268.2) | 158.7 |
As of December 31, 2022 | (373.3) | (560.9) | (2,878.5) | (382.8) | (4.6) | (475.7) | (4,675.9) |
Depreciation | (27.1) | (50.0) | (191.0) | (138.4) | 0.7 | (44.5) | (450.2) |
Impairment (losses)/reversals | (16.0) | (33.5) | (141.6) | (5.0) | (10.8) | (2.3) | (209.2) |
Disposals and retirements | 4.1 | 11.7 | 133.8 | 41.1 | - | 25.2 | 215.9 |
Foreign currency translation adjustments | (0.1) | 8.3 | 22.0 | 1.8 | 0.1 | 1.9 | 34.1 |
Changes in group structure/Other | 0.5 | 53.6 | (159.1) | 185.9 | 1.0 | 202.5 | 284.3 |
As of December 31, 2023 | (411.9) | (570.9) | (3,214.4) | (297.2) | (13.8) | (293.0) | (4,801.2) |
Net carrying amount\u00a0 | |||||||
As of December 31, 2021 | 324.1 | 419.0 | 1,207.2 | 464.7 | 238.5 | 96.5 | 2,750.0 |
As of December 31, 2022 | 355.8 | 415.5 | 1,138.7 | 867.5 | 266.7 | 244.4 | 3,288.6 |
As of December 31, 2023 | 367.6 | 391.1 | 1,095.4 | 670.5 | 320.1 | 132.2 | 2,976.9 |
Of which: Holding | - | - | 1.0 | 10.8 | - | 1.8 | 13.6 |
Imerys | 231.5 | 391.1 | 915.7 | 151.4 | 287.3 | 41.4 | 2,018.4 |
Canyon | 2.8 | - | 21.2 | 41.9 | 0.3 | - | 66.2 |
Affidea | 123.7 | - | 104.1 | 307.1 | 29.3 | 12.3 | 576.5 |
Sanoptis | 9.6 | - | 52.8 | 139.5 | 3.2 | 75.1 | 280.2 |
GBL Capital and SIM | - | - | 0.5 | 19.9 | - | 1.6 | 22.0 |
The depreciation charges for the various periods are shown under \u201cOther operating income (expenses) from investing activities\u201d and\u201cDepreciation/amortization of property, plant, equipment and intangible assets\u2013consolidated operating activities\u201d in the consolidated income\u00a0statement.
In 2023, impairment losses net of reversals were recognized by Imerys on its property, plant and equipment in the amount of EUR\u00a0209\u00a0million (EUR\u00a018\u00a0million in 2022). Impairment losses recognized in 2023 mainly concern operations serving the paper market and the restructuring of industrial assets serving the Refractories market in China and Europe.
The item \u201cChanges in group structure/Business combination\u201d in 2023 mainly includes the reclassification of Webhelp\u2019s property, plant and equipment to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Leases
The group uses leases to obtain from the lessor the right to use certain mining, industrial and logistics equipment, as well as real estate administrative, industrial and logistical property. As of December\u00a031, 2023, the value of these rights, recognized in\u201cRight-of-use assets\u201d, amounted to EUR\u00a0670million (EUR\u00a0868\u00a0million as of December\u00a031, 2022).\u201cRight-of-use assets\u201d represent the following assets:
In EUR\u00a0million | Land and buildings | Mineral reserves | Plants, machinery, equipment and rolling stock | Assets under construction | Other property, plant and equipment | Total |
Gross carrying amount | ||||||
As of December 31, 2021 | 474.7 | - | 101.0 | - | 118.8 | 694.5 |
Investments | 222.1 | - | 41.0 | - | 27.2 | 290.2 |
Changes in group structure/Business combinations | 298.2 | - | 114.0 | - | 9.7 | 421.9 |
Disposals and retirements | (32.3) | - | (6.1) | - | 2.7 | (35.6) |
Foreign currency translation adjustments | 1.5 | - | (16.8) | - | 4.5 | (10.8) |
Other | (78.6) | - | (21.1) | - | (10.1) | (109.9) |
As of December 31, 2022 | 885.6 | - | 211.9 | - | 152.8 | 1,250.3 |
Investments | 94.7 | - | 48.6 | - | 22.0 | 165.2 |
Changes in group structure/Business combinations | 77.1 | - | 0.1 | - | 1.0 | 78.2 |
Disposals and retirements | (17.6) | - | (1.0) | - | (69.6) | (88.1) |
Foreign currency translation adjustments | (0.2) | - | 0.7 | - | (0.6) | (0.1) |
Other | (396.7) | - | (33.2) | - | (8.1) | (437.9) |
As of December 31, 2023 | 643.0 | - | 227.2 | - | 97.5 | 967.8 |
Cumulated depreciation | ||||||
As of December 31, 2021 | (129.9) | - | (51.7) | - | (48.2) | (229.9) |
Depreciation | (104.9) | - | (26.0) | - | (22.9) | (153.9) |
Impairment (losses)/reversals | 0.2 | - | (0.1) | - | (0.1) | - |
Disposals and retirements | 27.4 | - | 2.4 | - | - | 29.8 |
Foreign currency translation adjustments | (10.9) | - | 17.6 | - | (4.6) | 2.1 |
Changes in group structure/Other | (16.8) | - | (19.0) | - | 4.9 | (30.9) |
As of December 31, 2022 | (234.9) | - | (76.9) | - | (71.0) | (382.8) |
Depreciation | (91.8) | - | (29.0) | - | (17.6) | (138.4) |
Impairment (losses)/reversals | - | - | - | - | (5.0) | (5.0) |
Disposals and retirements | 13.9 | - | 0.9 | - | 26.2 | 41.1 |
Foreign currency translation adjustments | 0.9 | - | 0.2 | - | 0.8 | 1.8 |
Changes in group structure/Other | 158.0 | - | 22.0 | - | 5.9 | 185.9 |
As of December 31, 2023 | (153.8) | - | (82.8) | - | (60.7) | (297.2) |
Net carrying amount\u00a0 | ||||||
As of December 31, 2021 | 344.8 | - | 49.3 | - | 70.6 | 464.7 |
As of December 31, 2022 | 650.7 | - | 135.1 | - | 81.8 | 867.5 |
As of December 31, 2023 | 489.2 | - | 144.4 | - | 36.8 | 670.5 |
Of which: Holding | 10.8 | - | - | - | - | 10.8 |
Imerys | 88.1 | - | 37.7 | - | 25.6 | 151.4 |
Canyon | 40.6 | - | 1.3 | - | - | 41.9 |
Affidea | 202.5 | - | 104.5 | - | - | 307.1 |
Sanoptis | 131.7 | - | 0.5 | - | 7.2 | 139.5 |
GBL Capital and SIM | 15.3 | - | 0.3 | - | 4.3 | 19.9 |
The right-of-use and lease liability model is applied to all leases, except leases with a term of 12 months or less, leases of low-value assets and variable lease payments and services, which are recognized in expenses (EUR\u00a081\u00a0million in 2023 and EUR\u00a041\u00a0million in 2022). As of December\u00a031, 2023, \u201clease liabilities\u201d recognized against \u201cright-of-use assets\u201d amounted to EUR\u00a0683\u00a0million (EUR\u00a0908\u00a0million as of December\u00a031, 2022) and generated an interest expense of EUR\u00a028\u00a0million recognized in financial income (expenses). Cash payments made in 2023 totaled EUR\u00a0173\u00a0million, broken down as EUR\u00a0145\u00a0million for the principal and EUR\u00a028\u00a0million in interest, respectively in financing and operating activities in the consolidated statement of cash flows (respectively EUR\u00a0253\u00a0million, EUR\u00a0217\u00a0million and EUR\u00a036\u00a0million in 2022). The group does not generate any significant revenue from leasing the freehold assets it owns, nor from the sub-lease of assets leased.
Property, plant and equipment
Fully owned property, plant and equipment
Items of property, plant and equipment are recorded under assets if they are controlled as a result of a deed of ownership. Items of property, plant and equipment are initially valued at acquisition or production cost.
The cost of property, plant and equipment includes the cost of loans contracted to finance their construction or production when they necessitate a substantial period of time. The cost of the assets is reduced, where appropriate, by the amount of public subsidies used to finance their acquisition or construction.
Maintenance and repair costs are immediately expensed under \u201cOther operating income (expenses) from operating activities\u201d. The cost of property, plant and equipment includes, in particular for satellite industrial installations built on clients\u2019 land, the present value of the rehabilitation or dismantling obligation, where such an obligation exists. Property, plant and equipment are subsequently valued at cost less accumulated depreciation and any accumulated impairment losses.
Leasehold property, plant and equipment
All contracts that convey the right to use an item of non-substitutable property, plant and equipment for a period of time in exchange for consideration are recognized as right-of-use assets against a lease liability. This treatment applies to all leases except mine land leases, which are recognized in the manner described in the following paragraph, as well as immaterial leases (leases with terms of 12\u2248months or less and leases of low-value assets), for which payments are recognized as an expense.
At Imerys level, easements, especially for pipelines used to connect mineral deposits, processing facilities and shipping facilities are analyzed as non-mine land leases. Right-of-use assets are initially measured at the value of the lease liability, plus any initial direct costs and equipment dismantling costs where necessary. Lease liabilities are measured at the discounted value of future lease payments due in accordance with a contractual payment schedule, adjusted for rent-free periods. Payments are therefore scheduled through to the reasonably certain end date of the lease, reflecting the date beyond which the lease ceases to be legally enforceable. This date represents the end of the lease, adjusted for any options the lessee is able to exercise regarding early termination or extension and any restrictions the lessor is able to exercise. The lease payments taken into account in the calculation of the lease liabilities include the unconditional payments due in exchange for the right to use the asset, as well as the cost related to the early termination, extension or purchase clauses when it is reasonably certain they will be exercised.
The liability calculation excludes any variable payment related to the use of the asset (at the level of Imerys, for example, a payment dependent on the actual number of hours a piece of mining equipment is used), as well as any payment for services rendered by the lessor (for example, at Imerys, rail car maintenance). In the absence of implicit interest rates, future payments determined in this way are discounted using the lessees\u2019 incremental borrowing rate.
The first time deferred tax assets and liabilities are recognized, they are calculated separately for lease liabilities and right-of-use assets, respectively. In subsequent years, right-of-use assets are amortized under the headings \u201cOther operating income (expenses) from investing activities\u201d or \u201cDepreciation/amortization of property, plant, equipment and intangible assets\u201d of the consolidated income statement and lease liabilities are measured at amortized cost, which generates an interest expense that is recognized in financial income (loss).
When an option is exercised, the lease must be reassessed to symmetrically adjust the carrying amounts of the lease liability and the right of use.
Any modification to leases gives rise to such a symmetrical adjustment, except when the scope of the lease is restricted to reduce the capacity of the asset leased or the duration of the lease. In this situation, the carrying amount of the lease liability and the right-of-use are reduced in proportion to the reduction of the scope, impacting the income statement.
Mining assets
In the absence of any specific applicable standard or interpretation, Imerys has defined the following methods to recognize and measure mining assets. Prospection expenditure, i.e., searching for new sites with mineral producing potential and studying the technical feasibility and commercial viability of a geographical area, is immediately recognized as an expense under the heading \u201cOther operating income (expenses) from operating activities\u201d. Mineral reserves are included in property, plant and equipment. Freehold mineral deposits are initially measured at acquisition cost minus subsoil. Leasehold mineral deposits are measured at a value of nil if the lease is entered into in the ordinary course of business. If the lease is acquired through a business combination, the acquisition cost of the deposit is measured at the fair value of the ore.
Costs incurred to determine the tonnage of ore present in the deposit are added to the acquisition cost. Overburden work, i.e., the process of removing the topsoil to gain access to the deposit, is considered a component of mineral reserve assets. The initial measurement of overburden work includes production cost and the discounted value of restoration obligations as a result of the deterioration caused by such work. Mineral reserves and overburden assets are included under the heading \u201cProperty, plant and equipment\u201d. Mining assets are subsequently measured at cost, minus accumulated depreciation and any impairment loss.
Depreciation
Depreciation expense is spread over the expected useful life of the different categories of property, plant and equipment using the straight- line method. The estimated useful lives of the most significant items of property, plant and equipment fall into the following ranges:
buildings: 10 to 50 years;
industrial constructions: 10 to 30 years;
fixtures and fittings of buildings and constructions: 5 to 23 years;
machinery, equipment and technical fittings: 5 to 20 years;
vehicles: 2 to 9 years; and
other property, plant and equipment: 10 to 20 years.
Land is not\u00a0depreciated.
Right-of-use assets held through leases are depreciated over the reasonably certain end date of the lease, unless the lessee is considering exercising their right to purchase the asset. In that case, the useful life of the asset leased is applied. Rights-of-use are depreciated or amortized on a straight-line basis, except, for Imerys, those applicable to bulk carriers, which are depreciated by the number of journeys made. Freehold and leasehold equipment is depreciated over its useful life, up to the end of the reasonably certain end date of the lease. Furthermore, Imerys does not consider the straight-line depreciation method appropriate to reflect the consumption of property, plant and equipment related to mining activities such as mineral reserves and overburden assets as well as certain industrial assets of discontinuous use.
Depreciation of mining assets is therefore estimated in units of production on the basis of actual extraction, while operational monitoring units such as production or operating hours are used to estimate depreciation of industrial assets.
A mineral reserve is depreciated to the quantity of the geological inventory of the deposit minus discounts for the geological uncertainty inherent to the resources. Overburden assets, a component of mineral reserve assets, are depreciated over the quantity of reserve to which they specifically give access. Subsoil, i.e.,\u00a0the area of land not part of the mineral deposit, is not depreciated since it is not consumed by mining operations.
Property, plant and equipment and intangible assets
At every reporting date, the group reviews the carrying amount of intangible assets and property, plant and equipment with finite useful life in order to assess whether there is any evidence of impairment of these assets.
If there is any evidence of impairment, the asset\u2019s recoverable amount is estimated to compare it with its carrying amount. The recoverable amount is the higher of the asset\u2019s net sale price or its value in use. The value in use is the present value of estimated future cash flows from the continuous use of an asset. Where it is not possible to estimate the recoverable amount of an asset individually, the group estimates the recoverable amount of the CGU to which the asset belongs. If the recoverable amount of the asset or of the CGU is estimated to be less than the carrying amount, the carrying value of the asset or of the CGU is lowered to its recoverable amount. An impairment loss is immediately recognized in expenses.
When an impairment recorded during past financial years is no longer justified, the impairment loss on this asset or CGU is reversed in order to bring the asset or CGU back to a value corresponding to the new valuation of its recoverable amount.
However, the carrying value of an asset or CGU may not exceed, following reversal of an impairment loss, the carrying value it would have had if no impairment had been recognized for the asset or CGU in previous years. The reversal of an impairment loss is recognized immediately as income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f100554": { "value": "Maintenance and repair costs are immediately expensed under \u201cOther operating income (expenses) from operating activities\u201d. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__40-1": { "value": "The cost of property, plant and equipment includes, in particular for satellite industrial installations built on clients\u2019 land, the present value of the rehabilitation or dismantling obligation, where such an obligation exists. Right-of-use assets are initially measured at the value of the lease liability, plus any initial direct costs and equipment dismantling costs where necessary. Overburden work, i.e., the process of removing the topsoil to gain access to the deposit, is considered a component of mineral reserve assets. The initial measurement of overburden work includes production cost and the discounted value of restoration obligations as a result of the deterioration caused by such work. Mineral reserves and overburden assets are included under the heading \u201cProperty, plant and equipment\u201d. Mining assets are subsequently measured at cost, minus accumulated depreciation and any impairment loss.Provisions are recognized in profit or loss, apart from provisions for decommissioning and some provisions for rehabilitation, whose counterpart is included in the cost of assets whose construction has created the obligation. This treatment applies in particular to some of Imerys\u2019 industrial installations and overburden mineral assets.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForStrippingCostsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__41-1": { "value": "Leasehold property, plant and equipment
All contracts that convey the right to use an item of non-substitutable property, plant and equipment for a period of time in exchange for consideration are recognized as right-of-use assets against a lease liability. This treatment applies to all leases except mine land leases, which are recognized in the manner described in the following paragraph, as well as immaterial leases (leases with terms of 12\u2248months or less and leases of low-value assets), for which payments are recognized as an expense.
At Imerys level, easements, especially for pipelines used to connect mineral deposits, processing facilities and shipping facilities are analyzed as non-mine land leases. Right-of-use assets are initially measured at the value of the lease liability, plus any initial direct costs and equipment dismantling costs where necessary. Lease liabilities are measured at the discounted value of future lease payments due in accordance with a contractual payment schedule, adjusted for rent-free periods. Payments are therefore scheduled through to the reasonably certain end date of the lease, reflecting the date beyond which the lease ceases to be legally enforceable. This date represents the end of the lease, adjusted for any options the lessee is able to exercise regarding early termination or extension and any restrictions the lessor is able to exercise. The lease payments taken into account in the calculation of the lease liabilities include the unconditional payments due in exchange for the right to use the asset, as well as the cost related to the early termination, extension or purchase clauses when it is reasonably certain they will be exercised.
The liability calculation excludes any variable payment related to the use of the asset (at the level of Imerys, for example, a payment dependent on the actual number of hours a piece of mining equipment is used), as well as any payment for services rendered by the lessor (for example, at Imerys, rail car maintenance). In the absence of implicit interest rates, future payments determined in this way are discounted using the lessees\u2019 incremental borrowing rate.
The first time deferred tax assets and liabilities are recognized, they are calculated separately for lease liabilities and right-of-use assets, respectively. In subsequent years, right-of-use assets are amortized under the headings \u201cOther operating income (expenses) from investing activities\u201d or \u201cDepreciation/amortization of property, plant, equipment and intangible assets\u201d of the consolidated income statement and lease liabilities are measured at amortized cost, which generates an interest expense that is recognized in financial income (loss).
When an option is exercised, the lease must be reassessed to symmetrically adjust the carrying amounts of the lease liability and the right of use.
Any modification to leases gives rise to such a symmetrical adjustment, except when the scope of the lease is restricted to reduce the capacity of the asset leased or the duration of the lease. In this situation, the carrying amount of the lease liability and the right-of-use are reduced in proportion to the reduction of the scope, impacting the income statement.
Leasehold mineral deposits are measured at a value of nil if the lease is entered into in the ordinary course of business. Right-of-use assets held through leases are depreciated over the reasonably certain end date of the lease, unless the lessee is considering exercising their right to purchase the asset. In that case, the useful life of the asset leased is applied. Rights-of-use are depreciated or amortized on a straight-line basis, except, for Imerys, those applicable to bulk carriers, which are depreciated by the number of journeys made. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f101157": { "value": "Mining assets
In the absence of any specific applicable standard or interpretation, Imerys has defined the following methods to recognize and measure mining assets. Prospection expenditure, i.e., searching for new sites with mineral producing potential and studying the technical feasibility and commercial viability of a geographical area, is immediately recognized as an expense under the heading \u201cOther operating income (expenses) from operating activities\u201d. Mineral reserves are included in property, plant and equipment. Freehold mineral deposits are initially measured at acquisition cost minus subsoil. Leasehold mineral deposits are measured at a value of nil if the lease is entered into in the ordinary course of business. If the lease is acquired through a business combination, the acquisition cost of the deposit is measured at the fair value of the ore.
Costs incurred to determine the tonnage of ore present in the deposit are added to the acquisition cost. Overburden work, i.e., the process of removing the topsoil to gain access to the deposit, is considered a component of mineral reserve assets. The initial measurement of overburden work includes production cost and the discounted value of restoration obligations as a result of the deterioration caused by such work. Mineral reserves and overburden assets are included under the heading \u201cProperty, plant and equipment\u201d. Mining assets are subsequently measured at cost, minus accumulated depreciation and any impairment loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMiningAssetsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f101158": { "value": "Mining assets
In the absence of any specific applicable standard or interpretation, Imerys has defined the following methods to recognize and measure mining assets. Prospection expenditure, i.e., searching for new sites with mineral producing potential and studying the technical feasibility and commercial viability of a geographical area, is immediately recognized as an expense under the heading \u201cOther operating income (expenses) from operating activities\u201d. Mineral reserves are included in property, plant and equipment. Freehold mineral deposits are initially measured at acquisition cost minus subsoil. Leasehold mineral deposits are measured at a value of nil if the lease is entered into in the ordinary course of business. If the lease is acquired through a business combination, the acquisition cost of the deposit is measured at the fair value of the ore.
Costs incurred to determine the tonnage of ore present in the deposit are added to the acquisition cost. Overburden work, i.e., the process of removing the topsoil to gain access to the deposit, is considered a component of mineral reserve assets. The initial measurement of overburden work includes production cost and the discounted value of restoration obligations as a result of the deterioration caused by such work. Mineral reserves and overburden assets are included under the heading \u201cProperty, plant and equipment\u201d. Mining assets are subsequently measured at cost, minus accumulated depreciation and any impairment loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMiningRightsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__47-1": { "value": "Depreciation
Depreciation expense is spread over the expected useful life of the different categories of property, plant and equipment using the straight- line method. The estimated useful lives of the most significant items of property, plant and equipment fall into the following ranges:
buildings: 10 to 50 years;
industrial constructions: 10 to 30 years;
fixtures and fittings of buildings and constructions: 5 to 23 years;
machinery, equipment and technical fittings: 5 to 20 years;
vehicles: 2 to 9 years; and
other property, plant and equipment: 10 to 20 years.
Land is not\u00a0depreciated.
Right-of-use assets held through leases are depreciated over the reasonably certain end date of the lease, unless the lessee is considering exercising their right to purchase the asset. In that case, the useful life of the asset leased is applied. Rights-of-use are depreciated or amortized on a straight-line basis, except, for Imerys, those applicable to bulk carriers, which are depreciated by the number of journeys made. Freehold and leasehold equipment is depreciated over its useful life, up to the end of the reasonably certain end date of the lease. Furthermore, Imerys does not consider the straight-line depreciation method appropriate to reflect the consumption of property, plant and equipment related to mining activities such as mineral reserves and overburden assets as well as certain industrial assets of discontinuous use.
Depreciation of mining assets is therefore estimated in units of production on the basis of actual extraction, while operational monitoring units such as production or operating hours are used to estimate depreciation of industrial assets.
A mineral reserve is depreciated to the quantity of the geological inventory of the deposit minus discounts for the geological uncertainty inherent to the resources. Overburden assets, a component of mineral reserve assets, are depreciated over the quantity of reserve to which they specifically give access. Subsoil, i.e.,\u00a0the area of land not part of the mineral deposit, is not depreciated since it is not consumed by mining operations.
Impairment of assets
Other equity investments
Other equity investments are not subject to impairment tests since any decrease in fair value, even significant or prolonged, is still recognized in equity for financial assets recognized at fair value through equity or, directly in profit or loss for financial assets recognized at fair value through profit or loss.
Investments in equity-accounted entities
When there is an objective indication of impairment of an investment accounted for using the equity method, an impairment test must be carried out, in accordance with IAS 36 Impairment of assetsand IAS\u00a028 Investments in Associates and Joint Ventures. The recoverable amount of the asset is estimated in order to compare it to its carrying amount and, where applicable, to recognize an impairment loss for the surplus. The recoverable amount is the highest of either the fair value less costs to sell or the value in use. The value in use corresponds\u00a0to the future estimated discounted cash flows. When an impairment accounted for in an earlier period ceases to exist, the carrying amount is partially or totally restored. The reversal of an impairment loss is recorded immediately in profit.
Property, plant and equipment and intangible assets
At every reporting date, the group reviews the carrying amount of intangible assets and property, plant and equipment with finite useful life in order to assess whether there is any evidence of impairment of these assets.
If there is any evidence of impairment, the asset\u2019s recoverable amount is estimated to compare it with its carrying amount. The recoverable amount is the higher of the asset\u2019s net sale price or its value in use. The value in use is the present value of estimated future cash flows from the continuous use of an asset. Where it is not possible to estimate the recoverable amount of an asset individually, the group estimates the recoverable amount of the CGU to which the asset belongs. If the recoverable amount of the asset or of the CGU is estimated to be less than the carrying amount, the carrying value of the asset or of the CGU is lowered to its recoverable amount. An impairment loss is immediately recognized in expenses.
When an impairment recorded during past financial years is no longer justified, the impairment loss on this asset or CGU is reversed in order to bring the asset or CGU back to a value corresponding to the new valuation of its recoverable amount.
However, the carrying value of an asset or CGU may not exceed, following reversal of an impairment loss, the carrying value it would have had if no impairment had been recognized for the asset or CGU in previous years. The reversal of an impairment loss is recognized immediately as income.
Trade receivables and other financial assets
IFRS 9 Financial Instrumentsrequires the application of a model based on anticipated losses on trade receivables and other financial assets. In particular, IFRS 9 requires, among other things, that the group recognizes an impairment loss on trade receivables and other financial assets as of the initial recognition date thereof.
The assessment of expected credit losses is made on an individual or collective basis taking into account historical data on late payments, information on current circumstances, as well as forward-looking information.
Taxes
Income taxes of the financial year include both current and deferred taxes. They are recorded in the income statement unless they relate to items directly recorded in shareholders\u2019 equity, in which case they are also recorded in shareholders\u2019 equity.
Current taxes are the taxes to be paid on the taxable profit for the financial year and are calculated in accordance with the tax rates in effect or that will be in effect on the last day of the financial year, plus any adjustments relating to prior years.
Deferred taxes are calculated in accordance with the liability method, which is applied to the temporary differences between the carrying amount and tax basis of the assets and liabilities recorded in the balance sheet.
The following tax differences are disregarded: non tax-deductible goodwill and initial valuations of assets and liabilities not affecting the accounting and taxable profit.
Deferred taxes are calculated according to the manner in which the related assets and liabilities are expected to be realized or settled, based on the tax rates in effect or that will be in effect on the last day of the financial year.
Additionally, deferred tax liabilities related to investments in subsidiaries are not recorded when the group is able to control the date on which the temporary difference will reverse and when the group does not expect the temporary difference to reverse in the foreseeable future.
Deferred tax assets are recorded if the taxable profits are likely to materialize in such a manner as to allow them to be offset against tax losses and tax credits.
Finally, deferred tax assets and liabilities are offset by tax entity when the latter has the right to offset its current tax assets and liabilities and that the deferred tax assets and liabilities in question are levied by the same tax authority.
Incentive plans
Equity-settled share-based plans
GBL and Imerys stock options granted prior to November 7, 2002 have not been recorded in the consolidated financial statements in accordance with the transitional provisions of IFRS 2 Share-based Payment.
Incentive plans granted as from November 7, 2002 are accounted for in accordance with IFRS 2. In accordance with this standard, the fair value of the options on the date of allocation is recorded in the income statement for the period of acquisition of the rights (\u201cvesting period\u201d). The options are valued by means of a valuation model generally accepted based on the market conditions prevailing at the time of their grant.
Cash-settled share-based plans
If the arrangement is settled in cash, the group incurs a liability measured at fair value. Until the settlement of the liability, the fair value should be measured at each reporting date and at settlement date. The changes in fair value are recognized in the income statement of the period.
Retirement benefits and other post- employment benefits
Defined benefit plans
Commitments for defined benefit pension plans and similar obligations are valued using the projected credit unit method, in accordance with IAS 19 Employee Benefits. This valuation uses financial and demographic actuarial assumptions. These are used to value services rendered during the year on the basis of an estimate of the end-of-career salary.
The provisions or assets recognized correspond to the present value of the obligation less the fair value of the plan\u2019s assets, which may be capped. The discount rates used to discount the obligations and calculate the resulting normative return on the assets are determined by referring to the yields of bonds issued by AA (high quality) rated companies within the main iBoxx GBP and USD Corporate AA indexes. Where negative interest rates arise, they are applied as published, without a floor at zero.
Contributions to funds and direct payments to beneficiaries as well as contributions and payments related to restructuring are recorded under \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d. Contributions to closed deficit plans with compulsory funding are recorded under \u201cFinancial income (expenses) from operating activities\u201d. The effect of these contributions in income statement is neutralized by reversals of provisions recognized in each of the mentioned above. Other elements of the change in post- employment benefit plans are recorded in \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d, with the exception of the accretion of obligations and normative return on assets that are recognized under \u201cFinancial income (expenses) from investing activities\u201d or \u201cFinancial income (expenses) from operating activities\u201d.
Administrative costs are recorded in \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d, except for the administrative expenses of the closed deficit plans with compulsory funding that are recorded under \u201cOther financial income (expenses) from operational activities\u201d.
Plan amendments, reductions and liquidations are immediately recognized in profit or loss. Actuarial differences and caps relating to post-employment benefit plan assets are fully recognized in other comprehensive income, net of asset management fees, without reclassification to profit or loss in a subsequent period.
Defined contribution plans
The group participates, in accordance with the regulations and corporate practices of each country, in the creation of retirement reserves for its staff, paying contributions on a mandatory or voluntary basis to external bodies such as pension funds, insurance companies or financial institutions.
These plans are defined contribution plans, in other words they do not guarantee the level of benefits paid. These contributions are recorded under \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d.
Provisions
Provisions are recorded at the reporting date when a group entity has an actual (legal or implicit) obligation resulting from a past event, when it is probable that an amount will have to be paid out to settle this obligation, and if the amount of the obligation can be determined reliably.
The amount recorded as a provision should be the most accurate estimation of the expenditure required to meet the obligation existing at the reporting date.
Provisions are recognized in profit or loss, apart from provisions for decommissioning and some provisions for rehabilitation, whose counterpart is included in the cost of assets whose construction has created the obligation. This treatment applies in particular to some of Imerys\u2019 industrial installations and overburden mineral assets.
Provisions whose settlement is expected within twelve months after the reporting date or whose settlement may occur at any time are not discounted. Provisions whose settlement is expected more than twelve months after the reporting date are discounted.
Changes in discounted provisions resulting from a revision of the amount of the obligation, its calendar or its discount rate are recognized in profit or loss, or for provisions recognized against assets, as an adjustment of the cost of the assets. The discounting is recognized as a debit in financial income (expenses).
Provisions for restructuring costs are not recorded unless the group has approved a detailed and formal restructuring plan and if the restructuring has either begun or been publicly announced. Costs relating to the group\u2019s continuing operations are not taken into account.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__50-1": { "value": "Other equity investments
Other equity investments include investments in companies in which the group does not control nor exercise a significant influence, as defined above.
Other equity investments are either quoted or private assets or unquoted funds.
Quoted and private investments (SGS, Pernod Ricard, adidas, Umicore, Concentrix + Webhelp, Voodoo, etc.)
These investments are recorded at fair value based on their stock market price at each closing date for quoted investments and on the valuation methods used for private investments.
GBL has opted to account for changes in the fair value of quoted and private investments via equity (\u201cFinancial assets recognized at fair value through equity\u201d). These amounts will never be recycled in earnings, even in the event of the sale of securities or significant or prolonged loss of value. In the event of a sale, the accumulated revaluation reserves at the time of sale are reclassified to consolidated reserves.
Unquoted funds (Upfield, Sagard funds, Kartesia funds, Human capital funds, BDT Capital Partners II, Cepsa, etc.)
Investments in funds are revalued at each closing at their fair value, determined by the managers of these funds, according to their investment portfolio.
Based on the analysis of the characteristics of these unlisted funds, GBL determined that they were not eligible for the \u201cFair value through other comprehensive income\u201d option. Therefore, the changes in fair value are accounted for in profit or loss (\u201cFinancial assets recognized at fair value through profit or loss\u201d).
Other equity investments
Other equity investments are not subject to impairment tests since any decrease in fair value, even significant or prolonged, is still recognized in equity for financial assets recognized at fair value through equity or, directly in profit or loss for financial assets recognized at fair value through profit or loss.
Ontex, SGS, Umicore and Voodoo
GBL analyzed the accounting treatment to be applied to the investments in Ontex, SGS, Umicore and Voodoo and particularly the classification in (i) investments in associates (IAS 28), with the recognition of GBL\u2019s share in the profit or loss and shareholders\u2019 equity of Ontex, SGS, Umicore and Voodoo respectively or in (ii) other equity investments (IFRS 9), with the recognition of these investments at their fair value and the recognition of the dividend through profit or loss.
In accordance with IAS 28, it is assumed that a group does not exercise significant influence if the percentage holding is less than 20.00%, unless it can be clearly demonstrated. According to this standard, significant influence is usually demonstrated in the case of (i) representation on the Board of Directors, (ii) participation in policy-making processes, (iii) material transactions between the investor and the company owned, (iv) the interchange of managerial personnel or (v) the supply of critical technical information.
As of December\u00a031, 2023, those four investments are held respectively at 19.98%, 19.31%, 15.92% and 15.90%. The representation on the Board of Directors of those companies is not sufficient to demonstrate the existence of significant influence. Moreover, representation on the Board of Directors is limited to the mandates of the Directors and requires a resolution at General Shareholders\u2019 Meeting. In particular for listed companies, this representation does not come from a contractual or legal right. Taking these different factors into account, GBL has entered into the accounting treatment of its investments in Ontex, SGS, Umicore and Voodoo as other equity investments as of December\u00a031,\u00a02023.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__51-1": { "value": "Other equity investments
Other equity investments include investments in companies in which the group does not control nor exercise a significant influence, as defined above.
Other equity investments are either quoted or private assets or unquoted funds.
Quoted and private investments (SGS, Pernod Ricard, adidas, Umicore, Concentrix + Webhelp, Voodoo, etc.)
These investments are recorded at fair value based on their stock market price at each closing date for quoted investments and on the valuation methods used for private investments.
GBL has opted to account for changes in the fair value of quoted and private investments via equity (\u201cFinancial assets recognized at fair value through equity\u201d). These amounts will never be recycled in earnings, even in the event of the sale of securities or significant or prolonged loss of value. In the event of a sale, the accumulated revaluation reserves at the time of sale are reclassified to consolidated reserves.
Unquoted funds (Upfield, Sagard funds, Kartesia funds, Human capital funds, BDT Capital Partners II, Cepsa, etc.)
Investments in funds are revalued at each closing at their fair value, determined by the managers of these funds, according to their investment portfolio.
Based on the analysis of the characteristics of these unlisted funds, GBL determined that they were not eligible for the \u201cFair value through other comprehensive income\u201d option. Therefore, the changes in fair value are accounted for in profit or loss (\u201cFinancial assets recognized at fair value through profit or loss\u201d).
Trade receivables
Trade receivables are initially recognized at their transaction price, when those do not contain an important financing component (determined in accordance with IFRS 15 Revenue from Contractswith Customers). The transaction price is the amount of consideration that the group expects to receive in exchange for the goods or services transferred.
Subsequent to their initial recognition, trade receivables are valued at amortized cost, i.e., at fair value plus, where applicable, directly attributable transaction costs, increased or decreased, of accumulated amortization of any difference between this initial amount and the amount at maturity, and less any write-down for impairment or non- recoverability. At the end of the reporting period, a write-down is recognized for the value of expected credit losses. Such losses correspond to the estimated weighted probability of credit losses, i.e.,\u00a0the expected loss of cash over the life of the trade receivable, minus cash to be received from credit insurance where applicable.
A\u00a0receivable sold to a banking institution for financing purposes is only derecognized if the factoring agreement also transfers to the factor all the risks and rewards incidental to the receivable.
Other financial assets
The other financial assets are classified in one of the following two categories:
Amortized cost. Financial assets are measured at amortized cost when the objective of the business model is to collect the contractual cash flows. These correspond mainly to cash and cash equivalents, as well as, to a lesser extent, to receivables related to dividends to be received. Cash and cash equivalents include bank deposits and fixed-term investments with a maturity date equal to or less than three months from the acquisition date. These are highly liquid investments indexed on a money market rate and the value of which is known or subject to very little uncertainty.
Fair value through profit or loss. Financial assets are measured at fair value through profit or loss when the objective of the business model is to both collect the contractual cash flows and make a trading profit in the short term. They are non-derivative financial assets held for trading and recognized as assets between the dates of purchase and disposal, and whose changes in fair value are recognized in other financial income and expenses (investing or operating activities) at market prices published at the closing date. This category also includes trading assets as well as derivative instruments other than hedge accounting.
Finally, the group derecognizes a financial asset only if the contractual rights to the cash flows of the asset expire, or if the financial asset and the associated risks and benefits are transferred to third parties. If the group does not transfer or retain substantially all the risks and rewards of ownership and continues to control the transferred asset, the group then recognizes retained interests in that asset and an associated liability for amounts that it may have to pay. If the group retains substantially all the risks and rewards of owning a transferred financial asset, the group continues to recognize the financial asset and also recognizes a debt backed by the proceeds received.
Other equity investments
Other equity investments are not subject to impairment tests since any decrease in fair value, even significant or prolonged, is still recognized in equity for financial assets recognized at fair value through equity or, directly in profit or loss for financial assets recognized at fair value through profit or loss.
Trade receivables and other financial assets
IFRS 9 Financial Instrumentsrequires the application of a model based on anticipated losses on trade receivables and other financial assets. In particular, IFRS 9 requires, among other things, that the group recognizes an impairment loss on trade receivables and other financial assets as of the initial recognition date thereof.
The assessment of expected credit losses is made on an individual or collective basis taking into account historical data on late payments, information on current circumstances, as well as forward-looking information.
Derivative financial instruments
The group\u2019s consolidated operating companies use derivatives to reduce their exposure to various risks, in particular foreign exchange, interest rate and energy price risks. The sole purpose of these instruments is to hedge the economic risks to which they are exposed. Financial instruments are recognized at the transaction date, i.e., the date the hedge accounting contract is entered into. However, only those that fulfil the hedge accounting criteria laid down in IFRS 9 are given the accounting treatments described hereafter.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are immediately recognized in profit or loss.
Any transaction qualified as hedge accounting is documented by reference to the hedging strategy by identifying the hedged risk, the hedged item, the hedging instrument, the hedging relationship and the measurement method of the hedge relationship effectiveness.\u00a0The measurement of the hedge relationship effectiveness is updated at every reporting date.
Derivatives are measured at fair value on initial recognition. Fair value is subsequently remeasured at every reporting date by reference to market conditions and to IFRS 13 Fair Value Measurement.
Derivatives recorded as assets or liabilities are classified in the headings \u201cOther non-current assets/liabilities\u201d and \u201cOther current assets/ liabilities\u201d depending on their maturity date. The recognition of hedging derivatives varies depending on whether they are designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations.
GBL also uses derivative instruments. It can carry out transactions using call or put options. These transactions are implemented with reference to thorough documentation and are subject to specific and appropriate prior analysis and systematic monitoring.
Consolidated operating companies use different types of derivative financial instruments in various hedging strategies, as described below.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__52-1": { "value": "Unquoted funds (Upfield, Sagard funds, Kartesia funds, Human capital funds, BDT Capital Partners II, Cepsa, etc.)
Investments in funds are revalued at each closing at their fair value, determined by the managers of these funds, according to their investment portfolio.
Based on the analysis of the characteristics of these unlisted funds, GBL determined that they were not eligible for the \u201cFair value through other comprehensive income\u201d option. Therefore, the changes in fair value are accounted for in profit or loss (\u201cFinancial assets recognized at fair value through profit or loss\u201d).
Other financial assets
The other financial assets are classified in one of the following two categories:
Amortized cost. Financial assets are measured at amortized cost when the objective of the business model is to collect the contractual cash flows. These correspond mainly to cash and cash equivalents, as well as, to a lesser extent, to receivables related to dividends to be received. Cash and cash equivalents include bank deposits and fixed-term investments with a maturity date equal to or less than three months from the acquisition date. These are highly liquid investments indexed on a money market rate and the value of which is known or subject to very little uncertainty.
Fair value through profit or loss. Financial assets are measured at fair value through profit or loss when the objective of the business model is to both collect the contractual cash flows and make a trading profit in the short term. They are non-derivative financial assets held for trading and recognized as assets between the dates of purchase and disposal, and whose changes in fair value are recognized in other financial income and expenses (investing or operating activities) at market prices published at the closing date. This category also includes trading assets as well as derivative instruments other than hedge accounting.
The interest cost of the bond component is calculated by applying the prevailing interest market rate at the issuance date.Transaction costs related to the issue of convertible or exchangeable bonds are allocated to the \u201cliability\u201d and \u201cderivative\u201d components in proportion to the allocation of gross proceeds.
Transaction costs related to the \u201cderivative\u201d component are recognized directly in profit or loss. Transaction costs related to the \u201cliability\u201d component are included in the carrying amount of the \u201cliability\u201d component and are amortized over the life of the convertible or exchangeable bonds using the effective interest rate method.
Derivative financial instruments
The group\u2019s consolidated operating companies use derivatives to reduce their exposure to various risks, in particular foreign exchange, interest rate and energy price risks. The sole purpose of these instruments is to hedge the economic risks to which they are exposed. Financial instruments are recognized at the transaction date, i.e., the date the hedge accounting contract is entered into. However, only those that fulfil the hedge accounting criteria laid down in IFRS 9 are given the accounting treatments described hereafter.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are immediately recognized in profit or loss.
Any transaction qualified as hedge accounting is documented by reference to the hedging strategy by identifying the hedged risk, the hedged item, the hedging instrument, the hedging relationship and the measurement method of the hedge relationship effectiveness.\u00a0The measurement of the hedge relationship effectiveness is updated at every reporting date.
Derivatives are measured at fair value on initial recognition. Fair value is subsequently remeasured at every reporting date by reference to market conditions and to IFRS 13 Fair Value Measurement.
Derivatives recorded as assets or liabilities are classified in the headings \u201cOther non-current assets/liabilities\u201d and \u201cOther current assets/ liabilities\u201d depending on their maturity date. The recognition of hedging derivatives varies depending on whether they are designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations.
GBL also uses derivative instruments. It can carry out transactions using call or put options. These transactions are implemented with reference to thorough documentation and are subject to specific and appropriate prior analysis and systematic monitoring.
Consolidated operating companies use different types of derivative financial instruments in various hedging strategies, as described below.
Fair value hedge
When changes in fair value of a recognized asset or liability or an unrecognized firm commitment may affect income, these changes may be covered by a fair value hedge. The hedged item and the hedging instrument are remeasured symmetrically in profit or loss at every reporting date. The impact in profit or loss is limited to the ineffective portion of the hedge.
Cash flow hedge
A cash flow hedge is used to cover unfavorable cash flow changes related to a recognized asset or liability or a highly likely future transaction when such changes are likely to affect profit or loss. At every reporting date, the effective share of the hedge and, if applicable, the changes in the time value of the options and futures points of the futures contracts, are recognized in shareholders\u2019 equity. The ineffective portion is recognized in profit or loss. When the transaction is recognized, items previously recognized in shareholders\u2019 equity are reclassified to profit or loss simultaneously with the recognition of the hedged item. In the event of a disqualification of a derivative, i.e., the interruption of hedge accounting, the effective portion of the hedge previously recognized in shareholders\u2019 equity is amortized to operating or financial result, depending on the nature of the hedged item.
Hedge of net investments in foreign operations
Foreign currency translation adjustments generated by net assets held by the group\u2019s consolidated operating companies in foreign currencies can be hedged. At every reporting date, the effective share of the hedge is recognized in shareholders\u2019 equity and the ineffective portion in profit or loss.
The effective portion in shareholders\u2019 equity is only reclassified as profit or loss in the case of loss of control over a consolidated activity or reduction of an interest in an activity under significant influence.
Items denominated in foreign currencies
Monetary assets and liabilities denominated in foreign currencies in the accounting records of group companies are translated into euros using the exchange rates of the last day of the financial year. Unrealized differences on translation resulting from the application of this methodology are recorded as gains or losses of the financial year. Non- monetary assets and liabilities are recorded using the exchange rates applicable on the date of the transaction.
In the consolidated financial statements, the group\u2019s assets and liabilities related to activities held abroad are converted at the closing rate.
Items of income and expenses denominated in foreign currencies are converted into euros at the average exchange rate for the year. Foreign currency translation adjustments reflecting the difference between the average rate and the rate on the last day of the year, are recognized in shareholders\u2019 equity under \u201cForeign currency translation adjustments\u201d. These foreign currency translation adjustments are recorded in profit or loss when the group disposes of the entity concerned.
Interest
Interest income (expenses) include interest to be paid on loans and interest to be received on investments. Interest income received or interest charges paid are recorded prorata temporis in the consolidated statement of comprehensive income, taking into account the effective interest rate on the investment.
Dividends
Dividends relating to other equity investments or trading securities are booked in profit or loss on the date on which their distribution is decided upon, unless these dividends clearly represent the recovery of a portion of the cost of the investment. The amount of withholding tax is recorded as a deduction of gross dividends.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__53-1": { "value": "Unquoted funds (Upfield, Sagard funds, Kartesia funds, Human capital funds, BDT Capital Partners II, Cepsa, etc.)
Investments in funds are revalued at each closing at their fair value, determined by the managers of these funds, according to their investment portfolio.
Based on the analysis of the characteristics of these unlisted funds, GBL determined that they were not eligible for the \u201cFair value through other comprehensive income\u201d option. Therefore, the changes in fair value are accounted for in profit or loss (\u201cFinancial assets recognized at fair value through profit or loss\u201d).
Other financial assets
The other financial assets are classified in one of the following two categories:
Amortized cost. Financial assets are measured at amortized cost when the objective of the business model is to collect the contractual cash flows. These correspond mainly to cash and cash equivalents, as well as, to a lesser extent, to receivables related to dividends to be received. Cash and cash equivalents include bank deposits and fixed-term investments with a maturity date equal to or less than three months from the acquisition date. These are highly liquid investments indexed on a money market rate and the value of which is known or subject to very little uncertainty.
Fair value through profit or loss. Financial assets are measured at fair value through profit or loss when the objective of the business model is to both collect the contractual cash flows and make a trading profit in the short term. They are non-derivative financial assets held for trading and recognized as assets between the dates of purchase and disposal, and whose changes in fair value are recognized in other financial income and expenses (investing or operating activities) at market prices published at the closing date. This category also includes trading assets as well as derivative instruments other than hedge accounting.
Transaction costs related to the \u201cderivative\u201d component are recognized directly in profit or loss. Transaction costs related to the \u201cliability\u201d component are included in the carrying amount of the \u201cliability\u201d component and are amortized over the life of the convertible or exchangeable bonds using the effective interest rate method.Derivative financial instruments
The group\u2019s consolidated operating companies use derivatives to reduce their exposure to various risks, in particular foreign exchange, interest rate and energy price risks. The sole purpose of these instruments is to hedge the economic risks to which they are exposed. Financial instruments are recognized at the transaction date, i.e., the date the hedge accounting contract is entered into. However, only those that fulfil the hedge accounting criteria laid down in IFRS 9 are given the accounting treatments described hereafter.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are immediately recognized in profit or loss.
Any transaction qualified as hedge accounting is documented by reference to the hedging strategy by identifying the hedged risk, the hedged item, the hedging instrument, the hedging relationship and the measurement method of the hedge relationship effectiveness.\u00a0The measurement of the hedge relationship effectiveness is updated at every reporting date.
Derivatives are measured at fair value on initial recognition. Fair value is subsequently remeasured at every reporting date by reference to market conditions and to IFRS 13 Fair Value Measurement.
Derivatives recorded as assets or liabilities are classified in the headings \u201cOther non-current assets/liabilities\u201d and \u201cOther current assets/ liabilities\u201d depending on their maturity date. The recognition of hedging derivatives varies depending on whether they are designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations.
GBL also uses derivative instruments. It can carry out transactions using call or put options. These transactions are implemented with reference to thorough documentation and are subject to specific and appropriate prior analysis and systematic monitoring.
Consolidated operating companies use different types of derivative financial instruments in various hedging strategies, as described below.
Fair value hedge
When changes in fair value of a recognized asset or liability or an unrecognized firm commitment may affect income, these changes may be covered by a fair value hedge. The hedged item and the hedging instrument are remeasured symmetrically in profit or loss at every reporting date. The impact in profit or loss is limited to the ineffective portion of the hedge.
Cash flow hedge
A cash flow hedge is used to cover unfavorable cash flow changes related to a recognized asset or liability or a highly likely future transaction when such changes are likely to affect profit or loss. At every reporting date, the effective share of the hedge and, if applicable, the changes in the time value of the options and futures points of the futures contracts, are recognized in shareholders\u2019 equity. The ineffective portion is recognized in profit or loss. When the transaction is recognized, items previously recognized in shareholders\u2019 equity are reclassified to profit or loss simultaneously with the recognition of the hedged item. In the event of a disqualification of a derivative, i.e., the interruption of hedge accounting, the effective portion of the hedge previously recognized in shareholders\u2019 equity is amortized to operating or financial result, depending on the nature of the hedged item.
Hedge of net investments in foreign operations
Foreign currency translation adjustments generated by net assets held by the group\u2019s consolidated operating companies in foreign currencies can be hedged. At every reporting date, the effective share of the hedge is recognized in shareholders\u2019 equity and the ineffective portion in profit or loss.
The effective portion in shareholders\u2019 equity is only reclassified as profit or loss in the case of loss of control over a consolidated activity or reduction of an interest in an activity under significant influence.
Items denominated in foreign currencies
Monetary assets and liabilities denominated in foreign currencies in the accounting records of group companies are translated into euros using the exchange rates of the last day of the financial year. Unrealized differences on translation resulting from the application of this methodology are recorded as gains or losses of the financial year. Non- monetary assets and liabilities are recorded using the exchange rates applicable on the date of the transaction.
In the consolidated financial statements, the group\u2019s assets and liabilities related to activities held abroad are converted at the closing rate.
Items of income and expenses denominated in foreign currencies are converted into euros at the average exchange rate for the year. Foreign currency translation adjustments reflecting the difference between the average rate and the rate on the last day of the year, are recognized in shareholders\u2019 equity under \u201cForeign currency translation adjustments\u201d. These foreign currency translation adjustments are recorded in profit or loss when the group disposes of the entity concerned.
Interest
Interest income (expenses) include interest to be paid on loans and interest to be received on investments. Interest income received or interest charges paid are recorded prorata temporis in the consolidated statement of comprehensive income, taking into account the effective interest rate on the investment.
Dividends
Dividends relating to other equity investments or trading securities are booked in profit or loss on the date on which their distribution is decided upon, unless these dividends clearly represent the recovery of a portion of the cost of the investment. The amount of withholding tax is recorded as a deduction of gross dividends.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__54-1": { "value": "Unquoted funds (Upfield, Sagard funds, Kartesia funds, Human capital funds, BDT Capital Partners II, Cepsa, etc.)
Investments in funds are revalued at each closing at their fair value, determined by the managers of these funds, according to their investment portfolio.
Based on the analysis of the characteristics of these unlisted funds, GBL determined that they were not eligible for the \u201cFair value through other comprehensive income\u201d option. Therefore, the changes in fair value are accounted for in profit or loss (\u201cFinancial assets recognized at fair value through profit or loss\u201d).
Fair value through profit or loss. Financial assets are measured at fair value through profit or loss when the objective of the business model is to both collect the contractual cash flows and make a trading profit in the short term. They are non-derivative financial assets held for trading and recognized as assets between the dates of purchase and disposal, and whose changes in fair value are recognized in other financial income and expenses (investing or operating activities) at market prices published at the closing date. This category also includes trading assets as well as derivative instruments other than hedge accounting.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f102017": { "value": "Non-current assets held for sale and discontinued operations
When, at the reporting date, it is highly likely that non-current assets or groups of directly related assets and liabilities will be disposed of, they are designated as non-current assets or groups of assets held for sale. Their sale is considered highly likely if, on the reporting date, a plan to put them up for sale at a reasonable price in relation to their fair value has been organized in order to find a buyer and finalize their transfer within one year at most. Non-current assets or groups of assets held for sale are presented as separate assets and liabilities in the consolidated balance sheet, separately from the rest of the continuing operations, at the balance sheet date and without comparative information provided for prior periods. They are no longer depreciated at the date of designation as non-current assets or disposal groups and are valued at the lower of carrying amount or fair value less costs to sell.
Non-current assets or groups of assets that will be shut down and not sold constitute non-current assets that are to be abandoned. When non-current assets or groups of assets held for sale or to be disposed of are allocated to a separate line item for the main operation and are to be abandoned as part of a single coordinated plan, they are categorized as discontinued operations and their related flows are disclosed separately in the income statement and statement of cash flows, as of the balance sheet date and in the comparative information provided for prior periods. As non-current assets or groups of assets held for sale are controlled until their disposal date, intra-group transactions between them and the rest of the continuing operations are eliminated in the balance sheet and in the income statement, with the exception of transactions within the income statement that the discontinued operations will continue after the date of loss of control with the continuing operations. This presentation, which has no impact on the amount of consolidated net income, enables users of the financial statements to assess the impact of discontinued operations on the remaining continuing operations.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f102018": { "value": "Non-current assets held for sale and discontinued operations
When, at the reporting date, it is highly likely that non-current assets or groups of directly related assets and liabilities will be disposed of, they are designated as non-current assets or groups of assets held for sale. Their sale is considered highly likely if, on the reporting date, a plan to put them up for sale at a reasonable price in relation to their fair value has been organized in order to find a buyer and finalize their transfer within one year at most. Non-current assets or groups of assets held for sale are presented as separate assets and liabilities in the consolidated balance sheet, separately from the rest of the continuing operations, at the balance sheet date and without comparative information provided for prior periods. They are no longer depreciated at the date of designation as non-current assets or disposal groups and are valued at the lower of carrying amount or fair value less costs to sell.
Non-current assets or groups of assets that will be shut down and not sold constitute non-current assets that are to be abandoned. When non-current assets or groups of assets held for sale or to be disposed of are allocated to a separate line item for the main operation and are to be abandoned as part of a single coordinated plan, they are categorized as discontinued operations and their related flows are disclosed separately in the income statement and statement of cash flows, as of the balance sheet date and in the comparative information provided for prior periods. As non-current assets or groups of assets held for sale are controlled until their disposal date, intra-group transactions between them and the rest of the continuing operations are eliminated in the balance sheet and in the income statement, with the exception of transactions within the income statement that the discontinued operations will continue after the date of loss of control with the continuing operations. This presentation, which has no impact on the amount of consolidated net income, enables users of the financial statements to assess the impact of discontinued operations on the remaining continuing operations.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f102019": { "value": "Non-current assets held for sale and discontinued operations
When, at the reporting date, it is highly likely that non-current assets or groups of directly related assets and liabilities will be disposed of, they are designated as non-current assets or groups of assets held for sale. Their sale is considered highly likely if, on the reporting date, a plan to put them up for sale at a reasonable price in relation to their fair value has been organized in order to find a buyer and finalize their transfer within one year at most. Non-current assets or groups of assets held for sale are presented as separate assets and liabilities in the consolidated balance sheet, separately from the rest of the continuing operations, at the balance sheet date and without comparative information provided for prior periods. They are no longer depreciated at the date of designation as non-current assets or disposal groups and are valued at the lower of carrying amount or fair value less costs to sell.
Non-current assets or groups of assets that will be shut down and not sold constitute non-current assets that are to be abandoned. When non-current assets or groups of assets held for sale or to be disposed of are allocated to a separate line item for the main operation and are to be abandoned as part of a single coordinated plan, they are categorized as discontinued operations and their related flows are disclosed separately in the income statement and statement of cash flows, as of the balance sheet date and in the comparative information provided for prior periods. As non-current assets or groups of assets held for sale are controlled until their disposal date, intra-group transactions between them and the rest of the continuing operations are eliminated in the balance sheet and in the income statement, with the exception of transactions within the income statement that the discontinued operations will continue after the date of loss of control with the continuing operations. This presentation, which has no impact on the amount of consolidated net income, enables users of the financial statements to assess the impact of discontinued operations on the remaining continuing operations.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__58-1": { "value": "Inventories
Inventories are recorded as assets at the date on which the risks, rewards and control are transferred to the group. At the time of sale, their disposal is accounted for through an expense at the same date as the corresponding gain. Inventories are valued at the lower of production cost or net realizable value. When production is less than normal capacity, fixed costs specifically exclude the share corresponding to the sub- activity. Inventories presenting similar characteristics are valued under the same method. The methods used in the group are FIFO \u2013 First-In, First-Out \u2013 and the weighted average unit cost. When production cost cannot be recovered, it is lowered to net realization value under the conditions existing at the reporting\u00a0date.
Note 14Inventories
In EUR\u00a0million | 2023 | 2022 |
Raw materials, consumables and parts | 543.0 | 670.1 |
Work in progress | 134.0 | 133.9 |
Finished goods and goods for resale | 541.1 | 459.4 |
Gross total (before writedowns) | 1,218.0 | 1,263.4 |
Writedowns of inventory | ||
As of January 1 | (52.9) | (54.5) |
Writedowns over the year | (6.6) | (27.1) |
Reversals of writedowns | 14.9 | 15.4 |
Foreign currency translation adjustments | 0.8 | (0.5) |
Other | (1.4) | 13.9 |
As of December 31 | (45.2) | (52.9) |
Net total | 1,172.8 | 1,210.6 |
Of which: Holding | - | - |
Imerys | 734.6 | 789.9 |
Webhelp | - | 5.0 |
Canyon | 417.9 | 393.6 |
Affidea | 11.4 | 9.6 |
Sanoptis | 8.9 | 5.7 |
GBL Capital and SIM | - | 6.7 |
The variation of inventories recognized as an expense is EUR\u00a042\u00a0million in 2023 (EUR\u00a097\u00a0million in 2022).
Inventories
Inventories are recorded as assets at the date on which the risks, rewards and control are transferred to the group. At the time of sale, their disposal is accounted for through an expense at the same date as the corresponding gain. Inventories are valued at the lower of production cost or net realizable value. When production is less than normal capacity, fixed costs specifically exclude the share corresponding to the sub- activity. Inventories presenting similar characteristics are valued under the same method. The methods used in the group are FIFO \u2013 First-In, First-Out \u2013 and the weighted average unit cost. When production cost cannot be recovered, it is lowered to net realization value under the conditions existing at the reporting\u00a0date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__61-1": { "value": "Trade receivables
Trade receivables are initially recognized at their transaction price, when those do not contain an important financing component (determined in accordance with IFRS 15 Revenue from Contractswith Customers). The transaction price is the amount of consideration that the group expects to receive in exchange for the goods or services transferred.
Subsequent to their initial recognition, trade receivables are valued at amortized cost, i.e., at fair value plus, where applicable, directly attributable transaction costs, increased or decreased, of accumulated amortization of any difference between this initial amount and the amount at maturity, and less any write-down for impairment or non- recoverability. At the end of the reporting period, a write-down is recognized for the value of expected credit losses. Such losses correspond to the estimated weighted probability of credit losses, i.e.,\u00a0the expected loss of cash over the life of the trade receivable, minus cash to be received from credit insurance where applicable.
A\u00a0receivable sold to a banking institution for financing purposes is only derecognized if the factoring agreement also transfers to the factor all the risks and rewards incidental to the receivable.
Trade receivables and other financial assets
IFRS 9 Financial Instrumentsrequires the application of a model based on anticipated losses on trade receivables and other financial assets. In particular, IFRS 9 requires, among other things, that the group recognizes an impairment loss on trade receivables and other financial assets as of the initial recognition date thereof.
The assessment of expected credit losses is made on an individual or collective basis taking into account historical data on late payments, information on current circumstances, as well as forward-looking information.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__62-1": { "value": "Trade receivables
Trade receivables are initially recognized at their transaction price, when those do not contain an important financing component (determined in accordance with IFRS 15 Revenue from Contractswith Customers). The transaction price is the amount of consideration that the group expects to receive in exchange for the goods or services transferred.
Subsequent to their initial recognition, trade receivables are valued at amortized cost, i.e., at fair value plus, where applicable, directly attributable transaction costs, increased or decreased, of accumulated amortization of any difference between this initial amount and the amount at maturity, and less any write-down for impairment or non- recoverability. At the end of the reporting period, a write-down is recognized for the value of expected credit losses. Such losses correspond to the estimated weighted probability of credit losses, i.e.,\u00a0the expected loss of cash over the life of the trade receivable, minus cash to be received from credit insurance where applicable.
A\u00a0receivable sold to a banking institution for financing purposes is only derecognized if the factoring agreement also transfers to the factor all the risks and rewards incidental to the receivable.
Other financial assets
The other financial assets are classified in one of the following two categories:
Amortized cost. Financial assets are measured at amortized cost when the objective of the business model is to collect the contractual cash flows. These correspond mainly to cash and cash equivalents, as well as, to a lesser extent, to receivables related to dividends to be received. Cash and cash equivalents include bank deposits and fixed-term investments with a maturity date equal to or less than three months from the acquisition date. These are highly liquid investments indexed on a money market rate and the value of which is known or subject to very little uncertainty.
Fair value through profit or loss. Financial assets are measured at fair value through profit or loss when the objective of the business model is to both collect the contractual cash flows and make a trading profit in the short term. They are non-derivative financial assets held for trading and recognized as assets between the dates of purchase and disposal, and whose changes in fair value are recognized in other financial income and expenses (investing or operating activities) at market prices published at the closing date. This category also includes trading assets as well as derivative instruments other than hedge accounting.
Finally, the group derecognizes a financial asset only if the contractual rights to the cash flows of the asset expire, or if the financial asset and the associated risks and benefits are transferred to third parties. If the group does not transfer or retain substantially all the risks and rewards of ownership and continues to control the transferred asset, the group then recognizes retained interests in that asset and an associated liability for amounts that it may have to pay. If the group retains substantially all the risks and rewards of owning a transferred financial asset, the group continues to recognize the financial asset and also recognizes a debt backed by the proceeds received.
Trade receivables and other financial assets
IFRS 9 Financial Instrumentsrequires the application of a model based on anticipated losses on trade receivables and other financial assets. In particular, IFRS 9 requires, among other things, that the group recognizes an impairment loss on trade receivables and other financial assets as of the initial recognition date thereof.
The assessment of expected credit losses is made on an individual or collective basis taking into account historical data on late payments, information on current circumstances, as well as forward-looking information.
Current and non-current liabilities
Non-current liabilities (bank loans and bonds) and current liabilities (bank deposits) are initially recognized in the accounting records at their fair value less, in the case of a financial liability that has not been recorded at fair value through the income statement, the transaction costs that are directly imputed to the issuance of the financial liability.
After initial recording, they are valued at their amortized cost (initial amount less repayments of principal plus or minus the accumulated amortization of any difference between the initial amount and the value at maturity).
The exchangeable or convertible bonds issued by the group are considered as hybrid instruments, i.e., containing both a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds. The difference between the proceeds of issuance of the exchangeable or convertible bond and the fair value assigned to the bond component, representing the value of embedded option to exchange the bonds for shares, is included separately, depending on the option\u2019s maturity, in the heading \u201cOther current liabilities\u201d or \u201cOther non-current liabilities\u201d. The interest cost of the bond component is calculated by applying the prevailing interest market rate at the issuance date.
Transaction costs related to the issue of convertible or exchangeable bonds are allocated to the \u201cliability\u201d and \u201cderivative\u201d components in proportion to the allocation of gross proceeds.
Transaction costs related to the \u201cderivative\u201d component are recognized directly in profit or loss. Transaction costs related to the \u201cliability\u201d component are included in the carrying amount of the \u201cliability\u201d component and are amortized over the life of the convertible or exchangeable bonds using the effective interest rate method.
Trade payables and other financial non-derivative liabilities are measured at amortized cost.
The group derecognizes a financial liability if, and only if, its obligations are discharged, canceled or expired. The difference between the carrying amount of the derecognized financial liability and the consideration paid and payable is recognized in profit or loss. When the group exchanges a debt instrument with an existing lender for another instrument with substantially different terms, the exchange is recognized as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, if the contractual terms of an existing liability are substantially changed, the group also recognizes an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the contractual terms of the financial liability are substantially different if the present value of the cash flows under the new conditions, including any fees paid, net of fees collected and discounted at the original effective rate, is at least 10% different from the present value of the remaining cash flows of the original financial liability.
Derivative financial instruments
The group\u2019s consolidated operating companies use derivatives to reduce their exposure to various risks, in particular foreign exchange, interest rate and energy price risks. The sole purpose of these instruments is to hedge the economic risks to which they are exposed. Financial instruments are recognized at the transaction date, i.e., the date the hedge accounting contract is entered into. However, only those that fulfil the hedge accounting criteria laid down in IFRS 9 are given the accounting treatments described hereafter.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are immediately recognized in profit or loss.
Any transaction qualified as hedge accounting is documented by reference to the hedging strategy by identifying the hedged risk, the hedged item, the hedging instrument, the hedging relationship and the measurement method of the hedge relationship effectiveness.\u00a0The measurement of the hedge relationship effectiveness is updated at every reporting date.
Derivatives are measured at fair value on initial recognition. Fair value is subsequently remeasured at every reporting date by reference to market conditions and to IFRS 13 Fair Value Measurement.
Derivatives recorded as assets or liabilities are classified in the headings \u201cOther non-current assets/liabilities\u201d and \u201cOther current assets/ liabilities\u201d depending on their maturity date. The recognition of hedging derivatives varies depending on whether they are designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations.
GBL also uses derivative instruments. It can carry out transactions using call or put options. These transactions are implemented with reference to thorough documentation and are subject to specific and appropriate prior analysis and systematic monitoring.
Consolidated operating companies use different types of derivative financial instruments in various hedging strategies, as described below.
Interest
Interest income (expenses) include interest to be paid on loans and interest to be received on investments. Interest income received or interest charges paid are recorded prorata temporis in the consolidated statement of comprehensive income, taking into account the effective interest rate on the investment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__63-1": { "value": "A\u00a0receivable sold to a banking institution for financing purposes is only derecognized if the factoring agreement also transfers to the factor all the risks and rewards incidental to the receivable.Finally, the group derecognizes a financial asset only if the contractual rights to the cash flows of the asset expire, or if the financial asset and the associated risks and benefits are transferred to third parties. The group derecognizes a financial liability if, and only if, its obligations are discharged, canceled or expired. The difference between the carrying amount of the derecognized financial liability and the consideration paid and payable is recognized in profit or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f102776": { "value": "Cash and cash equivalents include bank deposits and fixed-term investments with a maturity date equal to or less than three months from the acquisition date. These are highly liquid investments indexed on a money market rate and the value of which is known or subject to very little uncertainty.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f103046": { "value": "Impairment of assets
Other equity investments
Other equity investments are not subject to impairment tests since any decrease in fair value, even significant or prolonged, is still recognized in equity for financial assets recognized at fair value through equity or, directly in profit or loss for financial assets recognized at fair value through profit or loss.
Investments in equity-accounted entities
When there is an objective indication of impairment of an investment accounted for using the equity method, an impairment test must be carried out, in accordance with IAS 36 Impairment of assetsand IAS\u00a028 Investments in Associates and Joint Ventures. The recoverable amount of the asset is estimated in order to compare it to its carrying amount and, where applicable, to recognize an impairment loss for the surplus. The recoverable amount is the highest of either the fair value less costs to sell or the value in use. The value in use corresponds\u00a0to the future estimated discounted cash flows. When an impairment accounted for in an earlier period ceases to exist, the carrying amount is partially or totally restored. The reversal of an impairment loss is recorded immediately in profit.
Property, plant and equipment and intangible assets
At every reporting date, the group reviews the carrying amount of intangible assets and property, plant and equipment with finite useful life in order to assess whether there is any evidence of impairment of these assets.
If there is any evidence of impairment, the asset\u2019s recoverable amount is estimated to compare it with its carrying amount. The recoverable amount is the higher of the asset\u2019s net sale price or its value in use. The value in use is the present value of estimated future cash flows from the continuous use of an asset. Where it is not possible to estimate the recoverable amount of an asset individually, the group estimates the recoverable amount of the CGU to which the asset belongs. If the recoverable amount of the asset or of the CGU is estimated to be less than the carrying amount, the carrying value of the asset or of the CGU is lowered to its recoverable amount. An impairment loss is immediately recognized in expenses.
When an impairment recorded during past financial years is no longer justified, the impairment loss on this asset or CGU is reversed in order to bring the asset or CGU back to a value corresponding to the new valuation of its recoverable amount.
However, the carrying value of an asset or CGU may not exceed, following reversal of an impairment loss, the carrying value it would have had if no impairment had been recognized for the asset or CGU in previous years. The reversal of an impairment loss is recognized immediately as income.
Trade receivables and other financial assets
IFRS 9 Financial Instrumentsrequires the application of a model based on anticipated losses on trade receivables and other financial assets. In particular, IFRS 9 requires, among other things, that the group recognizes an impairment loss on trade receivables and other financial assets as of the initial recognition date thereof.
The assessment of expected credit losses is made on an individual or collective basis taking into account historical data on late payments, information on current circumstances, as well as forward-looking information.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f103557": { "value": "Trade receivables and other financial assets
IFRS 9 Financial Instrumentsrequires the application of a model based on anticipated losses on trade receivables and other financial assets. In particular, IFRS 9 requires, among other things, that the group recognizes an impairment loss on trade receivables and other financial assets as of the initial recognition date thereof.
The assessment of expected credit losses is made on an individual or collective basis taking into account historical data on late payments, information on current circumstances, as well as forward-looking information.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f103650": { "value": "Taxes
Income taxes of the financial year include both current and deferred taxes. They are recorded in the income statement unless they relate to items directly recorded in shareholders\u2019 equity, in which case they are also recorded in shareholders\u2019 equity.
Current taxes are the taxes to be paid on the taxable profit for the financial year and are calculated in accordance with the tax rates in effect or that will be in effect on the last day of the financial year, plus any adjustments relating to prior years.
Deferred taxes are calculated in accordance with the liability method, which is applied to the temporary differences between the carrying amount and tax basis of the assets and liabilities recorded in the balance sheet.
The following tax differences are disregarded: non tax-deductible goodwill and initial valuations of assets and liabilities not affecting the accounting and taxable profit.
Deferred taxes are calculated according to the manner in which the related assets and liabilities are expected to be realized or settled, based on the tax rates in effect or that will be in effect on the last day of the financial year.
Additionally, deferred tax liabilities related to investments in subsidiaries are not recorded when the group is able to control the date on which the temporary difference will reverse and when the group does not expect the temporary difference to reverse in the foreseeable future.
Deferred tax assets are recorded if the taxable profits are likely to materialize in such a manner as to allow them to be offset against tax losses and tax credits.
Finally, deferred tax assets and liabilities are offset by tax entity when the latter has the right to offset its current tax assets and liabilities and that the deferred tax assets and liabilities in question are levied by the same tax authority.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f103651": { "value": "Taxes
Income taxes of the financial year include both current and deferred taxes. They are recorded in the income statement unless they relate to items directly recorded in shareholders\u2019 equity, in which case they are also recorded in shareholders\u2019 equity.
Current taxes are the taxes to be paid on the taxable profit for the financial year and are calculated in accordance with the tax rates in effect or that will be in effect on the last day of the financial year, plus any adjustments relating to prior years.
Deferred taxes are calculated in accordance with the liability method, which is applied to the temporary differences between the carrying amount and tax basis of the assets and liabilities recorded in the balance sheet.
The following tax differences are disregarded: non tax-deductible goodwill and initial valuations of assets and liabilities not affecting the accounting and taxable profit.
Deferred taxes are calculated according to the manner in which the related assets and liabilities are expected to be realized or settled, based on the tax rates in effect or that will be in effect on the last day of the financial year.
Additionally, deferred tax liabilities related to investments in subsidiaries are not recorded when the group is able to control the date on which the temporary difference will reverse and when the group does not expect the temporary difference to reverse in the foreseeable future.
Deferred tax assets are recorded if the taxable profits are likely to materialize in such a manner as to allow them to be offset against tax losses and tax credits.
Finally, deferred tax assets and liabilities are offset by tax entity when the latter has the right to offset its current tax assets and liabilities and that the deferred tax assets and liabilities in question are levied by the same tax authority.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f103652": { "value": "Taxes
Income taxes of the financial year include both current and deferred taxes. They are recorded in the income statement unless they relate to items directly recorded in shareholders\u2019 equity, in which case they are also recorded in shareholders\u2019 equity.
Current taxes are the taxes to be paid on the taxable profit for the financial year and are calculated in accordance with the tax rates in effect or that will be in effect on the last day of the financial year, plus any adjustments relating to prior years.
Deferred taxes are calculated in accordance with the liability method, which is applied to the temporary differences between the carrying amount and tax basis of the assets and liabilities recorded in the balance sheet.
The following tax differences are disregarded: non tax-deductible goodwill and initial valuations of assets and liabilities not affecting the accounting and taxable profit.
Deferred taxes are calculated according to the manner in which the related assets and liabilities are expected to be realized or settled, based on the tax rates in effect or that will be in effect on the last day of the financial year.
Additionally, deferred tax liabilities related to investments in subsidiaries are not recorded when the group is able to control the date on which the temporary difference will reverse and when the group does not expect the temporary difference to reverse in the foreseeable future.
Deferred tax assets are recorded if the taxable profits are likely to materialize in such a manner as to allow them to be offset against tax losses and tax credits.
Finally, deferred tax assets and liabilities are offset by tax entity when the latter has the right to offset its current tax assets and liabilities and that the deferred tax assets and liabilities in question are levied by the same tax authority.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTaxesOtherThanIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f103976": { "value": "Treasury shares
When treasury shares are bought (or sold), the amount paid (or received) is recorded as a decrease (or increase) in shareholders\u2019 equity.Movements in these shares are shown in the consolidated statement of changes in shareholders\u2019 equity. No profits or losses on these movements are recorded in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__89-1": { "value": "Appropriation of profit
Dividends paid by GBL to its shareholders are included as a reduction of shareholders\u2019 equity for their gross amount, i.e., before withholding tax. The financial statements are prepared before appropriation of\u00a0profit.
Dividends
Dividends relating to other equity investments or trading securities are booked in profit or loss on the date on which their distribution is decided upon, unless these dividends clearly represent the recovery of a portion of the cost of the investment. The amount of withholding tax is recorded as a deduction of gross dividends.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f104070": { "value": "Incentive plans
Equity-settled share-based plans
GBL and Imerys stock options granted prior to November 7, 2002 have not been recorded in the consolidated financial statements in accordance with the transitional provisions of IFRS 2 Share-based Payment.
Incentive plans granted as from November 7, 2002 are accounted for in accordance with IFRS 2. In accordance with this standard, the fair value of the options on the date of allocation is recorded in the income statement for the period of acquisition of the rights (\u201cvesting period\u201d). The options are valued by means of a valuation model generally accepted based on the market conditions prevailing at the time of their grant.
Cash-settled share-based plans
If the arrangement is settled in cash, the group incurs a liability measured at fair value. Until the settlement of the liability, the fair value should be measured at each reporting date and at settlement date. The changes in fair value are recognized in the income statement of the period.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f104267": { "value": "Retirement benefits and other post- employment benefits
Defined benefit plans
Commitments for defined benefit pension plans and similar obligations are valued using the projected credit unit method, in accordance with IAS 19 Employee Benefits. This valuation uses financial and demographic actuarial assumptions. These are used to value services rendered during the year on the basis of an estimate of the end-of-career salary.
The provisions or assets recognized correspond to the present value of the obligation less the fair value of the plan\u2019s assets, which may be capped. The discount rates used to discount the obligations and calculate the resulting normative return on the assets are determined by referring to the yields of bonds issued by AA (high quality) rated companies within the main iBoxx GBP and USD Corporate AA indexes. Where negative interest rates arise, they are applied as published, without a floor at zero.
Contributions to funds and direct payments to beneficiaries as well as contributions and payments related to restructuring are recorded under \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d. Contributions to closed deficit plans with compulsory funding are recorded under \u201cFinancial income (expenses) from operating activities\u201d. The effect of these contributions in income statement is neutralized by reversals of provisions recognized in each of the mentioned above. Other elements of the change in post- employment benefit plans are recorded in \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d, with the exception of the accretion of obligations and normative return on assets that are recognized under \u201cFinancial income (expenses) from investing activities\u201d or \u201cFinancial income (expenses) from operating activities\u201d.
Administrative costs are recorded in \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d, except for the administrative expenses of the closed deficit plans with compulsory funding that are recorded under \u201cOther financial income (expenses) from operational activities\u201d.
Plan amendments, reductions and liquidations are immediately recognized in profit or loss. Actuarial differences and caps relating to post-employment benefit plan assets are fully recognized in other comprehensive income, net of asset management fees, without reclassification to profit or loss in a subsequent period.
Defined contribution plans
The group participates, in accordance with the regulations and corporate practices of each country, in the creation of retirement reserves for its staff, paying contributions on a mandatory or voluntary basis to external bodies such as pension funds, insurance companies or financial institutions.
These plans are defined contribution plans, in other words they do not guarantee the level of benefits paid. These contributions are recorded under \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d.
Provisions
Provisions are recorded at the reporting date when a group entity has an actual (legal or implicit) obligation resulting from a past event, when it is probable that an amount will have to be paid out to settle this obligation, and if the amount of the obligation can be determined reliably.
The amount recorded as a provision should be the most accurate estimation of the expenditure required to meet the obligation existing at the reporting date.
Provisions are recognized in profit or loss, apart from provisions for decommissioning and some provisions for rehabilitation, whose counterpart is included in the cost of assets whose construction has created the obligation. This treatment applies in particular to some of Imerys\u2019 industrial installations and overburden mineral assets.
Provisions whose settlement is expected within twelve months after the reporting date or whose settlement may occur at any time are not discounted. Provisions whose settlement is expected more than twelve months after the reporting date are discounted.
Changes in discounted provisions resulting from a revision of the amount of the obligation, its calendar or its discount rate are recognized in profit or loss, or for provisions recognized against assets, as an adjustment of the cost of the assets. The discounting is recognized as a debit in financial income (expenses).
Provisions for restructuring costs are not recorded unless the group has approved a detailed and formal restructuring plan and if the restructuring has either begun or been publicly announced. Costs relating to the group\u2019s continuing operations are not taken into account.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f104270": { "value": "Retirement benefits and other post- employment benefits
Defined benefit plans
Commitments for defined benefit pension plans and similar obligations are valued using the projected credit unit method, in accordance with IAS 19 Employee Benefits. This valuation uses financial and demographic actuarial assumptions. These are used to value services rendered during the year on the basis of an estimate of the end-of-career salary.
The provisions or assets recognized correspond to the present value of the obligation less the fair value of the plan\u2019s assets, which may be capped. The discount rates used to discount the obligations and calculate the resulting normative return on the assets are determined by referring to the yields of bonds issued by AA (high quality) rated companies within the main iBoxx GBP and USD Corporate AA indexes. Where negative interest rates arise, they are applied as published, without a floor at zero.
Contributions to funds and direct payments to beneficiaries as well as contributions and payments related to restructuring are recorded under \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d. Contributions to closed deficit plans with compulsory funding are recorded under \u201cFinancial income (expenses) from operating activities\u201d. The effect of these contributions in income statement is neutralized by reversals of provisions recognized in each of the mentioned above. Other elements of the change in post- employment benefit plans are recorded in \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d, with the exception of the accretion of obligations and normative return on assets that are recognized under \u201cFinancial income (expenses) from investing activities\u201d or \u201cFinancial income (expenses) from operating activities\u201d.
Administrative costs are recorded in \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d, except for the administrative expenses of the closed deficit plans with compulsory funding that are recorded under \u201cOther financial income (expenses) from operational activities\u201d.
Plan amendments, reductions and liquidations are immediately recognized in profit or loss. Actuarial differences and caps relating to post-employment benefit plan assets are fully recognized in other comprehensive income, net of asset management fees, without reclassification to profit or loss in a subsequent period.
Defined contribution plans
The group participates, in accordance with the regulations and corporate practices of each country, in the creation of retirement reserves for its staff, paying contributions on a mandatory or voluntary basis to external bodies such as pension funds, insurance companies or financial institutions.
These plans are defined contribution plans, in other words they do not guarantee the level of benefits paid. These contributions are recorded under \u201cEmployee expenses\u201d or \u201cOther operating income (expenses) from investing activities\u201d.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f104797": { "value": "Provisions are recognized in profit or loss, apart from provisions for decommissioning and some provisions for rehabilitation, whose counterpart is included in the cost of assets whose construction has created the obligation. This treatment applies in particular to some of Imerys\u2019 industrial installations and overburden mineral assets.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDecommissioningRestorationAndRehabilitationProvisionsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__97-1": { "value": "Current and non-current liabilities
Non-current liabilities (bank loans and bonds) and current liabilities (bank deposits) are initially recognized in the accounting records at their fair value less, in the case of a financial liability that has not been recorded at fair value through the income statement, the transaction costs that are directly imputed to the issuance of the financial liability.
After initial recording, they are valued at their amortized cost (initial amount less repayments of principal plus or minus the accumulated amortization of any difference between the initial amount and the value at maturity).
The exchangeable or convertible bonds issued by the group are considered as hybrid instruments, i.e., containing both a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds. The difference between the proceeds of issuance of the exchangeable or convertible bond and the fair value assigned to the bond component, representing the value of embedded option to exchange the bonds for shares, is included separately, depending on the option\u2019s maturity, in the heading \u201cOther current liabilities\u201d or \u201cOther non-current liabilities\u201d. The interest cost of the bond component is calculated by applying the prevailing interest market rate at the issuance date.
Transaction costs related to the issue of convertible or exchangeable bonds are allocated to the \u201cliability\u201d and \u201cderivative\u201d components in proportion to the allocation of gross proceeds.
Transaction costs related to the \u201cderivative\u201d component are recognized directly in profit or loss. Transaction costs related to the \u201cliability\u201d component are included in the carrying amount of the \u201cliability\u201d component and are amortized over the life of the convertible or exchangeable bonds using the effective interest rate method.
Trade payables and other financial non-derivative liabilities are measured at amortized cost.
The group derecognizes a financial liability if, and only if, its obligations are discharged, canceled or expired. The difference between the carrying amount of the derecognized financial liability and the consideration paid and payable is recognized in profit or loss. When the group exchanges a debt instrument with an existing lender for another instrument with substantially different terms, the exchange is recognized as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, if the contractual terms of an existing liability are substantially changed, the group also recognizes an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the contractual terms of the financial liability are substantially different if the present value of the cash flows under the new conditions, including any fees paid, net of fees collected and discounted at the original effective rate, is at least 10% different from the present value of the remaining cash flows of the original financial liability.
Derivative financial instruments
The group\u2019s consolidated operating companies use derivatives to reduce their exposure to various risks, in particular foreign exchange, interest rate and energy price risks. The sole purpose of these instruments is to hedge the economic risks to which they are exposed. Financial instruments are recognized at the transaction date, i.e., the date the hedge accounting contract is entered into. However, only those that fulfil the hedge accounting criteria laid down in IFRS 9 are given the accounting treatments described hereafter.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are immediately recognized in profit or loss.
Any transaction qualified as hedge accounting is documented by reference to the hedging strategy by identifying the hedged risk, the hedged item, the hedging instrument, the hedging relationship and the measurement method of the hedge relationship effectiveness.\u00a0The measurement of the hedge relationship effectiveness is updated at every reporting date.
Derivatives are measured at fair value on initial recognition. Fair value is subsequently remeasured at every reporting date by reference to market conditions and to IFRS 13 Fair Value Measurement.
Derivatives recorded as assets or liabilities are classified in the headings \u201cOther non-current assets/liabilities\u201d and \u201cOther current assets/ liabilities\u201d depending on their maturity date. The recognition of hedging derivatives varies depending on whether they are designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations.
GBL also uses derivative instruments. It can carry out transactions using call or put options. These transactions are implemented with reference to thorough documentation and are subject to specific and appropriate prior analysis and systematic monitoring.
Consolidated operating companies use different types of derivative financial instruments in various hedging strategies, as described below.
Fair value hedge
When changes in fair value of a recognized asset or liability or an unrecognized firm commitment may affect income, these changes may be covered by a fair value hedge. The hedged item and the hedging instrument are remeasured symmetrically in profit or loss at every reporting date. The impact in profit or loss is limited to the ineffective portion of the hedge.
Cash flow hedge
A cash flow hedge is used to cover unfavorable cash flow changes related to a recognized asset or liability or a highly likely future transaction when such changes are likely to affect profit or loss. At every reporting date, the effective share of the hedge and, if applicable, the changes in the time value of the options and futures points of the futures contracts, are recognized in shareholders\u2019 equity. The ineffective portion is recognized in profit or loss. When the transaction is recognized, items previously recognized in shareholders\u2019 equity are reclassified to profit or loss simultaneously with the recognition of the hedged item. In the event of a disqualification of a derivative, i.e., the interruption of hedge accounting, the effective portion of the hedge previously recognized in shareholders\u2019 equity is amortized to operating or financial result, depending on the nature of the hedged item.
Hedge of net investments in foreign operations
Foreign currency translation adjustments generated by net assets held by the group\u2019s consolidated operating companies in foreign currencies can be hedged. At every reporting date, the effective share of the hedge is recognized in shareholders\u2019 equity and the ineffective portion in profit or loss.
The effective portion in shareholders\u2019 equity is only reclassified as profit or loss in the case of loss of control over a consolidated activity or reduction of an interest in an activity under significant influence.
Interest
Interest income (expenses) include interest to be paid on loans and interest to be received on investments. Interest income received or interest charges paid are recorded prorata temporis in the consolidated statement of comprehensive income, taking into account the effective interest rate on the investment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__102-1": { "value": "Current and non-current liabilities
Non-current liabilities (bank loans and bonds) and current liabilities (bank deposits) are initially recognized in the accounting records at their fair value less, in the case of a financial liability that has not been recorded at fair value through the income statement, the transaction costs that are directly imputed to the issuance of the financial liability.
After initial recording, they are valued at their amortized cost (initial amount less repayments of principal plus or minus the accumulated amortization of any difference between the initial amount and the value at maturity).
The exchangeable or convertible bonds issued by the group are considered as hybrid instruments, i.e., containing both a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds. The difference between the proceeds of issuance of the exchangeable or convertible bond and the fair value assigned to the bond component, representing the value of embedded option to exchange the bonds for shares, is included separately, depending on the option\u2019s maturity, in the heading \u201cOther current liabilities\u201d or \u201cOther non-current liabilities\u201d. The interest cost of the bond component is calculated by applying the prevailing interest market rate at the issuance date.
Transaction costs related to the issue of convertible or exchangeable bonds are allocated to the \u201cliability\u201d and \u201cderivative\u201d components in proportion to the allocation of gross proceeds.
Transaction costs related to the \u201cderivative\u201d component are recognized directly in profit or loss. Transaction costs related to the \u201cliability\u201d component are included in the carrying amount of the \u201cliability\u201d component and are amortized over the life of the convertible or exchangeable bonds using the effective interest rate method.
Trade payables and other financial non-derivative liabilities are measured at amortized cost.
The group derecognizes a financial liability if, and only if, its obligations are discharged, canceled or expired. The difference between the carrying amount of the derecognized financial liability and the consideration paid and payable is recognized in profit or loss. When the group exchanges a debt instrument with an existing lender for another instrument with substantially different terms, the exchange is recognized as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, if the contractual terms of an existing liability are substantially changed, the group also recognizes an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the contractual terms of the financial liability are substantially different if the present value of the cash flows under the new conditions, including any fees paid, net of fees collected and discounted at the original effective rate, is at least 10% different from the present value of the remaining cash flows of the original financial liability.
Interest
Interest income (expenses) include interest to be paid on loans and interest to be received on investments. Interest income received or interest charges paid are recorded prorata temporis in the consolidated statement of comprehensive income, taking into account the effective interest rate on the investment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f105289": { "value": "Trade payables and other financial non-derivative liabilities are measured at amortized cost.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f105503": { "value": "Derivative financial instruments
The group\u2019s consolidated operating companies use derivatives to reduce their exposure to various risks, in particular foreign exchange, interest rate and energy price risks. The sole purpose of these instruments is to hedge the economic risks to which they are exposed. Financial instruments are recognized at the transaction date, i.e., the date the hedge accounting contract is entered into. However, only those that fulfil the hedge accounting criteria laid down in IFRS 9 are given the accounting treatments described hereafter.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are immediately recognized in profit or loss.
Any transaction qualified as hedge accounting is documented by reference to the hedging strategy by identifying the hedged risk, the hedged item, the hedging instrument, the hedging relationship and the measurement method of the hedge relationship effectiveness.\u00a0The measurement of the hedge relationship effectiveness is updated at every reporting date.
Derivatives are measured at fair value on initial recognition. Fair value is subsequently remeasured at every reporting date by reference to market conditions and to IFRS 13 Fair Value Measurement.
Derivatives recorded as assets or liabilities are classified in the headings \u201cOther non-current assets/liabilities\u201d and \u201cOther current assets/ liabilities\u201d depending on their maturity date. The recognition of hedging derivatives varies depending on whether they are designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations.
GBL also uses derivative instruments. It can carry out transactions using call or put options. These transactions are implemented with reference to thorough documentation and are subject to specific and appropriate prior analysis and systematic monitoring.
Consolidated operating companies use different types of derivative financial instruments in various hedging strategies, as described below.
Fair value hedge
When changes in fair value of a recognized asset or liability or an unrecognized firm commitment may affect income, these changes may be covered by a fair value hedge. The hedged item and the hedging instrument are remeasured symmetrically in profit or loss at every reporting date. The impact in profit or loss is limited to the ineffective portion of the hedge.
Cash flow hedge
A cash flow hedge is used to cover unfavorable cash flow changes related to a recognized asset or liability or a highly likely future transaction when such changes are likely to affect profit or loss. At every reporting date, the effective share of the hedge and, if applicable, the changes in the time value of the options and futures points of the futures contracts, are recognized in shareholders\u2019 equity. The ineffective portion is recognized in profit or loss. When the transaction is recognized, items previously recognized in shareholders\u2019 equity are reclassified to profit or loss simultaneously with the recognition of the hedged item. In the event of a disqualification of a derivative, i.e., the interruption of hedge accounting, the effective portion of the hedge previously recognized in shareholders\u2019 equity is amortized to operating or financial result, depending on the nature of the hedged item.
Hedge of net investments in foreign operations
Foreign currency translation adjustments generated by net assets held by the group\u2019s consolidated operating companies in foreign currencies can be hedged. At every reporting date, the effective share of the hedge is recognized in shareholders\u2019 equity and the ineffective portion in profit or loss.
The effective portion in shareholders\u2019 equity is only reclassified as profit or loss in the case of loss of control over a consolidated activity or reduction of an interest in an activity under significant influence.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f105504": { "value": "Derivative financial instruments
The group\u2019s consolidated operating companies use derivatives to reduce their exposure to various risks, in particular foreign exchange, interest rate and energy price risks. The sole purpose of these instruments is to hedge the economic risks to which they are exposed. Financial instruments are recognized at the transaction date, i.e., the date the hedge accounting contract is entered into. However, only those that fulfil the hedge accounting criteria laid down in IFRS 9 are given the accounting treatments described hereafter.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are immediately recognized in profit or loss.
Any transaction qualified as hedge accounting is documented by reference to the hedging strategy by identifying the hedged risk, the hedged item, the hedging instrument, the hedging relationship and the measurement method of the hedge relationship effectiveness.\u00a0The measurement of the hedge relationship effectiveness is updated at every reporting date.
Derivatives are measured at fair value on initial recognition. Fair value is subsequently remeasured at every reporting date by reference to market conditions and to IFRS 13 Fair Value Measurement.
Derivatives recorded as assets or liabilities are classified in the headings \u201cOther non-current assets/liabilities\u201d and \u201cOther current assets/ liabilities\u201d depending on their maturity date. The recognition of hedging derivatives varies depending on whether they are designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations.
GBL also uses derivative instruments. It can carry out transactions using call or put options. These transactions are implemented with reference to thorough documentation and are subject to specific and appropriate prior analysis and systematic monitoring.
Consolidated operating companies use different types of derivative financial instruments in various hedging strategies, as described below.
Fair value hedge
When changes in fair value of a recognized asset or liability or an unrecognized firm commitment may affect income, these changes may be covered by a fair value hedge. The hedged item and the hedging instrument are remeasured symmetrically in profit or loss at every reporting date. The impact in profit or loss is limited to the ineffective portion of the hedge.
Cash flow hedge
A cash flow hedge is used to cover unfavorable cash flow changes related to a recognized asset or liability or a highly likely future transaction when such changes are likely to affect profit or loss. At every reporting date, the effective share of the hedge and, if applicable, the changes in the time value of the options and futures points of the futures contracts, are recognized in shareholders\u2019 equity. The ineffective portion is recognized in profit or loss. When the transaction is recognized, items previously recognized in shareholders\u2019 equity are reclassified to profit or loss simultaneously with the recognition of the hedged item. In the event of a disqualification of a derivative, i.e., the interruption of hedge accounting, the effective portion of the hedge previously recognized in shareholders\u2019 equity is amortized to operating or financial result, depending on the nature of the hedged item.
