Arcadis N.V. is a public company organized under Dutch law. Its statutory seat is Amsterdam and its principal office is located at:
Gustav Mahlerplein 97\u00a0
1082 MS Amsterdam\u00a0
The Netherlands
Arcadis N.V. and its consolidated subsidiaries (\u2018Arcadis\u2019, \u2018the Group\u2019 or \u2018the Company\u2019) is a leading global Design & Consultancy firm for natural and built assets. Applying deep market sector insights and collective design, consultancy, engineering, project and management services, the Group works in partnership with clients to deliver exceptional and sustainable outcomes throughout the lifecycle of their natural and built assets.
In accordance with Articles 2:379 and 414 of the Dutch Civil Code, the list of subsidiaries and investments accounted for using the equity method is filed with the Chamber of Commerce in Amsterdam, the Netherlands.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1001m1001p": { "value": "Arcadis N.V.", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1808m1412p": { "value": "public company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1810m1414p": { "value": "Amsterdam", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3056m1413p": { "value": "Amsterdam", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1811m1415p": { "value": "Gustav Mahlerplein 97\u00a01082 MS Amsterdam\u00a0The Netherlands", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3324m1005p": { "value": "The Netherlands", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1813m1416p": { "value": "leading global Design & Consultancy firm for natural and built assets", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1815m1004p": { "value": "\n\n\nThe Consolidated financial statements have been prepared on historical cost basis, except for the following items, which are measured at a different basis on each reporting date:
derivative financial instruments and share-based compensation arrangements, which are measured at fair value;
net defined benefit (asset)/liability, which is measured at the fair value of plan assets less the present value of the defined benefit obligation;
contingent consideration assumed in a business combination, which is measured at fair value; and
financial assets at fair value through profit or loss, which are measured at fair value.
For more detailed information on the measurement basis, reference is made to the significant accounting policies as included in the relevant notes to the Consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1004m1003p": { "value": "\n\n\nThe Consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as adopted by the European Union and in conformity with Part 9 of Book 2 of the Dutch Civil Code. In accordance with sub 8 of article 362, Book 2 of the Dutch Civil Code, the Company financial statements are prepared based on the accounting principles of recognition, measurement and determination of profit, as applied in the Consolidated financial statements. These principles also include the classification and presentation of financial instruments, being equity instruments or financial liabilities.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1002m1002p": { "value": "\n\n\nThe Consolidated financial statements were authorized for issue by the Executive Board and Supervisory Board on 12 February 2025. The Consolidated financial statements as presented in this Annual Integrated Report are subject to adoption by the General Meeting of Shareholders, to be held on 16 May 2025.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1814m1417p": { "value": "\n\n\nThe Consolidated financial statements include the accounts of Arcadis N.V. and its subsidiaries, and the Company\u2019s interests in jointly controlled entities and associates. Intra-group balances and transactions, any unrealized gains and losses or income and expenses arising from intra-group transactions are eliminated in preparing the Consolidated financial statements. Unrealized gains arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Company\u2019s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1821m1420p": { "value": "\n\n\nThe Consolidated financial statements are presented in euros, which is the Company\u2019s functional and reporting currency. The financial statements presentation for the current period has been changed from thousands to millions of euros. It ensures more relevant reporting for the users of the financial statements and aligns with market practice considering the increasing size of the Group operations over the years, especially after major recent acquisitions. Comparative figures have been presented accordingly (rounded up to the nearest whole number) and this does not affect the financial position, financial performance, nor cash flows of the Group.
Amounts in the financial statements are presented as a hyphen (\u2018\u2013\u2018) when the amounts reported are nil balances. Amounts shown as zero (\u20180\u2019) represent balances lower than 0.5 million. Items included in the financial information of each of Arcadis\u2019 entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). If the functional currency of a (foreign) subsidiary, joint venture or associate is not the euro, foreign currency exchange differences arising from translation are recognized as translation differences in Other comprehensive income and presented in the Translation reserve in equity.
\n\n\nTransactions in foreign currencies are translated into the functional currency of entities using the foreign exchange rate at transaction date. The functional currency of the foreign entities is in general the local currency. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency of the entity using the exchange rates at the balance sheet date.
Exchange rate differences are included in profit or loss. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.
\n\n\nThe assets and liabilities of foreign operations, including Goodwill and fair value adjustments arising on acquisitions, are translated to euros at exchange rates at the reporting date. The income and expenses of foreign operations are translated into euros using average exchange rates, approximating the foreign exchange rates at transaction date.
Translation differences are recognized in Other comprehensive income and presented in the Translation reserve in Equity. For subsidiaries not wholly owned, the relevant proportionate share of the translation difference is allocated to the non-controlling interests. When a foreign operation is disposed of, in part or in full, the relevant amount in the Translation reserve is transferred to profit or loss as part of the gain or loss on disposal.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3538m1436p": { "value": "\n\n\nThe Consolidated financial statements are presented in euros, which is the Company\u2019s functional and reporting currency. The financial statements presentation for the current period has been changed from thousands to millions of euros. It ensures more relevant reporting for the users of the financial statements and aligns with market practice considering the increasing size of the Group operations over the years, especially after major recent acquisitions. Comparative figures have been presented accordingly (rounded up to the nearest whole number) and this does not affect the financial position, financial performance, nor cash flows of the Group.
Amounts in the financial statements are presented as a hyphen (\u2018\u2013\u2018) when the amounts reported are nil balances. Amounts shown as zero (\u20180\u2019) represent balances lower than 0.5 million. Items included in the financial information of each of Arcadis\u2019 entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). If the functional currency of a (foreign) subsidiary, joint venture or associate is not the euro, foreign currency exchange differences arising from translation are recognized as translation differences in Other comprehensive income and presented in the Translation reserve in equity.
\n\n\nTransactions in foreign currencies are translated into the functional currency of entities using the foreign exchange rate at transaction date. The functional currency of the foreign entities is in general the local currency. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency of the entity using the exchange rates at the balance sheet date.
Exchange rate differences are included in profit or loss. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.
\n\n\nThe assets and liabilities of foreign operations, including Goodwill and fair value adjustments arising on acquisitions, are translated to euros at exchange rates at the reporting date. The income and expenses of foreign operations are translated into euros using average exchange rates, approximating the foreign exchange rates at transaction date.
Translation differences are recognized in Other comprehensive income and presented in the Translation reserve in Equity. For subsidiaries not wholly owned, the relevant proportionate share of the translation difference is allocated to the non-controlling interests. When a foreign operation is disposed of, in part or in full, the relevant amount in the Translation reserve is transferred to profit or loss as part of the gain or loss on disposal.
\n\n\nThe carrying amounts of the assets of Arcadis, other than Contract assets and liabilities, Deferred tax assets and Financial instruments, are reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, then the assets recoverable amount is estimated. Goodwill and other assets that have an indefinite useful life are tested annually for impairment, and when an impairment trigger is identified.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (CGUs). Goodwill arising from a business combination is allocated to Groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount is the greater of the fair value less costs to sell and value in use. In assessing the value in use, estimated future cash flows are discounted to present values using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss is recognized whenever the carrying amount of an asset or its CGU exceeds its recoverable amount.
Impairment losses are recognized in the income statement. Impairment losses recognized regarding CGUs are allocated first to reduce the carrying amount of any goodwill allocated to CGUs and then to reduce the carrying amount of the other assets in the unit on a pro-rata basis.
An impairment loss of goodwill is not reversed. Regarding other assets, an impairment loss can be reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
\n\n\nFinancial assets include trade receivables, other receivables and loans and borrowings. Loans, receivables, and deposits are recognized on the date they are originated. All other financial assets are recognized initially on trade date when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.