Hedge of net investments in foreign operations
Foreign currency translation adjustments generated by net assets held by the group\u2019s consolidated operating companies in foreign currencies can be hedged. At every reporting date, the effective share of the hedge is recognized in shareholders\u2019 equity and the ineffective portion in profit or loss.
The effective portion in shareholders\u2019 equity is only reclassified as profit or loss in the case of loss of control over a consolidated activity or reduction of an interest in an activity under significant influence.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__107-1": { "value": "Fair value hedge
When changes in fair value of a recognized asset or liability or an unrecognized firm commitment may affect income, these changes may be covered by a fair value hedge. The hedged item and the hedging instrument are remeasured symmetrically in profit or loss at every reporting date. The impact in profit or loss is limited to the ineffective portion of the hedge.
Cash flow hedge
A cash flow hedge is used to cover unfavorable cash flow changes related to a recognized asset or liability or a highly likely future transaction when such changes are likely to affect profit or loss. At every reporting date, the effective share of the hedge and, if applicable, the changes in the time value of the options and futures points of the futures contracts, are recognized in shareholders\u2019 equity. The ineffective portion is recognized in profit or loss. When the transaction is recognized, items previously recognized in shareholders\u2019 equity are reclassified to profit or loss simultaneously with the recognition of the hedged item. In the event of a disqualification of a derivative, i.e., the interruption of hedge accounting, the effective portion of the hedge previously recognized in shareholders\u2019 equity is amortized to operating or financial result, depending on the nature of the hedged item.
Hedge of net investments in foreign operations
Foreign currency translation adjustments generated by net assets held by the group\u2019s consolidated operating companies in foreign currencies can be hedged. At every reporting date, the effective share of the hedge is recognized in shareholders\u2019 equity and the ineffective portion in profit or loss.
The effective portion in shareholders\u2019 equity is only reclassified as profit or loss in the case of loss of control over a consolidated activity or reduction of an interest in an activity under significant influence.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__117-1": { "value": "Items denominated in foreign currencies
Monetary assets and liabilities denominated in foreign currencies in the accounting records of group companies are translated into euros using the exchange rates of the last day of the financial year. Unrealized differences on translation resulting from the application of this methodology are recorded as gains or losses of the financial year. Non- monetary assets and liabilities are recorded using the exchange rates applicable on the date of the transaction.
In the consolidated financial statements, the group\u2019s assets and liabilities related to activities held abroad are converted at the closing rate.
Items of income and expenses denominated in foreign currencies are converted into euros at the average exchange rate for the year. Foreign currency translation adjustments reflecting the difference between the average rate and the rate on the last day of the year, are recognized in shareholders\u2019 equity under \u201cForeign currency translation adjustments\u201d. These foreign currency translation adjustments are recorded in profit or loss when the group disposes of the entity concerned.
Exchange rates used
2023 | 2022 | |
Closing rate | ||
US Dollar | 1.11 | 1.07 |
Swiss franc | 0.93 | 0.98 |
Average rate | ||
US Dollar | 1.08 | 1.05 |
Revenue
For Imerys, revenue is made up of two elements: on the one hand, the sale of goods and on the other hand, the services rendered mainly made out of the reinvoicing to customers of the cost of shipping goods and\u00a0industrial services provided. The contractual commitments made by the group to transfer these goods and services to its customers are categorized as performance obligations. When control of goods or services is transferred to customers, the performance obligation is deemed to have been satisfied and the revenue is recognized. Goods are therefore transferred to customers at a given point in time, which coincides with the transfer of all the risks and rewards defined in the contractual incoterms. The contract includes multiple incoterms due to the specificities as defined in contracts. However, while certain services, such as molding work, are rendered at a given point in time, most of the other services are transferred to customers over time, notably in the case of shipping services, for which the revenue is recognized after the delivery has been made, and certain specialized services in the
construction of industrial facilities or services aimed at intervening in the management of the customer process and whose degree of completion is measured based on the actual level of production costs committed or based on the time spent. Collateral requirements on the sale of goods and rendering of services offer customers guarantees about the specifications agreed in the contracts, rather than an additional service on top of these guarantees. Consequently, guarantees are not recognized as performance obligations but as provisions. Sale of goods and rendering of services are measured at the amount of the transaction, minus trade and volume rebates, as well as discounts for early payment.
For Canyon, sales are generated by the following revenue streams: B2C e-commerce, B2B e-commerce, workshops and services. Canyon grants its customers a 30-day right of return. A return rate is determined on the basis of historical data. This rate is used to establish a provision in the balance sheet for expected returns and is deducted from revenues.
For Sanoptis, revenues are generated by two main surgical treatments. One is cataract surgery, in which the opacified lens is replaced by an artificial lens, and the other is age-related macular degeneration surgery, in which multiple injections are made into the patient\u2019s eyeball. In the case of these medical treatments, billing takes place via statutory or private health insurance funds. The two billing processes are considered separately for recording and evaluating sales revenue.Sales generated are recorded daily, based on completed treatments in the patient software, and revenues are recorded at least monthly in the income statement. The starting point is the number of treatments performed during the month and the number of treatments. An operation is billed when all the operation forms and documents are available.Statutory health insurance funds are invoiced on a quarterly basis. Payment is made up to five months later, and may include deductibles on the amount invoiced. These deductions are estimated in advance as part of the revenue recognition process. The final payment is compared with the estimated amounts, and any difference is recorded as an adjustment. For private health insurance patients, classical services are billed as soon as possible, and are therefore recorded on the basis of the amounts actually billed.
For Affidea, income comes mainly from the reimbursement value of healthcare services, examinations and treatments carried out. The main sources of revenue are diagnostic imaging, cancer treatment and laboratory analyses. Revenues are recognized in the year in which the examinations and treatments take place, to the extent that it is highly probable that a significant reversal of the amount of accumulated revenues recognized will not occur.
Sale of goods and rendering of services are measured at the fair value of the transaction, minus trade and volume rebates, as well as discounts for early payment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f106304": { "value": "Revenue
For Imerys, revenue is made up of two elements: on the one hand, the sale of goods and on the other hand, the services rendered mainly made out of the reinvoicing to customers of the cost of shipping goods and\u00a0industrial services provided. The contractual commitments made by the group to transfer these goods and services to its customers are categorized as performance obligations. When control of goods or services is transferred to customers, the performance obligation is deemed to have been satisfied and the revenue is recognized. Goods are therefore transferred to customers at a given point in time, which coincides with the transfer of all the risks and rewards defined in the contractual incoterms. The contract includes multiple incoterms due to the specificities as defined in contracts. However, while certain services, such as molding work, are rendered at a given point in time, most of the other services are transferred to customers over time, notably in the case of shipping services, for which the revenue is recognized after the delivery has been made, and certain specialized services in the
construction of industrial facilities or services aimed at intervening in the management of the customer process and whose degree of completion is measured based on the actual level of production costs committed or based on the time spent. Collateral requirements on the sale of goods and rendering of services offer customers guarantees about the specifications agreed in the contracts, rather than an additional service on top of these guarantees. Consequently, guarantees are not recognized as performance obligations but as provisions. Sale of goods and rendering of services are measured at the amount of the transaction, minus trade and volume rebates, as well as discounts for early payment.
For Canyon, sales are generated by the following revenue streams: B2C e-commerce, B2B e-commerce, workshops and services. Canyon grants its customers a 30-day right of return. A return rate is determined on the basis of historical data. This rate is used to establish a provision in the balance sheet for expected returns and is deducted from revenues.
For Sanoptis, revenues are generated by two main surgical treatments. One is cataract surgery, in which the opacified lens is replaced by an artificial lens, and the other is age-related macular degeneration surgery, in which multiple injections are made into the patient\u2019s eyeball. In the case of these medical treatments, billing takes place via statutory or private health insurance funds. The two billing processes are considered separately for recording and evaluating sales revenue.Sales generated are recorded daily, based on completed treatments in the patient software, and revenues are recorded at least monthly in the income statement. The starting point is the number of treatments performed during the month and the number of treatments. An operation is billed when all the operation forms and documents are available.Statutory health insurance funds are invoiced on a quarterly basis. Payment is made up to five months later, and may include deductibles on the amount invoiced. These deductions are estimated in advance as part of the revenue recognition process. The final payment is compared with the estimated amounts, and any difference is recorded as an adjustment. For private health insurance patients, classical services are billed as soon as possible, and are therefore recorded on the basis of the amounts actually billed.
For Affidea, income comes mainly from the reimbursement value of healthcare services, examinations and treatments carried out. The main sources of revenue are diagnostic imaging, cancer treatment and laboratory analyses. Revenues are recognized in the year in which the examinations and treatments take place, to the extent that it is highly probable that a significant reversal of the amount of accumulated revenues recognized will not occur.
Sale of goods and rendering of services are measured at the fair value of the transaction, minus trade and volume rebates, as well as discounts for early payment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f106992": { "value": "Interest
Interest income (expenses) include interest to be paid on loans and interest to be received on investments. Interest income received or interest charges paid are recorded prorata temporis in the consolidated statement of comprehensive income, taking into account the effective interest rate on the investment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f107109": { "value": "Changes in accounting policies and errors
A change in the accounting policies is only applied to meet the requirements of a standard or an interpretation, or if it gives more reliable and more relevant information. Changes in accounting policies are recognized retrospectively, except when specific transitional provisions are stated in a standard or an interpretation. When an error is detected, it is also retrospectively adjusted. No errors were corrected in 2023 or 2022.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f107110": { "value": "Changes in accounting policies and errors
A change in the accounting policies is only applied to meet the requirements of a standard or an interpretation, or if it gives more reliable and more relevant information. Changes in accounting policies are recognized retrospectively, except when specific transitional provisions are stated in a standard or an interpretation. When an error is detected, it is also retrospectively adjusted. No errors were corrected in 2023 or 2022.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f107215": { "value": "Main estimates and judgments
During the preparation of the financial statements, the group makes a number of estimates and judgments relating to the recognition and measurement of its assets and liabilities. These assessments are intended to address the uncertain nature of the risks and opportunities to which the group\u2019s activities are exposed to. Among these, the risks and opportunities related to climate change, which may mainly impact Imerys\u2019 activities, are given particular attention. The group has decided to further integrate climate change and sustainable development issues into its strategy in order to reduce risks and create new opportunities for sustainable value creation. We refer to the ESG section. In this context, risks and opportunities are assessed in terms of market developments, physical risks and changes in the energy mix.
Uncertainties inherent to the business require estimates to be made when preparing the financial statements. These estimates result from judgements aiming at providing a true and fair view based upon available and reliable information. An estimate is revised to reflect changes in circumstances, new information available and effects linked to experience. Changes in estimates are accounted for on a prospective basis.
When such estimates are established, they are explained in the notes on the items to which they relate.
The main estimates are the following:
the valuation of the assets and liabilities of an acquired business (section \u201cScope of consolidation, associates and changes in group structure\u201d);
the principal assumptions related to goodwill impairment testing (Note 10), intangible assets (Note 9) and property, plant and equipment (Note 11), such as the duration, the amount of future cash flows as well as the discount rate and perpetual growth involved in computing the value in use of the tested assets. In particular, GBL has included in its estimates the uncertainties related to the risks and opportunities associated with climate change;
the valuation of unlisted assets or funds;
an estimate of the useful life of intangible assets with limited life (Note 9) and property, plant and equipment (Note 11);
estimates of indicators related to the climate and sustainable development that may create obligations for the group if they are not abided by, in particular estimates at Imerys:
the amount of greenhouse gas emissions generated by its industrial facilities and the need to purchase emission rights so as to assess the provisions covering any potential deficits (Note\u00a09);
the fulfilment of the sustainable development goals that Imerys must pursue and are indexed to Sustainability-Linked Bonds (Note\u00a017.2).
For Imerys, valuation methods to assess the acquisition cost of mining assets; in particular Imerys integrates the risks and opportunities related to climate change in the business plans used to draw up the geological inventory of mineral deposits, which is used as a base from which to calculate the acquisition cost (Note\u00a011);
estimate of reasonably certain lease terms of certain leases (Note\u00a011);
the estimation of inflation levels incorporated in the valuation of certain future cash flows, notably in the context of impairment tests (note 10), the valuation of other provisions (Note 20) and the valuation of defined benefit plans (Note 21);
the assessment, as part of the recognition and measurement of provisions, of the probability of settlement and amount of the obligation, of the expected timing of future payments and of discount rates (Note 20);
actuarial assumptions for defined benefit plans (Note 21); and
the assumptions related to the evaluation of debts on minority interests (Note 22).
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__133-1": { "value": "Exchange rates used
2023 | 2022 | |
Closing rate | ||
US Dollar | 1.11 | 1.07 |
Swiss franc | 0.93 | 0.98 |
Average rate | ||
US Dollar | 1.08 | 1.05 |
Foreign exchange riskis defined as the risk whereby a cash flow labeled in foreign currency may be subject to a deterioration caused by an unfavorable change in its counterpart in functional currency. The group is exposed to foreign exchange risk through:
(i)\tThe impact it can have on the value of its portfolio through investments quoted in foreign currencies (accounted for as other equity investments and trading assets), as well as through dividend flows it receives. As of December\u00a031, 2023, GBL was primarily exposed to CHF and USD. A 10% appreciation/depreciation in the Euro versus its end-of-year rate for all currencies used by the group would have had an impact of EUR\u00a0- 494\u00a0million and EUR\u00a0494\u00a0million on shareholders\u2019 equity and EUR\u00a0- 132\u00a0million and EUR\u00a0132\u00a0million on the annual income statement. These calculations only concern statements of financial position owned by the group and does not take into account the impact of the appreciation/depreciation of these currencies on the market price of the underlying assets.
(ii)\tThe impact on the underlying elements of its net financial debt, i.e., before foreign exchange rates derivatives as of December\u00a031, 2023. A 10% downward or upward variation of the Euro against other foreign currencies would generate a variation of EUR\u00a042\u00a0million and EUR\u00a0- 42\u00a0million on\u00a0net financial debt. A 10% decrease/increase in foreign currency exchange rates on the portfolio of derivative instruments held as of December\u00a031,\u00a02023 for highly probable future transactions of purchases and sales in foreign currencies would have an impact on equity (effective portion of derivative instruments qualified as cash flow hedges) of EUR\u00a00\u00a0million and EUR\u00a00\u00a0million respectively and on the income statement (ineffective portion of derivative instruments qualified as cash flow hedges of cash and derivative instruments not eligible for hedge accounting) of\u00a0EUR\u00a00\u00a0million and EUR\u00a00\u00a0million.
The transactions performed by the group are accounted for, wherever possible, in the functional currency of the entity that carries out the transaction. When it is not possible to record a transaction in the functional currency of the entity, the transactional currency risk may be hedged on an individual basis using forwards, swaps or options. The corresponding instruments qualify as cash flow hedges.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f108167": { "value": "Presentation of the consolidated financial statements
The consolidated income statement separately presents:
-\tInvesting activities
Components of income resulting from investing activities, which include the operations of GBL and of its subsidiaries whose main purpose is investment management. This includes GBL\u00a0Capital and Sienna Investment Managers as well as the profit (loss) of operating associates (Parques\u00a0Reunidos/Piolin II) and non-consolidated operating companies (Pernod\u00a0Ricard, SGS, adidas, Umicore, etc.); and
-\tConsolidated operating activities
Components of income from consolidated operating activities, i.e.,\u00a0from consolidated operating companies (Imerys, Webhelp, Canyon, Sanoptis, Affidea as well as the sub-groups Sausalitos, Vanreusel, etc).
", "dimensions": { "concept": "ifrs-full:DescriptionOfOtherAccountingPoliciesRelevantToUnderstandingOfFinancialStatements", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__136-1": { "value": "7.1.7\tScope of consolidation, associates and joint ventures and changes in group structure
Fully consolidated subsidiaries
Interest and voting rights (in %) | Main activity | |||
NAME | Registered office | 2023 | 2022 | |
Brussels Securities SA | Brussels | 100.0 | 100.0 | Holding |
GBL O SA | Brussels | 100.0 | 100.0 | Holding |
Sagerpar SA | Brussels | 100.0 | 100.0 | Holding |
URDAC SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR II SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR III SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR IV SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR V SRL | Brussels | 100.0 | 100.0 | Holding |
FINPAR VI SRL | Brussels | 100.0 | 100.0 | Holding |
FINPAR VII SRL | Brussels | 100.0 | 100.0 | Holding |
Finpar VIII SRL | Brussels | 100.0 | 100.0 | Holding |
Finpar IX SRL | Brussels | 100.0 | - | Holding |
LTI Two SA | Brussels | 100.0 | 100.0 | Holding |
Tr\u00f4ne24 SRL | Brussels | 100.0 | - | Holding |
GBL Verwaltung SA | Luxembourg | 100.0 | 100.0 | Holding |
Belgian Securities S\u00e0rl (previously Belgian Securities BV) | ||||
Luxembourg (previously Amsterdam) | 100.0 | 100.0 | Holding | |
Sapiens S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Marnix Lux S\u00e0rl (group Webhelp and subsidiaries) | Luxembourg | - | 61.3 | Operational |
G.f.G. Topco S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
G.f.G. Capital S\u00e0rl | Luxembourg | 90.5 | 90.5 | Holding |
GoforGold Holding GmbH (group Canyon and subsidiaries) | Koblenz | 55.2 | 54.8 | Operational |
Celeste Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Celeste InvestCo SA | Luxembourg | 100.0 | 100.0 | Holding |
Celeste TopCo SA | Luxembourg | 99.0 | 99.5 | Holding |
Celeste Midco 1 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste Midco 2 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste Midco 3 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste BidCo BV (group Affidea and subsidiaries) | Netherlands | 100.0 | 100.0 | Operational |
Celeste GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia InvestCo SA | Luxembourg | 99.7 | 99.7 | Holding |
Sofia MasterCo SA | Luxembourg | 83.6 | 84.1 | Holding |
Sofia TopCo S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia Holdco S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia MidCo S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia BidCo S\u00e0rl (group Sanoptis and subsidiaries) (newly Sanoptis\u00a0S\u00e0rl) | Luxembourg | 100.0 | 100.0 | Operational |
One24 Capital SCA | Luxembourg | 100.0 | - | Holding |
Arthur Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Energy S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Serena S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Finance S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Eliott Capital S\u00e0rl | Luxembourg | - | 100.0 | Holding |
Miles Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Owen Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Theo Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Oliver Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Jade Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Vancouver Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Investments Ltd | Dublin | 100.0 | 100.0 | Holding |
GBL Development Ltd | London | 100.0 | 100.0 | Operational |
GBL Advisors Ltd | London | 100.0 | 100.0 | Operational |
RCPE Consulting SAS | Paris | 100.0 | 100.0 | Operational |
GBL Advisors DE GmbH | Munich | 100.0 | - | Operational |
Interest and voting rights (in %) | Main activity | |||
NAME | Registered office | 2023 | 2022 | |
Imerys SA (and subsidiaries) | Paris | 54.6 | 54.6 | Operational |
GBL Capital Participations S\u00e0rl | Luxembourg | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Investment Managers SA (newly Sienna Investment Managers\u00a0Luxembourg\u00a0SA) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Euclide SA | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Euclide GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Euclide SCA SICAV-RAIF | Luxembourg | 84.7 | - | GBL Capital and SIM |
Sienna Landlife SA | Luxembourg | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Landlife GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Landlife SCA SICAV-RAIF | Luxembourg | 84.4 | - | GBL Capital and SIM |
Sienna AM Luxembourg SA | Wilmington | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Capital US LLC | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital Invest GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital Invest SCSp | London | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital UK (previously Sienna Capital London Ltd) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Fund SCSp | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Carry SCSp | Luxembourg | - | 100,0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Master S\u00e0rl | Luxembourg | - | 100.0 | GBL Capital and SIM |
Sienna Capital Co-Invest Master S\u00e0rl (newly GBL Capital Coinvest Master S\u00e0rl) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna PE Invest GP S\u00e0rl | Luxembourg | - | 100.0 | GBL Capital and SIM |
Sienna Venture Capital GP S\u00e0rl | Luxembourg | 70.0 | 100.0 | GBL Capital and SIM |
Sienna Venture Capital SAS | Paris | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Venture Capital SCA SICAV-RAIF | Luxembourg | 100.0 | - | GBL Capital and SIM |
Sienna Real Estate Solutions S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Real Estate Partner JV Netherlands BV (group Sienna Real Estate and subsidiaries) | Amsterdam | 89.4 | 89.4 | GBL Capital and SIM |
Sienna Gestion (group Sienna Gestion and subsidiaries) | Paris | 66.6 | 66.6 | GBL Capital and SIM |
Sienna 2A SAS (group Sienna Private Credit and subsidiaries) | Paris | 87.5 | 87.5 | GBL Capital and SIM |
Sienna Private Equity SAS | Paris | 75.0 | 75.0 | GBL Capital and SIM |
Sienna Private Equity GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Private Equity Fund I SCA SICAV-RAIF | Luxembourg | 100.0 | - | GBL Capital and SIM |
Sienna SID III GP S\u00e0rl | Luxembourg | 100.0 | - | GBL Capital and SIM |
Apheon MidCap Buyout III SA (previously Ergon Capital Partners III SA) (group AMB III and subsidiaries) | Brussels | 89.9 | 89.9 | GBL Capital and SIM |
The percentage of voting rights is identical to the percentage interest, with the exception of Imerys, for which the voting rights are 68.11% and of the Sanoptis group, for which the voting rights are 61.96%. An incentive plan has also been granted to the management of Apheon MidCap Buyout\u00a0III, covering 16.67% of the shares.
Associates and joint ventures
RATE (IN %) | ||||||||
Avanti Acquisition SCSP | StreetTeam Software Ltd | Piolin II S\u00e0rl /Parques Reunidos | Backed 1 LP | Backed Encore 1 LP | Backed 2 LP | Apheon MidCap Buyout SA (previously Ergon Capital Partners SA) | ||
Office | Luxembourg | London | Luxembourg | Jersey | Jersey | Jersey | Brussels | |
Activity | GBL Capital and SIM | GBL Capital and SIM | Leisure parks | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | |
2023 | DETENTION RATE | - | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
2022 | Detention rate | 50.0 | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
RATE (IN %) | Apheon MidCap Buyout II SA (previously Ergon Capital Partners II SA) | Apheon MidCap Buyout IV SCSP (previously Ergon Capital Partners IV SCSp) | I.P.E. SRL, subsidiary of AMB III (previously ECP III) | M\u00e9rieux Participations 2 SAS | Landlife Holding S\u00e0rl | |||
Office | Brussels | Luxembourg | Bologna | Lyon | Luxembourg | |||
Activity | GBL Capital and SIM | GBL Capital and SIM | Home furnishing | GBL Capital and SIM | GBL Capital and SIM | |||
2023 | DETENTION RATE | 50.0 | 34.4 | 65.6 | 34.3 | 30.7 | ||
2022 | Detention rate | 50.0 | 34.4 | 65.6 | 34.3 | 35.1 |
The percentage of voting rights is identical to the percentage interest.
The group has analyzed the accounting treatment to be applied to the recognition of its investment in I.P.E. SRL (Visionnaire group) and has concluded that it only has a significant influence despite its 65.55% interest, based on the existence of a shareholders\u2019 agreement. The group reached the same conclusion regarding the consolidation method to be used to integrate the investments in Backed Encore 1 LP.
As of December\u00a031, 2023, GBL holds a stake in the funds Eight Partners Worldwide SAS (22.01%), Kartesia Credit Opportunities III SCA (31.15%), Sagard II B (74.65%), Sagard 3 FPCI (26.93%), Sagard Sant\u00e9 Animale FPCI (32.41%), Sagard Testing FPCI (63.72%), Sagard Business Intelligence FPCI (92.59%), Sagard NewGen Pharma FPCI (32.31%), Marcho Partners Feeder Fund ICAV (39.10%), C2 Capital Global Export-to-China Fund LP (26.96%), KKR Sigma Co-Invest II LP (32.30%), Sienna Levier ENR (100.00%), Sienna Rendement Avenir IV (25.11%), HCM IV LP/HCM V LP/HCM S11A LP/HCM S3C LP (20.27%, 28.55%, 56.26% and 49.26% respectively) and has determined that it has no significant influence over those investments. These funds are therefore presented as other equity investments and are measured at fair value at each reporting date.
In the rest of the notes, Apheon MidCap Buyout, Apheon MidCap Buyout II and Apheon MidCap Buyout IV have been referred to together under the\u00a0name \u201cAMB I, II & IV\u201d, while the name \u201cAMB\u201d refers to these companies referred to above and Apheon MidCap Buyout III (\u201cAMB III\u201d). Similarly, Backed\u00a01 LP, Backed Encore 1 LP and Backed 2 LP entities will be referred to as \u201cBacked\u201d, the entity Piolin II S\u00e0rl as \u201cPiolin II\u201d, the entity StreetTeam\u00a0Software Ltd. as \u201cStreetTeam\u201d and the entity Avanti Acquisition SCSP as \u201cAvanti Acquisition Corp.\u201d
Note 2Associates and joint ventures
2.1\tShare of profit (loss)
Dividends received from equity-accounted entities have been eliminated and replaced by GBL\u2019s share of their profit or loss.
Dividends received
In EUR\u00a0million | 2023 | 2022 |
M\u00e9rieux Participations 2 | 5.0 | 13.3 |
Other associates and joint ventures | 54.7 | 5.8 |
Total | 59.6 | 19.1 |
Profit (loss) of associates and joint ventures (GBL\u2019s share)
In EUR\u00a0million | 2023 | 2022 |
Share of profit or loss of associates and joint ventures \u2013 investing activities | 44.0 | 3.2 |
AMB I, II & IV\u00a0 | 72.9 | 9.2 |
Backed | 10.6 | (10.3) |
Avanti Acquisition Corp. | - | 1.8 |
StreetTeam | - | - |
Landlife Holding | (2.2) | (0.0) |
M\u00e9rieux Participations 2 | (15.5) | 1.2 |
Parques Reunidos/Piolin II | (21.8) | 1.3 |
Associates and joint ventures related to consolidated operating activities (shown under \"Other operating income (expenses)\")\u00a0 | 94.6 | 32.6 |
The Quartz Corporation (Imerys) | 80.1 | 18.4 |
I.P.E. | 4.7 | 2.5 |
Other | 9.8 | 11.7 |
Total | 138.5 | 35.9 |
AMB I, II & IV
The contribution of AMB I, II & IV to the net result of GBL amounts to EUR\u00a073\u00a0million in 2023 (EUR\u00a09\u00a0million in 2022). This result mainly includes gains on the revaluation to fair value of AMB IV\u2019s share portfolio.
Backed
Backed contributed to GBL\u2019s result for EUR\u00a011\u00a0million (EUR\u00a0- 10\u00a0million in 2022). This result comes mainly from fair value revaluation gains on its investment portfolio.
M\u00e9rieux Participations 2
The contribution of M\u00e9rieux Participations 2 (EUR\u00a0- 15\u00a0million versus EUR\u00a01\u00a0million in 2022) includes mainly fair value revaluation on its investment portfolio.
Parques Reunidos/Piolin II
The net result (GBL\u2019s share) of Parques Reunidos/Piolin II amounts to EUR\u00a0- 22\u00a0million in 2023 (EUR\u00a01\u00a0million in 2022).
2.2Value of associates and joint ventures
Investing activities | Operating activities | Total | ||||||||
In EUR\u00a0million | Parques Reunidos/Piolin II | Backed | AMB I, II & IV | Avanti | StreetTeam | Landlife Holding | M\u00e9rieux Participations 2 | I.P.E. | Other | |
As of December 31, 2021 | 89.7 | 141.9 | 191.0 | 4.7 | 70.5 | - | 62.4 | 44.2 | 101.1 | 705.4 |
Investment/(Divestment) | - | 7.9 | 18.9 | 0.5 | - | 0.0 | (10.2) | (5.2) | (3.6) | 8.2 |
Profit (loss) for the year | 1.3 | (10.3) | 9.2 | 1.8 | - | - | 1.2 | 2.5 | 30.1 | 35.9 |
Distribution | - | - | - | - | - | - | (13.3) | - | (5.8) | (19.1) |
Impairment | - | - | - | (7.4) | (76.8) | - | - | (5.3) | - | (89.5) |
Other | (0.8) | (0.0) | - | 0.5 | 6.4 | - | 0.0 | (0.0) | (29.4) | (23.4) |
As of December 31, 2022 | 90.2 | 139.4 | 219.1 | - | - | 0.0 | 40.0 | 36.2 | 92.5 | 617.4 |
Investment/(Divestment) | - | 4.5 | 4.8 | (7.4) | - | 55.3 | (2.2) | - | 9.2 | 64.1 |
Profit (loss) for the year | (21.8) | 10.6 | 72.9 | - | - | (2.2) | (15.5) | 4.7 | 89.8 | 138.5 |
Distribution | - | - | - | - | - | - | (5.0) | - | (54.7) | (59.6) |
Impairment | - | - | - | 7.4 | - | - | - | 7.4 | - | 14.8 |
Other | (0.4) | 0.0 | - | - | - | (0.3) | 0.0 | 0.0 | (2.6) | (3.3) |
As of December 31, 2023 | 68.0 | 154.5 | 296.8 | - | - | 52.8 | 17.4 | 48.3 | 134.2 | 771.8 |
Of which: Holding | 68.0 | - | - | - | - | - | - | - | - | 68.0 |
Imerys | - | - | - | - | - | - | - | - | 122.7 | 122.7 |
Canyon | - | - | - | - | - | - | - | - | 0.0 | 0.0 |
Affidea | - | - | - | - | - | - | - | - | - | - |
Sanoptis | - | - | - | - | - | - | - | - | 10.1 | 10.1 |
GBL Capital and SIM | - | 154.5 | 296.8 | - | - | 52.8 | 17.4 | 48.3 | 1.3 | 571.0 |
Associates and joint ventures are not listed.
2.3Other information on associates and joint ventures
Aggregated financial information of major associates and joint ventures
The tables below present a summary of the financial information regarding Backed, AMB I, II & IV and Parques Reunidos/Piolin II, significant associates in 2023 and the other smaller associates and joint ventures. This summary represents the amounts included in the companies\u2019 financial statements prepared in accordance with IFRS.
In EUR\u00a0million | Backed | AMB I, II & IV | Parques Reunidos/Piolin II | Other associates and joint ventures | Total |
As of December 31, 2023 | |||||
Non-current assets | 361.5 | 919.4 | 2,354.9 | 764.4 | 4,400.2 |
Current assets | 2.4 | 18.8 | 126.6 | 411.0 | 558.8 |
Non-current liabilities | 38.4 | 76.4 | 1,789.6 | 145.0 | 2,049.3 |
Current liabilities | 1.2 | 0.2 | 396.4 | 493.0 | 890.7 |
Non-controlling interests | - | - | 1.4 | 120.9 | 122.3 |
Shareholder's equity (group's share) | 324.4 | 861.7 | 294.2 | 416.6 | 1,896.8 |
Ownership interest in capital | n.r. | n.r. | 23.1% | n.r. | n.r. |
Share in equity | 154.5 | 296.8 | 68.0 | 247.9 | 767.2 |
Goodwill | - | - | - | 4.6 | 4.6 |
Carrying amount as of December 31, 2023 | 154.5 | 296.8 | 68.0 | 252.5 | 771.8 |
Turnover | - | - | 830.1 | 548.9 | 1,379.0 |
Profit (loss) from continuing operations | 22.3 | 211.8 | (94.6) | 127.0 | 266.7 |
Net result of the year (including non-controlling interests) | 22.3 | 211.8 | (94.8) | 127.0 | 266.4 |
Net result of the year (group\u2019s share) | 22.3 | 211.8 | (94.6) | 41.2 | 180.9 |
Other comprehensive income (loss) | - | - | (0.7) | - | (0.7) |
Total comprehensive income (loss) for the year | 22.3 | 211.8 | (95.2) | 41.2 | 180.2 |
Dividends received during the year | - | - | - | 59.6 | 59.6 |
Share of the group in the profit (loss) for the year | 10.6 | 72.9 | (21.8) | 76.9 | 138.5 |
In EUR\u00a0million | |||||
Backed | AMB I, II & IV | Parques Reunidos/Piolin II | Other associates and joint ventures | Total | |
As of December 31, 2022 | |||||
Non-current assets | 320.1 | 678.0 | 2,369.9 | 277.4 | 3,645.5 |
Current assets | 4.8 | 3.3 | 150.7 | 170.4 | 329.2 |
Non-current liabilities | 31.6 | 40.8 | 1,830.7 | 67.9 | 1,970.9 |
Current liabilities | 1.4 | 5.1 | 298.1 | 74.8 | 379.4 |
Non-controlling interests | - | - | 1.3 | 0.0 | 1.3 |
Shareholder's equity (group's share) | 291.9 | 635.5 | 390.6 | 305.0 | 1,623.0 |
Ownership interest in capital | n.r. | n.r. | 23.1% | n.r. | n.r. |
Share in equity | 139.4 | 219.1 | 90.2 | 163.9 | 612.6 |
Goodwill | - | - | - | 4.8 | 4.8 |
Carrying amount as of December 31, 2022 | 139.4 | 219.1 | 90.2 | 168.7 | 617.4 |
Turnover | - | - | 820.5 | 334.9 | 1,155.4 |
Profit (loss) from continuing operations | (15.0) | 26.7 | 5.9 | 58.5 | 76.1 |
Net result of the year (including non-controlling interests) | (15.0) | 26.7 | 5.9 | 58.5 | 76.1 |
Net result of the year (group\u2019s share) | (15.0) | 26.7 | 5.7 | 58.5 | 75.9 |
Other comprehensive income (loss) | - | - | (4.2) | 0.0 | (4.1) |
Total comprehensive income (loss) for the year | (15.0) | 26.7 | 1.6 | 58.6 | 71.8 |
Dividends received during the year | - | - | - | 19.1 | 19.1 |
Share of the group in the profit (loss) for the year | (10.3) | 9.2 | 1.3 | 35.7 | 35.9 |
Note 4Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities
In EUR\u00a0million | 2023 | 2022 |
Sausalitos | 13.4 | - |
Avanti | 0.3 | - |
Indo | - | 47.3 |
Other | (0.0) | 0.1 |
Gains on disposals of subsidiaries - investing activities | 13.6 | 47.4 |
Pollen | (2.5) | (102.6) |
Sienna Real Estate | - | (15.4) |
Avanti | - | (7.4) |
Other | 7.4 | (5.3) |
Impairments and reversals of non-current assets - investing activities | 4.9 | (130.7) |
This section, relating to results from transactions with subsidiaries or associates, mainly includes, in 2023, the net capital gain on the disposal by AMB\u00a0III of Sausalitos (EUR\u00a013\u00a0million). In 2022, it mainly included the net capital gains on the sale by AMB III of Indo (EUR\u00a047\u00a0million) and the impairment loss recorded on Pollen (EUR\u00a0- 103\u00a0million).
Note 30Subsidiaries in which GBL holds significant non-controlling interests
The tables below present concise financial information about each of the subsidiaries in which GBL holds significant non-controlling interests, without taking intragroup eliminations into account.
In EUR\u00a0million | Imerys | Canyon | Sanoptis | Subsidiaries that are not individually material | 2023 |
Ownership percentage held by non-controlling interests | 45.1% | 50.0% | 16.8% | ||
Voting rights held by non-controlling interests | 31.9% | 50.0% | 38.0% | ||
Non-current assets | 4,469.7 | 749.6 | 2,294.2 | ||
Current assets | 2,682.2 | 475.6 | 182.4 | ||
Non-current liabilities | 2,497.6 | 373.3 | 1,590.5 | ||
Current liabilities | 1,497.0 | 136.9 | 113.6 | ||
Non-controlling interests | 33.3 | - | - | ||
Equity (group\u2019s share) | 3,124.0 | 714.9 | 772.6 | ||
Non-controlling interests (including those of the subsidiary) | 1,442.1 | 346.9 | 128.9 | 60.1 | 1,978.0 |
Turnover | 3,794.4 | 790.6 | 494.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 28.2 | (6.2) | (47.1) | ||
Net result of the period attributable to the non-controlling interests | 25.6 | (7.1) | (9.6) | 10.9 | 19.9 |
Net result of the period (including non-controlling interests) | 53.8 | (13.3) | (56.7) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 38.2 | (4.6) | (0.1) | ||
Other comprehensive income attributable to the non-controlling interests | 29.3 | (4.6) | (0.0) | 0.6 | 25.2 |
Total of other comprehensive income (including non-controlling interests) | 67.5 | (9.3) | (0.2) | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 66.4 | (10.8) | (47.3) | ||
Total comprehensive income attributable to the non-controlling interests | 54.9 | (11.7) | (9.6) | 11.5 | 45.1 |
Total comprehensive income (including non-controlling interests) | 121.3 | (22.6) | (56.9) | ||
Dividends paid to the non-controlling interests | 152.1 | - | - | ||
Net cash flows from operating activities | (86.5) | 11.6 | (19.3) | ||
Net cash flows from investing activities | 167.5 | (24.6) | (428.4) | ||
Net cash flows from financing activities | (259.0) | 4.7 | 411.6 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (14.9) | - | 0.7 | ||
Increase/decrease of cash and cash equivalents | (193.0) | (8.3) | (35.4) |
In EUR\u00a0million | Imerys | Webhelp | Canyon | Sanoptis | Subsidiaries that are not individually material | 2022 |
Ownership percentage held by non-controlling interests | 45.0% | 38.7% | 50.4% | 16.5% | ||
Voting rights held by non-controlling interests | 31.9% | 38.7% | 50.4% | 37.0% | ||
Non-current assets | 4,357.4 | 3,505.6 | 751.7 | 1,846.8 | ||
Current assets | 3,513.6 | 990.6 | 483.9 | 176.7 | ||
Non-current liabilities | 2,465.6 | 3,879.3 | 367.1 | 1,100.2 | ||
Current liabilities | 2,020.0 | 792.1 | 123.2 | 77.5 | ||
Non-controlling interests | 47.5 | 1.0 | - | 5.0 | ||
Equity (group\u2019s share) | 3,337.9 | (176.2) | 745.2 | 841.1 | ||
Non-controlling interests (including those of the subsidiary) | 1,550.4 | 1.0 | 362.4 | 140.5 | 45.7 | 2,100.0 |
Turnover | 4,281.6 | 2,485.3 | 644.9 | 180.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 130.4 | (388.2) | 11.0 | (20.7) | ||
Net result of the period attributable to the non-controlling interests | 124.0 | 17.2 | 11.8 | (4.1) | 3.2 | 152.2 |
Net result of the period (including non-controlling interests) | 254.4 | (371.0) | 22.8 | (24.8) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 7.9 | 26.9 | (0.2) | 2.2 | ||
Other comprehensive income attributable to the non-controlling interests | 15.9 | 17.2 | (0.2) | 0.4 | 0.2 | 33.5 |
Total of other comprehensive income (including non-controlling interests) | 23.8 | 44.1 | (0.4) | 2.6 | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 138.2 | (361.3) | 10.8 | (18.5) | ||
Total comprehensive income attributable to the non-controlling interests | 139.9 | 34.4 | 11.7 | (3.6) | 3.4 | 185.7 |
Total comprehensive income (including non-controlling interests) | 278.2 | (326.9) | 22.4 | (22.2) | ||
Dividends paid to the non-controlling interests | 65.3 | - | - | - | ||
Net cash flows from operating activities | 440.7 | 276.3 | (111.9) | 77.9 | ||
Net cash flows from investing activities | (311.3) | (301.4) | 7.2 | (187.9) | ||
Net cash flows from financing activities | 76.2 | (0.5) | 96.0 | 188.2 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (3.0) | (9.5) | - | 9.7 | ||
Increase/decrease of cash and cash equivalents | 202.6 | (35.2) | (8.7) | 88.0 |
7.1.7\tScope of consolidation, associates and joint ventures and changes in group structure
Fully consolidated subsidiaries
Interest and voting rights (in %) | Main activity | |||
NAME | Registered office | 2023 | 2022 | |
Brussels Securities SA | Brussels | 100.0 | 100.0 | Holding |
GBL O SA | Brussels | 100.0 | 100.0 | Holding |
Sagerpar SA | Brussels | 100.0 | 100.0 | Holding |
URDAC SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR II SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR III SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR IV SA | Brussels | 100.0 | 100.0 | Holding |
FINPAR V SRL | Brussels | 100.0 | 100.0 | Holding |
FINPAR VI SRL | Brussels | 100.0 | 100.0 | Holding |
FINPAR VII SRL | Brussels | 100.0 | 100.0 | Holding |
Finpar VIII SRL | Brussels | 100.0 | 100.0 | Holding |
Finpar IX SRL | Brussels | 100.0 | - | Holding |
LTI Two SA | Brussels | 100.0 | 100.0 | Holding |
Tr\u00f4ne24 SRL | Brussels | 100.0 | - | Holding |
GBL Verwaltung SA | Luxembourg | 100.0 | 100.0 | Holding |
Belgian Securities S\u00e0rl (previously Belgian Securities BV) | ||||
Luxembourg (previously Amsterdam) | 100.0 | 100.0 | Holding | |
Sapiens S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Marnix Lux S\u00e0rl (group Webhelp and subsidiaries) | Luxembourg | - | 61.3 | Operational |
G.f.G. Topco S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
G.f.G. Capital S\u00e0rl | Luxembourg | 90.5 | 90.5 | Holding |
GoforGold Holding GmbH (group Canyon and subsidiaries) | Koblenz | 55.2 | 54.8 | Operational |
Celeste Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Celeste InvestCo SA | Luxembourg | 100.0 | 100.0 | Holding |
Celeste TopCo SA | Luxembourg | 99.0 | 99.5 | Holding |
Celeste Midco 1 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste Midco 2 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste Midco 3 BV | Netherlands | 100.0 | 100.0 | Holding |
Celeste BidCo BV (group Affidea and subsidiaries) | Netherlands | 100.0 | 100.0 | Operational |
Celeste GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia InvestCo SA | Luxembourg | 99.7 | 99.7 | Holding |
Sofia MasterCo SA | Luxembourg | 83.6 | 84.1 | Holding |
Sofia TopCo S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia Holdco S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia MidCo S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Sofia BidCo S\u00e0rl (group Sanoptis and subsidiaries) (newly Sanoptis\u00a0S\u00e0rl) | Luxembourg | 100.0 | 100.0 | Operational |
One24 Capital SCA | Luxembourg | 100.0 | - | Holding |
Arthur Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Energy S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Serena S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Finance S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Eliott Capital S\u00e0rl | Luxembourg | - | 100.0 | Holding |
Miles Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Owen Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Theo Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Oliver Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Jade Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
Vancouver Capital S\u00e0rl | Luxembourg | 100.0 | 100.0 | Holding |
GBL Investments Ltd | Dublin | 100.0 | 100.0 | Holding |
GBL Development Ltd | London | 100.0 | 100.0 | Operational |
GBL Advisors Ltd | London | 100.0 | 100.0 | Operational |
RCPE Consulting SAS | Paris | 100.0 | 100.0 | Operational |
GBL Advisors DE GmbH | Munich | 100.0 | - | Operational |
Interest and voting rights (in %) | Main activity | |||
NAME | Registered office | 2023 | 2022 | |
Imerys SA (and subsidiaries) | Paris | 54.6 | 54.6 | Operational |
GBL Capital Participations S\u00e0rl | Luxembourg | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Investment Managers SA (newly Sienna Investment Managers\u00a0Luxembourg\u00a0SA) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Euclide SA | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Euclide GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Euclide SCA SICAV-RAIF | Luxembourg | 84.7 | - | GBL Capital and SIM |
Sienna Landlife SA | Luxembourg | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Landlife GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Landlife SCA SICAV-RAIF | Luxembourg | 84.4 | - | GBL Capital and SIM |
Sienna AM Luxembourg SA | Wilmington | 100.0 | 100,0 | GBL Capital and SIM |
Sienna Capital US LLC | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital Invest GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital Invest SCSp | London | 100.0 | 100.0 | GBL Capital and SIM |
GBL Capital UK (previously Sienna Capital London Ltd) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities GP S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Fund SCSp | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Carry SCSp | Luxembourg | - | 100,0 | GBL Capital and SIM |
Sienna Multistrategy Opportunities Master S\u00e0rl | Luxembourg | - | 100.0 | GBL Capital and SIM |
Sienna Capital Co-Invest Master S\u00e0rl (newly GBL Capital Coinvest Master S\u00e0rl) | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna PE Invest GP S\u00e0rl | Luxembourg | - | 100.0 | GBL Capital and SIM |
Sienna Venture Capital GP S\u00e0rl | Luxembourg | 70.0 | 100.0 | GBL Capital and SIM |
Sienna Venture Capital SAS | Paris | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Venture Capital SCA SICAV-RAIF | Luxembourg | 100.0 | - | GBL Capital and SIM |
Sienna Real Estate Solutions S\u00e0rl | Luxembourg | 100.0 | 100.0 | GBL Capital and SIM |
Sienna Real Estate Partner JV Netherlands BV (group Sienna Real Estate and subsidiaries) | Amsterdam | 89.4 | 89.4 | GBL Capital and SIM |
Sienna Gestion (group Sienna Gestion and subsidiaries) | Paris | 66.6 | 66.6 | GBL Capital and SIM |
Sienna 2A SAS (group Sienna Private Credit and subsidiaries) | Paris | 87.5 | 87.5 | GBL Capital and SIM |
Sienna Private Equity SAS | Paris | 75.0 | 75.0 | GBL Capital and SIM |
Sienna Private Equity GP S\u00e0rl | Luxembourg | 70.0 | - | GBL Capital and SIM |
Sienna Private Equity Fund I SCA SICAV-RAIF | Luxembourg | 100.0 | - | GBL Capital and SIM |
Sienna SID III GP S\u00e0rl | Luxembourg | 100.0 | - | GBL Capital and SIM |
Apheon MidCap Buyout III SA (previously Ergon Capital Partners III SA) (group AMB III and subsidiaries) | Brussels | 89.9 | 89.9 | GBL Capital and SIM |
The percentage of voting rights is identical to the percentage interest, with the exception of Imerys, for which the voting rights are 68.11% and of the Sanoptis group, for which the voting rights are 61.96%. An incentive plan has also been granted to the management of Apheon MidCap Buyout\u00a0III, covering 16.67% of the shares.
Note 30Subsidiaries in which GBL holds significant non-controlling interests
The tables below present concise financial information about each of the subsidiaries in which GBL holds significant non-controlling interests, without taking intragroup eliminations into account.
In EUR\u00a0million | Imerys | Canyon | Sanoptis | Subsidiaries that are not individually material | 2023 |
Ownership percentage held by non-controlling interests | 45.1% | 50.0% | 16.8% | ||
Voting rights held by non-controlling interests | 31.9% | 50.0% | 38.0% | ||
Non-current assets | 4,469.7 | 749.6 | 2,294.2 | ||
Current assets | 2,682.2 | 475.6 | 182.4 | ||
Non-current liabilities | 2,497.6 | 373.3 | 1,590.5 | ||
Current liabilities | 1,497.0 | 136.9 | 113.6 | ||
Non-controlling interests | 33.3 | - | - | ||
Equity (group\u2019s share) | 3,124.0 | 714.9 | 772.6 | ||
Non-controlling interests (including those of the subsidiary) | 1,442.1 | 346.9 | 128.9 | 60.1 | 1,978.0 |
Turnover | 3,794.4 | 790.6 | 494.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 28.2 | (6.2) | (47.1) | ||
Net result of the period attributable to the non-controlling interests | 25.6 | (7.1) | (9.6) | 10.9 | 19.9 |
Net result of the period (including non-controlling interests) | 53.8 | (13.3) | (56.7) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 38.2 | (4.6) | (0.1) | ||
Other comprehensive income attributable to the non-controlling interests | 29.3 | (4.6) | (0.0) | 0.6 | 25.2 |
Total of other comprehensive income (including non-controlling interests) | 67.5 | (9.3) | (0.2) | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 66.4 | (10.8) | (47.3) | ||
Total comprehensive income attributable to the non-controlling interests | 54.9 | (11.7) | (9.6) | 11.5 | 45.1 |
Total comprehensive income (including non-controlling interests) | 121.3 | (22.6) | (56.9) | ||
Dividends paid to the non-controlling interests | 152.1 | - | - | ||
Net cash flows from operating activities | (86.5) | 11.6 | (19.3) | ||
Net cash flows from investing activities | 167.5 | (24.6) | (428.4) | ||
Net cash flows from financing activities | (259.0) | 4.7 | 411.6 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (14.9) | - | 0.7 | ||
Increase/decrease of cash and cash equivalents | (193.0) | (8.3) | (35.4) |
In EUR\u00a0million | Imerys | Webhelp | Canyon | Sanoptis | Subsidiaries that are not individually material | 2022 |
Ownership percentage held by non-controlling interests | 45.0% | 38.7% | 50.4% | 16.5% | ||
Voting rights held by non-controlling interests | 31.9% | 38.7% | 50.4% | 37.0% | ||
Non-current assets | 4,357.4 | 3,505.6 | 751.7 | 1,846.8 | ||
Current assets | 3,513.6 | 990.6 | 483.9 | 176.7 | ||
Non-current liabilities | 2,465.6 | 3,879.3 | 367.1 | 1,100.2 | ||
Current liabilities | 2,020.0 | 792.1 | 123.2 | 77.5 | ||
Non-controlling interests | 47.5 | 1.0 | - | 5.0 | ||
Equity (group\u2019s share) | 3,337.9 | (176.2) | 745.2 | 841.1 | ||
Non-controlling interests (including those of the subsidiary) | 1,550.4 | 1.0 | 362.4 | 140.5 | 45.7 | 2,100.0 |
Turnover | 4,281.6 | 2,485.3 | 644.9 | 180.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 130.4 | (388.2) | 11.0 | (20.7) | ||
Net result of the period attributable to the non-controlling interests | 124.0 | 17.2 | 11.8 | (4.1) | 3.2 | 152.2 |
Net result of the period (including non-controlling interests) | 254.4 | (371.0) | 22.8 | (24.8) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 7.9 | 26.9 | (0.2) | 2.2 | ||
Other comprehensive income attributable to the non-controlling interests | 15.9 | 17.2 | (0.2) | 0.4 | 0.2 | 33.5 |
Total of other comprehensive income (including non-controlling interests) | 23.8 | 44.1 | (0.4) | 2.6 | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 138.2 | (361.3) | 10.8 | (18.5) | ||
Total comprehensive income attributable to the non-controlling interests | 139.9 | 34.4 | 11.7 | (3.6) | 3.4 | 185.7 |
Total comprehensive income (including non-controlling interests) | 278.2 | (326.9) | 22.4 | (22.2) | ||
Dividends paid to the non-controlling interests | 65.3 | - | - | - | ||
Net cash flows from operating activities | 440.7 | 276.3 | (111.9) | 77.9 | ||
Net cash flows from investing activities | (311.3) | (301.4) | 7.2 | (187.9) | ||
Net cash flows from financing activities | 76.2 | (0.5) | 96.0 | 188.2 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (3.0) | (9.5) | - | 9.7 | ||
Increase/decrease of cash and cash equivalents | 202.6 | (35.2) | (8.7) | 88.0 |
Associates and joint ventures
RATE (IN %) | ||||||||
Avanti Acquisition SCSP | StreetTeam Software Ltd | Piolin II S\u00e0rl /Parques Reunidos | Backed 1 LP | Backed Encore 1 LP | Backed 2 LP | Apheon MidCap Buyout SA (previously Ergon Capital Partners SA) | ||
Office | Luxembourg | London | Luxembourg | Jersey | Jersey | Jersey | Brussels | |
Activity | GBL Capital and SIM | GBL Capital and SIM | Leisure parks | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | |
2023 | DETENTION RATE | - | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
2022 | Detention rate | 50.0 | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
RATE (IN %) | Apheon MidCap Buyout II SA (previously Ergon Capital Partners II SA) | Apheon MidCap Buyout IV SCSP (previously Ergon Capital Partners IV SCSp) | I.P.E. SRL, subsidiary of AMB III (previously ECP III) | M\u00e9rieux Participations 2 SAS | Landlife Holding S\u00e0rl | |||
Office | Brussels | Luxembourg | Bologna | Lyon | Luxembourg | |||
Activity | GBL Capital and SIM | GBL Capital and SIM | Home furnishing | GBL Capital and SIM | GBL Capital and SIM | |||
2023 | DETENTION RATE | 50.0 | 34.4 | 65.6 | 34.3 | 30.7 | ||
2022 | Detention rate | 50.0 | 34.4 | 65.6 | 34.3 | 35.1 |
The percentage of voting rights is identical to the percentage interest.
The group has analyzed the accounting treatment to be applied to the recognition of its investment in I.P.E. SRL (Visionnaire group) and has concluded that it only has a significant influence despite its 65.55% interest, based on the existence of a shareholders\u2019 agreement. The group reached the same conclusion regarding the consolidation method to be used to integrate the investments in Backed Encore 1 LP.
As of December\u00a031, 2023, GBL holds a stake in the funds Eight Partners Worldwide SAS (22.01%), Kartesia Credit Opportunities III SCA (31.15%), Sagard II B (74.65%), Sagard 3 FPCI (26.93%), Sagard Sant\u00e9 Animale FPCI (32.41%), Sagard Testing FPCI (63.72%), Sagard Business Intelligence FPCI (92.59%), Sagard NewGen Pharma FPCI (32.31%), Marcho Partners Feeder Fund ICAV (39.10%), C2 Capital Global Export-to-China Fund LP (26.96%), KKR Sigma Co-Invest II LP (32.30%), Sienna Levier ENR (100.00%), Sienna Rendement Avenir IV (25.11%), HCM IV LP/HCM V LP/HCM S11A LP/HCM S3C LP (20.27%, 28.55%, 56.26% and 49.26% respectively) and has determined that it has no significant influence over those investments. These funds are therefore presented as other equity investments and are measured at fair value at each reporting date.
In the rest of the notes, Apheon MidCap Buyout, Apheon MidCap Buyout II and Apheon MidCap Buyout IV have been referred to together under the\u00a0name \u201cAMB I, II & IV\u201d, while the name \u201cAMB\u201d refers to these companies referred to above and Apheon MidCap Buyout III (\u201cAMB III\u201d). Similarly, Backed\u00a01 LP, Backed Encore 1 LP and Backed 2 LP entities will be referred to as \u201cBacked\u201d, the entity Piolin II S\u00e0rl as \u201cPiolin II\u201d, the entity StreetTeam\u00a0Software Ltd. as \u201cStreetTeam\u201d and the entity Avanti Acquisition SCSP as \u201cAvanti Acquisition Corp.\u201d
Note 2Associates and joint ventures
2.1\tShare of profit (loss)
Dividends received from equity-accounted entities have been eliminated and replaced by GBL\u2019s share of their profit or loss.
Dividends received
In EUR\u00a0million | 2023 | 2022 |
M\u00e9rieux Participations 2 | 5.0 | 13.3 |
Other associates and joint ventures | 54.7 | 5.8 |
Total | 59.6 | 19.1 |
Profit (loss) of associates and joint ventures (GBL\u2019s share)
In EUR\u00a0million | 2023 | 2022 |
Share of profit or loss of associates and joint ventures \u2013 investing activities | 44.0 | 3.2 |
AMB I, II & IV\u00a0 | 72.9 | 9.2 |
Backed | 10.6 | (10.3) |
Avanti Acquisition Corp. | - | 1.8 |
StreetTeam | - | - |
Landlife Holding | (2.2) | (0.0) |
M\u00e9rieux Participations 2 | (15.5) | 1.2 |
Parques Reunidos/Piolin II | (21.8) | 1.3 |
Associates and joint ventures related to consolidated operating activities (shown under \"Other operating income (expenses)\")\u00a0 | 94.6 | 32.6 |
The Quartz Corporation (Imerys) | 80.1 | 18.4 |
I.P.E. | 4.7 | 2.5 |
Other | 9.8 | 11.7 |
Total | 138.5 | 35.9 |
AMB I, II & IV
The contribution of AMB I, II & IV to the net result of GBL amounts to EUR\u00a073\u00a0million in 2023 (EUR\u00a09\u00a0million in 2022). This result mainly includes gains on the revaluation to fair value of AMB IV\u2019s share portfolio.
Backed
Backed contributed to GBL\u2019s result for EUR\u00a011\u00a0million (EUR\u00a0- 10\u00a0million in 2022). This result comes mainly from fair value revaluation gains on its investment portfolio.
M\u00e9rieux Participations 2
The contribution of M\u00e9rieux Participations 2 (EUR\u00a0- 15\u00a0million versus EUR\u00a01\u00a0million in 2022) includes mainly fair value revaluation on its investment portfolio.
Parques Reunidos/Piolin II
The net result (GBL\u2019s share) of Parques Reunidos/Piolin II amounts to EUR\u00a0- 22\u00a0million in 2023 (EUR\u00a01\u00a0million in 2022).
2.2Value of associates and joint ventures
Investing activities | Operating activities | Total | ||||||||
In EUR\u00a0million | Parques Reunidos/Piolin II | Backed | AMB I, II & IV | Avanti | StreetTeam | Landlife Holding | M\u00e9rieux Participations 2 | I.P.E. | Other | |
As of December 31, 2021 | 89.7 | 141.9 | 191.0 | 4.7 | 70.5 | - | 62.4 | 44.2 | 101.1 | 705.4 |
Investment/(Divestment) | - | 7.9 | 18.9 | 0.5 | - | 0.0 | (10.2) | (5.2) | (3.6) | 8.2 |
Profit (loss) for the year | 1.3 | (10.3) | 9.2 | 1.8 | - | - | 1.2 | 2.5 | 30.1 | 35.9 |
Distribution | - | - | - | - | - | - | (13.3) | - | (5.8) | (19.1) |
Impairment | - | - | - | (7.4) | (76.8) | - | - | (5.3) | - | (89.5) |
Other | (0.8) | (0.0) | - | 0.5 | 6.4 | - | 0.0 | (0.0) | (29.4) | (23.4) |
As of December 31, 2022 | 90.2 | 139.4 | 219.1 | - | - | 0.0 | 40.0 | 36.2 | 92.5 | 617.4 |
Investment/(Divestment) | - | 4.5 | 4.8 | (7.4) | - | 55.3 | (2.2) | - | 9.2 | 64.1 |
Profit (loss) for the year | (21.8) | 10.6 | 72.9 | - | - | (2.2) | (15.5) | 4.7 | 89.8 | 138.5 |
Distribution | - | - | - | - | - | - | (5.0) | - | (54.7) | (59.6) |
Impairment | - | - | - | 7.4 | - | - | - | 7.4 | - | 14.8 |
Other | (0.4) | 0.0 | - | - | - | (0.3) | 0.0 | 0.0 | (2.6) | (3.3) |
As of December 31, 2023 | 68.0 | 154.5 | 296.8 | - | - | 52.8 | 17.4 | 48.3 | 134.2 | 771.8 |
Of which: Holding | 68.0 | - | - | - | - | - | - | - | - | 68.0 |
Imerys | - | - | - | - | - | - | - | - | 122.7 | 122.7 |
Canyon | - | - | - | - | - | - | - | - | 0.0 | 0.0 |
Affidea | - | - | - | - | - | - | - | - | - | - |
Sanoptis | - | - | - | - | - | - | - | - | 10.1 | 10.1 |
GBL Capital and SIM | - | 154.5 | 296.8 | - | - | 52.8 | 17.4 | 48.3 | 1.3 | 571.0 |
Associates and joint ventures are not listed.
2.3Other information on associates and joint ventures
Aggregated financial information of major associates and joint ventures
The tables below present a summary of the financial information regarding Backed, AMB I, II & IV and Parques Reunidos/Piolin II, significant associates in 2023 and the other smaller associates and joint ventures. This summary represents the amounts included in the companies\u2019 financial statements prepared in accordance with IFRS.
In EUR\u00a0million | Backed | AMB I, II & IV | Parques Reunidos/Piolin II | Other associates and joint ventures | Total |
As of December 31, 2023 | |||||
Non-current assets | 361.5 | 919.4 | 2,354.9 | 764.4 | 4,400.2 |
Current assets | 2.4 | 18.8 | 126.6 | 411.0 | 558.8 |
Non-current liabilities | 38.4 | 76.4 | 1,789.6 | 145.0 | 2,049.3 |
Current liabilities | 1.2 | 0.2 | 396.4 | 493.0 | 890.7 |
Non-controlling interests | - | - | 1.4 | 120.9 | 122.3 |
Shareholder's equity (group's share) | 324.4 | 861.7 | 294.2 | 416.6 | 1,896.8 |
Ownership interest in capital | n.r. | n.r. | 23.1% | n.r. | n.r. |
Share in equity | 154.5 | 296.8 | 68.0 | 247.9 | 767.2 |
Goodwill | - | - | - | 4.6 | 4.6 |
Carrying amount as of December 31, 2023 | 154.5 | 296.8 | 68.0 | 252.5 | 771.8 |
Turnover | - | - | 830.1 | 548.9 | 1,379.0 |
Profit (loss) from continuing operations | 22.3 | 211.8 | (94.6) | 127.0 | 266.7 |
Net result of the year (including non-controlling interests) | 22.3 | 211.8 | (94.8) | 127.0 | 266.4 |
Net result of the year (group\u2019s share) | 22.3 | 211.8 | (94.6) | 41.2 | 180.9 |
Other comprehensive income (loss) | - | - | (0.7) | - | (0.7) |
Total comprehensive income (loss) for the year | 22.3 | 211.8 | (95.2) | 41.2 | 180.2 |
Dividends received during the year | - | - | - | 59.6 | 59.6 |
Share of the group in the profit (loss) for the year | 10.6 | 72.9 | (21.8) | 76.9 | 138.5 |
In EUR\u00a0million | |||||
Backed | AMB I, II & IV | Parques Reunidos/Piolin II | Other associates and joint ventures | Total | |
As of December 31, 2022 | |||||
Non-current assets | 320.1 | 678.0 | 2,369.9 | 277.4 | 3,645.5 |
Current assets | 4.8 | 3.3 | 150.7 | 170.4 | 329.2 |
Non-current liabilities | 31.6 | 40.8 | 1,830.7 | 67.9 | 1,970.9 |
Current liabilities | 1.4 | 5.1 | 298.1 | 74.8 | 379.4 |
Non-controlling interests | - | - | 1.3 | 0.0 | 1.3 |
Shareholder's equity (group's share) | 291.9 | 635.5 | 390.6 | 305.0 | 1,623.0 |
Ownership interest in capital | n.r. | n.r. | 23.1% | n.r. | n.r. |
Share in equity | 139.4 | 219.1 | 90.2 | 163.9 | 612.6 |
Goodwill | - | - | - | 4.8 | 4.8 |
Carrying amount as of December 31, 2022 | 139.4 | 219.1 | 90.2 | 168.7 | 617.4 |
Turnover | - | - | 820.5 | 334.9 | 1,155.4 |
Profit (loss) from continuing operations | (15.0) | 26.7 | 5.9 | 58.5 | 76.1 |
Net result of the year (including non-controlling interests) | (15.0) | 26.7 | 5.9 | 58.5 | 76.1 |
Net result of the year (group\u2019s share) | (15.0) | 26.7 | 5.7 | 58.5 | 75.9 |
Other comprehensive income (loss) | - | - | (4.2) | 0.0 | (4.1) |
Total comprehensive income (loss) for the year | (15.0) | 26.7 | 1.6 | 58.6 | 71.8 |
Dividends received during the year | - | - | - | 19.1 | 19.1 |
Share of the group in the profit (loss) for the year | (10.3) | 9.2 | 1.3 | 35.7 | 35.9 |
Associates and joint ventures
RATE (IN %) | ||||||||
Avanti Acquisition SCSP | StreetTeam Software Ltd | Piolin II S\u00e0rl /Parques Reunidos | Backed 1 LP | Backed Encore 1 LP | Backed 2 LP | Apheon MidCap Buyout SA (previously Ergon Capital Partners SA) | ||
Office | Luxembourg | London | Luxembourg | Jersey | Jersey | Jersey | Brussels | |
Activity | GBL Capital and SIM | GBL Capital and SIM | Leisure parks | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | |
2023 | DETENTION RATE | - | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
2022 | Detention rate | 50.0 | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
RATE (IN %) | Apheon MidCap Buyout II SA (previously Ergon Capital Partners II SA) | Apheon MidCap Buyout IV SCSP (previously Ergon Capital Partners IV SCSp) | I.P.E. SRL, subsidiary of AMB III (previously ECP III) | M\u00e9rieux Participations 2 SAS | Landlife Holding S\u00e0rl | |||
Office | Brussels | Luxembourg | Bologna | Lyon | Luxembourg | |||
Activity | GBL Capital and SIM | GBL Capital and SIM | Home furnishing | GBL Capital and SIM | GBL Capital and SIM | |||
2023 | DETENTION RATE | 50.0 | 34.4 | 65.6 | 34.3 | 30.7 | ||
2022 | Detention rate | 50.0 | 34.4 | 65.6 | 34.3 | 35.1 |
The percentage of voting rights is identical to the percentage interest.
The group has analyzed the accounting treatment to be applied to the recognition of its investment in I.P.E. SRL (Visionnaire group) and has concluded that it only has a significant influence despite its 65.55% interest, based on the existence of a shareholders\u2019 agreement. The group reached the same conclusion regarding the consolidation method to be used to integrate the investments in Backed Encore 1 LP.
As of December\u00a031, 2023, GBL holds a stake in the funds Eight Partners Worldwide SAS (22.01%), Kartesia Credit Opportunities III SCA (31.15%), Sagard II B (74.65%), Sagard 3 FPCI (26.93%), Sagard Sant\u00e9 Animale FPCI (32.41%), Sagard Testing FPCI (63.72%), Sagard Business Intelligence FPCI (92.59%), Sagard NewGen Pharma FPCI (32.31%), Marcho Partners Feeder Fund ICAV (39.10%), C2 Capital Global Export-to-China Fund LP (26.96%), KKR Sigma Co-Invest II LP (32.30%), Sienna Levier ENR (100.00%), Sienna Rendement Avenir IV (25.11%), HCM IV LP/HCM V LP/HCM S11A LP/HCM S3C LP (20.27%, 28.55%, 56.26% and 49.26% respectively) and has determined that it has no significant influence over those investments. These funds are therefore presented as other equity investments and are measured at fair value at each reporting date.
In the rest of the notes, Apheon MidCap Buyout, Apheon MidCap Buyout II and Apheon MidCap Buyout IV have been referred to together under the\u00a0name \u201cAMB I, II & IV\u201d, while the name \u201cAMB\u201d refers to these companies referred to above and Apheon MidCap Buyout III (\u201cAMB III\u201d). Similarly, Backed\u00a01 LP, Backed Encore 1 LP and Backed 2 LP entities will be referred to as \u201cBacked\u201d, the entity Piolin II S\u00e0rl as \u201cPiolin II\u201d, the entity StreetTeam\u00a0Software Ltd. as \u201cStreetTeam\u201d and the entity Avanti Acquisition SCSP as \u201cAvanti Acquisition Corp.\u201d
Note 2Associates and joint ventures
2.1\tShare of profit (loss)
Dividends received from equity-accounted entities have been eliminated and replaced by GBL\u2019s share of their profit or loss.
Dividends received
In EUR\u00a0million | 2023 | 2022 |
M\u00e9rieux Participations 2 | 5.0 | 13.3 |
Other associates and joint ventures | 54.7 | 5.8 |
Total | 59.6 | 19.1 |
Profit (loss) of associates and joint ventures (GBL\u2019s share)
In EUR\u00a0million | 2023 | 2022 |
Share of profit or loss of associates and joint ventures \u2013 investing activities | 44.0 | 3.2 |
AMB I, II & IV\u00a0 | 72.9 | 9.2 |
Backed | 10.6 | (10.3) |
Avanti Acquisition Corp. | - | 1.8 |
StreetTeam | - | - |
Landlife Holding | (2.2) | (0.0) |
M\u00e9rieux Participations 2 | (15.5) | 1.2 |
Parques Reunidos/Piolin II | (21.8) | 1.3 |
Associates and joint ventures related to consolidated operating activities (shown under \"Other operating income (expenses)\")\u00a0 | 94.6 | 32.6 |
The Quartz Corporation (Imerys) | 80.1 | 18.4 |
I.P.E. | 4.7 | 2.5 |
Other | 9.8 | 11.7 |
Total | 138.5 | 35.9 |
AMB I, II & IV
The contribution of AMB I, II & IV to the net result of GBL amounts to EUR\u00a073\u00a0million in 2023 (EUR\u00a09\u00a0million in 2022). This result mainly includes gains on the revaluation to fair value of AMB IV\u2019s share portfolio.
Backed
Backed contributed to GBL\u2019s result for EUR\u00a011\u00a0million (EUR\u00a0- 10\u00a0million in 2022). This result comes mainly from fair value revaluation gains on its investment portfolio.
M\u00e9rieux Participations 2
The contribution of M\u00e9rieux Participations 2 (EUR\u00a0- 15\u00a0million versus EUR\u00a01\u00a0million in 2022) includes mainly fair value revaluation on its investment portfolio.
Parques Reunidos/Piolin II
The net result (GBL\u2019s share) of Parques Reunidos/Piolin II amounts to EUR\u00a0- 22\u00a0million in 2023 (EUR\u00a01\u00a0million in 2022).
2.2Value of associates and joint ventures
Investing activities | Operating activities | Total | ||||||||
In EUR\u00a0million | Parques Reunidos/Piolin II | Backed | AMB I, II & IV | Avanti | StreetTeam | Landlife Holding | M\u00e9rieux Participations 2 | I.P.E. | Other | |
As of December 31, 2021 | 89.7 | 141.9 | 191.0 | 4.7 | 70.5 | - | 62.4 | 44.2 | 101.1 | 705.4 |
Investment/(Divestment) | - | 7.9 | 18.9 | 0.5 | - | 0.0 | (10.2) | (5.2) | (3.6) | 8.2 |
Profit (loss) for the year | 1.3 | (10.3) | 9.2 | 1.8 | - | - | 1.2 | 2.5 | 30.1 | 35.9 |
Distribution | - | - | - | - | - | - | (13.3) | - | (5.8) | (19.1) |
Impairment | - | - | - | (7.4) | (76.8) | - | - | (5.3) | - | (89.5) |
Other | (0.8) | (0.0) | - | 0.5 | 6.4 | - | 0.0 | (0.0) | (29.4) | (23.4) |
As of December 31, 2022 | 90.2 | 139.4 | 219.1 | - | - | 0.0 | 40.0 | 36.2 | 92.5 | 617.4 |
Investment/(Divestment) | - | 4.5 | 4.8 | (7.4) | - | 55.3 | (2.2) | - | 9.2 | 64.1 |
Profit (loss) for the year | (21.8) | 10.6 | 72.9 | - | - | (2.2) | (15.5) | 4.7 | 89.8 | 138.5 |
Distribution | - | - | - | - | - | - | (5.0) | - | (54.7) | (59.6) |
Impairment | - | - | - | 7.4 | - | - | - | 7.4 | - | 14.8 |
Other | (0.4) | 0.0 | - | - | - | (0.3) | 0.0 | 0.0 | (2.6) | (3.3) |
As of December 31, 2023 | 68.0 | 154.5 | 296.8 | - | - | 52.8 | 17.4 | 48.3 | 134.2 | 771.8 |
Of which: Holding | 68.0 | - | - | - | - | - | - | - | - | 68.0 |
Imerys | - | - | - | - | - | - | - | - | 122.7 | 122.7 |
Canyon | - | - | - | - | - | - | - | - | 0.0 | 0.0 |
Affidea | - | - | - | - | - | - | - | - | - | - |
Sanoptis | - | - | - | - | - | - | - | - | 10.1 | 10.1 |
GBL Capital and SIM | - | 154.5 | 296.8 | - | - | 52.8 | 17.4 | 48.3 | 1.3 | 571.0 |
Associates and joint ventures are not listed.
2.3Other information on associates and joint ventures
Aggregated financial information of major associates and joint ventures
The tables below present a summary of the financial information regarding Backed, AMB I, II & IV and Parques Reunidos/Piolin II, significant associates in 2023 and the other smaller associates and joint ventures. This summary represents the amounts included in the companies\u2019 financial statements prepared in accordance with IFRS.
In EUR\u00a0million | Backed | AMB I, II & IV | Parques Reunidos/Piolin II | Other associates and joint ventures | Total |
As of December 31, 2023 | |||||
Non-current assets | 361.5 | 919.4 | 2,354.9 | 764.4 | 4,400.2 |
Current assets | 2.4 | 18.8 | 126.6 | 411.0 | 558.8 |
Non-current liabilities | 38.4 | 76.4 | 1,789.6 | 145.0 | 2,049.3 |
Current liabilities | 1.2 | 0.2 | 396.4 | 493.0 | 890.7 |
Non-controlling interests | - | - | 1.4 | 120.9 | 122.3 |
Shareholder's equity (group's share) | 324.4 | 861.7 | 294.2 | 416.6 | 1,896.8 |
Ownership interest in capital | n.r. | n.r. | 23.1% | n.r. | n.r. |
Share in equity | 154.5 | 296.8 | 68.0 | 247.9 | 767.2 |
Goodwill | - | - | - | 4.6 | 4.6 |
Carrying amount as of December 31, 2023 | 154.5 | 296.8 | 68.0 | 252.5 | 771.8 |
Turnover | - | - | 830.1 | 548.9 | 1,379.0 |
Profit (loss) from continuing operations | 22.3 | 211.8 | (94.6) | 127.0 | 266.7 |
Net result of the year (including non-controlling interests) | 22.3 | 211.8 | (94.8) | 127.0 | 266.4 |
Net result of the year (group\u2019s share) | 22.3 | 211.8 | (94.6) | 41.2 | 180.9 |
Other comprehensive income (loss) | - | - | (0.7) | - | (0.7) |
Total comprehensive income (loss) for the year | 22.3 | 211.8 | (95.2) | 41.2 | 180.2 |
Dividends received during the year | - | - | - | 59.6 | 59.6 |
Share of the group in the profit (loss) for the year | 10.6 | 72.9 | (21.8) | 76.9 | 138.5 |
In EUR\u00a0million | |||||
Backed | AMB I, II & IV | Parques Reunidos/Piolin II | Other associates and joint ventures | Total | |
As of December 31, 2022 | |||||
Non-current assets | 320.1 | 678.0 | 2,369.9 | 277.4 | 3,645.5 |
Current assets | 4.8 | 3.3 | 150.7 | 170.4 | 329.2 |
Non-current liabilities | 31.6 | 40.8 | 1,830.7 | 67.9 | 1,970.9 |
Current liabilities | 1.4 | 5.1 | 298.1 | 74.8 | 379.4 |
Non-controlling interests | - | - | 1.3 | 0.0 | 1.3 |
Shareholder's equity (group's share) | 291.9 | 635.5 | 390.6 | 305.0 | 1,623.0 |
Ownership interest in capital | n.r. | n.r. | 23.1% | n.r. | n.r. |
Share in equity | 139.4 | 219.1 | 90.2 | 163.9 | 612.6 |
Goodwill | - | - | - | 4.8 | 4.8 |
Carrying amount as of December 31, 2022 | 139.4 | 219.1 | 90.2 | 168.7 | 617.4 |
Turnover | - | - | 820.5 | 334.9 | 1,155.4 |
Profit (loss) from continuing operations | (15.0) | 26.7 | 5.9 | 58.5 | 76.1 |
Net result of the year (including non-controlling interests) | (15.0) | 26.7 | 5.9 | 58.5 | 76.1 |
Net result of the year (group\u2019s share) | (15.0) | 26.7 | 5.7 | 58.5 | 75.9 |
Other comprehensive income (loss) | - | - | (4.2) | 0.0 | (4.1) |
Total comprehensive income (loss) for the year | (15.0) | 26.7 | 1.6 | 58.6 | 71.8 |
Dividends received during the year | - | - | - | 19.1 | 19.1 |
Share of the group in the profit (loss) for the year | (10.3) | 9.2 | 1.3 | 35.7 | 35.9 |
Associates and joint ventures
RATE (IN %) | ||||||||
Avanti Acquisition SCSP | StreetTeam Software Ltd | Piolin II S\u00e0rl /Parques Reunidos | Backed 1 LP | Backed Encore 1 LP | Backed 2 LP | Apheon MidCap Buyout SA (previously Ergon Capital Partners SA) | ||
Office | Luxembourg | London | Luxembourg | Jersey | Jersey | Jersey | Brussels | |
Activity | GBL Capital and SIM | GBL Capital and SIM | Leisure parks | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | GBL Capital and SIM | |
2023 | DETENTION RATE | - | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
2022 | Detention rate | 50.0 | 32.7 | 23.1 | 48.6 | 58.3 | 40.0 | 50.0 |
RATE (IN %) | Apheon MidCap Buyout II SA (previously Ergon Capital Partners II SA) | Apheon MidCap Buyout IV SCSP (previously Ergon Capital Partners IV SCSp) | I.P.E. SRL, subsidiary of AMB III (previously ECP III) | M\u00e9rieux Participations 2 SAS | Landlife Holding S\u00e0rl | |||
Office | Brussels | Luxembourg | Bologna | Lyon | Luxembourg | |||
Activity | GBL Capital and SIM | GBL Capital and SIM | Home furnishing | GBL Capital and SIM | GBL Capital and SIM | |||
2023 | DETENTION RATE | 50.0 | 34.4 | 65.6 | 34.3 | 30.7 | ||
2022 | Detention rate | 50.0 | 34.4 | 65.6 | 34.3 | 35.1 |
The percentage of voting rights is identical to the percentage interest.
The group has analyzed the accounting treatment to be applied to the recognition of its investment in I.P.E. SRL (Visionnaire group) and has concluded that it only has a significant influence despite its 65.55% interest, based on the existence of a shareholders\u2019 agreement. The group reached the same conclusion regarding the consolidation method to be used to integrate the investments in Backed Encore 1 LP.
As of December\u00a031, 2023, GBL holds a stake in the funds Eight Partners Worldwide SAS (22.01%), Kartesia Credit Opportunities III SCA (31.15%), Sagard II B (74.65%), Sagard 3 FPCI (26.93%), Sagard Sant\u00e9 Animale FPCI (32.41%), Sagard Testing FPCI (63.72%), Sagard Business Intelligence FPCI (92.59%), Sagard NewGen Pharma FPCI (32.31%), Marcho Partners Feeder Fund ICAV (39.10%), C2 Capital Global Export-to-China Fund LP (26.96%), KKR Sigma Co-Invest II LP (32.30%), Sienna Levier ENR (100.00%), Sienna Rendement Avenir IV (25.11%), HCM IV LP/HCM V LP/HCM S11A LP/HCM S3C LP (20.27%, 28.55%, 56.26% and 49.26% respectively) and has determined that it has no significant influence over those investments. These funds are therefore presented as other equity investments and are measured at fair value at each reporting date.
In the rest of the notes, Apheon MidCap Buyout, Apheon MidCap Buyout II and Apheon MidCap Buyout IV have been referred to together under the\u00a0name \u201cAMB I, II & IV\u201d, while the name \u201cAMB\u201d refers to these companies referred to above and Apheon MidCap Buyout III (\u201cAMB III\u201d). Similarly, Backed\u00a01 LP, Backed Encore 1 LP and Backed 2 LP entities will be referred to as \u201cBacked\u201d, the entity Piolin II S\u00e0rl as \u201cPiolin II\u201d, the entity StreetTeam\u00a0Software Ltd. as \u201cStreetTeam\u201d and the entity Avanti Acquisition SCSP as \u201cAvanti Acquisition Corp.\u201d
Note 2Associates and joint ventures
2.1\tShare of profit (loss)
Dividends received from equity-accounted entities have been eliminated and replaced by GBL\u2019s share of their profit or loss.
Dividends received
In EUR\u00a0million | 2023 | 2022 |
M\u00e9rieux Participations 2 | 5.0 | 13.3 |
Other associates and joint ventures | 54.7 | 5.8 |
Total | 59.6 | 19.1 |
Profit (loss) of associates and joint ventures (GBL\u2019s share)
In EUR\u00a0million | 2023 | 2022 |
Share of profit or loss of associates and joint ventures \u2013 investing activities | 44.0 | 3.2 |
AMB I, II & IV\u00a0 | 72.9 | 9.2 |
Backed | 10.6 | (10.3) |
Avanti Acquisition Corp. | - | 1.8 |
StreetTeam | - | - |
Landlife Holding | (2.2) | (0.0) |
M\u00e9rieux Participations 2 | (15.5) | 1.2 |
Parques Reunidos/Piolin II | (21.8) | 1.3 |
Associates and joint ventures related to consolidated operating activities (shown under \"Other operating income (expenses)\")\u00a0 | 94.6 | 32.6 |
The Quartz Corporation (Imerys) | 80.1 | 18.4 |
I.P.E. | 4.7 | 2.5 |
Other | 9.8 | 11.7 |
Total | 138.5 | 35.9 |
AMB I, II & IV
The contribution of AMB I, II & IV to the net result of GBL amounts to EUR\u00a073\u00a0million in 2023 (EUR\u00a09\u00a0million in 2022). This result mainly includes gains on the revaluation to fair value of AMB IV\u2019s share portfolio.
Backed
Backed contributed to GBL\u2019s result for EUR\u00a011\u00a0million (EUR\u00a0- 10\u00a0million in 2022). This result comes mainly from fair value revaluation gains on its investment portfolio.
(1)\tIntangible assets, property, plant and equipment and goodwill
M\u00e9rieux Participations 2
The contribution of M\u00e9rieux Participations 2 (EUR\u00a0- 15\u00a0million versus EUR\u00a01\u00a0million in 2022) includes mainly fair value revaluation on its investment portfolio.
Parques Reunidos/Piolin II
The net result (GBL\u2019s share) of Parques Reunidos/Piolin II amounts to EUR\u00a0- 22\u00a0million in 2023 (EUR\u00a01\u00a0million in 2022).
2.2Value of associates and joint ventures
Investing activities | Operating activities | Total | ||||||||
In EUR\u00a0million | Parques Reunidos/Piolin II | Backed | AMB I, II & IV | Avanti | StreetTeam | Landlife Holding | M\u00e9rieux Participations 2 | I.P.E. | Other | |
As of December 31, 2021 | 89.7 | 141.9 | 191.0 | 4.7 | 70.5 | - | 62.4 | 44.2 | 101.1 | 705.4 |
Investment/(Divestment) | - | 7.9 | 18.9 | 0.5 | - | 0.0 | (10.2) | (5.2) | (3.6) | 8.2 |
Profit (loss) for the year | 1.3 | (10.3) | 9.2 | 1.8 | - | - | 1.2 | 2.5 | 30.1 | 35.9 |
Distribution | - | - | - | - | - | - | (13.3) | - | (5.8) | (19.1) |
Impairment | - | - | - | (7.4) | (76.8) | - | - | (5.3) | - | (89.5) |
Other | (0.8) | (0.0) | - | 0.5 | 6.4 | - | 0.0 | (0.0) | (29.4) | (23.4) |
As of December 31, 2022 | 90.2 | 139.4 | 219.1 | - | - | 0.0 | 40.0 | 36.2 | 92.5 | 617.4 |
Investment/(Divestment) | - | 4.5 | 4.8 | (7.4) | - | 55.3 | (2.2) | - | 9.2 | 64.1 |
Profit (loss) for the year | (21.8) | 10.6 | 72.9 | - | - | (2.2) | (15.5) | 4.7 | 89.8 | 138.5 |
Distribution | - | - | - | - | - | - | (5.0) | - | (54.7) | (59.6) |
Impairment | - | - | - | 7.4 | - | - | - | 7.4 | - | 14.8 |
Other | (0.4) | 0.0 | - | - | - | (0.3) | 0.0 | 0.0 | (2.6) | (3.3) |
As of December 31, 2023 | 68.0 | 154.5 | 296.8 | - | - | 52.8 | 17.4 | 48.3 | 134.2 | 771.8 |
Of which: Holding | 68.0 | - | - | - | - | - | - | - | - | 68.0 |
Imerys | - | - | - | - | - | - | - | - | 122.7 | 122.7 |
Canyon | - | - | - | - | - | - | - | - | 0.0 | 0.0 |
Affidea | - | - | - | - | - | - | - | - | - | - |
Sanoptis | - | - | - | - | - | - | - | - | 10.1 | 10.1 |
GBL Capital and SIM | - | 154.5 | 296.8 | - | - | 52.8 | 17.4 | 48.3 | 1.3 | 571.0 |
Associates and joint ventures are not listed.
2.3Other information on associates and joint ventures
Aggregated financial information of major associates and joint ventures
The tables below present a summary of the financial information regarding Backed, AMB I, II & IV and Parques Reunidos/Piolin II, significant associates in 2023 and the other smaller associates and joint ventures. This summary represents the amounts included in the companies\u2019 financial statements prepared in accordance with IFRS.
In EUR\u00a0million | Backed | AMB I, II & IV | Parques Reunidos/Piolin II | Other associates and joint ventures | Total |
As of December 31, 2023 | |||||
Non-current assets | 361.5 | 919.4 | 2,354.9 | 764.4 | 4,400.2 |
Current assets | 2.4 | 18.8 | 126.6 | 411.0 | 558.8 |
Non-current liabilities | 38.4 | 76.4 | 1,789.6 | 145.0 | 2,049.3 |
Current liabilities | 1.2 | 0.2 | 396.4 | 493.0 | 890.7 |
Non-controlling interests | - | - | 1.4 | 120.9 | 122.3 |
Shareholder's equity (group's share) | 324.4 | 861.7 | 294.2 | 416.6 | 1,896.8 |
Ownership interest in capital | n.r. | n.r. | 23.1% | n.r. | n.r. |
Share in equity | 154.5 | 296.8 | 68.0 | 247.9 | 767.2 |
Goodwill | - | - | - | 4.6 | 4.6 |
Carrying amount as of December 31, 2023 | 154.5 | 296.8 | 68.0 | 252.5 | 771.8 |
Turnover | - | - | 830.1 | 548.9 | 1,379.0 |
Profit (loss) from continuing operations | 22.3 | 211.8 | (94.6) | 127.0 | 266.7 |
Net result of the year (including non-controlling interests) | 22.3 | 211.8 | (94.8) | 127.0 | 266.4 |
Net result of the year (group\u2019s share) | 22.3 | 211.8 | (94.6) | 41.2 | 180.9 |
Other comprehensive income (loss) | - | - | (0.7) | - | (0.7) |
Total comprehensive income (loss) for the year | 22.3 | 211.8 | (95.2) | 41.2 | 180.2 |
Dividends received during the year | - | - | - | 59.6 | 59.6 |
Share of the group in the profit (loss) for the year | 10.6 | 72.9 | (21.8) | 76.9 | 138.5 |
In EUR\u00a0million | |||||
Backed | AMB I, II & IV | Parques Reunidos/Piolin II | Other associates and joint ventures | Total | |
As of December 31, 2022 | |||||
Non-current assets | 320.1 | 678.0 | 2,369.9 | 277.4 | 3,645.5 |
Current assets | 4.8 | 3.3 | 150.7 | 170.4 | 329.2 |
Non-current liabilities | 31.6 | 40.8 | 1,830.7 | 67.9 | 1,970.9 |
Current liabilities | 1.4 | 5.1 | 298.1 | 74.8 | 379.4 |
Non-controlling interests | - | - | 1.3 | 0.0 | 1.3 |
Shareholder's equity (group's share) | 291.9 | 635.5 | 390.6 | 305.0 | 1,623.0 |
Ownership interest in capital | n.r. | n.r. | 23.1% | n.r. | n.r. |
Share in equity | 139.4 | 219.1 | 90.2 | 163.9 | 612.6 |
Goodwill | - | - | - | 4.8 | 4.8 |
Carrying amount as of December 31, 2022 | 139.4 | 219.1 | 90.2 | 168.7 | 617.4 |
Turnover | - | - | 820.5 | 334.9 | 1,155.4 |
Profit (loss) from continuing operations | (15.0) | 26.7 | 5.9 | 58.5 | 76.1 |
Net result of the year (including non-controlling interests) | (15.0) | 26.7 | 5.9 | 58.5 | 76.1 |
Net result of the year (group\u2019s share) | (15.0) | 26.7 | 5.7 | 58.5 | 75.9 |
Other comprehensive income (loss) | - | - | (4.2) | 0.0 | (4.1) |
Total comprehensive income (loss) for the year | (15.0) | 26.7 | 1.6 | 58.6 | 71.8 |
Dividends received during the year | - | - | - | 19.1 | 19.1 |
Share of the group in the profit (loss) for the year | (10.3) | 9.2 | 1.3 | 35.7 | 35.9 |
Companies leaving the group structure
Webhelp
On March 29, 2023, Webhelp and Concentrix announced that they had reached an agreement to combine the two groups. This transaction has created a global player in customer experience (\u201cCX\u201d). The Group concluded that the entire group Webhelp, with the exception of the investment vehicle Sapiens S\u00e0rl, constituted from this date a group held for sale because the following condition was met: GBL\u2019s ability to dispose of this business immediately in its current state within one year. As a consequence the group Webhelp has been classified as a discontinued operation.
On September 25, 2023, the sale of Webhelp has been completed.GBL received a total consideration of EUR\u00a01,103\u00a0million composed of (i)\u00a08,773,667\u00a0Concentrix + Webhelp shares (valued, as at the date of the transaction, at EUR\u00a0610\u00a0million), (ii) earn-out shares (valued, as at the date of the transaction, at EUR\u00a018\u00a0million), (iii) a seller note (with a net present value, as at the date of the transaction, of EUR\u00a0460\u00a0million) and (iv) cash for EUR\u00a015\u00a0million. The debt on minority shareholders was extinguished, without any impact on GBL\u2019s cash, at the closing of the transaction. The impact of the reversal was included in the gain on deconsolidation of Webhelp.
Upon completion of the transaction, GBL became the largest shareholder of the combined entity (\u201cConcentrix + Webhelp\u201d) with 13.17% of the capital and voting rights. GBL is also represented on the Board of Directors.
The assets and liabilities sold are shown in the table below:
In EUR\u00a0million | September 25, 2023 |
Non-current assets\u00a0 | 3,483.9 |
Current assets\u00a0 | 1,078.6 |
Assets held for sale | 4,562.5 |
Assets held for sale | 2,143.3(1) |
Current liabilities\u00a0 | 2,579.3 |
Liabilities associated with assets held for sale | 4,722.6 |
The contributions from discontinued operations have been presented on separate lines in the consolidated income statement and consolidated statement of cash flows, and are shown in the table below:
In EUR\u00a0million | 2023 | 2022 |
Share of profit (loss) of associates and joint ventures from investing activities | - | - |
Net dividends from investments | - | - |
Other operating income (expenses) from investing activities | - | - |
Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities | - | - |
Financial income (expenses) from investing activities | - | 0.1 |
Profit (loss) before tax from investing activities - continuing operations | - | 0.1 |
Turnover | 2,013.8 | 2,485.3 |
Raw materials and consumables | (47.6) | (57.9) |
Employee expenses | (1,500.7) | (1,841.7) |
Depreciation/amortization of property, plant, equipment and intangible assets (excluding impairments and reversals) | (167.2) | (215.5) |
Other operating income (expenses) from operating activities | (215.7) | (301.6) |
Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities | (0.0) | (6.9) |
Financial income (expenses) from operating activities\u00a0 | (51.9) | (413.0) |
Profit (loss) before tax from consolidated operating activities | 30.7 | (351.2) |
Gains (losses) on disposals | 1,291.8 | - |
Income taxes\u00a0 | (11.8) | (18.4) |
Profit (loss) from consolidated operating activities - discontinued operations | 1,310.7 | (369.5) |
In EUR\u00a0million | 2023 | 2022 |
Cash flow from operating activities | 215.6 | 259.8 |
Cash flow from investing activities | (89.9) | (220.4) |
Cash flow from financing activities | (22.7) | (87.3) |
Change in cash and cash equivalents | 103.1 | (47.9) |
The net cash inflow from this sale was EUR\u00a0- 422\u00a0millions.
(1)\tIncluding the debt on minority shareholders
Note 1Segment information
IFRS 8 Operating Segmentsrequires the identification of segments based on internal reports which are regularly presented to the main operating decision-maker for the purpose of managing the allocation of resources to the segments and assessing their performance.