All financial instruments are initially measured at fair value plus or minus, in the case of a financial asset not at fair value through profit or loss, transaction costs. The Group classifies its financial assets as those to be measured subsequently at fair value (either through Other comprehensive income or through profit or loss) or those to be measured at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of the financial assets at initial recognition, based on the business model for managing the assets and the contractual terms of the cash flows, and assesses the designation at each reporting date.
\n\n\nFinancial assets and liabilities are offset and reported as a net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
\n\n\nThe Cash flow statement has been prepared using the indirect method. Cash flows in foreign currencies have been translated into euros using average exchange rates, approximating the foreign exchange rate at transaction date. Exchange rate differences on cash items are shown separately in the Cash flow statement. Receipts and payments with respect to income tax and interest are included in the Cash flows from operating activities. The cost of acquisition of subsidiaries, associates and joint ventures, and other investments, insofar as it was paid for in cash, is included in Cash flows from investing activities. Acquisitions or divestments of subsidiaries are presented net of cash balances acquired or disposed of, respectively. Cash flows from derivatives are recognized in the Cash flow statement in the same category as those of the hedged item.
\n\nAn operating segment is a component of the Company that engages in business activities that can result in revenue and expenses, including revenues and expenses related to transactions with other components of the same Company.
The operating segment reporting follows the internal reporting used by the Executive Board of the Company, to manage the business, assess the performance based on the available financial information and to allocate the resources.
Inter-segment pricing is determined on an arm\u2019s length basis. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
\nSubsidiaries are all companies over which the Company has control. Control over an entity exists when the Company is exposed to, or has right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control commences until the date on which control ceases.
\n\n\nUpon the loss of control, the assets and liabilities, non-controlling interests and other components of equity related to the subsidiary are derecognized. Any profit or loss arising on the loss of control is recognized in profit or loss. If a non-controlling interest in the subsidiary is retained, such interest is measured at fair value at the date control is lost. Subsequently, it is accounted for as an equity-accounted investee or as a financial asset, depending on the level of influence retained.
\n\n\nThe Company accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Company. In determining whether a particular set of activities and assets is a business, the Company assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.
IFRS 3 establishes the following principles in relation to the recognition and measurement of items arising in a business combination:
Recognition principle: Identifiable assets acquired, liabilities assumed, and non-controlling interests in the acquiree are recognized separately from goodwill. Acquired intangible assets must be recognized and measured at fair value in accordance with the principles if it is separable or arises from other contractual rights, irrespective of whether the acquiree had recognized the asset prior to the business combination occurring. The Group does not recognize contingent assets acquired in a business combination.
Measurement principle: All assets acquired and liabilities assumed in a business combination are measured at acquisition-date fair value.
Goodwill at acquisition date is measured as the fair value of the consideration transferred plus the recognized amount of any non-controlling interest in the acquiree less the net recognized amount (fair value) of the identifiable assets acquired and liabilities assumed.
Lease liabilities of acquired leases are measured at the present value of the remaining lease payments as if the acquired lease were a new lease at the acquisition date. Right-of-use asset is measured at the same amount as the lease liability, adjusted to reflect favourable or unfavourable terms of the lease when compared with market terms. Right-of-use assets and lease liabilities for leases for which the lease term ends within 12 months of the acquisition date and the underlying asset is of low value are not recognized.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are recognized in profit or loss.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities incurred in connection with the business combination, are expensed.
Contingent consideration payable is recognized at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured, and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognized in profit or loss.
If the Company obtains control of a business that is a joint operation, it remeasures previously held interests in that business.
Revenue is recognized by the Group following the five-step model in IFRS 15, consisting of:
identification of the contract;
identification of the performance obligations in the contract;
determination of the transaction price;
allocation of the transaction price to performance obligations in the contract, and
recognition of revenue.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties (e.g. VAT). It includes initial amounts agreed in the contract plus any variations in contract work and variable consideration, to the extent that it is highly probably that its inclusion will not result in a significant revenue reversal in the future when the uncertainty has been subsequently resolved.