In conformity with IFRS 8, the group has identified seven segments:
Holding: consisting of the parent company GBL and its subsidiaries. Its main activity is to manage investments as well as the non-consolidated operating companies or associates;
Imerys: consisting of the Imerys group, a French group listed on Euronext Paris and holding leading positions in each of its two main business lines: Performance Minerals and Refractory, Abrasives & Construction;
Webhelp: consisting, until September 25, 2023, date of the disposal, of the Webhelp group, a non-listed French group, specialized in customer experience and business process outsourcing, as well as the dedicated investment vehicle, Sapiens S\u00e0rl;
Canyon: consisting of the Canyon group, a non-listed German group, the world leader in exclusively online Direct-to-Consumer (\u201cDTC\u201d) sales of premium bicycles, as well as the dedicated investment vehicle, GfG Capital S\u00e0rl;
Affidea: comprising the non-listed Affidea Group, leading European provider of advanced diagnostics and outpatient services, and the dedicated investment vehicles to Celeste Capital S\u00e0rl;
Sanoptis: comprising the non-listed Sanoptis(1)Group, a European leader in ophthalmology services including surgeries and diagnostics, and the dedicated investment vehicles to Sofia Capital S\u00e0rl; and
GBL Capital and Sienna Investment Managers (\u201cSIM\u201d)including:
GBL Capital, with its investment\u2019s activity, which includes investments in alternative funds and direct co-investments in private equity, as well as, under consolidated operating activities, the operating subsidiaries of AMB III (subgroups Sausalitos, Vanreusel, Indo, etc.);
Sienna Investment Managers, activity of third-party asset management, through its stake in Sienna Real Estate, Sienna Gestion and Sienna\u00a0Private Credit.
The results of a segment, its assets and its liabilities include all the items directly attributable to it. The accounting standards applied to these segments are identical as those described in the section entitled \u201cAccounting Policies\u201d.
(1)\tFor the following companies of the Sanoptis Group, which are included in the consolidated financial statements, the disclosure exemptions according to \u00a7 264 para. 3 HGB (German Commercial Code) are aplied for: Sanoptis GmbH, Augenklinik Dr. Hoffmann GmbH, Augen\u00e4rzte Braunschweig-G\u00f6ttingen MVZ GmbH, MASG - Medizinische Abrechnungs- und Servicegesellschaft mbH, S\u00fcdblick GmbH, Augenheilkunde Medizinische Versorgungszentren Dillingen GmbH, Augenheilkunde Medizinische Versorgungszentren Heidenheim GmbH, nordBLICK Augenklinik Bellevue GmbH, nordBLICK MVZ GmbH, Wilhelminenhaus Kiel MVZ GmbH, Augentagesklinik Zehlendorf MVZ GmbH, Berolina Augenzentren MVZ GmbH, Augerlin MVZ GmbH, MVZ RHR Augen\u00e4rzte GmbH, MVZ Auregio GmbH, MVZ i-care4u GmbH, Augenzentrum M\u00fchldorf MVZ GmbH, Augenklinik M\u00fchldorf GmbH, Augenkompetenz Zentrum Bremerhaven MVZ GmbH, Augenblick Mannheim S\u00fcd MVZ GmbH, Augenblick Mannheim-Zentrum MVZ GmbH, Augenzentrum Oberstenfeld MVZ GmbH, Augenklinik Rendsburg GmbH, Taxi und Transport Neuwerk GmbH, Augenzentrum Unna MVZ GmbH, Augenblick Augenzentrum Reutlingen MVZ GmbH, Mainblick Augenzentrum GmbH, MVZ Augen Praxisklinik L\u00fcbeck GmbH, Augenzentrum an der Leine MVZ GmbH (former: MVZ Sch\u00f6ne Augenblicke GmbH), Augencentrum K\u00f6ln MVZ GmbH, BEP Augen\u00e4rzte MVZ GmbH, Augenkompetenz Zentrum Cuxhaven MVZ GmbH, AOC Augen OP Centrum Porz GmbH, Augenkompetenz Zentrum Cuxhaven MVZ GmbH (former: MVZ Augencentrum Cuxhaven GmbH), MVZ Weitblick GmbH, Augenheilkunde und Augenchirurgie Bottrop MVZ GmbH, Augentagesklinik am Rothenbaum RBC MVZ GmbH, Avila Augenpraxisklinik MVZ GmbH, Augenzentrum Brilon MVZ GmbH, OCU PRO\u00aeAugen\u00e4rzte MVZ GmbH, Rheinblick Augenzentrum GmbH, Argus Augen MVZ GmbH and Oculent Contactlinsen GmbH
1.1\tSegment information - Consolidated income statement
For the period ended as of December 31, 2023
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Share of profit (loss) of associates and joint ventures from investing activities | (21.8) | - | - | - | - | - | 65.8 | 44.0 |
Net dividends from investments | 286.1 | - | - | - | - | - | - | 286.1 |
Other operating income (expenses) from investing activities | (49.7) | - | (0.2) | (0.1) | (1.2) | (0.4) | (74.5) | (126.0) |
Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities | - | - | (0.0) | - | - | - | 18.5 | 18.5 |
Financial income (expenses) from investing activities | 77.0 | - | (0.4) | - | (0.0) | - | 204.3 | 280.9 |
Profit (loss) before tax from investing activities - continuing operations | 291.6 | - | (0.5) | (0.1) | (1.3) | (0.4) | 214.1 | 503.5 |
Turnover | - | 3,794.4 | - | 790.6 | 851.8 | 494.1 | 206.4 | 6,137.3 |
Raw materials and consumables | - | (1,365.3) | - | (517.3) | (87.9) | (98.6) | (41.5) | (2,110.7) |
Employee expenses | - | (869.1) | - | (105.8) | (438.1) | (205.5) | (71.6) | (1,690.2) |
Depreciation/amortization of property, plant, equipment and intangible assets (excluding impairments and reversals) | - | (299.7) | - | (44.4) | (112.7) | (39.7) | (23.1) | (519.6) |
Other operating income (expenses) from operating activities\u00a0(1) | - | (930.2) | (0.1) | (129.2) | (160.8) | (75.8) | (70.5) | (1,366.7) |
Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities | - | (222.0) | (0.0) | - | 0.2 | 0.0 | (3.5) | (225.3) |
Financial income (expenses) from operating activities\u00a0 | - | (38.6) | (0.0) | (13.0) | (83.2) | (84.9) | (8.7) | (228.4) |
Profit (loss) before tax from consolidated operating activities - continuing operations | - | 69.4 | (0.1) | (19.1) | (30.9) | (10.5) | (12.5) | (3.7) |
Income taxes\u00a0 | (0.2) | (60.4) | (0.0) | 5.9 | (10.4) | (45.8) | (1.3) | (112.2) |
Profit (loss) from continuing operations | 291.4 | 8.9 | (0.6) | (13.3) | (42.5) | (56.7) | 200.3 | 387.5 |
Profit (loss) from consolidated operating activities - discontinued operations | - | 44.9 | 1,310.7 | - | - | - | - | 1,355.6 |
Consolidated profit (loss) for the year | 291.4 | 53.8 | 1,310.1 | (13.3) | (42.5) | (56.7) | 200.3 | 1,743.1 |
Attributable to the group | 291.4 | 28.2 | 1,300.5 | (6.2) | (42.6) | (47.1) | 199.1 | 1,723.2 |
Information by segment on other items of profit or loss is mentioned below:
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Share of profit (loss) of associates and joint ventures | (21.8) | 90.5 | - | - | - | 0.2 | 70.7 | 139.4 |
Depreciation/amortization of property, plant, equipment and intangible assets | (1.1) | (299.8) | (167.2) | (44.4) | (112.7) | (39.7) | (28.2) | (693.1) |
Impairment of non-current assets | - | (214.6) | (0.8) | - | - | - | 1.2 | (214.1) |
(1)\tIncludes the share of profit (loss) of associates and joint ventures from operating activities
For the period ended as of December 31, 2022
In EUR\u00a0million | Holding | Imerys | Webhelp\u00a0(1) | Canyon | Affidea | Sanoptis | GBL Capitalen SIM | Total |
Share of profit (loss) of associates and joint ventures from investing activities | 1.3 | - | - | - | - | - | 1.9 | 3.2 |
Net dividends from investments | 322.3 | - | - | - | - | - | - | 322.3 |
Other operating income (expenses) from investing activities | (37.0) | - | (0.2) | (0.2) | (0.0) | (0.1) | (79.8) | (117.3) |
Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities | - | - | - | - | - | 0.0 | (83.3) | (83.3) |
Financial income (expenses) from investing activities | 136.4 | - | (0.4) | - | (0.0) | - | (531.5) | (395.5) |
Profit (loss) before tax from investing activities - continuing operations | 422.9 | - | (0.6) | (0.2) | (0.0) | (0.1) | (692.6) | (270.6) |
Turnover | - | 4,281.6 | - | 644.9 | 306.6 | 180.1 | 210.2 | 5,623.3 |
Raw materials and consumables | - | (1,472.5) | - | (375.8) | (32.8) | (35.0) | (48.1) | (1,964.2) |
Employee expenses | - | (872.7) | - | (77.8) | (156.2) | (77.5) | (73.8) | (1,258.0) |
Depreciation/amortization of property, plant, equipment and intangible assets (excluding impairments and reversals) | - | (303.1) | - | (46.9) | (42.5) | (23.6) | (26.6) | (442.6) |
Other operating income (expenses) from operating activities\u00a0(2) | - | (1,201.6) | (0.9) | (105.9) | (78.6) | (44.6) | (66.2) | (1,498.0) |
Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities | - | (112.6) | - | - | - | (0.0) | 0.1 | (112.5) |
Financial income (expenses) from operating activities | - | (51.0) | (0.0) | (5.2) | (24.2) | (24.1) | (8.2) | (112.7) |
Profit (loss) before tax from consolidated operating activities - continuing operations | - | 268.1 | (1.0) | 33.2 | (27.8) | (24.7) | (12.6) | 235.3 |
Income taxes\u00a0 | 0.2 | (91.0) | (0.0) | (10.2) | (1.9) | (0.0) | (2.1) | (105.0) |
Profit (loss) from continuing operations | 423.1 | 177.1 | (1.6) | 22.8 | (29.7) | (24.8) | (707.3) | (140.3) |
Profit (loss) from consolidated operating activities - discontinued operations | - | 77.3 | (369.5) | - | - | - | - | (292.2) |
Consolidated profit (loss) for the periode | 423.1 | 254.4 | (371.0) | 22.8 | (29.7) | (24.8) | (707.3) | (432.5) |
Attributable to the group | 423.1 | 130.4 | (388.2) | 11.0 | (30.0) | (20.7) | (710.3) | (584.7) |
Information by segment on other items of profit or loss is mentioned below:
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Share of profit (loss) of associates and joint ventures | 1.3 | 35.9 | - | - | - | - | 4.7 | 41.9 |
Depreciation/amortization of property, plant, equipment and intangible assets | (0.8) | (316.8) | (215.5) | (46.9) | (42.5) | (23.6) | (30.3) | (676.5) |
Impairment of non-current assets | - | (126.0) | (6.9) | - | - | - | (130.7) | (263.6) |
The geographical split of the turnover is presented in Note 8.
(1)\tThe income statement for the period ending December 31, 2022 has been restated to reflect the designation as discontinued operations, in accordance with IFRS 5, of the Webhelp group \u2013 see Note Scope of consolidation
(2)\tIncludes the share of profit (loss) of associates and joint ventures from operating activities
1.2\tSegment information - Consolidated balance sheet
Consolidated balance sheet as of December 31, 2023
In EUR\u00a0million | Holding | Imerys | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Non-current assets | 10,903.5 | 4,469.7 | 749.6 | 2,150.2 | 2,294.2 | 3,024.9 | 23,592.2 |
Intangible assets | 1.0 | 333.3 | 351.9 | 603.5 | 741.9 | 41.8 | 2,073.5 |
Goodwill | - | 1,839.1 | 309.1 | 936.3 | 1,236.6 | 39.7 | 4,360.7 |
Property, plant and equipment | 13.6 | 2,018.4 | 66.2 | 576.5 | 280.2 | 22.0 | 2,976.9 |
Investments | 10,368.2 | 122.9 | 8.6 | 3.0 | 11.8 | 2,861.9 | 13,376.5 |
Investments in associates and joint ventures | 68.0 | 122.7 | 0.0 | - | 10.1 | 571.0 | 771.8 |
Other equity investments | 10,300.3 | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 | 12,604.8 |
Other non-current assets | 520.7 | 41.5 | 2.1 | 10.7 | 9.9 | 57.9 | 642.8 |
Deferred tax assets | - | 114.5 | 11.7 | 20.2 | 13.9 | 1.5 | 161.8 |
Current assets | 1,124.9 | 2,682.2 | 475.6 | 253.9 | 182.4 | 248.5 | 4,967.5 |
Inventories | - | 734.6 | 417.9 | 11.4 | 8.9 | - | 1,172.8 |
Trade receivables | 1.5 | 398.5 | 2.9 | 113.7 | 71.7 | 12.3 | 600.6 |
Trading financial assets | 705.5 | 671.9 | 8.1 | - | - | 0.0 | 1,385.6 |
Cash and cash equivalents | 378.5 | 585.0 | 16.7 | 78.0 | 52.6 | 87.2 | 1,198.0 |
Other current assets | 39.4 | 253.7 | 29.9 | 50.9 | 49.2 | 14.4 | 437.4 |
Assets held for sale | - | 38.5 | - | - | - | 134.7 | 173.1 |
Total assets | 12,028.4 | 7,151.9 | 1,225.2 | 2,404.1 | 2,476.7 | 3,273.4 | 28,559.6 |
Non-current liabilities | 3,061.0 | 2,497.6 | 373.3 | 1,221.2 | 1,590.5 | 62.3 | 8,805.9 |
Financial liabilities | 3,051.4 | 1,810.5 | 261.7 | 1,002.2 | 1,035.6 | 15.8 | 7,177.2 |
Provisions | 0.5 | 426.6 | 8.4 | 13.4 | 4.8 | 2.1 | 456.0 |
Pensions and post-employment benefits | 1.9 | 160.6 | 0.2 | 13.1 | 7.6 | 0.3 | 183.8 |
Other non-current liabilities | 7.2 | 18.7 | - | 56.2 | 355.5 | 34.8 | 472.4 |
Deferred tax liabilities\u00a0 | - | 81.2 | 103.0 | 136.1 | 186.9 | 9.4 | 516.5 |
Current liabilities | 598.4 | 1,497.0 | 136.9 | 261.8 | 113.6 | 136.4 | 2,744.1 |
Financial liabilities | 507.7 | 566.7 | 6.6 | 49.0 | 36.3 | 7.3 | 1,173.7 |
Trade payables | 6.5 | 377.9 | 84.4 | 47.5 | 27.2 | 28.0 | 571.5 |
Provisions | - | 43.6 | 8.2 | 0.2 | 0.1 | 0.1 | 52.2 |
Tax liabilities | 8.2 | 86.0 | 10.6 | 12.2 | 5.2 | 3.2 | 125.3 |
Other current liabilities\u00a0 | 76.0 | 396.8 | 27.0 | 152.9 | 44.8 | 31.9 | 729.4 |
Liabilities associated with assets held for sale | - | 26.0 | - | - | - | 65.8 | 91.9 |
Total liabilities\u00a0 | 3,659.4 | 3,994.6 | 510.2 | 1,482.9 | 1,704.1 | 198.7 | 11,550.0 |
All the assets and liabilities are allocated to the various segments.
Capital expenditure (property, plant and equipment and intangible assets) by segment is shown in the following table:
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Capital expenditure | 1.0 | 390.3 | 72.5 | 20.6 | 80.7 | 82.6 | 8.9 | 656.5 |
Consolidated balance sheet as of December 31, 2022
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Non-current assets | 11,217.2 | 4,357.4 | 3,505.6 | 751.7 | 1,972.2 | 1,846.8 | 2,826.1 | 26,477.0 |
Intangible assets | 1.1 | 287.5 | 833.6 | 373.4 | 589.7 | 663.5 | 86.8 | 2,835.6 |
Goodwill | - | 1,852.2 | 2,128.3 | 309.1 | 889.2 | 965.9 | 113.9 | 6,258.5 |
Property, plant and equipment | 15.2 | 1,959.2 | 499.4 | 48.4 | 468.9 | 184.0 | 113.6 | 3,288.6 |
Investments | 11,200.4 | 92.8 | 0.0 | 0.0 | 1.0 | 2.3 | 2,485.2 | 13,781.8 |
Investments in associates and joint ventures | 90.2 | 90.5 | - | 0.0 | - | - | 436.7 | 617.4 |
Other equity investments | 11,110.2 | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 | 13,164.4 |
Other non-current assets | 0.6 | 54.9 | 28.0 | 13.1 | 4.8 | 6.2 | 25.4 | 132.9 |
Deferred tax assets | - | 110.7 | 16.3 | 7.8 | 18.8 | 24.9 | 1.2 | 179.6 |
Current assets | 1,427.9 | 3,513.6 | 990.6 | 483.9 | 187.7 | 176.7 | 142.9 | 6,923.4 |
Inventories | - | 789.9 | 5.0 | 393.6 | 9.6 | 5.7 | 6.7 | 1,210.6 |
Trade receivables | 0.0 | 489.9 | 454.1 | 3.3 | 88.3 | 53.8 | 19.3 | 1,108.7 |
Trading financial assets | 839.8 | 1.9 | 12.0 | 16.3 | - | - | 0.0 | 870.0 |
Cash and cash equivalents | 544.0 | 620.2 | 340.0 | 25.0 | 63.0 | 88.0 | 88.0 | 1,768.3 |
Other current assets | 44.0 | 235.6 | 179.4 | 45.7 | 26.8 | 29.2 | 28.8 | 589.5 |
Assets held for sale | - | 1,376.2 | - | - | - | - | - | 1,376.2 |
Total assets | 12,645.1 | 7,871.0 | 4,496.2 | 1,235.6 | 2,160.0 | 2,023.5 | 2,969.0 | 33,400.4 |
Non-current liabilities | 3,102.8 | 2,465.6 | 3,879.3 | 367.1 | 968.6 | 1,100.2 | 217.5 | 12,101.1 |
Financial liabilities | 3,055.4 | 1,792.7 | 1,988.1 | 249.8 | 779.1 | 694.5 | 155.1 | 8,714.7 |
Provisions | 0.5 | 388.8 | 2.5 | 4.4 | 9.9 | 2.0 | 4.9 | 413.1 |
Pensions and post-employment benefits | 1.4 | 160.2 | 14.4 | 0.2 | 11.1 | 1.5 | 0.3 | 189.1 |
Other non-current liabilities | 45.4 | 24.1 | 1,732.1 | - | 28.4 | 262.2 | 32.6 | 2,124.8 |
Deferred tax liabilities\u00a0 | - | 99.9 | 142.2 | 112.8 | 140.1 | 139.9 | 24.5 | 659.4 |
Current liabilities | 1,148.5 | 2,020.0 | 792.1 | 123.2 | 226.7 | 77.5 | 91.7 | 4,479.7 |
Financial liabilities | 984.0 | 498.4 | 89.8 | 5.4 | 40.3 | 19.3 | 17.3 | 1,654.6 |
Trade payables | 4.1 | 540.1 | 129.2 | 66.7 | 48.8 | 27.1 | 41.4 | 857.4 |
Provisions | - | 34.3 | 23.6 | 7.4 | 3.2 | 0.1 | 0.1 | 68.6 |
Tax liabilities | 6.8 | 105.0 | 31.5 | 10.5 | 4.9 | 4.8 | 3.5 | 167.0 |
Other current liabilities\u00a0 | 153.6 | 373.3 | 518.0 | 33.2 | 129.5 | 26.1 | 29.4 | 1,263.1 |
Liabilities associated with assets held for sale | - | 468.9 | - | - | - | - | - | 468.9 |
Total liabilities\u00a0 | 4,251.3 | 4,485.6 | 4,671.4 | 490.4 | 1,195.3 | 1,177.7 | 309.2 | 16,580.8 |
All the assets and liabilities are allocated to the various segments.
Capital expenditure (property, plant and equipment and intangible assets) by segment is shown in the following table:
In EUR\u00a0million | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM | Total |
Capital expenditure | 1.4 | 406.2 | 132.5 | 23.3 | 37.1 | 22.1 | 12.7 | 635.3 |
The breakdown of the group\u2019s non-current assets(1)by geographic region is as follows:
In EUR\u00a0million | 2023 | 2022 |
Belgium | 140.5 | 223.4 |
Other European countries | 7,650.9 | 10,155.8 |
North America | 1,036.5 | 1,167.3 |
Other | 586.3 | 836.3 |
Total | 9,414.1 | 12,382.8 |
Regarding the exposure to climate risks, given their geographic location, Imerys\u2019 entities may potentially be exposed to physical risks related to climate change, such as flooding, submersion, droughts, tornadoes and wildfires. Imerys uses Hazard modelling to identify the locations likely to be exposed to these risks between now and 2050. At December\u00a031, 2023, the carrying amount of these sites represented 9.1% of the group\u2019s consolidated assets, which are covered by suitable insurance policies (2.4% as of December\u00a031, 2022).
Note 1Segment information
IFRS 8 Operating Segmentsrequires the identification of segments based on internal reports which are regularly presented to the main operating decision-maker for the purpose of managing the allocation of resources to the segments and assessing their performance.
In conformity with IFRS 8, the group has identified seven segments:
Holding: consisting of the parent company GBL and its subsidiaries. Its main activity is to manage investments as well as the non-consolidated operating companies or associates;
Imerys: consisting of the Imerys group, a French group listed on Euronext Paris and holding leading positions in each of its two main business lines: Performance Minerals and Refractory, Abrasives & Construction;
Webhelp: consisting, until September 25, 2023, date of the disposal, of the Webhelp group, a non-listed French group, specialized in customer experience and business process outsourcing, as well as the dedicated investment vehicle, Sapiens S\u00e0rl;
Canyon: consisting of the Canyon group, a non-listed German group, the world leader in exclusively online Direct-to-Consumer (\u201cDTC\u201d) sales of premium bicycles, as well as the dedicated investment vehicle, GfG Capital S\u00e0rl;
Affidea: comprising the non-listed Affidea Group, leading European provider of advanced diagnostics and outpatient services, and the dedicated investment vehicles to Celeste Capital S\u00e0rl;
Sanoptis: comprising the non-listed Sanoptis(1)Group, a European leader in ophthalmology services including surgeries and diagnostics, and the dedicated investment vehicles to Sofia Capital S\u00e0rl; and
GBL Capital and Sienna Investment Managers (\u201cSIM\u201d)including:
GBL Capital, with its investment\u2019s activity, which includes investments in alternative funds and direct co-investments in private equity, as well as, under consolidated operating activities, the operating subsidiaries of AMB III (subgroups Sausalitos, Vanreusel, Indo, etc.);
Sienna Investment Managers, activity of third-party asset management, through its stake in Sienna Real Estate, Sienna Gestion and Sienna\u00a0Private Credit.
The results of a segment, its assets and its liabilities include all the items directly attributable to it. The accounting standards applied to these segments are identical as those described in the section entitled \u201cAccounting Policies\u201d.
Note 3SGS, Pernod Ricard, adidas and other equity investments
3.1\tNet dividends
In EUR\u00a0million | 2023 | 2022 |
SGS | 117.7 | 109.8 |
Pernod Ricard | 80.9 | 82.0 |
Holcim | 33.6 | 28.0 |
Umicore | 31.4 | 31.4 |
GEA | 9.9 | 10.2 |
adidas | 8.2 | 38.5 |
Concentrix + Webhelp | 2.4 | - |
Mowi | 1.4 | 19.1 |
TotalEnergies | 0.7 | 0.8 |
Other | 0.1 | 0.9 |
Reimbursements of withholding taxes | - | 1.6 |
Total | 286.1 | 322.3 |
In 2023, GBL recorded EUR\u00a0286\u00a0million in dividends (EUR\u00a0322\u00a0million in 2022). This decrease mainly reflects the lower dividends received from\u00a0adidas, as well as the decrease of Mowi\u2019s contribution as a consequence of the sales of the position in 2022 and 2023.
3.2\tFair value and changes
The investments in listed companies are valued on the basis of the share price at the reporting date. The investments in unlisted companies are valued on a quarterly basis at their fair value in line with the recommendations of the International Private Equity and Venture Capital Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d). Recent investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of their fair values. Changes in the fair value are recognized in the revaluation reserves (see Note 3.3.).
Shares in \u201cFunds\u201d comprising 468 Capital II, Alto Capital V, Apheon opseo Long Term Value Fund, Apheon SVT Long Term Value Fund, BDT Capital Partners Fund II, Carlyle International Energy Partners II, C2 Capital Global Export-to-China Fund, E.C.B. (Bastille)-Telenco, EC IV Invest, Eight Partners Worldwide, Fonds F2E, Globality, Griffin, HCM IV, HCM V, HCM S11A (Transcarent), HCM S3C (Commure), Iceberg Data Lab, Iconiq VII, Illumio, Innovius Capital Fund, Kartesia Credit Opportunities III, IV and V, KKR Azur Co-invest, KKR Rainbow Co-Invest (Asset), KKR Sigma Co-Invest II, Klarna Holding, Marcho Partners, Marcho Partners Long, Cepsa, M\u00e9rieux Participations I, Predirec ABL-3 (Part B), PrimeStone, Sagard, Sagard II, Sagard 3, Sagard 4, Sagard NewGen,Sagard NewGen Pharma, Sagard Sant\u00e9 Animale, Sagard Testing, Sagard Business Intelligence, Sapphire (proALPHA), Sienna Levier, Sienna Rendement Avenir IV, Sienna Social Impact, Sienna Venture Capital Startup Nation, Sienna Sustainable Infra Debt\u00a0III, South Park Commons Seed Fund II, South Park Commons Opportunities Fund II, Stripes VI (A) and others are revalued at their fair value, as notably determined by the managers of these funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss) (see Note 7).
Of which: | ||||||||||||
In EUR\u00a0million | December 31, 2022 | Acquisitions | Disposals/Reimburse-ments | Change in fair value | Other | December 31, 2023 | Holding | Imerys | Canyon | Affidea | Sanoptis | GBL Capitaland SIM |
Investments with changes in fair value through equity | 11,110.2 | 643.3 | (1,075.8) | (377.5) | 0.0 | 10,300.3 | 10,300.3 | - | - | - | - | - |
SGS | 3,126.6 | 33.3 | - | (324.9) | - | 2,835.0 | 2,835.0 | - | - | - | - | - |
Pernod Ricard | 3,266.2 | - | (23.6) | (494.1) | - | 2,748.5 | 2,748.5 | - | - | - | - | - |
adidas | 1,748.1 | - | - | 777.6 | - | 2,525.7 | 2,525.7 | - | - | - | - | - |
Umicore | 1,346.5 | - | - | (369.6) | - | 976.9 | 976.9 | - | - | - | - | - |
Concentrix + Webhelp | - | 609.9 | - | 169.8 | - | 779.8 | 779.8 | - | - | - | - | - |
Voodoo | 273.0 | - | - | 14.2 | - | 287.2 | 287.2 | - | - | - | - | - |
Ontex | 102.7 | - | - | 22.5 | - | 125.1 | 125.1 | - | - | - | - | - |
TotalEnergies | 15.7 | - | - | 0.8 | 0.0 | 16.5 | 16.5 | - | - | - | - | - |
GEA | 434.0 | - | (400.9) | (28.9) | - | 4.2 | 4.2 | - | - | - | - | - |
Holcim | 639.7 | - | (488.1) | (151.6) | - | - | - | - | - | - | - | - |
Mowi | 156.7 | - | (163.2) | 6.5 | - | - | - | - | - | - | - | - |
Other | 1.2 | 0.0 | - | 0.2 | - | 1.4 | 1.4 | - | - | - | - | - |
Investments with changes in fair value through profit or loss | 2,054.2 | 347.9 | (270.5) | 187.6 | (14.6) | 2,304.6 | - | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 |
Co-investments/Funds | 2,030.9 | 343.5 | (266.3) | 187.6 | (27.0) | 2,268.6 | - | - | - | - | - | 2,268.6 |
Other | 23.3 | 4.4 | (4.2) | - | 12.4 | 35.9 | - | 0.2 | 8.6 | 3.0 | 1.7 | 22.3 |
Fair value | 13,164.4 | 991.2 | (1,346.3) | (189.9) | (14.6) | 12,604.8 | 10,300.3 | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 |
Of which: | |||||||||||||
In EUR\u00a0million | December 31, 2021 | Acquisitions | Disposals/Reimburse-ments | Change in fair value | Other | December 31, 2022 | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM |
Investments with changes in fair value through equity | 15,789.2 | 0.7 | (759.3) | (3,920.4) | 0.0 | 11,110.2 | 11,110.2 | - | - | - | - | - | - |
SGS | 4,207.3 | - | (87.6) | (853.6) | - | 3,266.2 | 3,266.2 | - | - | - | - | - | - |
Pernod Ricard | 4,223.4 | - | - | (1,096.8) | - | 3,126.6 | 3,126.6 | - | - | - | - | - | - |
adidas | 3,472.5 | - | - | (1,724.5) | - | 1,748.1 | 1,748.1 | - | - | - | - | - | - |
Umicore | 1,402.6 | - | - | (56.1) | - | 1,346.5 | 1,346.5 | - | - | - | - | - | - |
Holcim | 592.3 | - | - | 47.4 | - | 639.7 | 639.7 | - | - | - | - | - | - |
GEA | 546.3 | - | - | (112.4) | - | 434.0 | 434.0 | - | - | - | - | - | - |
Voodoo | 266.0 | 0.3 | - | 6.7 | - | 273.0 | 273.0 | - | - | - | - | - | - |
Mowi | 756.9 | - | (436.8) | (163.4) | - | 156.7 | 156.7 | - | - | - | - | - | - |
Ontex | 115.0 | - | - | (12.3) | - | 102.7 | 102.7 | - | - | - | - | - | - |
TotalEnergies | 11.9 | - | - | 3.7 | 0.0 | 15.7 | 15.7 | - | - | - | - | - | - |
Other | 194.9 | 0.4 | (234.9) | 40.7 | - | 1.2 | 1.2 | - | - | - | - | - | - |
Investments with changes in fair value through profit or loss | 2,385.7 | 491.9 | (328.5) | (487.1) | (7.7) | 2,054.2 | - | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 |
Funds | 2,385.7 | 473.1 | (328.5) | (487.1) | (12.3) | 2,030.9 | - | - | - | - | - | - | 2,030.9 |
Other | 0.0 | 18.7 | (0.0) | - | 4.6 | 23.3 | - | 2.3 | 0.0 | - | 1.0 | 2.3 | 17.6 |
Fair value | 18,174.9 | 492.6 | (1,087.8) | (4,407.5) | (7.7) | 13,164.4 | 11,110.2 | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 |
3.3\tRevaluation reserves
These reserves include the changes in the fair value of other equity investments whose changes in fair value are recorded through equity.
In 2023, the disposals of the remaining stakes in Holcim and Mowi, the partial disposal of Pernod Ricard and the disposal of the securities underlying the exchangeable bonds in GEA shares (matured in December\u00a02023) resulted in a reclassification to retained earnings\u00a0of\u00a0EUR\u00a0-\u00a045\u00a0million, EUR\u00a05\u00a0million, EUR\u00a0-\u00a087\u00a0million and EUR\u00a036\u00a0million respectively. In 2022, following\u00a0the\u00a0partial disposals of Mowi and Pernod\u00a0Ricard, the cumulated revaluation reserves of EUR\u00a075\u00a0million and EUR\u00a0297\u00a0million respectively were reclassified to retained earnings.
In EUR\u00a0million | SGS | Pernod Ricard | adidas | Umicore | Mowi | Holcim | GEA | Concentrix + Webhelp | Voodoo | Ontex | TotalEnergies | Other | Total |
As of December 31, 2021 | 1,670.0 | 3,384.4 | 2,361.2 | 607.9 | 156.8 | 104.2 | 141.5 | - | (2.2) | (339.4) | 5.6 | (43.5) | 8,046.6 |
Change resulting from the change in fair value | (1,096.8) | (556.8) | (1,724.5) | (56.1) | (88.4) | 47.4 | (112.4) | - | 6.7 | (12.3) | 3.7 | (29.2) | (3,618.6) |
Transfers to consolidated reserves in case of disposal | - | (296.7) | - | - | (75.0) | - | - | - | - | - | - | 69.9 | (301.8) |
As of December 31, 2022 | 573.1 | 2,530.8 | 636.7 | 551.8 | (6.5) | 151.6 | 29.2 | - | 4.5 | (351.7) | 9.3 | (2.7) | 4,126.1 |
Change resulting from the change in fair value | (324.9) | (407.2) | 777.6 | (369.6) | 1.3 | (106.2) | (64.6) | 169.8 | 14.2 | 22.5 | 0.8 | 0.2 | (285.9) |
Transfers to consolidated reserves in case of disposal | - | (86.9) | - | - | 5.2 | (45.4) | 35.6 | - | - | - | - | - | (91.6) |
As of December 31, 2023 | 248.2 | 2,036.8 | 1,414.4 | 182.2 | - | - | 0.2 | 169.8 | 18.8 | (329.3) | 10.1 | (2.5) | 3,748.7 |
Note 3SGS, Pernod Ricard, adidas and other equity investments
3.1\tNet dividends
In EUR\u00a0million | 2023 | 2022 |
SGS | 117.7 | 109.8 |
Pernod Ricard | 80.9 | 82.0 |
Holcim | 33.6 | 28.0 |
Umicore | 31.4 | 31.4 |
GEA | 9.9 | 10.2 |
adidas | 8.2 | 38.5 |
Concentrix + Webhelp | 2.4 | - |
Mowi | 1.4 | 19.1 |
TotalEnergies | 0.7 | 0.8 |
Other | 0.1 | 0.9 |
Reimbursements of withholding taxes | - | 1.6 |
Total | 286.1 | 322.3 |
In 2023, GBL recorded EUR\u00a0286\u00a0million in dividends (EUR\u00a0322\u00a0million in 2022). This decrease mainly reflects the lower dividends received from\u00a0adidas, as well as the decrease of Mowi\u2019s contribution as a consequence of the sales of the position in 2022 and 2023.
3.2\tFair value and changes
The investments in listed companies are valued on the basis of the share price at the reporting date. The investments in unlisted companies are valued on a quarterly basis at their fair value in line with the recommendations of the International Private Equity and Venture Capital Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d). Recent investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of their fair values. Changes in the fair value are recognized in the revaluation reserves (see Note 3.3.).
Shares in \u201cFunds\u201d comprising 468 Capital II, Alto Capital V, Apheon opseo Long Term Value Fund, Apheon SVT Long Term Value Fund, BDT Capital Partners Fund II, Carlyle International Energy Partners II, C2 Capital Global Export-to-China Fund, E.C.B. (Bastille)-Telenco, EC IV Invest, Eight Partners Worldwide, Fonds F2E, Globality, Griffin, HCM IV, HCM V, HCM S11A (Transcarent), HCM S3C (Commure), Iceberg Data Lab, Iconiq VII, Illumio, Innovius Capital Fund, Kartesia Credit Opportunities III, IV and V, KKR Azur Co-invest, KKR Rainbow Co-Invest (Asset), KKR Sigma Co-Invest II, Klarna Holding, Marcho Partners, Marcho Partners Long, Cepsa, M\u00e9rieux Participations I, Predirec ABL-3 (Part B), PrimeStone, Sagard, Sagard II, Sagard 3, Sagard 4, Sagard NewGen,Sagard NewGen Pharma, Sagard Sant\u00e9 Animale, Sagard Testing, Sagard Business Intelligence, Sapphire (proALPHA), Sienna Levier, Sienna Rendement Avenir IV, Sienna Social Impact, Sienna Venture Capital Startup Nation, Sienna Sustainable Infra Debt\u00a0III, South Park Commons Seed Fund II, South Park Commons Opportunities Fund II, Stripes VI (A) and others are revalued at their fair value, as notably determined by the managers of these funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss) (see Note 7).
Of which: | ||||||||||||
In EUR\u00a0million | December 31, 2022 | Acquisitions | Disposals/Reimburse-ments | Change in fair value | Other | December 31, 2023 | Holding | Imerys | Canyon | Affidea | Sanoptis | GBL Capitaland SIM |
Investments with changes in fair value through equity | 11,110.2 | 643.3 | (1,075.8) | (377.5) | 0.0 | 10,300.3 | 10,300.3 | - | - | - | - | - |
SGS | 3,126.6 | 33.3 | - | (324.9) | - | 2,835.0 | 2,835.0 | - | - | - | - | - |
Pernod Ricard | 3,266.2 | - | (23.6) | (494.1) | - | 2,748.5 | 2,748.5 | - | - | - | - | - |
adidas | 1,748.1 | - | - | 777.6 | - | 2,525.7 | 2,525.7 | - | - | - | - | - |
Umicore | 1,346.5 | - | - | (369.6) | - | 976.9 | 976.9 | - | - | - | - | - |
Concentrix + Webhelp | - | 609.9 | - | 169.8 | - | 779.8 | 779.8 | - | - | - | - | - |
Voodoo | 273.0 | - | - | 14.2 | - | 287.2 | 287.2 | - | - | - | - | - |
Ontex | 102.7 | - | - | 22.5 | - | 125.1 | 125.1 | - | - | - | - | - |
TotalEnergies | 15.7 | - | - | 0.8 | 0.0 | 16.5 | 16.5 | - | - | - | - | - |
GEA | 434.0 | - | (400.9) | (28.9) | - | 4.2 | 4.2 | - | - | - | - | - |
Holcim | 639.7 | - | (488.1) | (151.6) | - | - | - | - | - | - | - | - |
Mowi | 156.7 | - | (163.2) | 6.5 | - | - | - | - | - | - | - | - |
Other | 1.2 | 0.0 | - | 0.2 | - | 1.4 | 1.4 | - | - | - | - | - |
Investments with changes in fair value through profit or loss | 2,054.2 | 347.9 | (270.5) | 187.6 | (14.6) | 2,304.6 | - | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 |
Co-investments/Funds | 2,030.9 | 343.5 | (266.3) | 187.6 | (27.0) | 2,268.6 | - | - | - | - | - | 2,268.6 |
Other | 23.3 | 4.4 | (4.2) | - | 12.4 | 35.9 | - | 0.2 | 8.6 | 3.0 | 1.7 | 22.3 |
Fair value | 13,164.4 | 991.2 | (1,346.3) | (189.9) | (14.6) | 12,604.8 | 10,300.3 | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 |
Of which: | |||||||||||||
In EUR\u00a0million | December 31, 2021 | Acquisitions | Disposals/Reimburse-ments | Change in fair value | Other | December 31, 2022 | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM |
Investments with changes in fair value through equity | 15,789.2 | 0.7 | (759.3) | (3,920.4) | 0.0 | 11,110.2 | 11,110.2 | - | - | - | - | - | - |
SGS | 4,207.3 | - | (87.6) | (853.6) | - | 3,266.2 | 3,266.2 | - | - | - | - | - | - |
Pernod Ricard | 4,223.4 | - | - | (1,096.8) | - | 3,126.6 | 3,126.6 | - | - | - | - | - | - |
adidas | 3,472.5 | - | - | (1,724.5) | - | 1,748.1 | 1,748.1 | - | - | - | - | - | - |
Umicore | 1,402.6 | - | - | (56.1) | - | 1,346.5 | 1,346.5 | - | - | - | - | - | - |
Holcim | 592.3 | - | - | 47.4 | - | 639.7 | 639.7 | - | - | - | - | - | - |
GEA | 546.3 | - | - | (112.4) | - | 434.0 | 434.0 | - | - | - | - | - | - |
Voodoo | 266.0 | 0.3 | - | 6.7 | - | 273.0 | 273.0 | - | - | - | - | - | - |
Mowi | 756.9 | - | (436.8) | (163.4) | - | 156.7 | 156.7 | - | - | - | - | - | - |
Ontex | 115.0 | - | - | (12.3) | - | 102.7 | 102.7 | - | - | - | - | - | - |
TotalEnergies | 11.9 | - | - | 3.7 | 0.0 | 15.7 | 15.7 | - | - | - | - | - | - |
Other | 194.9 | 0.4 | (234.9) | 40.7 | - | 1.2 | 1.2 | - | - | - | - | - | - |
Investments with changes in fair value through profit or loss | 2,385.7 | 491.9 | (328.5) | (487.1) | (7.7) | 2,054.2 | - | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 |
Funds | 2,385.7 | 473.1 | (328.5) | (487.1) | (12.3) | 2,030.9 | - | - | - | - | - | - | 2,030.9 |
Other | 0.0 | 18.7 | (0.0) | - | 4.6 | 23.3 | - | 2.3 | 0.0 | - | 1.0 | 2.3 | 17.6 |
Fair value | 18,174.9 | 492.6 | (1,087.8) | (4,407.5) | (7.7) | 13,164.4 | 11,110.2 | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 |
3.3\tRevaluation reserves
These reserves include the changes in the fair value of other equity investments whose changes in fair value are recorded through equity.
In 2023, the disposals of the remaining stakes in Holcim and Mowi, the partial disposal of Pernod Ricard and the disposal of the securities underlying the exchangeable bonds in GEA shares (matured in December\u00a02023) resulted in a reclassification to retained earnings\u00a0of\u00a0EUR\u00a0-\u00a045\u00a0million, EUR\u00a05\u00a0million, EUR\u00a0-\u00a087\u00a0million and EUR\u00a036\u00a0million respectively. In 2022, following\u00a0the\u00a0partial disposals of Mowi and Pernod\u00a0Ricard, the cumulated revaluation reserves of EUR\u00a075\u00a0million and EUR\u00a0297\u00a0million respectively were reclassified to retained earnings.
In EUR\u00a0million | SGS | Pernod Ricard | adidas | Umicore | Mowi | Holcim | GEA | Concentrix + Webhelp | Voodoo | Ontex | TotalEnergies | Other | Total |
As of December 31, 2021 | 1,670.0 | 3,384.4 | 2,361.2 | 607.9 | 156.8 | 104.2 | 141.5 | - | (2.2) | (339.4) | 5.6 | (43.5) | 8,046.6 |
Change resulting from the change in fair value | (1,096.8) | (556.8) | (1,724.5) | (56.1) | (88.4) | 47.4 | (112.4) | - | 6.7 | (12.3) | 3.7 | (29.2) | (3,618.6) |
Transfers to consolidated reserves in case of disposal | - | (296.7) | - | - | (75.0) | - | - | - | - | - | - | 69.9 | (301.8) |
As of December 31, 2022 | 573.1 | 2,530.8 | 636.7 | 551.8 | (6.5) | 151.6 | 29.2 | - | 4.5 | (351.7) | 9.3 | (2.7) | 4,126.1 |
Change resulting from the change in fair value | (324.9) | (407.2) | 777.6 | (369.6) | 1.3 | (106.2) | (64.6) | 169.8 | 14.2 | 22.5 | 0.8 | 0.2 | (285.9) |
Transfers to consolidated reserves in case of disposal | - | (86.9) | - | - | 5.2 | (45.4) | 35.6 | - | - | - | - | - | (91.6) |
As of December 31, 2023 | 248.2 | 2,036.8 | 1,414.4 | 182.2 | - | - | 0.2 | 169.8 | 18.8 | (329.3) | 10.1 | (2.5) | 3,748.7 |
Note 12Other non-current assets
In EUR\u00a0million | 2023 | 2022 |
Non-current financial assets | 600.9 | 75.7 |
Derivative financial instruments - Hedging | 0.2 | 9.6 |
Derivative financial instruments - Held for trading | 27.0 | - |
Long-term advance payments, loans and deposits | 563.7 | 43.6 |
Other | 10.0 | 22.5 |
Non-current non-financial assets | 41.9 | 57.2 |
Assets related to pension plans | 1.0 | 17.1 |
Other | 40.8 | 40.1 |
Total\u00a0 | 642.8 | 132.9 |
Of which: Holding | 520.7 | 0.6 |
Imerys | 41.5 | 54.9 |
Webhelp | - | 28.0 |
Canyon | 2.1 | 13.1 |
Affidea | 10.7 | 4.8 |
Sanoptis | 9.9 | 6.2 |
GBL Capital and SIM | 57.9 | 25.4 |
The heading \u201cLong-term advance payments, loans and deposits\u201d mainly includes, as at December\u00a031, 2023, the Concentrix note with maturity in September 2025 for a nominal amount of EUR\u00a0493\u00a0million and bearing a facial yearly interest rate of 2.00%.
Note 15Trade receivables
In EUR\u00a0million | 2023 | 2022 |
Trade receivables | 619.1 | 1,132.6 |
Writedowns of doubtful receivables | (18.5) | (23.8) |
Net total | 600.6 | 1,108.7 |
Of which: Holding | 1.5 | 0.0 |
Imerys | 398.5 | 489.9 |
Webhelp | - | 454.1 |
Canyon | 2.9 | 3.3 |
Affidea | 113.7 | 88.3 |
Sanoptis | 71.7 | 53.8 |
GBL Capital and SIM | 12.3 | 19.3 |
Trade receivables are mainly related to Imerys. Imerys has set up a one-off factoring program for the first time in 2023 within the PM Americas, PM\u00a0EMEA & APAC and RAC sectors. Within this framework, Imerys retains an ongoing involvement in the assigned receivables through the risk of\u00a0dilution, as well as through the obligation to return cash flows received from customers to the factor. The risks and rewards of the assigned receivables have been substantially transferred to the factor, and these receivables have been derecognized. The carrying amount of these derecognized receivables is EUR\u00a062\u00a0million at December\u00a031, 2023 (EUR\u00a06\u00a0million at December\u00a031, 2022).
Trade receivables do not bear interest and generally have a 30 to 90-day maturity. At the reporting date, some of the trade receivables detailed below may be due without being impaired, for example when covered by a credit insurance contract or a guarantee.
In EUR\u00a0million | 2023 | 2022 |
Delay of no more than 1 month | 124.7 | 171.8 |
Delay of 1 to 3 months | 39.8 | 53.1 |
Delay of more than 3 months | 38.0 | 57.1 |
Total trade receivables due and not written down | 202.5 | 281.9 |
Trade receivables not due and trade receivables due and written down | 398.1 | 826.8 |
Total trade receivables, net | 600.6 | 1,108.7 |
The following table shows the change in write-downs over several years:
In EUR\u00a0million | 2023 | 2022 |
Writedowns of receivables at 1 January | (23.8) | (40.5) |
Writedowns over the year | (9.5) | (2.1) |
Utilizations | 1.6 | 1.6 |
Reversals of writedowns | 11.2 | 9.2 |
Foreign currency translation adjustments/other | 2.0 | 8.0 |
Writedowns of receivables at 31 December | (18.5) | (23.8) |
Note 16Trading financial assets
In EUR\u00a0million | 2023 | 2022 |
Money market funds | 712.4 | 841.4 |
Other trading assets | 673.1 | 28.6 |
Total | 1,385.6 | 870.0 |
Of which: Holding | 705.5 | 839.8 |
Imerys | 671.9 | 1.9 |
Webhelp | - | 12.0 |
Canyon | 8.1 | 16.3 |
Affidea | - | - |
Sanoptis | - | - |
GBL Capital and SIM | 0.0 | 0.0 |
In EUR\u00a0million | 2023 | 2022 |
Money market funds | 712.4 | 841.4 |
Other trading assets | 673.1 | 28.6 |
Total | 1,385.6 | 870.0 |
Of which: Holding | 705.5 | 839.8 |
Imerys | 671.9 | 1.9 |
Webhelp | - | 12.0 |
Canyon | 8.1 | 16.3 |
Affidea | - | - |
Sanoptis | - | - |
GBL Capital and SIM | 0.0 | 0.0 |
Note 17Cash and debt
17.1\tCash and cash equivalents
In EUR\u00a0million | 2023 | 2022 |
Current accounts | 506.7 | 1,249.0 |
Term deposits | 638.3 | 473.0 |
Treasury bonds and treasury notes | 53.0 | 46.2 |
Total | 1,198.0 | 1,768.3 |
Of which: Holding | 378.5 | 544.0 |
Imerys | 585.0 | 620.2 |
Webhelp | - | 340.0 |
Canyon | 16.7 | 25.0 |
Affidea | 78.0 | 63.0 |
Sanoptis | 52.6 | 88.0 |
GBL Capital and SIM | 87.2 | 88.0 |
As of December\u00a031, 2023 and 2022, cash was completely held in current accounts, fixed-term deposits and treasury notes with various financial institutions.
17.2Financial liabilities
In EUR\u00a0million | 2023 | 2022 |
Non-current financial liabilities | 7,177.2 | 8,714.7 |
Bonds (GBL)\u00a0 | 1,984.5 | 1,985.2 |
Convertible bonds (GBL) | 499.8 | 499.7 |
Exchangeable bonds (GBL) | 486.3 | 479.6 |
Bonds (Imerys) | 1,710.7 | 1,705.3 |
Bank borrowings (Webhelp) | - | 1,738.1 |
Bank borrowings (Canyon) | 225.3 | 225.7 |
Bank borrowings (Affidea) | 741.9 | 572.3 |
Bank borrowings (Sanoptis) | 899.0 | 602.0 |
Bank borrowings (GBL Capital) | - | 89.7 |
Lease liabilities | 574.6 | 738.8 |
Other non-current financial liabilities\u00a0 | 55.0 | 78.2 |
Current financial liabilities | 1,173.7 | 1,654.6 |
Bonds (GBL)\u00a0 | 499.8 | - |
Exchangeable bonds (GBL) | - | 447.4 |
Bank borrowings (GBL) | - | 535.3 |
Bank borrowings (Imerys) | 23.5 | 437.6 |
Bonds (Imerys) | 500.0 | - |
Lease liabilities | 108.8 | 168.9 |
Other current financial liabilities | 41.7 | 65.4 |
Bonds (issued by GBL)
On May 9, 2023, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 10-year maturity and a coupon of 4.000%. The carrying amount of this debt is EUR\u00a0496\u00a0million as of December\u00a031, 2023.
On August 30, 2022, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 7-year maturity and a coupon of 3.125%. The carrying amount of this debt is EUR\u00a0495\u00a0million as of December\u00a031, 2023.
On January\u00a021, 2021, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 10-year maturity and a coupon of 0.125%. The carrying amount of this debt is EUR\u00a0495\u00a0million as of December\u00a031, 2023.
On June 19, 2018, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 7-year maturity and a coupon of 1.875%. The carrying amount of this debt is\u00a0EUR\u00a0499\u00a0million as of December\u00a031, 2023.
During the first semester of 2017, GBL issued an institutional bond of EUR\u00a0500\u00a0million, with a coupon of 1.375% and maturing on May 23, 2024. The\u00a0carrying amount of this debt is EUR\u00a0500\u00a0million as of December\u00a031, 2023.
These issuances are intended to cover the group\u2019s general corporate purposes and lengthen the weighted average maturity of the gross debt.
Bonds convertible into GBL shares (GBL)
On March 23, 2021, GBL announced the placement by its fully-owned subsidiary Sagerpar SA (the \u201cIssuer\u201d) of EUR\u00a0500\u00a0million of bonds convertible into existing ordinary shares of GBL (the \u201cShares\u201d). The bonds are fully guaranteed by GBL (the \u201cGuarantor\u201d). This issue initially relates to approximately 4.3\u00a0million treasury shares.
The bonds do not bear interests and had at placement a maturity of 5 years (April 1, 2026), subject to early redemption. The bonds have been issued at an issue price of 101.25% of their principal amount and, unless previously redeemed, converted or purchased and cancelled, the bonds will be redeemed in cash at their principal amount at maturity (subject to the Issuer\u2019s share redemption option), which corresponds to an annual yield to maturity of - 0.25%. The initial conversion price of the bonds has been set at EUR\u00a0117.4928. The effective interest rate (including transaction costs allocated to the debt) stands at 0.02%.
The Issuer will have the option to redeem all, but not some only, of the bonds for the time being outstanding at their principal amount, at any time on or after April 16, 2024 provided that the volume-weighted average price of one Share on Euronext Brussels shall have exceeded 130% of the conversion price on each of not less than 20 trading days in any period of 30 consecutive trading days. The Issuer will have a share redemption option to deliver Shares and, as the case may be, an additional amount in cash upon redemption of the Bonds on the maturity date.
Bondholders may request the conversion of their bonds at any time since April 1, 2021 until (and including) the 45th Brussels business day (included) prior to the maturity date, subject to the Issuer\u2019s option to satisfy the conversion rights in cash, shares or a combination thereof. If the Issuer elects to satisfy conversion rights in Shares, it intends to deliver existing Shares which the Issuer holds on behalf of the Guarantor as treasury shares.
The bonds are admitted to trading on the open market (Freiverkher) of the Frankfurt Stock Exchange. The carrying amount of these bonds (excluding the option) is EUR\u00a0500\u00a0million as of December\u00a031, 2023. The option is assessed at fair value on the reporting date (EUR\u00a00\u00a0million as of December\u00a031,\u00a02023, shown under \u201cOther current financial liabilities\u201d).
Bonds exchangeable into Pernod Ricard shares (GBL)
On November 29, 2022, GBL (the \u201cIssuer\u201d) issued bonds exchangeable into existing shares of Pernod Ricard SA (\u201cPernod Ricard\u201d) for an amount of EUR\u00a0500\u00a0million. The bonds initially related to 2.0\u00a0million Pernod Ricard shares representing approximately 1% of its share capital. The bonds have, at their issuance, a maturity of 3 years (November 29, 2025), except in case of early redemption, exchange or purchase and cancellation. The bonds carry a coupon of 2.125% per annum. The bonds were issued at an issue price of 100% of their principal amount and, unless previously redeemed, exchanged, or purchased and cancelled, will be redeemed at their principal amount at maturity on November 29, 2025.
The Issuer will have the option to redeem all, but not only some, of the bonds, at their principal amount plus accrued and unpaid interest until the relevant date fixed for redemption (i) at any time on or after the date falling 2 years and 21 days after the Issue Date, provided that the value of the exchange property (being initially only Pernod Ricard shares) per bond attributable to EUR\u00a0100,000 in principal amount of bonds shall have exceeded EUR\u00a0130,000 on each of not less than 20 trading days in any period of 30 consecutive trading days; (ii) at any time, if 20% or less of the principal amount of the bonds originally issued remain outstanding; or (iii) in the event of an offer or scheme relating to the predominant equity share capital comprised in the exchange property, where the consideration as a result of such offer or scheme consists wholly of cash, all as described in the terms and conditions of the bonds.
Bondholders may request the exchange of their bonds for exchange property at any time since January\u00a09, 2023 until 40 Brussels business days before the maturity date, subject to the option of GBL to satisfy exchange rights in cash, exchange property or a combination thereof.
The bonds are admitted to trading on the open market (Freiverkher) of the Frankfurt Stock Exchange. The carrying amount of these bonds (excluding the option) is EUR\u00a0486\u00a0million as of December\u00a031, 2023. The option is assessed at fair value on the reporting date (EUR\u00a02\u00a0million as of December\u00a031,\u00a02023, shown under \u201cOther current financial liabilities\u201d).
Bonds exchangeable into GEA shares (GBL)
The bonds exchangeable into GEA shares matured on December\u00a029, 2023. They were redeemed in full in cash.
Bank borrowings (GBL)
During the second half of 2022, GBL entered into forward sales contracts with prepayment for 13.2\u00a0million Holcim shares, maturing in May 2023, and received EUR\u00a0538\u00a0million in cash. As of December\u00a031, 2022, the carrying amount of this debt was of EUR\u00a0535\u00a0million and the value of the derivative attached to these transactions, recorded under \u201cOther current liabilities\u201d, amounted to EUR\u00a077\u00a0million.
Bonds (Imerys)
Imerys further underscored its commitment in its sustainable development policy by tying its financing strategy to its environmental ambition.
Therefore, on November 29, 2023, Imerys completed an issue of bonds indexed to its sustainable development objectives (Sustainability-Linked Bonds) for a principal amount of EUR\u00a0500\u00a0million. These bonds, due to mature on November 29, 2029, bear an annual coupon of 4.75% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. These bonds, due to mature on November 29, 2029, bear an annual coupon of 4.75% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. Issued in accordance with the Sustainability-Linked Bond Principles as published by the International Capital Markets Association (ICMA), these instruments, through their framework, are indexed to a target to reduce greenhouse gas emissions by 32.7% by 2028 (tCO2e) from a 2021 base year.
This includes Scope 1 emissions (direct emissions from sources owned or controlled by Imerys) and Scope 2 emissions (indirect emissions from the production of electricity, heat or steam imported or purchased by Imerys). Failure to comply with these targets at December\u00a031, 2028 could lead to the payment of penalties corresponding to 75 basis points of the principal amount for the 2028 target.
On May 14, 2021, the group also completed an issue of bonds indexed to its sustainable development objectives (Sustainability-Linked Bonds) for a principal amount of EUR\u00a0300\u00a0million. These bonds, due to mature on July 15, 2031, bear an annual coupon of 1.00% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. Issued in accordance with the Sustainability-Linked Bond Principles as published by the International Capital Markets Association (ICMA), these instruments are indexed to a target to reduce greenhouse gas emissions by 22.9% in 2025 and 36.0% in 2030 in relation to the revenue (tCO2e/million euros) considering 2018 as the base year, as approved by the Science Based Target initiative (\u201cSBTi\u201d). Failure to achieve these targets at December\u00a031, 2025 and/or at December\u00a031, 2030 could lead to the payment of penalties corresponding to 25\u00a0basis points of the principal amount for the 2025 target and/or 50 basis points of the principal amount for the 2030 target. At\u00a0December\u00a031, 2023, Imerys had reduced the metric tons of CO2emitted per\u00a0million euros of revenue by 30.6% compared with 2018 levels (29.6% since 2018 at December\u00a031,\u00a02022).
The details of the bond issued by Imerys as of December\u00a031, 2023 are mentioned below:
Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount | |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 500.0 | 2.00% | 2.13% | Listed | 12/10/2024 | 492.6 | 500.1 |
EUR | 600.0 | 1.50% | 1.63% | Listed | 01/15/2027 | 577.6 | 606.5 |
EUR | 300.0 | 1.88% | 1.92% | Listed | 03/31/2028 | 284.2 | 303.8 |
EUR | 500.0 | 4.75% | 4.82% | Listed | 11/29/2029 | 516.0 | 500.4 |
EUR | 300.0 | 1.00% | 1.07% | Listed | 07/15/2031 | 242.3 | 300.0 |
Total | 2,112.7 | 2,210.8 |
The details of the bond issued by Imerys as of December\u00a031, 2022 are mentioned below:
Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount | |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 500.0 | 2.00% | 2.13% | Listed | 12/10/2024 | 486.4 | 499.1 |
EUR | 600.0 | 1.50% | 1.63% | Listed | 01/15/2027 | 549.2 | 604.4 |
EUR | 300.0 | 1.88% | 1.92% | Listed | 03/31/2028 | 269.0 | 303.2 |
EUR | 300.0 | 1.00% | 1.07% | Listed | 07/15/2031 | 208.3 | 298.6 |
Total | 1,512.9 | 1,705.3 |
Bank debts (Imerys)
Those debts coming from Imerys include as of December\u00a031, 2023, EUR\u00a018\u00a0million of short-term borrowings and EUR\u00a05\u00a0million of bank overdrafts (EUR\u00a0434\u00a0million and EUR\u00a04\u00a0million respectively as of December\u00a031, 2022).
Bank debts (Webhelp)
In 2022, the bank debts coming from Webhelp mainly included the \u201csenior credit agreement\u201d concluded in 2019 and its extension for the financing of the acquisition of OneLink concluded on July 30, 2021:
As of December 31, 2022 | Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 1,020.0 | 3.00% | 4.91% | Unlisted | 11/18/2026 | 1,020.0 | 1,007.0 |
GBP | 125.0 | 4.00% | 7.80% | Unlisted | 11/18/2026 | 140.9 | 139.0 |
EUR | 285.6 | 3.75% | 5.60% | Unlisted | 11/18/2026 | 285.6 | 281.0 |
USD | 350.0 | 4.50% | 8.27% | Unlisted | 11/18/2026 | 323.2 | 317.0 |
Total | 1,769.7 | 1,744.0 |
Bank debts (Canyon)
This item includes long-term bank loans of Canyon.
Bank loans (Affidea)
This item includes Affidea\u2019s long-term bank debt. It is mainly composed of two bank loans of EUR\u00a0600\u00a0million and EUR\u00a0100\u00a0million, bearing a nominal interest rate of 5.00% each and maturing on July 22, 2029. Their total carrying amount is EUR\u00a0736\u00a0million at December\u00a031, 2023.
Bank loans (Sanoptis)
This item includes the long-term bank debt of Sanoptis.
Bank loans (GBL Capital)
This caption includes the different bank loans of the operational subsidiaries of AMB III.
Lease liabilities
These liabilities mature in 2024 for a total of EUR\u00a0109\u00a0million, between 2025 and 2029 for EUR\u00a0309\u00a0million and EUR\u00a0267\u00a0million thereafter.
Other current financial liabilities
In 2022, this item mainly included Webhelp\u2019s current portion of long-term debt.
Undrawn credit lines
As of December\u00a031, 2023, the group had undrawn credit lines with various financial institutions totaling EUR\u00a03,909\u00a0million (EUR\u00a04,336\u00a0million as of December\u00a031, 2022). These credit facilities are available mainly to GBL and Imerys in the amounts of EUR\u00a02,450\u00a0million and EUR\u00a01,010\u00a0million respectively (EUR\u00a02,450\u00a0million and EUR\u00a01,010\u00a0million as of December\u00a031, 2022).
With regards to GBL, all credit lines mature over the 2027 - 2028 period. Committed credit lines do not have financial covenants, meaning that, under its credit contracts, GBL has no obligations in terms of compliance with financial ratios.
17.3\tChange of financial liabilities
The table below mentions the reconciliation in 2023 and 2022 between the financial debts included in the consolidated balance sheet and the amounts from the consolidated statement of cash flows:
In EUR\u00a0million | As of January 1, 2023 | Cash flow variation | Acquisitions/sales of subsidiaries\u00a0 | Impact of exchange rates change | Other movements | As of December 31, 2023 |
Financial liabilities - Non-current liabilities | 8,714.7 | 940.6 | (14.1) | (2.3) | (2,461.7) | 7,177.2 |
Financial liabilities - Current liabilities | 1,654.6 | (421.3) | (1.6) | 1.8 | (59.9) | 1,173.7 |
Total | 10,369.3 | 519.3 | (15.7) | (0.5) | (2,521.6) | 8,350.9 |
In EUR\u00a0million | ||||||
As of January 1, 2022 | Cash flow variation | Acquisitions/sales of subsidiaries\u00a0 | Impact of exchange rates change | Other movements | As of December 31, 2022 | |
Financial liabilities - Non-current liabilities | 6,616.2 | 1,185.1 | 1,260.6 | 32.7 | (379.9) | 8,714.7 |
Financial liabilities - Current liabilities | 1,037.5 | (49.5) | 50.2 | (9.0) | 625.4 | 1,654.6 |
Total | 7,653.7 | 1,135.6 | 1,310.8 | 23.8 | 245.5 | 10,369.3 |
\u201cOther movements\u201d in 2023 resulted mainly from the reclassification of Webhelp\u2019s debt to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation) and the repayment of GBL\u2019s bank debt by Holcim shares. In 2022, these movements were mainly due to reclassifications between non-current and current liabilities, as well as the recognition of lease liabilities.
The change in cash and cash equivalents shown in the above table is reconciled with the consolidated statement of cash flows as follows:
In EUR\u00a0million | As of December 31, 2023 | As of December 31, 2022 |
Cash flow variation | 519.3 | 1,135.6 |
Of which: proceeds from financial liabilities | 3,291.1 | 2,191.7 |
repayments of financial liabilities | (2,771.8) | (1,056.1) |
17.4\tResidual contractual maturities of financial liabilities
In EUR\u00a0million | 2024 | 2025-2029 | 2030 and beyond | |||
As of December 31, 2023 | Principal | Interests | Principal | Interests | Principal | Interests |
Non-current financial liabilities | - | 157.7 | 3,456.8 | 773.8 | 3,723.7 | 212.1 |
Other non-current financial liabilities | - | - | 796.1 | 6.6 | 285.6 | - |
Non-current derivative financial instruments | - | - | 8.6 | - | - | - |
Current financial liabilities | 1,155.2 | 70.9 | - | - | - | - |
Trade payables | 571.5 | - | - | - | - | - |
Current derivative financial instruments | 46.2 | - | - | - | - | - |
Other current financial liabilities | 545.3 | 0.2 | - | - | - | - |
Total | 2,318.2 | 228.8 | 4,261.5 | 780.4 | 4,009.3 | 212.1 |
In EUR\u00a0million | 2023 | 2024-2028 | 2029 and beyond | |||
As of December 31, 2022 | Principal | Interests | Principal | Interests | Principal | Interests |
Non-current financial liabilities | - | 252.6 | 5,953.8 | 955.8 | 2,760.9 | 158.6 |
Other non-current financial liabilities | - | - | 1,545.2 | - | - | - |
Non-current derivative financial instruments | - | - | 92.8 | - | - | - |
Current financial liabilities | 1,654.6 | 40.9 | - | - | - | - |
Trade payables | 857.4 | - | - | - | - | - |
Current derivative financial instruments | 183.3 | - | - | - | - | - |
Other current financial liabilities | 73.7 | - | - | - | - | - |
Total | 2,769.1 | 293.5 | 7,591.8 | 955.8 | 2,760.9 | 158.6 |
Note 18Other current assets
In EUR\u00a0million | 2023 | 2022 |
Current financial assets | 60.3 | 90.9 |
Derivative financial instruments held for trading | 25.5 | 17.4 |
Derivative financial instruments - Hedging | 13.7 | 35.5 |
Other | 21.1 | 38.0 |
Current non financial assets | 377.1 | 498.7 |
Tax assets other than those related to income taxes | 101.1 | 110.7 |
Other taxes and VAT to be recovered | 124.1 | 201.6 |
Deferred expenses | 57.7 | 85.1 |
Other | 94.2 | 101.2 |
Total | 437.4 | 589.5 |
Of which: Holding | 39.4 | 44.0 |
Imerys | 253.7 | 235.6 |
Webhelp | - | 179.4 |
Canyon | 29.9 | 45.7 |
Affidea | 50.9 | 26.8 |
Sanoptis | 49.2 | 29.2 |
GBL Capital and SIM | 14.4 | 28.8 |
Note 22Other non-current liabilities
In EUR\u00a0million | 2023 | 2022 |
Non-current financial liabilities | 423.1 | 1,638.0 |
Debt on minority shareholders | 367.8 | 1,512.6 |
Derivative financial instruments held for trading | 9.7 | 88.7 |
Derivative financial instruments - Hedging | 6.3 | 4.1 |
Other | 39.3 | 32.6 |
Non-current non-financial liabilities | 49.3 | 486.8 |
Debt on minority shareholders | 2.0 | 445.3 |
Liabilities related to cash-settled share-based payments | 4.9 | 8.5 |
Other | 42.4 | 33.0 |
Total | 472.4 | 2,124.8 |
Of which: Holding | 7.2 | 45.4 |
Imerys | 18.7 | 24.1 |
Webhelp | - | 1,732.1 |
Canyon | - | - |
Affidea | 56.2 | 28.4 |
Sanoptis | 355.5 | 262.2 |
GBL Capital and SIM | 34.8 | 32.6 |
As of December\u00a031, 2023, the debt on minority shareholders is mainly related to Sanoptis (EUR\u00a0312\u00a0million as of December\u00a031, 2023 and EUR\u00a0250\u00a0million as of December\u00a031, 2022). This represents the discounted value as at the reporting date based on the expected individual exercise dates of the put options of the minority shareholders.
The Sanoptis business model specifies, among other things, that the lead doctors in their clinics do not leave the company as shareholders or doctors in the event of a sale of clinics to Sanoptis. The remaining shares held by the doctors are subject to specific minimum holding periods. Call and put options on such shares are negotiated between Sanoptis and the sellers at the time of acquisitions, so that after expiry of the holding periods and upon fulfilment of certain contractually agreed conditions, the remaining shares of the minority shareholders can be sold to Sanoptis by executing the put options at purchase prices determined at the time of the original transactions. The sales price is generally determined based on the average EBITDA of a specific period under review for the target company and an individually agreed multiple on this.
As of December\u00a031, 2022, the debt on minority shareholders was mainly related to Webhelp. The 2 founders and some members of the staff of the Webhelp group were minority shareholders of Webhelp and hold put options towards Sapiens S\u00e0rl (sub-subsidiary of GBL and dedicated investment vehicle of the Webhelp group) on all their shares, which could be exercised at certain predefined periods. Consequently, a debt on minority shareholders was recognized on the balance sheet for a total amount, as of December\u00a031, 2022, of EUR\u00a01,675\u00a0million, out of which:
the debt towards the founders (EUR\u00a01,113\u00a0million as of December 31, 2022, included under \u201cNon-current financial liabilities\u201d), with changes in value recorded under \u201cFinancial income and expenses from operating activities\u201d ;
the debt towards members of the staff (EUR\u00a0563\u00a0million as of December 31, 2022, included under \u201cNon-current financial liabilities\u201d for a part and \u201cNon-current non-financial liabilities\u201d for another part), with changes in value recorded under \u201cOther operating income and expenses from operating activities\u201d.
As a consequence of the sale of Webhelp as of September 25, 2023, the debt towards the founders and the members of the staff was extinguished, without any impact on GBL\u2019s cash, at the closing of the transaction. The impact of the reversal was included in the gain on deconsolidation of Webhelp.
Note 23Other current liabilities
In EUR\u00a0million | 2023 | 2022 |
Current financial liabilities | 122.6 | 257.0 |
Derivative financial instruments held for trading | 5.1 | 69.8 |
Derivative financial instruments - Hedging | 41.1 | 113.5 |
Other | 76.3 | 73.7 |
Current non-financial liabilities | 606.9 | 1,006.1 |
Social security liabilities | 203.0 | 344.9 |
Tax liabilities other than those related to income tax | 63.1 | 168.6 |
Other | 340.8 | 492.6 |
Total | 729.4 | 1,263.1 |
Of which: Holding | 76.0 | 153.6 |
Imerys | 396.8 | 373.3 |
Webhelp | - | 518.0 |
Canyon | 27.0 | 33.2 |
Affidea | 152.9 | 129.5 |
Sanoptis | 44.8 | 26.1 |
GBL Capital and SIM | 31.9 | 29.4 |
The other current non-financial liabilities mainly include a debt related to fixed assets at Imerys\u2019 level for EUR\u00a0109\u00a0million.
Note 26Derivative financial instruments
26.1 Fair values of short-term and long-term derivative financial instruments
The fair values of the derivative financial instruments held as of December\u00a031, 2023 and 2022 are shown in the following table:
In EUR\u00a0million | 2023 | 2022 |
Assets | 66.4 | 62.5 |
Of which non-current assets | 27.2 | 9.6 |
Of which current assets | 39.2 | 52.9 |
Composed of: | ||
Forwards, futures and currency swaps - Derivative instruments held for trading | 1.1 | 17.3 |
Forwards, futures and currency swaps - Hedging | 12.4 | 38.7 |
Interest rate hedging instruments - Derivative instruments held for trading | 24.4 | - |
Futures and commodities options - Hedging | 1.5 | 6.5 |
Call and put options on shares - Derivative instruments held for trading | 27.0 | - |
Liabilities | (62.2) | (276.1) |
Of which non-current liabilities | (16.0) | (92.8) |
Of which current liabilities | (46.2) | (183.3) |
Composed of: | - | - |
Forwards, futures and currency swaps - Derivative instruments held for trading | (2.5) | (0.3) |
Forwards, futures and currency swaps - Hedging | (2.1) | (15.0) |
Interest rate hedging instruments - Derivative instruments held for trading | (7.4) | - |
Interest rate hedging instruments - Hedging | (17.5) | - |
Futures and commodities options - Hedging | (27.8) | (25.9) |
Forwards on shares - Hedging | - | (76.7) |
Call and put options on shares - Derivative instruments held for trading | (4.9) | (158.2) |
Net position | 4.2 | (213.7) |
Forwards, futures and currency swaps | 8.9 | 40.7 |
Interest rate hedging instruments | (0.5) | - |
Forwards on shares | - | (76.7) |
Futures and commodities options | (26.3) | (19.4) |
Call and put options on shares | 22.1 | (158.2) |
The following table shows the maturity of the cash flow hedge derivatives for the reporting periods ended December\u00a031, 2023 and 2022:
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 10.3 | 10.1 | 0.2 | - |
Interest rate hedging instruments | (17.5) | (11.5) | (6.0) | - |
Futures and commodities options | (26.3) | (26.0) | (0.3) | - |
Total as of December 31, 2023 | (33.5) | (27.4) | (6.1) | - |
Forwards, futures and currency swaps | 23.7 | 18.3 | 5.4 | - |
Futures and commodities options | (19.4) | (19.4) | - | - |
Forwards on shares | (76.7) | (76.7) | - | - |
Total as of December 31, 2022 | (72.4) | (77.8) | 5.4 | - |
26.2Change in fair value of derivative instruments
The following table shows the changes in the fair value of hedging derivative instruments between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative instruments - hedging | ||
As of January 1 \u2013 net derivatives position\u00a0 | (72.4) | 73.6 |
Increase (decrease) recognized in profit or loss | (20.9) | (1.7) |
Increase (decrease) recognized in shareholders' equity | 54.8 | (154.7) |
Changes in group structure/Business combinations/Other | 5.0 | 10.4 |
As of December 31 \u2013 net derivatives position | (33.5) | (72.4) |
The following table shows the changes in the fair value of derivative instruments held for trading between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative financial instruments held for trading | ||
As of January 1 \u2013 net derivatives position\u00a0 | (141.2) | (206.2) |
Increase (decrease) recognized in profit or loss | 105.0 | 98.7 |
Increase (decrease) recognized in shareholders' equity | - | - |
Changes in group structure/Business combinations/Other | 73.9 | (33.6) |
As of December 31 \u2013 net derivatives position | 37.7 | (141.2) |
26.3\tNotional underlying amounts of derivative financial instruments
In EUR\u00a0million | 2023 | 2022 |
Assets\u00a0 | 1,701.9 | 2,140.4 |
Composed of: | ||
Forwards, futures and currency swaps | 616.1 | 2,063.7 |
Interest rate hedging instruments | 978.4 | - |
Futures and commodities options | 80.4 | 76.7 |
Call and put options on shares | 27.0 | - |
Liabilities | 3,548.2 | 4,043.6 |
Composed of: | ||
Forwards, futures and currency swaps | 1,292.9 | 1,715.9 |
Interest rate hedging instruments | 1,070.6 | - |
Forwards on shares | - | 537.6 |
Futures and commodities options | 24.8 | 21.7 |
Call and put options on shares | 1,159.9 | 1,768.4 |
26.4\tMaturity of notional underlying amounts of derivative financial instruments
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 1,909.0 | 1,898.4 | 10.6 | - |
Interest rate hedging instruments | 2,048.9 | 1,428.9 | 620.0 | - |
Futures and commodities options | 105.2 | 101.2 | 4.0 | - |
Call and put options on shares | 1,186.9 | 159.9 | 1,000.0 | 27.0 |
Total as of December 31, 2023 | 5,250.0 | 3,588.4 | 1,634.6 | 27.0 |
Forwards, futures and currency swaps | 3,779.6 | 3,067.9 | 107.1 | 604.6 |
Forwards on shares | 537.6 | 537.6 | - | - |
Futures and commodities options | 98.4 | 98.4 | - | - |
Call and put options on shares | 1,768.4 | 689.6 | 1,078.8 | - |
Total as of December 31, 2022 | 6,184.0 | 4,393.5 | 1,185.9 | 604.6 |
Note 29Financial instruments
Fair value
The fair value of a financial instrument is the amount that would be received on selling the asset or paid on transferring a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is a presumption that an entity is a going concern without any intention or need to liquidate, to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Fair value is not, therefore, the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distressed sale.
To reflect the importance of inputs used when measuring at fair value, the group classifies these valuations according to a hierarchy composed of\u00a0the\u00a0following levels:
level 1: listed prices (non-adjusted) on active markets for identical assets or liabilities;
level 2: inputs, other than the listed prices included in level 1, that are observable for the asset or liability concerned, either directly (i.e., prices) or\u00a0indirectly (i.e., derived from prices); and
level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).
The group\u2019s financial instruments very largely belong to classification levels 1 and 2. The financial assets measured at level 3 fair value are not significant compared to the other asset classes (15.07% as of December\u00a031, 2023 and 12.93% as of December\u00a031, 2022).
Measurement techniques
The objective of using a valuation method is to establish what the transaction price would have been on the measurement date in an arm\u2019s-length exchange and motivated by normal business considerations.
Techniques used to measure the fair value of level 2 financial instruments:
Exchangeable or convertible bonds
The exchangeable or convertible bonds issued by the group are considered to be hybrid instruments, i.e., instruments including a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds, taking into account the risk associated with GBL (credit spread). At each reporting date, the value of the bond component is recalculated, taking into account the change in the risk-free rate and GBL\u2019s credit spread, and the difference in relation to the price of the exchangeable or convertible bond observed on the Frankfurt Stock Exchange\u2019s Euro MTF market is taken as the new value of the derivative component. The change in this value in relation to the previous reporting date is recognized in profit or loss.
Other level 2 financial instruments
The fair value of derivative instruments not associated with exchangeable or convertible bonds is taken from a model that uses observable data, in other words the quotes on the reporting date provided by third-parties operating on the financial markets. These valuations are adjusted for the counterparties\u2019 credit risk and the credit risk specific to Imerys or GBL. Accordingly, if the market value of the derivative is positive (derivative asset), its fair value incorporates the likelihood of the counterparty defaulting (Credit Value Adjustment or CVA). If the derivative\u2019s market value is negative (derivative liability), its fair value factors in the likelihood of Imerys or GBL defaulting (Debit Value Adjustment or DVA). These adjustments are measured based on the spreads of the bonds in circulation on the secondary market, as issued by Imerys, GBL and their counterparts.
Techniques used to measure the fair value of level 3 financial instruments:
Equity investments
The investments in unlisted companies are valued internally at their fair value on a quarterly basis, based on a specific valuation method or a combination of valuation methods, the specific valuations the method of combination of methods being consistent from an closing to another. Methodologies are aligned across the portfolio, though with different weights for respective methods depending on the company. Valuation are approved by the Valuation Committee of GBL and reviewed by an external advisor. Changes in the fair value of these investments are recognized in the revaluation reserves.
Investments in funds or co-investments owned by GBL Capital are revalued at their fair value, as notably determined by the managers of the funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss).
In accordance with the recommendations of the International Private Equity and Venture Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d), recent\u00a0investment, funds or co-investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of fair\u00a0value.
Analysis of financial instruments by category \u2013 balance sheets
The category, according to IFRS 9, uses the following abbreviations:
FATOCI: Financial Assets measured at fair value through Other Comprehensive Income
FATPL: Financial Assets measured at fair value through Profit or Loss
FLTPL: Financial Liabilities measured at fair value through Profit or Loss
FAAC: Financial Assets measured at Amortized Cost
FLAC: Financial Liabilities measured at Amortized Cost
HeAc: Hedge Accounting
The tables below show a comparison of the book value and the fair value of the financial instruments as of December\u00a031, 2023 and as of December\u00a031,\u00a02022, as well as the fair value hierarchy. There were no significant transfers between the different levels between 2023 and 2022.
As of December 31, 2023
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,013.1 | 10,013.1 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 287.2 | 287.2 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 112.4 | 112.4 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 2,192.0 | 2,192.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 0.2 | 0.2 | Level 2 |
Derivative instruments - Other | FATPL | 27.0 | 27.0 | Level 2 |
Other financial assets | FAAC | 573.7 | 573.7 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 600.6 | 600.6 | Level 2 |
Trading financial assets | FATPL | 1,385.6 | 1,385.6 | Level 1 |
Cash and cash equivalents | FAAC | 1,198.0 | 1,198.0 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 13.7 | 13.7 | Level 2 |
Derivative instruments - Other | FATPL | 25.5 | 25.5 | Level 2 |
Other financial assets | FAAC | 21.1 | 21.1 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 7,177.2 | 6,979.8 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 6.3 | 6.3 | Level 2 |
Derivative instruments - Other | FLTPL | 9.7 | 9.7 | Level 2 |
Other non current liabilities | FLAC | 407.1 | 407.1 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,173.7 | 1,173.7 | Level 2 |
Trade payables | FLAC | 571.5 | 571.5 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 41.1 | 41.1 | Level 2 |
Derivative instruments - Other | FLTPL | 5.1 | 5.1 | Level 2 |
Other current liabilities | FLAC | 76.3 | 76.3 | Level 2 |
As of December 31, 2022
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,837.2 | 10,837.2 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 273.0 | 273.0 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 127.3 | 127.3 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 1,927.0 | 1,927.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 9.6 | 9.6 | Level 2 |
Other financial assets | FAAC | 66.1 | 66.1 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 1,108.7 | 1,108.7 | Level 2 |
Trading financial assets | FATPL | 870.0 | 870.0 | Level 1 |
Cash and cash equivalents | FAAC | 1,768.3 | 1,768.3 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 35.5 | 35.5 | Level 2 |
Derivative instruments - Other | FATPL | 17.4 | 17.4 | Level 2 |
Other financial assets | FAAC | 38.0 | 38.0 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 8,714.7 | 8,379.3 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 4.1 | 4.1 | Level 2 |
Derivative instruments - Other | FLTPL | 88.7 | 88.7 | Level 2 |
Other non current liabilities | FLAC | 1,545.2 | 1,545.2 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,654.6 | 1,675.9 | Level 2 |
Trade payables | FLAC | 857.4 | 857.4 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 113.5 | 113.5 | Level 2 |
Derivative instruments - Other | FLTPL | 69.8 | 69.8 | Level 2 |
Other current liabilities | FLAC | 73.7 | 73.7 | Level 2 |
Analysis of financial instruments by category \u2013 income statements
The tables hereafter present the income and expenses before income taxes recognized in the income statement by categories of financial instruments. These tables analyze the income and expense lines containing financial instruments according to categories presented in columns. These distinguish, on the one hand, the categories applied by default to any item excluding hedge accounting and, on the other hand, the categories applied to any item falling within the scope of hedge accounting.
The IFRS 9 categories of amortized cost and fair value through profit or loss apply to the majority of non-hedge accounting items. Hedge accounting items are classified according to their fair value or cash flow hedging qualifications, distinguishing the values of hedged items and hedging instruments in columns and the types of risks hedged in rows. In addition, in order to ensure reconciliation between IFRS 9 classes and financial statements, this table includes a column containing the following non-IFRS 9 items: share-based payments (IFRS 2), mining assets (IFRS 6), inventories (IAS 2), income tax assets and liabilities (IAS 12), property, plant and equipment (IAS 16), finance lease liabilities (IFRS 16), defined benefit and short-term employee benefits assets and liabilities (IAS 19), grants (IAS\u00a020), provisions (IAS 37), intangible assets and prepaid expenses (IAS 38), stripping assets (IFRIC 20) and duties and taxes (IFRIC 21). The logic of classification of financial instruments in assets and liabilities is applied in transversally to their changes in income statement. For example, revenue is included in the amortized cost category, as its counterparties in trade receivables or cash and cash equivalents fall under this category on the asset\u00a0side.
2023
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 286.1 | - | - | - | - | - | 286.1 |
Other operating income (expenses) from investing activities | (62.5) | - | - | - | - | - | - | - | (62.5) |
Financial income (expenses) from investing activities | 189.7 | 91.3 | - | - | - | - | - | - | 280.9 |
Of which: Financial income | 303.7 | 93.9 | - | - | - | - | - | - | 397.6 |
Financial expenses | (114.0) | (2.6) | - | - | - | - | - | - | (116.7) |
Profit (loss) from investing activities - continuing operations | 127.1 | 91.3 | 286.1 | - | - | - | - | - | 504.5 |
Turnover | 6,137.1 | - | - | - | - | - | - | 0.2 | 6,137.3 |
Raw materials and consumables | (1,950.6) | - | - | (107.5) | - | - | - | (52.6) | (2,110.7) |
Other operating income (expenses) from operating activities | (1,471.4) | - | - | 10.2 | - | - | - | - | (1,461.2) |
Financial income (expenses) from operating activities | (211.7) | 0.4 | - | (17.1) | - | - | - | - | (228.4) |
Of which: Financial income | 83.1 | 0.4 | - | - | - | - | - | - | 83.5 |
Financial expenses | (294.8) | - | - | (17.1) | - | - | - | - | (311.9) |
Profit (loss) from consolidated operating activities - continuing operations | 2,503.3 | 0.4 | - | (114.4) | - | - | - | (52.4) | 2,336.9 |
2022
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 322.3 | - | - | - | - | - | 322.3 |
Other operating income (expenses) from investing activities | (74.3) | - | - | - | - | - | - | - | (74.3) |
Financial income (expenses) from investing activities | (490.0) | 94.6 | - | - | - | - | - | - | (395.4) |
Of which: Financial income | 168.7 | 119.0 | - | - | - | - | - | - | 287.7 |
Financial expenses | (658.7) | (24.4) | - | - | - | - | - | - | (683.1) |
Profit (loss) from investing activities - continuing operations | (564.3) | 94.6 | 322.3 | - | - | - | - | - | (147.4) |
Turnover | 5,623.4 | - | - | - | - | - | - | (0.1) | 5,623.3 |
Raw materials and consumables | (2,264.5) | - | - | 199.9 | - | - | - | 100.4 | (1,964.2) |
Other operating income (expenses) from operating activities | (1,548.7) | - | - | 18.1 | - | - | - | - | (1,530.6) |
Financial income (expenses) from operating activities | (362.9) | 5.8 | - | (11.0) | - | - | - | - | (368.1) |
Of which: Financial income | 36.9 | 5.8 | - | - | - | - | - | - | 42.7 |
Financial expenses | (399.9) | - | - | (11.0) | - | - | - | - | (410.9) |
Profit (loss) from consolidated operating activities - continuing operations | 1,447.3 | 5.8 | - | 207.0 | - | - | - | 100.3 | 1,760.4 |
3.1\tNet dividends
In EUR\u00a0million | 2023 | 2022 |
SGS | 117.7 | 109.8 |
Pernod Ricard | 80.9 | 82.0 |
Holcim | 33.6 | 28.0 |
Umicore | 31.4 | 31.4 |
GEA | 9.9 | 10.2 |
adidas | 8.2 | 38.5 |
Concentrix + Webhelp | 2.4 | - |
Mowi | 1.4 | 19.1 |
TotalEnergies | 0.7 | 0.8 |
Other | 0.1 | 0.9 |
Reimbursements of withholding taxes | - | 1.6 |
Total | 286.1 | 322.3 |
In 2023, GBL recorded EUR\u00a0286\u00a0million in dividends (EUR\u00a0322\u00a0million in 2022). This decrease mainly reflects the lower dividends received from\u00a0adidas, as well as the decrease of Mowi\u2019s contribution as a consequence of the sales of the position in 2022 and 2023.
19.2\tDividends
On May 15, 2023, a gross dividend of EUR\u00a02.75 per share (EUR\u00a02.75 in 2022) was paid to the shareholders.
The proposition will be made to the General Shareholders Meeting of May 2, 2024 to approve the profit distribution relating to the 2023 financial year, amounting to a total of EUR\u00a0381\u00a0million, and which will be paid as from May 13, 2024. Based on the number of shares entitled to dividends (138,364,446), the distribution relating to 2023 will correspond to a gross dividend of EUR\u00a02.75per GBL share.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__159-1": { "value": "3.2\tFair value and changes
The investments in listed companies are valued on the basis of the share price at the reporting date. The investments in unlisted companies are valued on a quarterly basis at their fair value in line with the recommendations of the International Private Equity and Venture Capital Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d). Recent investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of their fair values. Changes in the fair value are recognized in the revaluation reserves (see Note 3.3.).
Shares in \u201cFunds\u201d comprising 468 Capital II, Alto Capital V, Apheon opseo Long Term Value Fund, Apheon SVT Long Term Value Fund, BDT Capital Partners Fund II, Carlyle International Energy Partners II, C2 Capital Global Export-to-China Fund, E.C.B. (Bastille)-Telenco, EC IV Invest, Eight Partners Worldwide, Fonds F2E, Globality, Griffin, HCM IV, HCM V, HCM S11A (Transcarent), HCM S3C (Commure), Iceberg Data Lab, Iconiq VII, Illumio, Innovius Capital Fund, Kartesia Credit Opportunities III, IV and V, KKR Azur Co-invest, KKR Rainbow Co-Invest (Asset), KKR Sigma Co-Invest II, Klarna Holding, Marcho Partners, Marcho Partners Long, Cepsa, M\u00e9rieux Participations I, Predirec ABL-3 (Part B), PrimeStone, Sagard, Sagard II, Sagard 3, Sagard 4, Sagard NewGen,Sagard NewGen Pharma, Sagard Sant\u00e9 Animale, Sagard Testing, Sagard Business Intelligence, Sapphire (proALPHA), Sienna Levier, Sienna Rendement Avenir IV, Sienna Social Impact, Sienna Venture Capital Startup Nation, Sienna Sustainable Infra Debt\u00a0III, South Park Commons Seed Fund II, South Park Commons Opportunities Fund II, Stripes VI (A) and others are revalued at their fair value, as notably determined by the managers of these funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss) (see Note 7).
Of which: | ||||||||||||
In EUR\u00a0million | December 31, 2022 | Acquisitions | Disposals/Reimburse-ments | Change in fair value | Other | December 31, 2023 | Holding | Imerys | Canyon | Affidea | Sanoptis | GBL Capitaland SIM |
Investments with changes in fair value through equity | 11,110.2 | 643.3 | (1,075.8) | (377.5) | 0.0 | 10,300.3 | 10,300.3 | - | - | - | - | - |
SGS | 3,126.6 | 33.3 | - | (324.9) | - | 2,835.0 | 2,835.0 | - | - | - | - | - |
Pernod Ricard | 3,266.2 | - | (23.6) | (494.1) | - | 2,748.5 | 2,748.5 | - | - | - | - | - |
adidas | 1,748.1 | - | - | 777.6 | - | 2,525.7 | 2,525.7 | - | - | - | - | - |
Umicore | 1,346.5 | - | - | (369.6) | - | 976.9 | 976.9 | - | - | - | - | - |
Concentrix + Webhelp | - | 609.9 | - | 169.8 | - | 779.8 | 779.8 | - | - | - | - | - |
Voodoo | 273.0 | - | - | 14.2 | - | 287.2 | 287.2 | - | - | - | - | - |
Ontex | 102.7 | - | - | 22.5 | - | 125.1 | 125.1 | - | - | - | - | - |
TotalEnergies | 15.7 | - | - | 0.8 | 0.0 | 16.5 | 16.5 | - | - | - | - | - |
GEA | 434.0 | - | (400.9) | (28.9) | - | 4.2 | 4.2 | - | - | - | - | - |
Holcim | 639.7 | - | (488.1) | (151.6) | - | - | - | - | - | - | - | - |
Mowi | 156.7 | - | (163.2) | 6.5 | - | - | - | - | - | - | - | - |
Other | 1.2 | 0.0 | - | 0.2 | - | 1.4 | 1.4 | - | - | - | - | - |
Investments with changes in fair value through profit or loss | 2,054.2 | 347.9 | (270.5) | 187.6 | (14.6) | 2,304.6 | - | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 |
Co-investments/Funds | 2,030.9 | 343.5 | (266.3) | 187.6 | (27.0) | 2,268.6 | - | - | - | - | - | 2,268.6 |
Other | 23.3 | 4.4 | (4.2) | - | 12.4 | 35.9 | - | 0.2 | 8.6 | 3.0 | 1.7 | 22.3 |
Fair value | 13,164.4 | 991.2 | (1,346.3) | (189.9) | (14.6) | 12,604.8 | 10,300.3 | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 |
Of which: | |||||||||||||
In EUR\u00a0million | December 31, 2021 | Acquisitions | Disposals/Reimburse-ments | Change in fair value | Other | December 31, 2022 | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM |
Investments with changes in fair value through equity | 15,789.2 | 0.7 | (759.3) | (3,920.4) | 0.0 | 11,110.2 | 11,110.2 | - | - | - | - | - | - |
SGS | 4,207.3 | - | (87.6) | (853.6) | - | 3,266.2 | 3,266.2 | - | - | - | - | - | - |
Pernod Ricard | 4,223.4 | - | - | (1,096.8) | - | 3,126.6 | 3,126.6 | - | - | - | - | - | - |
adidas | 3,472.5 | - | - | (1,724.5) | - | 1,748.1 | 1,748.1 | - | - | - | - | - | - |
Umicore | 1,402.6 | - | - | (56.1) | - | 1,346.5 | 1,346.5 | - | - | - | - | - | - |
Holcim | 592.3 | - | - | 47.4 | - | 639.7 | 639.7 | - | - | - | - | - | - |
GEA | 546.3 | - | - | (112.4) | - | 434.0 | 434.0 | - | - | - | - | - | - |
Voodoo | 266.0 | 0.3 | - | 6.7 | - | 273.0 | 273.0 | - | - | - | - | - | - |
Mowi | 756.9 | - | (436.8) | (163.4) | - | 156.7 | 156.7 | - | - | - | - | - | - |
Ontex | 115.0 | - | - | (12.3) | - | 102.7 | 102.7 | - | - | - | - | - | - |
TotalEnergies | 11.9 | - | - | 3.7 | 0.0 | 15.7 | 15.7 | - | - | - | - | - | - |
Other | 194.9 | 0.4 | (234.9) | 40.7 | - | 1.2 | 1.2 | - | - | - | - | - | - |
Investments with changes in fair value through profit or loss | 2,385.7 | 491.9 | (328.5) | (487.1) | (7.7) | 2,054.2 | - | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 |
Funds | 2,385.7 | 473.1 | (328.5) | (487.1) | (12.3) | 2,030.9 | - | - | - | - | - | - | 2,030.9 |
Other | 0.0 | 18.7 | (0.0) | - | 4.6 | 23.3 | - | 2.3 | 0.0 | - | 1.0 | 2.3 | 17.6 |
Fair value | 18,174.9 | 492.6 | (1,087.8) | (4,407.5) | (7.7) | 13,164.4 | 11,110.2 | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 |
Note 29Financial instruments
Fair value
The fair value of a financial instrument is the amount that would be received on selling the asset or paid on transferring a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is a presumption that an entity is a going concern without any intention or need to liquidate, to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Fair value is not, therefore, the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distressed sale.
To reflect the importance of inputs used when measuring at fair value, the group classifies these valuations according to a hierarchy composed of\u00a0the\u00a0following levels:
level 1: listed prices (non-adjusted) on active markets for identical assets or liabilities;
level 2: inputs, other than the listed prices included in level 1, that are observable for the asset or liability concerned, either directly (i.e., prices) or\u00a0indirectly (i.e., derived from prices); and
level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).
The group\u2019s financial instruments very largely belong to classification levels 1 and 2. The financial assets measured at level 3 fair value are not significant compared to the other asset classes (15.07% as of December\u00a031, 2023 and 12.93% as of December\u00a031, 2022).
Measurement techniques
The objective of using a valuation method is to establish what the transaction price would have been on the measurement date in an arm\u2019s-length exchange and motivated by normal business considerations.
Techniques used to measure the fair value of level 2 financial instruments:
Exchangeable or convertible bonds
The exchangeable or convertible bonds issued by the group are considered to be hybrid instruments, i.e., instruments including a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds, taking into account the risk associated with GBL (credit spread). At each reporting date, the value of the bond component is recalculated, taking into account the change in the risk-free rate and GBL\u2019s credit spread, and the difference in relation to the price of the exchangeable or convertible bond observed on the Frankfurt Stock Exchange\u2019s Euro MTF market is taken as the new value of the derivative component. The change in this value in relation to the previous reporting date is recognized in profit or loss.
Other level 2 financial instruments
The fair value of derivative instruments not associated with exchangeable or convertible bonds is taken from a model that uses observable data, in other words the quotes on the reporting date provided by third-parties operating on the financial markets. These valuations are adjusted for the counterparties\u2019 credit risk and the credit risk specific to Imerys or GBL. Accordingly, if the market value of the derivative is positive (derivative asset), its fair value incorporates the likelihood of the counterparty defaulting (Credit Value Adjustment or CVA). If the derivative\u2019s market value is negative (derivative liability), its fair value factors in the likelihood of Imerys or GBL defaulting (Debit Value Adjustment or DVA). These adjustments are measured based on the spreads of the bonds in circulation on the secondary market, as issued by Imerys, GBL and their counterparts.
Techniques used to measure the fair value of level 3 financial instruments:
Equity investments
The investments in unlisted companies are valued internally at their fair value on a quarterly basis, based on a specific valuation method or a combination of valuation methods, the specific valuations the method of combination of methods being consistent from an closing to another. Methodologies are aligned across the portfolio, though with different weights for respective methods depending on the company. Valuation are approved by the Valuation Committee of GBL and reviewed by an external advisor. Changes in the fair value of these investments are recognized in the revaluation reserves.
Investments in funds or co-investments owned by GBL Capital are revalued at their fair value, as notably determined by the managers of the funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss).
In accordance with the recommendations of the International Private Equity and Venture Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d), recent\u00a0investment, funds or co-investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of fair\u00a0value.
Analysis of financial instruments by category \u2013 balance sheets
The category, according to IFRS 9, uses the following abbreviations:
FATOCI: Financial Assets measured at fair value through Other Comprehensive Income
FATPL: Financial Assets measured at fair value through Profit or Loss
FLTPL: Financial Liabilities measured at fair value through Profit or Loss
FAAC: Financial Assets measured at Amortized Cost
FLAC: Financial Liabilities measured at Amortized Cost
HeAc: Hedge Accounting
The tables below show a comparison of the book value and the fair value of the financial instruments as of December\u00a031, 2023 and as of December\u00a031,\u00a02022, as well as the fair value hierarchy. There were no significant transfers between the different levels between 2023 and 2022.
As of December 31, 2023
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,013.1 | 10,013.1 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 287.2 | 287.2 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 112.4 | 112.4 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 2,192.0 | 2,192.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 0.2 | 0.2 | Level 2 |
Derivative instruments - Other | FATPL | 27.0 | 27.0 | Level 2 |
Other financial assets | FAAC | 573.7 | 573.7 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 600.6 | 600.6 | Level 2 |
Trading financial assets | FATPL | 1,385.6 | 1,385.6 | Level 1 |
Cash and cash equivalents | FAAC | 1,198.0 | 1,198.0 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 13.7 | 13.7 | Level 2 |
Derivative instruments - Other | FATPL | 25.5 | 25.5 | Level 2 |
Other financial assets | FAAC | 21.1 | 21.1 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 7,177.2 | 6,979.8 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 6.3 | 6.3 | Level 2 |
Derivative instruments - Other | FLTPL | 9.7 | 9.7 | Level 2 |
Other non current liabilities | FLAC | 407.1 | 407.1 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,173.7 | 1,173.7 | Level 2 |
Trade payables | FLAC | 571.5 | 571.5 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 41.1 | 41.1 | Level 2 |
Derivative instruments - Other | FLTPL | 5.1 | 5.1 | Level 2 |
Other current liabilities | FLAC | 76.3 | 76.3 | Level 2 |
As of December 31, 2022
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,837.2 | 10,837.2 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 273.0 | 273.0 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 127.3 | 127.3 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 1,927.0 | 1,927.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 9.6 | 9.6 | Level 2 |
Other financial assets | FAAC | 66.1 | 66.1 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 1,108.7 | 1,108.7 | Level 2 |
Trading financial assets | FATPL | 870.0 | 870.0 | Level 1 |
Cash and cash equivalents | FAAC | 1,768.3 | 1,768.3 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 35.5 | 35.5 | Level 2 |
Derivative instruments - Other | FATPL | 17.4 | 17.4 | Level 2 |
Other financial assets | FAAC | 38.0 | 38.0 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 8,714.7 | 8,379.3 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 4.1 | 4.1 | Level 2 |
Derivative instruments - Other | FLTPL | 88.7 | 88.7 | Level 2 |
Other non current liabilities | FLAC | 1,545.2 | 1,545.2 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,654.6 | 1,675.9 | Level 2 |
Trade payables | FLAC | 857.4 | 857.4 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 113.5 | 113.5 | Level 2 |
Derivative instruments - Other | FLTPL | 69.8 | 69.8 | Level 2 |
Other current liabilities | FLAC | 73.7 | 73.7 | Level 2 |
Analysis of financial instruments by category \u2013 income statements
The tables hereafter present the income and expenses before income taxes recognized in the income statement by categories of financial instruments. These tables analyze the income and expense lines containing financial instruments according to categories presented in columns. These distinguish, on the one hand, the categories applied by default to any item excluding hedge accounting and, on the other hand, the categories applied to any item falling within the scope of hedge accounting.
The IFRS 9 categories of amortized cost and fair value through profit or loss apply to the majority of non-hedge accounting items. Hedge accounting items are classified according to their fair value or cash flow hedging qualifications, distinguishing the values of hedged items and hedging instruments in columns and the types of risks hedged in rows. In addition, in order to ensure reconciliation between IFRS 9 classes and financial statements, this table includes a column containing the following non-IFRS 9 items: share-based payments (IFRS 2), mining assets (IFRS 6), inventories (IAS 2), income tax assets and liabilities (IAS 12), property, plant and equipment (IAS 16), finance lease liabilities (IFRS 16), defined benefit and short-term employee benefits assets and liabilities (IAS 19), grants (IAS\u00a020), provisions (IAS 37), intangible assets and prepaid expenses (IAS 38), stripping assets (IFRIC 20) and duties and taxes (IFRIC 21). The logic of classification of financial instruments in assets and liabilities is applied in transversally to their changes in income statement. For example, revenue is included in the amortized cost category, as its counterparties in trade receivables or cash and cash equivalents fall under this category on the asset\u00a0side.
2023
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 286.1 | - | - | - | - | - | 286.1 |
Other operating income (expenses) from investing activities | (62.5) | - | - | - | - | - | - | - | (62.5) |
Financial income (expenses) from investing activities | 189.7 | 91.3 | - | - | - | - | - | - | 280.9 |
Of which: Financial income | 303.7 | 93.9 | - | - | - | - | - | - | 397.6 |
Financial expenses | (114.0) | (2.6) | - | - | - | - | - | - | (116.7) |
Profit (loss) from investing activities - continuing operations | 127.1 | 91.3 | 286.1 | - | - | - | - | - | 504.5 |
Turnover | 6,137.1 | - | - | - | - | - | - | 0.2 | 6,137.3 |
Raw materials and consumables | (1,950.6) | - | - | (107.5) | - | - | - | (52.6) | (2,110.7) |
Other operating income (expenses) from operating activities | (1,471.4) | - | - | 10.2 | - | - | - | - | (1,461.2) |
Financial income (expenses) from operating activities | (211.7) | 0.4 | - | (17.1) | - | - | - | - | (228.4) |
Of which: Financial income | 83.1 | 0.4 | - | - | - | - | - | - | 83.5 |
Financial expenses | (294.8) | - | - | (17.1) | - | - | - | - | (311.9) |
Profit (loss) from consolidated operating activities - continuing operations | 2,503.3 | 0.4 | - | (114.4) | - | - | - | (52.4) | 2,336.9 |
2022
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 322.3 | - | - | - | - | - | 322.3 |
Other operating income (expenses) from investing activities | (74.3) | - | - | - | - | - | - | - | (74.3) |
Financial income (expenses) from investing activities | (490.0) | 94.6 | - | - | - | - | - | - | (395.4) |
Of which: Financial income | 168.7 | 119.0 | - | - | - | - | - | - | 287.7 |
Financial expenses | (658.7) | (24.4) | - | - | - | - | - | - | (683.1) |
Profit (loss) from investing activities - continuing operations | (564.3) | 94.6 | 322.3 | - | - | - | - | - | (147.4) |
Turnover | 5,623.4 | - | - | - | - | - | - | (0.1) | 5,623.3 |
Raw materials and consumables | (2,264.5) | - | - | 199.9 | - | - | - | 100.4 | (1,964.2) |
Other operating income (expenses) from operating activities | (1,548.7) | - | - | 18.1 | - | - | - | - | (1,530.6) |
Financial income (expenses) from operating activities | (362.9) | 5.8 | - | (11.0) | - | - | - | - | (368.1) |
Of which: Financial income | 36.9 | 5.8 | - | - | - | - | - | - | 42.7 |
Financial expenses | (399.9) | - | - | (11.0) | - | - | - | - | (410.9) |
Profit (loss) from consolidated operating activities - continuing operations | 1,447.3 | 5.8 | - | 207.0 | - | - | - | 100.3 | 1,760.4 |
Shares in \u201cFunds\u201d comprising 468 Capital II, Alto Capital V, Apheon opseo Long Term Value Fund, Apheon SVT Long Term Value Fund, BDT Capital Partners Fund II, Carlyle International Energy Partners II, C2 Capital Global Export-to-China Fund, E.C.B. (Bastille)-Telenco, EC IV Invest, Eight Partners Worldwide, Fonds F2E, Globality, Griffin, HCM IV, HCM V, HCM S11A (Transcarent), HCM S3C (Commure), Iceberg Data Lab, Iconiq VII, Illumio, Innovius Capital Fund, Kartesia Credit Opportunities III, IV and V, KKR Azur Co-invest, KKR Rainbow Co-Invest (Asset), KKR Sigma Co-Invest II, Klarna Holding, Marcho Partners, Marcho Partners Long, Cepsa, M\u00e9rieux Participations I, Predirec ABL-3 (Part B), PrimeStone, Sagard, Sagard II, Sagard 3, Sagard 4, Sagard NewGen,Sagard NewGen Pharma, Sagard Sant\u00e9 Animale, Sagard Testing, Sagard Business Intelligence, Sapphire (proALPHA), Sienna Levier, Sienna Rendement Avenir IV, Sienna Social Impact, Sienna Venture Capital Startup Nation, Sienna Sustainable Infra Debt\u00a0III, South Park Commons Seed Fund II, South Park Commons Opportunities Fund II, Stripes VI (A) and others are revalued at their fair value, as notably determined by the managers of these funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss) (see Note 7).
Of which: | ||||||||||||
In EUR\u00a0million | December 31, 2022 | Acquisitions | Disposals/Reimburse-ments | Change in fair value | Other | December 31, 2023 | Holding | Imerys | Canyon | Affidea | Sanoptis | GBL Capitaland SIM |
Investments with changes in fair value through equity | 11,110.2 | 643.3 | (1,075.8) | (377.5) | 0.0 | 10,300.3 | 10,300.3 | - | - | - | - | - |
SGS | 3,126.6 | 33.3 | - | (324.9) | - | 2,835.0 | 2,835.0 | - | - | - | - | - |
Pernod Ricard | 3,266.2 | - | (23.6) | (494.1) | - | 2,748.5 | 2,748.5 | - | - | - | - | - |
adidas | 1,748.1 | - | - | 777.6 | - | 2,525.7 | 2,525.7 | - | - | - | - | - |
Umicore | 1,346.5 | - | - | (369.6) | - | 976.9 | 976.9 | - | - | - | - | - |
Concentrix + Webhelp | - | 609.9 | - | 169.8 | - | 779.8 | 779.8 | - | - | - | - | - |
Voodoo | 273.0 | - | - | 14.2 | - | 287.2 | 287.2 | - | - | - | - | - |
Ontex | 102.7 | - | - | 22.5 | - | 125.1 | 125.1 | - | - | - | - | - |
TotalEnergies | 15.7 | - | - | 0.8 | 0.0 | 16.5 | 16.5 | - | - | - | - | - |
GEA | 434.0 | - | (400.9) | (28.9) | - | 4.2 | 4.2 | - | - | - | - | - |
Holcim | 639.7 | - | (488.1) | (151.6) | - | - | - | - | - | - | - | - |
Mowi | 156.7 | - | (163.2) | 6.5 | - | - | - | - | - | - | - | - |
Other | 1.2 | 0.0 | - | 0.2 | - | 1.4 | 1.4 | - | - | - | - | - |
Investments with changes in fair value through profit or loss | 2,054.2 | 347.9 | (270.5) | 187.6 | (14.6) | 2,304.6 | - | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 |
Co-investments/Funds | 2,030.9 | 343.5 | (266.3) | 187.6 | (27.0) | 2,268.6 | - | - | - | - | - | 2,268.6 |
Other | 23.3 | 4.4 | (4.2) | - | 12.4 | 35.9 | - | 0.2 | 8.6 | 3.0 | 1.7 | 22.3 |
Fair value | 13,164.4 | 991.2 | (1,346.3) | (189.9) | (14.6) | 12,604.8 | 10,300.3 | 0.2 | 8.6 | 3.0 | 1.7 | 2,291.0 |
Of which: | |||||||||||||
In EUR\u00a0million | December 31, 2021 | Acquisitions | Disposals/Reimburse-ments | Change in fair value | Other | December 31, 2022 | Holding | Imerys | Webhelp | Canyon | Affidea | Sanoptis | GBL Capitaland SIM |
Investments with changes in fair value through equity | 15,789.2 | 0.7 | (759.3) | (3,920.4) | 0.0 | 11,110.2 | 11,110.2 | - | - | - | - | - | - |
SGS | 4,207.3 | - | (87.6) | (853.6) | - | 3,266.2 | 3,266.2 | - | - | - | - | - | - |
Pernod Ricard | 4,223.4 | - | - | (1,096.8) | - | 3,126.6 | 3,126.6 | - | - | - | - | - | - |
adidas | 3,472.5 | - | - | (1,724.5) | - | 1,748.1 | 1,748.1 | - | - | - | - | - | - |
Umicore | 1,402.6 | - | - | (56.1) | - | 1,346.5 | 1,346.5 | - | - | - | - | - | - |
Holcim | 592.3 | - | - | 47.4 | - | 639.7 | 639.7 | - | - | - | - | - | - |
GEA | 546.3 | - | - | (112.4) | - | 434.0 | 434.0 | - | - | - | - | - | - |
Voodoo | 266.0 | 0.3 | - | 6.7 | - | 273.0 | 273.0 | - | - | - | - | - | - |
Mowi | 756.9 | - | (436.8) | (163.4) | - | 156.7 | 156.7 | - | - | - | - | - | - |
Ontex | 115.0 | - | - | (12.3) | - | 102.7 | 102.7 | - | - | - | - | - | - |
TotalEnergies | 11.9 | - | - | 3.7 | 0.0 | 15.7 | 15.7 | - | - | - | - | - | - |
Other | 194.9 | 0.4 | (234.9) | 40.7 | - | 1.2 | 1.2 | - | - | - | - | - | - |
Investments with changes in fair value through profit or loss | 2,385.7 | 491.9 | (328.5) | (487.1) | (7.7) | 2,054.2 | - | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 |
Funds | 2,385.7 | 473.1 | (328.5) | (487.1) | (12.3) | 2,030.9 | - | - | - | - | - | - | 2,030.9 |
Other | 0.0 | 18.7 | (0.0) | - | 4.6 | 23.3 | - | 2.3 | 0.0 | - | 1.0 | 2.3 | 17.6 |
Fair value | 18,174.9 | 492.6 | (1,087.8) | (4,407.5) | (7.7) | 13,164.4 | 11,110.2 | 2.3 | 0.0 | - | 1.0 | 2.3 | 2,048.5 |
In EUR\u00a0million | 2023 | 2022 |
Interest income on cash and cash equivalents, non-current assets or other | 36.5 | (7.7) |
Interest expenses on financial liabilities | (67.0) | (27.0) |
Gains (losses) on trading securities and derivatives | 122.1 | 124.0 |
Change in the fair value of other equity investments recognized at fair value through profit or loss | 187.6 | (487.1) |
Other financial income | 17.2 | 13.0 |
Other financial expenses | (15.4) | (10.7) |
Financial income (expenses) - investing activities | 280.9 | (395.5) |
Interest income on cash and cash equivalents and non-current assets | 10.6 | 6.5 |
Interest expenses on financial liabilities | (215.9) | (102.0) |
Gains (losses) on trading securities and derivatives | 4.8 | (1.8) |
Other financial income | 72.9 | 36.2 |
Other financial expenses | (100.8) | (51.7) |
Financial income (expenses) - operating activities\u00a0 | (228.4) | (112.7) |
Financial income (expenses) from investing activities total EUR\u00a0281\u00a0million (compared to EUR\u00a0- 395\u00a0million in 2022). They mainly consist of (i) the changes in fair value of other equity investments recognized at fair value in profit or loss for EUR\u00a0188\u00a0million (EUR\u00a0- 487\u00a0million in 2022), (ii) a total net income of EUR\u00a070\u00a0million related to the mark to market of the derivative component associated to the exchangeable bonds into GEA shares, to the exchangeable bonds into Pernod Ricard shares and the convertible bonds into GBL shares (a net income of EUR\u00a098\u00a0million 2022), (iii) the result of yield enhancement for EUR\u00a019\u00a0million in 2023, including EUR\u00a06\u00a0million in revenues generated in 2023 and EUR\u00a013\u00a0million in mark-to-market (against EUR\u00a09\u00a0million in 2022) and (iv) the interest charges on GBL\u2019s indebtedness for EUR\u00a0-\u00a064\u00a0million (EUR\u00a0-\u00a026\u00a0million in 2022).
Financial income (expenses) from consolidated operating activities essentially result from interest expenses on Affidea\u2019s, Sanoptis\u2019 and Imerys\u2019 indebtedness for EUR\u00a076\u00a0million, EUR\u00a076\u00a0million and EUR\u00a041\u00a0million respectively (EUR\u00a026\u00a0million, EUR\u00a023\u00a0million and EUR\u00a038\u00a0million in 2022 respectively).
Note 16Trading financial assets
In EUR\u00a0million | 2023 | 2022 |
Money market funds | 712.4 | 841.4 |
Other trading assets | 673.1 | 28.6 |
Total | 1,385.6 | 870.0 |
Of which: Holding | 705.5 | 839.8 |
Imerys | 671.9 | 1.9 |
Webhelp | - | 12.0 |
Canyon | 8.1 | 16.3 |
Affidea | - | - |
Sanoptis | - | - |
GBL Capital and SIM | 0.0 | 0.0 |
In EUR\u00a0million | 2023 | 2022 |
Money market funds | 712.4 | 841.4 |
Other trading assets | 673.1 | 28.6 |
Total | 1,385.6 | 870.0 |
Of which: Holding | 705.5 | 839.8 |
Imerys | 671.9 | 1.9 |
Webhelp | - | 12.0 |
Canyon | 8.1 | 16.3 |
Affidea | - | - |
Sanoptis | - | - |
GBL Capital and SIM | 0.0 | 0.0 |
Note 29Financial instruments
Fair value
The fair value of a financial instrument is the amount that would be received on selling the asset or paid on transferring a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is a presumption that an entity is a going concern without any intention or need to liquidate, to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Fair value is not, therefore, the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distressed sale.
To reflect the importance of inputs used when measuring at fair value, the group classifies these valuations according to a hierarchy composed of\u00a0the\u00a0following levels:
level 1: listed prices (non-adjusted) on active markets for identical assets or liabilities;
level 2: inputs, other than the listed prices included in level 1, that are observable for the asset or liability concerned, either directly (i.e., prices) or\u00a0indirectly (i.e., derived from prices); and
level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).
The group\u2019s financial instruments very largely belong to classification levels 1 and 2. The financial assets measured at level 3 fair value are not significant compared to the other asset classes (15.07% as of December\u00a031, 2023 and 12.93% as of December\u00a031, 2022).
Measurement techniques
The objective of using a valuation method is to establish what the transaction price would have been on the measurement date in an arm\u2019s-length exchange and motivated by normal business considerations.
Techniques used to measure the fair value of level 2 financial instruments:
Exchangeable or convertible bonds
The exchangeable or convertible bonds issued by the group are considered to be hybrid instruments, i.e., instruments including a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds, taking into account the risk associated with GBL (credit spread). At each reporting date, the value of the bond component is recalculated, taking into account the change in the risk-free rate and GBL\u2019s credit spread, and the difference in relation to the price of the exchangeable or convertible bond observed on the Frankfurt Stock Exchange\u2019s Euro MTF market is taken as the new value of the derivative component. The change in this value in relation to the previous reporting date is recognized in profit or loss.
Other level 2 financial instruments
The fair value of derivative instruments not associated with exchangeable or convertible bonds is taken from a model that uses observable data, in other words the quotes on the reporting date provided by third-parties operating on the financial markets. These valuations are adjusted for the counterparties\u2019 credit risk and the credit risk specific to Imerys or GBL. Accordingly, if the market value of the derivative is positive (derivative asset), its fair value incorporates the likelihood of the counterparty defaulting (Credit Value Adjustment or CVA). If the derivative\u2019s market value is negative (derivative liability), its fair value factors in the likelihood of Imerys or GBL defaulting (Debit Value Adjustment or DVA). These adjustments are measured based on the spreads of the bonds in circulation on the secondary market, as issued by Imerys, GBL and their counterparts.
Techniques used to measure the fair value of level 3 financial instruments:
Equity investments
The investments in unlisted companies are valued internally at their fair value on a quarterly basis, based on a specific valuation method or a combination of valuation methods, the specific valuations the method of combination of methods being consistent from an closing to another. Methodologies are aligned across the portfolio, though with different weights for respective methods depending on the company. Valuation are approved by the Valuation Committee of GBL and reviewed by an external advisor. Changes in the fair value of these investments are recognized in the revaluation reserves.
Investments in funds or co-investments owned by GBL Capital are revalued at their fair value, as notably determined by the managers of the funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss).
In accordance with the recommendations of the International Private Equity and Venture Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d), recent\u00a0investment, funds or co-investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of fair\u00a0value.
Analysis of financial instruments by category \u2013 balance sheets
The category, according to IFRS 9, uses the following abbreviations:
FATOCI: Financial Assets measured at fair value through Other Comprehensive Income
FATPL: Financial Assets measured at fair value through Profit or Loss
FLTPL: Financial Liabilities measured at fair value through Profit or Loss
FAAC: Financial Assets measured at Amortized Cost
FLAC: Financial Liabilities measured at Amortized Cost
HeAc: Hedge Accounting
The tables below show a comparison of the book value and the fair value of the financial instruments as of December\u00a031, 2023 and as of December\u00a031,\u00a02022, as well as the fair value hierarchy. There were no significant transfers between the different levels between 2023 and 2022.
As of December 31, 2023
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,013.1 | 10,013.1 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 287.2 | 287.2 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 112.4 | 112.4 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 2,192.0 | 2,192.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 0.2 | 0.2 | Level 2 |
Derivative instruments - Other | FATPL | 27.0 | 27.0 | Level 2 |
Other financial assets | FAAC | 573.7 | 573.7 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 600.6 | 600.6 | Level 2 |
Trading financial assets | FATPL | 1,385.6 | 1,385.6 | Level 1 |
Cash and cash equivalents | FAAC | 1,198.0 | 1,198.0 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 13.7 | 13.7 | Level 2 |
Derivative instruments - Other | FATPL | 25.5 | 25.5 | Level 2 |
Other financial assets | FAAC | 21.1 | 21.1 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 7,177.2 | 6,979.8 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 6.3 | 6.3 | Level 2 |
Derivative instruments - Other | FLTPL | 9.7 | 9.7 | Level 2 |
Other non current liabilities | FLAC | 407.1 | 407.1 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,173.7 | 1,173.7 | Level 2 |
Trade payables | FLAC | 571.5 | 571.5 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 41.1 | 41.1 | Level 2 |
Derivative instruments - Other | FLTPL | 5.1 | 5.1 | Level 2 |
Other current liabilities | FLAC | 76.3 | 76.3 | Level 2 |
As of December 31, 2022
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,837.2 | 10,837.2 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 273.0 | 273.0 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 127.3 | 127.3 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 1,927.0 | 1,927.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 9.6 | 9.6 | Level 2 |
Other financial assets | FAAC | 66.1 | 66.1 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 1,108.7 | 1,108.7 | Level 2 |
Trading financial assets | FATPL | 870.0 | 870.0 | Level 1 |
Cash and cash equivalents | FAAC | 1,768.3 | 1,768.3 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 35.5 | 35.5 | Level 2 |
Derivative instruments - Other | FATPL | 17.4 | 17.4 | Level 2 |
Other financial assets | FAAC | 38.0 | 38.0 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 8,714.7 | 8,379.3 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 4.1 | 4.1 | Level 2 |
Derivative instruments - Other | FLTPL | 88.7 | 88.7 | Level 2 |
Other non current liabilities | FLAC | 1,545.2 | 1,545.2 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,654.6 | 1,675.9 | Level 2 |
Trade payables | FLAC | 857.4 | 857.4 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 113.5 | 113.5 | Level 2 |
Derivative instruments - Other | FLTPL | 69.8 | 69.8 | Level 2 |
Other current liabilities | FLAC | 73.7 | 73.7 | Level 2 |
Analysis of financial instruments by category \u2013 income statements
The tables hereafter present the income and expenses before income taxes recognized in the income statement by categories of financial instruments. These tables analyze the income and expense lines containing financial instruments according to categories presented in columns. These distinguish, on the one hand, the categories applied by default to any item excluding hedge accounting and, on the other hand, the categories applied to any item falling within the scope of hedge accounting.
The IFRS 9 categories of amortized cost and fair value through profit or loss apply to the majority of non-hedge accounting items. Hedge accounting items are classified according to their fair value or cash flow hedging qualifications, distinguishing the values of hedged items and hedging instruments in columns and the types of risks hedged in rows. In addition, in order to ensure reconciliation between IFRS 9 classes and financial statements, this table includes a column containing the following non-IFRS 9 items: share-based payments (IFRS 2), mining assets (IFRS 6), inventories (IAS 2), income tax assets and liabilities (IAS 12), property, plant and equipment (IAS 16), finance lease liabilities (IFRS 16), defined benefit and short-term employee benefits assets and liabilities (IAS 19), grants (IAS\u00a020), provisions (IAS 37), intangible assets and prepaid expenses (IAS 38), stripping assets (IFRIC 20) and duties and taxes (IFRIC 21). The logic of classification of financial instruments in assets and liabilities is applied in transversally to their changes in income statement. For example, revenue is included in the amortized cost category, as its counterparties in trade receivables or cash and cash equivalents fall under this category on the asset\u00a0side.
2023
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 286.1 | - | - | - | - | - | 286.1 |
Other operating income (expenses) from investing activities | (62.5) | - | - | - | - | - | - | - | (62.5) |
Financial income (expenses) from investing activities | 189.7 | 91.3 | - | - | - | - | - | - | 280.9 |
Of which: Financial income | 303.7 | 93.9 | - | - | - | - | - | - | 397.6 |
Financial expenses | (114.0) | (2.6) | - | - | - | - | - | - | (116.7) |
Profit (loss) from investing activities - continuing operations | 127.1 | 91.3 | 286.1 | - | - | - | - | - | 504.5 |
Turnover | 6,137.1 | - | - | - | - | - | - | 0.2 | 6,137.3 |
Raw materials and consumables | (1,950.6) | - | - | (107.5) | - | - | - | (52.6) | (2,110.7) |
Other operating income (expenses) from operating activities | (1,471.4) | - | - | 10.2 | - | - | - | - | (1,461.2) |
Financial income (expenses) from operating activities | (211.7) | 0.4 | - | (17.1) | - | - | - | - | (228.4) |
Of which: Financial income | 83.1 | 0.4 | - | - | - | - | - | - | 83.5 |
Financial expenses | (294.8) | - | - | (17.1) | - | - | - | - | (311.9) |
Profit (loss) from consolidated operating activities - continuing operations | 2,503.3 | 0.4 | - | (114.4) | - | - | - | (52.4) | 2,336.9 |
2022
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 322.3 | - | - | - | - | - | 322.3 |
Other operating income (expenses) from investing activities | (74.3) | - | - | - | - | - | - | - | (74.3) |
Financial income (expenses) from investing activities | (490.0) | 94.6 | - | - | - | - | - | - | (395.4) |
Of which: Financial income | 168.7 | 119.0 | - | - | - | - | - | - | 287.7 |
Financial expenses | (658.7) | (24.4) | - | - | - | - | - | - | (683.1) |
Profit (loss) from investing activities - continuing operations | (564.3) | 94.6 | 322.3 | - | - | - | - | - | (147.4) |
Turnover | 5,623.4 | - | - | - | - | - | - | (0.1) | 5,623.3 |
Raw materials and consumables | (2,264.5) | - | - | 199.9 | - | - | - | 100.4 | (1,964.2) |
Other operating income (expenses) from operating activities | (1,548.7) | - | - | 18.1 | - | - | - | - | (1,530.6) |
Financial income (expenses) from operating activities | (362.9) | 5.8 | - | (11.0) | - | - | - | - | (368.1) |
Of which: Financial income | 36.9 | 5.8 | - | - | - | - | - | - | 42.7 |
Financial expenses | (399.9) | - | - | (11.0) | - | - | - | - | (410.9) |
Profit (loss) from consolidated operating activities - continuing operations | 1,447.3 | 5.8 | - | 207.0 | - | - | - | 100.3 | 1,760.4 |
3.3\tRevaluation reserves
These reserves include the changes in the fair value of other equity investments whose changes in fair value are recorded through equity.
In 2023, the disposals of the remaining stakes in Holcim and Mowi, the partial disposal of Pernod Ricard and the disposal of the securities underlying the exchangeable bonds in GEA shares (matured in December\u00a02023) resulted in a reclassification to retained earnings\u00a0of\u00a0EUR\u00a0-\u00a045\u00a0million, EUR\u00a05\u00a0million, EUR\u00a0-\u00a087\u00a0million and EUR\u00a036\u00a0million respectively. In 2022, following\u00a0the\u00a0partial disposals of Mowi and Pernod\u00a0Ricard, the cumulated revaluation reserves of EUR\u00a075\u00a0million and EUR\u00a0297\u00a0million respectively were reclassified to retained earnings.
In EUR\u00a0million | SGS | Pernod Ricard | adidas | Umicore | Mowi | Holcim | GEA | Concentrix + Webhelp | Voodoo | Ontex | TotalEnergies | Other | Total |
As of December 31, 2021 | 1,670.0 | 3,384.4 | 2,361.2 | 607.9 | 156.8 | 104.2 | 141.5 | - | (2.2) | (339.4) | 5.6 | (43.5) | 8,046.6 |
Change resulting from the change in fair value | (1,096.8) | (556.8) | (1,724.5) | (56.1) | (88.4) | 47.4 | (112.4) | - | 6.7 | (12.3) | 3.7 | (29.2) | (3,618.6) |
Transfers to consolidated reserves in case of disposal | - | (296.7) | - | - | (75.0) | - | - | - | - | - | - | 69.9 | (301.8) |
As of December 31, 2022 | 573.1 | 2,530.8 | 636.7 | 551.8 | (6.5) | 151.6 | 29.2 | - | 4.5 | (351.7) | 9.3 | (2.7) | 4,126.1 |
Change resulting from the change in fair value | (324.9) | (407.2) | 777.6 | (369.6) | 1.3 | (106.2) | (64.6) | 169.8 | 14.2 | 22.5 | 0.8 | 0.2 | (285.9) |
Transfers to consolidated reserves in case of disposal | - | (86.9) | - | - | 5.2 | (45.4) | 35.6 | - | - | - | - | - | (91.6) |
As of December 31, 2023 | 248.2 | 2,036.8 | 1,414.4 | 182.2 | - | - | 0.2 | 169.8 | 18.8 | (329.3) | 10.1 | (2.5) | 3,748.7 |
Note 19Share capital and dividends
19.1Shares issued and outstanding and treasury shares
Number of issued shares | Of which treasury shares | |
As of December 31, 2021 | 156,355,000 | (7,944,102) |
Change | (3,355,000) | (4,278,768) |
As of December 31, 2022 | 153,000,000 | (12,222,870) |
Change | (6,300,000) | (4,708,383) |
As of December 31, 2023 | 146,700,000 | (16,931,253) |
Treasury shares
As of December\u00a031, 2023, the group held 16,931,253 treasury shares, or 11.54% of the issued capital, the acquisition cost of which is deducted from shareholders\u2019 equity; 4,255,580 of which are used to hedge the convertible bond.
The Extraordinary General Meeting of May 4, 2023 approved the cancellation of 6,300,000 own shares acquired by GBL. The capital is therefore represented by 146,700.000 shares.
In 2023, GBL acquired and sold/cancelled respectively 12,013,110 and 7,304,727 shares (to compare with respectively 8,657,745 and 4,378,977 in 2022) for an overall net amount of EUR\u00a0816\u00a0million.
Information on acquisitions of treasury shares by GBL or its subsidiaries has been published on a weekly basis on the GBL website.
Note 30Subsidiaries in which GBL holds significant non-controlling interests
The tables below present concise financial information about each of the subsidiaries in which GBL holds significant non-controlling interests, without taking intragroup eliminations into account.
In EUR\u00a0million | Imerys | Canyon | Sanoptis | Subsidiaries that are not individually material | 2023 |
Ownership percentage held by non-controlling interests | 45.1% | 50.0% | 16.8% | ||
Voting rights held by non-controlling interests | 31.9% | 50.0% | 38.0% | ||
Non-current assets | 4,469.7 | 749.6 | 2,294.2 | ||
Current assets | 2,682.2 | 475.6 | 182.4 | ||
Non-current liabilities | 2,497.6 | 373.3 | 1,590.5 | ||
Current liabilities | 1,497.0 | 136.9 | 113.6 | ||
Non-controlling interests | 33.3 | - | - | ||
Equity (group\u2019s share) | 3,124.0 | 714.9 | 772.6 | ||
Non-controlling interests (including those of the subsidiary) | 1,442.1 | 346.9 | 128.9 | 60.1 | 1,978.0 |
Turnover | 3,794.4 | 790.6 | 494.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 28.2 | (6.2) | (47.1) | ||
Net result of the period attributable to the non-controlling interests | 25.6 | (7.1) | (9.6) | 10.9 | 19.9 |
Net result of the period (including non-controlling interests) | 53.8 | (13.3) | (56.7) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 38.2 | (4.6) | (0.1) | ||
Other comprehensive income attributable to the non-controlling interests | 29.3 | (4.6) | (0.0) | 0.6 | 25.2 |
Total of other comprehensive income (including non-controlling interests) | 67.5 | (9.3) | (0.2) | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 66.4 | (10.8) | (47.3) | ||
Total comprehensive income attributable to the non-controlling interests | 54.9 | (11.7) | (9.6) | 11.5 | 45.1 |
Total comprehensive income (including non-controlling interests) | 121.3 | (22.6) | (56.9) | ||
Dividends paid to the non-controlling interests | 152.1 | - | - | ||
Net cash flows from operating activities | (86.5) | 11.6 | (19.3) | ||
Net cash flows from investing activities | 167.5 | (24.6) | (428.4) | ||
Net cash flows from financing activities | (259.0) | 4.7 | 411.6 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (14.9) | - | 0.7 | ||
Increase/decrease of cash and cash equivalents | (193.0) | (8.3) | (35.4) |
In EUR\u00a0million | Imerys | Webhelp | Canyon | Sanoptis | Subsidiaries that are not individually material | 2022 |
Ownership percentage held by non-controlling interests | 45.0% | 38.7% | 50.4% | 16.5% | ||
Voting rights held by non-controlling interests | 31.9% | 38.7% | 50.4% | 37.0% | ||
Non-current assets | 4,357.4 | 3,505.6 | 751.7 | 1,846.8 | ||
Current assets | 3,513.6 | 990.6 | 483.9 | 176.7 | ||
Non-current liabilities | 2,465.6 | 3,879.3 | 367.1 | 1,100.2 | ||
Current liabilities | 2,020.0 | 792.1 | 123.2 | 77.5 | ||
Non-controlling interests | 47.5 | 1.0 | - | 5.0 | ||
Equity (group\u2019s share) | 3,337.9 | (176.2) | 745.2 | 841.1 | ||
Non-controlling interests (including those of the subsidiary) | 1,550.4 | 1.0 | 362.4 | 140.5 | 45.7 | 2,100.0 |
Turnover | 4,281.6 | 2,485.3 | 644.9 | 180.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 130.4 | (388.2) | 11.0 | (20.7) | ||
Net result of the period attributable to the non-controlling interests | 124.0 | 17.2 | 11.8 | (4.1) | 3.2 | 152.2 |
Net result of the period (including non-controlling interests) | 254.4 | (371.0) | 22.8 | (24.8) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 7.9 | 26.9 | (0.2) | 2.2 | ||
Other comprehensive income attributable to the non-controlling interests | 15.9 | 17.2 | (0.2) | 0.4 | 0.2 | 33.5 |
Total of other comprehensive income (including non-controlling interests) | 23.8 | 44.1 | (0.4) | 2.6 | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 138.2 | (361.3) | 10.8 | (18.5) | ||
Total comprehensive income attributable to the non-controlling interests | 139.9 | 34.4 | 11.7 | (3.6) | 3.4 | 185.7 |
Total comprehensive income (including non-controlling interests) | 278.2 | (326.9) | 22.4 | (22.2) | ||
Dividends paid to the non-controlling interests | 65.3 | - | - | - | ||
Net cash flows from operating activities | 440.7 | 276.3 | (111.9) | 77.9 | ||
Net cash flows from investing activities | (311.3) | (301.4) | 7.2 | (187.9) | ||
Net cash flows from financing activities | 76.2 | (0.5) | 96.0 | 188.2 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (3.0) | (9.5) | - | 9.7 | ||
Increase/decrease of cash and cash equivalents | 202.6 | (35.2) | (8.7) | 88.0 |
3.3\tRevaluation reserves
These reserves include the changes in the fair value of other equity investments whose changes in fair value are recorded through equity.
In 2023, the disposals of the remaining stakes in Holcim and Mowi, the partial disposal of Pernod Ricard and the disposal of the securities underlying the exchangeable bonds in GEA shares (matured in December\u00a02023) resulted in a reclassification to retained earnings\u00a0of\u00a0EUR\u00a0-\u00a045\u00a0million, EUR\u00a05\u00a0million, EUR\u00a0-\u00a087\u00a0million and EUR\u00a036\u00a0million respectively. In 2022, following\u00a0the\u00a0partial disposals of Mowi and Pernod\u00a0Ricard, the cumulated revaluation reserves of EUR\u00a075\u00a0million and EUR\u00a0297\u00a0million respectively were reclassified to retained earnings.
In EUR\u00a0million | SGS | Pernod Ricard | adidas | Umicore | Mowi | Holcim | GEA | Concentrix + Webhelp | Voodoo | Ontex | TotalEnergies | Other | Total |
As of December 31, 2021 | 1,670.0 | 3,384.4 | 2,361.2 | 607.9 | 156.8 | 104.2 | 141.5 | - | (2.2) | (339.4) | 5.6 | (43.5) | 8,046.6 |
Change resulting from the change in fair value | (1,096.8) | (556.8) | (1,724.5) | (56.1) | (88.4) | 47.4 | (112.4) | - | 6.7 | (12.3) | 3.7 | (29.2) | (3,618.6) |
Transfers to consolidated reserves in case of disposal | - | (296.7) | - | - | (75.0) | - | - | - | - | - | - | 69.9 | (301.8) |
As of December 31, 2022 | 573.1 | 2,530.8 | 636.7 | 551.8 | (6.5) | 151.6 | 29.2 | - | 4.5 | (351.7) | 9.3 | (2.7) | 4,126.1 |
Change resulting from the change in fair value | (324.9) | (407.2) | 777.6 | (369.6) | 1.3 | (106.2) | (64.6) | 169.8 | 14.2 | 22.5 | 0.8 | 0.2 | (285.9) |
Transfers to consolidated reserves in case of disposal | - | (86.9) | - | - | 5.2 | (45.4) | 35.6 | - | - | - | - | - | (91.6) |
As of December 31, 2023 | 248.2 | 2,036.8 | 1,414.4 | 182.2 | - | - | 0.2 | 169.8 | 18.8 | (329.3) | 10.1 | (2.5) | 3,748.7 |
Note 30Subsidiaries in which GBL holds significant non-controlling interests
The tables below present concise financial information about each of the subsidiaries in which GBL holds significant non-controlling interests, without taking intragroup eliminations into account.
In EUR\u00a0million | Imerys | Canyon | Sanoptis | Subsidiaries that are not individually material | 2023 |
Ownership percentage held by non-controlling interests | 45.1% | 50.0% | 16.8% | ||
Voting rights held by non-controlling interests | 31.9% | 50.0% | 38.0% | ||
Non-current assets | 4,469.7 | 749.6 | 2,294.2 | ||
Current assets | 2,682.2 | 475.6 | 182.4 | ||
Non-current liabilities | 2,497.6 | 373.3 | 1,590.5 | ||
Current liabilities | 1,497.0 | 136.9 | 113.6 | ||
Non-controlling interests | 33.3 | - | - | ||
Equity (group\u2019s share) | 3,124.0 | 714.9 | 772.6 | ||
Non-controlling interests (including those of the subsidiary) | 1,442.1 | 346.9 | 128.9 | 60.1 | 1,978.0 |
Turnover | 3,794.4 | 790.6 | 494.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 28.2 | (6.2) | (47.1) | ||
Net result of the period attributable to the non-controlling interests | 25.6 | (7.1) | (9.6) | 10.9 | 19.9 |
Net result of the period (including non-controlling interests) | 53.8 | (13.3) | (56.7) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 38.2 | (4.6) | (0.1) | ||
Other comprehensive income attributable to the non-controlling interests | 29.3 | (4.6) | (0.0) | 0.6 | 25.2 |
Total of other comprehensive income (including non-controlling interests) | 67.5 | (9.3) | (0.2) | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 66.4 | (10.8) | (47.3) | ||
Total comprehensive income attributable to the non-controlling interests | 54.9 | (11.7) | (9.6) | 11.5 | 45.1 |
Total comprehensive income (including non-controlling interests) | 121.3 | (22.6) | (56.9) | ||
Dividends paid to the non-controlling interests | 152.1 | - | - | ||
Net cash flows from operating activities | (86.5) | 11.6 | (19.3) | ||
Net cash flows from investing activities | 167.5 | (24.6) | (428.4) | ||
Net cash flows from financing activities | (259.0) | 4.7 | 411.6 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (14.9) | - | 0.7 | ||
Increase/decrease of cash and cash equivalents | (193.0) | (8.3) | (35.4) |
In EUR\u00a0million | Imerys | Webhelp | Canyon | Sanoptis | Subsidiaries that are not individually material | 2022 |
Ownership percentage held by non-controlling interests | 45.0% | 38.7% | 50.4% | 16.5% | ||
Voting rights held by non-controlling interests | 31.9% | 38.7% | 50.4% | 37.0% | ||
Non-current assets | 4,357.4 | 3,505.6 | 751.7 | 1,846.8 | ||
Current assets | 3,513.6 | 990.6 | 483.9 | 176.7 | ||
Non-current liabilities | 2,465.6 | 3,879.3 | 367.1 | 1,100.2 | ||
Current liabilities | 2,020.0 | 792.1 | 123.2 | 77.5 | ||
Non-controlling interests | 47.5 | 1.0 | - | 5.0 | ||
Equity (group\u2019s share) | 3,337.9 | (176.2) | 745.2 | 841.1 | ||
Non-controlling interests (including those of the subsidiary) | 1,550.4 | 1.0 | 362.4 | 140.5 | 45.7 | 2,100.0 |
Turnover | 4,281.6 | 2,485.3 | 644.9 | 180.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 130.4 | (388.2) | 11.0 | (20.7) | ||
Net result of the period attributable to the non-controlling interests | 124.0 | 17.2 | 11.8 | (4.1) | 3.2 | 152.2 |
Net result of the period (including non-controlling interests) | 254.4 | (371.0) | 22.8 | (24.8) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 7.9 | 26.9 | (0.2) | 2.2 | ||
Other comprehensive income attributable to the non-controlling interests | 15.9 | 17.2 | (0.2) | 0.4 | 0.2 | 33.5 |
Total of other comprehensive income (including non-controlling interests) | 23.8 | 44.1 | (0.4) | 2.6 | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 138.2 | (361.3) | 10.8 | (18.5) | ||
Total comprehensive income attributable to the non-controlling interests | 139.9 | 34.4 | 11.7 | (3.6) | 3.4 | 185.7 |
Total comprehensive income (including non-controlling interests) | 278.2 | (326.9) | 22.4 | (22.2) | ||
Dividends paid to the non-controlling interests | 65.3 | - | - | - | ||
Net cash flows from operating activities | 440.7 | 276.3 | (111.9) | 77.9 | ||
Net cash flows from investing activities | (311.3) | (301.4) | 7.2 | (187.9) | ||
Net cash flows from financing activities | 76.2 | (0.5) | 96.0 | 188.2 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (3.0) | (9.5) | - | 9.7 | ||
Increase/decrease of cash and cash equivalents | 202.6 | (35.2) | (8.7) | 88.0 |
Note 5Other operating income (expenses) and employee expenses
5.1Details of other operating income (expenses)
In EUR\u00a0million | 2023 | 2022 |
Miscellaneous goods and services | (84.3) | (71.7) |
Employee expenses | (57.2) | (38.3) |
Depreciation and amortization | (6.3) | (4.6) |
Other operating expenses | 1.1 | (4.7) |
Other operating income | 20.7 | 2.0 |
Other operating income (expenses) - investing activities | (126.0) | (117.3) |
Transport costs | (521.0) | (691.8) |
Subcontracting costs | (140.4) | (129.2) |
Operating leases | (81.1) | (41.4) |
Fees | (125.9) | (181.0) |
Various taxes | (33.8) | (39.8) |
Other operating expenses | (664.8) | (537.0) |
Other operating income | 105.9 | 89.5 |
Share of profit (loss) of associates and joint ventures belonging to consolidated operating activities | 94.5 | 32.6 |
Other operating income (expenses) - operating activities\u00a0 | (1,366.7) | (1,498.0) |
Other operating expenses related to operating activities mainly consist of Imerys\u2019 maintenance and repair expenses (EUR\u00a096\u00a0million and EUR\u00a0119\u00a0million in 2023 and 2022 respectively), restructuring expenses (EUR\u00a034\u00a0million in 2023 and EUR\u00a021\u00a0million in 2022) and research and development costs (EUR\u00a044\u00a0million and EUR\u00a042\u00a0million in 2023 and 2022 respectively).
5.2Details of employee expenses
In EUR\u00a0million | 2023 | 2022 |
Remuneration | (48.4) | (36.0) |
Social security contributions | (7.9) | (6.2) |
Costs related to stock options | 3.1 | 9.4 |
Contributions to pension plans\u00a0 | (1.7) | (2.9) |
Other | (2.3) | (2.6) |
Employee expenses - investing activities | (57.2) | (38.3) |
Remuneration | (1,233.0) | (962.9) |
Social security contributions | (230.7) | (177.3) |
Costs related to stock options | (14.0) | (16.2) |
Contributions to pension plans\u00a0 | (27.9) | (34.4) |
Other | (184.5) | (67.1) |
Employee expenses - consolidated operating activities | (1,690.2) | (1,258.0) |
The details of the remuneration of GBL\u2019s directors are shown in Note 32. The stock option plans are detailed in Note 27.
Note 6Gains (losses) on disposals, impairments and reversals of non-current assets related to operating activities
In EUR\u00a0million | 2023 | 2022 |
Impairment on intangible assets and goodwill | (5.4) | (108.0) |
Impairment on property, plant and equipment, net of reversals | (209.4) | (18.0) |
Reversal of impairment on other non-current assets | (3.4) | 1.0 |
Capital gain/(loss) realized on disposals of investments and activities | (7.1) | 12.5 |
Total | (225.3) | (112.5) |
The impairments on intangible assets, goodwill and property, plant and equipment are detailed in the Notes 9, 10, 11 and 24.
Note 7Financial income (expenses)In EUR\u00a0million | 2023 | 2022 |
Interest income on cash and cash equivalents, non-current assets or other | 36.5 | (7.7) |
Interest expenses on financial liabilities | (67.0) | (27.0) |
Gains (losses) on trading securities and derivatives | 122.1 | 124.0 |
Change in the fair value of other equity investments recognized at fair value through profit or loss | 187.6 | (487.1) |
Other financial income | 17.2 | 13.0 |
Other financial expenses | (15.4) | (10.7) |
Financial income (expenses) - investing activities | 280.9 | (395.5) |
Interest income on cash and cash equivalents and non-current assets | 10.6 | 6.5 |
Interest expenses on financial liabilities | (215.9) | (102.0) |
Gains (losses) on trading securities and derivatives | 4.8 | (1.8) |
Other financial income | 72.9 | 36.2 |
Other financial expenses | (100.8) | (51.7) |
Financial income (expenses) - operating activities\u00a0 | (228.4) | (112.7) |
Financial income (expenses) from investing activities total EUR\u00a0281\u00a0million (compared to EUR\u00a0- 395\u00a0million in 2022). They mainly consist of (i) the changes in fair value of other equity investments recognized at fair value in profit or loss for EUR\u00a0188\u00a0million (EUR\u00a0- 487\u00a0million in 2022), (ii) a total net income of EUR\u00a070\u00a0million related to the mark to market of the derivative component associated to the exchangeable bonds into GEA shares, to the exchangeable bonds into Pernod Ricard shares and the convertible bonds into GBL shares (a net income of EUR\u00a098\u00a0million 2022), (iii) the result of yield enhancement for EUR\u00a019\u00a0million in 2023, including EUR\u00a06\u00a0million in revenues generated in 2023 and EUR\u00a013\u00a0million in mark-to-market (against EUR\u00a09\u00a0million in 2022) and (iv) the interest charges on GBL\u2019s indebtedness for EUR\u00a0-\u00a064\u00a0million (EUR\u00a0-\u00a026\u00a0million in 2022).
Financial income (expenses) from consolidated operating activities essentially result from interest expenses on Affidea\u2019s, Sanoptis\u2019 and Imerys\u2019 indebtedness for EUR\u00a076\u00a0million, EUR\u00a076\u00a0million and EUR\u00a041\u00a0million respectively (EUR\u00a026\u00a0million, EUR\u00a023\u00a0million and EUR\u00a038\u00a0million in 2022 respectively).
Note 8TurnoverThe table below presents the split of the revenue into sales of goods, services provided and other:
In EUR\u00a0million | 2023 | 2022 |
Sales of goods | 4,361.3 | 4,638.0 |
Services provided | 1,773.2 | 966.2 |
Other | 2.7 | 19.1 |
Total | 6,137.3 | 5,623.3 |
The table below presents the split by cash generating unit:
In EUR\u00a0million | 2023 | 2022 |
Performance Materials | 2,341.0 | 2,599.7 |
Refractory, Abrasives & Construction | 1,232.7 | 1,434.4 |
Other | 220.7 | 247.5 |
Imerys | 3,794.4 | 4,281.6 |
Canyon | 790.6 | 644.9 |
Affidea | 851.8 | 306.6 |
Sanoptis | 494.1 | 180.1 |
Vanreusel | 82.5 | 72.5 |
Sienna Gestion | 58.7 | 38.6 |
Sausalitos | 33.2 | 46.7 |
Sienna Real Estate | 19.3 | 15.5 |
Sienna Private Credit | 12.6 | 8.6 |
Indo | - | 28.4 |
GBL Capital and SIM | 206.4 | 210.2 |
Total | 6,137.3 | 5,623.3 |
The breakdown of the group\u2019s turnover by geographic region is as follows:
In EUR\u00a0million | 2023 | 2022 |
Belgium | 161.8 | 149.2 |
Other European countries | 3,616.1 | 2,898.1 |
Americas | 1,383.6 | 1,485.9 |
Asia | 791.6 | 924.7 |
Other | 184.1 | 165.4 |
Total | 6,137.3 | 5,623.3 |
The following table presents a different breakdown of revenue by the time at which goods and services are transferred to customers, distinguishing between goods and services transferred to customers at a given point in time and services transferred to customers over time:
In EUR\u00a0million | 2023 | 2018 |
Goods and services transferred to customers at a specific time | 4,366.6 | 4,768.5 |
Services progressively transferred to customers | 1,770.7 | 854.8 |
Total | 6,137.3 | 5,623.3 |
At Imerys\u2019 level, main contributor to the turnover, the breakdown of revenue by geographical location of its operations and geographical location of its customers is as follows:
In EUR\u00a0million | 2023 | 2022 |
Turnover breakdown by geographic areas | ||
Europe | 1,975.3 | 2,204.1 |
Asia-Oceania | 521.7 | 616.5 |
North America | 1,063.4 | 1,215.4 |
Other | 234.0 | 245.6 |
Total | 3,794.4 | 4,281.6 |
In EUR\u00a0million | 2023 | 2022 |
Turnover breakdown by geographic areas of the customers | ||
Europe | 1,690.4 | 1,868.2 |
Asia-Oceania | 760.3 | 903.5 |
North America | 1,014.9 | 1,149.7 |
Other | 328.8 | 360.2 |
Total | 3,794.4 | 4,281.6 |
Note 9Intangible assets
In EUR\u00a0million | Software | Mining rights | Patents, licenses and concessions | Trade-marks | Customer relations | Other | Total |
Gross carrying amount\u00a0 | |||||||
As of December 31, 2021 | 266.5 | 2.8 | 235.5 | 479.1 | 821.6 | 269.2 | 2,074.6 |
Investments | 29.0 | 0.2 | 0.8 | - | - | 55.3 | 85.3 |
Changes in group structure/business combinations | 8.2 | - | 13.4 | 86.0 | 713.2 | 542.9 | 1,363.6 |
Transfers between categories | 14.0 | - | (3.2) | - | - | (12.5) | (1.8) |
Disposals and retirements | (9.7) | - | (7.8) | (10.2) | (19.7) | (6.3) | (53.7) |
Foreign currency translation adjustments | 1.1 | 0.0 | (3.3) | - | 4.3 | 1.7 | 3.8 |
Other | (11.6) | (0.4) | (35.7) | (0.1) | (0.3) | (16.7) | (64.7) |
As of December 31, 2022 | 297.4 | 2.6 | 199.8 | 554.8 | 1,519.1 | 833.5 | 3,407.2 |
Investments | 14.8 | 3.7 | 2.0 | 0.0 | - | 69.7 | 90.2 |
Changes in group structure/Business combinations | 0.1 | - | 0.5 | 1.2 | 59.4 | 66.7 | 127.9 |
Transfers between categories | 39.4 | 1.0 | (23.8) | 12.4 | 91.7 | (118.4) | 2.3 |
Disposals and retirements | (25.3) | - | (0.2) | (0.2) | (22.6) | (29.9) | (78.2) |
Foreign currency translation adjustments | (0.8) | 0.0 | 0.0 | 0.1 | 0.6 | (0.2) | (0.2) |
Other | (122.9) | - | (10.2) | (182.7) | (764.9) | (27.2) | (1,108.0) |
As of December 31, 2023 | 202.7 | 7.3 | 168.1 | 385.6 | 883.2 | 794.1 | 2,441.1 |
Cumulated amortization | |||||||
As of December 31, 2021 | (175.3) | (0.7) | (38.6) | (12.2) | (109.0) | (128.8) | (464.6) |
Amortization | (32.5) | (0.2) | (2.6) | (15.2) | (85.8) | (24.8) | (161.1) |
Impairment (losses)/reversals | - | - | - | - | - | (0.1) | (0.1) |
Transfers between categories | (2.9) | - | 2.6 | - | - | 1.9 | 1.6 |
Disposals and retirements | 10.2 | - | 7.1 | 4.0 | 7.7 | 0.3 | 29.3 |
Foreign currency translation adjustments | (1.2) | (0.0) | (0.1) | - | 0.6 | (1.1) | (1.9) |
Changes in group structure/Other | 6.7 | 0.1 | 6.4 | - | 0.1 | 11.9 | 25.1 |
As of December 31, 2022 | (195.1) | (0.7) | (25.2) | (23.4) | (186.4) | (140.7) | (571.6) |
Amortization | (25.8) | (0.3) | (2.7) | (18.4) | (66.7) | (14.6) | (128.5) |
Impairment (losses)/reversals | (0.2) | - | - | - | - | (0.0) | (0.2) |
Transfers between categories | (2.3) | (0.3) | 2.6 | - | (42.5) | 44.3 | 1.8 |
Disposals and retirements | 25.3 | - | 0.2 | - | 11.1 | 25.3 | 61.9 |
Foreign currency translation adjustments | 1.0 | (0.0) | (0.1) | (0.0) | 1.6 | 0.1 | 2.6 |
Changes in group structure/Other | 83.2 | 0.0 | 5.1 | 11.3 | 159.2 | 7.6 | 266.3 |
As of December 31, 2023 | (113.9) | (1.3) | (20.1) | (30.6) | (123.8) | (78.0) | (367.7) |
Net carrying amount\u00a0 | |||||||
As of December 31, 2021 | 91.1 | 2.1 | 196.8 | 466.9 | 712.7 | 140.5 | 1,610.0 |
As of December 31, 2022 | 102.3 | 1.9 | 174.5 | 531.4 | 1,332.7 | 692.8 | 2,835.6 |
As of December 31, 2023 | 88.9 | 6.0 | 148.0 | 355.0 | 759.4 | 716.0 | 2,073.5 |
Of which: Holding | 1.0 | - | - | - | - | - | 1.0 |
Imerys | 68.3 | 6.0 | 138.5 | - | 35.0 | 85.5 | 333.3 |
Canyon | 6.4 | - | 2.6 | 276.2 | 27.5 | 39.2 | 351.9 |
Affidea | 9.0 | - | - | 73.3 | 521.2 | - | 603.5 |
Sanoptis | 1.2 | - | 0.4 | 5.5 | 149.6 | 585.1 | 741.9 |
GBL Capital and SIM | 3.0 | - | 6.3 | - | 26.2 | 6.4 | 41.8 |
The intangible assets with an indefinite useful life amount to EUR\u00a0557\u00a0million as of December\u00a031, 2023 \u2013 presented under the heading \u201cOther\u201d (EUR\u00a0653\u00a0million as of December\u00a031, 2022 \u2013 presented under the heading \u201cTrademarks\u201d and \u201cOther\u201d). These include the valuation at Sanoptis of the rights to receive insured patients for EUR\u00a0557\u00a0million (EUR\u00a0498\u00a0million s of December\u00a031, 2022). Intangible assets with finite useful lives mainly relate to customer relationships (EUR\u00a0521\u00a0million at Affidea and EUR\u00a0150\u00a0million at Sanoptis) and trademarks (EUR\u00a0276\u00a0million at Canyon).
The depreciation charges for the various periods are shown under \u201cOther operating income (expenses) from investing activities\u201d and \u201cDepreciation/ amortization of property, plant, equipment and intangible assets \u2013 consolidated operating activities\u201d in the consolidated income statement.
Research and development costs in 2023 amounted to EUR\u00a044\u00a0million (EUR\u00a042\u00a0million in 2022).
The line \u201cOther\u201d in 2023 includes mainly the reclassification of intangible assets of Webhelp to \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Regarding the emission rights, Imerys is subject to greenhouse gas regulation schemes at eleven of its facilities in Europe and one facility in the US. In 2023 and 2022, Imerys used all the emission rights allocated to its eligible facilities. As the estimated volume of greenhouse gas emissions exceeded the emission rights in 2023, the group made a provision of EUR\u00a08\u00a0million at December\u00a031, 2023 to cover the deficit (EUR\u00a04\u00a0million at December\u00a031, 2022). In addition, the carrying amount of emission rights acquired on the market was EUR\u00a015\u00a0million as of December\u00a031, 2023 (EUR\u00a08\u00a0million as of December\u00a031, 2022).
Note 10Goodwill
In EUR\u00a0million | 2023 | 2022 |
Gross carrying amount\u00a0 | ||
As of January 1 | 6,359.1 | 4,750.6 |
Changes in group structure/Business combinations | 285.3 | 1,916.1 |
Foreign currency translation adjustments | 6.7 | 45.4 |
Subsequent value adjustments | 3.3 | 3.6 |
Disposals | (74.2) | (42.0) |
Other | (2,015.9) | (314.5) |
As of December\u00a031 | 4,564.3 | 6,359.1 |
Cumulated impairment losses | ||
As of January 1 | (100.6) | (96.3) |
Impairment losses | (5.4) | (123.4) |
Foreign currency translation adjustments | 3.9 | (2.9) |
Other | (101.5) | 122.0 |
As of December\u00a031 | (203.6) | (100.6) |
Net carrying amount as of December, 31 | 4,360.7 | 6,258.5 |
Of which: Holding | - | - |
Imerys | 1,839.1 | 1,852.2 |
Webhelp | - | 2,128.3 |
Canyon | 309.1 | 309.1 |
Affidea | 936.3 | 889.2 |
Sanoptis | 1,236.6 | 965.9 |
GBL Capital and SIM | 39.7 | 113.9 |
As of December\u00a031, 2023, this caption is made up of EUR\u00a01,839\u00a0million of goodwill generated by Imerys\u2019 various business lines, EUR\u00a01,237\u00a0million of goodwill from the Sanoptis group acquisition, EUR\u00a0936\u00a0million of goodwill from the Affidea group acquisition, EUR\u00a0309\u00a0million of goodwill from the Canyon group acquisition and EUR\u00a040\u00a0million of goodwill on acquisitions by GBL Capital and Sienna Investment Managers (EUR\u00a01,852\u00a0million, EUR\u00a0966\u00a0million, EUR\u00a0889\u00a0million, EUR\u00a0309\u00a0million and EUR\u00a0114\u00a0million respectively as of December\u00a031, 2022). The heading \u201cOther\u201d in 2023 mainly reflects the reclassification of the goodwill of the Webhelp to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Definition of cash generating units (CGU)
GBL\u2019s management has retained the judgements made by Imerys, Canyon, Affidea, Sanoptis and GBL Capital and Sienna Investment Managers in\u00a0the\u00a0definition of CGUs.
For Imerys, as goodwill feeds into the business management indicators per operational segment monitored by the management, it is tested for impairment at the same levels as those monitored by the management, which are as follows: (i) Performance Minerals Europe, Middle East, Africa and Asia-Pacific (PM EMEA & APAC) and Performance Minerals Americas (PM Americas) within the Performance Minerals (PM) segment, (ii) Refractory, Abrasives & Construction (RAC) and (iii) Graphite & Carbon (IG&C). Bauxite production being designated as \u201cAssets held for sale\u201d (see Note 24), its assets are excluded from the scope of this test. Other than goodwill, all assets within Imerys including right-of-use assets net of lease liabilities and mining assets are covered within the scope of these tests.
For Canyon, the operational reporting and thus the goodwill management is carried out at the highest level, i.e., GoForGold Holding, which represents the only identified CGU.
For Affidea, the activity of the group is reported through a single CGU, the Affidea CGU.
For Sanoptis, the activity of the group is reported through a single CGU, the Sanoptis CGU.
For GBL Capital and Sienna Investment Managers, the goodwill is allocated to each investment.
In the table below, the carrying amount and the impairment loss of the goodwill are presented by CGU:
2023 | 2022 | |||
In EUR\u00a0million | Net carrying amount | Cumulated impairment losses | Net carrying amount | Cumulated impairment losses |
Sanoptis | 1,236.6 | - | 965.9 | - |
Performance Materials (Imerys) | 1,068.9 | (112.3) | 1,072.9 | (5.5) |
Affidea | 936.3 | - | 889.2 | - |
Refractory, Abrasives & Construction (Imerys) | 742.1 | (75.9) | 751.2 | (79.7) |
Canyon | 309.1 | - | 309.1 | - |
Others (Imerys) | 28.1 | - | 28.1 | - |
Sienna Gestion (SIM) | 18.3 | - | 18.3 | - |
Sienna Private Credit (SIM) | 14.4 | - | 14.4 | - |
Sienna Real Estate (SIM) | 7.0 | (15.4) | 7.0 | (15.4) |
Vanreusel (GBL Capital) | - | - | 59.2 | - |
Webhelp | - | - | 2,128.3 | - |
Sausalitos (GBL Capital) | - | - | 15.0 | - |
Total | 4,360.7 | (203.6) | 6,258.5 | (100.6) |
Impairment tests
In accordance with IAS 36, group companies conduct a yearly impairment test on all their CGUs to the extent that they report goodwill. The\u00a0recoverable amount of a CGU or an individual asset is the highest of the fair value less the costs of sale and the value in use. In practice, fair value can only be reliably estimated for individual assets and therefore corresponds to recent transaction prices for sales of similar assets. The\u00a0value in use is the most commonly used measurement basis for CGUs and individual assets.
For Imerys, the projected cash flows used in their impairment test as of December\u00a031, 2023 are based on the 2024 budget and the 2025-2027 plan. This central case was developed using external analyses of underlying markets. To calculate the terminal growth rate, Imerys uses the Gordon and Shapiro perpetual growth model. The discount rate used to calculate the value in use is determined using the weighted average cost of capital of groups comparable to Imerys in the industrial minerals sector. This rate, set at 8.00% for 2023 (8.00% for 2022), is adjusted for a country-market risk premium, which depending on the CGU or individual assets tested ranged from + 94 to + 125 bps in 2023 (+ 92 to + 174 bps in 2022). In 2023, the average discount rate after income tax amounted to 9.10% (8.89% in 2022). The calculations net of income tax are the same as those that would be performed with cash flows and rates before income tax, as required by applicable standards. The impairment tests carried out on the various Imerys CGUs did not result in the recognition of any impairment loss as of December\u00a031, 2023 and\u00a0December\u00a031, 2022.
Following the disposal of the High Temperature Solutions (HTS) line of business, Imerys has incorporated the assets of the PMAPAC CGU into the other two CGUs, PM Americas and PM EMEA & APAC. Had Imerys maintained the 2022 CGU structure and performed impairment tests on that basis, it would not have needed to recognize any impairment.
For Canyon, the projected cash flows used are based on the 2024-2028 plan. For the terminal value, Canyon uses the Gordon and Shapiro perpetual growth model. The definition of the discount rate is based on a study of the cost of capital of groups comparable to Canyon. It stands at 10.20% as of December\u00a031, 2023. (12.69% as of December\u00a031, 2022). The impairment test carried out on the Canyon CGU does not reveal any loss in value on the group\u2019s tested assets as of December\u00a031, 2023.
For Affidea, the cash flow projections used are taken from the 2024-2028 plan. For the terminal value, Affidea uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Affidea Group. The discount rate is 9.43% at December\u00a031, 2023. The impairment test performed on the Affidea CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023 and at December\u00a031,\u00a02022.
For Sanoptis, the cash flow projections used are taken from the 2024-2028 plan. For terminal value, Sanoptis uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Sanoptis Group. The discount rate is 6.82% at December\u00a031, 2023 (6.72% at December 31, 2022). The impairment test performed on the Sanoptis CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023.
For GBL Capital and SIM, the projected cash flows are derived from the financial budgets made by managements of each respective investment, covering a period of three to five years. The prepared projections are extrapolated and cover a period of ten years. For the terminal value, GBL Capital and SIM use an average of the Gordon and Shapiro perpetual growth model and multiple valuation method. The discount rate used to calculate the value in use is determined based on the weighted average cost of capital of groups comparable to each investment in their respective sector. This rate is adjusted by a country/market risk premium and a specific premium. The average discount rate after taxes is 11.07% in 2023 (11.80% in 2022). At GBL Capital and SIM, these annual tests did not reveal any impairment at December\u00a031, 2023 (EUR\u00a015\u00a0million in 2022).
In the table below, the weighted average discount and perpetual growth rates used to calculate the value in use are presented by CGU:
2023 | 2022 | |||
Discount rate | Perpetual growth rate | Discount rate | Perpetual growth rate | |
Performance Materials (Imerys)(1) | 9.21% | 2.00% | 9.06% | 1.92% |
Refractory, Abrasives & Construction (Imerys) | 8.98% | 2.08% | 8.64% | 1.98% |
Average rate Imerys | 9.10% | 2.10% | 8.89% | 1.68% |
Average rate Webhelp | - | - | 8.77% | 2.00% |
Average rate Canyon | 10.20% | 1.00% | 12.69% | 1.00% |
Average rate Affidea | 9.43% | 2.5% | - | - |
Average rate Sanoptis | 6.82% | 1.00% | 6.72% | 1.00% |
Average rate GBL Capital and SIM | 11.07% | 2.10% | 11.80% | 2.55% |
Sensitivity analysis
Of the assumptions used, those whose variation has the most significant impact on the financial statements are the forecasted cash flows, the discount rate and the perpetual growth rate. The group has carried out simulations to measure the impairment losses that would be recognized in the event of unfavorable changes in the assumptions used in the central scenario at December\u00a031, 2023. The changes used for these sensitivity tests are those that the group considers reasonably possible in the context of the test: a 5.00% decrease in forecasted cash flows; a 1.00% increase in discount rates; and a 1.00% decrease in perpetual growth rates (unchanged at December\u00a031, 2022). As summarized in the table below, the sensitivities performed on the central scenario show a total impairment of EUR\u00a0- 47\u00a0million in case of a 5.00% decrease of the forecasted cash flows, EUR\u00a0-\u00a045\u00a0million in case of a 1.00% increase of the discount rates and a total impairment of EUR\u00a00\u00a0million in case of a 1.00% decrease of the perpetual growth rates.
In EUR\u00a0million | Adverse changes |
Forecasted cash flows\u00a0 | (5%) |
Impairment loss\u00a0 | (46.6) |
Discount rates | + 100 bps |
Impairment loss\u00a0 | (45.0) |
Perpetual growth rates | (100 bps) |
Impairment loss\u00a0 | - |
In addition, Imerys carried out a sensitivity exercise incorporating the risks of climate change in the context of a global warming of + 2 degrees Celsius by 2050, as projected by the International Energy Agency (IEA) in its Stated Policies scenario published in the World Energy Outlook in 2019. This scenario, which is one of the three trajectories modeled by the IEA, was chosen by Imerys for this sensitivity exercise because it is reasonably possible. The risks taken into account in this model are heat waves as identified by the S&P Global Trucost Assessment, fires as identified by the FM\u00a0Global Assessment and the Angstr\u00f6m Index and droughts as identified by the Water Risk Filter of the World Wild Fund for Nature and the Deutsche Investitions- und Entwicklungsgesellschaft. The sites included in the sensitivity exercise are those whose risks are known to be uninsurable in the long term, according to the latest known information as of December\u00a031, 2023, as well as those whose risks are normally insurable but specifically known to be uninsurable due to specific climatic conditions. On this basis, Imerys has estimated for each site the foreseeable frequency of closure and the corresponding cash flow losses. As a result of this work, the sensitivity of the risks and opportunities related to climate issues does not highlight any impairment.
(1) Discount and perpetual growth rates have been restated to make them comparable following changes in CGUs in 2023
Note 11Property, plant and equipment
In EUR\u00a0million | Land and buildings | Mineral reserves | Fittings, machinery, equipment and rolling stock | Right-of-use assets | Assets under construction | Other property, plant and equipment | Total |
Gross carrying amount | |||||||
As of December 31, 2021 | 601.6 | 966.1 | 4,400.2 | 694.5 | 262.6 | 254.5 | 7,179.5 |
Investments | 13.3 | 72.1 | 119.1 | 290.2 | 255.1 | 85.4 | 835.2 |
Changes in group structure/Business combinations | 243.0 | - | 468.9 | 421.9 | 10.8 | 104.0 | 1,248.7 |
Disposals and retirements | (21.6) | (0.2) | (92.0) | (35.6) | (1.8) | (25.5) | (176.6) |
Foreign currency translation adjustments | 6.4 | 26.7 | 30.0 | (10.8) | 6.9 | (6.3) | 52.8 |
Other | (113.5) | (88.2) | (908.9) | (109.9) | (262.3) | 308.0 | (1,174.9) |
As of December 31, 2022 | 729.2 | 976.4 | 4,017.3 | 1,250.3 | 271.3 | 720.1 | 7,964.6 |
Investments | 18.4 | 61.7 | 96.6 | 165.2 | 279.6 | 54.9 | 676.5 |
Changes in group structure/Business combinations | 16.4 | 0.4 | 16.0 | 78.2 | 0.1 | 5.8 | 117.0 |
Disposals and retirements | (6.0) | (12.0) | (154.7) | (88.1) | (1.6) | (25.8) | (288.2) |
Foreign currency translation adjustments | (1.4) | (15.4) | (30.9) | (0.1) | (1.7) | (1.8) | (51.3) |
Other | 23.0 | (49.2) | 365.5 | (437.9) | (213.8) | (328.0) | (640.4) |
As of December 31, 2023 | 779.6 | 961.9 | 4,309.8 | 967.8 | 333.9 | 425.2 | 7,778.2 |
Cumulated depreciation | |||||||
As of December 31, 2021 | (277.5) | (547.0) | (3,193.0) | (229.9) | (24.1) | (158.0) | (4,429.5) |
Depreciation | (24.8) | (57.0) | (186.6) | (153.9) | (1.7) | (78.1) | (502.0) |
Impairment (losses)/reversals | (2.3) | - | 0.0 | - | - | 1.5 | (0.8) |
Disposals and retirements | 12.8 | 0.2 | 71.8 | 29.8 | 0.3 | 24.1 | 138.9 |
Foreign currency translation adjustments | (4.6) | (16.8) | (23.3) | 2.1 | (1.8) | 3.0 | (41.4) |
Changes in group structure/Other | (77.1) | 59.7 | 452.5 | (30.9) | 22.7 | (268.2) | 158.7 |
As of December 31, 2022 | (373.3) | (560.9) | (2,878.5) | (382.8) | (4.6) | (475.7) | (4,675.9) |
Depreciation | (27.1) | (50.0) | (191.0) | (138.4) | 0.7 | (44.5) | (450.2) |
Impairment (losses)/reversals | (16.0) | (33.5) | (141.6) | (5.0) | (10.8) | (2.3) | (209.2) |
Disposals and retirements | 4.1 | 11.7 | 133.8 | 41.1 | - | 25.2 | 215.9 |
Foreign currency translation adjustments | (0.1) | 8.3 | 22.0 | 1.8 | 0.1 | 1.9 | 34.1 |
Changes in group structure/Other | 0.5 | 53.6 | (159.1) | 185.9 | 1.0 | 202.5 | 284.3 |
As of December 31, 2023 | (411.9) | (570.9) | (3,214.4) | (297.2) | (13.8) | (293.0) | (4,801.2) |
Net carrying amount\u00a0 | |||||||
As of December 31, 2021 | 324.1 | 419.0 | 1,207.2 | 464.7 | 238.5 | 96.5 | 2,750.0 |
As of December 31, 2022 | 355.8 | 415.5 | 1,138.7 | 867.5 | 266.7 | 244.4 | 3,288.6 |
As of December 31, 2023 | 367.6 | 391.1 | 1,095.4 | 670.5 | 320.1 | 132.2 | 2,976.9 |
Of which: Holding | - | - | 1.0 | 10.8 | - | 1.8 | 13.6 |
Imerys | 231.5 | 391.1 | 915.7 | 151.4 | 287.3 | 41.4 | 2,018.4 |
Canyon | 2.8 | - | 21.2 | 41.9 | 0.3 | - | 66.2 |
Affidea | 123.7 | - | 104.1 | 307.1 | 29.3 | 12.3 | 576.5 |
Sanoptis | 9.6 | - | 52.8 | 139.5 | 3.2 | 75.1 | 280.2 |
GBL Capital and SIM | - | - | 0.5 | 19.9 | - | 1.6 | 22.0 |
The depreciation charges for the various periods are shown under \u201cOther operating income (expenses) from investing activities\u201d and\u201cDepreciation/amortization of property, plant, equipment and intangible assets\u2013consolidated operating activities\u201d in the consolidated income\u00a0statement.
In 2023, impairment losses net of reversals were recognized by Imerys on its property, plant and equipment in the amount of EUR\u00a0209\u00a0million (EUR\u00a018\u00a0million in 2022). Impairment losses recognized in 2023 mainly concern operations serving the paper market and the restructuring of industrial assets serving the Refractories market in China and Europe.
The item \u201cChanges in group structure/Business combination\u201d in 2023 mainly includes the reclassification of Webhelp\u2019s property, plant and equipment to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Leases
The group uses leases to obtain from the lessor the right to use certain mining, industrial and logistics equipment, as well as real estate administrative, industrial and logistical property. As of December\u00a031, 2023, the value of these rights, recognized in\u201cRight-of-use assets\u201d, amounted to EUR\u00a0670million (EUR\u00a0868\u00a0million as of December\u00a031, 2022).\u201cRight-of-use assets\u201d represent the following assets:
In EUR\u00a0million | Land and buildings | Mineral reserves | Plants, machinery, equipment and rolling stock | Assets under construction | Other property, plant and equipment | Total |
Gross carrying amount | ||||||
As of December 31, 2021 | 474.7 | - | 101.0 | - | 118.8 | 694.5 |
Investments | 222.1 | - | 41.0 | - | 27.2 | 290.2 |
Changes in group structure/Business combinations | 298.2 | - | 114.0 | - | 9.7 | 421.9 |
Disposals and retirements | (32.3) | - | (6.1) | - | 2.7 | (35.6) |
Foreign currency translation adjustments | 1.5 | - | (16.8) | - | 4.5 | (10.8) |
Other | (78.6) | - | (21.1) | - | (10.1) | (109.9) |
As of December 31, 2022 | 885.6 | - | 211.9 | - | 152.8 | 1,250.3 |
Investments | 94.7 | - | 48.6 | - | 22.0 | 165.2 |
Changes in group structure/Business combinations | 77.1 | - | 0.1 | - | 1.0 | 78.2 |
Disposals and retirements | (17.6) | - | (1.0) | - | (69.6) | (88.1) |
Foreign currency translation adjustments | (0.2) | - | 0.7 | - | (0.6) | (0.1) |
Other | (396.7) | - | (33.2) | - | (8.1) | (437.9) |
As of December 31, 2023 | 643.0 | - | 227.2 | - | 97.5 | 967.8 |
Cumulated depreciation | ||||||
As of December 31, 2021 | (129.9) | - | (51.7) | - | (48.2) | (229.9) |
Depreciation | (104.9) | - | (26.0) | - | (22.9) | (153.9) |
Impairment (losses)/reversals | 0.2 | - | (0.1) | - | (0.1) | - |
Disposals and retirements | 27.4 | - | 2.4 | - | - | 29.8 |
Foreign currency translation adjustments | (10.9) | - | 17.6 | - | (4.6) | 2.1 |
Changes in group structure/Other | (16.8) | - | (19.0) | - | 4.9 | (30.9) |
As of December 31, 2022 | (234.9) | - | (76.9) | - | (71.0) | (382.8) |
Depreciation | (91.8) | - | (29.0) | - | (17.6) | (138.4) |
Impairment (losses)/reversals | - | - | - | - | (5.0) | (5.0) |
Disposals and retirements | 13.9 | - | 0.9 | - | 26.2 | 41.1 |
Foreign currency translation adjustments | 0.9 | - | 0.2 | - | 0.8 | 1.8 |
Changes in group structure/Other | 158.0 | - | 22.0 | - | 5.9 | 185.9 |
As of December 31, 2023 | (153.8) | - | (82.8) | - | (60.7) | (297.2) |
Net carrying amount\u00a0 | ||||||
As of December 31, 2021 | 344.8 | - | 49.3 | - | 70.6 | 464.7 |
As of December 31, 2022 | 650.7 | - | 135.1 | - | 81.8 | 867.5 |
As of December 31, 2023 | 489.2 | - | 144.4 | - | 36.8 | 670.5 |
Of which: Holding | 10.8 | - | - | - | - | 10.8 |
Imerys | 88.1 | - | 37.7 | - | 25.6 | 151.4 |
Canyon | 40.6 | - | 1.3 | - | - | 41.9 |
Affidea | 202.5 | - | 104.5 | - | - | 307.1 |
Sanoptis | 131.7 | - | 0.5 | - | 7.2 | 139.5 |
GBL Capital and SIM | 15.3 | - | 0.3 | - | 4.3 | 19.9 |
The right-of-use and lease liability model is applied to all leases, except leases with a term of 12 months or less, leases of low-value assets and variable lease payments and services, which are recognized in expenses (EUR\u00a081\u00a0million in 2023 and EUR\u00a041\u00a0million in 2022). As of December\u00a031, 2023, \u201clease liabilities\u201d recognized against \u201cright-of-use assets\u201d amounted to EUR\u00a0683\u00a0million (EUR\u00a0908\u00a0million as of December\u00a031, 2022) and generated an interest expense of EUR\u00a028\u00a0million recognized in financial income (expenses). Cash payments made in 2023 totaled EUR\u00a0173\u00a0million, broken down as EUR\u00a0145\u00a0million for the principal and EUR\u00a028\u00a0million in interest, respectively in financing and operating activities in the consolidated statement of cash flows (respectively EUR\u00a0253\u00a0million, EUR\u00a0217\u00a0million and EUR\u00a036\u00a0million in 2022). The group does not generate any significant revenue from leasing the freehold assets it owns, nor from the sub-lease of assets leased.
Note 5Other operating income (expenses) and employee expenses
5.1Details of other operating income (expenses)
In EUR\u00a0million | 2023 | 2022 |
Miscellaneous goods and services | (84.3) | (71.7) |
Employee expenses | (57.2) | (38.3) |
Depreciation and amortization | (6.3) | (4.6) |
Other operating expenses | 1.1 | (4.7) |
Other operating income | 20.7 | 2.0 |
Other operating income (expenses) - investing activities | (126.0) | (117.3) |
Transport costs | (521.0) | (691.8) |
Subcontracting costs | (140.4) | (129.2) |
Operating leases | (81.1) | (41.4) |
Fees | (125.9) | (181.0) |
Various taxes | (33.8) | (39.8) |
Other operating expenses | (664.8) | (537.0) |
Other operating income | 105.9 | 89.5 |
Share of profit (loss) of associates and joint ventures belonging to consolidated operating activities | 94.5 | 32.6 |
Other operating income (expenses) - operating activities\u00a0 | (1,366.7) | (1,498.0) |
Other operating expenses related to operating activities mainly consist of Imerys\u2019 maintenance and repair expenses (EUR\u00a096\u00a0million and EUR\u00a0119\u00a0million in 2023 and 2022 respectively), restructuring expenses (EUR\u00a034\u00a0million in 2023 and EUR\u00a021\u00a0million in 2022) and research and development costs (EUR\u00a044\u00a0million and EUR\u00a042\u00a0million in 2023 and 2022 respectively).
5.2Details of employee expenses
In EUR\u00a0million | 2023 | 2022 |
Remuneration | (48.4) | (36.0) |
Social security contributions | (7.9) | (6.2) |
Costs related to stock options | 3.1 | 9.4 |
Contributions to pension plans\u00a0 | (1.7) | (2.9) |
Other | (2.3) | (2.6) |
Employee expenses - investing activities | (57.2) | (38.3) |
Remuneration | (1,233.0) | (962.9) |
Social security contributions | (230.7) | (177.3) |
Costs related to stock options | (14.0) | (16.2) |
Contributions to pension plans\u00a0 | (27.9) | (34.4) |
Other | (184.5) | (67.1) |
Employee expenses - consolidated operating activities | (1,690.2) | (1,258.0) |
The details of the remuneration of GBL\u2019s directors are shown in Note 32. The stock option plans are detailed in Note 27.
Note 6Gains (losses) on disposals, impairments and reversals of non-current assets related to operating activities
In EUR\u00a0million | 2023 | 2022 |
Impairment on intangible assets and goodwill | (5.4) | (108.0) |
Impairment on property, plant and equipment, net of reversals | (209.4) | (18.0) |
Reversal of impairment on other non-current assets | (3.4) | 1.0 |
Capital gain/(loss) realized on disposals of investments and activities | (7.1) | 12.5 |
Total | (225.3) | (112.5) |
The impairments on intangible assets, goodwill and property, plant and equipment are detailed in the Notes 9, 10, 11 and 24.
Note 7Financial income (expenses)In EUR\u00a0million | 2023 | 2022 |
Interest income on cash and cash equivalents, non-current assets or other | 36.5 | (7.7) |
Interest expenses on financial liabilities | (67.0) | (27.0) |
Gains (losses) on trading securities and derivatives | 122.1 | 124.0 |
Change in the fair value of other equity investments recognized at fair value through profit or loss | 187.6 | (487.1) |
Other financial income | 17.2 | 13.0 |
Other financial expenses | (15.4) | (10.7) |
Financial income (expenses) - investing activities | 280.9 | (395.5) |
Interest income on cash and cash equivalents and non-current assets | 10.6 | 6.5 |
Interest expenses on financial liabilities | (215.9) | (102.0) |
Gains (losses) on trading securities and derivatives | 4.8 | (1.8) |
Other financial income | 72.9 | 36.2 |
Other financial expenses | (100.8) | (51.7) |
Financial income (expenses) - operating activities\u00a0 | (228.4) | (112.7) |
Financial income (expenses) from investing activities total EUR\u00a0281\u00a0million (compared to EUR\u00a0- 395\u00a0million in 2022). They mainly consist of (i) the changes in fair value of other equity investments recognized at fair value in profit or loss for EUR\u00a0188\u00a0million (EUR\u00a0- 487\u00a0million in 2022), (ii) a total net income of EUR\u00a070\u00a0million related to the mark to market of the derivative component associated to the exchangeable bonds into GEA shares, to the exchangeable bonds into Pernod Ricard shares and the convertible bonds into GBL shares (a net income of EUR\u00a098\u00a0million 2022), (iii) the result of yield enhancement for EUR\u00a019\u00a0million in 2023, including EUR\u00a06\u00a0million in revenues generated in 2023 and EUR\u00a013\u00a0million in mark-to-market (against EUR\u00a09\u00a0million in 2022) and (iv) the interest charges on GBL\u2019s indebtedness for EUR\u00a0-\u00a064\u00a0million (EUR\u00a0-\u00a026\u00a0million in 2022).
Financial income (expenses) from consolidated operating activities essentially result from interest expenses on Affidea\u2019s, Sanoptis\u2019 and Imerys\u2019 indebtedness for EUR\u00a076\u00a0million, EUR\u00a076\u00a0million and EUR\u00a041\u00a0million respectively (EUR\u00a026\u00a0million, EUR\u00a023\u00a0million and EUR\u00a038\u00a0million in 2022 respectively).