The Group recognizes revenue when it transfers control over a product or service to a customer. For performance obligations that are transferred over time, revenue is recognized in profit or loss in proportion to the percentage of completion of the transaction at reporting date. The percentage of completion is measured by actual (labor) costs incurred in relation to total estimated (labor) costs (input method). In the Group\u2019s view this best reflects the value delivered to the customer in a business that mainly uses human and intellectual capital (of its employees) for completion of the performance obligations towards the customer.
For performance obligations that are transferred at a point in time, revenues and costs are recognized in profit or loss when the customer receives the ability to direct the use of the asset and substantially obtains all the benefits of it.
\n\n\nRevenue from (software) licenses is recognized over time, based on time elapsed, in case of a \u2018right to access\u2019. It is recognized at a point in time in case of a \u2018right to use\u2019, but not before the beginning of the license period. Revenue from Software as a Service (SaaS) is treated as a right to access and is recognized over time, based on time elapsed.
\n\n\nContract costs include the costs to fulfil a contract, such as direct labor, costs of materials, services of third parties and subcontractors, and costs that are explicitly chargeable to the customer under the contract. They are recognized as an asset in Contract assets and liabilities, if they are expected to be recovered.
Costs to obtain a contract are only recognized as a contract cost asset in Contract assets and liabilities if they are incremental and expected to be recovered. They are recognized on a systemic basis consistent with the recognition of costs to fulfill a contract.
\n\n\nEstimates of project management are used to assess the progress and estimated outcome of a performance obligation. When it becomes probable that the total expected costs to complete all performance obligations in a contract exceed the total transaction price (consideration) of these performance obligations, a provision for onerous contracts is recognized for the lower of the unavoidable costs and the costs of termination.
\n\n\nArcadis generally does not have any significant contracts where the period between the transfer of the promised goods or services to customer and the payment by the customer, as contractually agreed, exceeds one year. If applicable, the transaction price is adjusted for the time value of money. Payments of customers after the agreed payment term are covered by the accounting policy on Trade receivables, see note 21.
\n\n\nFor each performance obligation the Group assesses whether the nature of Arcadis\u2019 commitment is to provide the goods and/or services itself, or to arrange for those good(s) and/or service(s) to be provided by another party. Arcadis assesses whether it controls the specified good(s) and/or service(s) before it is transferred to the customer.
Arcadis is typically a principal in case of subcontracted work, as Arcadis is primarily responsible for fulfilling the promise to provide the specified good(s) and/or service(s) and bears primary responsibility for it meeting customer specifications and has discretion in establishing the price towards the customer. When Arcadis acts as an agent, only the fee/commission is recognized on a net basis in Gross revenues.
\n\n\nGross revenues consist of external revenues net of value-added tax, rebates and discounts and after eliminating sales within the Group. Net revenue is a non-GAAP performance measure, which represents revenue generated by own staff. It is a sub-total calculated as Gross revenue minus Materials, services of third parties and subcontractors, which are project-related costs of materials and services charged by third parties, including cost of subcontractors.
Other income (expense) includes results that arise from events or transactions that are clearly distinct from the ordinary activities of the Company. Gains on the sale of assets are recognized as part of Other income (expense).
All employee-related costs as well as non-project-related out-of-pocket expenses and related restructuring costs, are recognized as operational cost as incurred.
Operational costs include, amongst others, the costs of licenses, testing, data conversation and training costs relating to Cloud computing arrangements that do not provide control over an intangible asset. Part of these costs could be personnel costs if the activities are performed by Arcadis\u2019 personnel.
The Company operates share-based incentive plans. The fair value of equity-settled compensations at grant date under the Arcadis long-term incentive plan is recognized as an employee expense (in Salaries and wages), with a corresponding increase in equity, over the vesting period. The amount recognized as an expense is adjusted to reflect the actual number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized as expense is based on the actual number of awards meeting these vesting conditions.
The fair value of granted shares subject to a market condition is measured using a Monte Carlo simulation model. Measurement inputs include the share price on measurement date, the expected volatility, weighted average expected life of the instrument and the risk-free interest rate.