The depreciation charges for the various periods are shown under \u201cOther operating income (expenses) from investing activities\u201d and \u201cDepreciation/ amortization of property, plant, equipment and intangible assets \u2013 consolidated operating activities\u201d in the consolidated income statement.Note 9Intangible assets
In EUR\u00a0million | Software | Mining rights | Patents, licenses and concessions | Trade-marks | Customer relations | Other | Total |
Gross carrying amount\u00a0 | |||||||
As of December 31, 2021 | 266.5 | 2.8 | 235.5 | 479.1 | 821.6 | 269.2 | 2,074.6 |
Investments | 29.0 | 0.2 | 0.8 | - | - | 55.3 | 85.3 |
Changes in group structure/business combinations | 8.2 | - | 13.4 | 86.0 | 713.2 | 542.9 | 1,363.6 |
Transfers between categories | 14.0 | - | (3.2) | - | - | (12.5) | (1.8) |
Disposals and retirements | (9.7) | - | (7.8) | (10.2) | (19.7) | (6.3) | (53.7) |
Foreign currency translation adjustments | 1.1 | 0.0 | (3.3) | - | 4.3 | 1.7 | 3.8 |
Other | (11.6) | (0.4) | (35.7) | (0.1) | (0.3) | (16.7) | (64.7) |
As of December 31, 2022 | 297.4 | 2.6 | 199.8 | 554.8 | 1,519.1 | 833.5 | 3,407.2 |
Investments | 14.8 | 3.7 | 2.0 | 0.0 | - | 69.7 | 90.2 |
Changes in group structure/Business combinations | 0.1 | - | 0.5 | 1.2 | 59.4 | 66.7 | 127.9 |
Transfers between categories | 39.4 | 1.0 | (23.8) | 12.4 | 91.7 | (118.4) | 2.3 |
Disposals and retirements | (25.3) | - | (0.2) | (0.2) | (22.6) | (29.9) | (78.2) |
Foreign currency translation adjustments | (0.8) | 0.0 | 0.0 | 0.1 | 0.6 | (0.2) | (0.2) |
Other | (122.9) | - | (10.2) | (182.7) | (764.9) | (27.2) | (1,108.0) |
As of December 31, 2023 | 202.7 | 7.3 | 168.1 | 385.6 | 883.2 | 794.1 | 2,441.1 |
Cumulated amortization | |||||||
As of December 31, 2021 | (175.3) | (0.7) | (38.6) | (12.2) | (109.0) | (128.8) | (464.6) |
Amortization | (32.5) | (0.2) | (2.6) | (15.2) | (85.8) | (24.8) | (161.1) |
Impairment (losses)/reversals | - | - | - | - | - | (0.1) | (0.1) |
Transfers between categories | (2.9) | - | 2.6 | - | - | 1.9 | 1.6 |
Disposals and retirements | 10.2 | - | 7.1 | 4.0 | 7.7 | 0.3 | 29.3 |
Foreign currency translation adjustments | (1.2) | (0.0) | (0.1) | - | 0.6 | (1.1) | (1.9) |
Changes in group structure/Other | 6.7 | 0.1 | 6.4 | - | 0.1 | 11.9 | 25.1 |
As of December 31, 2022 | (195.1) | (0.7) | (25.2) | (23.4) | (186.4) | (140.7) | (571.6) |
Amortization | (25.8) | (0.3) | (2.7) | (18.4) | (66.7) | (14.6) | (128.5) |
Impairment (losses)/reversals | (0.2) | - | - | - | - | (0.0) | (0.2) |
Transfers between categories | (2.3) | (0.3) | 2.6 | - | (42.5) | 44.3 | 1.8 |
Disposals and retirements | 25.3 | - | 0.2 | - | 11.1 | 25.3 | 61.9 |
Foreign currency translation adjustments | 1.0 | (0.0) | (0.1) | (0.0) | 1.6 | 0.1 | 2.6 |
Changes in group structure/Other | 83.2 | 0.0 | 5.1 | 11.3 | 159.2 | 7.6 | 266.3 |
As of December 31, 2023 | (113.9) | (1.3) | (20.1) | (30.6) | (123.8) | (78.0) | (367.7) |
Net carrying amount\u00a0 | |||||||
As of December 31, 2021 | 91.1 | 2.1 | 196.8 | 466.9 | 712.7 | 140.5 | 1,610.0 |
As of December 31, 2022 | 102.3 | 1.9 | 174.5 | 531.4 | 1,332.7 | 692.8 | 2,835.6 |
As of December 31, 2023 | 88.9 | 6.0 | 148.0 | 355.0 | 759.4 | 716.0 | 2,073.5 |
Of which: Holding | 1.0 | - | - | - | - | - | 1.0 |
Imerys | 68.3 | 6.0 | 138.5 | - | 35.0 | 85.5 | 333.3 |
Canyon | 6.4 | - | 2.6 | 276.2 | 27.5 | 39.2 | 351.9 |
Affidea | 9.0 | - | - | 73.3 | 521.2 | - | 603.5 |
Sanoptis | 1.2 | - | 0.4 | 5.5 | 149.6 | 585.1 | 741.9 |
GBL Capital and SIM | 3.0 | - | 6.3 | - | 26.2 | 6.4 | 41.8 |
Note 11Property, plant and equipment
In EUR\u00a0million | Land and buildings | Mineral reserves | Fittings, machinery, equipment and rolling stock | Right-of-use assets | Assets under construction | Other property, plant and equipment | Total |
Gross carrying amount | |||||||
As of December 31, 2021 | 601.6 | 966.1 | 4,400.2 | 694.5 | 262.6 | 254.5 | 7,179.5 |
Investments | 13.3 | 72.1 | 119.1 | 290.2 | 255.1 | 85.4 | 835.2 |
Changes in group structure/Business combinations | 243.0 | - | 468.9 | 421.9 | 10.8 | 104.0 | 1,248.7 |
Disposals and retirements | (21.6) | (0.2) | (92.0) | (35.6) | (1.8) | (25.5) | (176.6) |
Foreign currency translation adjustments | 6.4 | 26.7 | 30.0 | (10.8) | 6.9 | (6.3) | 52.8 |
Other | (113.5) | (88.2) | (908.9) | (109.9) | (262.3) | 308.0 | (1,174.9) |
As of December 31, 2022 | 729.2 | 976.4 | 4,017.3 | 1,250.3 | 271.3 | 720.1 | 7,964.6 |
Investments | 18.4 | 61.7 | 96.6 | 165.2 | 279.6 | 54.9 | 676.5 |
Changes in group structure/Business combinations | 16.4 | 0.4 | 16.0 | 78.2 | 0.1 | 5.8 | 117.0 |
Disposals and retirements | (6.0) | (12.0) | (154.7) | (88.1) | (1.6) | (25.8) | (288.2) |
Foreign currency translation adjustments | (1.4) | (15.4) | (30.9) | (0.1) | (1.7) | (1.8) | (51.3) |
Other | 23.0 | (49.2) | 365.5 | (437.9) | (213.8) | (328.0) | (640.4) |
As of December 31, 2023 | 779.6 | 961.9 | 4,309.8 | 967.8 | 333.9 | 425.2 | 7,778.2 |
Cumulated depreciation | |||||||
As of December 31, 2021 | (277.5) | (547.0) | (3,193.0) | (229.9) | (24.1) | (158.0) | (4,429.5) |
Depreciation | (24.8) | (57.0) | (186.6) | (153.9) | (1.7) | (78.1) | (502.0) |
Impairment (losses)/reversals | (2.3) | - | 0.0 | - | - | 1.5 | (0.8) |
Disposals and retirements | 12.8 | 0.2 | 71.8 | 29.8 | 0.3 | 24.1 | 138.9 |
Foreign currency translation adjustments | (4.6) | (16.8) | (23.3) | 2.1 | (1.8) | 3.0 | (41.4) |
Changes in group structure/Other | (77.1) | 59.7 | 452.5 | (30.9) | 22.7 | (268.2) | 158.7 |
As of December 31, 2022 | (373.3) | (560.9) | (2,878.5) | (382.8) | (4.6) | (475.7) | (4,675.9) |
Depreciation | (27.1) | (50.0) | (191.0) | (138.4) | 0.7 | (44.5) | (450.2) |
Impairment (losses)/reversals | (16.0) | (33.5) | (141.6) | (5.0) | (10.8) | (2.3) | (209.2) |
Disposals and retirements | 4.1 | 11.7 | 133.8 | 41.1 | - | 25.2 | 215.9 |
Foreign currency translation adjustments | (0.1) | 8.3 | 22.0 | 1.8 | 0.1 | 1.9 | 34.1 |
Changes in group structure/Other | 0.5 | 53.6 | (159.1) | 185.9 | 1.0 | 202.5 | 284.3 |
As of December 31, 2023 | (411.9) | (570.9) | (3,214.4) | (297.2) | (13.8) | (293.0) | (4,801.2) |
Net carrying amount\u00a0 | |||||||
As of December 31, 2021 | 324.1 | 419.0 | 1,207.2 | 464.7 | 238.5 | 96.5 | 2,750.0 |
As of December 31, 2022 | 355.8 | 415.5 | 1,138.7 | 867.5 | 266.7 | 244.4 | 3,288.6 |
As of December 31, 2023 | 367.6 | 391.1 | 1,095.4 | 670.5 | 320.1 | 132.2 | 2,976.9 |
Of which: Holding | - | - | 1.0 | 10.8 | - | 1.8 | 13.6 |
Imerys | 231.5 | 391.1 | 915.7 | 151.4 | 287.3 | 41.4 | 2,018.4 |
Canyon | 2.8 | - | 21.2 | 41.9 | 0.3 | - | 66.2 |
Affidea | 123.7 | - | 104.1 | 307.1 | 29.3 | 12.3 | 576.5 |
Sanoptis | 9.6 | - | 52.8 | 139.5 | 3.2 | 75.1 | 280.2 |
GBL Capital and SIM | - | - | 0.5 | 19.9 | - | 1.6 | 22.0 |
The depreciation charges for the various periods are shown under \u201cOther operating income (expenses) from investing activities\u201d and\u201cDepreciation/amortization of property, plant, equipment and intangible assets\u2013consolidated operating activities\u201d in the consolidated income\u00a0statement.
In 2023, impairment losses net of reversals were recognized by Imerys on its property, plant and equipment in the amount of EUR\u00a0209\u00a0million (EUR\u00a018\u00a0million in 2022). Impairment losses recognized in 2023 mainly concern operations serving the paper market and the restructuring of industrial assets serving the Refractories market in China and Europe.
and generated an interest expense of EUR\u00a028\u00a0million recognized in financial income (expenses). Note 13Income taxes13.1 Breakdown of the\u201cincome taxes\u201d heading
In EUR\u00a0million | 2023 | 2022 |
Current taxes | (88.5) | (122.3) |
For the current year | (106.6) | (126.7) |
For previous years | 18.1 | 4.5 |
Deferred taxes | (23.7) | 17.3 |
Related to the creation and reversal of temporary differences | (30.1) | 26.0 |
Related to changes in tax rates or new tax liabilities | 0.8 | 0.1 |
Related to the recognition/(use) of deferred tax assets resulting from losses from previous periods | 2.9 | (9.0) |
Other | 2.7 | 0.1 |
Total | (112.2) | (105.0) |
13.2\tReconciliation of the income tax expense for the year
In EUR\u00a0million | 2023 | 2022 |
Profit (loss) before income taxes from continuing operations | 499.7 | (35.3) |
Share of profit (loss) of equity-accounted entities | (138.5) | (35.9) |
Profit (loss) before income taxes and before share of profit (loss) of equity-accounted entities | 361.2 | (71.2) |
Taxes at Belgian rate (25.00% in 2023 and in 2022) | (90.3) | 17.8 |
Impact of different tax rates in foreign countries\u00a0 | (18.2) | (10.3) |
Tax impact of non-taxable income | 190.9 | 152.4 |
Tax impact of non-deductible expenses | (89.2) | (206.0) |
Tax impact of changes in tax rates for subsidiaries | 0.8 | (0.0) |
Tax impact of adjustments relating to previous years or previously unrecognized deferred tax assets | (1.3) | (1.1) |
Other | (104.9) | (57.8) |
Income tax (expense) for the year | (112.2) | (105.0) |
The corporate tax rate in Belgium was 25.00% in 2023, as in 2022.
The effective tax rate in 2023 stands at 31.06%, compared with - 147.47% in 2022.
As a holding company, GBL is not supposed to pay tax as most of its income \u2013 dividends and capital gains \u2013 come from profits already taxed at the level of the participation. If GBL were to be taxed in turn on the dividends/capital gains, there would be double taxation. This regime is therefore not a tax advantage granted to holding companies, but quite simply a means to avoid double taxation (application of the European Parent-Subsidiary Directive).
13.3Deferred taxes by nature in the balance sheet
Deferred tax assets | Deferred tax liabilities | |||
In EUR\u00a0million | 2023 | 2022 | 2023 | 2022 |
Property, plant, equipment and intangible assets | 112.8 | 150.7 | (693.8) | (836.5) |
Inventories, trade receivables, trade payables and provisions | 68.5 | 80.1 | (15.3) | (7.9) |
Employee benefit obligations | 45.3 | 42.3 | (0.1) | (1.1) |
Unused tax losses and credits | 51.1 | 42.6 | - | - |
Other | 133.1 | 101.2 | (56.3) | (51.2) |
Offsetting of assets/liabilities | (249.0) | (237.2) | 249.0 | 237.2 |
Total | 161.8 | 179.6 | (516.5) | (659.4) |
Of which: Holding | - | - | - | - |
Imerys | 114.5 | 110.7 | (81.2) | (99.9) |
Webhelp | - | 16.3 | - | (142.2) |
Canyon | 11.7 | 7.8 | (103.0) | (112.8) |
Affidea | 20.2 | 18.8 | (136.1) | (140.1) |
Sanoptis | 13.9 | 24.9 | (186.9) | (139.9) |
GBL Capital and SIM | 1.5 | 1.2 | (9.4) | (24.5) |
Deferred tax assets are recognized for tax losses carried forward when their recovery is deemed probable and over an expected recovery horizon not exceeding five years. The valuation of deferred tax assets recognized in this regard is based on an analysis of the loss\u2019 constitution, the probability of recurrence of losses in the future, future business prospects and national laws limiting the use of carryforward losses. As of December\u00a031, 2023, these deferred tax assets thus recognized amount to a total of EUR\u00a051\u00a0million (EUR\u00a043\u00a0million in 2022).
Beside those recognized deferred tax assets, the group has also accumulated other tax losses carried forward, with limited or unlimited lifetime, and/or tax credits that did not give rise to the recognition of\u00a0a\u00a0deferred tax asset because their recovery is considered uncertain.
The following table shows the evolution of those unrecognized tax losses carried forward and tax credits in 2023 and 2022:
In EUR\u00a0million | 2023 | 2022 | |
Unrecognized tax losses and credits | 10,767.5 | (1) | 7,186.6(2) |
Total | 10,767.5 | 7,186.6 | |
Of which: Holding | 9,767.2 | 6,360.9 | |
Imerys | 635.2 | 477.6 | |
Webhelp | - | 38.2 | |
Canyon | - | - | |
Affidea | 262.1 | 219.9 | |
Sanoptis | - | - | |
GBL Capital and SIM | 103.0 | 90.0 |
No deferred tax liabilities are recognized in relation to the temporary tax differences between the carrying amount and the tax value of investment securities if the group is able to verify the date of the temporary difference\u2019s reversal and if it is likely that this difference will not be reversed in the foreseeable future. The group estimates that the deferred tax liabilities not recognized in this regard as of December\u00a031, 2023 amount to EUR\u00a07\u00a0million (EUR\u00a08\u00a0million as of December\u00a031, 2022).
The International Tax Reform-Pillar Two Model Rules aim at ensuring that groups with revenue of EUR\u00a0750.0\u00a0million or above pay tax of at least 15.0% on the income arising in each of the countries in which they operate (\u201cGloBE Rules\u201d published by the Organisation for Economic Co-operation and Development (\u201cOECD\u201d)).
As this newly (substantively) enacted legislation is only effective as from January 1,\u00a02024, there is no current tax impact for the year ended December\u00a031,\u00a02023. In compliance with the IAS 12 Amendments published in May 2023, the group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.
The group operates in various jurisdictions which have enacted a new legislation to implement this global minimum top-up tax. The group has been working internally and together with external advisors to assess (i) if and (ii) to which extent the group would be subject to top-up tax in any of the jurisdictions. At the same time, the group is in the process of setting up standard procedures for reporting information through its various consolidated subsidiaries. The group continues to work on those assessments, to further fine-tune the analysis.
(1)\tAt the end of 2023 or 2022, depending on available information and the reliability of estimates
(2)\tAt the end of 2022 or 2021, depending on available information and the reliability of estimates
The following tables show the evolution of deferred tax assets and liabilities in 2023 and 2022:
In EUR\u00a0million | As of January 1, 2023 | Result | Statement of comprehensive income | Other | As of December 31, 2023 |
Deferred tax assets | 179.6 | (59.2) | 43.6 | (2.2) | 161.8 |
Deferred tax liabilities\u00a0 | (659.4) | 35.5 | (31.5) | 138.8 | (516.5) |
Net | (479.8) | (23.7) | 12.1 | 136.6 | (354.7) |
In EUR\u00a0million | |||||
As of January 1, 2022 | Result | Statement of comprehensive income | Other | As of December 31, 2022 | |
Deferred tax assets | 162.8 | 17.5 | 8.3 | (9.0) | 179.6 |
Deferred tax liabilities\u00a0 | (458.4) | 19.5 | 7.6 | (228.1) | (659.4) |
Net | (295.6) | 37.0 | 15.9 | (237.1) | (479.8) |
In 2023, the amounts included under \u201cOther\u201d are due to the consolidation of the new subsidiaries acquired and the deconsolidation of Webhelp.
Finally, the different taxes directly recorded under shareholders equity are shown in the following table:
In EUR\u00a0million | 2023 | 2022 |
Actuarial gains (losses) | (28.5) | 39.0 |
Of which amounts before taxes | (34.0) | 46.5 |
Of which deferred taxes | 5.5 | (7.5) |
Gains and (losses) on financial liabilities measured at fair value attributable to the acquisition of a controlling or non-controlling interest | 5.5 | (10.6) |
Of which amounts before taxes | 5.8 | (8.9) |
Of which deferred taxes | (0.3) | (1.7) |
Foreign currency translation adjustments | 57.1 | 101.2 |
Of which amounts before taxes | 52.9 | 101.6 |
Of which deferred taxes | 4.2 | (0.4) |
Cash flow hedge | 57.5 | (129.2) |
Of which amounts before taxes | 54.8 | (154.7) |
Of which deferred taxes | 2.7 | 25.5 |
Revaluation reserves | (285.9) | (3,618.6) |
Of which amounts before taxes | (285.9) | (3,618.6) |
Of which deferred taxes | - | - |
Note 5Other operating income (expenses) and employee expenses
5.1Details of other operating income (expenses)
In EUR\u00a0million | 2023 | 2022 |
Miscellaneous goods and services | (84.3) | (71.7) |
Employee expenses | (57.2) | (38.3) |
Depreciation and amortization | (6.3) | (4.6) |
Other operating expenses | 1.1 | (4.7) |
Other operating income | 20.7 | 2.0 |
Other operating income (expenses) - investing activities | (126.0) | (117.3) |
Transport costs | (521.0) | (691.8) |
Subcontracting costs | (140.4) | (129.2) |
Operating leases | (81.1) | (41.4) |
Fees | (125.9) | (181.0) |
Various taxes | (33.8) | (39.8) |
Other operating expenses | (664.8) | (537.0) |
Other operating income | 105.9 | 89.5 |
Share of profit (loss) of associates and joint ventures belonging to consolidated operating activities | 94.5 | 32.6 |
Other operating income (expenses) - operating activities\u00a0 | (1,366.7) | (1,498.0) |
Note 6Gains (losses) on disposals, impairments and reversals of non-current assets related to operating activities
In EUR\u00a0million | 2023 | 2022 |
Impairment on intangible assets and goodwill | (5.4) | (108.0) |
Impairment on property, plant and equipment, net of reversals | (209.4) | (18.0) |
Reversal of impairment on other non-current assets | (3.4) | 1.0 |
Capital gain/(loss) realized on disposals of investments and activities | (7.1) | 12.5 |
Total | (225.3) | (112.5) |
The impairments on intangible assets, goodwill and property, plant and equipment are detailed in the Notes 9, 10, 11 and 24.
The depreciation charges for the various periods are shown under \u201cOther operating income (expenses) from investing activities\u201d and \u201cDepreciation/ amortization of property, plant, equipment and intangible assets \u2013 consolidated operating activities\u201d in the consolidated income statement.Note 9Intangible assets
In EUR\u00a0million | Software | Mining rights | Patents, licenses and concessions | Trade-marks | Customer relations | Other | Total |
Gross carrying amount\u00a0 | |||||||
As of December 31, 2021 | 266.5 | 2.8 | 235.5 | 479.1 | 821.6 | 269.2 | 2,074.6 |
Investments | 29.0 | 0.2 | 0.8 | - | - | 55.3 | 85.3 |
Changes in group structure/business combinations | 8.2 | - | 13.4 | 86.0 | 713.2 | 542.9 | 1,363.6 |
Transfers between categories | 14.0 | - | (3.2) | - | - | (12.5) | (1.8) |
Disposals and retirements | (9.7) | - | (7.8) | (10.2) | (19.7) | (6.3) | (53.7) |
Foreign currency translation adjustments | 1.1 | 0.0 | (3.3) | - | 4.3 | 1.7 | 3.8 |
Other | (11.6) | (0.4) | (35.7) | (0.1) | (0.3) | (16.7) | (64.7) |
As of December 31, 2022 | 297.4 | 2.6 | 199.8 | 554.8 | 1,519.1 | 833.5 | 3,407.2 |
Investments | 14.8 | 3.7 | 2.0 | 0.0 | - | 69.7 | 90.2 |
Changes in group structure/Business combinations | 0.1 | - | 0.5 | 1.2 | 59.4 | 66.7 | 127.9 |
Transfers between categories | 39.4 | 1.0 | (23.8) | 12.4 | 91.7 | (118.4) | 2.3 |
Disposals and retirements | (25.3) | - | (0.2) | (0.2) | (22.6) | (29.9) | (78.2) |
Foreign currency translation adjustments | (0.8) | 0.0 | 0.0 | 0.1 | 0.6 | (0.2) | (0.2) |
Other | (122.9) | - | (10.2) | (182.7) | (764.9) | (27.2) | (1,108.0) |
As of December 31, 2023 | 202.7 | 7.3 | 168.1 | 385.6 | 883.2 | 794.1 | 2,441.1 |
Cumulated amortization | |||||||
As of December 31, 2021 | (175.3) | (0.7) | (38.6) | (12.2) | (109.0) | (128.8) | (464.6) |
Amortization | (32.5) | (0.2) | (2.6) | (15.2) | (85.8) | (24.8) | (161.1) |
Impairment (losses)/reversals | - | - | - | - | - | (0.1) | (0.1) |
Transfers between categories | (2.9) | - | 2.6 | - | - | 1.9 | 1.6 |
Disposals and retirements | 10.2 | - | 7.1 | 4.0 | 7.7 | 0.3 | 29.3 |
Foreign currency translation adjustments | (1.2) | (0.0) | (0.1) | - | 0.6 | (1.1) | (1.9) |
Changes in group structure/Other | 6.7 | 0.1 | 6.4 | - | 0.1 | 11.9 | 25.1 |
As of December 31, 2022 | (195.1) | (0.7) | (25.2) | (23.4) | (186.4) | (140.7) | (571.6) |
Amortization | (25.8) | (0.3) | (2.7) | (18.4) | (66.7) | (14.6) | (128.5) |
Impairment (losses)/reversals | (0.2) | - | - | - | - | (0.0) | (0.2) |
Transfers between categories | (2.3) | (0.3) | 2.6 | - | (42.5) | 44.3 | 1.8 |
Disposals and retirements | 25.3 | - | 0.2 | - | 11.1 | 25.3 | 61.9 |
Foreign currency translation adjustments | 1.0 | (0.0) | (0.1) | (0.0) | 1.6 | 0.1 | 2.6 |
Changes in group structure/Other | 83.2 | 0.0 | 5.1 | 11.3 | 159.2 | 7.6 | 266.3 |
As of December 31, 2023 | (113.9) | (1.3) | (20.1) | (30.6) | (123.8) | (78.0) | (367.7) |
Net carrying amount\u00a0 | |||||||
As of December 31, 2021 | 91.1 | 2.1 | 196.8 | 466.9 | 712.7 | 140.5 | 1,610.0 |
As of December 31, 2022 | 102.3 | 1.9 | 174.5 | 531.4 | 1,332.7 | 692.8 | 2,835.6 |
As of December 31, 2023 | 88.9 | 6.0 | 148.0 | 355.0 | 759.4 | 716.0 | 2,073.5 |
Of which: Holding | 1.0 | - | - | - | - | - | 1.0 |
Imerys | 68.3 | 6.0 | 138.5 | - | 35.0 | 85.5 | 333.3 |
Canyon | 6.4 | - | 2.6 | 276.2 | 27.5 | 39.2 | 351.9 |
Affidea | 9.0 | - | - | 73.3 | 521.2 | - | 603.5 |
Sanoptis | 1.2 | - | 0.4 | 5.5 | 149.6 | 585.1 | 741.9 |
GBL Capital and SIM | 3.0 | - | 6.3 | - | 26.2 | 6.4 | 41.8 |
Note 10Goodwill
In EUR\u00a0million | 2023 | 2022 |
Gross carrying amount\u00a0 | ||
As of January 1 | 6,359.1 | 4,750.6 |
Changes in group structure/Business combinations | 285.3 | 1,916.1 |
Foreign currency translation adjustments | 6.7 | 45.4 |
Subsequent value adjustments | 3.3 | 3.6 |
Disposals | (74.2) | (42.0) |
Other | (2,015.9) | (314.5) |
As of December\u00a031 | 4,564.3 | 6,359.1 |
Cumulated impairment losses | ||
As of January 1 | (100.6) | (96.3) |
Impairment losses | (5.4) | (123.4) |
Foreign currency translation adjustments | 3.9 | (2.9) |
Other | (101.5) | 122.0 |
As of December\u00a031 | (203.6) | (100.6) |
Net carrying amount as of December, 31 | 4,360.7 | 6,258.5 |
Of which: Holding | - | - |
Imerys | 1,839.1 | 1,852.2 |
Webhelp | - | 2,128.3 |
Canyon | 309.1 | 309.1 |
Affidea | 936.3 | 889.2 |
Sanoptis | 1,236.6 | 965.9 |
GBL Capital and SIM | 39.7 | 113.9 |
Impairment tests
In accordance with IAS 36, group companies conduct a yearly impairment test on all their CGUs to the extent that they report goodwill. The\u00a0recoverable amount of a CGU or an individual asset is the highest of the fair value less the costs of sale and the value in use. In practice, fair value can only be reliably estimated for individual assets and therefore corresponds to recent transaction prices for sales of similar assets. The\u00a0value in use is the most commonly used measurement basis for CGUs and individual assets.
For Imerys, the projected cash flows used in their impairment test as of December\u00a031, 2023 are based on the 2024 budget and the 2025-2027 plan. This central case was developed using external analyses of underlying markets. To calculate the terminal growth rate, Imerys uses the Gordon and Shapiro perpetual growth model. The discount rate used to calculate the value in use is determined using the weighted average cost of capital of groups comparable to Imerys in the industrial minerals sector. This rate, set at 8.00% for 2023 (8.00% for 2022), is adjusted for a country-market risk premium, which depending on the CGU or individual assets tested ranged from + 94 to + 125 bps in 2023 (+ 92 to + 174 bps in 2022). In 2023, the average discount rate after income tax amounted to 9.10% (8.89% in 2022). The calculations net of income tax are the same as those that would be performed with cash flows and rates before income tax, as required by applicable standards. The impairment tests carried out on the various Imerys CGUs did not result in the recognition of any impairment loss as of December\u00a031, 2023 and\u00a0December\u00a031, 2022.
Following the disposal of the High Temperature Solutions (HTS) line of business, Imerys has incorporated the assets of the PMAPAC CGU into the other two CGUs, PM Americas and PM EMEA & APAC. Had Imerys maintained the 2022 CGU structure and performed impairment tests on that basis, it would not have needed to recognize any impairment.
For Canyon, the projected cash flows used are based on the 2024-2028 plan. For the terminal value, Canyon uses the Gordon and Shapiro perpetual growth model. The definition of the discount rate is based on a study of the cost of capital of groups comparable to Canyon. It stands at 10.20% as of December\u00a031, 2023. (12.69% as of December\u00a031, 2022). The impairment test carried out on the Canyon CGU does not reveal any loss in value on the group\u2019s tested assets as of December\u00a031, 2023.
For Affidea, the cash flow projections used are taken from the 2024-2028 plan. For the terminal value, Affidea uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Affidea Group. The discount rate is 9.43% at December\u00a031, 2023. The impairment test performed on the Affidea CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023 and at December\u00a031,\u00a02022.
For Sanoptis, the cash flow projections used are taken from the 2024-2028 plan. For terminal value, Sanoptis uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Sanoptis Group. The discount rate is 6.82% at December\u00a031, 2023 (6.72% at December 31, 2022). The impairment test performed on the Sanoptis CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023.
For GBL Capital and SIM, the projected cash flows are derived from the financial budgets made by managements of each respective investment, covering a period of three to five years. The prepared projections are extrapolated and cover a period of ten years. For the terminal value, GBL Capital and SIM use an average of the Gordon and Shapiro perpetual growth model and multiple valuation method. The discount rate used to calculate the value in use is determined based on the weighted average cost of capital of groups comparable to each investment in their respective sector. This rate is adjusted by a country/market risk premium and a specific premium. The average discount rate after taxes is 11.07% in 2023 (11.80% in 2022). At GBL Capital and SIM, these annual tests did not reveal any impairment at December\u00a031, 2023 (EUR\u00a015\u00a0million in 2022).
In the table below, the weighted average discount and perpetual growth rates used to calculate the value in use are presented by CGU:
2023 | 2022 | |||
Discount rate | Perpetual growth rate | Discount rate | Perpetual growth rate | |
Performance Materials (Imerys)(1) | 9.21% | 2.00% | 9.06% | 1.92% |
Refractory, Abrasives & Construction (Imerys) | 8.98% | 2.08% | 8.64% | 1.98% |
Average rate Imerys | 9.10% | 2.10% | 8.89% | 1.68% |
Average rate Webhelp | - | - | 8.77% | 2.00% |
Average rate Canyon | 10.20% | 1.00% | 12.69% | 1.00% |
Average rate Affidea | 9.43% | 2.5% | - | - |
Average rate Sanoptis | 6.82% | 1.00% | 6.72% | 1.00% |
Average rate GBL Capital and SIM | 11.07% | 2.10% | 11.80% | 2.55% |
Note 11Property, plant and equipment
In EUR\u00a0million | Land and buildings | Mineral reserves | Fittings, machinery, equipment and rolling stock | Right-of-use assets | Assets under construction | Other property, plant and equipment | Total |
Gross carrying amount | |||||||
As of December 31, 2021 | 601.6 | 966.1 | 4,400.2 | 694.5 | 262.6 | 254.5 | 7,179.5 |
Investments | 13.3 | 72.1 | 119.1 | 290.2 | 255.1 | 85.4 | 835.2 |
Changes in group structure/Business combinations | 243.0 | - | 468.9 | 421.9 | 10.8 | 104.0 | 1,248.7 |
Disposals and retirements | (21.6) | (0.2) | (92.0) | (35.6) | (1.8) | (25.5) | (176.6) |
Foreign currency translation adjustments | 6.4 | 26.7 | 30.0 | (10.8) | 6.9 | (6.3) | 52.8 |
Other | (113.5) | (88.2) | (908.9) | (109.9) | (262.3) | 308.0 | (1,174.9) |
As of December 31, 2022 | 729.2 | 976.4 | 4,017.3 | 1,250.3 | 271.3 | 720.1 | 7,964.6 |
Investments | 18.4 | 61.7 | 96.6 | 165.2 | 279.6 | 54.9 | 676.5 |
Changes in group structure/Business combinations | 16.4 | 0.4 | 16.0 | 78.2 | 0.1 | 5.8 | 117.0 |
Disposals and retirements | (6.0) | (12.0) | (154.7) | (88.1) | (1.6) | (25.8) | (288.2) |
Foreign currency translation adjustments | (1.4) | (15.4) | (30.9) | (0.1) | (1.7) | (1.8) | (51.3) |
Other | 23.0 | (49.2) | 365.5 | (437.9) | (213.8) | (328.0) | (640.4) |
As of December 31, 2023 | 779.6 | 961.9 | 4,309.8 | 967.8 | 333.9 | 425.2 | 7,778.2 |
Cumulated depreciation | |||||||
As of December 31, 2021 | (277.5) | (547.0) | (3,193.0) | (229.9) | (24.1) | (158.0) | (4,429.5) |
Depreciation | (24.8) | (57.0) | (186.6) | (153.9) | (1.7) | (78.1) | (502.0) |
Impairment (losses)/reversals | (2.3) | - | 0.0 | - | - | 1.5 | (0.8) |
Disposals and retirements | 12.8 | 0.2 | 71.8 | 29.8 | 0.3 | 24.1 | 138.9 |
Foreign currency translation adjustments | (4.6) | (16.8) | (23.3) | 2.1 | (1.8) | 3.0 | (41.4) |
Changes in group structure/Other | (77.1) | 59.7 | 452.5 | (30.9) | 22.7 | (268.2) | 158.7 |
As of December 31, 2022 | (373.3) | (560.9) | (2,878.5) | (382.8) | (4.6) | (475.7) | (4,675.9) |
Depreciation | (27.1) | (50.0) | (191.0) | (138.4) | 0.7 | (44.5) | (450.2) |
Impairment (losses)/reversals | (16.0) | (33.5) | (141.6) | (5.0) | (10.8) | (2.3) | (209.2) |
Disposals and retirements | 4.1 | 11.7 | 133.8 | 41.1 | - | 25.2 | 215.9 |
Foreign currency translation adjustments | (0.1) | 8.3 | 22.0 | 1.8 | 0.1 | 1.9 | 34.1 |
Changes in group structure/Other | 0.5 | 53.6 | (159.1) | 185.9 | 1.0 | 202.5 | 284.3 |
As of December 31, 2023 | (411.9) | (570.9) | (3,214.4) | (297.2) | (13.8) | (293.0) | (4,801.2) |
Net carrying amount\u00a0 | |||||||
As of December 31, 2021 | 324.1 | 419.0 | 1,207.2 | 464.7 | 238.5 | 96.5 | 2,750.0 |
As of December 31, 2022 | 355.8 | 415.5 | 1,138.7 | 867.5 | 266.7 | 244.4 | 3,288.6 |
As of December 31, 2023 | 367.6 | 391.1 | 1,095.4 | 670.5 | 320.1 | 132.2 | 2,976.9 |
Of which: Holding | - | - | 1.0 | 10.8 | - | 1.8 | 13.6 |
Imerys | 231.5 | 391.1 | 915.7 | 151.4 | 287.3 | 41.4 | 2,018.4 |
Canyon | 2.8 | - | 21.2 | 41.9 | 0.3 | - | 66.2 |
Affidea | 123.7 | - | 104.1 | 307.1 | 29.3 | 12.3 | 576.5 |
Sanoptis | 9.6 | - | 52.8 | 139.5 | 3.2 | 75.1 | 280.2 |
GBL Capital and SIM | - | - | 0.5 | 19.9 | - | 1.6 | 22.0 |
The depreciation charges for the various periods are shown under \u201cOther operating income (expenses) from investing activities\u201d and\u201cDepreciation/amortization of property, plant, equipment and intangible assets\u2013consolidated operating activities\u201d in the consolidated income\u00a0statement.
In 2023, impairment losses net of reversals were recognized by Imerys on its property, plant and equipment in the amount of EUR\u00a0209\u00a0million (EUR\u00a018\u00a0million in 2022). Impairment losses recognized in 2023 mainly concern operations serving the paper market and the restructuring of industrial assets serving the Refractories market in China and Europe.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f123276": { "value": "Note 5Other operating income (expenses) and employee expenses
5.1Details of other operating income (expenses)
In EUR\u00a0million | 2023 | 2022 |
Miscellaneous goods and services | (84.3) | (71.7) |
Employee expenses | (57.2) | (38.3) |
Depreciation and amortization | (6.3) | (4.6) |
Other operating expenses | 1.1 | (4.7) |
Other operating income | 20.7 | 2.0 |
Other operating income (expenses) - investing activities | (126.0) | (117.3) |
Transport costs | (521.0) | (691.8) |
Subcontracting costs | (140.4) | (129.2) |
Operating leases | (81.1) | (41.4) |
Fees | (125.9) | (181.0) |
Various taxes | (33.8) | (39.8) |
Other operating expenses | (664.8) | (537.0) |
Other operating income | 105.9 | 89.5 |
Share of profit (loss) of associates and joint ventures belonging to consolidated operating activities | 94.5 | 32.6 |
Other operating income (expenses) - operating activities\u00a0 | (1,366.7) | (1,498.0) |
Other operating expenses related to operating activities mainly consist of Imerys\u2019 maintenance and repair expenses (EUR\u00a096\u00a0million and EUR\u00a0119\u00a0million in 2023 and 2022 respectively), restructuring expenses (EUR\u00a034\u00a0million in 2023 and EUR\u00a021\u00a0million in 2022) and research and development costs (EUR\u00a044\u00a0million and EUR\u00a042\u00a0million in 2023 and 2022 respectively).
5.2Details of employee expenses
In EUR\u00a0million | 2023 | 2022 |
Remuneration | (48.4) | (36.0) |
Social security contributions | (7.9) | (6.2) |
Costs related to stock options | 3.1 | 9.4 |
Contributions to pension plans\u00a0 | (1.7) | (2.9) |
Other | (2.3) | (2.6) |
Employee expenses - investing activities | (57.2) | (38.3) |
Remuneration | (1,233.0) | (962.9) |
Social security contributions | (230.7) | (177.3) |
Costs related to stock options | (14.0) | (16.2) |
Contributions to pension plans\u00a0 | (27.9) | (34.4) |
Other | (184.5) | (67.1) |
Employee expenses - consolidated operating activities | (1,690.2) | (1,258.0) |
The details of the remuneration of GBL\u2019s directors are shown in Note 32. The stock option plans are detailed in Note 27.
5.1Details of other operating income (expenses)
In EUR\u00a0million | 2023 | 2022 |
Miscellaneous goods and services | (84.3) | (71.7) |
Employee expenses | (57.2) | (38.3) |
Depreciation and amortization | (6.3) | (4.6) |
Other operating expenses | 1.1 | (4.7) |
Other operating income | 20.7 | 2.0 |
Other operating income (expenses) - investing activities | (126.0) | (117.3) |
Transport costs | (521.0) | (691.8) |
Subcontracting costs | (140.4) | (129.2) |
Operating leases | (81.1) | (41.4) |
Fees | (125.9) | (181.0) |
Various taxes | (33.8) | (39.8) |
Other operating expenses | (664.8) | (537.0) |
Other operating income | 105.9 | 89.5 |
Share of profit (loss) of associates and joint ventures belonging to consolidated operating activities | 94.5 | 32.6 |
Other operating income (expenses) - operating activities\u00a0 | (1,366.7) | (1,498.0) |
Other operating expenses related to operating activities mainly consist of Imerys\u2019 maintenance and repair expenses (EUR\u00a096\u00a0million and EUR\u00a0119\u00a0million in 2023 and 2022 respectively), restructuring expenses (EUR\u00a034\u00a0million in 2023 and EUR\u00a021\u00a0million in 2022) and research and development costs (EUR\u00a044\u00a0million and EUR\u00a042\u00a0million in 2023 and 2022 respectively).
5.1Details of other operating income (expenses)
In EUR\u00a0million | 2023 | 2022 |
Miscellaneous goods and services | (84.3) | (71.7) |
Employee expenses | (57.2) | (38.3) |
Depreciation and amortization | (6.3) | (4.6) |
Other operating expenses | 1.1 | (4.7) |
Other operating income | 20.7 | 2.0 |
Other operating income (expenses) - investing activities | (126.0) | (117.3) |
Transport costs | (521.0) | (691.8) |
Subcontracting costs | (140.4) | (129.2) |
Operating leases | (81.1) | (41.4) |
Fees | (125.9) | (181.0) |
Various taxes | (33.8) | (39.8) |
Other operating expenses | (664.8) | (537.0) |
Other operating income | 105.9 | 89.5 |
Share of profit (loss) of associates and joint ventures belonging to consolidated operating activities | 94.5 | 32.6 |
Other operating income (expenses) - operating activities\u00a0 | (1,366.7) | (1,498.0) |
Other operating expenses related to operating activities mainly consist of Imerys\u2019 maintenance and repair expenses (EUR\u00a096\u00a0million and EUR\u00a0119\u00a0million in 2023 and 2022 respectively), restructuring expenses (EUR\u00a034\u00a0million in 2023 and EUR\u00a021\u00a0million in 2022) and research and development costs (EUR\u00a044\u00a0million and EUR\u00a042\u00a0million in 2023 and 2022 respectively).
5.1Details of other operating income (expenses)
In EUR\u00a0million | 2023 | 2022 |
Miscellaneous goods and services | (84.3) | (71.7) |
Employee expenses | (57.2) | (38.3) |
Depreciation and amortization | (6.3) | (4.6) |
Other operating expenses | 1.1 | (4.7) |
Other operating income | 20.7 | 2.0 |
Other operating income (expenses) - investing activities | (126.0) | (117.3) |
Transport costs | (521.0) | (691.8) |
Subcontracting costs | (140.4) | (129.2) |
Operating leases | (81.1) | (41.4) |
Fees | (125.9) | (181.0) |
Various taxes | (33.8) | (39.8) |
Other operating expenses | (664.8) | (537.0) |
Other operating income | 105.9 | 89.5 |
Share of profit (loss) of associates and joint ventures belonging to consolidated operating activities | 94.5 | 32.6 |
Other operating income (expenses) - operating activities\u00a0 | (1,366.7) | (1,498.0) |
Other operating expenses related to operating activities mainly consist of Imerys\u2019 maintenance and repair expenses (EUR\u00a096\u00a0million and EUR\u00a0119\u00a0million in 2023 and 2022 respectively), restructuring expenses (EUR\u00a034\u00a0million in 2023 and EUR\u00a021\u00a0million in 2022) and research and development costs (EUR\u00a044\u00a0million and EUR\u00a042\u00a0million in 2023 and 2022 respectively).
In EUR\u00a0million | 2023 | 2022 |
Miscellaneous goods and services | (84.3) | (71.7) |
Employee expenses | (57.2) | (38.3) |
Depreciation and amortization | (6.3) | (4.6) |
Other operating expenses | 1.1 | (4.7) |
Other operating income | 20.7 | 2.0 |
Other operating income (expenses) - investing activities | (126.0) | (117.3) |
Transport costs | (521.0) | (691.8) |
Subcontracting costs | (140.4) | (129.2) |
Operating leases | (81.1) | (41.4) |
Fees | (125.9) | (181.0) |
Various taxes | (33.8) | (39.8) |
Other operating expenses | (664.8) | (537.0) |
Other operating income | 105.9 | 89.5 |
Share of profit (loss) of associates and joint ventures belonging to consolidated operating activities | 94.5 | 32.6 |
Other operating income (expenses) - operating activities\u00a0 | (1,366.7) | (1,498.0) |
Note 6Gains (losses) on disposals, impairments and reversals of non-current assets related to operating activities
In EUR\u00a0million | 2023 | 2022 |
Impairment on intangible assets and goodwill | (5.4) | (108.0) |
Impairment on property, plant and equipment, net of reversals | (209.4) | (18.0) |
Reversal of impairment on other non-current assets | (3.4) | 1.0 |
Capital gain/(loss) realized on disposals of investments and activities | (7.1) | 12.5 |
Total | (225.3) | (112.5) |
The impairments on intangible assets, goodwill and property, plant and equipment are detailed in the Notes 9, 10, 11 and 24.
Impairment tests
In accordance with IAS 36, group companies conduct a yearly impairment test on all their CGUs to the extent that they report goodwill. The\u00a0recoverable amount of a CGU or an individual asset is the highest of the fair value less the costs of sale and the value in use. In practice, fair value can only be reliably estimated for individual assets and therefore corresponds to recent transaction prices for sales of similar assets. The\u00a0value in use is the most commonly used measurement basis for CGUs and individual assets.
For Imerys, the projected cash flows used in their impairment test as of December\u00a031, 2023 are based on the 2024 budget and the 2025-2027 plan. This central case was developed using external analyses of underlying markets. To calculate the terminal growth rate, Imerys uses the Gordon and Shapiro perpetual growth model. The discount rate used to calculate the value in use is determined using the weighted average cost of capital of groups comparable to Imerys in the industrial minerals sector. This rate, set at 8.00% for 2023 (8.00% for 2022), is adjusted for a country-market risk premium, which depending on the CGU or individual assets tested ranged from + 94 to + 125 bps in 2023 (+ 92 to + 174 bps in 2022). In 2023, the average discount rate after income tax amounted to 9.10% (8.89% in 2022). The calculations net of income tax are the same as those that would be performed with cash flows and rates before income tax, as required by applicable standards. The impairment tests carried out on the various Imerys CGUs did not result in the recognition of any impairment loss as of December\u00a031, 2023 and\u00a0December\u00a031, 2022.
Following the disposal of the High Temperature Solutions (HTS) line of business, Imerys has incorporated the assets of the PMAPAC CGU into the other two CGUs, PM Americas and PM EMEA & APAC. Had Imerys maintained the 2022 CGU structure and performed impairment tests on that basis, it would not have needed to recognize any impairment.
For Canyon, the projected cash flows used are based on the 2024-2028 plan. For the terminal value, Canyon uses the Gordon and Shapiro perpetual growth model. The definition of the discount rate is based on a study of the cost of capital of groups comparable to Canyon. It stands at 10.20% as of December\u00a031, 2023. (12.69% as of December\u00a031, 2022). The impairment test carried out on the Canyon CGU does not reveal any loss in value on the group\u2019s tested assets as of December\u00a031, 2023.
For Affidea, the cash flow projections used are taken from the 2024-2028 plan. For the terminal value, Affidea uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Affidea Group. The discount rate is 9.43% at December\u00a031, 2023. The impairment test performed on the Affidea CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023 and at December\u00a031,\u00a02022.
For Sanoptis, the cash flow projections used are taken from the 2024-2028 plan. For terminal value, Sanoptis uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Sanoptis Group. The discount rate is 6.82% at December\u00a031, 2023 (6.72% at December 31, 2022). The impairment test performed on the Sanoptis CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023.
For GBL Capital and SIM, the projected cash flows are derived from the financial budgets made by managements of each respective investment, covering a period of three to five years. The prepared projections are extrapolated and cover a period of ten years. For the terminal value, GBL Capital and SIM use an average of the Gordon and Shapiro perpetual growth model and multiple valuation method. The discount rate used to calculate the value in use is determined based on the weighted average cost of capital of groups comparable to each investment in their respective sector. This rate is adjusted by a country/market risk premium and a specific premium. The average discount rate after taxes is 11.07% in 2023 (11.80% in 2022). At GBL Capital and SIM, these annual tests did not reveal any impairment at December\u00a031, 2023 (EUR\u00a015\u00a0million in 2022).
In the table below, the weighted average discount and perpetual growth rates used to calculate the value in use are presented by CGU:
2023 | 2022 | |||
Discount rate | Perpetual growth rate | Discount rate | Perpetual growth rate | |
Performance Materials (Imerys)(1) | 9.21% | 2.00% | 9.06% | 1.92% |
Refractory, Abrasives & Construction (Imerys) | 8.98% | 2.08% | 8.64% | 1.98% |
Average rate Imerys | 9.10% | 2.10% | 8.89% | 1.68% |
Average rate Webhelp | - | - | 8.77% | 2.00% |
Average rate Canyon | 10.20% | 1.00% | 12.69% | 1.00% |
Average rate Affidea | 9.43% | 2.5% | - | - |
Average rate Sanoptis | 6.82% | 1.00% | 6.72% | 1.00% |
Average rate GBL Capital and SIM | 11.07% | 2.10% | 11.80% | 2.55% |
In EUR\u00a0million | 2023 | 2022 |
Interest income on cash and cash equivalents, non-current assets or other | 36.5 | (7.7) |
Interest expenses on financial liabilities | (67.0) | (27.0) |
Gains (losses) on trading securities and derivatives | 122.1 | 124.0 |
Change in the fair value of other equity investments recognized at fair value through profit or loss | 187.6 | (487.1) |
Other financial income | 17.2 | 13.0 |
Other financial expenses | (15.4) | (10.7) |
Financial income (expenses) - investing activities | 280.9 | (395.5) |
Interest income on cash and cash equivalents and non-current assets | 10.6 | 6.5 |
Interest expenses on financial liabilities | (215.9) | (102.0) |
Gains (losses) on trading securities and derivatives | 4.8 | (1.8) |
Other financial income | 72.9 | 36.2 |
Other financial expenses | (100.8) | (51.7) |
Financial income (expenses) - operating activities\u00a0 | (228.4) | (112.7) |
Financial income (expenses) from investing activities total EUR\u00a0281\u00a0million (compared to EUR\u00a0- 395\u00a0million in 2022). They mainly consist of (i) the changes in fair value of other equity investments recognized at fair value in profit or loss for EUR\u00a0188\u00a0million (EUR\u00a0- 487\u00a0million in 2022), (ii) a total net income of EUR\u00a070\u00a0million related to the mark to market of the derivative component associated to the exchangeable bonds into GEA shares, to the exchangeable bonds into Pernod Ricard shares and the convertible bonds into GBL shares (a net income of EUR\u00a098\u00a0million 2022), (iii) the result of yield enhancement for EUR\u00a019\u00a0million in 2023, including EUR\u00a06\u00a0million in revenues generated in 2023 and EUR\u00a013\u00a0million in mark-to-market (against EUR\u00a09\u00a0million in 2022) and (iv) the interest charges on GBL\u2019s indebtedness for EUR\u00a0-\u00a064\u00a0million (EUR\u00a0-\u00a026\u00a0million in 2022).
Financial income (expenses) from consolidated operating activities essentially result from interest expenses on Affidea\u2019s, Sanoptis\u2019 and Imerys\u2019 indebtedness for EUR\u00a076\u00a0million, EUR\u00a076\u00a0million and EUR\u00a041\u00a0million respectively (EUR\u00a026\u00a0million, EUR\u00a023\u00a0million and EUR\u00a038\u00a0million in 2022 respectively).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f123962": { "value": "Note 7Financial income (expenses)In EUR\u00a0million | 2023 | 2022 |
Interest income on cash and cash equivalents, non-current assets or other | 36.5 | (7.7) |
Interest expenses on financial liabilities | (67.0) | (27.0) |
Gains (losses) on trading securities and derivatives | 122.1 | 124.0 |
Change in the fair value of other equity investments recognized at fair value through profit or loss | 187.6 | (487.1) |
Other financial income | 17.2 | 13.0 |
Other financial expenses | (15.4) | (10.7) |
Financial income (expenses) - investing activities | 280.9 | (395.5) |
Interest income on cash and cash equivalents and non-current assets | 10.6 | 6.5 |
Interest expenses on financial liabilities | (215.9) | (102.0) |
Gains (losses) on trading securities and derivatives | 4.8 | (1.8) |
Other financial income | 72.9 | 36.2 |
Other financial expenses | (100.8) | (51.7) |
Financial income (expenses) - operating activities\u00a0 | (228.4) | (112.7) |
Financial income (expenses) from investing activities total EUR\u00a0281\u00a0million (compared to EUR\u00a0- 395\u00a0million in 2022). They mainly consist of (i) the changes in fair value of other equity investments recognized at fair value in profit or loss for EUR\u00a0188\u00a0million (EUR\u00a0- 487\u00a0million in 2022), (ii) a total net income of EUR\u00a070\u00a0million related to the mark to market of the derivative component associated to the exchangeable bonds into GEA shares, to the exchangeable bonds into Pernod Ricard shares and the convertible bonds into GBL shares (a net income of EUR\u00a098\u00a0million 2022), (iii) the result of yield enhancement for EUR\u00a019\u00a0million in 2023, including EUR\u00a06\u00a0million in revenues generated in 2023 and EUR\u00a013\u00a0million in mark-to-market (against EUR\u00a09\u00a0million in 2022) and (iv) the interest charges on GBL\u2019s indebtedness for EUR\u00a0-\u00a064\u00a0million (EUR\u00a0-\u00a026\u00a0million in 2022).
Financial income (expenses) from consolidated operating activities essentially result from interest expenses on Affidea\u2019s, Sanoptis\u2019 and Imerys\u2019 indebtedness for EUR\u00a076\u00a0million, EUR\u00a076\u00a0million and EUR\u00a041\u00a0million respectively (EUR\u00a026\u00a0million, EUR\u00a023\u00a0million and EUR\u00a038\u00a0million in 2022 respectively).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f123963": { "value": "Note 7Financial income (expenses)In EUR\u00a0million | 2023 | 2022 |
Interest income on cash and cash equivalents, non-current assets or other | 36.5 | (7.7) |
Interest expenses on financial liabilities | (67.0) | (27.0) |
Gains (losses) on trading securities and derivatives | 122.1 | 124.0 |
Change in the fair value of other equity investments recognized at fair value through profit or loss | 187.6 | (487.1) |
Other financial income | 17.2 | 13.0 |
Other financial expenses | (15.4) | (10.7) |
Financial income (expenses) - investing activities | 280.9 | (395.5) |
Interest income on cash and cash equivalents and non-current assets | 10.6 | 6.5 |
Interest expenses on financial liabilities | (215.9) | (102.0) |
Gains (losses) on trading securities and derivatives | 4.8 | (1.8) |
Other financial income | 72.9 | 36.2 |
Other financial expenses | (100.8) | (51.7) |
Financial income (expenses) - operating activities\u00a0 | (228.4) | (112.7) |
Financial income (expenses) from investing activities total EUR\u00a0281\u00a0million (compared to EUR\u00a0- 395\u00a0million in 2022). They mainly consist of (i) the changes in fair value of other equity investments recognized at fair value in profit or loss for EUR\u00a0188\u00a0million (EUR\u00a0- 487\u00a0million in 2022), (ii) a total net income of EUR\u00a070\u00a0million related to the mark to market of the derivative component associated to the exchangeable bonds into GEA shares, to the exchangeable bonds into Pernod Ricard shares and the convertible bonds into GBL shares (a net income of EUR\u00a098\u00a0million 2022), (iii) the result of yield enhancement for EUR\u00a019\u00a0million in 2023, including EUR\u00a06\u00a0million in revenues generated in 2023 and EUR\u00a013\u00a0million in mark-to-market (against EUR\u00a09\u00a0million in 2022) and (iv) the interest charges on GBL\u2019s indebtedness for EUR\u00a0-\u00a064\u00a0million (EUR\u00a0-\u00a026\u00a0million in 2022).
Financial income (expenses) from consolidated operating activities essentially result from interest expenses on Affidea\u2019s, Sanoptis\u2019 and Imerys\u2019 indebtedness for EUR\u00a076\u00a0million, EUR\u00a076\u00a0million and EUR\u00a041\u00a0million respectively (EUR\u00a026\u00a0million, EUR\u00a023\u00a0million and EUR\u00a038\u00a0million in 2022 respectively).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f123964": { "value": "Note 7Financial income (expenses)In EUR\u00a0million | 2023 | 2022 |
Interest income on cash and cash equivalents, non-current assets or other | 36.5 | (7.7) |
Interest expenses on financial liabilities | (67.0) | (27.0) |
Gains (losses) on trading securities and derivatives | 122.1 | 124.0 |
Change in the fair value of other equity investments recognized at fair value through profit or loss | 187.6 | (487.1) |
Other financial income | 17.2 | 13.0 |
Other financial expenses | (15.4) | (10.7) |
Financial income (expenses) - investing activities | 280.9 | (395.5) |
Interest income on cash and cash equivalents and non-current assets | 10.6 | 6.5 |
Interest expenses on financial liabilities | (215.9) | (102.0) |
Gains (losses) on trading securities and derivatives | 4.8 | (1.8) |
Other financial income | 72.9 | 36.2 |
Other financial expenses | (100.8) | (51.7) |
Financial income (expenses) - operating activities\u00a0 | (228.4) | (112.7) |
Financial income (expenses) from investing activities total EUR\u00a0281\u00a0million (compared to EUR\u00a0- 395\u00a0million in 2022). They mainly consist of (i) the changes in fair value of other equity investments recognized at fair value in profit or loss for EUR\u00a0188\u00a0million (EUR\u00a0- 487\u00a0million in 2022), (ii) a total net income of EUR\u00a070\u00a0million related to the mark to market of the derivative component associated to the exchangeable bonds into GEA shares, to the exchangeable bonds into Pernod Ricard shares and the convertible bonds into GBL shares (a net income of EUR\u00a098\u00a0million 2022), (iii) the result of yield enhancement for EUR\u00a019\u00a0million in 2023, including EUR\u00a06\u00a0million in revenues generated in 2023 and EUR\u00a013\u00a0million in mark-to-market (against EUR\u00a09\u00a0million in 2022) and (iv) the interest charges on GBL\u2019s indebtedness for EUR\u00a0-\u00a064\u00a0million (EUR\u00a0-\u00a026\u00a0million in 2022).
Financial income (expenses) from consolidated operating activities essentially result from interest expenses on Affidea\u2019s, Sanoptis\u2019 and Imerys\u2019 indebtedness for EUR\u00a076\u00a0million, EUR\u00a076\u00a0million and EUR\u00a041\u00a0million respectively (EUR\u00a026\u00a0million, EUR\u00a023\u00a0million and EUR\u00a038\u00a0million in 2022 respectively).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f123965": { "value": "Note 7Financial income (expenses)In EUR\u00a0million | 2023 | 2022 |
Interest income on cash and cash equivalents, non-current assets or other | 36.5 | (7.7) |
Interest expenses on financial liabilities | (67.0) | (27.0) |
Gains (losses) on trading securities and derivatives | 122.1 | 124.0 |
Change in the fair value of other equity investments recognized at fair value through profit or loss | 187.6 | (487.1) |
Other financial income | 17.2 | 13.0 |
Other financial expenses | (15.4) | (10.7) |
Financial income (expenses) - investing activities | 280.9 | (395.5) |
Interest income on cash and cash equivalents and non-current assets | 10.6 | 6.5 |
Interest expenses on financial liabilities | (215.9) | (102.0) |
Gains (losses) on trading securities and derivatives | 4.8 | (1.8) |
Other financial income | 72.9 | 36.2 |
Other financial expenses | (100.8) | (51.7) |
Financial income (expenses) - operating activities\u00a0 | (228.4) | (112.7) |
Financial income (expenses) from investing activities total EUR\u00a0281\u00a0million (compared to EUR\u00a0- 395\u00a0million in 2022). They mainly consist of (i) the changes in fair value of other equity investments recognized at fair value in profit or loss for EUR\u00a0188\u00a0million (EUR\u00a0- 487\u00a0million in 2022), (ii) a total net income of EUR\u00a070\u00a0million related to the mark to market of the derivative component associated to the exchangeable bonds into GEA shares, to the exchangeable bonds into Pernod Ricard shares and the convertible bonds into GBL shares (a net income of EUR\u00a098\u00a0million 2022), (iii) the result of yield enhancement for EUR\u00a019\u00a0million in 2023, including EUR\u00a06\u00a0million in revenues generated in 2023 and EUR\u00a013\u00a0million in mark-to-market (against EUR\u00a09\u00a0million in 2022) and (iv) the interest charges on GBL\u2019s indebtedness for EUR\u00a0-\u00a064\u00a0million (EUR\u00a0-\u00a026\u00a0million in 2022).
Financial income (expenses) from consolidated operating activities essentially result from interest expenses on Affidea\u2019s, Sanoptis\u2019 and Imerys\u2019 indebtedness for EUR\u00a076\u00a0million, EUR\u00a076\u00a0million and EUR\u00a041\u00a0million respectively (EUR\u00a026\u00a0million, EUR\u00a023\u00a0million and EUR\u00a038\u00a0million in 2022 respectively).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f123966": { "value": "Note 7Financial income (expenses)In EUR\u00a0million | 2023 | 2022 |
Interest income on cash and cash equivalents, non-current assets or other | 36.5 | (7.7) |
Interest expenses on financial liabilities | (67.0) | (27.0) |
Gains (losses) on trading securities and derivatives | 122.1 | 124.0 |
Change in the fair value of other equity investments recognized at fair value through profit or loss | 187.6 | (487.1) |
Other financial income | 17.2 | 13.0 |
Other financial expenses | (15.4) | (10.7) |
Financial income (expenses) - investing activities | 280.9 | (395.5) |
Interest income on cash and cash equivalents and non-current assets | 10.6 | 6.5 |
Interest expenses on financial liabilities | (215.9) | (102.0) |
Gains (losses) on trading securities and derivatives | 4.8 | (1.8) |
Other financial income | 72.9 | 36.2 |
Other financial expenses | (100.8) | (51.7) |
Financial income (expenses) - operating activities\u00a0 | (228.4) | (112.7) |
Financial income (expenses) from investing activities total EUR\u00a0281\u00a0million (compared to EUR\u00a0- 395\u00a0million in 2022). They mainly consist of (i) the changes in fair value of other equity investments recognized at fair value in profit or loss for EUR\u00a0188\u00a0million (EUR\u00a0- 487\u00a0million in 2022), (ii) a total net income of EUR\u00a070\u00a0million related to the mark to market of the derivative component associated to the exchangeable bonds into GEA shares, to the exchangeable bonds into Pernod Ricard shares and the convertible bonds into GBL shares (a net income of EUR\u00a098\u00a0million 2022), (iii) the result of yield enhancement for EUR\u00a019\u00a0million in 2023, including EUR\u00a06\u00a0million in revenues generated in 2023 and EUR\u00a013\u00a0million in mark-to-market (against EUR\u00a09\u00a0million in 2022) and (iv) the interest charges on GBL\u2019s indebtedness for EUR\u00a0-\u00a064\u00a0million (EUR\u00a0-\u00a026\u00a0million in 2022).
Financial income (expenses) from consolidated operating activities essentially result from interest expenses on Affidea\u2019s, Sanoptis\u2019 and Imerys\u2019 indebtedness for EUR\u00a076\u00a0million, EUR\u00a076\u00a0million and EUR\u00a041\u00a0million respectively (EUR\u00a026\u00a0million, EUR\u00a023\u00a0million and EUR\u00a038\u00a0million in 2022 respectively).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f123967": { "value": "Note 7Financial income (expenses)In EUR\u00a0million | 2023 | 2022 |
Interest income on cash and cash equivalents, non-current assets or other | 36.5 | (7.7) |
Interest expenses on financial liabilities | (67.0) | (27.0) |
Gains (losses) on trading securities and derivatives | 122.1 | 124.0 |
Change in the fair value of other equity investments recognized at fair value through profit or loss | 187.6 | (487.1) |
Other financial income | 17.2 | 13.0 |
Other financial expenses | (15.4) | (10.7) |
Financial income (expenses) - investing activities | 280.9 | (395.5) |
Interest income on cash and cash equivalents and non-current assets | 10.6 | 6.5 |
Interest expenses on financial liabilities | (215.9) | (102.0) |
Gains (losses) on trading securities and derivatives | 4.8 | (1.8) |
Other financial income | 72.9 | 36.2 |
Other financial expenses | (100.8) | (51.7) |
Financial income (expenses) - operating activities\u00a0 | (228.4) | (112.7) |
Financial income (expenses) from investing activities total EUR\u00a0281\u00a0million (compared to EUR\u00a0- 395\u00a0million in 2022). They mainly consist of (i) the changes in fair value of other equity investments recognized at fair value in profit or loss for EUR\u00a0188\u00a0million (EUR\u00a0- 487\u00a0million in 2022), (ii) a total net income of EUR\u00a070\u00a0million related to the mark to market of the derivative component associated to the exchangeable bonds into GEA shares, to the exchangeable bonds into Pernod Ricard shares and the convertible bonds into GBL shares (a net income of EUR\u00a098\u00a0million 2022), (iii) the result of yield enhancement for EUR\u00a019\u00a0million in 2023, including EUR\u00a06\u00a0million in revenues generated in 2023 and EUR\u00a013\u00a0million in mark-to-market (against EUR\u00a09\u00a0million in 2022) and (iv) the interest charges on GBL\u2019s indebtedness for EUR\u00a0-\u00a064\u00a0million (EUR\u00a0-\u00a026\u00a0million in 2022).
Financial income (expenses) from consolidated operating activities essentially result from interest expenses on Affidea\u2019s, Sanoptis\u2019 and Imerys\u2019 indebtedness for EUR\u00a076\u00a0million, EUR\u00a076\u00a0million and EUR\u00a041\u00a0million respectively (EUR\u00a026\u00a0million, EUR\u00a023\u00a0million and EUR\u00a038\u00a0million in 2022 respectively).
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f124401": { "value": "Note 8TurnoverThe table below presents the split of the revenue into sales of goods, services provided and other:
In EUR\u00a0million | 2023 | 2022 |
Sales of goods | 4,361.3 | 4,638.0 |
Services provided | 1,773.2 | 966.2 |
Other | 2.7 | 19.1 |
Total | 6,137.3 | 5,623.3 |
The table below presents the split by cash generating unit:
In EUR\u00a0million | 2023 | 2022 |
Performance Materials | 2,341.0 | 2,599.7 |
Refractory, Abrasives & Construction | 1,232.7 | 1,434.4 |
Other | 220.7 | 247.5 |
Imerys | 3,794.4 | 4,281.6 |
Canyon | 790.6 | 644.9 |
Affidea | 851.8 | 306.6 |
Sanoptis | 494.1 | 180.1 |
Vanreusel | 82.5 | 72.5 |
Sienna Gestion | 58.7 | 38.6 |
Sausalitos | 33.2 | 46.7 |
Sienna Real Estate | 19.3 | 15.5 |
Sienna Private Credit | 12.6 | 8.6 |
Indo | - | 28.4 |
GBL Capital and SIM | 206.4 | 210.2 |
Total | 6,137.3 | 5,623.3 |
The breakdown of the group\u2019s turnover by geographic region is as follows:
In EUR\u00a0million | 2023 | 2022 |
Belgium | 161.8 | 149.2 |
Other European countries | 3,616.1 | 2,898.1 |
Americas | 1,383.6 | 1,485.9 |
Asia | 791.6 | 924.7 |
Other | 184.1 | 165.4 |
Total | 6,137.3 | 5,623.3 |
The following table presents a different breakdown of revenue by the time at which goods and services are transferred to customers, distinguishing between goods and services transferred to customers at a given point in time and services transferred to customers over time:
In EUR\u00a0million | 2023 | 2018 |
Goods and services transferred to customers at a specific time | 4,366.6 | 4,768.5 |
Services progressively transferred to customers | 1,770.7 | 854.8 |
Total | 6,137.3 | 5,623.3 |
At Imerys\u2019 level, main contributor to the turnover, the breakdown of revenue by geographical location of its operations and geographical location of its customers is as follows:
In EUR\u00a0million | 2023 | 2022 |
Turnover breakdown by geographic areas | ||
Europe | 1,975.3 | 2,204.1 |
Asia-Oceania | 521.7 | 616.5 |
North America | 1,063.4 | 1,215.4 |
Other | 234.0 | 245.6 |
Total | 3,794.4 | 4,281.6 |
In EUR\u00a0million | 2023 | 2022 |
Turnover breakdown by geographic areas of the customers | ||
Europe | 1,690.4 | 1,868.2 |
Asia-Oceania | 760.3 | 903.5 |
North America | 1,014.9 | 1,149.7 |
Other | 328.8 | 360.2 |
Total | 3,794.4 | 4,281.6 |
The table below presents the split of the revenue into sales of goods, services provided and other:
In EUR\u00a0million | 2023 | 2022 |
Sales of goods | 4,361.3 | 4,638.0 |
Services provided | 1,773.2 | 966.2 |
Other | 2.7 | 19.1 |
Total | 6,137.3 | 5,623.3 |
The table below presents the split by cash generating unit:
In EUR\u00a0million | 2023 | 2022 |
Performance Materials | 2,341.0 | 2,599.7 |
Refractory, Abrasives & Construction | 1,232.7 | 1,434.4 |
Other | 220.7 | 247.5 |
Imerys | 3,794.4 | 4,281.6 |
Canyon | 790.6 | 644.9 |
Affidea | 851.8 | 306.6 |
Sanoptis | 494.1 | 180.1 |
Vanreusel | 82.5 | 72.5 |
Sienna Gestion | 58.7 | 38.6 |
Sausalitos | 33.2 | 46.7 |
Sienna Real Estate | 19.3 | 15.5 |
Sienna Private Credit | 12.6 | 8.6 |
Indo | - | 28.4 |
GBL Capital and SIM | 206.4 | 210.2 |
Total | 6,137.3 | 5,623.3 |
The breakdown of the group\u2019s turnover by geographic region is as follows:
In EUR\u00a0million | 2023 | 2022 |
Belgium | 161.8 | 149.2 |
Other European countries | 3,616.1 | 2,898.1 |
Americas | 1,383.6 | 1,485.9 |
Asia | 791.6 | 924.7 |
Other | 184.1 | 165.4 |
Total | 6,137.3 | 5,623.3 |
The following table presents a different breakdown of revenue by the time at which goods and services are transferred to customers, distinguishing between goods and services transferred to customers at a given point in time and services transferred to customers over time:
In EUR\u00a0million | 2023 | 2018 |
Goods and services transferred to customers at a specific time | 4,366.6 | 4,768.5 |
Services progressively transferred to customers | 1,770.7 | 854.8 |
Total | 6,137.3 | 5,623.3 |
At Imerys\u2019 level, main contributor to the turnover, the breakdown of revenue by geographical location of its operations and geographical location of its customers is as follows:
In EUR\u00a0million | 2023 | 2022 |
Turnover breakdown by geographic areas | ||
Europe | 1,975.3 | 2,204.1 |
Asia-Oceania | 521.7 | 616.5 |
North America | 1,063.4 | 1,215.4 |
Other | 234.0 | 245.6 |
Total | 3,794.4 | 4,281.6 |
In EUR\u00a0million | 2023 | 2022 |
Turnover breakdown by geographic areas of the customers | ||
Europe | 1,690.4 | 1,868.2 |
Asia-Oceania | 760.3 | 903.5 |
North America | 1,014.9 | 1,149.7 |
Other | 328.8 | 360.2 |
Total | 3,794.4 | 4,281.6 |
Note 9Intangible assets
In EUR\u00a0million | Software | Mining rights | Patents, licenses and concessions | Trade-marks | Customer relations | Other | Total |
Gross carrying amount\u00a0 | |||||||
As of December 31, 2021 | 266.5 | 2.8 | 235.5 | 479.1 | 821.6 | 269.2 | 2,074.6 |
Investments | 29.0 | 0.2 | 0.8 | - | - | 55.3 | 85.3 |
Changes in group structure/business combinations | 8.2 | - | 13.4 | 86.0 | 713.2 | 542.9 | 1,363.6 |
Transfers between categories | 14.0 | - | (3.2) | - | - | (12.5) | (1.8) |
Disposals and retirements | (9.7) | - | (7.8) | (10.2) | (19.7) | (6.3) | (53.7) |
Foreign currency translation adjustments | 1.1 | 0.0 | (3.3) | - | 4.3 | 1.7 | 3.8 |
Other | (11.6) | (0.4) | (35.7) | (0.1) | (0.3) | (16.7) | (64.7) |
As of December 31, 2022 | 297.4 | 2.6 | 199.8 | 554.8 | 1,519.1 | 833.5 | 3,407.2 |
Investments | 14.8 | 3.7 | 2.0 | 0.0 | - | 69.7 | 90.2 |
Changes in group structure/Business combinations | 0.1 | - | 0.5 | 1.2 | 59.4 | 66.7 | 127.9 |
Transfers between categories | 39.4 | 1.0 | (23.8) | 12.4 | 91.7 | (118.4) | 2.3 |
Disposals and retirements | (25.3) | - | (0.2) | (0.2) | (22.6) | (29.9) | (78.2) |
Foreign currency translation adjustments | (0.8) | 0.0 | 0.0 | 0.1 | 0.6 | (0.2) | (0.2) |
Other | (122.9) | - | (10.2) | (182.7) | (764.9) | (27.2) | (1,108.0) |
As of December 31, 2023 | 202.7 | 7.3 | 168.1 | 385.6 | 883.2 | 794.1 | 2,441.1 |
Cumulated amortization | |||||||
As of December 31, 2021 | (175.3) | (0.7) | (38.6) | (12.2) | (109.0) | (128.8) | (464.6) |
Amortization | (32.5) | (0.2) | (2.6) | (15.2) | (85.8) | (24.8) | (161.1) |
Impairment (losses)/reversals | - | - | - | - | - | (0.1) | (0.1) |
Transfers between categories | (2.9) | - | 2.6 | - | - | 1.9 | 1.6 |
Disposals and retirements | 10.2 | - | 7.1 | 4.0 | 7.7 | 0.3 | 29.3 |
Foreign currency translation adjustments | (1.2) | (0.0) | (0.1) | - | 0.6 | (1.1) | (1.9) |
Changes in group structure/Other | 6.7 | 0.1 | 6.4 | - | 0.1 | 11.9 | 25.1 |
As of December 31, 2022 | (195.1) | (0.7) | (25.2) | (23.4) | (186.4) | (140.7) | (571.6) |
Amortization | (25.8) | (0.3) | (2.7) | (18.4) | (66.7) | (14.6) | (128.5) |
Impairment (losses)/reversals | (0.2) | - | - | - | - | (0.0) | (0.2) |
Transfers between categories | (2.3) | (0.3) | 2.6 | - | (42.5) | 44.3 | 1.8 |
Disposals and retirements | 25.3 | - | 0.2 | - | 11.1 | 25.3 | 61.9 |
Foreign currency translation adjustments | 1.0 | (0.0) | (0.1) | (0.0) | 1.6 | 0.1 | 2.6 |
Changes in group structure/Other | 83.2 | 0.0 | 5.1 | 11.3 | 159.2 | 7.6 | 266.3 |
As of December 31, 2023 | (113.9) | (1.3) | (20.1) | (30.6) | (123.8) | (78.0) | (367.7) |
Net carrying amount\u00a0 | |||||||
As of December 31, 2021 | 91.1 | 2.1 | 196.8 | 466.9 | 712.7 | 140.5 | 1,610.0 |
As of December 31, 2022 | 102.3 | 1.9 | 174.5 | 531.4 | 1,332.7 | 692.8 | 2,835.6 |
As of December 31, 2023 | 88.9 | 6.0 | 148.0 | 355.0 | 759.4 | 716.0 | 2,073.5 |
Of which: Holding | 1.0 | - | - | - | - | - | 1.0 |
Imerys | 68.3 | 6.0 | 138.5 | - | 35.0 | 85.5 | 333.3 |
Canyon | 6.4 | - | 2.6 | 276.2 | 27.5 | 39.2 | 351.9 |
Affidea | 9.0 | - | - | 73.3 | 521.2 | - | 603.5 |
Sanoptis | 1.2 | - | 0.4 | 5.5 | 149.6 | 585.1 | 741.9 |
GBL Capital and SIM | 3.0 | - | 6.3 | - | 26.2 | 6.4 | 41.8 |
The intangible assets with an indefinite useful life amount to EUR\u00a0557\u00a0million as of December\u00a031, 2023 \u2013 presented under the heading \u201cOther\u201d (EUR\u00a0653\u00a0million as of December\u00a031, 2022 \u2013 presented under the heading \u201cTrademarks\u201d and \u201cOther\u201d). These include the valuation at Sanoptis of the rights to receive insured patients for EUR\u00a0557\u00a0million (EUR\u00a0498\u00a0million s of December\u00a031, 2022). Intangible assets with finite useful lives mainly relate to customer relationships (EUR\u00a0521\u00a0million at Affidea and EUR\u00a0150\u00a0million at Sanoptis) and trademarks (EUR\u00a0276\u00a0million at Canyon).
The depreciation charges for the various periods are shown under \u201cOther operating income (expenses) from investing activities\u201d and \u201cDepreciation/ amortization of property, plant, equipment and intangible assets \u2013 consolidated operating activities\u201d in the consolidated income statement.
Research and development costs in 2023 amounted to EUR\u00a044\u00a0million (EUR\u00a042\u00a0million in 2022).
The line \u201cOther\u201d in 2023 includes mainly the reclassification of intangible assets of Webhelp to \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Regarding the emission rights, Imerys is subject to greenhouse gas regulation schemes at eleven of its facilities in Europe and one facility in the US. In 2023 and 2022, Imerys used all the emission rights allocated to its eligible facilities. As the estimated volume of greenhouse gas emissions exceeded the emission rights in 2023, the group made a provision of EUR\u00a08\u00a0million at December\u00a031, 2023 to cover the deficit (EUR\u00a04\u00a0million at December\u00a031, 2022). In addition, the carrying amount of emission rights acquired on the market was EUR\u00a015\u00a0million as of December\u00a031, 2023 (EUR\u00a08\u00a0million as of December\u00a031, 2022).
Note 10Goodwill
In EUR\u00a0million | 2023 | 2022 |
Gross carrying amount\u00a0 | ||
As of January 1 | 6,359.1 | 4,750.6 |
Changes in group structure/Business combinations | 285.3 | 1,916.1 |
Foreign currency translation adjustments | 6.7 | 45.4 |
Subsequent value adjustments | 3.3 | 3.6 |
Disposals | (74.2) | (42.0) |
Other | (2,015.9) | (314.5) |
As of December\u00a031 | 4,564.3 | 6,359.1 |
Cumulated impairment losses | ||
As of January 1 | (100.6) | (96.3) |
Impairment losses | (5.4) | (123.4) |
Foreign currency translation adjustments | 3.9 | (2.9) |
Other | (101.5) | 122.0 |
As of December\u00a031 | (203.6) | (100.6) |
Net carrying amount as of December, 31 | 4,360.7 | 6,258.5 |
Of which: Holding | - | - |
Imerys | 1,839.1 | 1,852.2 |
Webhelp | - | 2,128.3 |
Canyon | 309.1 | 309.1 |
Affidea | 936.3 | 889.2 |
Sanoptis | 1,236.6 | 965.9 |
GBL Capital and SIM | 39.7 | 113.9 |
As of December\u00a031, 2023, this caption is made up of EUR\u00a01,839\u00a0million of goodwill generated by Imerys\u2019 various business lines, EUR\u00a01,237\u00a0million of goodwill from the Sanoptis group acquisition, EUR\u00a0936\u00a0million of goodwill from the Affidea group acquisition, EUR\u00a0309\u00a0million of goodwill from the Canyon group acquisition and EUR\u00a040\u00a0million of goodwill on acquisitions by GBL Capital and Sienna Investment Managers (EUR\u00a01,852\u00a0million, EUR\u00a0966\u00a0million, EUR\u00a0889\u00a0million, EUR\u00a0309\u00a0million and EUR\u00a0114\u00a0million respectively as of December\u00a031, 2022). The heading \u201cOther\u201d in 2023 mainly reflects the reclassification of the goodwill of the Webhelp to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Definition of cash generating units (CGU)
GBL\u2019s management has retained the judgements made by Imerys, Canyon, Affidea, Sanoptis and GBL Capital and Sienna Investment Managers in\u00a0the\u00a0definition of CGUs.
For Imerys, as goodwill feeds into the business management indicators per operational segment monitored by the management, it is tested for impairment at the same levels as those monitored by the management, which are as follows: (i) Performance Minerals Europe, Middle East, Africa and Asia-Pacific (PM EMEA & APAC) and Performance Minerals Americas (PM Americas) within the Performance Minerals (PM) segment, (ii) Refractory, Abrasives & Construction (RAC) and (iii) Graphite & Carbon (IG&C). Bauxite production being designated as \u201cAssets held for sale\u201d (see Note 24), its assets are excluded from the scope of this test. Other than goodwill, all assets within Imerys including right-of-use assets net of lease liabilities and mining assets are covered within the scope of these tests.
For Canyon, the operational reporting and thus the goodwill management is carried out at the highest level, i.e., GoForGold Holding, which represents the only identified CGU.
For Affidea, the activity of the group is reported through a single CGU, the Affidea CGU.
For Sanoptis, the activity of the group is reported through a single CGU, the Sanoptis CGU.
For GBL Capital and Sienna Investment Managers, the goodwill is allocated to each investment.
In the table below, the carrying amount and the impairment loss of the goodwill are presented by CGU:
2023 | 2022 | |||
In EUR\u00a0million | Net carrying amount | Cumulated impairment losses | Net carrying amount | Cumulated impairment losses |
Sanoptis | 1,236.6 | - | 965.9 | - |
Performance Materials (Imerys) | 1,068.9 | (112.3) | 1,072.9 | (5.5) |
Affidea | 936.3 | - | 889.2 | - |
Refractory, Abrasives & Construction (Imerys) | 742.1 | (75.9) | 751.2 | (79.7) |
Canyon | 309.1 | - | 309.1 | - |
Others (Imerys) | 28.1 | - | 28.1 | - |
Sienna Gestion (SIM) | 18.3 | - | 18.3 | - |
Sienna Private Credit (SIM) | 14.4 | - | 14.4 | - |
Sienna Real Estate (SIM) | 7.0 | (15.4) | 7.0 | (15.4) |
Vanreusel (GBL Capital) | - | - | 59.2 | - |
Webhelp | - | - | 2,128.3 | - |
Sausalitos (GBL Capital) | - | - | 15.0 | - |
Total | 4,360.7 | (203.6) | 6,258.5 | (100.6) |
Impairment tests
In accordance with IAS 36, group companies conduct a yearly impairment test on all their CGUs to the extent that they report goodwill. The\u00a0recoverable amount of a CGU or an individual asset is the highest of the fair value less the costs of sale and the value in use. In practice, fair value can only be reliably estimated for individual assets and therefore corresponds to recent transaction prices for sales of similar assets. The\u00a0value in use is the most commonly used measurement basis for CGUs and individual assets.
For Imerys, the projected cash flows used in their impairment test as of December\u00a031, 2023 are based on the 2024 budget and the 2025-2027 plan. This central case was developed using external analyses of underlying markets. To calculate the terminal growth rate, Imerys uses the Gordon and Shapiro perpetual growth model. The discount rate used to calculate the value in use is determined using the weighted average cost of capital of groups comparable to Imerys in the industrial minerals sector. This rate, set at 8.00% for 2023 (8.00% for 2022), is adjusted for a country-market risk premium, which depending on the CGU or individual assets tested ranged from + 94 to + 125 bps in 2023 (+ 92 to + 174 bps in 2022). In 2023, the average discount rate after income tax amounted to 9.10% (8.89% in 2022). The calculations net of income tax are the same as those that would be performed with cash flows and rates before income tax, as required by applicable standards. The impairment tests carried out on the various Imerys CGUs did not result in the recognition of any impairment loss as of December\u00a031, 2023 and\u00a0December\u00a031, 2022.
Following the disposal of the High Temperature Solutions (HTS) line of business, Imerys has incorporated the assets of the PMAPAC CGU into the other two CGUs, PM Americas and PM EMEA & APAC. Had Imerys maintained the 2022 CGU structure and performed impairment tests on that basis, it would not have needed to recognize any impairment.
For Canyon, the projected cash flows used are based on the 2024-2028 plan. For the terminal value, Canyon uses the Gordon and Shapiro perpetual growth model. The definition of the discount rate is based on a study of the cost of capital of groups comparable to Canyon. It stands at 10.20% as of December\u00a031, 2023. (12.69% as of December\u00a031, 2022). The impairment test carried out on the Canyon CGU does not reveal any loss in value on the group\u2019s tested assets as of December\u00a031, 2023.
For Affidea, the cash flow projections used are taken from the 2024-2028 plan. For the terminal value, Affidea uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Affidea Group. The discount rate is 9.43% at December\u00a031, 2023. The impairment test performed on the Affidea CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023 and at December\u00a031,\u00a02022.
For Sanoptis, the cash flow projections used are taken from the 2024-2028 plan. For terminal value, Sanoptis uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Sanoptis Group. The discount rate is 6.82% at December\u00a031, 2023 (6.72% at December 31, 2022). The impairment test performed on the Sanoptis CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023.
For GBL Capital and SIM, the projected cash flows are derived from the financial budgets made by managements of each respective investment, covering a period of three to five years. The prepared projections are extrapolated and cover a period of ten years. For the terminal value, GBL Capital and SIM use an average of the Gordon and Shapiro perpetual growth model and multiple valuation method. The discount rate used to calculate the value in use is determined based on the weighted average cost of capital of groups comparable to each investment in their respective sector. This rate is adjusted by a country/market risk premium and a specific premium. The average discount rate after taxes is 11.07% in 2023 (11.80% in 2022). At GBL Capital and SIM, these annual tests did not reveal any impairment at December\u00a031, 2023 (EUR\u00a015\u00a0million in 2022).
In the table below, the weighted average discount and perpetual growth rates used to calculate the value in use are presented by CGU:
2023 | 2022 | |||
Discount rate | Perpetual growth rate | Discount rate | Perpetual growth rate | |
Performance Materials (Imerys)(1) | 9.21% | 2.00% | 9.06% | 1.92% |
Refractory, Abrasives & Construction (Imerys) | 8.98% | 2.08% | 8.64% | 1.98% |
Average rate Imerys | 9.10% | 2.10% | 8.89% | 1.68% |
Average rate Webhelp | - | - | 8.77% | 2.00% |
Average rate Canyon | 10.20% | 1.00% | 12.69% | 1.00% |
Average rate Affidea | 9.43% | 2.5% | - | - |
Average rate Sanoptis | 6.82% | 1.00% | 6.72% | 1.00% |
Average rate GBL Capital and SIM | 11.07% | 2.10% | 11.80% | 2.55% |
Sensitivity analysis
Of the assumptions used, those whose variation has the most significant impact on the financial statements are the forecasted cash flows, the discount rate and the perpetual growth rate. The group has carried out simulations to measure the impairment losses that would be recognized in the event of unfavorable changes in the assumptions used in the central scenario at December\u00a031, 2023. The changes used for these sensitivity tests are those that the group considers reasonably possible in the context of the test: a 5.00% decrease in forecasted cash flows; a 1.00% increase in discount rates; and a 1.00% decrease in perpetual growth rates (unchanged at December\u00a031, 2022). As summarized in the table below, the sensitivities performed on the central scenario show a total impairment of EUR\u00a0- 47\u00a0million in case of a 5.00% decrease of the forecasted cash flows, EUR\u00a0-\u00a045\u00a0million in case of a 1.00% increase of the discount rates and a total impairment of EUR\u00a00\u00a0million in case of a 1.00% decrease of the perpetual growth rates.
In EUR\u00a0million | Adverse changes |
Forecasted cash flows\u00a0 | (5%) |
Impairment loss\u00a0 | (46.6) |
Discount rates | + 100 bps |
Impairment loss\u00a0 | (45.0) |
Perpetual growth rates | (100 bps) |
Impairment loss\u00a0 | - |
In addition, Imerys carried out a sensitivity exercise incorporating the risks of climate change in the context of a global warming of + 2 degrees Celsius by 2050, as projected by the International Energy Agency (IEA) in its Stated Policies scenario published in the World Energy Outlook in 2019. This scenario, which is one of the three trajectories modeled by the IEA, was chosen by Imerys for this sensitivity exercise because it is reasonably possible. The risks taken into account in this model are heat waves as identified by the S&P Global Trucost Assessment, fires as identified by the FM\u00a0Global Assessment and the Angstr\u00f6m Index and droughts as identified by the Water Risk Filter of the World Wild Fund for Nature and the Deutsche Investitions- und Entwicklungsgesellschaft. The sites included in the sensitivity exercise are those whose risks are known to be uninsurable in the long term, according to the latest known information as of December\u00a031, 2023, as well as those whose risks are normally insurable but specifically known to be uninsurable due to specific climatic conditions. On this basis, Imerys has estimated for each site the foreseeable frequency of closure and the corresponding cash flow losses. As a result of this work, the sensitivity of the risks and opportunities related to climate issues does not highlight any impairment.
(1) Discount and perpetual growth rates have been restated to make them comparable following changes in CGUs in 2023
Note 10Goodwill
In EUR\u00a0million | 2023 | 2022 |
Gross carrying amount\u00a0 | ||
As of January 1 | 6,359.1 | 4,750.6 |
Changes in group structure/Business combinations | 285.3 | 1,916.1 |
Foreign currency translation adjustments | 6.7 | 45.4 |
Subsequent value adjustments | 3.3 | 3.6 |
Disposals | (74.2) | (42.0) |
Other | (2,015.9) | (314.5) |
As of December\u00a031 | 4,564.3 | 6,359.1 |
Cumulated impairment losses | ||
As of January 1 | (100.6) | (96.3) |
Impairment losses | (5.4) | (123.4) |
Foreign currency translation adjustments | 3.9 | (2.9) |
Other | (101.5) | 122.0 |
As of December\u00a031 | (203.6) | (100.6) |
Net carrying amount as of December, 31 | 4,360.7 | 6,258.5 |
Of which: Holding | - | - |
Imerys | 1,839.1 | 1,852.2 |
Webhelp | - | 2,128.3 |
Canyon | 309.1 | 309.1 |
Affidea | 936.3 | 889.2 |
Sanoptis | 1,236.6 | 965.9 |
GBL Capital and SIM | 39.7 | 113.9 |
As of December\u00a031, 2023, this caption is made up of EUR\u00a01,839\u00a0million of goodwill generated by Imerys\u2019 various business lines, EUR\u00a01,237\u00a0million of goodwill from the Sanoptis group acquisition, EUR\u00a0936\u00a0million of goodwill from the Affidea group acquisition, EUR\u00a0309\u00a0million of goodwill from the Canyon group acquisition and EUR\u00a040\u00a0million of goodwill on acquisitions by GBL Capital and Sienna Investment Managers (EUR\u00a01,852\u00a0million, EUR\u00a0966\u00a0million, EUR\u00a0889\u00a0million, EUR\u00a0309\u00a0million and EUR\u00a0114\u00a0million respectively as of December\u00a031, 2022). The heading \u201cOther\u201d in 2023 mainly reflects the reclassification of the goodwill of the Webhelp to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Definition of cash generating units (CGU)
GBL\u2019s management has retained the judgements made by Imerys, Canyon, Affidea, Sanoptis and GBL Capital and Sienna Investment Managers in\u00a0the\u00a0definition of CGUs.
For Imerys, as goodwill feeds into the business management indicators per operational segment monitored by the management, it is tested for impairment at the same levels as those monitored by the management, which are as follows: (i) Performance Minerals Europe, Middle East, Africa and Asia-Pacific (PM EMEA & APAC) and Performance Minerals Americas (PM Americas) within the Performance Minerals (PM) segment, (ii) Refractory, Abrasives & Construction (RAC) and (iii) Graphite & Carbon (IG&C). Bauxite production being designated as \u201cAssets held for sale\u201d (see Note 24), its assets are excluded from the scope of this test. Other than goodwill, all assets within Imerys including right-of-use assets net of lease liabilities and mining assets are covered within the scope of these tests.
For Canyon, the operational reporting and thus the goodwill management is carried out at the highest level, i.e., GoForGold Holding, which represents the only identified CGU.
For Affidea, the activity of the group is reported through a single CGU, the Affidea CGU.
For Sanoptis, the activity of the group is reported through a single CGU, the Sanoptis CGU.
For GBL Capital and Sienna Investment Managers, the goodwill is allocated to each investment.
In the table below, the carrying amount and the impairment loss of the goodwill are presented by CGU:
2023 | 2022 | |||
In EUR\u00a0million | Net carrying amount | Cumulated impairment losses | Net carrying amount | Cumulated impairment losses |
Sanoptis | 1,236.6 | - | 965.9 | - |
Performance Materials (Imerys) | 1,068.9 | (112.3) | 1,072.9 | (5.5) |
Affidea | 936.3 | - | 889.2 | - |
Refractory, Abrasives & Construction (Imerys) | 742.1 | (75.9) | 751.2 | (79.7) |
Canyon | 309.1 | - | 309.1 | - |
Others (Imerys) | 28.1 | - | 28.1 | - |
Sienna Gestion (SIM) | 18.3 | - | 18.3 | - |
Sienna Private Credit (SIM) | 14.4 | - | 14.4 | - |
Sienna Real Estate (SIM) | 7.0 | (15.4) | 7.0 | (15.4) |
Vanreusel (GBL Capital) | - | - | 59.2 | - |
Webhelp | - | - | 2,128.3 | - |
Sausalitos (GBL Capital) | - | - | 15.0 | - |
Total | 4,360.7 | (203.6) | 6,258.5 | (100.6) |
Impairment tests
In accordance with IAS 36, group companies conduct a yearly impairment test on all their CGUs to the extent that they report goodwill. The\u00a0recoverable amount of a CGU or an individual asset is the highest of the fair value less the costs of sale and the value in use. In practice, fair value can only be reliably estimated for individual assets and therefore corresponds to recent transaction prices for sales of similar assets. The\u00a0value in use is the most commonly used measurement basis for CGUs and individual assets.
For Imerys, the projected cash flows used in their impairment test as of December\u00a031, 2023 are based on the 2024 budget and the 2025-2027 plan. This central case was developed using external analyses of underlying markets. To calculate the terminal growth rate, Imerys uses the Gordon and Shapiro perpetual growth model. The discount rate used to calculate the value in use is determined using the weighted average cost of capital of groups comparable to Imerys in the industrial minerals sector. This rate, set at 8.00% for 2023 (8.00% for 2022), is adjusted for a country-market risk premium, which depending on the CGU or individual assets tested ranged from + 94 to + 125 bps in 2023 (+ 92 to + 174 bps in 2022). In 2023, the average discount rate after income tax amounted to 9.10% (8.89% in 2022). The calculations net of income tax are the same as those that would be performed with cash flows and rates before income tax, as required by applicable standards. The impairment tests carried out on the various Imerys CGUs did not result in the recognition of any impairment loss as of December\u00a031, 2023 and\u00a0December\u00a031, 2022.
Following the disposal of the High Temperature Solutions (HTS) line of business, Imerys has incorporated the assets of the PMAPAC CGU into the other two CGUs, PM Americas and PM EMEA & APAC. Had Imerys maintained the 2022 CGU structure and performed impairment tests on that basis, it would not have needed to recognize any impairment.
For Canyon, the projected cash flows used are based on the 2024-2028 plan. For the terminal value, Canyon uses the Gordon and Shapiro perpetual growth model. The definition of the discount rate is based on a study of the cost of capital of groups comparable to Canyon. It stands at 10.20% as of December\u00a031, 2023. (12.69% as of December\u00a031, 2022). The impairment test carried out on the Canyon CGU does not reveal any loss in value on the group\u2019s tested assets as of December\u00a031, 2023.
For Affidea, the cash flow projections used are taken from the 2024-2028 plan. For the terminal value, Affidea uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Affidea Group. The discount rate is 9.43% at December\u00a031, 2023. The impairment test performed on the Affidea CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023 and at December\u00a031,\u00a02022.
For Sanoptis, the cash flow projections used are taken from the 2024-2028 plan. For terminal value, Sanoptis uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Sanoptis Group. The discount rate is 6.82% at December\u00a031, 2023 (6.72% at December 31, 2022). The impairment test performed on the Sanoptis CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023.
For GBL Capital and SIM, the projected cash flows are derived from the financial budgets made by managements of each respective investment, covering a period of three to five years. The prepared projections are extrapolated and cover a period of ten years. For the terminal value, GBL Capital and SIM use an average of the Gordon and Shapiro perpetual growth model and multiple valuation method. The discount rate used to calculate the value in use is determined based on the weighted average cost of capital of groups comparable to each investment in their respective sector. This rate is adjusted by a country/market risk premium and a specific premium. The average discount rate after taxes is 11.07% in 2023 (11.80% in 2022). At GBL Capital and SIM, these annual tests did not reveal any impairment at December\u00a031, 2023 (EUR\u00a015\u00a0million in 2022).
In the table below, the weighted average discount and perpetual growth rates used to calculate the value in use are presented by CGU:
2023 | 2022 | |||
Discount rate | Perpetual growth rate | Discount rate | Perpetual growth rate | |
Performance Materials (Imerys)(1) | 9.21% | 2.00% | 9.06% | 1.92% |
Refractory, Abrasives & Construction (Imerys) | 8.98% | 2.08% | 8.64% | 1.98% |
Average rate Imerys | 9.10% | 2.10% | 8.89% | 1.68% |
Average rate Webhelp | - | - | 8.77% | 2.00% |
Average rate Canyon | 10.20% | 1.00% | 12.69% | 1.00% |
Average rate Affidea | 9.43% | 2.5% | - | - |
Average rate Sanoptis | 6.82% | 1.00% | 6.72% | 1.00% |
Average rate GBL Capital and SIM | 11.07% | 2.10% | 11.80% | 2.55% |
Sensitivity analysis
Of the assumptions used, those whose variation has the most significant impact on the financial statements are the forecasted cash flows, the discount rate and the perpetual growth rate. The group has carried out simulations to measure the impairment losses that would be recognized in the event of unfavorable changes in the assumptions used in the central scenario at December\u00a031, 2023. The changes used for these sensitivity tests are those that the group considers reasonably possible in the context of the test: a 5.00% decrease in forecasted cash flows; a 1.00% increase in discount rates; and a 1.00% decrease in perpetual growth rates (unchanged at December\u00a031, 2022). As summarized in the table below, the sensitivities performed on the central scenario show a total impairment of EUR\u00a0- 47\u00a0million in case of a 5.00% decrease of the forecasted cash flows, EUR\u00a0-\u00a045\u00a0million in case of a 1.00% increase of the discount rates and a total impairment of EUR\u00a00\u00a0million in case of a 1.00% decrease of the perpetual growth rates.
In EUR\u00a0million | Adverse changes |
Forecasted cash flows\u00a0 | (5%) |
Impairment loss\u00a0 | (46.6) |
Discount rates | + 100 bps |
Impairment loss\u00a0 | (45.0) |
Perpetual growth rates | (100 bps) |
Impairment loss\u00a0 | - |
In addition, Imerys carried out a sensitivity exercise incorporating the risks of climate change in the context of a global warming of + 2 degrees Celsius by 2050, as projected by the International Energy Agency (IEA) in its Stated Policies scenario published in the World Energy Outlook in 2019. This scenario, which is one of the three trajectories modeled by the IEA, was chosen by Imerys for this sensitivity exercise because it is reasonably possible. The risks taken into account in this model are heat waves as identified by the S&P Global Trucost Assessment, fires as identified by the FM\u00a0Global Assessment and the Angstr\u00f6m Index and droughts as identified by the Water Risk Filter of the World Wild Fund for Nature and the Deutsche Investitions- und Entwicklungsgesellschaft. The sites included in the sensitivity exercise are those whose risks are known to be uninsurable in the long term, according to the latest known information as of December\u00a031, 2023, as well as those whose risks are normally insurable but specifically known to be uninsurable due to specific climatic conditions. On this basis, Imerys has estimated for each site the foreseeable frequency of closure and the corresponding cash flow losses. As a result of this work, the sensitivity of the risks and opportunities related to climate issues does not highlight any impairment.
(1) Discount and perpetual growth rates have been restated to make them comparable following changes in CGUs in 2023
Note 10Goodwill
In EUR\u00a0million | 2023 | 2022 |
Gross carrying amount\u00a0 | ||
As of January 1 | 6,359.1 | 4,750.6 |
Changes in group structure/Business combinations | 285.3 | 1,916.1 |
Foreign currency translation adjustments | 6.7 | 45.4 |
Subsequent value adjustments | 3.3 | 3.6 |
Disposals | (74.2) | (42.0) |
Other | (2,015.9) | (314.5) |
As of December\u00a031 | 4,564.3 | 6,359.1 |
Cumulated impairment losses | ||
As of January 1 | (100.6) | (96.3) |
Impairment losses | (5.4) | (123.4) |
Foreign currency translation adjustments | 3.9 | (2.9) |
Other | (101.5) | 122.0 |
As of December\u00a031 | (203.6) | (100.6) |
Net carrying amount as of December, 31 | 4,360.7 | 6,258.5 |
Of which: Holding | - | - |
Imerys | 1,839.1 | 1,852.2 |
Webhelp | - | 2,128.3 |
Canyon | 309.1 | 309.1 |
Affidea | 936.3 | 889.2 |
Sanoptis | 1,236.6 | 965.9 |
GBL Capital and SIM | 39.7 | 113.9 |
As of December\u00a031, 2023, this caption is made up of EUR\u00a01,839\u00a0million of goodwill generated by Imerys\u2019 various business lines, EUR\u00a01,237\u00a0million of goodwill from the Sanoptis group acquisition, EUR\u00a0936\u00a0million of goodwill from the Affidea group acquisition, EUR\u00a0309\u00a0million of goodwill from the Canyon group acquisition and EUR\u00a040\u00a0million of goodwill on acquisitions by GBL Capital and Sienna Investment Managers (EUR\u00a01,852\u00a0million, EUR\u00a0966\u00a0million, EUR\u00a0889\u00a0million, EUR\u00a0309\u00a0million and EUR\u00a0114\u00a0million respectively as of December\u00a031, 2022). The heading \u201cOther\u201d in 2023 mainly reflects the reclassification of the goodwill of the Webhelp to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation).
Definition of cash generating units (CGU)
GBL\u2019s management has retained the judgements made by Imerys, Canyon, Affidea, Sanoptis and GBL Capital and Sienna Investment Managers in\u00a0the\u00a0definition of CGUs.
For Imerys, as goodwill feeds into the business management indicators per operational segment monitored by the management, it is tested for impairment at the same levels as those monitored by the management, which are as follows: (i) Performance Minerals Europe, Middle East, Africa and Asia-Pacific (PM EMEA & APAC) and Performance Minerals Americas (PM Americas) within the Performance Minerals (PM) segment, (ii) Refractory, Abrasives & Construction (RAC) and (iii) Graphite & Carbon (IG&C). Bauxite production being designated as \u201cAssets held for sale\u201d (see Note 24), its assets are excluded from the scope of this test. Other than goodwill, all assets within Imerys including right-of-use assets net of lease liabilities and mining assets are covered within the scope of these tests.
For Canyon, the operational reporting and thus the goodwill management is carried out at the highest level, i.e., GoForGold Holding, which represents the only identified CGU.
For Affidea, the activity of the group is reported through a single CGU, the Affidea CGU.
For Sanoptis, the activity of the group is reported through a single CGU, the Sanoptis CGU.
For GBL Capital and Sienna Investment Managers, the goodwill is allocated to each investment.
In the table below, the carrying amount and the impairment loss of the goodwill are presented by CGU:
2023 | 2022 | |||
In EUR\u00a0million | Net carrying amount | Cumulated impairment losses | Net carrying amount | Cumulated impairment losses |
Sanoptis | 1,236.6 | - | 965.9 | - |
Performance Materials (Imerys) | 1,068.9 | (112.3) | 1,072.9 | (5.5) |
Affidea | 936.3 | - | 889.2 | - |
Refractory, Abrasives & Construction (Imerys) | 742.1 | (75.9) | 751.2 | (79.7) |
Canyon | 309.1 | - | 309.1 | - |
Others (Imerys) | 28.1 | - | 28.1 | - |
Sienna Gestion (SIM) | 18.3 | - | 18.3 | - |
Sienna Private Credit (SIM) | 14.4 | - | 14.4 | - |
Sienna Real Estate (SIM) | 7.0 | (15.4) | 7.0 | (15.4) |
Vanreusel (GBL Capital) | - | - | 59.2 | - |
Webhelp | - | - | 2,128.3 | - |
Sausalitos (GBL Capital) | - | - | 15.0 | - |
Total | 4,360.7 | (203.6) | 6,258.5 | (100.6) |
Impairment tests
In accordance with IAS 36, group companies conduct a yearly impairment test on all their CGUs to the extent that they report goodwill. The\u00a0recoverable amount of a CGU or an individual asset is the highest of the fair value less the costs of sale and the value in use. In practice, fair value can only be reliably estimated for individual assets and therefore corresponds to recent transaction prices for sales of similar assets. The\u00a0value in use is the most commonly used measurement basis for CGUs and individual assets.
For Imerys, the projected cash flows used in their impairment test as of December\u00a031, 2023 are based on the 2024 budget and the 2025-2027 plan. This central case was developed using external analyses of underlying markets. To calculate the terminal growth rate, Imerys uses the Gordon and Shapiro perpetual growth model. The discount rate used to calculate the value in use is determined using the weighted average cost of capital of groups comparable to Imerys in the industrial minerals sector. This rate, set at 8.00% for 2023 (8.00% for 2022), is adjusted for a country-market risk premium, which depending on the CGU or individual assets tested ranged from + 94 to + 125 bps in 2023 (+ 92 to + 174 bps in 2022). In 2023, the average discount rate after income tax amounted to 9.10% (8.89% in 2022). The calculations net of income tax are the same as those that would be performed with cash flows and rates before income tax, as required by applicable standards. The impairment tests carried out on the various Imerys CGUs did not result in the recognition of any impairment loss as of December\u00a031, 2023 and\u00a0December\u00a031, 2022.
Following the disposal of the High Temperature Solutions (HTS) line of business, Imerys has incorporated the assets of the PMAPAC CGU into the other two CGUs, PM Americas and PM EMEA & APAC. Had Imerys maintained the 2022 CGU structure and performed impairment tests on that basis, it would not have needed to recognize any impairment.
For Canyon, the projected cash flows used are based on the 2024-2028 plan. For the terminal value, Canyon uses the Gordon and Shapiro perpetual growth model. The definition of the discount rate is based on a study of the cost of capital of groups comparable to Canyon. It stands at 10.20% as of December\u00a031, 2023. (12.69% as of December\u00a031, 2022). The impairment test carried out on the Canyon CGU does not reveal any loss in value on the group\u2019s tested assets as of December\u00a031, 2023.
For Affidea, the cash flow projections used are taken from the 2024-2028 plan. For the terminal value, Affidea uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Affidea Group. The discount rate is 9.43% at December\u00a031, 2023. The impairment test performed on the Affidea CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023 and at December\u00a031,\u00a02022.
For Sanoptis, the cash flow projections used are taken from the 2024-2028 plan. For terminal value, Sanoptis uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Sanoptis Group. The discount rate is 6.82% at December\u00a031, 2023 (6.72% at December 31, 2022). The impairment test performed on the Sanoptis CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023.
For GBL Capital and SIM, the projected cash flows are derived from the financial budgets made by managements of each respective investment, covering a period of three to five years. The prepared projections are extrapolated and cover a period of ten years. For the terminal value, GBL Capital and SIM use an average of the Gordon and Shapiro perpetual growth model and multiple valuation method. The discount rate used to calculate the value in use is determined based on the weighted average cost of capital of groups comparable to each investment in their respective sector. This rate is adjusted by a country/market risk premium and a specific premium. The average discount rate after taxes is 11.07% in 2023 (11.80% in 2022). At GBL Capital and SIM, these annual tests did not reveal any impairment at December\u00a031, 2023 (EUR\u00a015\u00a0million in 2022).
In the table below, the weighted average discount and perpetual growth rates used to calculate the value in use are presented by CGU:
2023 | 2022 | |||
Discount rate | Perpetual growth rate | Discount rate | Perpetual growth rate | |
Performance Materials (Imerys)(1) | 9.21% | 2.00% | 9.06% | 1.92% |
Refractory, Abrasives & Construction (Imerys) | 8.98% | 2.08% | 8.64% | 1.98% |
Average rate Imerys | 9.10% | 2.10% | 8.89% | 1.68% |
Average rate Webhelp | - | - | 8.77% | 2.00% |
Average rate Canyon | 10.20% | 1.00% | 12.69% | 1.00% |
Average rate Affidea | 9.43% | 2.5% | - | - |
Average rate Sanoptis | 6.82% | 1.00% | 6.72% | 1.00% |
Average rate GBL Capital and SIM | 11.07% | 2.10% | 11.80% | 2.55% |
Sensitivity analysis
Of the assumptions used, those whose variation has the most significant impact on the financial statements are the forecasted cash flows, the discount rate and the perpetual growth rate. The group has carried out simulations to measure the impairment losses that would be recognized in the event of unfavorable changes in the assumptions used in the central scenario at December\u00a031, 2023. The changes used for these sensitivity tests are those that the group considers reasonably possible in the context of the test: a 5.00% decrease in forecasted cash flows; a 1.00% increase in discount rates; and a 1.00% decrease in perpetual growth rates (unchanged at December\u00a031, 2022). As summarized in the table below, the sensitivities performed on the central scenario show a total impairment of EUR\u00a0- 47\u00a0million in case of a 5.00% decrease of the forecasted cash flows, EUR\u00a0-\u00a045\u00a0million in case of a 1.00% increase of the discount rates and a total impairment of EUR\u00a00\u00a0million in case of a 1.00% decrease of the perpetual growth rates.
In EUR\u00a0million | Adverse changes |
Forecasted cash flows\u00a0 | (5%) |
Impairment loss\u00a0 | (46.6) |
Discount rates | + 100 bps |
Impairment loss\u00a0 | (45.0) |
Perpetual growth rates | (100 bps) |
Impairment loss\u00a0 | - |
In addition, Imerys carried out a sensitivity exercise incorporating the risks of climate change in the context of a global warming of + 2 degrees Celsius by 2050, as projected by the International Energy Agency (IEA) in its Stated Policies scenario published in the World Energy Outlook in 2019. This scenario, which is one of the three trajectories modeled by the IEA, was chosen by Imerys for this sensitivity exercise because it is reasonably possible. The risks taken into account in this model are heat waves as identified by the S&P Global Trucost Assessment, fires as identified by the FM\u00a0Global Assessment and the Angstr\u00f6m Index and droughts as identified by the Water Risk Filter of the World Wild Fund for Nature and the Deutsche Investitions- und Entwicklungsgesellschaft. The sites included in the sensitivity exercise are those whose risks are known to be uninsurable in the long term, according to the latest known information as of December\u00a031, 2023, as well as those whose risks are normally insurable but specifically known to be uninsurable due to specific climatic conditions. On this basis, Imerys has estimated for each site the foreseeable frequency of closure and the corresponding cash flow losses. As a result of this work, the sensitivity of the risks and opportunities related to climate issues does not highlight any impairment.
(1) Discount and perpetual growth rates have been restated to make them comparable following changes in CGUs in 2023
Note 20Provisions
In EUR\u00a0million | Product guarantees | Environment | Legal, social and regulatory risks | Total |
As of December 31, 2021 | 9.7 | 268.9 | 219.3 | 497.9 |
Additions | 4.2 | 23.5 | 42.8 | 70.5 |
Uses | (6.0) | (13.8) | (22.9) | (42.8) |
Reversals | (1.2) | (0.9) | (14.7) | (16.8) |
Impact of discounting | - | 2.1 | 0.8 | 2.9 |
Changes in group structure/Business combinations | - | (9.1) | 14.1 | 5.0 |
Foreign currency translation adjustments | 0.1 | (0.1) | 8.4 | 8.4 |
Other | (1.2) | (9.8) | (32.4) | (43.4) |
As of December 31, 2022 | 5.6 | 260.7 | 215.3 | 481.6 |
Additions | 4.0 | 17.8 | 59.0 | 80.9 |
Uses | (2.9) | (13.1) | (21.1) | (37.1) |
Reversals | (0.4) | (1.6) | (16.5) | (18.5) |
Impact of discounting | - | 3.0 | - | 3.0 |
Changes in group structure/Business combinations | - | 5.7 | 0.7 | 6.4 |
Foreign currency translation adjustments | (0.1) | (0.7) | (2.8) | (3.6) |
Other | 0.0 | 15.7 | (20.2) | (4.4) |
As of December 31, 2023 | 6.3 | 287.5 | 214.4 | 508.2 |
Of which current provisions | 2.1 | 10.2 | 39.9 | 52.2 |
Of which non-current provisions | 4.2 | 277.3 | 174.6 | 456.0 |
The group\u2019s provisions totaled EUR\u00a0508\u00a0million as of December\u00a031, 2023 (EUR\u00a0482\u00a0million in 2022). They mainly relate to Imerys (EUR\u00a0470\u00a0million in\u00a02023 and EUR\u00a0423\u00a0million in 2022).
The probability of settlement and the amount of the obligations are estimated by the group, that generally calls upon in-house company experts to approve the key assumptions, taking into account the anticipated effects, regulatory changes where applicable, and independent counsel regarding material disputes and claims. The resulting estimates are subject to change depending on the uncertainties specific to each dispute. Independent counsel handles allegations of personal or financial damage implicating the civil liability of the group and potential breaches of contractual obligations or regulations on social, real estate and environmental issues. The provisions set aside for these risks are included in the EUR\u00a0214\u00a0million of provisions for legal, social and regulatory risks in the table of changes mentioned above. This includes in particular the balance of the provision set aside to resolve the litigation involving Imerys\u2019 talc operations in the US, the materiality of which justifies a specific development.
On February 13, 2019, the group\u2019s three North American talc subsidiaries decided to file for the protection, with immediate effect, of the special legal process of Chapter 11 under US bankruptcy law in order to permanently resolve the potential liabilities related to their historic commercial talc operations in the United States. Under Chapter 11, the group remains the legal owner of the share capital of the North American talc subsidiaries, but their businesses are under the judicial control of the relevant Federal Court for the District of Delaware (the \u201cBankruptcy Court\u201d), which oversees the continuing operations of the entities concerned as well as the conclusion and execution of a business reorganization plan that the North American talc subsidiaries have sought to negotiate with representatives of existing and future potential talc claimants. The Chapter 11 process suspended all ongoing litigation proceedings and enjoined any further claims being brought against these entities relating to past and current talc operations in the US. Given effective control of the North American talc subsidiaries was transferred on February 13, 2019 to the court to repay creditors, the assets and liabilities held by the North American talc subsidiaries were removed from the scope of consolidation of the group\u2019s financial statements from this date forward, which led to an additional expense of EUR\u00a0- 6\u00a0million. Negotiations between the North American talc subsidiaries, which were joined by Imerys Talc Italy, the group and the representatives of claimants led to the agreement on May 15, 2020 of a joint reorganization plan, which was filed on the same day with the Bankruptcy Court. The plan provides that once the necessary approvals have been obtained, the talc subsidiaries involved will come out of the Chapter 11 process and the group will be released from all existing and future talc related liabilities arising out of past operations of the talc subsidiaries involved, as such liabilities will be channeled into a dedicated trust to be established.
Imerys Talc Italy has been named in a small number of talc related lawsuits in the United States. Upon the grant of the required majority vote on the plan and requisite corporate approvals, Imerys Talc Italy also intends to file for Chapter 11 protection before the final confirmation of the plan and join the plan in order to benefit from the same comprehensive and permanent resolution of historic talc-related liabilities as the North American talc subsidiaries. Imerys Talc Italy\u2019s business will remain part of the group throughout and after the closing of the Chapter 11 proceedings.
Following the approval in January\u00a02021 by the Bankruptcy Court of the disclosure statement filed in conjunction with the plan , the plan was then submitted to the vote by the creditors and claimants against the talc subsidiaries involved. In accordance with the plan, the North American talc subsidiaries also sold their assets to Magris Resources, a Canadian investment fund, for USD 223\u00a0million on February 17, 2021. In April 2021, the plan was approved at a qualified majority exceeding the 75% required voting threshold under the applicable regulations. However, on October 13, 2021, the Bankruptcy Court issued a ruling that certain ballots cast in favor of the plan will not be counted and, as a consequence, the approval of the plan fell just short of the required 75% majority vote. As a result, the North American talc subsidiaries, the representatives of the claimants, and other stakeholders in the Chapter 11 process have engaged in a mediation approved by the Bankruptcy Court, with a successively extended timeline, to reach a revised plan that will achieve the required 75% majority approval vote.
The progress in the mediation and negotiation process to agree on a revised plan has been delayed by the distraction of the representatives of the claimants caused by the chapter 11 petition commenced by a new subsidiary of the Johnson & Johnson group - LTL (now renamed LLT) Management LLC - specifically created for this purpose. This separate and specific chapter 11 case has been highly contested judicially and involved many of the same stakeholders, including claimants, as the Chapter 11 of the North American talc subsidiaries.
After a first dismissal in January\u00a02023 by the relevant court of appeals of the LLT\u2019s chapter 11 petition, the new filing in April 2023 by LLT for the chapter 11 protection before the same bankruptcy court for the district of New Jersey was again dismissed in August 2023.
The mediation and negotiations between the mediation parties have finally succeeded in an agreement on a revised plan, together with all supporting documents required for its implementation, which were filed before the Bankruptcy Court on January\u00a031, 2024. The revised plan includes without any change the terms and conditions of the settlement with the group as embedded in the plan announced in May 2020. The key amendments to the plan as now reflected in the revised plan, relate to (i) the structure and governance of the trust applicable to the receipt and management of the financial proceeds from the various financial contributors to the revised plan, (ii) the allocation rules of the trust assets among talc claimants alleging different injuries, including the actual or potential North American talc subsidiaries\u2019 rights to insurance coverage and contractual indemnity, current and future potential settlement proceeds with third parties; and (iii) the detailed procedures applicable to the approval of the revised plan, reflecting in particular its alignment with the concurring chapter 11 process initiated in April 2021 by one of the previous owners of certain talc assets of North American talc subsidiaries (i.e the former North American mining group \u201cCyprus Mines\u201d) which is contributing to the revised plan.
The proposed revised plan is currently under review by the Bankruptcy Court for the approval of a new solicitation by the talc subsidiaries involved of claimants\u2019 votes on the revised plan. Subject to approval of the revised plan at the required 75% voting threshold, it will then undergo a confirmation procedure before the Bankruptcy Court to be followed by a final approval process before another competent federal court.
Under the terms and conditions of the settlement with the group as embedded in the plan and restated in the revised plan, the group\u2019s contribution consists of (i) a minimum cash payment of USD 75\u00a0million, (ii) the proceeds from the sale of the assets of the North American talc subsidiaries at a price of USD 223\u00a0million, and (iii) certain other components further outlined in the revised plan. These commitments primarily include certain insurance assets, financing of minor unsecured trade claims (USD 5\u00a0million) and certain excess administrative costs of the Chapter 11 process incurred by the talc subsidiaries involved up to a maximum of USD 15\u00a0million.
On the basis of the revised plan and the current state of the Chapter 11 process, at the date the group\u2019s 2023 financial results were approved, the group reviewed with the help of independent third-party experts and reiterated its prior estimate of the risk related to the resolution of the Chapter\u00a011 procedure and the forecast financial impact for the group. A provision of EUR\u00a0250\u00a0million was initially accrued in Imerys\u2019 2018 consolidated financial accounts, bearing in mind that the North American talc subsidiaries have been deconsolidated since February 13, 2019. At\u00a0December\u00a031,\u00a02023, the provision recognized in group\u2019s financial statements, which amounted to USD 115\u00a0million, i.e., EUR\u00a0104\u00a0million, was considered appropriate to cover the expected financial impact of the revised plan for the group.
Imerys\u2019 and Canyon\u2019s provisions to hedge product guarantees amount to EUR\u00a06\u00a0million and have a probable maturity ranging from 2024 to 2028.
Finally, the group (overwhelmingly Imerys) establishes provisions to hedge the environmental risks resulting from its industrial activity and provisions for the rehabilitation of mining sites at the end of their operating lifetimes. These provisions totaled EUR\u00a0287\u00a0million as of December\u00a031,\u00a02023 (EUR\u00a0261\u00a0million in 2022). The corresponding obligations are expected to mature between 2024 and 2028 for EUR\u00a079\u00a0million, between 2029 and 2038 for EUR\u00a099\u00a0million and as from 2039 for EUR\u00a0109\u00a0million.
Impairment tests
In accordance with IAS 36, group companies conduct a yearly impairment test on all their CGUs to the extent that they report goodwill. The\u00a0recoverable amount of a CGU or an individual asset is the highest of the fair value less the costs of sale and the value in use. In practice, fair value can only be reliably estimated for individual assets and therefore corresponds to recent transaction prices for sales of similar assets. The\u00a0value in use is the most commonly used measurement basis for CGUs and individual assets.
For Imerys, the projected cash flows used in their impairment test as of December\u00a031, 2023 are based on the 2024 budget and the 2025-2027 plan. This central case was developed using external analyses of underlying markets. To calculate the terminal growth rate, Imerys uses the Gordon and Shapiro perpetual growth model. The discount rate used to calculate the value in use is determined using the weighted average cost of capital of groups comparable to Imerys in the industrial minerals sector. This rate, set at 8.00% for 2023 (8.00% for 2022), is adjusted for a country-market risk premium, which depending on the CGU or individual assets tested ranged from + 94 to + 125 bps in 2023 (+ 92 to + 174 bps in 2022). In 2023, the average discount rate after income tax amounted to 9.10% (8.89% in 2022). The calculations net of income tax are the same as those that would be performed with cash flows and rates before income tax, as required by applicable standards. The impairment tests carried out on the various Imerys CGUs did not result in the recognition of any impairment loss as of December\u00a031, 2023 and\u00a0December\u00a031, 2022.
Following the disposal of the High Temperature Solutions (HTS) line of business, Imerys has incorporated the assets of the PMAPAC CGU into the other two CGUs, PM Americas and PM EMEA & APAC. Had Imerys maintained the 2022 CGU structure and performed impairment tests on that basis, it would not have needed to recognize any impairment.
For Canyon, the projected cash flows used are based on the 2024-2028 plan. For the terminal value, Canyon uses the Gordon and Shapiro perpetual growth model. The definition of the discount rate is based on a study of the cost of capital of groups comparable to Canyon. It stands at 10.20% as of December\u00a031, 2023. (12.69% as of December\u00a031, 2022). The impairment test carried out on the Canyon CGU does not reveal any loss in value on the group\u2019s tested assets as of December\u00a031, 2023.
For Affidea, the cash flow projections used are taken from the 2024-2028 plan. For the terminal value, Affidea uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Affidea Group. The discount rate is 9.43% at December\u00a031, 2023. The impairment test performed on the Affidea CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023 and at December\u00a031,\u00a02022.
For Sanoptis, the cash flow projections used are taken from the 2024-2028 plan. For terminal value, Sanoptis uses the Gordon and Shapiro perpetual growth model. The discount rate is based on a study of the cost of capital of groups comparable to Sanoptis Group. The discount rate is 6.82% at December\u00a031, 2023 (6.72% at December 31, 2022). The impairment test performed on the Sanoptis CGU did not reveal any impairment of the Group\u2019s assets tested at December\u00a031,\u00a02023.
For GBL Capital and SIM, the projected cash flows are derived from the financial budgets made by managements of each respective investment, covering a period of three to five years. The prepared projections are extrapolated and cover a period of ten years. For the terminal value, GBL Capital and SIM use an average of the Gordon and Shapiro perpetual growth model and multiple valuation method. The discount rate used to calculate the value in use is determined based on the weighted average cost of capital of groups comparable to each investment in their respective sector. This rate is adjusted by a country/market risk premium and a specific premium. The average discount rate after taxes is 11.07% in 2023 (11.80% in 2022). At GBL Capital and SIM, these annual tests did not reveal any impairment at December\u00a031, 2023 (EUR\u00a015\u00a0million in 2022).
In the table below, the weighted average discount and perpetual growth rates used to calculate the value in use are presented by CGU:
2023 | 2022 | |||
Discount rate | Perpetual growth rate | Discount rate | Perpetual growth rate | |
Performance Materials (Imerys)(1) | 9.21% | 2.00% | 9.06% | 1.92% |
Refractory, Abrasives & Construction (Imerys) | 8.98% | 2.08% | 8.64% | 1.98% |
Average rate Imerys | 9.10% | 2.10% | 8.89% | 1.68% |
Average rate Webhelp | - | - | 8.77% | 2.00% |
Average rate Canyon | 10.20% | 1.00% | 12.69% | 1.00% |
Average rate Affidea | 9.43% | 2.5% | - | - |
Average rate Sanoptis | 6.82% | 1.00% | 6.72% | 1.00% |
Average rate GBL Capital and SIM | 11.07% | 2.10% | 11.80% | 2.55% |
On February 13, 2019, the group\u2019s three North American talc subsidiaries decided to file for the protection, with immediate effect, of the special legal process of Chapter 11 under US bankruptcy law in order to permanently resolve the potential liabilities related to their historic commercial talc operations in the United States. Under Chapter 11, the group remains the legal owner of the share capital of the North American talc subsidiaries, but their businesses are under the judicial control of the relevant Federal Court for the District of Delaware (the \u201cBankruptcy Court\u201d), which oversees the continuing operations of the entities concerned as well as the conclusion and execution of a business reorganization plan that the North American talc subsidiaries have sought to negotiate with representatives of existing and future potential talc claimants. The Chapter 11 process suspended all ongoing litigation proceedings and enjoined any further claims being brought against these entities relating to past and current talc operations in the US. Given effective control of the North American talc subsidiaries was transferred on February 13, 2019 to the court to repay creditors, the assets and liabilities held by the North American talc subsidiaries were removed from the scope of consolidation of the group\u2019s financial statements from this date forward, which led to an additional expense of EUR\u00a0- 6\u00a0million. Negotiations between the North American talc subsidiaries, which were joined by Imerys Talc Italy, the group and the representatives of claimants led to the agreement on May 15, 2020 of a joint reorganization plan, which was filed on the same day with the Bankruptcy Court. The plan provides that once the necessary approvals have been obtained, the talc subsidiaries involved will come out of the Chapter 11 process and the group will be released from all existing and future talc related liabilities arising out of past operations of the talc subsidiaries involved, as such liabilities will be channeled into a dedicated trust to be established.
Imerys Talc Italy has been named in a small number of talc related lawsuits in the United States. Upon the grant of the required majority vote on the plan and requisite corporate approvals, Imerys Talc Italy also intends to file for Chapter 11 protection before the final confirmation of the plan and join the plan in order to benefit from the same comprehensive and permanent resolution of historic talc-related liabilities as the North American talc subsidiaries. Imerys Talc Italy\u2019s business will remain part of the group throughout and after the closing of the Chapter 11 proceedings.
Following the approval in January\u00a02021 by the Bankruptcy Court of the disclosure statement filed in conjunction with the plan , the plan was then submitted to the vote by the creditors and claimants against the talc subsidiaries involved. In accordance with the plan, the North American talc subsidiaries also sold their assets to Magris Resources, a Canadian investment fund, for USD 223\u00a0million on February 17, 2021. In April 2021, the plan was approved at a qualified majority exceeding the 75% required voting threshold under the applicable regulations. However, on October 13, 2021, the Bankruptcy Court issued a ruling that certain ballots cast in favor of the plan will not be counted and, as a consequence, the approval of the plan fell just short of the required 75% majority vote. As a result, the North American talc subsidiaries, the representatives of the claimants, and other stakeholders in the Chapter 11 process have engaged in a mediation approved by the Bankruptcy Court, with a successively extended timeline, to reach a revised plan that will achieve the required 75% majority approval vote.
The progress in the mediation and negotiation process to agree on a revised plan has been delayed by the distraction of the representatives of the claimants caused by the chapter 11 petition commenced by a new subsidiary of the Johnson & Johnson group - LTL (now renamed LLT) Management LLC - specifically created for this purpose. This separate and specific chapter 11 case has been highly contested judicially and involved many of the same stakeholders, including claimants, as the Chapter 11 of the North American talc subsidiaries.
After a first dismissal in January\u00a02023 by the relevant court of appeals of the LLT\u2019s chapter 11 petition, the new filing in April 2023 by LLT for the chapter 11 protection before the same bankruptcy court for the district of New Jersey was again dismissed in August 2023.
The mediation and negotiations between the mediation parties have finally succeeded in an agreement on a revised plan, together with all supporting documents required for its implementation, which were filed before the Bankruptcy Court on January\u00a031, 2024. The revised plan includes without any change the terms and conditions of the settlement with the group as embedded in the plan announced in May 2020. The key amendments to the plan as now reflected in the revised plan, relate to (i) the structure and governance of the trust applicable to the receipt and management of the financial proceeds from the various financial contributors to the revised plan, (ii) the allocation rules of the trust assets among talc claimants alleging different injuries, including the actual or potential North American talc subsidiaries\u2019 rights to insurance coverage and contractual indemnity, current and future potential settlement proceeds with third parties; and (iii) the detailed procedures applicable to the approval of the revised plan, reflecting in particular its alignment with the concurring chapter 11 process initiated in April 2021 by one of the previous owners of certain talc assets of North American talc subsidiaries (i.e the former North American mining group \u201cCyprus Mines\u201d) which is contributing to the revised plan.
The proposed revised plan is currently under review by the Bankruptcy Court for the approval of a new solicitation by the talc subsidiaries involved of claimants\u2019 votes on the revised plan. Subject to approval of the revised plan at the required 75% voting threshold, it will then undergo a confirmation procedure before the Bankruptcy Court to be followed by a final approval process before another competent federal court.
Under the terms and conditions of the settlement with the group as embedded in the plan and restated in the revised plan, the group\u2019s contribution consists of (i) a minimum cash payment of USD 75\u00a0million, (ii) the proceeds from the sale of the assets of the North American talc subsidiaries at a price of USD 223\u00a0million, and (iii) certain other components further outlined in the revised plan. These commitments primarily include certain insurance assets, financing of minor unsecured trade claims (USD 5\u00a0million) and certain excess administrative costs of the Chapter 11 process incurred by the talc subsidiaries involved up to a maximum of USD 15\u00a0million.
On the basis of the revised plan and the current state of the Chapter 11 process, at the date the group\u2019s 2023 financial results were approved, the group reviewed with the help of independent third-party experts and reiterated its prior estimate of the risk related to the resolution of the Chapter\u00a011 procedure and the forecast financial impact for the group. A provision of EUR\u00a0250\u00a0million was initially accrued in Imerys\u2019 2018 consolidated financial accounts, bearing in mind that the North American talc subsidiaries have been deconsolidated since February 13, 2019. At\u00a0December\u00a031,\u00a02023, the provision recognized in group\u2019s financial statements, which amounted to USD 115\u00a0million, i.e., EUR\u00a0104\u00a0million, was considered appropriate to cover the expected financial impact of the revised plan for the group.
Techniques used to measure the fair value of level 3 financial instruments:
Equity investments
The investments in unlisted companies are valued internally at their fair value on a quarterly basis, based on a specific valuation method or a combination of valuation methods, the specific valuations the method of combination of methods being consistent from an closing to another. Methodologies are aligned across the portfolio, though with different weights for respective methods depending on the company. Valuation are approved by the Valuation Committee of GBL and reviewed by an external advisor. Changes in the fair value of these investments are recognized in the revaluation reserves.
Investments in funds or co-investments owned by GBL Capital are revalued at their fair value, as notably determined by the managers of the funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss).
", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__210-1": { "value": "Leases
The group uses leases to obtain from the lessor the right to use certain mining, industrial and logistics equipment, as well as real estate administrative, industrial and logistical property. As of December\u00a031, 2023, the value of these rights, recognized in\u201cRight-of-use assets\u201d, amounted to EUR\u00a0670million (EUR\u00a0868\u00a0million as of December\u00a031, 2022).\u201cRight-of-use assets\u201d represent the following assets:
In EUR\u00a0million | Land and buildings | Mineral reserves | Plants, machinery, equipment and rolling stock | Assets under construction | Other property, plant and equipment | Total |
Gross carrying amount | ||||||
As of December 31, 2021 | 474.7 | - | 101.0 | - | 118.8 | 694.5 |
Investments | 222.1 | - | 41.0 | - | 27.2 | 290.2 |
Changes in group structure/Business combinations | 298.2 | - | 114.0 | - | 9.7 | 421.9 |
Disposals and retirements | (32.3) | - | (6.1) | - | 2.7 | (35.6) |
Foreign currency translation adjustments | 1.5 | - | (16.8) | - | 4.5 | (10.8) |
Other | (78.6) | - | (21.1) | - | (10.1) | (109.9) |
As of December 31, 2022 | 885.6 | - | 211.9 | - | 152.8 | 1,250.3 |
Investments | 94.7 | - | 48.6 | - | 22.0 | 165.2 |
Changes in group structure/Business combinations | 77.1 | - | 0.1 | - | 1.0 | 78.2 |
Disposals and retirements | (17.6) | - | (1.0) | - | (69.6) | (88.1) |
Foreign currency translation adjustments | (0.2) | - | 0.7 | - | (0.6) | (0.1) |
Other | (396.7) | - | (33.2) | - | (8.1) | (437.9) |
As of December 31, 2023 | 643.0 | - | 227.2 | - | 97.5 | 967.8 |
Cumulated depreciation | ||||||
As of December 31, 2021 | (129.9) | - | (51.7) | - | (48.2) | (229.9) |
Depreciation | (104.9) | - | (26.0) | - | (22.9) | (153.9) |
Impairment (losses)/reversals | 0.2 | - | (0.1) | - | (0.1) | - |
Disposals and retirements | 27.4 | - | 2.4 | - | - | 29.8 |
Foreign currency translation adjustments | (10.9) | - | 17.6 | - | (4.6) | 2.1 |
Changes in group structure/Other | (16.8) | - | (19.0) | - | 4.9 | (30.9) |
As of December 31, 2022 | (234.9) | - | (76.9) | - | (71.0) | (382.8) |
Depreciation | (91.8) | - | (29.0) | - | (17.6) | (138.4) |
Impairment (losses)/reversals | - | - | - | - | (5.0) | (5.0) |
Disposals and retirements | 13.9 | - | 0.9 | - | 26.2 | 41.1 |
Foreign currency translation adjustments | 0.9 | - | 0.2 | - | 0.8 | 1.8 |
Changes in group structure/Other | 158.0 | - | 22.0 | - | 5.9 | 185.9 |
As of December 31, 2023 | (153.8) | - | (82.8) | - | (60.7) | (297.2) |
Net carrying amount\u00a0 | ||||||
As of December 31, 2021 | 344.8 | - | 49.3 | - | 70.6 | 464.7 |
As of December 31, 2022 | 650.7 | - | 135.1 | - | 81.8 | 867.5 |
As of December 31, 2023 | 489.2 | - | 144.4 | - | 36.8 | 670.5 |
Of which: Holding | 10.8 | - | - | - | - | 10.8 |
Imerys | 88.1 | - | 37.7 | - | 25.6 | 151.4 |
Canyon | 40.6 | - | 1.3 | - | - | 41.9 |
Affidea | 202.5 | - | 104.5 | - | - | 307.1 |
Sanoptis | 131.7 | - | 0.5 | - | 7.2 | 139.5 |
GBL Capital and SIM | 15.3 | - | 0.3 | - | 4.3 | 19.9 |
The right-of-use and lease liability model is applied to all leases, except leases with a term of 12 months or less, leases of low-value assets and variable lease payments and services, which are recognized in expenses (EUR\u00a081\u00a0million in 2023 and EUR\u00a041\u00a0million in 2022). As of December\u00a031, 2023, \u201clease liabilities\u201d recognized against \u201cright-of-use assets\u201d amounted to EUR\u00a0683\u00a0million (EUR\u00a0908\u00a0million as of December\u00a031, 2022) and generated an interest expense of EUR\u00a028\u00a0million recognized in financial income (expenses). Cash payments made in 2023 totaled EUR\u00a0173\u00a0million, broken down as EUR\u00a0145\u00a0million for the principal and EUR\u00a028\u00a0million in interest, respectively in financing and operating activities in the consolidated statement of cash flows (respectively EUR\u00a0253\u00a0million, EUR\u00a0217\u00a0million and EUR\u00a036\u00a0million in 2022). The group does not generate any significant revenue from leasing the freehold assets it owns, nor from the sub-lease of assets leased.
17.2Financial liabilities
In EUR\u00a0million | 2023 | 2022 |
Non-current financial liabilities | 7,177.2 | 8,714.7 |
Bonds (GBL)\u00a0 | 1,984.5 | 1,985.2 |
Convertible bonds (GBL) | 499.8 | 499.7 |
Exchangeable bonds (GBL) | 486.3 | 479.6 |
Bonds (Imerys) | 1,710.7 | 1,705.3 |
Bank borrowings (Webhelp) | - | 1,738.1 |
Bank borrowings (Canyon) | 225.3 | 225.7 |
Bank borrowings (Affidea) | 741.9 | 572.3 |
Bank borrowings (Sanoptis) | 899.0 | 602.0 |
Bank borrowings (GBL Capital) | - | 89.7 |
Lease liabilities | 574.6 | 738.8 |
Other non-current financial liabilities\u00a0 | 55.0 | 78.2 |
Current financial liabilities | 1,173.7 | 1,654.6 |
Bonds (GBL)\u00a0 | 499.8 | - |
Exchangeable bonds (GBL) | - | 447.4 |
Bank borrowings (GBL) | - | 535.3 |
Bank borrowings (Imerys) | 23.5 | 437.6 |
Bonds (Imerys) | 500.0 | - |
Lease liabilities | 108.8 | 168.9 |
Other current financial liabilities | 41.7 | 65.4 |
Lease liabilities
These liabilities mature in 2024 for a total of EUR\u00a0109\u00a0million, between 2025 and 2029 for EUR\u00a0309\u00a0million and EUR\u00a0267\u00a0million thereafter.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__212-1": { "value": "Note 12Other non-current assets
In EUR\u00a0million | 2023 | 2022 |
Non-current financial assets | 600.9 | 75.7 |
Derivative financial instruments - Hedging | 0.2 | 9.6 |
Derivative financial instruments - Held for trading | 27.0 | - |
Long-term advance payments, loans and deposits | 563.7 | 43.6 |
Other | 10.0 | 22.5 |
Non-current non-financial assets | 41.9 | 57.2 |
Assets related to pension plans | 1.0 | 17.1 |
Other | 40.8 | 40.1 |
Total\u00a0 | 642.8 | 132.9 |
Of which: Holding | 520.7 | 0.6 |
Imerys | 41.5 | 54.9 |
Webhelp | - | 28.0 |
Canyon | 2.1 | 13.1 |
Affidea | 10.7 | 4.8 |
Sanoptis | 9.9 | 6.2 |
GBL Capital and SIM | 57.9 | 25.4 |
The heading \u201cLong-term advance payments, loans and deposits\u201d mainly includes, as at December\u00a031, 2023, the Concentrix note with maturity in September 2025 for a nominal amount of EUR\u00a0493\u00a0million and bearing a facial yearly interest rate of 2.00%.
Note 18Other current assets
In EUR\u00a0million | 2023 | 2022 |
Current financial assets | 60.3 | 90.9 |
Derivative financial instruments held for trading | 25.5 | 17.4 |
Derivative financial instruments - Hedging | 13.7 | 35.5 |
Other | 21.1 | 38.0 |
Current non financial assets | 377.1 | 498.7 |
Tax assets other than those related to income taxes | 101.1 | 110.7 |
Other taxes and VAT to be recovered | 124.1 | 201.6 |
Deferred expenses | 57.7 | 85.1 |
Other | 94.2 | 101.2 |
Total | 437.4 | 589.5 |
Of which: Holding | 39.4 | 44.0 |
Imerys | 253.7 | 235.6 |
Webhelp | - | 179.4 |
Canyon | 29.9 | 45.7 |
Affidea | 50.9 | 26.8 |
Sanoptis | 49.2 | 29.2 |
GBL Capital and SIM | 14.4 | 28.8 |
Note 12Other non-current assets
In EUR\u00a0million | 2023 | 2022 |
Non-current financial assets | 600.9 | 75.7 |
Derivative financial instruments - Hedging | 0.2 | 9.6 |
Derivative financial instruments - Held for trading | 27.0 | - |
Long-term advance payments, loans and deposits | 563.7 | 43.6 |
Other | 10.0 | 22.5 |
Non-current non-financial assets | 41.9 | 57.2 |
Assets related to pension plans | 1.0 | 17.1 |
Other | 40.8 | 40.1 |
Total\u00a0 | 642.8 | 132.9 |
Of which: Holding | 520.7 | 0.6 |
Imerys | 41.5 | 54.9 |
Webhelp | - | 28.0 |
Canyon | 2.1 | 13.1 |
Affidea | 10.7 | 4.8 |
Sanoptis | 9.9 | 6.2 |
GBL Capital and SIM | 57.9 | 25.4 |
The heading \u201cLong-term advance payments, loans and deposits\u201d mainly includes, as at December\u00a031, 2023, the Concentrix note with maturity in September 2025 for a nominal amount of EUR\u00a0493\u00a0million and bearing a facial yearly interest rate of 2.00%.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "s7_notes__7__214-1": { "value": "Note 12Other non-current assets
In EUR\u00a0million | 2023 | 2022 |
Non-current financial assets | 600.9 | 75.7 |
Derivative financial instruments - Hedging | 0.2 | 9.6 |
Derivative financial instruments - Held for trading | 27.0 | - |
Long-term advance payments, loans and deposits | 563.7 | 43.6 |
Other | 10.0 | 22.5 |
Non-current non-financial assets | 41.9 | 57.2 |
Assets related to pension plans | 1.0 | 17.1 |
Other | 40.8 | 40.1 |
Total\u00a0 | 642.8 | 132.9 |
Of which: Holding | 520.7 | 0.6 |
Imerys | 41.5 | 54.9 |
Webhelp | - | 28.0 |
Canyon | 2.1 | 13.1 |
Affidea | 10.7 | 4.8 |
Sanoptis | 9.9 | 6.2 |
GBL Capital and SIM | 57.9 | 25.4 |
The heading \u201cLong-term advance payments, loans and deposits\u201d mainly includes, as at December\u00a031, 2023, the Concentrix note with maturity in September 2025 for a nominal amount of EUR\u00a0493\u00a0million and bearing a facial yearly interest rate of 2.00%.
Note 18Other current assets
In EUR\u00a0million | 2023 | 2022 |
Current financial assets | 60.3 | 90.9 |
Derivative financial instruments held for trading | 25.5 | 17.4 |
Derivative financial instruments - Hedging | 13.7 | 35.5 |
Other | 21.1 | 38.0 |
Current non financial assets | 377.1 | 498.7 |
Tax assets other than those related to income taxes | 101.1 | 110.7 |
Other taxes and VAT to be recovered | 124.1 | 201.6 |
Deferred expenses | 57.7 | 85.1 |
Other | 94.2 | 101.2 |
Total | 437.4 | 589.5 |
Of which: Holding | 39.4 | 44.0 |
Imerys | 253.7 | 235.6 |
Webhelp | - | 179.4 |
Canyon | 29.9 | 45.7 |
Affidea | 50.9 | 26.8 |
Sanoptis | 49.2 | 29.2 |
GBL Capital and SIM | 14.4 | 28.8 |
13.1 Breakdown of the\u201cincome taxes\u201d heading
In EUR\u00a0million | 2023 | 2022 |
Current taxes | (88.5) | (122.3) |
For the current year | (106.6) | (126.7) |
For previous years | 18.1 | 4.5 |
Deferred taxes | (23.7) | 17.3 |
Related to the creation and reversal of temporary differences | (30.1) | 26.0 |
Related to changes in tax rates or new tax liabilities | 0.8 | 0.1 |
Related to the recognition/(use) of deferred tax assets resulting from losses from previous periods | 2.9 | (9.0) |
Other | 2.7 | 0.1 |
Total | (112.2) | (105.0) |
13.2\tReconciliation of the income tax expense for the year
In EUR\u00a0million | 2023 | 2022 |
Profit (loss) before income taxes from continuing operations | 499.7 | (35.3) |
Share of profit (loss) of equity-accounted entities | (138.5) | (35.9) |
Profit (loss) before income taxes and before share of profit (loss) of equity-accounted entities | 361.2 | (71.2) |
Taxes at Belgian rate (25.00% in 2023 and in 2022) | (90.3) | 17.8 |
Impact of different tax rates in foreign countries\u00a0 | (18.2) | (10.3) |
Tax impact of non-taxable income | 190.9 | 152.4 |
Tax impact of non-deductible expenses | (89.2) | (206.0) |
Tax impact of changes in tax rates for subsidiaries | 0.8 | (0.0) |
Tax impact of adjustments relating to previous years or previously unrecognized deferred tax assets | (1.3) | (1.1) |
Other | (104.9) | (57.8) |
Income tax (expense) for the year | (112.2) | (105.0) |
The corporate tax rate in Belgium was 25.00% in 2023, as in 2022.
The effective tax rate in 2023 stands at 31.06%, compared with - 147.47% in 2022.
As a holding company, GBL is not supposed to pay tax as most of its income \u2013 dividends and capital gains \u2013 come from profits already taxed at the level of the participation. If GBL were to be taxed in turn on the dividends/capital gains, there would be double taxation. This regime is therefore not a tax advantage granted to holding companies, but quite simply a means to avoid double taxation (application of the European Parent-Subsidiary Directive).
13.3Deferred taxes by nature in the balance sheet
Deferred tax assets | Deferred tax liabilities | |||
In EUR\u00a0million | 2023 | 2022 | 2023 | 2022 |
Property, plant, equipment and intangible assets | 112.8 | 150.7 | (693.8) | (836.5) |
Inventories, trade receivables, trade payables and provisions | 68.5 | 80.1 | (15.3) | (7.9) |
Employee benefit obligations | 45.3 | 42.3 | (0.1) | (1.1) |
Unused tax losses and credits | 51.1 | 42.6 | - | - |
Other | 133.1 | 101.2 | (56.3) | (51.2) |
Offsetting of assets/liabilities | (249.0) | (237.2) | 249.0 | 237.2 |
Total | 161.8 | 179.6 | (516.5) | (659.4) |
Of which: Holding | - | - | - | - |
Imerys | 114.5 | 110.7 | (81.2) | (99.9) |
Webhelp | - | 16.3 | - | (142.2) |
Canyon | 11.7 | 7.8 | (103.0) | (112.8) |
Affidea | 20.2 | 18.8 | (136.1) | (140.1) |
Sanoptis | 13.9 | 24.9 | (186.9) | (139.9) |
GBL Capital and SIM | 1.5 | 1.2 | (9.4) | (24.5) |
Deferred tax assets are recognized for tax losses carried forward when their recovery is deemed probable and over an expected recovery horizon not exceeding five years. The valuation of deferred tax assets recognized in this regard is based on an analysis of the loss\u2019 constitution, the probability of recurrence of losses in the future, future business prospects and national laws limiting the use of carryforward losses. As of December\u00a031, 2023, these deferred tax assets thus recognized amount to a total of EUR\u00a051\u00a0million (EUR\u00a043\u00a0million in 2022).
Beside those recognized deferred tax assets, the group has also accumulated other tax losses carried forward, with limited or unlimited lifetime, and/or tax credits that did not give rise to the recognition of\u00a0a\u00a0deferred tax asset because their recovery is considered uncertain.
The following table shows the evolution of those unrecognized tax losses carried forward and tax credits in 2023 and 2022:
In EUR\u00a0million | 2023 | 2022 | |
Unrecognized tax losses and credits | 10,767.5 | (1) | 7,186.6(2) |
Total | 10,767.5 | 7,186.6 | |
Of which: Holding | 9,767.2 | 6,360.9 | |
Imerys | 635.2 | 477.6 | |
Webhelp | - | 38.2 | |
Canyon | - | - | |
Affidea | 262.1 | 219.9 | |
Sanoptis | - | - | |
GBL Capital and SIM | 103.0 | 90.0 |
No deferred tax liabilities are recognized in relation to the temporary tax differences between the carrying amount and the tax value of investment securities if the group is able to verify the date of the temporary difference\u2019s reversal and if it is likely that this difference will not be reversed in the foreseeable future. The group estimates that the deferred tax liabilities not recognized in this regard as of December\u00a031, 2023 amount to EUR\u00a07\u00a0million (EUR\u00a08\u00a0million as of December\u00a031, 2022).
The International Tax Reform-Pillar Two Model Rules aim at ensuring that groups with revenue of EUR\u00a0750.0\u00a0million or above pay tax of at least 15.0% on the income arising in each of the countries in which they operate (\u201cGloBE Rules\u201d published by the Organisation for Economic Co-operation and Development (\u201cOECD\u201d)).
As this newly (substantively) enacted legislation is only effective as from January 1,\u00a02024, there is no current tax impact for the year ended December\u00a031,\u00a02023. In compliance with the IAS 12 Amendments published in May 2023, the group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.
The group operates in various jurisdictions which have enacted a new legislation to implement this global minimum top-up tax. The group has been working internally and together with external advisors to assess (i) if and (ii) to which extent the group would be subject to top-up tax in any of the jurisdictions. At the same time, the group is in the process of setting up standard procedures for reporting information through its various consolidated subsidiaries. The group continues to work on those assessments, to further fine-tune the analysis.
(1)\tAt the end of 2023 or 2022, depending on available information and the reliability of estimates
(2)\tAt the end of 2022 or 2021, depending on available information and the reliability of estimates
The following tables show the evolution of deferred tax assets and liabilities in 2023 and 2022:
In EUR\u00a0million | As of January 1, 2023 | Result | Statement of comprehensive income | Other | As of December 31, 2023 |
Deferred tax assets | 179.6 | (59.2) | 43.6 | (2.2) | 161.8 |
Deferred tax liabilities\u00a0 | (659.4) | 35.5 | (31.5) | 138.8 | (516.5) |
Net | (479.8) | (23.7) | 12.1 | 136.6 | (354.7) |
In EUR\u00a0million | |||||
As of January 1, 2022 | Result | Statement of comprehensive income | Other | As of December 31, 2022 | |
Deferred tax assets | 162.8 | 17.5 | 8.3 | (9.0) | 179.6 |
Deferred tax liabilities\u00a0 | (458.4) | 19.5 | 7.6 | (228.1) | (659.4) |
Net | (295.6) | 37.0 | 15.9 | (237.1) | (479.8) |
In 2023, the amounts included under \u201cOther\u201d are due to the consolidation of the new subsidiaries acquired and the deconsolidation of Webhelp.
Finally, the different taxes directly recorded under shareholders equity are shown in the following table:
In EUR\u00a0million | 2023 | 2022 |
Actuarial gains (losses) | (28.5) | 39.0 |
Of which amounts before taxes | (34.0) | 46.5 |
Of which deferred taxes | 5.5 | (7.5) |
Gains and (losses) on financial liabilities measured at fair value attributable to the acquisition of a controlling or non-controlling interest | 5.5 | (10.6) |
Of which amounts before taxes | 5.8 | (8.9) |
Of which deferred taxes | (0.3) | (1.7) |
Foreign currency translation adjustments | 57.1 | 101.2 |
Of which amounts before taxes | 52.9 | 101.6 |
Of which deferred taxes | 4.2 | (0.4) |
Cash flow hedge | 57.5 | (129.2) |
Of which amounts before taxes | 54.8 | (154.7) |
Of which deferred taxes | 2.7 | 25.5 |
Revaluation reserves | (285.9) | (3,618.6) |
Of which amounts before taxes | (285.9) | (3,618.6) |
Of which deferred taxes | - | - |
13.3Deferred taxes by nature in the balance sheet
Deferred tax assets | Deferred tax liabilities | |||
In EUR\u00a0million | 2023 | 2022 | 2023 | 2022 |
Property, plant, equipment and intangible assets | 112.8 | 150.7 | (693.8) | (836.5) |
Inventories, trade receivables, trade payables and provisions | 68.5 | 80.1 | (15.3) | (7.9) |
Employee benefit obligations | 45.3 | 42.3 | (0.1) | (1.1) |
Unused tax losses and credits | 51.1 | 42.6 | - | - |
Other | 133.1 | 101.2 | (56.3) | (51.2) |
Offsetting of assets/liabilities | (249.0) | (237.2) | 249.0 | 237.2 |
Total | 161.8 | 179.6 | (516.5) | (659.4) |
Of which: Holding | - | - | - | - |
Imerys | 114.5 | 110.7 | (81.2) | (99.9) |
Webhelp | - | 16.3 | - | (142.2) |
Canyon | 11.7 | 7.8 | (103.0) | (112.8) |
Affidea | 20.2 | 18.8 | (136.1) | (140.1) |
Sanoptis | 13.9 | 24.9 | (186.9) | (139.9) |
GBL Capital and SIM | 1.5 | 1.2 | (9.4) | (24.5) |
Deferred tax assets are recognized for tax losses carried forward when their recovery is deemed probable and over an expected recovery horizon not exceeding five years. The valuation of deferred tax assets recognized in this regard is based on an analysis of the loss\u2019 constitution, the probability of recurrence of losses in the future, future business prospects and national laws limiting the use of carryforward losses. As of December\u00a031, 2023, these deferred tax assets thus recognized amount to a total of EUR\u00a051\u00a0million (EUR\u00a043\u00a0million in 2022).
Beside those recognized deferred tax assets, the group has also accumulated other tax losses carried forward, with limited or unlimited lifetime, and/or tax credits that did not give rise to the recognition of\u00a0a\u00a0deferred tax asset because their recovery is considered uncertain.
The following table shows the evolution of those unrecognized tax losses carried forward and tax credits in 2023 and 2022:
In EUR\u00a0million | 2023 | 2022 | |
Unrecognized tax losses and credits | 10,767.5 | (1) | 7,186.6(2) |
Total | 10,767.5 | 7,186.6 | |
Of which: Holding | 9,767.2 | 6,360.9 | |
Imerys | 635.2 | 477.6 | |
Webhelp | - | 38.2 | |
Canyon | - | - | |
Affidea | 262.1 | 219.9 | |
Sanoptis | - | - | |
GBL Capital and SIM | 103.0 | 90.0 |
No deferred tax liabilities are recognized in relation to the temporary tax differences between the carrying amount and the tax value of investment securities if the group is able to verify the date of the temporary difference\u2019s reversal and if it is likely that this difference will not be reversed in the foreseeable future. The group estimates that the deferred tax liabilities not recognized in this regard as of December\u00a031, 2023 amount to EUR\u00a07\u00a0million (EUR\u00a08\u00a0million as of December\u00a031, 2022).
The International Tax Reform-Pillar Two Model Rules aim at ensuring that groups with revenue of EUR\u00a0750.0\u00a0million or above pay tax of at least 15.0% on the income arising in each of the countries in which they operate (\u201cGloBE Rules\u201d published by the Organisation for Economic Co-operation and Development (\u201cOECD\u201d)).
As this newly (substantively) enacted legislation is only effective as from January 1,\u00a02024, there is no current tax impact for the year ended December\u00a031,\u00a02023. In compliance with the IAS 12 Amendments published in May 2023, the group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.
The group operates in various jurisdictions which have enacted a new legislation to implement this global minimum top-up tax. The group has been working internally and together with external advisors to assess (i) if and (ii) to which extent the group would be subject to top-up tax in any of the jurisdictions. At the same time, the group is in the process of setting up standard procedures for reporting information through its various consolidated subsidiaries. The group continues to work on those assessments, to further fine-tune the analysis.
(1)\tAt the end of 2023 or 2022, depending on available information and the reliability of estimates
(2)\tAt the end of 2022 or 2021, depending on available information and the reliability of estimates
The following tables show the evolution of deferred tax assets and liabilities in 2023 and 2022:
In EUR\u00a0million | As of January 1, 2023 | Result | Statement of comprehensive income | Other | As of December 31, 2023 |
Deferred tax assets | 179.6 | (59.2) | 43.6 | (2.2) | 161.8 |
Deferred tax liabilities\u00a0 | (659.4) | 35.5 | (31.5) | 138.8 | (516.5) |
Net | (479.8) | (23.7) | 12.1 | 136.6 | (354.7) |
In EUR\u00a0million | |||||
As of January 1, 2022 | Result | Statement of comprehensive income | Other | As of December 31, 2022 | |
Deferred tax assets | 162.8 | 17.5 | 8.3 | (9.0) | 179.6 |
Deferred tax liabilities\u00a0 | (458.4) | 19.5 | 7.6 | (228.1) | (659.4) |
Net | (295.6) | 37.0 | 15.9 | (237.1) | (479.8) |
In 2023, the amounts included under \u201cOther\u201d are due to the consolidation of the new subsidiaries acquired and the deconsolidation of Webhelp.
Finally, the different taxes directly recorded under shareholders equity are shown in the following table:
In EUR\u00a0million | 2023 | 2022 |
Actuarial gains (losses) | (28.5) | 39.0 |
Of which amounts before taxes | (34.0) | 46.5 |
Of which deferred taxes | 5.5 | (7.5) |
Gains and (losses) on financial liabilities measured at fair value attributable to the acquisition of a controlling or non-controlling interest | 5.5 | (10.6) |
Of which amounts before taxes | 5.8 | (8.9) |
Of which deferred taxes | (0.3) | (1.7) |
Foreign currency translation adjustments | 57.1 | 101.2 |
Of which amounts before taxes | 52.9 | 101.6 |
Of which deferred taxes | 4.2 | (0.4) |
Cash flow hedge | 57.5 | (129.2) |
Of which amounts before taxes | 54.8 | (154.7) |
Of which deferred taxes | 2.7 | 25.5 |
Revaluation reserves | (285.9) | (3,618.6) |
Of which amounts before taxes | (285.9) | (3,618.6) |
Of which deferred taxes | - | - |
Note 15Trade receivables
In EUR\u00a0million | 2023 | 2022 |
Trade receivables | 619.1 | 1,132.6 |
Writedowns of doubtful receivables | (18.5) | (23.8) |
Net total | 600.6 | 1,108.7 |
Of which: Holding | 1.5 | 0.0 |
Imerys | 398.5 | 489.9 |
Webhelp | - | 454.1 |
Canyon | 2.9 | 3.3 |
Affidea | 113.7 | 88.3 |
Sanoptis | 71.7 | 53.8 |
GBL Capital and SIM | 12.3 | 19.3 |
Trade receivables are mainly related to Imerys. Imerys has set up a one-off factoring program for the first time in 2023 within the PM Americas, PM\u00a0EMEA & APAC and RAC sectors. Within this framework, Imerys retains an ongoing involvement in the assigned receivables through the risk of\u00a0dilution, as well as through the obligation to return cash flows received from customers to the factor. The risks and rewards of the assigned receivables have been substantially transferred to the factor, and these receivables have been derecognized. The carrying amount of these derecognized receivables is EUR\u00a062\u00a0million at December\u00a031, 2023 (EUR\u00a06\u00a0million at December\u00a031, 2022).
Trade receivables do not bear interest and generally have a 30 to 90-day maturity. At the reporting date, some of the trade receivables detailed below may be due without being impaired, for example when covered by a credit insurance contract or a guarantee.
In EUR\u00a0million | 2023 | 2022 |
Delay of no more than 1 month | 124.7 | 171.8 |
Delay of 1 to 3 months | 39.8 | 53.1 |
Delay of more than 3 months | 38.0 | 57.1 |
Total trade receivables due and not written down | 202.5 | 281.9 |
Trade receivables not due and trade receivables due and written down | 398.1 | 826.8 |
Total trade receivables, net | 600.6 | 1,108.7 |
The following table shows the change in write-downs over several years:
In EUR\u00a0million | 2023 | 2022 |
Writedowns of receivables at 1 January | (23.8) | (40.5) |
Writedowns over the year | (9.5) | (2.1) |
Utilizations | 1.6 | 1.6 |
Reversals of writedowns | 11.2 | 9.2 |
Foreign currency translation adjustments/other | 2.0 | 8.0 |
Writedowns of receivables at 31 December | (18.5) | (23.8) |
Note 16Trading financial assets
In EUR\u00a0million | 2023 | 2022 |
Money market funds | 712.4 | 841.4 |
Other trading assets | 673.1 | 28.6 |
Total | 1,385.6 | 870.0 |
Of which: Holding | 705.5 | 839.8 |
Imerys | 671.9 | 1.9 |
Webhelp | - | 12.0 |
Canyon | 8.1 | 16.3 |
Affidea | - | - |
Sanoptis | - | - |
GBL Capital and SIM | 0.0 | 0.0 |
In EUR\u00a0million | 2023 | 2022 |
Money market funds | 712.4 | 841.4 |
Other trading assets | 673.1 | 28.6 |
Total | 1,385.6 | 870.0 |
Of which: Holding | 705.5 | 839.8 |
Imerys | 671.9 | 1.9 |
Webhelp | - | 12.0 |
Canyon | 8.1 | 16.3 |
Affidea | - | - |
Sanoptis | - | - |
GBL Capital and SIM | 0.0 | 0.0 |
Note 18Other current assets
In EUR\u00a0million | 2023 | 2022 |
Current financial assets | 60.3 | 90.9 |
Derivative financial instruments held for trading | 25.5 | 17.4 |
Derivative financial instruments - Hedging | 13.7 | 35.5 |
Other | 21.1 | 38.0 |
Current non financial assets | 377.1 | 498.7 |
Tax assets other than those related to income taxes | 101.1 | 110.7 |
Other taxes and VAT to be recovered | 124.1 | 201.6 |
Deferred expenses | 57.7 | 85.1 |
Other | 94.2 | 101.2 |
Total | 437.4 | 589.5 |
Of which: Holding | 39.4 | 44.0 |
Imerys | 253.7 | 235.6 |
Webhelp | - | 179.4 |
Canyon | 29.9 | 45.7 |
Affidea | 50.9 | 26.8 |
Sanoptis | 49.2 | 29.2 |
GBL Capital and SIM | 14.4 | 28.8 |
Note 26Derivative financial instruments
26.1 Fair values of short-term and long-term derivative financial instruments
The fair values of the derivative financial instruments held as of December\u00a031, 2023 and 2022 are shown in the following table:
In EUR\u00a0million | 2023 | 2022 |
Assets | 66.4 | 62.5 |
Of which non-current assets | 27.2 | 9.6 |
Of which current assets | 39.2 | 52.9 |
Composed of: | ||
Forwards, futures and currency swaps - Derivative instruments held for trading | 1.1 | 17.3 |
Forwards, futures and currency swaps - Hedging | 12.4 | 38.7 |
Interest rate hedging instruments - Derivative instruments held for trading | 24.4 | - |
Futures and commodities options - Hedging | 1.5 | 6.5 |
Call and put options on shares - Derivative instruments held for trading | 27.0 | - |
Liabilities | (62.2) | (276.1) |
Of which non-current liabilities | (16.0) | (92.8) |
Of which current liabilities | (46.2) | (183.3) |
Composed of: | - | - |
Forwards, futures and currency swaps - Derivative instruments held for trading | (2.5) | (0.3) |
Forwards, futures and currency swaps - Hedging | (2.1) | (15.0) |
Interest rate hedging instruments - Derivative instruments held for trading | (7.4) | - |
Interest rate hedging instruments - Hedging | (17.5) | - |
Futures and commodities options - Hedging | (27.8) | (25.9) |
Forwards on shares - Hedging | - | (76.7) |
Call and put options on shares - Derivative instruments held for trading | (4.9) | (158.2) |
Net position | 4.2 | (213.7) |
Forwards, futures and currency swaps | 8.9 | 40.7 |
Interest rate hedging instruments | (0.5) | - |
Forwards on shares | - | (76.7) |
Futures and commodities options | (26.3) | (19.4) |
Call and put options on shares | 22.1 | (158.2) |
The following table shows the maturity of the cash flow hedge derivatives for the reporting periods ended December\u00a031, 2023 and 2022:
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 10.3 | 10.1 | 0.2 | - |
Interest rate hedging instruments | (17.5) | (11.5) | (6.0) | - |
Futures and commodities options | (26.3) | (26.0) | (0.3) | - |
Total as of December 31, 2023 | (33.5) | (27.4) | (6.1) | - |
Forwards, futures and currency swaps | 23.7 | 18.3 | 5.4 | - |
Futures and commodities options | (19.4) | (19.4) | - | - |
Forwards on shares | (76.7) | (76.7) | - | - |
Total as of December 31, 2022 | (72.4) | (77.8) | 5.4 | - |
26.2Change in fair value of derivative instruments
The following table shows the changes in the fair value of hedging derivative instruments between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative instruments - hedging | ||
As of January 1 \u2013 net derivatives position\u00a0 | (72.4) | 73.6 |
Increase (decrease) recognized in profit or loss | (20.9) | (1.7) |
Increase (decrease) recognized in shareholders' equity | 54.8 | (154.7) |
Changes in group structure/Business combinations/Other | 5.0 | 10.4 |
As of December 31 \u2013 net derivatives position | (33.5) | (72.4) |
The following table shows the changes in the fair value of derivative instruments held for trading between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative financial instruments held for trading | ||
As of January 1 \u2013 net derivatives position\u00a0 | (141.2) | (206.2) |
Increase (decrease) recognized in profit or loss | 105.0 | 98.7 |
Increase (decrease) recognized in shareholders' equity | - | - |
Changes in group structure/Business combinations/Other | 73.9 | (33.6) |
As of December 31 \u2013 net derivatives position | 37.7 | (141.2) |
26.3\tNotional underlying amounts of derivative financial instruments
In EUR\u00a0million | 2023 | 2022 |
Assets\u00a0 | 1,701.9 | 2,140.4 |
Composed of: | ||
Forwards, futures and currency swaps | 616.1 | 2,063.7 |
Interest rate hedging instruments | 978.4 | - |
Futures and commodities options | 80.4 | 76.7 |
Call and put options on shares | 27.0 | - |
Liabilities | 3,548.2 | 4,043.6 |
Composed of: | ||
Forwards, futures and currency swaps | 1,292.9 | 1,715.9 |
Interest rate hedging instruments | 1,070.6 | - |
Forwards on shares | - | 537.6 |
Futures and commodities options | 24.8 | 21.7 |
Call and put options on shares | 1,159.9 | 1,768.4 |
26.4\tMaturity of notional underlying amounts of derivative financial instruments
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 1,909.0 | 1,898.4 | 10.6 | - |
Interest rate hedging instruments | 2,048.9 | 1,428.9 | 620.0 | - |
Futures and commodities options | 105.2 | 101.2 | 4.0 | - |
Call and put options on shares | 1,186.9 | 159.9 | 1,000.0 | 27.0 |
Total as of December 31, 2023 | 5,250.0 | 3,588.4 | 1,634.6 | 27.0 |
Forwards, futures and currency swaps | 3,779.6 | 3,067.9 | 107.1 | 604.6 |
Forwards on shares | 537.6 | 537.6 | - | - |
Futures and commodities options | 98.4 | 98.4 | - | - |
Call and put options on shares | 1,768.4 | 689.6 | 1,078.8 | - |
Total as of December 31, 2022 | 6,184.0 | 4,393.5 | 1,185.9 | 604.6 |
Note 29Financial instruments
Fair value
The fair value of a financial instrument is the amount that would be received on selling the asset or paid on transferring a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is a presumption that an entity is a going concern without any intention or need to liquidate, to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Fair value is not, therefore, the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distressed sale.
To reflect the importance of inputs used when measuring at fair value, the group classifies these valuations according to a hierarchy composed of\u00a0the\u00a0following levels:
level 1: listed prices (non-adjusted) on active markets for identical assets or liabilities;
level 2: inputs, other than the listed prices included in level 1, that are observable for the asset or liability concerned, either directly (i.e., prices) or\u00a0indirectly (i.e., derived from prices); and
level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).
The group\u2019s financial instruments very largely belong to classification levels 1 and 2. The financial assets measured at level 3 fair value are not significant compared to the other asset classes (15.07% as of December\u00a031, 2023 and 12.93% as of December\u00a031, 2022).
Measurement techniques
The objective of using a valuation method is to establish what the transaction price would have been on the measurement date in an arm\u2019s-length exchange and motivated by normal business considerations.
Techniques used to measure the fair value of level 2 financial instruments:
Exchangeable or convertible bonds
The exchangeable or convertible bonds issued by the group are considered to be hybrid instruments, i.e., instruments including a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds, taking into account the risk associated with GBL (credit spread). At each reporting date, the value of the bond component is recalculated, taking into account the change in the risk-free rate and GBL\u2019s credit spread, and the difference in relation to the price of the exchangeable or convertible bond observed on the Frankfurt Stock Exchange\u2019s Euro MTF market is taken as the new value of the derivative component. The change in this value in relation to the previous reporting date is recognized in profit or loss.
Other level 2 financial instruments
The fair value of derivative instruments not associated with exchangeable or convertible bonds is taken from a model that uses observable data, in other words the quotes on the reporting date provided by third-parties operating on the financial markets. These valuations are adjusted for the counterparties\u2019 credit risk and the credit risk specific to Imerys or GBL. Accordingly, if the market value of the derivative is positive (derivative asset), its fair value incorporates the likelihood of the counterparty defaulting (Credit Value Adjustment or CVA). If the derivative\u2019s market value is negative (derivative liability), its fair value factors in the likelihood of Imerys or GBL defaulting (Debit Value Adjustment or DVA). These adjustments are measured based on the spreads of the bonds in circulation on the secondary market, as issued by Imerys, GBL and their counterparts.
Techniques used to measure the fair value of level 3 financial instruments:
Equity investments
The investments in unlisted companies are valued internally at their fair value on a quarterly basis, based on a specific valuation method or a combination of valuation methods, the specific valuations the method of combination of methods being consistent from an closing to another. Methodologies are aligned across the portfolio, though with different weights for respective methods depending on the company. Valuation are approved by the Valuation Committee of GBL and reviewed by an external advisor. Changes in the fair value of these investments are recognized in the revaluation reserves.
Investments in funds or co-investments owned by GBL Capital are revalued at their fair value, as notably determined by the managers of the funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss).
In accordance with the recommendations of the International Private Equity and Venture Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d), recent\u00a0investment, funds or co-investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of fair\u00a0value.
Analysis of financial instruments by category \u2013 balance sheets
The category, according to IFRS 9, uses the following abbreviations:
FATOCI: Financial Assets measured at fair value through Other Comprehensive Income
FATPL: Financial Assets measured at fair value through Profit or Loss
FLTPL: Financial Liabilities measured at fair value through Profit or Loss
FAAC: Financial Assets measured at Amortized Cost
FLAC: Financial Liabilities measured at Amortized Cost
HeAc: Hedge Accounting
The tables below show a comparison of the book value and the fair value of the financial instruments as of December\u00a031, 2023 and as of December\u00a031,\u00a02022, as well as the fair value hierarchy. There were no significant transfers between the different levels between 2023 and 2022.
As of December 31, 2023
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,013.1 | 10,013.1 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 287.2 | 287.2 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 112.4 | 112.4 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 2,192.0 | 2,192.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 0.2 | 0.2 | Level 2 |
Derivative instruments - Other | FATPL | 27.0 | 27.0 | Level 2 |
Other financial assets | FAAC | 573.7 | 573.7 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 600.6 | 600.6 | Level 2 |
Trading financial assets | FATPL | 1,385.6 | 1,385.6 | Level 1 |
Cash and cash equivalents | FAAC | 1,198.0 | 1,198.0 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 13.7 | 13.7 | Level 2 |
Derivative instruments - Other | FATPL | 25.5 | 25.5 | Level 2 |
Other financial assets | FAAC | 21.1 | 21.1 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 7,177.2 | 6,979.8 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 6.3 | 6.3 | Level 2 |
Derivative instruments - Other | FLTPL | 9.7 | 9.7 | Level 2 |
Other non current liabilities | FLAC | 407.1 | 407.1 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,173.7 | 1,173.7 | Level 2 |
Trade payables | FLAC | 571.5 | 571.5 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 41.1 | 41.1 | Level 2 |
Derivative instruments - Other | FLTPL | 5.1 | 5.1 | Level 2 |
Other current liabilities | FLAC | 76.3 | 76.3 | Level 2 |
As of December 31, 2022
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,837.2 | 10,837.2 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 273.0 | 273.0 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 127.3 | 127.3 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 1,927.0 | 1,927.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 9.6 | 9.6 | Level 2 |
Other financial assets | FAAC | 66.1 | 66.1 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 1,108.7 | 1,108.7 | Level 2 |
Trading financial assets | FATPL | 870.0 | 870.0 | Level 1 |
Cash and cash equivalents | FAAC | 1,768.3 | 1,768.3 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 35.5 | 35.5 | Level 2 |
Derivative instruments - Other | FATPL | 17.4 | 17.4 | Level 2 |
Other financial assets | FAAC | 38.0 | 38.0 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 8,714.7 | 8,379.3 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 4.1 | 4.1 | Level 2 |
Derivative instruments - Other | FLTPL | 88.7 | 88.7 | Level 2 |
Other non current liabilities | FLAC | 1,545.2 | 1,545.2 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,654.6 | 1,675.9 | Level 2 |
Trade payables | FLAC | 857.4 | 857.4 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 113.5 | 113.5 | Level 2 |
Derivative instruments - Other | FLTPL | 69.8 | 69.8 | Level 2 |
Other current liabilities | FLAC | 73.7 | 73.7 | Level 2 |
Analysis of financial instruments by category \u2013 income statements
The tables hereafter present the income and expenses before income taxes recognized in the income statement by categories of financial instruments. These tables analyze the income and expense lines containing financial instruments according to categories presented in columns. These distinguish, on the one hand, the categories applied by default to any item excluding hedge accounting and, on the other hand, the categories applied to any item falling within the scope of hedge accounting.
The IFRS 9 categories of amortized cost and fair value through profit or loss apply to the majority of non-hedge accounting items. Hedge accounting items are classified according to their fair value or cash flow hedging qualifications, distinguishing the values of hedged items and hedging instruments in columns and the types of risks hedged in rows. In addition, in order to ensure reconciliation between IFRS 9 classes and financial statements, this table includes a column containing the following non-IFRS 9 items: share-based payments (IFRS 2), mining assets (IFRS 6), inventories (IAS 2), income tax assets and liabilities (IAS 12), property, plant and equipment (IAS 16), finance lease liabilities (IFRS 16), defined benefit and short-term employee benefits assets and liabilities (IAS 19), grants (IAS\u00a020), provisions (IAS 37), intangible assets and prepaid expenses (IAS 38), stripping assets (IFRIC 20) and duties and taxes (IFRIC 21). The logic of classification of financial instruments in assets and liabilities is applied in transversally to their changes in income statement. For example, revenue is included in the amortized cost category, as its counterparties in trade receivables or cash and cash equivalents fall under this category on the asset\u00a0side.
2023
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 286.1 | - | - | - | - | - | 286.1 |
Other operating income (expenses) from investing activities | (62.5) | - | - | - | - | - | - | - | (62.5) |
Financial income (expenses) from investing activities | 189.7 | 91.3 | - | - | - | - | - | - | 280.9 |
Of which: Financial income | 303.7 | 93.9 | - | - | - | - | - | - | 397.6 |
Financial expenses | (114.0) | (2.6) | - | - | - | - | - | - | (116.7) |
Profit (loss) from investing activities - continuing operations | 127.1 | 91.3 | 286.1 | - | - | - | - | - | 504.5 |
Turnover | 6,137.1 | - | - | - | - | - | - | 0.2 | 6,137.3 |
Raw materials and consumables | (1,950.6) | - | - | (107.5) | - | - | - | (52.6) | (2,110.7) |
Other operating income (expenses) from operating activities | (1,471.4) | - | - | 10.2 | - | - | - | - | (1,461.2) |
Financial income (expenses) from operating activities | (211.7) | 0.4 | - | (17.1) | - | - | - | - | (228.4) |
Of which: Financial income | 83.1 | 0.4 | - | - | - | - | - | - | 83.5 |
Financial expenses | (294.8) | - | - | (17.1) | - | - | - | - | (311.9) |
Profit (loss) from consolidated operating activities - continuing operations | 2,503.3 | 0.4 | - | (114.4) | - | - | - | (52.4) | 2,336.9 |
2022
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 322.3 | - | - | - | - | - | 322.3 |
Other operating income (expenses) from investing activities | (74.3) | - | - | - | - | - | - | - | (74.3) |
Financial income (expenses) from investing activities | (490.0) | 94.6 | - | - | - | - | - | - | (395.4) |
Of which: Financial income | 168.7 | 119.0 | - | - | - | - | - | - | 287.7 |
Financial expenses | (658.7) | (24.4) | - | - | - | - | - | - | (683.1) |
Profit (loss) from investing activities - continuing operations | (564.3) | 94.6 | 322.3 | - | - | - | - | - | (147.4) |
Turnover | 5,623.4 | - | - | - | - | - | - | (0.1) | 5,623.3 |
Raw materials and consumables | (2,264.5) | - | - | 199.9 | - | - | - | 100.4 | (1,964.2) |
Other operating income (expenses) from operating activities | (1,548.7) | - | - | 18.1 | - | - | - | - | (1,530.6) |
Financial income (expenses) from operating activities | (362.9) | 5.8 | - | (11.0) | - | - | - | - | (368.1) |
Of which: Financial income | 36.9 | 5.8 | - | - | - | - | - | - | 42.7 |
Financial expenses | (399.9) | - | - | (11.0) | - | - | - | - | (410.9) |
Profit (loss) from consolidated operating activities - continuing operations | 1,447.3 | 5.8 | - | 207.0 | - | - | - | 100.3 | 1,760.4 |
Note 16Trading financial assets
In EUR\u00a0million | 2023 | 2022 |
Money market funds | 712.4 | 841.4 |
Other trading assets | 673.1 | 28.6 |
Total | 1,385.6 | 870.0 |
Of which: Holding | 705.5 | 839.8 |
Imerys | 671.9 | 1.9 |
Webhelp | - | 12.0 |
Canyon | 8.1 | 16.3 |
Affidea | - | - |
Sanoptis | - | - |
GBL Capital and SIM | 0.0 | 0.0 |
In EUR\u00a0million | 2023 | 2022 |
Money market funds | 712.4 | 841.4 |
Other trading assets | 673.1 | 28.6 |
Total | 1,385.6 | 870.0 |
Of which: Holding | 705.5 | 839.8 |
Imerys | 671.9 | 1.9 |
Webhelp | - | 12.0 |
Canyon | 8.1 | 16.3 |
Affidea | - | - |
Sanoptis | - | - |
GBL Capital and SIM | 0.0 | 0.0 |
Note 18Other current assets
In EUR\u00a0million | 2023 | 2022 |
Current financial assets | 60.3 | 90.9 |
Derivative financial instruments held for trading | 25.5 | 17.4 |
Derivative financial instruments - Hedging | 13.7 | 35.5 |
Other | 21.1 | 38.0 |
Current non financial assets | 377.1 | 498.7 |
Tax assets other than those related to income taxes | 101.1 | 110.7 |
Other taxes and VAT to be recovered | 124.1 | 201.6 |
Deferred expenses | 57.7 | 85.1 |
Other | 94.2 | 101.2 |
Total | 437.4 | 589.5 |
Of which: Holding | 39.4 | 44.0 |
Imerys | 253.7 | 235.6 |
Webhelp | - | 179.4 |
Canyon | 29.9 | 45.7 |
Affidea | 50.9 | 26.8 |
Sanoptis | 49.2 | 29.2 |
GBL Capital and SIM | 14.4 | 28.8 |
Note 26Derivative financial instruments
26.1 Fair values of short-term and long-term derivative financial instruments
The fair values of the derivative financial instruments held as of December\u00a031, 2023 and 2022 are shown in the following table:
In EUR\u00a0million | 2023 | 2022 |
Assets | 66.4 | 62.5 |
Of which non-current assets | 27.2 | 9.6 |
Of which current assets | 39.2 | 52.9 |
Composed of: | ||
Forwards, futures and currency swaps - Derivative instruments held for trading | 1.1 | 17.3 |
Forwards, futures and currency swaps - Hedging | 12.4 | 38.7 |
Interest rate hedging instruments - Derivative instruments held for trading | 24.4 | - |
Futures and commodities options - Hedging | 1.5 | 6.5 |
Call and put options on shares - Derivative instruments held for trading | 27.0 | - |
Liabilities | (62.2) | (276.1) |
Of which non-current liabilities | (16.0) | (92.8) |
Of which current liabilities | (46.2) | (183.3) |
Composed of: | - | - |
Forwards, futures and currency swaps - Derivative instruments held for trading | (2.5) | (0.3) |
Forwards, futures and currency swaps - Hedging | (2.1) | (15.0) |
Interest rate hedging instruments - Derivative instruments held for trading | (7.4) | - |
Interest rate hedging instruments - Hedging | (17.5) | - |
Futures and commodities options - Hedging | (27.8) | (25.9) |
Forwards on shares - Hedging | - | (76.7) |
Call and put options on shares - Derivative instruments held for trading | (4.9) | (158.2) |
Net position | 4.2 | (213.7) |
Forwards, futures and currency swaps | 8.9 | 40.7 |
Interest rate hedging instruments | (0.5) | - |
Forwards on shares | - | (76.7) |
Futures and commodities options | (26.3) | (19.4) |
Call and put options on shares | 22.1 | (158.2) |
The following table shows the maturity of the cash flow hedge derivatives for the reporting periods ended December\u00a031, 2023 and 2022:
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 10.3 | 10.1 | 0.2 | - |
Interest rate hedging instruments | (17.5) | (11.5) | (6.0) | - |
Futures and commodities options | (26.3) | (26.0) | (0.3) | - |
Total as of December 31, 2023 | (33.5) | (27.4) | (6.1) | - |
Forwards, futures and currency swaps | 23.7 | 18.3 | 5.4 | - |
Futures and commodities options | (19.4) | (19.4) | - | - |
Forwards on shares | (76.7) | (76.7) | - | - |
Total as of December 31, 2022 | (72.4) | (77.8) | 5.4 | - |
26.2Change in fair value of derivative instruments
The following table shows the changes in the fair value of hedging derivative instruments between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative instruments - hedging | ||
As of January 1 \u2013 net derivatives position\u00a0 | (72.4) | 73.6 |
Increase (decrease) recognized in profit or loss | (20.9) | (1.7) |
Increase (decrease) recognized in shareholders' equity | 54.8 | (154.7) |
Changes in group structure/Business combinations/Other | 5.0 | 10.4 |
As of December 31 \u2013 net derivatives position | (33.5) | (72.4) |
The following table shows the changes in the fair value of derivative instruments held for trading between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative financial instruments held for trading | ||
As of January 1 \u2013 net derivatives position\u00a0 | (141.2) | (206.2) |
Increase (decrease) recognized in profit or loss | 105.0 | 98.7 |
Increase (decrease) recognized in shareholders' equity | - | - |
Changes in group structure/Business combinations/Other | 73.9 | (33.6) |
As of December 31 \u2013 net derivatives position | 37.7 | (141.2) |
26.3\tNotional underlying amounts of derivative financial instruments
In EUR\u00a0million | 2023 | 2022 |
Assets\u00a0 | 1,701.9 | 2,140.4 |
Composed of: | ||
Forwards, futures and currency swaps | 616.1 | 2,063.7 |
Interest rate hedging instruments | 978.4 | - |
Futures and commodities options | 80.4 | 76.7 |
Call and put options on shares | 27.0 | - |
Liabilities | 3,548.2 | 4,043.6 |
Composed of: | ||
Forwards, futures and currency swaps | 1,292.9 | 1,715.9 |
Interest rate hedging instruments | 1,070.6 | - |
Forwards on shares | - | 537.6 |
Futures and commodities options | 24.8 | 21.7 |
Call and put options on shares | 1,159.9 | 1,768.4 |
26.4\tMaturity of notional underlying amounts of derivative financial instruments
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 1,909.0 | 1,898.4 | 10.6 | - |
Interest rate hedging instruments | 2,048.9 | 1,428.9 | 620.0 | - |
Futures and commodities options | 105.2 | 101.2 | 4.0 | - |
Call and put options on shares | 1,186.9 | 159.9 | 1,000.0 | 27.0 |
Total as of December 31, 2023 | 5,250.0 | 3,588.4 | 1,634.6 | 27.0 |
Forwards, futures and currency swaps | 3,779.6 | 3,067.9 | 107.1 | 604.6 |
Forwards on shares | 537.6 | 537.6 | - | - |
Futures and commodities options | 98.4 | 98.4 | - | - |
Call and put options on shares | 1,768.4 | 689.6 | 1,078.8 | - |
Total as of December 31, 2022 | 6,184.0 | 4,393.5 | 1,185.9 | 604.6 |
Note 29Financial instruments
Fair value
The fair value of a financial instrument is the amount that would be received on selling the asset or paid on transferring a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is a presumption that an entity is a going concern without any intention or need to liquidate, to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Fair value is not, therefore, the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distressed sale.
To reflect the importance of inputs used when measuring at fair value, the group classifies these valuations according to a hierarchy composed of\u00a0the\u00a0following levels:
level 1: listed prices (non-adjusted) on active markets for identical assets or liabilities;
level 2: inputs, other than the listed prices included in level 1, that are observable for the asset or liability concerned, either directly (i.e., prices) or\u00a0indirectly (i.e., derived from prices); and
level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).
The group\u2019s financial instruments very largely belong to classification levels 1 and 2. The financial assets measured at level 3 fair value are not significant compared to the other asset classes (15.07% as of December\u00a031, 2023 and 12.93% as of December\u00a031, 2022).
Measurement techniques
The objective of using a valuation method is to establish what the transaction price would have been on the measurement date in an arm\u2019s-length exchange and motivated by normal business considerations.
Techniques used to measure the fair value of level 2 financial instruments:
Exchangeable or convertible bonds
The exchangeable or convertible bonds issued by the group are considered to be hybrid instruments, i.e., instruments including a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds, taking into account the risk associated with GBL (credit spread). At each reporting date, the value of the bond component is recalculated, taking into account the change in the risk-free rate and GBL\u2019s credit spread, and the difference in relation to the price of the exchangeable or convertible bond observed on the Frankfurt Stock Exchange\u2019s Euro MTF market is taken as the new value of the derivative component. The change in this value in relation to the previous reporting date is recognized in profit or loss.
Other level 2 financial instruments
The fair value of derivative instruments not associated with exchangeable or convertible bonds is taken from a model that uses observable data, in other words the quotes on the reporting date provided by third-parties operating on the financial markets. These valuations are adjusted for the counterparties\u2019 credit risk and the credit risk specific to Imerys or GBL. Accordingly, if the market value of the derivative is positive (derivative asset), its fair value incorporates the likelihood of the counterparty defaulting (Credit Value Adjustment or CVA). If the derivative\u2019s market value is negative (derivative liability), its fair value factors in the likelihood of Imerys or GBL defaulting (Debit Value Adjustment or DVA). These adjustments are measured based on the spreads of the bonds in circulation on the secondary market, as issued by Imerys, GBL and their counterparts.
Techniques used to measure the fair value of level 3 financial instruments:
Equity investments
The investments in unlisted companies are valued internally at their fair value on a quarterly basis, based on a specific valuation method or a combination of valuation methods, the specific valuations the method of combination of methods being consistent from an closing to another. Methodologies are aligned across the portfolio, though with different weights for respective methods depending on the company. Valuation are approved by the Valuation Committee of GBL and reviewed by an external advisor. Changes in the fair value of these investments are recognized in the revaluation reserves.