As the fair value is amortized over the vesting period, the costs are recognized in the Income Statement. The amortization costs are adjusted for effects of cancelled and forfeited grants. The vesting and exercise of rights to acquire shares may be conditional to performance conditions and other conditions, as set by the Supervisory Board.
\n\nNet finance expenses comprise finance income, finance expenses and the fair value change of derivatives at fair value through profit or loss. Finance income comprises interest income on funds invested and finance expenses comprise interest expense on borrowings, and the unwinding of discount on provisions and contingent consideration.
Finance income and finance expenses are recognized in profit or loss, using the effective interest method. The fair value changes of derivatives comprise the fair value changes on financial assets at fair value through profit or loss, as far as these relate to financing items in the Company. These fair value changes are partially offset by the foreign currency gains and losses.
Foreign currency gains and losses are reported on a net basis as either finance income or finance expense if it concerns exchange rate results on financing items. Exchange rate results on operating items are included in Other operational costs (see note 9).
\nIncome taxes comprise current and deferred tax. Income tax is recognized in profit or loss, except to the extent that the tax arises from items recognized in other comprehensive income, directly in equity or from a business combination.
When the Group considers it probable that tax authorities accept a tax treatment it will be treated as such in the income tax filings. When it is not considered probable that a tax treatment is accepted, the Group uses the most likely amount or the expected value of the tax treatment
\n\n\nCurrent tax is the expected tax payable on taxable income for the year and adjustments to tax payable related to previous years. It is measured using the tax rates enacted or substantively enacted at the reporting date. The difference between income tax recognized in profit or loss and income tax paid in the cash flow statement differs primarily due to deferred tax recognized on temporary differences and payment of income tax occurring after the reporting date.
\n\n\nDeferred tax is recognized using the balance sheet method and it is not recognized for:
the initial recognition of goodwill;
the initial recognition of assets or liabilities that affect neither accounting nor taxable profit or loss; and
investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.
Measurement of deferred tax is based upon tax rates enacted or substantially enacted expected to be applied in the years in which the temporary differences are expected to reverse. Deferred taxes are not discounted.
A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future profits will be available against which they can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
\nBasic earnings per share is calculated by dividing the profit or loss attributable to the equity holders of the Company by the weighted average number of shares outstanding during the period, excluding ordinary shares purchased by the Company and held as treasury shares (i.e. shares purchased to cover share/option plans).
Diluted earnings per share is calculated based on the basic earnings per share and using the weighted average number of shares and options outstanding during the period as far as these have a potential dilutive effect, i.e. when the exercise price of these options is lower than the share price. The average number of potentially diluted shares is based on the average share price in the period on the Euronext Amsterdam Stock Exchange and the options that were in the money.
\n\n\nGoodwill arises from business combinations and represents the excess of the cost of the acquisition over the Company\u2019s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquired company. Goodwill in respect of equity accounted investees is included in the carrying amount of the investment. Goodwill is measured at cost less accumulated impairment losses.
\n\n\nOther intangible assets mainly consist of customer relationships, trade names and expected profits in the backlog of acquired companies at the acquisition date. Measurement of Other intangible assets acquired in a business combination involves the use of estimates for determining the fair value at acquisition date. This mainly relates to expected profits in the backlog of the acquired companies, the customer lists at the acquisition date and the trade name value. The fair value is based on discounted cash flows expected to be received from these identifiable intangible assets. Subsequently, the assets are amortized over the estimated useful life. The amortization is recognized in profit or loss on a straight-line basis, except for the backlog which is calculated based on the expected pattern of consumption of future economic benefits embodied in the backlog. The amortization methods and useful lives, as well as residual values, are reassessed annually.
\n\n\nSoftware is measured at cost less accumulated amortization and impairment losses. Software has a finite life and is amortized on a straight-line basis over the estimated useful life. The amortization methods and useful lives, as well as residual values, are reassessed annually. Subsequent costs are recognized in the carrying amount of Software only when it increases the future economic benefits. All other expenditures are recognized in profit or loss as incurred.