Investments in funds or co-investments owned by GBL Capital are revalued at their fair value, as notably determined by the managers of the funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss).
In accordance with the recommendations of the International Private Equity and Venture Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d), recent\u00a0investment, funds or co-investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of fair\u00a0value.
Analysis of financial instruments by category \u2013 balance sheets
The category, according to IFRS 9, uses the following abbreviations:
FATOCI: Financial Assets measured at fair value through Other Comprehensive Income
FATPL: Financial Assets measured at fair value through Profit or Loss
FLTPL: Financial Liabilities measured at fair value through Profit or Loss
FAAC: Financial Assets measured at Amortized Cost
FLAC: Financial Liabilities measured at Amortized Cost
HeAc: Hedge Accounting
The tables below show a comparison of the book value and the fair value of the financial instruments as of December\u00a031, 2023 and as of December\u00a031,\u00a02022, as well as the fair value hierarchy. There were no significant transfers between the different levels between 2023 and 2022.
As of December 31, 2023
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,013.1 | 10,013.1 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 287.2 | 287.2 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 112.4 | 112.4 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 2,192.0 | 2,192.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 0.2 | 0.2 | Level 2 |
Derivative instruments - Other | FATPL | 27.0 | 27.0 | Level 2 |
Other financial assets | FAAC | 573.7 | 573.7 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 600.6 | 600.6 | Level 2 |
Trading financial assets | FATPL | 1,385.6 | 1,385.6 | Level 1 |
Cash and cash equivalents | FAAC | 1,198.0 | 1,198.0 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 13.7 | 13.7 | Level 2 |
Derivative instruments - Other | FATPL | 25.5 | 25.5 | Level 2 |
Other financial assets | FAAC | 21.1 | 21.1 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 7,177.2 | 6,979.8 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 6.3 | 6.3 | Level 2 |
Derivative instruments - Other | FLTPL | 9.7 | 9.7 | Level 2 |
Other non current liabilities | FLAC | 407.1 | 407.1 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,173.7 | 1,173.7 | Level 2 |
Trade payables | FLAC | 571.5 | 571.5 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 41.1 | 41.1 | Level 2 |
Derivative instruments - Other | FLTPL | 5.1 | 5.1 | Level 2 |
Other current liabilities | FLAC | 76.3 | 76.3 | Level 2 |
As of December 31, 2022
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,837.2 | 10,837.2 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 273.0 | 273.0 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 127.3 | 127.3 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 1,927.0 | 1,927.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 9.6 | 9.6 | Level 2 |
Other financial assets | FAAC | 66.1 | 66.1 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 1,108.7 | 1,108.7 | Level 2 |
Trading financial assets | FATPL | 870.0 | 870.0 | Level 1 |
Cash and cash equivalents | FAAC | 1,768.3 | 1,768.3 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 35.5 | 35.5 | Level 2 |
Derivative instruments - Other | FATPL | 17.4 | 17.4 | Level 2 |
Other financial assets | FAAC | 38.0 | 38.0 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 8,714.7 | 8,379.3 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 4.1 | 4.1 | Level 2 |
Derivative instruments - Other | FLTPL | 88.7 | 88.7 | Level 2 |
Other non current liabilities | FLAC | 1,545.2 | 1,545.2 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,654.6 | 1,675.9 | Level 2 |
Trade payables | FLAC | 857.4 | 857.4 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 113.5 | 113.5 | Level 2 |
Derivative instruments - Other | FLTPL | 69.8 | 69.8 | Level 2 |
Other current liabilities | FLAC | 73.7 | 73.7 | Level 2 |
Analysis of financial instruments by category \u2013 income statements
The tables hereafter present the income and expenses before income taxes recognized in the income statement by categories of financial instruments. These tables analyze the income and expense lines containing financial instruments according to categories presented in columns. These distinguish, on the one hand, the categories applied by default to any item excluding hedge accounting and, on the other hand, the categories applied to any item falling within the scope of hedge accounting.
The IFRS 9 categories of amortized cost and fair value through profit or loss apply to the majority of non-hedge accounting items. Hedge accounting items are classified according to their fair value or cash flow hedging qualifications, distinguishing the values of hedged items and hedging instruments in columns and the types of risks hedged in rows. In addition, in order to ensure reconciliation between IFRS 9 classes and financial statements, this table includes a column containing the following non-IFRS 9 items: share-based payments (IFRS 2), mining assets (IFRS 6), inventories (IAS 2), income tax assets and liabilities (IAS 12), property, plant and equipment (IAS 16), finance lease liabilities (IFRS 16), defined benefit and short-term employee benefits assets and liabilities (IAS 19), grants (IAS\u00a020), provisions (IAS 37), intangible assets and prepaid expenses (IAS 38), stripping assets (IFRIC 20) and duties and taxes (IFRIC 21). The logic of classification of financial instruments in assets and liabilities is applied in transversally to their changes in income statement. For example, revenue is included in the amortized cost category, as its counterparties in trade receivables or cash and cash equivalents fall under this category on the asset\u00a0side.
2023
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 286.1 | - | - | - | - | - | 286.1 |
Other operating income (expenses) from investing activities | (62.5) | - | - | - | - | - | - | - | (62.5) |
Financial income (expenses) from investing activities | 189.7 | 91.3 | - | - | - | - | - | - | 280.9 |
Of which: Financial income | 303.7 | 93.9 | - | - | - | - | - | - | 397.6 |
Financial expenses | (114.0) | (2.6) | - | - | - | - | - | - | (116.7) |
Profit (loss) from investing activities - continuing operations | 127.1 | 91.3 | 286.1 | - | - | - | - | - | 504.5 |
Turnover | 6,137.1 | - | - | - | - | - | - | 0.2 | 6,137.3 |
Raw materials and consumables | (1,950.6) | - | - | (107.5) | - | - | - | (52.6) | (2,110.7) |
Other operating income (expenses) from operating activities | (1,471.4) | - | - | 10.2 | - | - | - | - | (1,461.2) |
Financial income (expenses) from operating activities | (211.7) | 0.4 | - | (17.1) | - | - | - | - | (228.4) |
Of which: Financial income | 83.1 | 0.4 | - | - | - | - | - | - | 83.5 |
Financial expenses | (294.8) | - | - | (17.1) | - | - | - | - | (311.9) |
Profit (loss) from consolidated operating activities - continuing operations | 2,503.3 | 0.4 | - | (114.4) | - | - | - | (52.4) | 2,336.9 |
2022
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 322.3 | - | - | - | - | - | 322.3 |
Other operating income (expenses) from investing activities | (74.3) | - | - | - | - | - | - | - | (74.3) |
Financial income (expenses) from investing activities | (490.0) | 94.6 | - | - | - | - | - | - | (395.4) |
Of which: Financial income | 168.7 | 119.0 | - | - | - | - | - | - | 287.7 |
Financial expenses | (658.7) | (24.4) | - | - | - | - | - | - | (683.1) |
Profit (loss) from investing activities - continuing operations | (564.3) | 94.6 | 322.3 | - | - | - | - | - | (147.4) |
Turnover | 5,623.4 | - | - | - | - | - | - | (0.1) | 5,623.3 |
Raw materials and consumables | (2,264.5) | - | - | 199.9 | - | - | - | 100.4 | (1,964.2) |
Other operating income (expenses) from operating activities | (1,548.7) | - | - | 18.1 | - | - | - | - | (1,530.6) |
Financial income (expenses) from operating activities | (362.9) | 5.8 | - | (11.0) | - | - | - | - | (368.1) |
Of which: Financial income | 36.9 | 5.8 | - | - | - | - | - | - | 42.7 |
Financial expenses | (399.9) | - | - | (11.0) | - | - | - | - | (410.9) |
Profit (loss) from consolidated operating activities - continuing operations | 1,447.3 | 5.8 | - | 207.0 | - | - | - | 100.3 | 1,760.4 |
17.2Financial liabilities
In EUR\u00a0million | 2023 | 2022 |
Non-current financial liabilities | 7,177.2 | 8,714.7 |
Bonds (GBL)\u00a0 | 1,984.5 | 1,985.2 |
Convertible bonds (GBL) | 499.8 | 499.7 |
Exchangeable bonds (GBL) | 486.3 | 479.6 |
Bonds (Imerys) | 1,710.7 | 1,705.3 |
Bank borrowings (Webhelp) | - | 1,738.1 |
Bank borrowings (Canyon) | 225.3 | 225.7 |
Bank borrowings (Affidea) | 741.9 | 572.3 |
Bank borrowings (Sanoptis) | 899.0 | 602.0 |
Bank borrowings (GBL Capital) | - | 89.7 |
Lease liabilities | 574.6 | 738.8 |
Other non-current financial liabilities\u00a0 | 55.0 | 78.2 |
Current financial liabilities | 1,173.7 | 1,654.6 |
Bonds (GBL)\u00a0 | 499.8 | - |
Exchangeable bonds (GBL) | - | 447.4 |
Bank borrowings (GBL) | - | 535.3 |
Bank borrowings (Imerys) | 23.5 | 437.6 |
Bonds (Imerys) | 500.0 | - |
Lease liabilities | 108.8 | 168.9 |
Other current financial liabilities | 41.7 | 65.4 |
Bonds (issued by GBL)
On May 9, 2023, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 10-year maturity and a coupon of 4.000%. The carrying amount of this debt is EUR\u00a0496\u00a0million as of December\u00a031, 2023.
On August 30, 2022, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 7-year maturity and a coupon of 3.125%. The carrying amount of this debt is EUR\u00a0495\u00a0million as of December\u00a031, 2023.
On January\u00a021, 2021, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 10-year maturity and a coupon of 0.125%. The carrying amount of this debt is EUR\u00a0495\u00a0million as of December\u00a031, 2023.
On June 19, 2018, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 7-year maturity and a coupon of 1.875%. The carrying amount of this debt is\u00a0EUR\u00a0499\u00a0million as of December\u00a031, 2023.
During the first semester of 2017, GBL issued an institutional bond of EUR\u00a0500\u00a0million, with a coupon of 1.375% and maturing on May 23, 2024. The\u00a0carrying amount of this debt is EUR\u00a0500\u00a0million as of December\u00a031, 2023.
These issuances are intended to cover the group\u2019s general corporate purposes and lengthen the weighted average maturity of the gross debt.
Bonds convertible into GBL shares (GBL)
On March 23, 2021, GBL announced the placement by its fully-owned subsidiary Sagerpar SA (the \u201cIssuer\u201d) of EUR\u00a0500\u00a0million of bonds convertible into existing ordinary shares of GBL (the \u201cShares\u201d). The bonds are fully guaranteed by GBL (the \u201cGuarantor\u201d). This issue initially relates to approximately 4.3\u00a0million treasury shares.
The bonds do not bear interests and had at placement a maturity of 5 years (April 1, 2026), subject to early redemption. The bonds have been issued at an issue price of 101.25% of their principal amount and, unless previously redeemed, converted or purchased and cancelled, the bonds will be redeemed in cash at their principal amount at maturity (subject to the Issuer\u2019s share redemption option), which corresponds to an annual yield to maturity of - 0.25%. The initial conversion price of the bonds has been set at EUR\u00a0117.4928. The effective interest rate (including transaction costs allocated to the debt) stands at 0.02%.
The Issuer will have the option to redeem all, but not some only, of the bonds for the time being outstanding at their principal amount, at any time on or after April 16, 2024 provided that the volume-weighted average price of one Share on Euronext Brussels shall have exceeded 130% of the conversion price on each of not less than 20 trading days in any period of 30 consecutive trading days. The Issuer will have a share redemption option to deliver Shares and, as the case may be, an additional amount in cash upon redemption of the Bonds on the maturity date.
Bondholders may request the conversion of their bonds at any time since April 1, 2021 until (and including) the 45th Brussels business day (included) prior to the maturity date, subject to the Issuer\u2019s option to satisfy the conversion rights in cash, shares or a combination thereof. If the Issuer elects to satisfy conversion rights in Shares, it intends to deliver existing Shares which the Issuer holds on behalf of the Guarantor as treasury shares.
The bonds are admitted to trading on the open market (Freiverkher) of the Frankfurt Stock Exchange. The carrying amount of these bonds (excluding the option) is EUR\u00a0500\u00a0million as of December\u00a031, 2023. The option is assessed at fair value on the reporting date (EUR\u00a00\u00a0million as of December\u00a031,\u00a02023, shown under \u201cOther current financial liabilities\u201d).
Bonds exchangeable into Pernod Ricard shares (GBL)
On November 29, 2022, GBL (the \u201cIssuer\u201d) issued bonds exchangeable into existing shares of Pernod Ricard SA (\u201cPernod Ricard\u201d) for an amount of EUR\u00a0500\u00a0million. The bonds initially related to 2.0\u00a0million Pernod Ricard shares representing approximately 1% of its share capital. The bonds have, at their issuance, a maturity of 3 years (November 29, 2025), except in case of early redemption, exchange or purchase and cancellation. The bonds carry a coupon of 2.125% per annum. The bonds were issued at an issue price of 100% of their principal amount and, unless previously redeemed, exchanged, or purchased and cancelled, will be redeemed at their principal amount at maturity on November 29, 2025.
The Issuer will have the option to redeem all, but not only some, of the bonds, at their principal amount plus accrued and unpaid interest until the relevant date fixed for redemption (i) at any time on or after the date falling 2 years and 21 days after the Issue Date, provided that the value of the exchange property (being initially only Pernod Ricard shares) per bond attributable to EUR\u00a0100,000 in principal amount of bonds shall have exceeded EUR\u00a0130,000 on each of not less than 20 trading days in any period of 30 consecutive trading days; (ii) at any time, if 20% or less of the principal amount of the bonds originally issued remain outstanding; or (iii) in the event of an offer or scheme relating to the predominant equity share capital comprised in the exchange property, where the consideration as a result of such offer or scheme consists wholly of cash, all as described in the terms and conditions of the bonds.
Bondholders may request the exchange of their bonds for exchange property at any time since January\u00a09, 2023 until 40 Brussels business days before the maturity date, subject to the option of GBL to satisfy exchange rights in cash, exchange property or a combination thereof.
The bonds are admitted to trading on the open market (Freiverkher) of the Frankfurt Stock Exchange. The carrying amount of these bonds (excluding the option) is EUR\u00a0486\u00a0million as of December\u00a031, 2023. The option is assessed at fair value on the reporting date (EUR\u00a02\u00a0million as of December\u00a031,\u00a02023, shown under \u201cOther current financial liabilities\u201d).
Bonds exchangeable into GEA shares (GBL)
The bonds exchangeable into GEA shares matured on December\u00a029, 2023. They were redeemed in full in cash.
Bank borrowings (GBL)
During the second half of 2022, GBL entered into forward sales contracts with prepayment for 13.2\u00a0million Holcim shares, maturing in May 2023, and received EUR\u00a0538\u00a0million in cash. As of December\u00a031, 2022, the carrying amount of this debt was of EUR\u00a0535\u00a0million and the value of the derivative attached to these transactions, recorded under \u201cOther current liabilities\u201d, amounted to EUR\u00a077\u00a0million.
Bonds (Imerys)
Imerys further underscored its commitment in its sustainable development policy by tying its financing strategy to its environmental ambition.
Therefore, on November 29, 2023, Imerys completed an issue of bonds indexed to its sustainable development objectives (Sustainability-Linked Bonds) for a principal amount of EUR\u00a0500\u00a0million. These bonds, due to mature on November 29, 2029, bear an annual coupon of 4.75% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. These bonds, due to mature on November 29, 2029, bear an annual coupon of 4.75% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. Issued in accordance with the Sustainability-Linked Bond Principles as published by the International Capital Markets Association (ICMA), these instruments, through their framework, are indexed to a target to reduce greenhouse gas emissions by 32.7% by 2028 (tCO2e) from a 2021 base year.
This includes Scope 1 emissions (direct emissions from sources owned or controlled by Imerys) and Scope 2 emissions (indirect emissions from the production of electricity, heat or steam imported or purchased by Imerys). Failure to comply with these targets at December\u00a031, 2028 could lead to the payment of penalties corresponding to 75 basis points of the principal amount for the 2028 target.
On May 14, 2021, the group also completed an issue of bonds indexed to its sustainable development objectives (Sustainability-Linked Bonds) for a principal amount of EUR\u00a0300\u00a0million. These bonds, due to mature on July 15, 2031, bear an annual coupon of 1.00% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. Issued in accordance with the Sustainability-Linked Bond Principles as published by the International Capital Markets Association (ICMA), these instruments are indexed to a target to reduce greenhouse gas emissions by 22.9% in 2025 and 36.0% in 2030 in relation to the revenue (tCO2e/million euros) considering 2018 as the base year, as approved by the Science Based Target initiative (\u201cSBTi\u201d). Failure to achieve these targets at December\u00a031, 2025 and/or at December\u00a031, 2030 could lead to the payment of penalties corresponding to 25\u00a0basis points of the principal amount for the 2025 target and/or 50 basis points of the principal amount for the 2030 target. At\u00a0December\u00a031, 2023, Imerys had reduced the metric tons of CO2emitted per\u00a0million euros of revenue by 30.6% compared with 2018 levels (29.6% since 2018 at December\u00a031,\u00a02022).
The details of the bond issued by Imerys as of December\u00a031, 2023 are mentioned below:
Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount | |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 500.0 | 2.00% | 2.13% | Listed | 12/10/2024 | 492.6 | 500.1 |
EUR | 600.0 | 1.50% | 1.63% | Listed | 01/15/2027 | 577.6 | 606.5 |
EUR | 300.0 | 1.88% | 1.92% | Listed | 03/31/2028 | 284.2 | 303.8 |
EUR | 500.0 | 4.75% | 4.82% | Listed | 11/29/2029 | 516.0 | 500.4 |
EUR | 300.0 | 1.00% | 1.07% | Listed | 07/15/2031 | 242.3 | 300.0 |
Total | 2,112.7 | 2,210.8 |
The details of the bond issued by Imerys as of December\u00a031, 2022 are mentioned below:
Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount | |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 500.0 | 2.00% | 2.13% | Listed | 12/10/2024 | 486.4 | 499.1 |
EUR | 600.0 | 1.50% | 1.63% | Listed | 01/15/2027 | 549.2 | 604.4 |
EUR | 300.0 | 1.88% | 1.92% | Listed | 03/31/2028 | 269.0 | 303.2 |
EUR | 300.0 | 1.00% | 1.07% | Listed | 07/15/2031 | 208.3 | 298.6 |
Total | 1,512.9 | 1,705.3 |
Bank debts (Imerys)
Those debts coming from Imerys include as of December\u00a031, 2023, EUR\u00a018\u00a0million of short-term borrowings and EUR\u00a05\u00a0million of bank overdrafts (EUR\u00a0434\u00a0million and EUR\u00a04\u00a0million respectively as of December\u00a031, 2022).
Bank debts (Webhelp)
In 2022, the bank debts coming from Webhelp mainly included the \u201csenior credit agreement\u201d concluded in 2019 and its extension for the financing of the acquisition of OneLink concluded on July 30, 2021:
As of December 31, 2022 | Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 1,020.0 | 3.00% | 4.91% | Unlisted | 11/18/2026 | 1,020.0 | 1,007.0 |
GBP | 125.0 | 4.00% | 7.80% | Unlisted | 11/18/2026 | 140.9 | 139.0 |
EUR | 285.6 | 3.75% | 5.60% | Unlisted | 11/18/2026 | 285.6 | 281.0 |
USD | 350.0 | 4.50% | 8.27% | Unlisted | 11/18/2026 | 323.2 | 317.0 |
Total | 1,769.7 | 1,744.0 |
Bank debts (Canyon)
This item includes long-term bank loans of Canyon.
Bank loans (Affidea)
This item includes Affidea\u2019s long-term bank debt. It is mainly composed of two bank loans of EUR\u00a0600\u00a0million and EUR\u00a0100\u00a0million, bearing a nominal interest rate of 5.00% each and maturing on July 22, 2029. Their total carrying amount is EUR\u00a0736\u00a0million at December\u00a031, 2023.
Bank loans (Sanoptis)
This item includes the long-term bank debt of Sanoptis.
Bank loans (GBL Capital)
This caption includes the different bank loans of the operational subsidiaries of AMB III.
Lease liabilities
These liabilities mature in 2024 for a total of EUR\u00a0109\u00a0million, between 2025 and 2029 for EUR\u00a0309\u00a0million and EUR\u00a0267\u00a0million thereafter.
Other current financial liabilities
In 2022, this item mainly included Webhelp\u2019s current portion of long-term debt.
Undrawn credit lines
As of December\u00a031, 2023, the group had undrawn credit lines with various financial institutions totaling EUR\u00a03,909\u00a0million (EUR\u00a04,336\u00a0million as of December\u00a031, 2022). These credit facilities are available mainly to GBL and Imerys in the amounts of EUR\u00a02,450\u00a0million and EUR\u00a01,010\u00a0million respectively (EUR\u00a02,450\u00a0million and EUR\u00a01,010\u00a0million as of December\u00a031, 2022).
With regards to GBL, all credit lines mature over the 2027 - 2028 period. Committed credit lines do not have financial covenants, meaning that, under its credit contracts, GBL has no obligations in terms of compliance with financial ratios.
17.3\tChange of financial liabilities
The table below mentions the reconciliation in 2023 and 2022 between the financial debts included in the consolidated balance sheet and the amounts from the consolidated statement of cash flows:
In EUR\u00a0million | As of January 1, 2023 | Cash flow variation | Acquisitions/sales of subsidiaries\u00a0 | Impact of exchange rates change | Other movements | As of December 31, 2023 |
Financial liabilities - Non-current liabilities | 8,714.7 | 940.6 | (14.1) | (2.3) | (2,461.7) | 7,177.2 |
Financial liabilities - Current liabilities | 1,654.6 | (421.3) | (1.6) | 1.8 | (59.9) | 1,173.7 |
Total | 10,369.3 | 519.3 | (15.7) | (0.5) | (2,521.6) | 8,350.9 |
In EUR\u00a0million | ||||||
As of January 1, 2022 | Cash flow variation | Acquisitions/sales of subsidiaries\u00a0 | Impact of exchange rates change | Other movements | As of December 31, 2022 | |
Financial liabilities - Non-current liabilities | 6,616.2 | 1,185.1 | 1,260.6 | 32.7 | (379.9) | 8,714.7 |
Financial liabilities - Current liabilities | 1,037.5 | (49.5) | 50.2 | (9.0) | 625.4 | 1,654.6 |
Total | 7,653.7 | 1,135.6 | 1,310.8 | 23.8 | 245.5 | 10,369.3 |
\u201cOther movements\u201d in 2023 resulted mainly from the reclassification of Webhelp\u2019s debt to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation) and the repayment of GBL\u2019s bank debt by Holcim shares. In 2022, these movements were mainly due to reclassifications between non-current and current liabilities, as well as the recognition of lease liabilities.
The change in cash and cash equivalents shown in the above table is reconciled with the consolidated statement of cash flows as follows:
In EUR\u00a0million | As of December 31, 2023 | As of December 31, 2022 |
Cash flow variation | 519.3 | 1,135.6 |
Of which: proceeds from financial liabilities | 3,291.1 | 2,191.7 |
repayments of financial liabilities | (2,771.8) | (1,056.1) |
17.4\tResidual contractual maturities of financial liabilities
In EUR\u00a0million | 2024 | 2025-2029 | 2030 and beyond | |||
As of December 31, 2023 | Principal | Interests | Principal | Interests | Principal | Interests |
Non-current financial liabilities | - | 157.7 | 3,456.8 | 773.8 | 3,723.7 | 212.1 |
Other non-current financial liabilities | - | - | 796.1 | 6.6 | 285.6 | - |
Non-current derivative financial instruments | - | - | 8.6 | - | - | - |
Current financial liabilities | 1,155.2 | 70.9 | - | - | - | - |
Trade payables | 571.5 | - | - | - | - | - |
Current derivative financial instruments | 46.2 | - | - | - | - | - |
Other current financial liabilities | 545.3 | 0.2 | - | - | - | - |
Total | 2,318.2 | 228.8 | 4,261.5 | 780.4 | 4,009.3 | 212.1 |
In EUR\u00a0million | 2023 | 2024-2028 | 2029 and beyond | |||
As of December 31, 2022 | Principal | Interests | Principal | Interests | Principal | Interests |
Non-current financial liabilities | - | 252.6 | 5,953.8 | 955.8 | 2,760.9 | 158.6 |
Other non-current financial liabilities | - | - | 1,545.2 | - | - | - |
Non-current derivative financial instruments | - | - | 92.8 | - | - | - |
Current financial liabilities | 1,654.6 | 40.9 | - | - | - | - |
Trade payables | 857.4 | - | - | - | - | - |
Current derivative financial instruments | 183.3 | - | - | - | - | - |
Other current financial liabilities | 73.7 | - | - | - | - | - |
Total | 2,769.1 | 293.5 | 7,591.8 | 955.8 | 2,760.9 | 158.6 |
17.1\tCash and cash equivalents
In EUR\u00a0million | 2023 | 2022 |
Current accounts | 506.7 | 1,249.0 |
Term deposits | 638.3 | 473.0 |
Treasury bonds and treasury notes | 53.0 | 46.2 |
Total | 1,198.0 | 1,768.3 |
Of which: Holding | 378.5 | 544.0 |
Imerys | 585.0 | 620.2 |
Webhelp | - | 340.0 |
Canyon | 16.7 | 25.0 |
Affidea | 78.0 | 63.0 |
Sanoptis | 52.6 | 88.0 |
GBL Capital and SIM | 87.2 | 88.0 |
As of December\u00a031, 2023 and 2022, cash was completely held in current accounts, fixed-term deposits and treasury notes with various financial institutions.
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In EUR\u00a0million | 2023 | 2022 |
Non-current financial liabilities | 7,177.2 | 8,714.7 |
Bonds (GBL)\u00a0 | 1,984.5 | 1,985.2 |
Convertible bonds (GBL) | 499.8 | 499.7 |
Exchangeable bonds (GBL) | 486.3 | 479.6 |
Bonds (Imerys) | 1,710.7 | 1,705.3 |
Bank borrowings (Webhelp) | - | 1,738.1 |
Bank borrowings (Canyon) | 225.3 | 225.7 |
Bank borrowings (Affidea) | 741.9 | 572.3 |
Bank borrowings (Sanoptis) | 899.0 | 602.0 |
Bank borrowings (GBL Capital) | - | 89.7 |
Lease liabilities | 574.6 | 738.8 |
Other non-current financial liabilities\u00a0 | 55.0 | 78.2 |
Current financial liabilities | 1,173.7 | 1,654.6 |
Bonds (GBL)\u00a0 | 499.8 | - |
Exchangeable bonds (GBL) | - | 447.4 |
Bank borrowings (GBL) | - | 535.3 |
Bank borrowings (Imerys) | 23.5 | 437.6 |
Bonds (Imerys) | 500.0 | - |
Lease liabilities | 108.8 | 168.9 |
Other current financial liabilities | 41.7 | 65.4 |
Bonds (issued by GBL)
On May 9, 2023, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 10-year maturity and a coupon of 4.000%. The carrying amount of this debt is EUR\u00a0496\u00a0million as of December\u00a031, 2023.
On August 30, 2022, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 7-year maturity and a coupon of 3.125%. The carrying amount of this debt is EUR\u00a0495\u00a0million as of December\u00a031, 2023.
On January\u00a021, 2021, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 10-year maturity and a coupon of 0.125%. The carrying amount of this debt is EUR\u00a0495\u00a0million as of December\u00a031, 2023.
On June 19, 2018, GBL placed a EUR\u00a0500\u00a0million institutional bond, with a 7-year maturity and a coupon of 1.875%. The carrying amount of this debt is\u00a0EUR\u00a0499\u00a0million as of December\u00a031, 2023.
During the first semester of 2017, GBL issued an institutional bond of EUR\u00a0500\u00a0million, with a coupon of 1.375% and maturing on May 23, 2024. The\u00a0carrying amount of this debt is EUR\u00a0500\u00a0million as of December\u00a031, 2023.
These issuances are intended to cover the group\u2019s general corporate purposes and lengthen the weighted average maturity of the gross debt.
Bonds convertible into GBL shares (GBL)
On March 23, 2021, GBL announced the placement by its fully-owned subsidiary Sagerpar SA (the \u201cIssuer\u201d) of EUR\u00a0500\u00a0million of bonds convertible into existing ordinary shares of GBL (the \u201cShares\u201d). The bonds are fully guaranteed by GBL (the \u201cGuarantor\u201d). This issue initially relates to approximately 4.3\u00a0million treasury shares.
The bonds do not bear interests and had at placement a maturity of 5 years (April 1, 2026), subject to early redemption. The bonds have been issued at an issue price of 101.25% of their principal amount and, unless previously redeemed, converted or purchased and cancelled, the bonds will be redeemed in cash at their principal amount at maturity (subject to the Issuer\u2019s share redemption option), which corresponds to an annual yield to maturity of - 0.25%. The initial conversion price of the bonds has been set at EUR\u00a0117.4928. The effective interest rate (including transaction costs allocated to the debt) stands at 0.02%.
The Issuer will have the option to redeem all, but not some only, of the bonds for the time being outstanding at their principal amount, at any time on or after April 16, 2024 provided that the volume-weighted average price of one Share on Euronext Brussels shall have exceeded 130% of the conversion price on each of not less than 20 trading days in any period of 30 consecutive trading days. The Issuer will have a share redemption option to deliver Shares and, as the case may be, an additional amount in cash upon redemption of the Bonds on the maturity date.
Bondholders may request the conversion of their bonds at any time since April 1, 2021 until (and including) the 45th Brussels business day (included) prior to the maturity date, subject to the Issuer\u2019s option to satisfy the conversion rights in cash, shares or a combination thereof. If the Issuer elects to satisfy conversion rights in Shares, it intends to deliver existing Shares which the Issuer holds on behalf of the Guarantor as treasury shares.
The bonds are admitted to trading on the open market (Freiverkher) of the Frankfurt Stock Exchange. The carrying amount of these bonds (excluding the option) is EUR\u00a0500\u00a0million as of December\u00a031, 2023. The option is assessed at fair value on the reporting date (EUR\u00a00\u00a0million as of December\u00a031,\u00a02023, shown under \u201cOther current financial liabilities\u201d).
Bonds exchangeable into Pernod Ricard shares (GBL)
On November 29, 2022, GBL (the \u201cIssuer\u201d) issued bonds exchangeable into existing shares of Pernod Ricard SA (\u201cPernod Ricard\u201d) for an amount of EUR\u00a0500\u00a0million. The bonds initially related to 2.0\u00a0million Pernod Ricard shares representing approximately 1% of its share capital. The bonds have, at their issuance, a maturity of 3 years (November 29, 2025), except in case of early redemption, exchange or purchase and cancellation. The bonds carry a coupon of 2.125% per annum. The bonds were issued at an issue price of 100% of their principal amount and, unless previously redeemed, exchanged, or purchased and cancelled, will be redeemed at their principal amount at maturity on November 29, 2025.
The Issuer will have the option to redeem all, but not only some, of the bonds, at their principal amount plus accrued and unpaid interest until the relevant date fixed for redemption (i) at any time on or after the date falling 2 years and 21 days after the Issue Date, provided that the value of the exchange property (being initially only Pernod Ricard shares) per bond attributable to EUR\u00a0100,000 in principal amount of bonds shall have exceeded EUR\u00a0130,000 on each of not less than 20 trading days in any period of 30 consecutive trading days; (ii) at any time, if 20% or less of the principal amount of the bonds originally issued remain outstanding; or (iii) in the event of an offer or scheme relating to the predominant equity share capital comprised in the exchange property, where the consideration as a result of such offer or scheme consists wholly of cash, all as described in the terms and conditions of the bonds.
Bondholders may request the exchange of their bonds for exchange property at any time since January\u00a09, 2023 until 40 Brussels business days before the maturity date, subject to the option of GBL to satisfy exchange rights in cash, exchange property or a combination thereof.
The bonds are admitted to trading on the open market (Freiverkher) of the Frankfurt Stock Exchange. The carrying amount of these bonds (excluding the option) is EUR\u00a0486\u00a0million as of December\u00a031, 2023. The option is assessed at fair value on the reporting date (EUR\u00a02\u00a0million as of December\u00a031,\u00a02023, shown under \u201cOther current financial liabilities\u201d).
Bonds exchangeable into GEA shares (GBL)
The bonds exchangeable into GEA shares matured on December\u00a029, 2023. They were redeemed in full in cash.
Bank borrowings (GBL)
During the second half of 2022, GBL entered into forward sales contracts with prepayment for 13.2\u00a0million Holcim shares, maturing in May 2023, and received EUR\u00a0538\u00a0million in cash. As of December\u00a031, 2022, the carrying amount of this debt was of EUR\u00a0535\u00a0million and the value of the derivative attached to these transactions, recorded under \u201cOther current liabilities\u201d, amounted to EUR\u00a077\u00a0million.
Bonds (Imerys)
Imerys further underscored its commitment in its sustainable development policy by tying its financing strategy to its environmental ambition.
Therefore, on November 29, 2023, Imerys completed an issue of bonds indexed to its sustainable development objectives (Sustainability-Linked Bonds) for a principal amount of EUR\u00a0500\u00a0million. These bonds, due to mature on November 29, 2029, bear an annual coupon of 4.75% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. These bonds, due to mature on November 29, 2029, bear an annual coupon of 4.75% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. Issued in accordance with the Sustainability-Linked Bond Principles as published by the International Capital Markets Association (ICMA), these instruments, through their framework, are indexed to a target to reduce greenhouse gas emissions by 32.7% by 2028 (tCO2e) from a 2021 base year.
This includes Scope 1 emissions (direct emissions from sources owned or controlled by Imerys) and Scope 2 emissions (indirect emissions from the production of electricity, heat or steam imported or purchased by Imerys). Failure to comply with these targets at December\u00a031, 2028 could lead to the payment of penalties corresponding to 75 basis points of the principal amount for the 2028 target.
On May 14, 2021, the group also completed an issue of bonds indexed to its sustainable development objectives (Sustainability-Linked Bonds) for a principal amount of EUR\u00a0300\u00a0million. These bonds, due to mature on July 15, 2031, bear an annual coupon of 1.00% and are admitted to trading on the regulated market of the Luxembourg Stock Exchange. Issued in accordance with the Sustainability-Linked Bond Principles as published by the International Capital Markets Association (ICMA), these instruments are indexed to a target to reduce greenhouse gas emissions by 22.9% in 2025 and 36.0% in 2030 in relation to the revenue (tCO2e/million euros) considering 2018 as the base year, as approved by the Science Based Target initiative (\u201cSBTi\u201d). Failure to achieve these targets at December\u00a031, 2025 and/or at December\u00a031, 2030 could lead to the payment of penalties corresponding to 25\u00a0basis points of the principal amount for the 2025 target and/or 50 basis points of the principal amount for the 2030 target. At\u00a0December\u00a031, 2023, Imerys had reduced the metric tons of CO2emitted per\u00a0million euros of revenue by 30.6% compared with 2018 levels (29.6% since 2018 at December\u00a031,\u00a02022).
The details of the bond issued by Imerys as of December\u00a031, 2023 are mentioned below:
Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount | |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 500.0 | 2.00% | 2.13% | Listed | 12/10/2024 | 492.6 | 500.1 |
EUR | 600.0 | 1.50% | 1.63% | Listed | 01/15/2027 | 577.6 | 606.5 |
EUR | 300.0 | 1.88% | 1.92% | Listed | 03/31/2028 | 284.2 | 303.8 |
EUR | 500.0 | 4.75% | 4.82% | Listed | 11/29/2029 | 516.0 | 500.4 |
EUR | 300.0 | 1.00% | 1.07% | Listed | 07/15/2031 | 242.3 | 300.0 |
Total | 2,112.7 | 2,210.8 |
The details of the bond issued by Imerys as of December\u00a031, 2022 are mentioned below:
Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount | |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 500.0 | 2.00% | 2.13% | Listed | 12/10/2024 | 486.4 | 499.1 |
EUR | 600.0 | 1.50% | 1.63% | Listed | 01/15/2027 | 549.2 | 604.4 |
EUR | 300.0 | 1.88% | 1.92% | Listed | 03/31/2028 | 269.0 | 303.2 |
EUR | 300.0 | 1.00% | 1.07% | Listed | 07/15/2031 | 208.3 | 298.6 |
Total | 1,512.9 | 1,705.3 |
Bank debts (Imerys)
Those debts coming from Imerys include as of December\u00a031, 2023, EUR\u00a018\u00a0million of short-term borrowings and EUR\u00a05\u00a0million of bank overdrafts (EUR\u00a0434\u00a0million and EUR\u00a04\u00a0million respectively as of December\u00a031, 2022).
Bank debts (Webhelp)
In 2022, the bank debts coming from Webhelp mainly included the \u201csenior credit agreement\u201d concluded in 2019 and its extension for the financing of the acquisition of OneLink concluded on July 30, 2021:
As of December 31, 2022 | Nominal value in currency | Nominal interest rate | Effective interest rate | Listed/Unlisted | Maturity | Fair value | Carrying amount |
In\u00a0million | In EUR\u00a0million | In EUR\u00a0million | |||||
EUR | 1,020.0 | 3.00% | 4.91% | Unlisted | 11/18/2026 | 1,020.0 | 1,007.0 |
GBP | 125.0 | 4.00% | 7.80% | Unlisted | 11/18/2026 | 140.9 | 139.0 |
EUR | 285.6 | 3.75% | 5.60% | Unlisted | 11/18/2026 | 285.6 | 281.0 |
USD | 350.0 | 4.50% | 8.27% | Unlisted | 11/18/2026 | 323.2 | 317.0 |
Total | 1,769.7 | 1,744.0 |
Bank debts (Canyon)
This item includes long-term bank loans of Canyon.
Bank loans (Affidea)
This item includes Affidea\u2019s long-term bank debt. It is mainly composed of two bank loans of EUR\u00a0600\u00a0million and EUR\u00a0100\u00a0million, bearing a nominal interest rate of 5.00% each and maturing on July 22, 2029. Their total carrying amount is EUR\u00a0736\u00a0million at December\u00a031, 2023.
Bank loans (Sanoptis)
This item includes the long-term bank debt of Sanoptis.
Bank loans (GBL Capital)
This caption includes the different bank loans of the operational subsidiaries of AMB III.
Lease liabilities
These liabilities mature in 2024 for a total of EUR\u00a0109\u00a0million, between 2025 and 2029 for EUR\u00a0309\u00a0million and EUR\u00a0267\u00a0million thereafter.
Other current financial liabilities
In 2022, this item mainly included Webhelp\u2019s current portion of long-term debt.
Undrawn credit lines
As of December\u00a031, 2023, the group had undrawn credit lines with various financial institutions totaling EUR\u00a03,909\u00a0million (EUR\u00a04,336\u00a0million as of December\u00a031, 2022). These credit facilities are available mainly to GBL and Imerys in the amounts of EUR\u00a02,450\u00a0million and EUR\u00a01,010\u00a0million respectively (EUR\u00a02,450\u00a0million and EUR\u00a01,010\u00a0million as of December\u00a031, 2022).
With regards to GBL, all credit lines mature over the 2027 - 2028 period. Committed credit lines do not have financial covenants, meaning that, under its credit contracts, GBL has no obligations in terms of compliance with financial ratios.
17.3\tChange of financial liabilities
The table below mentions the reconciliation in 2023 and 2022 between the financial debts included in the consolidated balance sheet and the amounts from the consolidated statement of cash flows:
In EUR\u00a0million | As of January 1, 2023 | Cash flow variation | Acquisitions/sales of subsidiaries\u00a0 | Impact of exchange rates change | Other movements | As of December 31, 2023 |
Financial liabilities - Non-current liabilities | 8,714.7 | 940.6 | (14.1) | (2.3) | (2,461.7) | 7,177.2 |
Financial liabilities - Current liabilities | 1,654.6 | (421.3) | (1.6) | 1.8 | (59.9) | 1,173.7 |
Total | 10,369.3 | 519.3 | (15.7) | (0.5) | (2,521.6) | 8,350.9 |
In EUR\u00a0million | ||||||
As of January 1, 2022 | Cash flow variation | Acquisitions/sales of subsidiaries\u00a0 | Impact of exchange rates change | Other movements | As of December 31, 2022 | |
Financial liabilities - Non-current liabilities | 6,616.2 | 1,185.1 | 1,260.6 | 32.7 | (379.9) | 8,714.7 |
Financial liabilities - Current liabilities | 1,037.5 | (49.5) | 50.2 | (9.0) | 625.4 | 1,654.6 |
Total | 7,653.7 | 1,135.6 | 1,310.8 | 23.8 | 245.5 | 10,369.3 |
\u201cOther movements\u201d in 2023 resulted mainly from the reclassification of Webhelp\u2019s debt to the \u201cAssets and liabilities associated with assets held for\u00a0sale\u201d as of September 25, 2023 (see Note Scope of consolidation) and the repayment of GBL\u2019s bank debt by Holcim shares. In 2022, these movements were mainly due to reclassifications between non-current and current liabilities, as well as the recognition of lease liabilities.
The change in cash and cash equivalents shown in the above table is reconciled with the consolidated statement of cash flows as follows:
In EUR\u00a0million | As of December 31, 2023 | As of December 31, 2022 |
Cash flow variation | 519.3 | 1,135.6 |
Of which: proceeds from financial liabilities | 3,291.1 | 2,191.7 |
repayments of financial liabilities | (2,771.8) | (1,056.1) |
17.4\tResidual contractual maturities of financial liabilities
In EUR\u00a0million | 2024 | 2025-2029 | 2030 and beyond | |||
As of December 31, 2023 | Principal | Interests | Principal | Interests | Principal | Interests |
Non-current financial liabilities | - | 157.7 | 3,456.8 | 773.8 | 3,723.7 | 212.1 |
Other non-current financial liabilities | - | - | 796.1 | 6.6 | 285.6 | - |
Non-current derivative financial instruments | - | - | 8.6 | - | - | - |
Current financial liabilities | 1,155.2 | 70.9 | - | - | - | - |
Trade payables | 571.5 | - | - | - | - | - |
Current derivative financial instruments | 46.2 | - | - | - | - | - |
Other current financial liabilities | 545.3 | 0.2 | - | - | - | - |
Total | 2,318.2 | 228.8 | 4,261.5 | 780.4 | 4,009.3 | 212.1 |
In EUR\u00a0million | 2023 | 2024-2028 | 2029 and beyond | |||
As of December 31, 2022 | Principal | Interests | Principal | Interests | Principal | Interests |
Non-current financial liabilities | - | 252.6 | 5,953.8 | 955.8 | 2,760.9 | 158.6 |
Other non-current financial liabilities | - | - | 1,545.2 | - | - | - |
Non-current derivative financial instruments | - | - | 92.8 | - | - | - |
Current financial liabilities | 1,654.6 | 40.9 | - | - | - | - |
Trade payables | 857.4 | - | - | - | - | - |
Current derivative financial instruments | 183.3 | - | - | - | - | - |
Other current financial liabilities | 73.7 | - | - | - | - | - |
Total | 2,769.1 | 293.5 | 7,591.8 | 955.8 | 2,760.9 | 158.6 |
17.4\tResidual contractual maturities of financial liabilities
In EUR\u00a0million | 2024 | 2025-2029 | 2030 and beyond | |||
As of December 31, 2023 | Principal | Interests | Principal | Interests | Principal | Interests |
Non-current financial liabilities | - | 157.7 | 3,456.8 | 773.8 | 3,723.7 | 212.1 |
Other non-current financial liabilities | - | - | 796.1 | 6.6 | 285.6 | - |
Non-current derivative financial instruments | - | - | 8.6 | - | - | - |
Current financial liabilities | 1,155.2 | 70.9 | - | - | - | - |
Trade payables | 571.5 | - | - | - | - | - |
Current derivative financial instruments | 46.2 | - | - | - | - | - |
Other current financial liabilities | 545.3 | 0.2 | - | - | - | - |
Total | 2,318.2 | 228.8 | 4,261.5 | 780.4 | 4,009.3 | 212.1 |
In EUR\u00a0million | 2023 | 2024-2028 | 2029 and beyond | |||
As of December 31, 2022 | Principal | Interests | Principal | Interests | Principal | Interests |
Non-current financial liabilities | - | 252.6 | 5,953.8 | 955.8 | 2,760.9 | 158.6 |
Other non-current financial liabilities | - | - | 1,545.2 | - | - | - |
Non-current derivative financial instruments | - | - | 92.8 | - | - | - |
Current financial liabilities | 1,654.6 | 40.9 | - | - | - | - |
Trade payables | 857.4 | - | - | - | - | - |
Current derivative financial instruments | 183.3 | - | - | - | - | - |
Other current financial liabilities | 73.7 | - | - | - | - | - |
Total | 2,769.1 | 293.5 | 7,591.8 | 955.8 | 2,760.9 | 158.6 |
Note 18Other current assets
In EUR\u00a0million | 2023 | 2022 |
Current financial assets | 60.3 | 90.9 |
Derivative financial instruments held for trading | 25.5 | 17.4 |
Derivative financial instruments - Hedging | 13.7 | 35.5 |
Other | 21.1 | 38.0 |
Current non financial assets | 377.1 | 498.7 |
Tax assets other than those related to income taxes | 101.1 | 110.7 |
Other taxes and VAT to be recovered | 124.1 | 201.6 |
Deferred expenses | 57.7 | 85.1 |
Other | 94.2 | 101.2 |
Total | 437.4 | 589.5 |
Of which: Holding | 39.4 | 44.0 |
Imerys | 253.7 | 235.6 |
Webhelp | - | 179.4 |
Canyon | 29.9 | 45.7 |
Affidea | 50.9 | 26.8 |
Sanoptis | 49.2 | 29.2 |
GBL Capital and SIM | 14.4 | 28.8 |
Note 18Other current assets
In EUR\u00a0million | 2023 | 2022 |
Current financial assets | 60.3 | 90.9 |
Derivative financial instruments held for trading | 25.5 | 17.4 |
Derivative financial instruments - Hedging | 13.7 | 35.5 |
Other | 21.1 | 38.0 |
Current non financial assets | 377.1 | 498.7 |
Tax assets other than those related to income taxes | 101.1 | 110.7 |
Other taxes and VAT to be recovered | 124.1 | 201.6 |
Deferred expenses | 57.7 | 85.1 |
Other | 94.2 | 101.2 |
Total | 437.4 | 589.5 |
Of which: Holding | 39.4 | 44.0 |
Imerys | 253.7 | 235.6 |
Webhelp | - | 179.4 |
Canyon | 29.9 | 45.7 |
Affidea | 50.9 | 26.8 |
Sanoptis | 49.2 | 29.2 |
GBL Capital and SIM | 14.4 | 28.8 |
Note 23Other current liabilities
In EUR\u00a0million | 2023 | 2022 |
Current financial liabilities | 122.6 | 257.0 |
Derivative financial instruments held for trading | 5.1 | 69.8 |
Derivative financial instruments - Hedging | 41.1 | 113.5 |
Other | 76.3 | 73.7 |
Current non-financial liabilities | 606.9 | 1,006.1 |
Social security liabilities | 203.0 | 344.9 |
Tax liabilities other than those related to income tax | 63.1 | 168.6 |
Other | 340.8 | 492.6 |
Total | 729.4 | 1,263.1 |
Of which: Holding | 76.0 | 153.6 |
Imerys | 396.8 | 373.3 |
Webhelp | - | 518.0 |
Canyon | 27.0 | 33.2 |
Affidea | 152.9 | 129.5 |
Sanoptis | 44.8 | 26.1 |
GBL Capital and SIM | 31.9 | 29.4 |
The other current non-financial liabilities mainly include a debt related to fixed assets at Imerys\u2019 level for EUR\u00a0109\u00a0million.
Note 19Share capital and dividends
19.1Shares issued and outstanding and treasury shares
Number of issued shares | Of which treasury shares | |
As of December 31, 2021 | 156,355,000 | (7,944,102) |
Change | (3,355,000) | (4,278,768) |
As of December 31, 2022 | 153,000,000 | (12,222,870) |
Change | (6,300,000) | (4,708,383) |
As of December 31, 2023 | 146,700,000 | (16,931,253) |
Treasury shares
As of December\u00a031, 2023, the group held 16,931,253 treasury shares, or 11.54% of the issued capital, the acquisition cost of which is deducted from shareholders\u2019 equity; 4,255,580 of which are used to hedge the convertible bond.
The Extraordinary General Meeting of May 4, 2023 approved the cancellation of 6,300,000 own shares acquired by GBL. The capital is therefore represented by 146,700.000 shares.
In 2023, GBL acquired and sold/cancelled respectively 12,013,110 and 7,304,727 shares (to compare with respectively 8,657,745 and 4,378,977 in 2022) for an overall net amount of EUR\u00a0816\u00a0million.
Information on acquisitions of treasury shares by GBL or its subsidiaries has been published on a weekly basis on the GBL website.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f138853": { "value": "19.1Shares issued and outstanding and treasury shares
Number of issued shares | Of which treasury shares | |
As of December 31, 2021 | 156,355,000 | (7,944,102) |
Change | (3,355,000) | (4,278,768) |
As of December 31, 2022 | 153,000,000 | (12,222,870) |
Change | (6,300,000) | (4,708,383) |
As of December 31, 2023 | 146,700,000 | (16,931,253) |
Treasury shares
As of December\u00a031, 2023, the group held 16,931,253 treasury shares, or 11.54% of the issued capital, the acquisition cost of which is deducted from shareholders\u2019 equity; 4,255,580 of which are used to hedge the convertible bond.
The Extraordinary General Meeting of May 4, 2023 approved the cancellation of 6,300,000 own shares acquired by GBL. The capital is therefore represented by 146,700.000 shares.
In 2023, GBL acquired and sold/cancelled respectively 12,013,110 and 7,304,727 shares (to compare with respectively 8,657,745 and 4,378,977 in 2022) for an overall net amount of EUR\u00a0816\u00a0million.
Information on acquisitions of treasury shares by GBL or its subsidiaries has been published on a weekly basis on the GBL website.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f139157": { "value": "381000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwners", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f139193": { "value": "2.75", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "s7_notes__7__248-1": { "value": "Note 20Provisions
In EUR\u00a0million | Product guarantees | Environment | Legal, social and regulatory risks | Total |
As of December 31, 2021 | 9.7 | 268.9 | 219.3 | 497.9 |
Additions | 4.2 | 23.5 | 42.8 | 70.5 |
Uses | (6.0) | (13.8) | (22.9) | (42.8) |
Reversals | (1.2) | (0.9) | (14.7) | (16.8) |
Impact of discounting | - | 2.1 | 0.8 | 2.9 |
Changes in group structure/Business combinations | - | (9.1) | 14.1 | 5.0 |
Foreign currency translation adjustments | 0.1 | (0.1) | 8.4 | 8.4 |
Other | (1.2) | (9.8) | (32.4) | (43.4) |
As of December 31, 2022 | 5.6 | 260.7 | 215.3 | 481.6 |
Additions | 4.0 | 17.8 | 59.0 | 80.9 |
Uses | (2.9) | (13.1) | (21.1) | (37.1) |
Reversals | (0.4) | (1.6) | (16.5) | (18.5) |
Impact of discounting | - | 3.0 | - | 3.0 |
Changes in group structure/Business combinations | - | 5.7 | 0.7 | 6.4 |
Foreign currency translation adjustments | (0.1) | (0.7) | (2.8) | (3.6) |
Other | 0.0 | 15.7 | (20.2) | (4.4) |
As of December 31, 2023 | 6.3 | 287.5 | 214.4 | 508.2 |
Of which current provisions | 2.1 | 10.2 | 39.9 | 52.2 |
Of which non-current provisions | 4.2 | 277.3 | 174.6 | 456.0 |
The group\u2019s provisions totaled EUR\u00a0508\u00a0million as of December\u00a031, 2023 (EUR\u00a0482\u00a0million in 2022). They mainly relate to Imerys (EUR\u00a0470\u00a0million in\u00a02023 and EUR\u00a0423\u00a0million in 2022).
The probability of settlement and the amount of the obligations are estimated by the group, that generally calls upon in-house company experts to approve the key assumptions, taking into account the anticipated effects, regulatory changes where applicable, and independent counsel regarding material disputes and claims. The resulting estimates are subject to change depending on the uncertainties specific to each dispute. Independent counsel handles allegations of personal or financial damage implicating the civil liability of the group and potential breaches of contractual obligations or regulations on social, real estate and environmental issues. The provisions set aside for these risks are included in the EUR\u00a0214\u00a0million of provisions for legal, social and regulatory risks in the table of changes mentioned above. This includes in particular the balance of the provision set aside to resolve the litigation involving Imerys\u2019 talc operations in the US, the materiality of which justifies a specific development.
On February 13, 2019, the group\u2019s three North American talc subsidiaries decided to file for the protection, with immediate effect, of the special legal process of Chapter 11 under US bankruptcy law in order to permanently resolve the potential liabilities related to their historic commercial talc operations in the United States. Under Chapter 11, the group remains the legal owner of the share capital of the North American talc subsidiaries, but their businesses are under the judicial control of the relevant Federal Court for the District of Delaware (the \u201cBankruptcy Court\u201d), which oversees the continuing operations of the entities concerned as well as the conclusion and execution of a business reorganization plan that the North American talc subsidiaries have sought to negotiate with representatives of existing and future potential talc claimants. The Chapter 11 process suspended all ongoing litigation proceedings and enjoined any further claims being brought against these entities relating to past and current talc operations in the US. Given effective control of the North American talc subsidiaries was transferred on February 13, 2019 to the court to repay creditors, the assets and liabilities held by the North American talc subsidiaries were removed from the scope of consolidation of the group\u2019s financial statements from this date forward, which led to an additional expense of EUR\u00a0- 6\u00a0million. Negotiations between the North American talc subsidiaries, which were joined by Imerys Talc Italy, the group and the representatives of claimants led to the agreement on May 15, 2020 of a joint reorganization plan, which was filed on the same day with the Bankruptcy Court. The plan provides that once the necessary approvals have been obtained, the talc subsidiaries involved will come out of the Chapter 11 process and the group will be released from all existing and future talc related liabilities arising out of past operations of the talc subsidiaries involved, as such liabilities will be channeled into a dedicated trust to be established.
Imerys Talc Italy has been named in a small number of talc related lawsuits in the United States. Upon the grant of the required majority vote on the plan and requisite corporate approvals, Imerys Talc Italy also intends to file for Chapter 11 protection before the final confirmation of the plan and join the plan in order to benefit from the same comprehensive and permanent resolution of historic talc-related liabilities as the North American talc subsidiaries. Imerys Talc Italy\u2019s business will remain part of the group throughout and after the closing of the Chapter 11 proceedings.
Following the approval in January\u00a02021 by the Bankruptcy Court of the disclosure statement filed in conjunction with the plan , the plan was then submitted to the vote by the creditors and claimants against the talc subsidiaries involved. In accordance with the plan, the North American talc subsidiaries also sold their assets to Magris Resources, a Canadian investment fund, for USD 223\u00a0million on February 17, 2021. In April 2021, the plan was approved at a qualified majority exceeding the 75% required voting threshold under the applicable regulations. However, on October 13, 2021, the Bankruptcy Court issued a ruling that certain ballots cast in favor of the plan will not be counted and, as a consequence, the approval of the plan fell just short of the required 75% majority vote. As a result, the North American talc subsidiaries, the representatives of the claimants, and other stakeholders in the Chapter 11 process have engaged in a mediation approved by the Bankruptcy Court, with a successively extended timeline, to reach a revised plan that will achieve the required 75% majority approval vote.
The progress in the mediation and negotiation process to agree on a revised plan has been delayed by the distraction of the representatives of the claimants caused by the chapter 11 petition commenced by a new subsidiary of the Johnson & Johnson group - LTL (now renamed LLT) Management LLC - specifically created for this purpose. This separate and specific chapter 11 case has been highly contested judicially and involved many of the same stakeholders, including claimants, as the Chapter 11 of the North American talc subsidiaries.
After a first dismissal in January\u00a02023 by the relevant court of appeals of the LLT\u2019s chapter 11 petition, the new filing in April 2023 by LLT for the chapter 11 protection before the same bankruptcy court for the district of New Jersey was again dismissed in August 2023.
The mediation and negotiations between the mediation parties have finally succeeded in an agreement on a revised plan, together with all supporting documents required for its implementation, which were filed before the Bankruptcy Court on January\u00a031, 2024. The revised plan includes without any change the terms and conditions of the settlement with the group as embedded in the plan announced in May 2020. The key amendments to the plan as now reflected in the revised plan, relate to (i) the structure and governance of the trust applicable to the receipt and management of the financial proceeds from the various financial contributors to the revised plan, (ii) the allocation rules of the trust assets among talc claimants alleging different injuries, including the actual or potential North American talc subsidiaries\u2019 rights to insurance coverage and contractual indemnity, current and future potential settlement proceeds with third parties; and (iii) the detailed procedures applicable to the approval of the revised plan, reflecting in particular its alignment with the concurring chapter 11 process initiated in April 2021 by one of the previous owners of certain talc assets of North American talc subsidiaries (i.e the former North American mining group \u201cCyprus Mines\u201d) which is contributing to the revised plan.
The proposed revised plan is currently under review by the Bankruptcy Court for the approval of a new solicitation by the talc subsidiaries involved of claimants\u2019 votes on the revised plan. Subject to approval of the revised plan at the required 75% voting threshold, it will then undergo a confirmation procedure before the Bankruptcy Court to be followed by a final approval process before another competent federal court.
Under the terms and conditions of the settlement with the group as embedded in the plan and restated in the revised plan, the group\u2019s contribution consists of (i) a minimum cash payment of USD 75\u00a0million, (ii) the proceeds from the sale of the assets of the North American talc subsidiaries at a price of USD 223\u00a0million, and (iii) certain other components further outlined in the revised plan. These commitments primarily include certain insurance assets, financing of minor unsecured trade claims (USD 5\u00a0million) and certain excess administrative costs of the Chapter 11 process incurred by the talc subsidiaries involved up to a maximum of USD 15\u00a0million.
On the basis of the revised plan and the current state of the Chapter 11 process, at the date the group\u2019s 2023 financial results were approved, the group reviewed with the help of independent third-party experts and reiterated its prior estimate of the risk related to the resolution of the Chapter\u00a011 procedure and the forecast financial impact for the group. A provision of EUR\u00a0250\u00a0million was initially accrued in Imerys\u2019 2018 consolidated financial accounts, bearing in mind that the North American talc subsidiaries have been deconsolidated since February 13, 2019. At\u00a0December\u00a031,\u00a02023, the provision recognized in group\u2019s financial statements, which amounted to USD 115\u00a0million, i.e., EUR\u00a0104\u00a0million, was considered appropriate to cover the expected financial impact of the revised plan for the group.
Imerys\u2019 and Canyon\u2019s provisions to hedge product guarantees amount to EUR\u00a06\u00a0million and have a probable maturity ranging from 2024 to 2028.
Finally, the group (overwhelmingly Imerys) establishes provisions to hedge the environmental risks resulting from its industrial activity and provisions for the rehabilitation of mining sites at the end of their operating lifetimes. These provisions totaled EUR\u00a0287\u00a0million as of December\u00a031,\u00a02023 (EUR\u00a0261\u00a0million in 2022). The corresponding obligations are expected to mature between 2024 and 2028 for EUR\u00a079\u00a0million, between 2029 and 2038 for EUR\u00a099\u00a0million and as from 2039 for EUR\u00a0109\u00a0million.
Note 21Retirement benefits and other post-employment benefits
21.1\tDefined contribution plans
In this type of retirement plan, whose future level is not guaranteed to the beneficiaries, the employer commits to pay regular contributions to the third parties (retirement funds, insurance companies or financial institutions) on a mandatory basis (statutory or regulatory provisions) or an optional basis (supplementary retirement plan voluntarily provided by the company).
The amounts are paid during the year in which they are due. The total amount of contributions paid for defined contribution plans is EUR\u00a025\u00a0million in 2023 (EUR\u00a027\u00a0million in 2022). These plans are mostly granted to Imerys employees.
21.2\tDefined benefit plans
Characteristics of defined benefit plans
In this type of plan, the group guarantees to the beneficiaries the level of the benefit that will be paid in the future. The beneficiaries of these plans are employees who are acquiring entitlements in exchange for services rendered to the group (active beneficiaries), employees who are no longer acquiring entitlements in exchange for services rendered to the group and former employees outside the group (deferred beneficiaries), as well as\u00a0former retired employees (retired beneficiaries).
The valuation of retirement benefit obligations and other employee benefits is carried out by independent actuaries. These plans may be financed by\u00a0insurance companies (group insurance), retirement funds or independent entities. Two plans accounted for 68.0 % of the group\u2019s total commitment as of December\u00a031, 2023. These are the UK plan\u2013the Imerys UK Pension Scheme (Imerys UK) and the US plan\u2013the Imerys USA Retirement Growth Account Plan (Imerys USA).
The table below sets out their main characteristics:
Imerys UK | Imerys USA | |
Eligibility | ||
Hiring limit date | 12/31/2004 | 03/31/2010 |
Retirement age | 65 | 65 |
Description of the benefits | ||
Terms of payment | Annuity(1) | Capital(2) |
Revaluation based on the consumer price index | Yes | No |
End date of cumulated rights | 03/31/2015 | 12/31/2014 |
Regulatory framework | ||
Minimum employer funding obligation | Yes(3) | Yes(3) |
Minimum beneficiary contribution obligation | Yes | No |
Governance | ||
Trustees representing the employer | Yes | Yes |
Trustees representing beneficiaries | Yes | No |
Independent trustees | Yes | No |
Responsibility of trustees | ||
Definition of the investment strategy | Yes | Yes |
Negotiation of deficit refinancing with the employer | Yes | - |
Administrative management of benefit payments | Yes | Yes |
The duration of these two plans is 11 years for Imerys UK and 8 years for Imerys USA (respectively 13 years and 8 years as of December\u00a031, 2022).
Management of risks associated with employees benefits
Description of risks
The main issue related to the financial management of employee benefits is the control of the funding ratio of obligations, i.e., the ratio between the value of plan assets and the value of the obligations. The funding ratio of obligations may be deteriorated by a decorrelation between a change in value (generally negative) of plan assets and a change in value (generally positive) of obligations. The value of plan assets may be reduced by deteriorating the fair value of investments. The value of obligations may rise for all plans after a drop in discount rates or benefits paid as life annuities, either due to an increase in the inflation rates used to remeasure the obligations of certain plans, or due to an increase in the life expectancy of beneficiaries.
(1)\tAnnuity calculated based on number of years of service provided, annual salary on retirement and average of three last annual salaries
(2)\tPrincipal at a guaranteed interest rate (Cash Balance Plan)
(3)\tThe employer is obliged to fund each unit of service provided at 100% on the basis of a funding evaluation
Risk management
The strategy to control the obligation funding level consists firstly of optimizing the value of the plan assets. Investment strategies are therefore devised to deliver a steady return while also taking advantage of opportunities with limited or moderate risks levels. The choice of investments is specific to each plan and factors in the duration of the plan as well as minimum funding regulatory constraints.
Since 2011, Imerys has pursued a specific strategy to control the funding ratio of obligations in the UK in particular, which defines plan asset investments to match the obligation. The strategy, known as Liability Driven Investment (LDI), controls the funding ratio of the obligation by pegging cash inflows to cash outflows over the duration of the obligation. In practice, it involves structuring the portfolio of plan assets so that the cash inflows generated by the return on investments match the cash outflows generated by the payment of benefits. It hedges the risk of an increase in the obligation due to a drop in discount rates or an increase in inflation rates by covering a portion of the value of the regularly revised obligation.
Funding of employee benefits
The group funds the majority of employee benefits with investments unavailable to third parties in trusts or insurance contracts legally separate from the group. These investments, classified as plan assets, stood at EUR\u00a01,004\u00a0million as of December\u00a031, 2023 (EUR\u00a0940\u00a0million as of December\u00a031,\u00a02022). Imerys also has reimbursement rights, in other words investments held directly by the group, which came to EUR\u00a00\u00a0million as\u00a0of\u00a0December\u00a031, 2023 (EUR\u00a00\u00a0million as of December\u00a031, 2022). The obligation funding ratio therefore stood at 85.5% as of December\u00a031, 2023 (85.3% as of December\u00a031, 2022).
A provision of EUR\u00a0183\u00a0million was recognized as of December\u00a031, 2023 for the funded and unfunded plan deficit (EUR\u00a0172\u00a0million as of December\u00a031,\u00a02022), as the following table shows:
In EUR\u00a0million | 2023 | 2022 |
Obligations funded by plan assets | (1,019.5) | (969.4) |
Obligations funded by reimbursement rights | (0.3) | (0.5) |
Fair value of plan assets | 1,004.3 | 939.5 |
Restrictions on recognized assets | (13.3) | (10.9) |
Fair value of reimbursement rights | 0.2 | 0.2 |
Funding surplus (deficit)\u00a0 | (28.6) | (41.2) |
Unfunded obligations | (154.3) | (130.9) |
Assets/(provision) | (182.9) | (172.0) |
Of which: Non-current liabilities | (183.8) | (189.1) |
Non-current assets | 1.0 | 17.1 |
Fair value of plan assets
The assets held by the group to fund employee benefits generated real interest of EUR\u00a041\u00a0million in 2023 (EUR\u00a0- 333\u00a0million in 2022), as presented in the table below. In accordance with current regulations, only a normative share of this return was credited to profit or loss in 2023, amounting to EUR\u00a036\u00a0million (EUR\u00a022\u00a0million in 2022), calculated based on the discount rate used on the obligations. The surplus real return above the normative return was credited to shareholders\u2019 equity in the amount of EUR\u00a04\u00a0million in 2023 (EUR\u00a0- 355\u00a0million in 2022).
In EUR\u00a0million | 2023 | 2022 |
Balance as of January 1 | 939.5 | 1,282.3 |
Employer's contributions | 34.0 | 19.4 |
Participants' contributions | 6.5 | 1.3 |
Benefits paid | (66.4) | (74.5) |
Foreign currency translation adjustments | 14.0 | (23.3) |
Real return on assets | 40.5 | (333.0) |
Normative return (profit or loss) | 36.1 | 22.4 |
Adjustment to the real return (shareholders' equity)\u00a0 | 4.4 | (355.4) |
Changes in group structure/Business combinations | 17.5 | 74.8 |
Other movements | 18.7 | (7.4) |
Balance as of December 31 | 1,004.3 | 939.5 |
Distribution of plan assets
In % | 2023 | 2022 |
Shares | 17% | 12% |
Listed | 17% | 12% |
Unlisted | - | 0% |
Bonds | 57% | 68% |
Listed | 57% | 66% |
Unlisted | - | 2% |
Real estate | 2% | 2% |
Other | 24% | 19% |
Total | 100% | 100% |
Plan obligations \u2013 funded, unfunded and partially funded plans
In EUR\u00a0million | 2023 | 2022 |
Balance as of January 1 | 1,100.8 | 1,821.1 |
Current service costs for the period | 19.1 | 24.4 |
Interest expense | 45.4 | 26.0 |
Actuarial losses (gains) from: | 36.1 | (412.8) |
changes to demographic assumptions | (11.1) | 4.0 |
changes to financial assumptions | 30.7 | (448.0) |
experience adjustments | 16.5 | 31.3 |
Benefits paid | (72.4) | (83.7) |
Changes in group structure/Business combinations | 6.5 | 45.5 |
Foreign currency translation adjustments | 12.0 | (19.7) |
Other movements | 26.6 | (300.0) |
Balance as of December 31 | 1,174.1 | 1,100.8 |
Amounts relating to the plan recognized in comprehensive income
In EUR\u00a0million | 2023 | 2022 |
Current service costs for the period | 19.1 | 24.4 |
Interest expense\u00a0 | 45.4 | 26.0 |
Normative return on the assets of defined benefit plans | (36.1) | (22.4) |
Amounts recognized in profit or loss | 28.4 | 28.1 |
Surplus real return on assets above their normative return | (4.4) | 355.4 |
Actuarial losses (gains) from post-employment benefits due to: | 36.1 | (412.8) |
changes to demographic assumptions | (11.1) | 4.0 |
changes to financial assumptions | 30.7 | (448.0) |
experience adjustments | 16.5 | 31.3 |
Restrictions on recognized assets | 2.3 | 10.9 |
Amounts recognized in shareholders' equity - (credit)/debit | 34.0 | (46.5) |
Total | 62.4 | (18.4) |
Changes in the statement of financial position
The change in the amounts recognized in the statement of financial position is explained in the following table:
In EUR\u00a0million | 2023 | 2022 |
Amounts recognized as of January 1 | 172.0 | 532.6 |
Net expense recognized in profit or loss | 28.4 | 28.1 |
Contributions paid | (46.5) | (29.9) |
Actuarial (gains)/losses and ceiling on assets recognized in shareholders' equity | 34.0 | (46.5) |
Changes in group structure/Business combinations/Foreign currency translation adjustments and other | (5.0) | (312.3) |
Amounts recognized as of December 31 | 182.9 | 172.0 |
Of which: Holding | 1.9 | 1.4 |
Imerys | 159.6 | 144.1 |
Webhelp | - | 14.4 |
Canyon | 0.2 | 0.2 |
Affidea | 13.1 | 11.1 |
Sanoptis | 7.6 | 1.5 |
GBL Capital and SIM | 0.3 | (0.7) |
During the financial year 2023, a net debit amount of EUR\u00a028\u00a0million related to actuarial gains and losses and the ceiling on recognized assets was charged directly to comprehensive income, i.e., EUR\u00a034\u00a0million gross less EUR\u00a06\u00a0million in related taxes (a net credit amount of EUR\u00a039\u00a0million as of December\u00a031, 2022, i.e., EUR\u00a046\u00a0million gross less EUR\u00a08\u00a0million in related taxes).
Estimates
The actuarial assumptions used to value the defined benefit plans are presented below:
In % | 2023 | 2022 |
Discount rate | 1.5% - 27.0% | 0.2% - 12.0% |
Average salary increase rate | 0.8% - 24.0% | 2.0% - 36.0% |
Inflation rate | 1.5% - 6.0% | 1.2% - 36.0% |
More specifically for the two monetary zones where the largest commitments are located (the United Kingdom and the United States), the actuarial assumptions were as follows in 2023:
In % | United Kingdom | United States |
Discount rate | 4.4% | 4.5% |
Average salary increase rate | 3.0% | 3.0% |
Inflation rate | 3.1% | 3.1% |
Among these estimates, it is the discount rate that has the most significant impact on the group\u2019s financial statements.
The following table presents the impact of a reasonably estimated change in discount rates following a possible decrease (lower case) or increase (higher case) in the assumption applied to the financial statements as of December\u00a031, 2023 (actual 2023). The impact of these changes is measured on three aggregates (obligation, net interest and current service cost) in the two monetary zones in which the most significant obligations have been undertaken (the United Kingdom and the United States). The reasonably estimated change in discount rates has been set at 50 basis points, based on the weighted average change in discount rates in the United Kingdom and the United States over the last five years.
In EUR\u00a0million | Low Simulation | Central/Base scenario | High Simulation |
United Kingdom | |||
Discount rate | 3.9% | 4.4% | 4.9% |
Obligation at the reporting date | 637.9 | 605.1 | 575.1 |
Net interest in 2024 profit or loss(1)\u00a0 | (3.7) | (2.8) | (1.6) |
Current service costs in 2024 profit or loss(2) | - | - | - |
United States | |||
Discount rate | 4.0% | 4.5% | 5.0% |
Obligation at the reporting date | 201.3 | 193.8 | 186.8 |
Net interest in 2024 profit or loss(1) | (2.1) | (2.1) | (1.9) |
Current service costs in 2024 profit or loss(2) | (0.6) | (0.5) | (0.5) |
At constant scope of consolidation and all other things being equal, the amount of the contributions to the various defined retirement benefit plans is estimated at EUR\u00a027\u00a0million for 2024.
(1)\tAccretion of obligation, net of normative yield on assets
(2)\tPlan closed-frozen as of April 1, 2015
Note 20Provisions
In EUR\u00a0million | Product guarantees | Environment | Legal, social and regulatory risks | Total |
As of December 31, 2021 | 9.7 | 268.9 | 219.3 | 497.9 |
Additions | 4.2 | 23.5 | 42.8 | 70.5 |
Uses | (6.0) | (13.8) | (22.9) | (42.8) |
Reversals | (1.2) | (0.9) | (14.7) | (16.8) |
Impact of discounting | - | 2.1 | 0.8 | 2.9 |
Changes in group structure/Business combinations | - | (9.1) | 14.1 | 5.0 |
Foreign currency translation adjustments | 0.1 | (0.1) | 8.4 | 8.4 |
Other | (1.2) | (9.8) | (32.4) | (43.4) |
As of December 31, 2022 | 5.6 | 260.7 | 215.3 | 481.6 |
Additions | 4.0 | 17.8 | 59.0 | 80.9 |
Uses | (2.9) | (13.1) | (21.1) | (37.1) |
Reversals | (0.4) | (1.6) | (16.5) | (18.5) |
Impact of discounting | - | 3.0 | - | 3.0 |
Changes in group structure/Business combinations | - | 5.7 | 0.7 | 6.4 |
Foreign currency translation adjustments | (0.1) | (0.7) | (2.8) | (3.6) |
Other | 0.0 | 15.7 | (20.2) | (4.4) |
As of December 31, 2023 | 6.3 | 287.5 | 214.4 | 508.2 |
Of which current provisions | 2.1 | 10.2 | 39.9 | 52.2 |
Of which non-current provisions | 4.2 | 277.3 | 174.6 | 456.0 |
The group\u2019s provisions totaled EUR\u00a0508\u00a0million as of December\u00a031, 2023 (EUR\u00a0482\u00a0million in 2022). They mainly relate to Imerys (EUR\u00a0470\u00a0million in\u00a02023 and EUR\u00a0423\u00a0million in 2022).
The probability of settlement and the amount of the obligations are estimated by the group, that generally calls upon in-house company experts to approve the key assumptions, taking into account the anticipated effects, regulatory changes where applicable, and independent counsel regarding material disputes and claims. The resulting estimates are subject to change depending on the uncertainties specific to each dispute. Independent counsel handles allegations of personal or financial damage implicating the civil liability of the group and potential breaches of contractual obligations or regulations on social, real estate and environmental issues. The provisions set aside for these risks are included in the EUR\u00a0214\u00a0million of provisions for legal, social and regulatory risks in the table of changes mentioned above. This includes in particular the balance of the provision set aside to resolve the litigation involving Imerys\u2019 talc operations in the US, the materiality of which justifies a specific development.
On February 13, 2019, the group\u2019s three North American talc subsidiaries decided to file for the protection, with immediate effect, of the special legal process of Chapter 11 under US bankruptcy law in order to permanently resolve the potential liabilities related to their historic commercial talc operations in the United States. Under Chapter 11, the group remains the legal owner of the share capital of the North American talc subsidiaries, but their businesses are under the judicial control of the relevant Federal Court for the District of Delaware (the \u201cBankruptcy Court\u201d), which oversees the continuing operations of the entities concerned as well as the conclusion and execution of a business reorganization plan that the North American talc subsidiaries have sought to negotiate with representatives of existing and future potential talc claimants. The Chapter 11 process suspended all ongoing litigation proceedings and enjoined any further claims being brought against these entities relating to past and current talc operations in the US. Given effective control of the North American talc subsidiaries was transferred on February 13, 2019 to the court to repay creditors, the assets and liabilities held by the North American talc subsidiaries were removed from the scope of consolidation of the group\u2019s financial statements from this date forward, which led to an additional expense of EUR\u00a0- 6\u00a0million. Negotiations between the North American talc subsidiaries, which were joined by Imerys Talc Italy, the group and the representatives of claimants led to the agreement on May 15, 2020 of a joint reorganization plan, which was filed on the same day with the Bankruptcy Court. The plan provides that once the necessary approvals have been obtained, the talc subsidiaries involved will come out of the Chapter 11 process and the group will be released from all existing and future talc related liabilities arising out of past operations of the talc subsidiaries involved, as such liabilities will be channeled into a dedicated trust to be established.
Imerys Talc Italy has been named in a small number of talc related lawsuits in the United States. Upon the grant of the required majority vote on the plan and requisite corporate approvals, Imerys Talc Italy also intends to file for Chapter 11 protection before the final confirmation of the plan and join the plan in order to benefit from the same comprehensive and permanent resolution of historic talc-related liabilities as the North American talc subsidiaries. Imerys Talc Italy\u2019s business will remain part of the group throughout and after the closing of the Chapter 11 proceedings.
Following the approval in January\u00a02021 by the Bankruptcy Court of the disclosure statement filed in conjunction with the plan , the plan was then submitted to the vote by the creditors and claimants against the talc subsidiaries involved. In accordance with the plan, the North American talc subsidiaries also sold their assets to Magris Resources, a Canadian investment fund, for USD 223\u00a0million on February 17, 2021. In April 2021, the plan was approved at a qualified majority exceeding the 75% required voting threshold under the applicable regulations. However, on October 13, 2021, the Bankruptcy Court issued a ruling that certain ballots cast in favor of the plan will not be counted and, as a consequence, the approval of the plan fell just short of the required 75% majority vote. As a result, the North American talc subsidiaries, the representatives of the claimants, and other stakeholders in the Chapter 11 process have engaged in a mediation approved by the Bankruptcy Court, with a successively extended timeline, to reach a revised plan that will achieve the required 75% majority approval vote.
The progress in the mediation and negotiation process to agree on a revised plan has been delayed by the distraction of the representatives of the claimants caused by the chapter 11 petition commenced by a new subsidiary of the Johnson & Johnson group - LTL (now renamed LLT) Management LLC - specifically created for this purpose. This separate and specific chapter 11 case has been highly contested judicially and involved many of the same stakeholders, including claimants, as the Chapter 11 of the North American talc subsidiaries.
After a first dismissal in January\u00a02023 by the relevant court of appeals of the LLT\u2019s chapter 11 petition, the new filing in April 2023 by LLT for the chapter 11 protection before the same bankruptcy court for the district of New Jersey was again dismissed in August 2023.
The mediation and negotiations between the mediation parties have finally succeeded in an agreement on a revised plan, together with all supporting documents required for its implementation, which were filed before the Bankruptcy Court on January\u00a031, 2024. The revised plan includes without any change the terms and conditions of the settlement with the group as embedded in the plan announced in May 2020. The key amendments to the plan as now reflected in the revised plan, relate to (i) the structure and governance of the trust applicable to the receipt and management of the financial proceeds from the various financial contributors to the revised plan, (ii) the allocation rules of the trust assets among talc claimants alleging different injuries, including the actual or potential North American talc subsidiaries\u2019 rights to insurance coverage and contractual indemnity, current and future potential settlement proceeds with third parties; and (iii) the detailed procedures applicable to the approval of the revised plan, reflecting in particular its alignment with the concurring chapter 11 process initiated in April 2021 by one of the previous owners of certain talc assets of North American talc subsidiaries (i.e the former North American mining group \u201cCyprus Mines\u201d) which is contributing to the revised plan.
The proposed revised plan is currently under review by the Bankruptcy Court for the approval of a new solicitation by the talc subsidiaries involved of claimants\u2019 votes on the revised plan. Subject to approval of the revised plan at the required 75% voting threshold, it will then undergo a confirmation procedure before the Bankruptcy Court to be followed by a final approval process before another competent federal court.
Under the terms and conditions of the settlement with the group as embedded in the plan and restated in the revised plan, the group\u2019s contribution consists of (i) a minimum cash payment of USD 75\u00a0million, (ii) the proceeds from the sale of the assets of the North American talc subsidiaries at a price of USD 223\u00a0million, and (iii) certain other components further outlined in the revised plan. These commitments primarily include certain insurance assets, financing of minor unsecured trade claims (USD 5\u00a0million) and certain excess administrative costs of the Chapter 11 process incurred by the talc subsidiaries involved up to a maximum of USD 15\u00a0million.
On the basis of the revised plan and the current state of the Chapter 11 process, at the date the group\u2019s 2023 financial results were approved, the group reviewed with the help of independent third-party experts and reiterated its prior estimate of the risk related to the resolution of the Chapter\u00a011 procedure and the forecast financial impact for the group. A provision of EUR\u00a0250\u00a0million was initially accrued in Imerys\u2019 2018 consolidated financial accounts, bearing in mind that the North American talc subsidiaries have been deconsolidated since February 13, 2019. At\u00a0December\u00a031,\u00a02023, the provision recognized in group\u2019s financial statements, which amounted to USD 115\u00a0million, i.e., EUR\u00a0104\u00a0million, was considered appropriate to cover the expected financial impact of the revised plan for the group.
Imerys\u2019 and Canyon\u2019s provisions to hedge product guarantees amount to EUR\u00a06\u00a0million and have a probable maturity ranging from 2024 to 2028.
Finally, the group (overwhelmingly Imerys) establishes provisions to hedge the environmental risks resulting from its industrial activity and provisions for the rehabilitation of mining sites at the end of their operating lifetimes. These provisions totaled EUR\u00a0287\u00a0million as of December\u00a031,\u00a02023 (EUR\u00a0261\u00a0million in 2022). The corresponding obligations are expected to mature between 2024 and 2028 for EUR\u00a079\u00a0million, between 2029 and 2038 for EUR\u00a099\u00a0million and as from 2039 for EUR\u00a0109\u00a0million.
Note 21Retirement benefits and other post-employment benefits
21.1\tDefined contribution plans
In this type of retirement plan, whose future level is not guaranteed to the beneficiaries, the employer commits to pay regular contributions to the third parties (retirement funds, insurance companies or financial institutions) on a mandatory basis (statutory or regulatory provisions) or an optional basis (supplementary retirement plan voluntarily provided by the company).
The amounts are paid during the year in which they are due. The total amount of contributions paid for defined contribution plans is EUR\u00a025\u00a0million in 2023 (EUR\u00a027\u00a0million in 2022). These plans are mostly granted to Imerys employees.
21.2\tDefined benefit plans
Characteristics of defined benefit plans
In this type of plan, the group guarantees to the beneficiaries the level of the benefit that will be paid in the future. The beneficiaries of these plans are employees who are acquiring entitlements in exchange for services rendered to the group (active beneficiaries), employees who are no longer acquiring entitlements in exchange for services rendered to the group and former employees outside the group (deferred beneficiaries), as well as\u00a0former retired employees (retired beneficiaries).
The valuation of retirement benefit obligations and other employee benefits is carried out by independent actuaries. These plans may be financed by\u00a0insurance companies (group insurance), retirement funds or independent entities. Two plans accounted for 68.0 % of the group\u2019s total commitment as of December\u00a031, 2023. These are the UK plan\u2013the Imerys UK Pension Scheme (Imerys UK) and the US plan\u2013the Imerys USA Retirement Growth Account Plan (Imerys USA).
The table below sets out their main characteristics:
Imerys UK | Imerys USA | |
Eligibility | ||
Hiring limit date | 12/31/2004 | 03/31/2010 |
Retirement age | 65 | 65 |
Description of the benefits | ||
Terms of payment | Annuity(1) | Capital(2) |
Revaluation based on the consumer price index | Yes | No |
End date of cumulated rights | 03/31/2015 | 12/31/2014 |
Regulatory framework | ||
Minimum employer funding obligation | Yes(3) | Yes(3) |
Minimum beneficiary contribution obligation | Yes | No |
Governance | ||
Trustees representing the employer | Yes | Yes |
Trustees representing beneficiaries | Yes | No |
Independent trustees | Yes | No |
Responsibility of trustees | ||
Definition of the investment strategy | Yes | Yes |
Negotiation of deficit refinancing with the employer | Yes | - |
Administrative management of benefit payments | Yes | Yes |
The duration of these two plans is 11 years for Imerys UK and 8 years for Imerys USA (respectively 13 years and 8 years as of December\u00a031, 2022).
Management of risks associated with employees benefits
Description of risks
The main issue related to the financial management of employee benefits is the control of the funding ratio of obligations, i.e., the ratio between the value of plan assets and the value of the obligations. The funding ratio of obligations may be deteriorated by a decorrelation between a change in value (generally negative) of plan assets and a change in value (generally positive) of obligations. The value of plan assets may be reduced by deteriorating the fair value of investments. The value of obligations may rise for all plans after a drop in discount rates or benefits paid as life annuities, either due to an increase in the inflation rates used to remeasure the obligations of certain plans, or due to an increase in the life expectancy of beneficiaries.
(1)\tAnnuity calculated based on number of years of service provided, annual salary on retirement and average of three last annual salaries
(2)\tPrincipal at a guaranteed interest rate (Cash Balance Plan)
(3)\tThe employer is obliged to fund each unit of service provided at 100% on the basis of a funding evaluation
Risk management
The strategy to control the obligation funding level consists firstly of optimizing the value of the plan assets. Investment strategies are therefore devised to deliver a steady return while also taking advantage of opportunities with limited or moderate risks levels. The choice of investments is specific to each plan and factors in the duration of the plan as well as minimum funding regulatory constraints.
Since 2011, Imerys has pursued a specific strategy to control the funding ratio of obligations in the UK in particular, which defines plan asset investments to match the obligation. The strategy, known as Liability Driven Investment (LDI), controls the funding ratio of the obligation by pegging cash inflows to cash outflows over the duration of the obligation. In practice, it involves structuring the portfolio of plan assets so that the cash inflows generated by the return on investments match the cash outflows generated by the payment of benefits. It hedges the risk of an increase in the obligation due to a drop in discount rates or an increase in inflation rates by covering a portion of the value of the regularly revised obligation.
Funding of employee benefits
The group funds the majority of employee benefits with investments unavailable to third parties in trusts or insurance contracts legally separate from the group. These investments, classified as plan assets, stood at EUR\u00a01,004\u00a0million as of December\u00a031, 2023 (EUR\u00a0940\u00a0million as of December\u00a031,\u00a02022). Imerys also has reimbursement rights, in other words investments held directly by the group, which came to EUR\u00a00\u00a0million as\u00a0of\u00a0December\u00a031, 2023 (EUR\u00a00\u00a0million as of December\u00a031, 2022). The obligation funding ratio therefore stood at 85.5% as of December\u00a031, 2023 (85.3% as of December\u00a031, 2022).
A provision of EUR\u00a0183\u00a0million was recognized as of December\u00a031, 2023 for the funded and unfunded plan deficit (EUR\u00a0172\u00a0million as of December\u00a031,\u00a02022), as the following table shows:
In EUR\u00a0million | 2023 | 2022 |
Obligations funded by plan assets | (1,019.5) | (969.4) |
Obligations funded by reimbursement rights | (0.3) | (0.5) |
Fair value of plan assets | 1,004.3 | 939.5 |
Restrictions on recognized assets | (13.3) | (10.9) |
Fair value of reimbursement rights | 0.2 | 0.2 |
Funding surplus (deficit)\u00a0 | (28.6) | (41.2) |
Unfunded obligations | (154.3) | (130.9) |
Assets/(provision) | (182.9) | (172.0) |
Of which: Non-current liabilities | (183.8) | (189.1) |
Non-current assets | 1.0 | 17.1 |
Fair value of plan assets
The assets held by the group to fund employee benefits generated real interest of EUR\u00a041\u00a0million in 2023 (EUR\u00a0- 333\u00a0million in 2022), as presented in the table below. In accordance with current regulations, only a normative share of this return was credited to profit or loss in 2023, amounting to EUR\u00a036\u00a0million (EUR\u00a022\u00a0million in 2022), calculated based on the discount rate used on the obligations. The surplus real return above the normative return was credited to shareholders\u2019 equity in the amount of EUR\u00a04\u00a0million in 2023 (EUR\u00a0- 355\u00a0million in 2022).
In EUR\u00a0million | 2023 | 2022 |
Balance as of January 1 | 939.5 | 1,282.3 |
Employer's contributions | 34.0 | 19.4 |
Participants' contributions | 6.5 | 1.3 |
Benefits paid | (66.4) | (74.5) |
Foreign currency translation adjustments | 14.0 | (23.3) |
Real return on assets | 40.5 | (333.0) |
Normative return (profit or loss) | 36.1 | 22.4 |
Adjustment to the real return (shareholders' equity)\u00a0 | 4.4 | (355.4) |
Changes in group structure/Business combinations | 17.5 | 74.8 |
Other movements | 18.7 | (7.4) |
Balance as of December 31 | 1,004.3 | 939.5 |
Distribution of plan assets
In % | 2023 | 2022 |
Shares | 17% | 12% |
Listed | 17% | 12% |
Unlisted | - | 0% |
Bonds | 57% | 68% |
Listed | 57% | 66% |
Unlisted | - | 2% |
Real estate | 2% | 2% |
Other | 24% | 19% |
Total | 100% | 100% |
Plan obligations \u2013 funded, unfunded and partially funded plans
In EUR\u00a0million | 2023 | 2022 |
Balance as of January 1 | 1,100.8 | 1,821.1 |
Current service costs for the period | 19.1 | 24.4 |
Interest expense | 45.4 | 26.0 |
Actuarial losses (gains) from: | 36.1 | (412.8) |
changes to demographic assumptions | (11.1) | 4.0 |
changes to financial assumptions | 30.7 | (448.0) |
experience adjustments | 16.5 | 31.3 |
Benefits paid | (72.4) | (83.7) |
Changes in group structure/Business combinations | 6.5 | 45.5 |
Foreign currency translation adjustments | 12.0 | (19.7) |
Other movements | 26.6 | (300.0) |
Balance as of December 31 | 1,174.1 | 1,100.8 |
Amounts relating to the plan recognized in comprehensive income
In EUR\u00a0million | 2023 | 2022 |
Current service costs for the period | 19.1 | 24.4 |
Interest expense\u00a0 | 45.4 | 26.0 |
Normative return on the assets of defined benefit plans | (36.1) | (22.4) |
Amounts recognized in profit or loss | 28.4 | 28.1 |
Surplus real return on assets above their normative return | (4.4) | 355.4 |
Actuarial losses (gains) from post-employment benefits due to: | 36.1 | (412.8) |
changes to demographic assumptions | (11.1) | 4.0 |
changes to financial assumptions | 30.7 | (448.0) |
experience adjustments | 16.5 | 31.3 |
Restrictions on recognized assets | 2.3 | 10.9 |
Amounts recognized in shareholders' equity - (credit)/debit | 34.0 | (46.5) |
Total | 62.4 | (18.4) |
Changes in the statement of financial position
The change in the amounts recognized in the statement of financial position is explained in the following table:
In EUR\u00a0million | 2023 | 2022 |
Amounts recognized as of January 1 | 172.0 | 532.6 |
Net expense recognized in profit or loss | 28.4 | 28.1 |
Contributions paid | (46.5) | (29.9) |
Actuarial (gains)/losses and ceiling on assets recognized in shareholders' equity | 34.0 | (46.5) |
Changes in group structure/Business combinations/Foreign currency translation adjustments and other | (5.0) | (312.3) |
Amounts recognized as of December 31 | 182.9 | 172.0 |
Of which: Holding | 1.9 | 1.4 |
Imerys | 159.6 | 144.1 |
Webhelp | - | 14.4 |
Canyon | 0.2 | 0.2 |
Affidea | 13.1 | 11.1 |
Sanoptis | 7.6 | 1.5 |
GBL Capital and SIM | 0.3 | (0.7) |
During the financial year 2023, a net debit amount of EUR\u00a028\u00a0million related to actuarial gains and losses and the ceiling on recognized assets was charged directly to comprehensive income, i.e., EUR\u00a034\u00a0million gross less EUR\u00a06\u00a0million in related taxes (a net credit amount of EUR\u00a039\u00a0million as of December\u00a031, 2022, i.e., EUR\u00a046\u00a0million gross less EUR\u00a08\u00a0million in related taxes).
Estimates
The actuarial assumptions used to value the defined benefit plans are presented below:
In % | 2023 | 2022 |
Discount rate | 1.5% - 27.0% | 0.2% - 12.0% |
Average salary increase rate | 0.8% - 24.0% | 2.0% - 36.0% |
Inflation rate | 1.5% - 6.0% | 1.2% - 36.0% |
More specifically for the two monetary zones where the largest commitments are located (the United Kingdom and the United States), the actuarial assumptions were as follows in 2023:
In % | United Kingdom | United States |
Discount rate | 4.4% | 4.5% |
Average salary increase rate | 3.0% | 3.0% |
Inflation rate | 3.1% | 3.1% |
Among these estimates, it is the discount rate that has the most significant impact on the group\u2019s financial statements.
The following table presents the impact of a reasonably estimated change in discount rates following a possible decrease (lower case) or increase (higher case) in the assumption applied to the financial statements as of December\u00a031, 2023 (actual 2023). The impact of these changes is measured on three aggregates (obligation, net interest and current service cost) in the two monetary zones in which the most significant obligations have been undertaken (the United Kingdom and the United States). The reasonably estimated change in discount rates has been set at 50 basis points, based on the weighted average change in discount rates in the United Kingdom and the United States over the last five years.
In EUR\u00a0million | Low Simulation | Central/Base scenario | High Simulation |
United Kingdom | |||
Discount rate | 3.9% | 4.4% | 4.9% |
Obligation at the reporting date | 637.9 | 605.1 | 575.1 |
Net interest in 2024 profit or loss(1)\u00a0 | (3.7) | (2.8) | (1.6) |
Current service costs in 2024 profit or loss(2) | - | - | - |
United States | |||
Discount rate | 4.0% | 4.5% | 5.0% |
Obligation at the reporting date | 201.3 | 193.8 | 186.8 |
Net interest in 2024 profit or loss(1) | (2.1) | (2.1) | (1.9) |
Current service costs in 2024 profit or loss(2) | (0.6) | (0.5) | (0.5) |
At constant scope of consolidation and all other things being equal, the amount of the contributions to the various defined retirement benefit plans is estimated at EUR\u00a027\u00a0million for 2024.
(1)\tAccretion of obligation, net of normative yield on assets
(2)\tPlan closed-frozen as of April 1, 2015
Note 22Other non-current liabilities
In EUR\u00a0million | 2023 | 2022 |
Non-current financial liabilities | 423.1 | 1,638.0 |
Debt on minority shareholders | 367.8 | 1,512.6 |
Derivative financial instruments held for trading | 9.7 | 88.7 |
Derivative financial instruments - Hedging | 6.3 | 4.1 |
Other | 39.3 | 32.6 |
Non-current non-financial liabilities | 49.3 | 486.8 |
Debt on minority shareholders | 2.0 | 445.3 |
Liabilities related to cash-settled share-based payments | 4.9 | 8.5 |
Other | 42.4 | 33.0 |
Total | 472.4 | 2,124.8 |
Of which: Holding | 7.2 | 45.4 |
Imerys | 18.7 | 24.1 |
Webhelp | - | 1,732.1 |
Canyon | - | - |
Affidea | 56.2 | 28.4 |
Sanoptis | 355.5 | 262.2 |
GBL Capital and SIM | 34.8 | 32.6 |
As of December\u00a031, 2023, the debt on minority shareholders is mainly related to Sanoptis (EUR\u00a0312\u00a0million as of December\u00a031, 2023 and EUR\u00a0250\u00a0million as of December\u00a031, 2022). This represents the discounted value as at the reporting date based on the expected individual exercise dates of the put options of the minority shareholders.
The Sanoptis business model specifies, among other things, that the lead doctors in their clinics do not leave the company as shareholders or doctors in the event of a sale of clinics to Sanoptis. The remaining shares held by the doctors are subject to specific minimum holding periods. Call and put options on such shares are negotiated between Sanoptis and the sellers at the time of acquisitions, so that after expiry of the holding periods and upon fulfilment of certain contractually agreed conditions, the remaining shares of the minority shareholders can be sold to Sanoptis by executing the put options at purchase prices determined at the time of the original transactions. The sales price is generally determined based on the average EBITDA of a specific period under review for the target company and an individually agreed multiple on this.
As of December\u00a031, 2022, the debt on minority shareholders was mainly related to Webhelp. The 2 founders and some members of the staff of the Webhelp group were minority shareholders of Webhelp and hold put options towards Sapiens S\u00e0rl (sub-subsidiary of GBL and dedicated investment vehicle of the Webhelp group) on all their shares, which could be exercised at certain predefined periods. Consequently, a debt on minority shareholders was recognized on the balance sheet for a total amount, as of December\u00a031, 2022, of EUR\u00a01,675\u00a0million, out of which:
the debt towards the founders (EUR\u00a01,113\u00a0million as of December 31, 2022, included under \u201cNon-current financial liabilities\u201d), with changes in value recorded under \u201cFinancial income and expenses from operating activities\u201d ;
the debt towards members of the staff (EUR\u00a0563\u00a0million as of December 31, 2022, included under \u201cNon-current financial liabilities\u201d for a part and \u201cNon-current non-financial liabilities\u201d for another part), with changes in value recorded under \u201cOther operating income and expenses from operating activities\u201d.
As a consequence of the sale of Webhelp as of September 25, 2023, the debt towards the founders and the members of the staff was extinguished, without any impact on GBL\u2019s cash, at the closing of the transaction. The impact of the reversal was included in the gain on deconsolidation of Webhelp.
Note 23Other current liabilities
In EUR\u00a0million | 2023 | 2022 |
Current financial liabilities | 122.6 | 257.0 |
Derivative financial instruments held for trading | 5.1 | 69.8 |
Derivative financial instruments - Hedging | 41.1 | 113.5 |
Other | 76.3 | 73.7 |
Current non-financial liabilities | 606.9 | 1,006.1 |
Social security liabilities | 203.0 | 344.9 |
Tax liabilities other than those related to income tax | 63.1 | 168.6 |
Other | 340.8 | 492.6 |
Total | 729.4 | 1,263.1 |
Of which: Holding | 76.0 | 153.6 |
Imerys | 396.8 | 373.3 |
Webhelp | - | 518.0 |
Canyon | 27.0 | 33.2 |
Affidea | 152.9 | 129.5 |
Sanoptis | 44.8 | 26.1 |
GBL Capital and SIM | 31.9 | 29.4 |
The other current non-financial liabilities mainly include a debt related to fixed assets at Imerys\u2019 level for EUR\u00a0109\u00a0million.
Note 22Other non-current liabilities
In EUR\u00a0million | 2023 | 2022 |
Non-current financial liabilities | 423.1 | 1,638.0 |
Debt on minority shareholders | 367.8 | 1,512.6 |
Derivative financial instruments held for trading | 9.7 | 88.7 |
Derivative financial instruments - Hedging | 6.3 | 4.1 |
Other | 39.3 | 32.6 |
Non-current non-financial liabilities | 49.3 | 486.8 |
Debt on minority shareholders | 2.0 | 445.3 |
Liabilities related to cash-settled share-based payments | 4.9 | 8.5 |
Other | 42.4 | 33.0 |
Total | 472.4 | 2,124.8 |
Of which: Holding | 7.2 | 45.4 |
Imerys | 18.7 | 24.1 |
Webhelp | - | 1,732.1 |
Canyon | - | - |
Affidea | 56.2 | 28.4 |
Sanoptis | 355.5 | 262.2 |
GBL Capital and SIM | 34.8 | 32.6 |
As of December\u00a031, 2023, the debt on minority shareholders is mainly related to Sanoptis (EUR\u00a0312\u00a0million as of December\u00a031, 2023 and EUR\u00a0250\u00a0million as of December\u00a031, 2022). This represents the discounted value as at the reporting date based on the expected individual exercise dates of the put options of the minority shareholders.
The Sanoptis business model specifies, among other things, that the lead doctors in their clinics do not leave the company as shareholders or doctors in the event of a sale of clinics to Sanoptis. The remaining shares held by the doctors are subject to specific minimum holding periods. Call and put options on such shares are negotiated between Sanoptis and the sellers at the time of acquisitions, so that after expiry of the holding periods and upon fulfilment of certain contractually agreed conditions, the remaining shares of the minority shareholders can be sold to Sanoptis by executing the put options at purchase prices determined at the time of the original transactions. The sales price is generally determined based on the average EBITDA of a specific period under review for the target company and an individually agreed multiple on this.
As of December\u00a031, 2022, the debt on minority shareholders was mainly related to Webhelp. The 2 founders and some members of the staff of the Webhelp group were minority shareholders of Webhelp and hold put options towards Sapiens S\u00e0rl (sub-subsidiary of GBL and dedicated investment vehicle of the Webhelp group) on all their shares, which could be exercised at certain predefined periods. Consequently, a debt on minority shareholders was recognized on the balance sheet for a total amount, as of December\u00a031, 2022, of EUR\u00a01,675\u00a0million, out of which:
the debt towards the founders (EUR\u00a01,113\u00a0million as of December 31, 2022, included under \u201cNon-current financial liabilities\u201d), with changes in value recorded under \u201cFinancial income and expenses from operating activities\u201d ;
the debt towards members of the staff (EUR\u00a0563\u00a0million as of December 31, 2022, included under \u201cNon-current financial liabilities\u201d for a part and \u201cNon-current non-financial liabilities\u201d for another part), with changes in value recorded under \u201cOther operating income and expenses from operating activities\u201d.
As a consequence of the sale of Webhelp as of September 25, 2023, the debt towards the founders and the members of the staff was extinguished, without any impact on GBL\u2019s cash, at the closing of the transaction. The impact of the reversal was included in the gain on deconsolidation of Webhelp.
Note 22Other non-current liabilities
In EUR\u00a0million | 2023 | 2022 |
Non-current financial liabilities | 423.1 | 1,638.0 |
Debt on minority shareholders | 367.8 | 1,512.6 |
Derivative financial instruments held for trading | 9.7 | 88.7 |
Derivative financial instruments - Hedging | 6.3 | 4.1 |
Other | 39.3 | 32.6 |
Non-current non-financial liabilities | 49.3 | 486.8 |
Debt on minority shareholders | 2.0 | 445.3 |
Liabilities related to cash-settled share-based payments | 4.9 | 8.5 |
Other | 42.4 | 33.0 |
Total | 472.4 | 2,124.8 |
Of which: Holding | 7.2 | 45.4 |
Imerys | 18.7 | 24.1 |
Webhelp | - | 1,732.1 |
Canyon | - | - |
Affidea | 56.2 | 28.4 |
Sanoptis | 355.5 | 262.2 |
GBL Capital and SIM | 34.8 | 32.6 |
As of December\u00a031, 2023, the debt on minority shareholders is mainly related to Sanoptis (EUR\u00a0312\u00a0million as of December\u00a031, 2023 and EUR\u00a0250\u00a0million as of December\u00a031, 2022). This represents the discounted value as at the reporting date based on the expected individual exercise dates of the put options of the minority shareholders.
The Sanoptis business model specifies, among other things, that the lead doctors in their clinics do not leave the company as shareholders or doctors in the event of a sale of clinics to Sanoptis. The remaining shares held by the doctors are subject to specific minimum holding periods. Call and put options on such shares are negotiated between Sanoptis and the sellers at the time of acquisitions, so that after expiry of the holding periods and upon fulfilment of certain contractually agreed conditions, the remaining shares of the minority shareholders can be sold to Sanoptis by executing the put options at purchase prices determined at the time of the original transactions. The sales price is generally determined based on the average EBITDA of a specific period under review for the target company and an individually agreed multiple on this.
As of December\u00a031, 2022, the debt on minority shareholders was mainly related to Webhelp. The 2 founders and some members of the staff of the Webhelp group were minority shareholders of Webhelp and hold put options towards Sapiens S\u00e0rl (sub-subsidiary of GBL and dedicated investment vehicle of the Webhelp group) on all their shares, which could be exercised at certain predefined periods. Consequently, a debt on minority shareholders was recognized on the balance sheet for a total amount, as of December\u00a031, 2022, of EUR\u00a01,675\u00a0million, out of which:
the debt towards the founders (EUR\u00a01,113\u00a0million as of December 31, 2022, included under \u201cNon-current financial liabilities\u201d), with changes in value recorded under \u201cFinancial income and expenses from operating activities\u201d ;
the debt towards members of the staff (EUR\u00a0563\u00a0million as of December 31, 2022, included under \u201cNon-current financial liabilities\u201d for a part and \u201cNon-current non-financial liabilities\u201d for another part), with changes in value recorded under \u201cOther operating income and expenses from operating activities\u201d.
As a consequence of the sale of Webhelp as of September 25, 2023, the debt towards the founders and the members of the staff was extinguished, without any impact on GBL\u2019s cash, at the closing of the transaction. The impact of the reversal was included in the gain on deconsolidation of Webhelp.
Note 23Other current liabilities
In EUR\u00a0million | 2023 | 2022 |
Current financial liabilities | 122.6 | 257.0 |
Derivative financial instruments held for trading | 5.1 | 69.8 |
Derivative financial instruments - Hedging | 41.1 | 113.5 |
Other | 76.3 | 73.7 |
Current non-financial liabilities | 606.9 | 1,006.1 |
Social security liabilities | 203.0 | 344.9 |
Tax liabilities other than those related to income tax | 63.1 | 168.6 |
Other | 340.8 | 492.6 |
Total | 729.4 | 1,263.1 |
Of which: Holding | 76.0 | 153.6 |
Imerys | 396.8 | 373.3 |
Webhelp | - | 518.0 |
Canyon | 27.0 | 33.2 |
Affidea | 152.9 | 129.5 |
Sanoptis | 44.8 | 26.1 |
GBL Capital and SIM | 31.9 | 29.4 |
The other current non-financial liabilities mainly include a debt related to fixed assets at Imerys\u2019 level for EUR\u00a0109\u00a0million.
Note 23Other current liabilities
In EUR\u00a0million | 2023 | 2022 |
Current financial liabilities | 122.6 | 257.0 |
Derivative financial instruments held for trading | 5.1 | 69.8 |
Derivative financial instruments - Hedging | 41.1 | 113.5 |
Other | 76.3 | 73.7 |
Current non-financial liabilities | 606.9 | 1,006.1 |
Social security liabilities | 203.0 | 344.9 |
Tax liabilities other than those related to income tax | 63.1 | 168.6 |
Other | 340.8 | 492.6 |
Total | 729.4 | 1,263.1 |
Of which: Holding | 76.0 | 153.6 |
Imerys | 396.8 | 373.3 |
Webhelp | - | 518.0 |
Canyon | 27.0 | 33.2 |
Affidea | 152.9 | 129.5 |
Sanoptis | 44.8 | 26.1 |
GBL Capital and SIM | 31.9 | 29.4 |
The other current non-financial liabilities mainly include a debt related to fixed assets at Imerys\u2019 level for EUR\u00a0109\u00a0million.
Note 26Derivative financial instruments
26.1 Fair values of short-term and long-term derivative financial instruments
The fair values of the derivative financial instruments held as of December\u00a031, 2023 and 2022 are shown in the following table:
In EUR\u00a0million | 2023 | 2022 |
Assets | 66.4 | 62.5 |
Of which non-current assets | 27.2 | 9.6 |
Of which current assets | 39.2 | 52.9 |
Composed of: | ||
Forwards, futures and currency swaps - Derivative instruments held for trading | 1.1 | 17.3 |
Forwards, futures and currency swaps - Hedging | 12.4 | 38.7 |
Interest rate hedging instruments - Derivative instruments held for trading | 24.4 | - |
Futures and commodities options - Hedging | 1.5 | 6.5 |
Call and put options on shares - Derivative instruments held for trading | 27.0 | - |
Liabilities | (62.2) | (276.1) |
Of which non-current liabilities | (16.0) | (92.8) |
Of which current liabilities | (46.2) | (183.3) |
Composed of: | - | - |
Forwards, futures and currency swaps - Derivative instruments held for trading | (2.5) | (0.3) |
Forwards, futures and currency swaps - Hedging | (2.1) | (15.0) |
Interest rate hedging instruments - Derivative instruments held for trading | (7.4) | - |
Interest rate hedging instruments - Hedging | (17.5) | - |
Futures and commodities options - Hedging | (27.8) | (25.9) |
Forwards on shares - Hedging | - | (76.7) |
Call and put options on shares - Derivative instruments held for trading | (4.9) | (158.2) |
Net position | 4.2 | (213.7) |
Forwards, futures and currency swaps | 8.9 | 40.7 |
Interest rate hedging instruments | (0.5) | - |
Forwards on shares | - | (76.7) |
Futures and commodities options | (26.3) | (19.4) |
Call and put options on shares | 22.1 | (158.2) |
The following table shows the maturity of the cash flow hedge derivatives for the reporting periods ended December\u00a031, 2023 and 2022:
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 10.3 | 10.1 | 0.2 | - |
Interest rate hedging instruments | (17.5) | (11.5) | (6.0) | - |
Futures and commodities options | (26.3) | (26.0) | (0.3) | - |
Total as of December 31, 2023 | (33.5) | (27.4) | (6.1) | - |
Forwards, futures and currency swaps | 23.7 | 18.3 | 5.4 | - |
Futures and commodities options | (19.4) | (19.4) | - | - |
Forwards on shares | (76.7) | (76.7) | - | - |
Total as of December 31, 2022 | (72.4) | (77.8) | 5.4 | - |
26.2Change in fair value of derivative instruments
The following table shows the changes in the fair value of hedging derivative instruments between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative instruments - hedging | ||
As of January 1 \u2013 net derivatives position\u00a0 | (72.4) | 73.6 |
Increase (decrease) recognized in profit or loss | (20.9) | (1.7) |
Increase (decrease) recognized in shareholders' equity | 54.8 | (154.7) |
Changes in group structure/Business combinations/Other | 5.0 | 10.4 |
As of December 31 \u2013 net derivatives position | (33.5) | (72.4) |
The following table shows the changes in the fair value of derivative instruments held for trading between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative financial instruments held for trading | ||
As of January 1 \u2013 net derivatives position\u00a0 | (141.2) | (206.2) |
Increase (decrease) recognized in profit or loss | 105.0 | 98.7 |
Increase (decrease) recognized in shareholders' equity | - | - |
Changes in group structure/Business combinations/Other | 73.9 | (33.6) |
As of December 31 \u2013 net derivatives position | 37.7 | (141.2) |
26.3\tNotional underlying amounts of derivative financial instruments
In EUR\u00a0million | 2023 | 2022 |
Assets\u00a0 | 1,701.9 | 2,140.4 |
Composed of: | ||
Forwards, futures and currency swaps | 616.1 | 2,063.7 |
Interest rate hedging instruments | 978.4 | - |
Futures and commodities options | 80.4 | 76.7 |
Call and put options on shares | 27.0 | - |
Liabilities | 3,548.2 | 4,043.6 |
Composed of: | ||
Forwards, futures and currency swaps | 1,292.9 | 1,715.9 |
Interest rate hedging instruments | 1,070.6 | - |
Forwards on shares | - | 537.6 |
Futures and commodities options | 24.8 | 21.7 |
Call and put options on shares | 1,159.9 | 1,768.4 |
26.4\tMaturity of notional underlying amounts of derivative financial instruments
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 1,909.0 | 1,898.4 | 10.6 | - |
Interest rate hedging instruments | 2,048.9 | 1,428.9 | 620.0 | - |
Futures and commodities options | 105.2 | 101.2 | 4.0 | - |
Call and put options on shares | 1,186.9 | 159.9 | 1,000.0 | 27.0 |
Total as of December 31, 2023 | 5,250.0 | 3,588.4 | 1,634.6 | 27.0 |
Forwards, futures and currency swaps | 3,779.6 | 3,067.9 | 107.1 | 604.6 |
Forwards on shares | 537.6 | 537.6 | - | - |
Futures and commodities options | 98.4 | 98.4 | - | - |
Call and put options on shares | 1,768.4 | 689.6 | 1,078.8 | - |
Total as of December 31, 2022 | 6,184.0 | 4,393.5 | 1,185.9 | 604.6 |
Note 29Financial instruments
Fair value
The fair value of a financial instrument is the amount that would be received on selling the asset or paid on transferring a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is a presumption that an entity is a going concern without any intention or need to liquidate, to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Fair value is not, therefore, the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distressed sale.
To reflect the importance of inputs used when measuring at fair value, the group classifies these valuations according to a hierarchy composed of\u00a0the\u00a0following levels:
level 1: listed prices (non-adjusted) on active markets for identical assets or liabilities;
level 2: inputs, other than the listed prices included in level 1, that are observable for the asset or liability concerned, either directly (i.e., prices) or\u00a0indirectly (i.e., derived from prices); and
level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).
The group\u2019s financial instruments very largely belong to classification levels 1 and 2. The financial assets measured at level 3 fair value are not significant compared to the other asset classes (15.07% as of December\u00a031, 2023 and 12.93% as of December\u00a031, 2022).
Measurement techniques
The objective of using a valuation method is to establish what the transaction price would have been on the measurement date in an arm\u2019s-length exchange and motivated by normal business considerations.
Techniques used to measure the fair value of level 2 financial instruments:
Exchangeable or convertible bonds
The exchangeable or convertible bonds issued by the group are considered to be hybrid instruments, i.e., instruments including a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds, taking into account the risk associated with GBL (credit spread). At each reporting date, the value of the bond component is recalculated, taking into account the change in the risk-free rate and GBL\u2019s credit spread, and the difference in relation to the price of the exchangeable or convertible bond observed on the Frankfurt Stock Exchange\u2019s Euro MTF market is taken as the new value of the derivative component. The change in this value in relation to the previous reporting date is recognized in profit or loss.
Other level 2 financial instruments
The fair value of derivative instruments not associated with exchangeable or convertible bonds is taken from a model that uses observable data, in other words the quotes on the reporting date provided by third-parties operating on the financial markets. These valuations are adjusted for the counterparties\u2019 credit risk and the credit risk specific to Imerys or GBL. Accordingly, if the market value of the derivative is positive (derivative asset), its fair value incorporates the likelihood of the counterparty defaulting (Credit Value Adjustment or CVA). If the derivative\u2019s market value is negative (derivative liability), its fair value factors in the likelihood of Imerys or GBL defaulting (Debit Value Adjustment or DVA). These adjustments are measured based on the spreads of the bonds in circulation on the secondary market, as issued by Imerys, GBL and their counterparts.
Techniques used to measure the fair value of level 3 financial instruments:
Equity investments
The investments in unlisted companies are valued internally at their fair value on a quarterly basis, based on a specific valuation method or a combination of valuation methods, the specific valuations the method of combination of methods being consistent from an closing to another. Methodologies are aligned across the portfolio, though with different weights for respective methods depending on the company. Valuation are approved by the Valuation Committee of GBL and reviewed by an external advisor. Changes in the fair value of these investments are recognized in the revaluation reserves.
Investments in funds or co-investments owned by GBL Capital are revalued at their fair value, as notably determined by the managers of the funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss).
In accordance with the recommendations of the International Private Equity and Venture Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d), recent\u00a0investment, funds or co-investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of fair\u00a0value.
Analysis of financial instruments by category \u2013 balance sheets
The category, according to IFRS 9, uses the following abbreviations:
FATOCI: Financial Assets measured at fair value through Other Comprehensive Income
FATPL: Financial Assets measured at fair value through Profit or Loss
FLTPL: Financial Liabilities measured at fair value through Profit or Loss
FAAC: Financial Assets measured at Amortized Cost
FLAC: Financial Liabilities measured at Amortized Cost
HeAc: Hedge Accounting
The tables below show a comparison of the book value and the fair value of the financial instruments as of December\u00a031, 2023 and as of December\u00a031,\u00a02022, as well as the fair value hierarchy. There were no significant transfers between the different levels between 2023 and 2022.
As of December 31, 2023
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,013.1 | 10,013.1 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 287.2 | 287.2 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 112.4 | 112.4 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 2,192.0 | 2,192.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 0.2 | 0.2 | Level 2 |
Derivative instruments - Other | FATPL | 27.0 | 27.0 | Level 2 |
Other financial assets | FAAC | 573.7 | 573.7 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 600.6 | 600.6 | Level 2 |
Trading financial assets | FATPL | 1,385.6 | 1,385.6 | Level 1 |
Cash and cash equivalents | FAAC | 1,198.0 | 1,198.0 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 13.7 | 13.7 | Level 2 |
Derivative instruments - Other | FATPL | 25.5 | 25.5 | Level 2 |
Other financial assets | FAAC | 21.1 | 21.1 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 7,177.2 | 6,979.8 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 6.3 | 6.3 | Level 2 |
Derivative instruments - Other | FLTPL | 9.7 | 9.7 | Level 2 |
Other non current liabilities | FLAC | 407.1 | 407.1 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,173.7 | 1,173.7 | Level 2 |
Trade payables | FLAC | 571.5 | 571.5 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 41.1 | 41.1 | Level 2 |
Derivative instruments - Other | FLTPL | 5.1 | 5.1 | Level 2 |
Other current liabilities | FLAC | 76.3 | 76.3 | Level 2 |
As of December 31, 2022
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,837.2 | 10,837.2 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 273.0 | 273.0 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 127.3 | 127.3 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 1,927.0 | 1,927.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 9.6 | 9.6 | Level 2 |
Other financial assets | FAAC | 66.1 | 66.1 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 1,108.7 | 1,108.7 | Level 2 |
Trading financial assets | FATPL | 870.0 | 870.0 | Level 1 |
Cash and cash equivalents | FAAC | 1,768.3 | 1,768.3 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 35.5 | 35.5 | Level 2 |
Derivative instruments - Other | FATPL | 17.4 | 17.4 | Level 2 |
Other financial assets | FAAC | 38.0 | 38.0 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 8,714.7 | 8,379.3 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 4.1 | 4.1 | Level 2 |
Derivative instruments - Other | FLTPL | 88.7 | 88.7 | Level 2 |
Other non current liabilities | FLAC | 1,545.2 | 1,545.2 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,654.6 | 1,675.9 | Level 2 |
Trade payables | FLAC | 857.4 | 857.4 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 113.5 | 113.5 | Level 2 |
Derivative instruments - Other | FLTPL | 69.8 | 69.8 | Level 2 |
Other current liabilities | FLAC | 73.7 | 73.7 | Level 2 |
Analysis of financial instruments by category \u2013 income statements
The tables hereafter present the income and expenses before income taxes recognized in the income statement by categories of financial instruments. These tables analyze the income and expense lines containing financial instruments according to categories presented in columns. These distinguish, on the one hand, the categories applied by default to any item excluding hedge accounting and, on the other hand, the categories applied to any item falling within the scope of hedge accounting.
The IFRS 9 categories of amortized cost and fair value through profit or loss apply to the majority of non-hedge accounting items. Hedge accounting items are classified according to their fair value or cash flow hedging qualifications, distinguishing the values of hedged items and hedging instruments in columns and the types of risks hedged in rows. In addition, in order to ensure reconciliation between IFRS 9 classes and financial statements, this table includes a column containing the following non-IFRS 9 items: share-based payments (IFRS 2), mining assets (IFRS 6), inventories (IAS 2), income tax assets and liabilities (IAS 12), property, plant and equipment (IAS 16), finance lease liabilities (IFRS 16), defined benefit and short-term employee benefits assets and liabilities (IAS 19), grants (IAS\u00a020), provisions (IAS 37), intangible assets and prepaid expenses (IAS 38), stripping assets (IFRIC 20) and duties and taxes (IFRIC 21). The logic of classification of financial instruments in assets and liabilities is applied in transversally to their changes in income statement. For example, revenue is included in the amortized cost category, as its counterparties in trade receivables or cash and cash equivalents fall under this category on the asset\u00a0side.
2023
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 286.1 | - | - | - | - | - | 286.1 |
Other operating income (expenses) from investing activities | (62.5) | - | - | - | - | - | - | - | (62.5) |
Financial income (expenses) from investing activities | 189.7 | 91.3 | - | - | - | - | - | - | 280.9 |
Of which: Financial income | 303.7 | 93.9 | - | - | - | - | - | - | 397.6 |
Financial expenses | (114.0) | (2.6) | - | - | - | - | - | - | (116.7) |
Profit (loss) from investing activities - continuing operations | 127.1 | 91.3 | 286.1 | - | - | - | - | - | 504.5 |
Turnover | 6,137.1 | - | - | - | - | - | - | 0.2 | 6,137.3 |
Raw materials and consumables | (1,950.6) | - | - | (107.5) | - | - | - | (52.6) | (2,110.7) |
Other operating income (expenses) from operating activities | (1,471.4) | - | - | 10.2 | - | - | - | - | (1,461.2) |
Financial income (expenses) from operating activities | (211.7) | 0.4 | - | (17.1) | - | - | - | - | (228.4) |
Of which: Financial income | 83.1 | 0.4 | - | - | - | - | - | - | 83.5 |
Financial expenses | (294.8) | - | - | (17.1) | - | - | - | - | (311.9) |
Profit (loss) from consolidated operating activities - continuing operations | 2,503.3 | 0.4 | - | (114.4) | - | - | - | (52.4) | 2,336.9 |
2022
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 322.3 | - | - | - | - | - | 322.3 |
Other operating income (expenses) from investing activities | (74.3) | - | - | - | - | - | - | - | (74.3) |
Financial income (expenses) from investing activities | (490.0) | 94.6 | - | - | - | - | - | - | (395.4) |
Of which: Financial income | 168.7 | 119.0 | - | - | - | - | - | - | 287.7 |
Financial expenses | (658.7) | (24.4) | - | - | - | - | - | - | (683.1) |
Profit (loss) from investing activities - continuing operations | (564.3) | 94.6 | 322.3 | - | - | - | - | - | (147.4) |
Turnover | 5,623.4 | - | - | - | - | - | - | (0.1) | 5,623.3 |
Raw materials and consumables | (2,264.5) | - | - | 199.9 | - | - | - | 100.4 | (1,964.2) |
Other operating income (expenses) from operating activities | (1,548.7) | - | - | 18.1 | - | - | - | - | (1,530.6) |
Financial income (expenses) from operating activities | (362.9) | 5.8 | - | (11.0) | - | - | - | - | (368.1) |
Of which: Financial income | 36.9 | 5.8 | - | - | - | - | - | - | 42.7 |
Financial expenses | (399.9) | - | - | (11.0) | - | - | - | - | (410.9) |
Profit (loss) from consolidated operating activities - continuing operations | 1,447.3 | 5.8 | - | 207.0 | - | - | - | 100.3 | 1,760.4 |
Note 23Other current liabilities
In EUR\u00a0million | 2023 | 2022 |
Current financial liabilities | 122.6 | 257.0 |
Derivative financial instruments held for trading | 5.1 | 69.8 |
Derivative financial instruments - Hedging | 41.1 | 113.5 |
Other | 76.3 | 73.7 |
Current non-financial liabilities | 606.9 | 1,006.1 |
Social security liabilities | 203.0 | 344.9 |
Tax liabilities other than those related to income tax | 63.1 | 168.6 |
Other | 340.8 | 492.6 |
Total | 729.4 | 1,263.1 |
Of which: Holding | 76.0 | 153.6 |
Imerys | 396.8 | 373.3 |
Webhelp | - | 518.0 |
Canyon | 27.0 | 33.2 |
Affidea | 152.9 | 129.5 |
Sanoptis | 44.8 | 26.1 |
GBL Capital and SIM | 31.9 | 29.4 |
The other current non-financial liabilities mainly include a debt related to fixed assets at Imerys\u2019 level for EUR\u00a0109\u00a0million.
Note 24Assets and liabilities associated with assets held for sale and discontinued operations
Imerys
Imerys has entered into exclusive negotiations with the Mytilineos Group to divest its bauxite production business in Greece, with an agreement signed on September 4, 2023, for an enterprise value of EUR\u00a010\u00a0million. The assets involved in this transaction, as well as their related liabilities, have been classified as assets and liabilities held for sale and depreciation has ceased to be recognized as from this date.
Contributions from operations have been presented under separate headings in the consolidated balance sheet, and are shown in the table below:
In EUR\u00a0million | December 31, 2023 |
Assets held for sale | 38.5 |
Non-current assets\u00a0 | 23.4 |
Current assets | 15.1 |
Liabilities associated with assets held for sale | 26.0 |
Non-current liabilities\u00a0 | 16.1 |
Current liabilities\u00a0 | 9.9 |
Finally, in September 2022, Imerys\u2019 Performance Minerals business line received an offer to purchase a set of mining and industrial assets serving the paper market in America, Europe and Asia. The assets concerned by this transaction and the related liabilities were designated as assets and liabilities held for sale as from that date, and depreciation ceased to be recognized. At December\u00a031, 2022, the EUR\u00a0110\u00a0million share of Performance Minerals goodwill allocated to this activity had been written down by EUR\u00a0108\u00a0million. In the first half of 2023, an additional impairment loss of EUR\u00a010\u00a0million net of tax was recognized on goodwill and depreciable assets. In the second half of 2023, as disposal had become highly unlikely, the assets involved in this transaction and the related liabilities ceased to be presented as assets and liabilities held for sale. Unrecognized depreciation since September 2022 has been recognized in the income statement in the amount of EUR\u00a016\u00a0million. In addition, the share of the impairment loss on depreciable assets recognized in June was reversed, amounting to EUR\u00a08\u00a0million, net of tax.
GBL Capital
AMB III has entered into an agreement in December\u00a02023 with Paul-Emmanuel and Roel Vanreusel who, after a period of transformational growth for Beltaste-Vanreusel during its partnership with Apheon, will acquire 100% of the company\u2019s shares. The company is a major producer of frozen snacks in Belgium and the Netherlands. The transaction was finalized in January\u00a02024. The table below shows the balance sheet contributions of this company:
In EUR\u00a0million | December 31, 2023 |
Assets held for sale | 134.7 |
Non-current assets\u00a0 | 109.5 |
Current assets | 25.1 |
Liabilities associated with assets held for sale | 65.8 |
Non-current liabilities\u00a0 | 48.4 |
Current liabilities\u00a0 | 17.5 |
Note 24Assets and liabilities associated with assets held for sale and discontinued operations
Imerys
Imerys has entered into exclusive negotiations with the Mytilineos Group to divest its bauxite production business in Greece, with an agreement signed on September 4, 2023, for an enterprise value of EUR\u00a010\u00a0million. The assets involved in this transaction, as well as their related liabilities, have been classified as assets and liabilities held for sale and depreciation has ceased to be recognized as from this date.
Contributions from operations have been presented under separate headings in the consolidated balance sheet, and are shown in the table below:
In EUR\u00a0million | December 31, 2023 |
Assets held for sale | 38.5 |
Non-current assets\u00a0 | 23.4 |
Current assets | 15.1 |
Liabilities associated with assets held for sale | 26.0 |
Non-current liabilities\u00a0 | 16.1 |
Current liabilities\u00a0 | 9.9 |
Finally, in September 2022, Imerys\u2019 Performance Minerals business line received an offer to purchase a set of mining and industrial assets serving the paper market in America, Europe and Asia. The assets concerned by this transaction and the related liabilities were designated as assets and liabilities held for sale as from that date, and depreciation ceased to be recognized. At December\u00a031, 2022, the EUR\u00a0110\u00a0million share of Performance Minerals goodwill allocated to this activity had been written down by EUR\u00a0108\u00a0million. In the first half of 2023, an additional impairment loss of EUR\u00a010\u00a0million net of tax was recognized on goodwill and depreciable assets. In the second half of 2023, as disposal had become highly unlikely, the assets involved in this transaction and the related liabilities ceased to be presented as assets and liabilities held for sale. Unrecognized depreciation since September 2022 has been recognized in the income statement in the amount of EUR\u00a016\u00a0million. In addition, the share of the impairment loss on depreciable assets recognized in June was reversed, amounting to EUR\u00a08\u00a0million, net of tax.
GBL Capital
AMB III has entered into an agreement in December\u00a02023 with Paul-Emmanuel and Roel Vanreusel who, after a period of transformational growth for Beltaste-Vanreusel during its partnership with Apheon, will acquire 100% of the company\u2019s shares. The company is a major producer of frozen snacks in Belgium and the Netherlands. The transaction was finalized in January\u00a02024. The table below shows the balance sheet contributions of this company:
In EUR\u00a0million | December 31, 2023 |
Assets held for sale | 134.7 |
Non-current assets\u00a0 | 109.5 |
Current assets | 25.1 |
Liabilities associated with assets held for sale | 65.8 |
Non-current liabilities\u00a0 | 48.4 |
Current liabilities\u00a0 | 17.5 |
Note 24Assets and liabilities associated with assets held for sale and discontinued operations
Imerys
Imerys has entered into exclusive negotiations with the Mytilineos Group to divest its bauxite production business in Greece, with an agreement signed on September 4, 2023, for an enterprise value of EUR\u00a010\u00a0million. The assets involved in this transaction, as well as their related liabilities, have been classified as assets and liabilities held for sale and depreciation has ceased to be recognized as from this date.
Contributions from operations have been presented under separate headings in the consolidated balance sheet, and are shown in the table below:
In EUR\u00a0million | December 31, 2023 |
Assets held for sale | 38.5 |
Non-current assets\u00a0 | 23.4 |
Current assets | 15.1 |
Liabilities associated with assets held for sale | 26.0 |
Non-current liabilities\u00a0 | 16.1 |
Current liabilities\u00a0 | 9.9 |
Finally, in September 2022, Imerys\u2019 Performance Minerals business line received an offer to purchase a set of mining and industrial assets serving the paper market in America, Europe and Asia. The assets concerned by this transaction and the related liabilities were designated as assets and liabilities held for sale as from that date, and depreciation ceased to be recognized. At December\u00a031, 2022, the EUR\u00a0110\u00a0million share of Performance Minerals goodwill allocated to this activity had been written down by EUR\u00a0108\u00a0million. In the first half of 2023, an additional impairment loss of EUR\u00a010\u00a0million net of tax was recognized on goodwill and depreciable assets. In the second half of 2023, as disposal had become highly unlikely, the assets involved in this transaction and the related liabilities ceased to be presented as assets and liabilities held for sale. Unrecognized depreciation since September 2022 has been recognized in the income statement in the amount of EUR\u00a016\u00a0million. In addition, the share of the impairment loss on depreciable assets recognized in June was reversed, amounting to EUR\u00a08\u00a0million, net of tax.
GBL Capital
AMB III has entered into an agreement in December\u00a02023 with Paul-Emmanuel and Roel Vanreusel who, after a period of transformational growth for Beltaste-Vanreusel during its partnership with Apheon, will acquire 100% of the company\u2019s shares. The company is a major producer of frozen snacks in Belgium and the Netherlands. The transaction was finalized in January\u00a02024. The table below shows the balance sheet contributions of this company:
In EUR\u00a0million | December 31, 2023 |
Assets held for sale | 134.7 |
Non-current assets\u00a0 | 109.5 |
Current assets | 25.1 |
Liabilities associated with assets held for sale | 65.8 |
Non-current liabilities\u00a0 | 48.4 |
Current liabilities\u00a0 | 17.5 |
Note 25Financial risks management and sensitivity analysis
Considering the specific nature of each of the entities consolidated in the group\u2019s financial statements and their widely differing activities (financial for GBL and operational for Imerys, Canyon, Affidea and Sanoptis), each entity manages risks independently.
The main risks identified at group level are the foreign exchange risk, the stock exchange risk, the interest rate risk, the energy price risk, the market liquidity risk, the conversion of financial statements risk and the credit risk (mainly for Imerys).
Foreign exchange riskis defined as the risk whereby a cash flow labeled in foreign currency may be subject to a deterioration caused by an unfavorable change in its counterpart in functional currency. The group is exposed to foreign exchange risk through:
(i)\tThe impact it can have on the value of its portfolio through investments quoted in foreign currencies (accounted for as other equity investments and trading assets), as well as through dividend flows it receives. As of December\u00a031, 2023, GBL was primarily exposed to CHF and USD. A 10% appreciation/depreciation in the Euro versus its end-of-year rate for all currencies used by the group would have had an impact of EUR\u00a0- 494\u00a0million and EUR\u00a0494\u00a0million on shareholders\u2019 equity and EUR\u00a0- 132\u00a0million and EUR\u00a0132\u00a0million on the annual income statement. These calculations only concern statements of financial position owned by the group and does not take into account the impact of the appreciation/depreciation of these currencies on the market price of the underlying assets.
(ii)\tThe impact on the underlying elements of its net financial debt, i.e., before foreign exchange rates derivatives as of December\u00a031, 2023. A 10% downward or upward variation of the Euro against other foreign currencies would generate a variation of EUR\u00a042\u00a0million and EUR\u00a0- 42\u00a0million on\u00a0net financial debt. A 10% decrease/increase in foreign currency exchange rates on the portfolio of derivative instruments held as of December\u00a031,\u00a02023 for highly probable future transactions of purchases and sales in foreign currencies would have an impact on equity (effective portion of derivative instruments qualified as cash flow hedges) of EUR\u00a00\u00a0million and EUR\u00a00\u00a0million respectively and on the income statement (ineffective portion of derivative instruments qualified as cash flow hedges of cash and derivative instruments not eligible for hedge accounting) of\u00a0EUR\u00a00\u00a0million and EUR\u00a00\u00a0million.
The transactions performed by the group are accounted for, wherever possible, in the functional currency of the entity that carries out the transaction. When it is not possible to record a transaction in the functional currency of the entity, the transactional currency risk may be hedged on an individual basis using forwards, swaps or options. The corresponding instruments qualify as cash flow hedges.
Stock exchange riskis defined as the risk whereby the portfolio of the group (other equity investments and trading assets) may be influenced by an unfavorable change of market prices. The group is exposed, due to the very nature of its activities, to market fluctuations of its portfolio. The volatility of the financial markets, moreover, can have an impact on the share price of GBL. As of December\u00a031, 2023, a 10% appreciation/ depreciation in the market price of all portfolio investments in listed companies as well as on the derivative instruments (options, exchangeable and convertible bonds) would have an impact of EUR\u00a0999\u00a0million and EUR\u00a0- 999\u00a0million on shareholders\u2019 equity and of EUR\u00a0-\u00a02\u00a0million and EUR\u00a02\u00a0million on the annual income statement.
Interest rate riskis defined as the risk whereby the interest flow related to financial liabilities, on the one hand, and gross cash, on the other hand, may be deteriorated by an unfavorable change of interest rates. Regarding financial liabilities, a modification of interest rates has a limited impact on GBL\u2019s profit (loss) because the vast majority of its financial liabilities is issued at fixed interest rates. As regards cash, GBL has chosen to continue to give priority to liquidity while limiting counterparty risk. Cash is therefore invested on a very short-term basis so that it can be mobilized at any time to contribute to the group\u2019s flexibility and security in the event of investment or the materialization of external risks. Imerys\u2019 strategy focuses on obtaining finances mainly in euros, which is the most accessible fixed-rate financial resource. Medium-term fixed-rate bond issues can be converted to floating rates using interest rate swaps. Given the expected trend in interest rates in 2023, the group has fixed the interest rate for part of its future financial debt on various terms. At Canyon, Affidea and Sanoptis, bank debt is also at variable rates, and in order to protect itself against rising interest rates, those companies entered into interest rate hedging instruments in 2023.
In terms of sensitivity, a decrease or increase of interest rates (Euribor, SONIA and SOFR) of 0.5% would respectively have an impact on the net financial debt of the group of EUR\u00a0- 6\u00a0million and EUR\u00a06\u00a0million.
Energy price risk is the risk whereby the cash outflow due in relation to energy purchases may be subject to a deterioration by a rise in its market price. Imerys is exposed to the price risk of energy used in the production cycle of its activities, mainly natural gas, electricity and, to a lesser extent, coal. To manage energy price risk, Imerys sources its energy from a variety of geographical locations and sources. The group aims at impacting the increase in energy onto the selling price of its products. Energy price risk is hedged using forward and option contracts, instruments that qualify as cash flow hedges. In terms of sensitivity, a 10% decrease or increase of natural gas and Brent prices on the portfolio of derivative instruments held at December\u00a031, 2023 with respect to highly probable future purchases of natural gas and Brent would have an impact on equity (effective portion of cash flow hedges) of EUR\u00a0- 3\u00a0million and EUR\u00a03\u00a0million respectively, and on the income statement (ineffective portion of cash flow hedges and non-hedge derivative instruments) of EUR\u00a00\u00a0million and EUR\u00a00\u00a0million.
Market liquidity riskis the risk whereby the group would not be in a position to meet the repayment obligations of its financial liabilities due to the non-renewal of a non-confirmed financial resource (short-term negotiable securities, bank facility and accrued interests, or other debt and facilities). Group cash flow forecasts between the drawdown date and the repayment date of these debts must allow the group to honor its repayments at maturity. The debt schedule of debts is presented in Note 17.
Conversion riskof financial statements is a form of foreign exchange risk whereby the value in euros of the financial statements of a foreign operation may be subject to a deterioration due to an unfavorable change in the foreign exchange rate of the functional currency of that business. The group, mainly through Imerys, hedges part of its net investments in foreign operations by granting loans specifically allocated to financing the operations in the long term and by controlling the proportion of its financial debt stated in foreign currencies. The exchange rate differences generated by the loans and borrowings qualified as hedges of net investments in foreign operations are recognized in equity so as to neutralize, to a certain extent, the translation gains or losses on hedged net investments. In terms of sensitivity, a 10% decrease or increase in foreign exchange rates on the portfolio of foreign exchange swaps held at December\u00a031, 2023 with respect to hedges of net investments in foreign operations would have an impact on equity (effective portion of hedges of net investments in foreign operations) of EUR\u00a0- 77\u00a0million and EUR\u00a063\u00a0million respectively, and on the income statement (ineffective portion of hedges of net investments in foreign operations and non-hedge derivative instruments) of EUR\u00a00\u00a0million and EUR\u00a00\u00a0million.
Credit riskis the risk that a group debtor (mainly Imerys) does not reimburse their debt at the agreed due date. This risk mainly affects trade receivables. Credit risk is monitored at entity level by analyzing the breakdown of receivables by maturity. Generally due between 30 and 90 days, the\u00a0group\u2019s receivables are not covered by any material financing component. Group entities may hedge credit risk through credit insurance contracts or warranties (see Note 15).
Note 25Financial risks management and sensitivity analysis
Considering the specific nature of each of the entities consolidated in the group\u2019s financial statements and their widely differing activities (financial for GBL and operational for Imerys, Canyon, Affidea and Sanoptis), each entity manages risks independently.
The main risks identified at group level are the foreign exchange risk, the stock exchange risk, the interest rate risk, the energy price risk, the market liquidity risk, the conversion of financial statements risk and the credit risk (mainly for Imerys).
Foreign exchange riskis defined as the risk whereby a cash flow labeled in foreign currency may be subject to a deterioration caused by an unfavorable change in its counterpart in functional currency. The group is exposed to foreign exchange risk through:
(i)\tThe impact it can have on the value of its portfolio through investments quoted in foreign currencies (accounted for as other equity investments and trading assets), as well as through dividend flows it receives. As of December\u00a031, 2023, GBL was primarily exposed to CHF and USD. A 10% appreciation/depreciation in the Euro versus its end-of-year rate for all currencies used by the group would have had an impact of EUR\u00a0- 494\u00a0million and EUR\u00a0494\u00a0million on shareholders\u2019 equity and EUR\u00a0- 132\u00a0million and EUR\u00a0132\u00a0million on the annual income statement. These calculations only concern statements of financial position owned by the group and does not take into account the impact of the appreciation/depreciation of these currencies on the market price of the underlying assets.
(ii)\tThe impact on the underlying elements of its net financial debt, i.e., before foreign exchange rates derivatives as of December\u00a031, 2023. A 10% downward or upward variation of the Euro against other foreign currencies would generate a variation of EUR\u00a042\u00a0million and EUR\u00a0- 42\u00a0million on\u00a0net financial debt. A 10% decrease/increase in foreign currency exchange rates on the portfolio of derivative instruments held as of December\u00a031,\u00a02023 for highly probable future transactions of purchases and sales in foreign currencies would have an impact on equity (effective portion of derivative instruments qualified as cash flow hedges) of EUR\u00a00\u00a0million and EUR\u00a00\u00a0million respectively and on the income statement (ineffective portion of derivative instruments qualified as cash flow hedges of cash and derivative instruments not eligible for hedge accounting) of\u00a0EUR\u00a00\u00a0million and EUR\u00a00\u00a0million.
The transactions performed by the group are accounted for, wherever possible, in the functional currency of the entity that carries out the transaction. When it is not possible to record a transaction in the functional currency of the entity, the transactional currency risk may be hedged on an individual basis using forwards, swaps or options. The corresponding instruments qualify as cash flow hedges.
Stock exchange riskis defined as the risk whereby the portfolio of the group (other equity investments and trading assets) may be influenced by an unfavorable change of market prices. The group is exposed, due to the very nature of its activities, to market fluctuations of its portfolio. The volatility of the financial markets, moreover, can have an impact on the share price of GBL. As of December\u00a031, 2023, a 10% appreciation/ depreciation in the market price of all portfolio investments in listed companies as well as on the derivative instruments (options, exchangeable and convertible bonds) would have an impact of EUR\u00a0999\u00a0million and EUR\u00a0- 999\u00a0million on shareholders\u2019 equity and of EUR\u00a0-\u00a02\u00a0million and EUR\u00a02\u00a0million on the annual income statement.
Interest rate riskis defined as the risk whereby the interest flow related to financial liabilities, on the one hand, and gross cash, on the other hand, may be deteriorated by an unfavorable change of interest rates. Regarding financial liabilities, a modification of interest rates has a limited impact on GBL\u2019s profit (loss) because the vast majority of its financial liabilities is issued at fixed interest rates. As regards cash, GBL has chosen to continue to give priority to liquidity while limiting counterparty risk. Cash is therefore invested on a very short-term basis so that it can be mobilized at any time to contribute to the group\u2019s flexibility and security in the event of investment or the materialization of external risks. Imerys\u2019 strategy focuses on obtaining finances mainly in euros, which is the most accessible fixed-rate financial resource. Medium-term fixed-rate bond issues can be converted to floating rates using interest rate swaps. Given the expected trend in interest rates in 2023, the group has fixed the interest rate for part of its future financial debt on various terms. At Canyon, Affidea and Sanoptis, bank debt is also at variable rates, and in order to protect itself against rising interest rates, those companies entered into interest rate hedging instruments in 2023.
In terms of sensitivity, a decrease or increase of interest rates (Euribor, SONIA and SOFR) of 0.5% would respectively have an impact on the net financial debt of the group of EUR\u00a0- 6\u00a0million and EUR\u00a06\u00a0million.
Energy price risk is the risk whereby the cash outflow due in relation to energy purchases may be subject to a deterioration by a rise in its market price. Imerys is exposed to the price risk of energy used in the production cycle of its activities, mainly natural gas, electricity and, to a lesser extent, coal. To manage energy price risk, Imerys sources its energy from a variety of geographical locations and sources. The group aims at impacting the increase in energy onto the selling price of its products. Energy price risk is hedged using forward and option contracts, instruments that qualify as cash flow hedges. In terms of sensitivity, a 10% decrease or increase of natural gas and Brent prices on the portfolio of derivative instruments held at December\u00a031, 2023 with respect to highly probable future purchases of natural gas and Brent would have an impact on equity (effective portion of cash flow hedges) of EUR\u00a0- 3\u00a0million and EUR\u00a03\u00a0million respectively, and on the income statement (ineffective portion of cash flow hedges and non-hedge derivative instruments) of EUR\u00a00\u00a0million and EUR\u00a00\u00a0million.
Market liquidity riskis the risk whereby the group would not be in a position to meet the repayment obligations of its financial liabilities due to the non-renewal of a non-confirmed financial resource (short-term negotiable securities, bank facility and accrued interests, or other debt and facilities). Group cash flow forecasts between the drawdown date and the repayment date of these debts must allow the group to honor its repayments at maturity. The debt schedule of debts is presented in Note 17.
Conversion riskof financial statements is a form of foreign exchange risk whereby the value in euros of the financial statements of a foreign operation may be subject to a deterioration due to an unfavorable change in the foreign exchange rate of the functional currency of that business. The group, mainly through Imerys, hedges part of its net investments in foreign operations by granting loans specifically allocated to financing the operations in the long term and by controlling the proportion of its financial debt stated in foreign currencies. The exchange rate differences generated by the loans and borrowings qualified as hedges of net investments in foreign operations are recognized in equity so as to neutralize, to a certain extent, the translation gains or losses on hedged net investments. In terms of sensitivity, a 10% decrease or increase in foreign exchange rates on the portfolio of foreign exchange swaps held at December\u00a031, 2023 with respect to hedges of net investments in foreign operations would have an impact on equity (effective portion of hedges of net investments in foreign operations) of EUR\u00a0- 77\u00a0million and EUR\u00a063\u00a0million respectively, and on the income statement (ineffective portion of hedges of net investments in foreign operations and non-hedge derivative instruments) of EUR\u00a00\u00a0million and EUR\u00a00\u00a0million.
Credit riskis the risk that a group debtor (mainly Imerys) does not reimburse their debt at the agreed due date. This risk mainly affects trade receivables. Credit risk is monitored at entity level by analyzing the breakdown of receivables by maturity. Generally due between 30 and 90 days, the\u00a0group\u2019s receivables are not covered by any material financing component. Group entities may hedge credit risk through credit insurance contracts or warranties (see Note 15).
Note 26Derivative financial instruments
26.1 Fair values of short-term and long-term derivative financial instruments
The fair values of the derivative financial instruments held as of December\u00a031, 2023 and 2022 are shown in the following table:
In EUR\u00a0million | 2023 | 2022 |
Assets | 66.4 | 62.5 |
Of which non-current assets | 27.2 | 9.6 |
Of which current assets | 39.2 | 52.9 |
Composed of: | ||
Forwards, futures and currency swaps - Derivative instruments held for trading | 1.1 | 17.3 |
Forwards, futures and currency swaps - Hedging | 12.4 | 38.7 |
Interest rate hedging instruments - Derivative instruments held for trading | 24.4 | - |
Futures and commodities options - Hedging | 1.5 | 6.5 |
Call and put options on shares - Derivative instruments held for trading | 27.0 | - |
Liabilities | (62.2) | (276.1) |
Of which non-current liabilities | (16.0) | (92.8) |
Of which current liabilities | (46.2) | (183.3) |
Composed of: | - | - |
Forwards, futures and currency swaps - Derivative instruments held for trading | (2.5) | (0.3) |
Forwards, futures and currency swaps - Hedging | (2.1) | (15.0) |
Interest rate hedging instruments - Derivative instruments held for trading | (7.4) | - |
Interest rate hedging instruments - Hedging | (17.5) | - |
Futures and commodities options - Hedging | (27.8) | (25.9) |
Forwards on shares - Hedging | - | (76.7) |
Call and put options on shares - Derivative instruments held for trading | (4.9) | (158.2) |
Net position | 4.2 | (213.7) |
Forwards, futures and currency swaps | 8.9 | 40.7 |
Interest rate hedging instruments | (0.5) | - |
Forwards on shares | - | (76.7) |
Futures and commodities options | (26.3) | (19.4) |
Call and put options on shares | 22.1 | (158.2) |
The following table shows the maturity of the cash flow hedge derivatives for the reporting periods ended December\u00a031, 2023 and 2022:
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 10.3 | 10.1 | 0.2 | - |
Interest rate hedging instruments | (17.5) | (11.5) | (6.0) | - |
Futures and commodities options | (26.3) | (26.0) | (0.3) | - |
Total as of December 31, 2023 | (33.5) | (27.4) | (6.1) | - |
Forwards, futures and currency swaps | 23.7 | 18.3 | 5.4 | - |
Futures and commodities options | (19.4) | (19.4) | - | - |
Forwards on shares | (76.7) | (76.7) | - | - |
Total as of December 31, 2022 | (72.4) | (77.8) | 5.4 | - |
26.2Change in fair value of derivative instruments
The following table shows the changes in the fair value of hedging derivative instruments between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative instruments - hedging | ||
As of January 1 \u2013 net derivatives position\u00a0 | (72.4) | 73.6 |
Increase (decrease) recognized in profit or loss | (20.9) | (1.7) |
Increase (decrease) recognized in shareholders' equity | 54.8 | (154.7) |
Changes in group structure/Business combinations/Other | 5.0 | 10.4 |
As of December 31 \u2013 net derivatives position | (33.5) | (72.4) |
The following table shows the changes in the fair value of derivative instruments held for trading between two closing dates:
In EUR\u00a0million | 2023 | 2022 |
Derivative financial instruments held for trading | ||
As of January 1 \u2013 net derivatives position\u00a0 | (141.2) | (206.2) |
Increase (decrease) recognized in profit or loss | 105.0 | 98.7 |
Increase (decrease) recognized in shareholders' equity | - | - |
Changes in group structure/Business combinations/Other | 73.9 | (33.6) |
As of December 31 \u2013 net derivatives position | 37.7 | (141.2) |
26.3\tNotional underlying amounts of derivative financial instruments
In EUR\u00a0million | 2023 | 2022 |
Assets\u00a0 | 1,701.9 | 2,140.4 |
Composed of: | ||
Forwards, futures and currency swaps | 616.1 | 2,063.7 |
Interest rate hedging instruments | 978.4 | - |
Futures and commodities options | 80.4 | 76.7 |
Call and put options on shares | 27.0 | - |
Liabilities | 3,548.2 | 4,043.6 |
Composed of: | ||
Forwards, futures and currency swaps | 1,292.9 | 1,715.9 |
Interest rate hedging instruments | 1,070.6 | - |
Forwards on shares | - | 537.6 |
Futures and commodities options | 24.8 | 21.7 |
Call and put options on shares | 1,159.9 | 1,768.4 |
26.4\tMaturity of notional underlying amounts of derivative financial instruments
In EUR\u00a0million | Total | Within the year | 2 to 5 years | Over 5 years |
Forwards, futures and currency swaps | 1,909.0 | 1,898.4 | 10.6 | - |
Interest rate hedging instruments | 2,048.9 | 1,428.9 | 620.0 | - |
Futures and commodities options | 105.2 | 101.2 | 4.0 | - |
Call and put options on shares | 1,186.9 | 159.9 | 1,000.0 | 27.0 |
Total as of December 31, 2023 | 5,250.0 | 3,588.4 | 1,634.6 | 27.0 |
Forwards, futures and currency swaps | 3,779.6 | 3,067.9 | 107.1 | 604.6 |
Forwards on shares | 537.6 | 537.6 | - | - |
Futures and commodities options | 98.4 | 98.4 | - | - |
Call and put options on shares | 1,768.4 | 689.6 | 1,078.8 | - |
Total as of December 31, 2022 | 6,184.0 | 4,393.5 | 1,185.9 | 604.6 |
Note 27Stock options
GBL
Cash-settled plans
GBL issued since 2013 several incentive plans concerning the shares of a (sub-)subsidiaries of the group. These options were granted to the staff and the Executive Management of GBL. These options give the right to the beneficiary to acquire a share for an exercise price, corresponding with the value of the underlying share at the moment of the granting of the options. These options can be exercised during a period of time. The options will be settled in cash or in shares. These plans are treated as cash-settled plans. The characteristics of the plans not yet fully exercised or expired are included in the table below:
FINPAR IX S.R.L.(1) | FINPAR VIII S.R.L.(1) | FINPAR VII S.R.L.(1) | FINPAR VI S.R.L. | FINPAR V S.R.L. | FINPAR IV S.A. | FINPAR III S.A. | FINPAR II S.A. | URDAC S.A. | LTI TWO S.A. | |
Issue date | May 11, 2023 | May 9, 2022 | November 22, 2021 | December 15, 2020 | June 12, 2020 | May 10, 2019 | May 7, 2018 | May 8, 2017 | May 5, 2015 | April 29, 2014 |
Number of accepted options | 1,697,860 | 1,819,341 | 1,273,215 | 346,359 | 335,729 | 303,380 | 337,146 | 348,424 | 257,206 | 223,256 |
Exercise price (in EUR) | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 | 10.00 |
Vesting date | May 11, 2026 | May 9, 2025 | November 22, 2024 | December 15, 2023 | June 12, 2023 | May 10, 2022 | May 7, 2021 | May 8, 2020 | May 5, 2018 | April 29, 2017 |
Expiry date | May 10, 2033 | May 8, 2032 | November 21, 2031 | December 14, 2030 | June 11, 2030 | May 9, 2029 | May 6, 2028 | May 7, 2027 | May 4, 2025 | April 28, 2024 |
Valuation assumptions\u00a0 | ||||||||||
Valuation method | Intrinsic value | Intrinsic value | Intrinsic value | Intrinsic value | Intrinsic value | Intrinsic value | Intrinsic value | Intrinsic value | Monte Carlo | Monte Carlo |
Implicit volatility of the underlyings | n.r. | n.r. | n.r. | n.r. | n.r. | n.r. | n.r. | n.r. | 17.22%\u00a0- 19.17% | 16.33%\u00a0- 29.62% |
Fair value per unit (in EUR) | n.r. | n.r. | n.r. | 2.05 | 6.85 | 0.00 | 0.00 | 0.00 | 8.62 | 15.11 |
Debt accounted for (in EUR\u00a0million) | 0.6 | 0.7 | 0.5 | 0.7 | 2.2 | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 |
The table of changes is shown below:
2023 | 2022 | |||
Number | Exercise price | Number | Exercise price | |
\u00a0(in EUR) | \u00a0(en EUR) | |||
As of January 1 | 4,770,946 | 10.00 | 1,678,790 | 10.00 |
Exercised by: | ||||
Executive Management | - | 10.00 | - | 10.00 |
Employees | (12,021) | 10.00 | (400) | 10.00 |
Granted to: | ||||
Executive Management | 337,500 | 10.00 | 675,000 | 10.00 |
Employees | 1,360,360 | 10.00 | 2,417,556 | 10.00 |
As of December 31 | 6,456,785 | 10.00 | 4,770,946 | 10.00 |
Plan LTI Two | 3,249 | 10.00 | 3,249 | 10.00 |
Plan URDAC | 6,328 | 10.00 | 6,328 | 10.00 |
Plan FINPAR II | 348,424 | 10.00 | 348,424 | 10.00 |
Plan FINPAR III | 337,146 | 10.00 | 337,146 | 10.00 |
Plan FINPAR IV | 303,180 | 10.00 | 303,180 | 10.00 |
Plan FINPAR V | 322,628 | 10.00 | 334,649 | 10.00 |
Plan FINPAR VI | 345,414 | 10.00 | 345,414 | 10.00 |
Plan FINPAR VII | 1,273,215 | 10.00 | 1,273,215 | 10.00 |
Plan FINPAR VIII | 1,819,341 | 10.00 | 1,819,341 | 10.00 |
Plan FINPAR IX | 1,697,860 | 10.00 | - | - |
In 2023, the total cost for the group with respect to the stock option plans was recorded in operating expenses and amounted to EUR\u00a0- 3\u00a0million (EUR\u00a0-\u00a08\u00a0million in 2022), of which EUR\u00a0- 1\u00a0million for the Executive Management (EUR\u00a0- 1\u00a0million in 2022). At the end of 2023, 27.31% of the options were vested, but only 5.15% were exercisable.
(1)\tOf which Type A and Type B options
Equity-settled plans
GBL has issued six incentive plans from 2007 to 2012 based on GBL shares for its Executive Management and staff. These plans are treated as equity- settled plans. At December\u00a031, 2023, all these plans had been exercised or had expired.
The table of changes is shown below:
2023 | 2022 | |||
Number | Exercise price | Number | Exercise price | |
\u00a0(in EUR) | \u00a0(en EUR) | |||
As of January 1 | 30,613 | 77.40 | 52,426 | 81.17 |
Exercised by: | ||||
Executive Management | - | - | - | - |
Employees | (11,332) | 77.40 | (21,813) | 86.46 |
Expired: | ||||
Executive Management | - | - | - | - |
Employees | (19,281) | 77.40 | - | - |
As of December 31 | - | 77.40 | 30,613 | 77.40 |
2008 plan | - | 77.40 | 30,613 | 77.40 |
Imerys
Imerys had put in place an incentive plan for the group\u2019s executives and some of the managers and employees that entailed the granting of options on Imerys shares. Each option entitled the holder to subscribe shares at a predetermined fixed price. The right to exercise the options was generally acquired three years after the date of the granting and the options had a maximum life of ten years. All these plans were exercised or had expired by December\u00a031, 2022.
In addition, Imerys grants stock option plans, which, if exercised, result in the subscription of shares newly issued for this as well as free shares acquired in the market. In 2023, Imerys granted 446,300 free performance shares (432,950 in 2022). As of December\u00a031, 2023, the total employee expenses recognized in the Imerys group\u2019s financial statements with respect to stock option and free share plans for the year amounted to EUR\u00a010\u00a0million (EUR\u00a014\u00a0million in 2022).
Number of free shares | Maturity | Turnover rate | Average dividend rate | Performance conditions | Fair value | Total cost per plan | 2023 cost of plans | 2022 cost of plans | |
In EUR | In EUR\u00a0million | In EUR\u00a0million | In EUR\u00a0million | ||||||
2019 | 427,500 | 3 years | 33.80% | 3.00% | 54.90% | 35,75 | (5.4) | - | (0.2) |
2020 | 154,150 | 3 years | 9.80% | 3.10% | 100.00% | 36,71 | (4.5) | 0.2 | (1.4) |
2020 | 457,700 | 3 years | 6.00% | 3.10% | 100.00% | 26,75 | (11.1) | (0.5) | (4.1) |
2021 | 482,200 | 3 years | 6.90% | 3.20% | 100.00% | 38,85 | (16.8) | (4.5) | (5.7) |
2022 | 432,950 | 3 years | 10.00% | 3.30% | 89.70% | 27,36 | (9.6) | (2.9) | (2.1) |
2023 | 446,300 | 3 years | 10.00% | 4.00% | 94.10% | 30,73 | (11.6) | (2.6) | - |
Cost of plans recognized in employee expenses | (10.3) | (13.5) | |||||||
Settlement in equity instruments | (10.3) | (13.5) |
Note 28Earnings per share
28.1 Earnings per share (group\u2019s share)
In EUR\u00a0million | 2023 | 2022 |
Basic | ||
Consolidated income for the period (including discontinued operations) | 1,723.2 | (584.7) |
Consolidated income for the period (excluding discontinued operations) | 397.5 | (240.5) |
Diluted | ||
Consolidated income for the period (including discontinued operations) | 1,716.0 | (614.2) |
Consolidated income for the period (excluding discontinued operations) | 390.3 | (270.0) |
28.2\tNumber of shares
2023 | 2022 | |
Issued shares at beginning of year | 153,000,000 | 156,355,000 |
Treasury shares at beginning of year | (12,222,870) | (7,944,102) |
Weighted changes during the period | (469,341) | (1,693,739) |
Weighted average number of shares used to determine basic earnings per share | 140,307,789 | 146,717,159 |
Impact of financial instruments with a diluting effect: | ||
Convertible bonds | 4,255,580 | 4,255,580 |
Weighted average number of shares used to determine diluted earnings per share | 144,563,369 | 150,972,739 |
28.3\tSummary of earnings per share
In EUR\u00a0per share | 2023 | 2022 |
Basic\u00a0 | 12.28 | (3.99) |
Continuing operations | 2.83 | (1.64) |
Discontinued operations | 9.45 | (2.35) |
Diluted\u00a0 | 11.87 | (4.07) |
Continuing operations | 2.70 | (1.79) |
Discontinued operations | 9.17 | (2.28) |
Note 29Financial instruments
Fair value
The fair value of a financial instrument is the amount that would be received on selling the asset or paid on transferring a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is a presumption that an entity is a going concern without any intention or need to liquidate, to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Fair value is not, therefore, the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distressed sale.
To reflect the importance of inputs used when measuring at fair value, the group classifies these valuations according to a hierarchy composed of\u00a0the\u00a0following levels:
level 1: listed prices (non-adjusted) on active markets for identical assets or liabilities;
level 2: inputs, other than the listed prices included in level 1, that are observable for the asset or liability concerned, either directly (i.e., prices) or\u00a0indirectly (i.e., derived from prices); and
level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).
The group\u2019s financial instruments very largely belong to classification levels 1 and 2. The financial assets measured at level 3 fair value are not significant compared to the other asset classes (15.07% as of December\u00a031, 2023 and 12.93% as of December\u00a031, 2022).
Measurement techniques
The objective of using a valuation method is to establish what the transaction price would have been on the measurement date in an arm\u2019s-length exchange and motivated by normal business considerations.
Techniques used to measure the fair value of level 2 financial instruments:
Exchangeable or convertible bonds
The exchangeable or convertible bonds issued by the group are considered to be hybrid instruments, i.e., instruments including a bond component and an embedded derivative. At the date of issue, the fair value of the bond component is estimated based on the prevailing market interest rate for similar non-exchangeable or non-convertible bonds, taking into account the risk associated with GBL (credit spread). At each reporting date, the value of the bond component is recalculated, taking into account the change in the risk-free rate and GBL\u2019s credit spread, and the difference in relation to the price of the exchangeable or convertible bond observed on the Frankfurt Stock Exchange\u2019s Euro MTF market is taken as the new value of the derivative component. The change in this value in relation to the previous reporting date is recognized in profit or loss.
Other level 2 financial instruments
The fair value of derivative instruments not associated with exchangeable or convertible bonds is taken from a model that uses observable data, in other words the quotes on the reporting date provided by third-parties operating on the financial markets. These valuations are adjusted for the counterparties\u2019 credit risk and the credit risk specific to Imerys or GBL. Accordingly, if the market value of the derivative is positive (derivative asset), its fair value incorporates the likelihood of the counterparty defaulting (Credit Value Adjustment or CVA). If the derivative\u2019s market value is negative (derivative liability), its fair value factors in the likelihood of Imerys or GBL defaulting (Debit Value Adjustment or DVA). These adjustments are measured based on the spreads of the bonds in circulation on the secondary market, as issued by Imerys, GBL and their counterparts.
Techniques used to measure the fair value of level 3 financial instruments:
Equity investments
The investments in unlisted companies are valued internally at their fair value on a quarterly basis, based on a specific valuation method or a combination of valuation methods, the specific valuations the method of combination of methods being consistent from an closing to another. Methodologies are aligned across the portfolio, though with different weights for respective methods depending on the company. Valuation are approved by the Valuation Committee of GBL and reviewed by an external advisor. Changes in the fair value of these investments are recognized in the revaluation reserves.
Investments in funds or co-investments owned by GBL Capital are revalued at their fair value, as notably determined by the managers of the funds, based on their investment portfolio. Changes in the fair value of these investments are recognized in financial income (loss).
In accordance with the recommendations of the International Private Equity and Venture Valuation Guidelines (\u201cIPEV Valuation Guidelines\u201d), recent\u00a0investment, funds or co-investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of fair\u00a0value.
Analysis of financial instruments by category \u2013 balance sheets
The category, according to IFRS 9, uses the following abbreviations:
FATOCI: Financial Assets measured at fair value through Other Comprehensive Income
FATPL: Financial Assets measured at fair value through Profit or Loss
FLTPL: Financial Liabilities measured at fair value through Profit or Loss
FAAC: Financial Assets measured at Amortized Cost
FLAC: Financial Liabilities measured at Amortized Cost
HeAc: Hedge Accounting
The tables below show a comparison of the book value and the fair value of the financial instruments as of December\u00a031, 2023 and as of December\u00a031,\u00a02022, as well as the fair value hierarchy. There were no significant transfers between the different levels between 2023 and 2022.
As of December 31, 2023
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,013.1 | 10,013.1 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 287.2 | 287.2 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 112.4 | 112.4 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 2,192.0 | 2,192.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 0.2 | 0.2 | Level 2 |
Derivative instruments - Other | FATPL | 27.0 | 27.0 | Level 2 |
Other financial assets | FAAC | 573.7 | 573.7 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 600.6 | 600.6 | Level 2 |
Trading financial assets | FATPL | 1,385.6 | 1,385.6 | Level 1 |
Cash and cash equivalents | FAAC | 1,198.0 | 1,198.0 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 13.7 | 13.7 | Level 2 |
Derivative instruments - Other | FATPL | 25.5 | 25.5 | Level 2 |
Other financial assets | FAAC | 21.1 | 21.1 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 7,177.2 | 6,979.8 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 6.3 | 6.3 | Level 2 |
Derivative instruments - Other | FLTPL | 9.7 | 9.7 | Level 2 |
Other non current liabilities | FLAC | 407.1 | 407.1 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,173.7 | 1,173.7 | Level 2 |
Trade payables | FLAC | 571.5 | 571.5 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 41.1 | 41.1 | Level 2 |
Derivative instruments - Other | FLTPL | 5.1 | 5.1 | Level 2 |
Other current liabilities | FLAC | 76.3 | 76.3 | Level 2 |
As of December 31, 2022
In EUR\u00a0million | Category according to IFRS 9 | Carrying amount | Fair value | Hierarchy of fair values |
Financial assets | ||||
Non-current assets | ||||
Other equity investments | ||||
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 10,837.2 | 10,837.2 | Level 1 |
Equity investments measured at fair value and with changes recognized in equity | FATOCI | 273.0 | 273.0 | Level 3 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 127.3 | 127.3 | Level 1 |
Equity investments measured at fair value and with changes recognized in profit or loss | FATPL | 1,927.0 | 1,927.0 | Level 3 |
Other non-current assets | ||||
Derivative instruments - Hedging | HeAc | 9.6 | 9.6 | Level 2 |
Other financial assets | FAAC | 66.1 | 66.1 | Level 2 |
Current assets | ||||
Trade receivables | FAAC | 1,108.7 | 1,108.7 | Level 2 |
Trading financial assets | FATPL | 870.0 | 870.0 | Level 1 |
Cash and cash equivalents | FAAC | 1,768.3 | 1,768.3 | Level 2 |
Other current assets | ||||
Derivative instruments - Hedging | HeAc | 35.5 | 35.5 | Level 2 |
Derivative instruments - Other | FATPL | 17.4 | 17.4 | Level 2 |
Other financial assets | FAAC | 38.0 | 38.0 | Level 2 |
Financial liabilities | ||||
Non-current liabilities | ||||
Financial liabilities | FLAC | 8,714.7 | 8,379.3 | Level 2 |
Other non current liabilities | ||||
Derivative instruments - Hedging | HeAc | 4.1 | 4.1 | Level 2 |
Derivative instruments - Other | FLTPL | 88.7 | 88.7 | Level 2 |
Other non current liabilities | FLAC | 1,545.2 | 1,545.2 | Level 2 |
Current liabilities | ||||
Financial liabilities | ||||
Other financial liabilities | FLAC | 1,654.6 | 1,675.9 | Level 2 |
Trade payables | FLAC | 857.4 | 857.4 | Level 2 |
Other current liabilities | ||||
Derivative instruments - Hedging | HeAc | 113.5 | 113.5 | Level 2 |
Derivative instruments - Other | FLTPL | 69.8 | 69.8 | Level 2 |
Other current liabilities | FLAC | 73.7 | 73.7 | Level 2 |
Analysis of financial instruments by category \u2013 income statements
The tables hereafter present the income and expenses before income taxes recognized in the income statement by categories of financial instruments. These tables analyze the income and expense lines containing financial instruments according to categories presented in columns. These distinguish, on the one hand, the categories applied by default to any item excluding hedge accounting and, on the other hand, the categories applied to any item falling within the scope of hedge accounting.
The IFRS 9 categories of amortized cost and fair value through profit or loss apply to the majority of non-hedge accounting items. Hedge accounting items are classified according to their fair value or cash flow hedging qualifications, distinguishing the values of hedged items and hedging instruments in columns and the types of risks hedged in rows. In addition, in order to ensure reconciliation between IFRS 9 classes and financial statements, this table includes a column containing the following non-IFRS 9 items: share-based payments (IFRS 2), mining assets (IFRS 6), inventories (IAS 2), income tax assets and liabilities (IAS 12), property, plant and equipment (IAS 16), finance lease liabilities (IFRS 16), defined benefit and short-term employee benefits assets and liabilities (IAS 19), grants (IAS\u00a020), provisions (IAS 37), intangible assets and prepaid expenses (IAS 38), stripping assets (IFRIC 20) and duties and taxes (IFRIC 21). The logic of classification of financial instruments in assets and liabilities is applied in transversally to their changes in income statement. For example, revenue is included in the amortized cost category, as its counterparties in trade receivables or cash and cash equivalents fall under this category on the asset\u00a0side.
2023
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 286.1 | - | - | - | - | - | 286.1 |
Other operating income (expenses) from investing activities | (62.5) | - | - | - | - | - | - | - | (62.5) |
Financial income (expenses) from investing activities | 189.7 | 91.3 | - | - | - | - | - | - | 280.9 |
Of which: Financial income | 303.7 | 93.9 | - | - | - | - | - | - | 397.6 |
Financial expenses | (114.0) | (2.6) | - | - | - | - | - | - | (116.7) |
Profit (loss) from investing activities - continuing operations | 127.1 | 91.3 | 286.1 | - | - | - | - | - | 504.5 |
Turnover | 6,137.1 | - | - | - | - | - | - | 0.2 | 6,137.3 |
Raw materials and consumables | (1,950.6) | - | - | (107.5) | - | - | - | (52.6) | (2,110.7) |
Other operating income (expenses) from operating activities | (1,471.4) | - | - | 10.2 | - | - | - | - | (1,461.2) |
Financial income (expenses) from operating activities | (211.7) | 0.4 | - | (17.1) | - | - | - | - | (228.4) |
Of which: Financial income | 83.1 | 0.4 | - | - | - | - | - | - | 83.5 |
Financial expenses | (294.8) | - | - | (17.1) | - | - | - | - | (311.9) |
Profit (loss) from consolidated operating activities - continuing operations | 2,503.3 | 0.4 | - | (114.4) | - | - | - | (52.4) | 2,336.9 |
2022
Non-hedge accounting | Hedge accounting | ||||||||
IFRS 9 Categories | Fair value | Cash flows | |||||||
In EUR\u00a0million | |||||||||
Amortized cost | Fair value through profit or loss | Fair value through equity | Out of IFRS 9 scope | Hedged item | Hedging instrument | Hedged item | Hedging instrument | Total | |
Net dividends from investments | - | - | 322.3 | - | - | - | - | - | 322.3 |
Other operating income (expenses) from investing activities | (74.3) | - | - | - | - | - | - | - | (74.3) |
Financial income (expenses) from investing activities | (490.0) | 94.6 | - | - | - | - | - | - | (395.4) |
Of which: Financial income | 168.7 | 119.0 | - | - | - | - | - | - | 287.7 |
Financial expenses | (658.7) | (24.4) | - | - | - | - | - | - | (683.1) |
Profit (loss) from investing activities - continuing operations | (564.3) | 94.6 | 322.3 | - | - | - | - | - | (147.4) |
Turnover | 5,623.4 | - | - | - | - | - | - | (0.1) | 5,623.3 |
Raw materials and consumables | (2,264.5) | - | - | 199.9 | - | - | - | 100.4 | (1,964.2) |
Other operating income (expenses) from operating activities | (1,548.7) | - | - | 18.1 | - | - | - | - | (1,530.6) |
Financial income (expenses) from operating activities | (362.9) | 5.8 | - | (11.0) | - | - | - | - | (368.1) |
Of which: Financial income | 36.9 | 5.8 | - | - | - | - | - | - | 42.7 |
Financial expenses | (399.9) | - | - | (11.0) | - | - | - | - | (410.9) |
Profit (loss) from consolidated operating activities - continuing operations | 1,447.3 | 5.8 | - | 207.0 | - | - | - | 100.3 | 1,760.4 |
Note 29Financial instruments
Fair value
The fair value of a financial instrument is the amount that would be received on selling the asset or paid on transferring a liability in an orderly transaction between market participants at the measurement date.
Underlying the definition of fair value is a presumption that an entity is a going concern without any intention or need to liquidate, to curtail materially the scale of its operations or to undertake a transaction on adverse terms. Fair value is not, therefore, the amount that an entity would receive or pay in a forced transaction, involuntary liquidation or distressed sale.
To reflect the importance of inputs used when measuring at fair value, the group classifies these valuations according to a hierarchy composed of\u00a0the\u00a0following levels:
level 1: listed prices (non-adjusted) on active markets for identical assets or liabilities;
level 2: inputs, other than the listed prices included in level 1, that are observable for the asset or liability concerned, either directly (i.e., prices) or\u00a0indirectly (i.e., derived from prices); and
level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f154211": { "value": "Note 30Subsidiaries in which GBL holds significant non-controlling interests
The tables below present concise financial information about each of the subsidiaries in which GBL holds significant non-controlling interests, without taking intragroup eliminations into account.
In EUR\u00a0million | Imerys | Canyon | Sanoptis | Subsidiaries that are not individually material | 2023 |
Ownership percentage held by non-controlling interests | 45.1% | 50.0% | 16.8% | ||
Voting rights held by non-controlling interests | 31.9% | 50.0% | 38.0% | ||
Non-current assets | 4,469.7 | 749.6 | 2,294.2 | ||
Current assets | 2,682.2 | 475.6 | 182.4 | ||
Non-current liabilities | 2,497.6 | 373.3 | 1,590.5 | ||
Current liabilities | 1,497.0 | 136.9 | 113.6 | ||
Non-controlling interests | 33.3 | - | - | ||
Equity (group\u2019s share) | 3,124.0 | 714.9 | 772.6 | ||
Non-controlling interests (including those of the subsidiary) | 1,442.1 | 346.9 | 128.9 | 60.1 | 1,978.0 |
Turnover | 3,794.4 | 790.6 | 494.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 28.2 | (6.2) | (47.1) | ||
Net result of the period attributable to the non-controlling interests | 25.6 | (7.1) | (9.6) | 10.9 | 19.9 |
Net result of the period (including non-controlling interests) | 53.8 | (13.3) | (56.7) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 38.2 | (4.6) | (0.1) | ||
Other comprehensive income attributable to the non-controlling interests | 29.3 | (4.6) | (0.0) | 0.6 | 25.2 |
Total of other comprehensive income (including non-controlling interests) | 67.5 | (9.3) | (0.2) | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 66.4 | (10.8) | (47.3) | ||
Total comprehensive income attributable to the non-controlling interests | 54.9 | (11.7) | (9.6) | 11.5 | 45.1 |
Total comprehensive income (including non-controlling interests) | 121.3 | (22.6) | (56.9) | ||
Dividends paid to the non-controlling interests | 152.1 | - | - | ||
Net cash flows from operating activities | (86.5) | 11.6 | (19.3) | ||
Net cash flows from investing activities | 167.5 | (24.6) | (428.4) | ||
Net cash flows from financing activities | (259.0) | 4.7 | 411.6 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (14.9) | - | 0.7 | ||
Increase/decrease of cash and cash equivalents | (193.0) | (8.3) | (35.4) |
In EUR\u00a0million | Imerys | Webhelp | Canyon | Sanoptis | Subsidiaries that are not individually material | 2022 |
Ownership percentage held by non-controlling interests | 45.0% | 38.7% | 50.4% | 16.5% | ||
Voting rights held by non-controlling interests | 31.9% | 38.7% | 50.4% | 37.0% | ||
Non-current assets | 4,357.4 | 3,505.6 | 751.7 | 1,846.8 | ||
Current assets | 3,513.6 | 990.6 | 483.9 | 176.7 | ||
Non-current liabilities | 2,465.6 | 3,879.3 | 367.1 | 1,100.2 | ||
Current liabilities | 2,020.0 | 792.1 | 123.2 | 77.5 | ||
Non-controlling interests | 47.5 | 1.0 | - | 5.0 | ||
Equity (group\u2019s share) | 3,337.9 | (176.2) | 745.2 | 841.1 | ||
Non-controlling interests (including those of the subsidiary) | 1,550.4 | 1.0 | 362.4 | 140.5 | 45.7 | 2,100.0 |
Turnover | 4,281.6 | 2,485.3 | 644.9 | 180.1 | ||
Net result of the period attributable to the shareholders of GBL (group\u2019s share) | 130.4 | (388.2) | 11.0 | (20.7) | ||
Net result of the period attributable to the non-controlling interests | 124.0 | 17.2 | 11.8 | (4.1) | 3.2 | 152.2 |
Net result of the period (including non-controlling interests) | 254.4 | (371.0) | 22.8 | (24.8) | ||
Other comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 7.9 | 26.9 | (0.2) | 2.2 | ||
Other comprehensive income attributable to the non-controlling interests | 15.9 | 17.2 | (0.2) | 0.4 | 0.2 | 33.5 |
Total of other comprehensive income (including non-controlling interests) | 23.8 | 44.1 | (0.4) | 2.6 | ||
Total comprehensive income attributable to the shareholders of GBL (group\u2019s share) | 138.2 | (361.3) | 10.8 | (18.5) | ||
Total comprehensive income attributable to the non-controlling interests | 139.9 | 34.4 | 11.7 | (3.6) | 3.4 | 185.7 |
Total comprehensive income (including non-controlling interests) | 278.2 | (326.9) | 22.4 | (22.2) | ||
Dividends paid to the non-controlling interests | 65.3 | - | - | - | ||
Net cash flows from operating activities | 440.7 | 276.3 | (111.9) | 77.9 | ||
Net cash flows from investing activities | (311.3) | (301.4) | 7.2 | (187.9) | ||
Net cash flows from financing activities | 76.2 | (0.5) | 96.0 | 188.2 | ||
Impact of exchange differences on funds held and impact of changes in scope of consolidation | (3.0) | (9.5) | - | 9.7 | ||
Increase/decrease of cash and cash equivalents | 202.6 | (35.2) | (8.7) | 88.0 |
In relation to GBL
Investment/subscription commitments
Following GBL\u2019s commitment to GBL Capital, the uncalled subscribed capital totaled EUR\u00a0752\u00a0million as of December\u00a031, 2023 (EUR\u00a0846\u00a0million at\u00a0the end of 2022).
Foreign dividends/double international taxation
The group has taken certain measures in order to preserve its interests in matters of double taxation on its foreign dividends.
GBL\u2019s consolidated subsidiaries
Operating lease commitments
The remaining off-balance sheet items are limited to contracts outside the scope of IFRS 16 on leases, notably mining leases and commitments to\u00a0purchase services associated with leases (EUR\u00a04\u00a0million as of December\u00a031, 2023).
Other commitments given and received
These commitments given and received solely concern Imerys, GBL Capital and Sienna Investment Managers.
Other commitments given primarily relate to:
operating activities, i.e., firm purchase commitments given by Imerys within the framework of contracts for the purchase of goods, services, energy\u00a0or transport (EUR\u00a0181\u00a0million compared with EUR\u00a0113\u00a0million in 2022);
cash, i.e., corresponding to letters of credit and guarantees, mortgages and pledges obtained by Imerys from financial institutions to guarantee operating cash flow needs for their clients (EUR\u00a038\u00a0million compared with EUR\u00a063\u00a0million in 2022); and
other obligations (EUR\u00a076\u00a0million compared with EUR\u00a0192\u00a0million in 2022).
Commitments received totaled EUR\u00a0364\u00a0million as of December\u00a031, 2023 (EUR\u00a0470\u00a0million as of December\u00a031, 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f155510": { "value": "Note 31Contingent assets and liabilities, rights and commitmentsIn relation to GBL
Investment/subscription commitments
Following GBL\u2019s commitment to GBL Capital, the uncalled subscribed capital totaled EUR\u00a0752\u00a0million as of December\u00a031, 2023 (EUR\u00a0846\u00a0million at\u00a0the end of 2022).
Foreign dividends/double international taxation
The group has taken certain measures in order to preserve its interests in matters of double taxation on its foreign dividends.
GBL\u2019s consolidated subsidiaries
Operating lease commitments
The remaining off-balance sheet items are limited to contracts outside the scope of IFRS 16 on leases, notably mining leases and commitments to\u00a0purchase services associated with leases (EUR\u00a04\u00a0million as of December\u00a031, 2023).
Other commitments given and received
These commitments given and received solely concern Imerys, GBL Capital and Sienna Investment Managers.
Other commitments given primarily relate to:
operating activities, i.e., firm purchase commitments given by Imerys within the framework of contracts for the purchase of goods, services, energy\u00a0or transport (EUR\u00a0181\u00a0million compared with EUR\u00a0113\u00a0million in 2022);
cash, i.e., corresponding to letters of credit and guarantees, mortgages and pledges obtained by Imerys from financial institutions to guarantee operating cash flow needs for their clients (EUR\u00a038\u00a0million compared with EUR\u00a063\u00a0million in 2022); and
other obligations (EUR\u00a076\u00a0million compared with EUR\u00a0192\u00a0million in 2022).
Commitments received totaled EUR\u00a0364\u00a0million as of December\u00a031, 2023 (EUR\u00a0470\u00a0million as of December\u00a031, 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f155511": { "value": "Note 31Contingent assets and liabilities, rights and commitmentsIn relation to GBL
Investment/subscription commitments
Following GBL\u2019s commitment to GBL Capital, the uncalled subscribed capital totaled EUR\u00a0752\u00a0million as of December\u00a031, 2023 (EUR\u00a0846\u00a0million at\u00a0the end of 2022).
Foreign dividends/double international taxation
The group has taken certain measures in order to preserve its interests in matters of double taxation on its foreign dividends.
GBL\u2019s consolidated subsidiaries
Operating lease commitments
The remaining off-balance sheet items are limited to contracts outside the scope of IFRS 16 on leases, notably mining leases and commitments to\u00a0purchase services associated with leases (EUR\u00a04\u00a0million as of December\u00a031, 2023).
Other commitments given and received
These commitments given and received solely concern Imerys, GBL Capital and Sienna Investment Managers.
Other commitments given primarily relate to:
operating activities, i.e., firm purchase commitments given by Imerys within the framework of contracts for the purchase of goods, services, energy\u00a0or transport (EUR\u00a0181\u00a0million compared with EUR\u00a0113\u00a0million in 2022);
cash, i.e., corresponding to letters of credit and guarantees, mortgages and pledges obtained by Imerys from financial institutions to guarantee operating cash flow needs for their clients (EUR\u00a038\u00a0million compared with EUR\u00a063\u00a0million in 2022); and
other obligations (EUR\u00a076\u00a0million compared with EUR\u00a0192\u00a0million in 2022).
Commitments received totaled EUR\u00a0364\u00a0million as of December\u00a031, 2023 (EUR\u00a0470\u00a0million as of December\u00a031, 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300KV0ZEHT2KVU152", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f155740": { "value": "Note 32Transactions with related partiesExternal related parties to GBL
GBL\u2019s related parties are the Canadian group Power Corporation of Canada and the Belgian group Fr\u00e8re. These groups are for GBL the ultimate group heads. Through their joint venture Parjointco SA, they exercise joint control over the Swiss group Pargesa SA which controls GBL. Pargesa SA is as such a related party of GBL. There is no contract between GBL and Pargesa SA.
As of December\u00a031, 2023 and 2022, there were no transactions with these related parties, except for the provision of services to the Fr\u00e8re and Power Corporation of Canada groups for an amount of EUR\u00a01\u00a0million as of December\u00a031, 2023 (EUR\u00a01\u00a0million as of December\u00a031, 2022).
Directors\u2019 remunerations
The remunerations paid to the Directors are shown in the table below:
In EUR\u00a0million | 2023 | 2022 |
Remunerations, charges and short-term benefits\u00a0 | 3.9 | 3.3 |
Post-employment benefits | 0.4 | 0.5 |
Costs related to cash-settled share-based payments | (0.7) | (1.1) |
Other | 0.1 | 0.1 |
Total | 3.5 | 2.7 |
Directors\u2019 remunerations
The remunerations paid to the Directors are shown in the table below:
In EUR\u00a0million | 2023 | 2022 |
Remunerations, charges and short-term benefits\u00a0 | 3.9 | 3.3 |
Post-employment benefits | 0.4 | 0.5 |
Costs related to cash-settled share-based payments | (0.7) | (1.1) |
Other | 0.1 | 0.1 |
Total | 3.5 | 2.7 |
GBL\u2019s consolidated and statutory financial statements for this year have been audited and approved without qualifications by the Statutory Auditor PwC Reviseurs d\u2019Entreprises.
In accordance with article 3:65 of the Code on companies and associations, the fees for the services provided by the Statutory Auditor PwC Reviseur d\u2019Entreprises and its network were as follows:
In EUR\u00a0 | 2023 | 2022 |
Audit assignment | 6,720,989 | 5,244,000 |
of which GBL | 91,000 | 91,000 |
Other attest assignments | 1,116,072 | 271,286 |
Tax consultancy assignments | 1,235,847 | 672,482 |
Other assignments not related to the audit assignment | 1,637,156 | 384,579 |
Total | 10,710,064 | 6,572,347 |
Of which: Holding | 881,351 | 970,158 |
Imerys | 3,731,548 | 3,508,966 |
Webhelp | 1,185,512 | 1,516,759 |
Canyon | 18,000 | 13,000 |
Affidea | 3,125,525 | 10,350 |
Sanoptis | 762,775 | 0 |
GBL Capital and SIM | 1,005,353 | 553,114 |