Configuration and customization costs relating to cloud computing arrangements, whereby the Company does not obtain an intangible asset, are expensed when incurred. In such case, prepaid licenses are recognized as prepaid expenses (as part of Other current assets) and testing, training and data conversion costs are recognized as Personnel costs and/or Other operational costs as incurred.
\n\n\nThe estimated useful lives of Goodwill and Intangible assets varies according to their respective categories, as shown below.
| \n Category | \n \n Years | \n
| \n Goodwill | \n \n Not amortized | \n
| \n Software | \n \n 0.5 \u2013 10 | \n
| \n Other intangibles | \n \n 1 \u2013 13 | \n
| \n Intangibles under development | \n \n Not amortized (yet) | \n
Property, plant & equipment is measured at cost less accumulated depreciation and impairment losses. Costs include expenditures that are directly attributable to the acquisition of the assets.
Subsequent costs are recognized in the carrying amount of Property, plant & equipment if it is probable that future economic benefits will be obtained. The costs of day-to-day servicing of property, plant & equipment are expensed as incurred.
Depreciation is calculated using the straight-line method to allocate the cost of an asset net of its residual value, over its estimated useful life or, in the case of leasehold improvements, the shorter of the asset's useful life and the lease term. The estimated useful life of Property, plant & equipment vary according to their respective categories, as shown in the table hereafter.
| \n Category | \n \n Years | \n
| \n Land | \n \n Not depreciated | \n
| \n Buildings | \n \n Not exceeding 30 | \n
| \n Furniture and fixtures | \n \n Not exceeding 5 | \n
| \n (IT) equipment | \n \n Not exceeding 5 | \n
| \n Property, plant and equipment under development | \n \n Not depreciated (yet) | \n
Depreciation methods and useful life, as well as residual values, are reassessed annually. When parts of an item of Property, plant & equipment have different useful life, they are accounted for as separate items (major components) of Property, plant & equipment.
Gains on the sale of an item of Property, plant & equipment are determined by comparing the proceeds from disposal with the carrying amount of Property, plant & equipment and are recognized within Other income in the Consolidated income statement. Losses on the sale of an item of Property, plant & equipment are recognized within Other operational costs in the Consolidated income statement.
The determination of impairment of Property, plant & equipment involves the use of estimates. The recoverable amount is determined by discounting the estimated future cash flows to present value using a discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset. The identification of impairment indicators, as well as the estimation of future cash flows, discount rates and the determination of the fair value for the assets requires management to make significant judgements
A contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control is conveyed when the Group has both the right to direct the identified asset\u2019s use and to obtain substantially all the economic benefits from that use.
Contracts may contain both lease and non-lease components. The Group allocates the consideration to these components based on its relative stand-alone prices. Non-lease components are not included in the right-of-use asset and lease liability but accounted for separately.
\n\n\nAt commencement of a lease, the Group measures right-of-use assets initially at cost, and subsequently at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability.
The cost of the right-of-use assets comprise the following:
Amount of the initial measurement of the lease liability;
Any lease payments made at or before the commencement date less any lease incentives received at or after the commencement date;
Any initial direct costs; and
Restoration costs i.e estimate of the costs to be incurred for dismantling, removal and/ or restoration to the conditions required by the terms of the lease.
See note 28 for the accounting policy on provisions for right-of-use assets (restoration provisions).
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.
\n\n\nLease liabilities are initially measured at the present value of the future lease payments that are not paid at the commencement date discounted using an implicit rate of interest, unless this cannot readily be determined, in which case an incremental borrowing rate is used. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate or the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.
Judgment is applied to determine the lease term for some lease contracts in which it is a lessee that include renewal and termination options. The assessment of whether the Group is reasonably certain to exercise such option impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognized. At reporting date all facts and circumstances are considered that create an economic incentive in determining whether it is reasonably certain that an extension or termination option will be recognized. Changes in the estimate are recognized prospectively.
\n\n\nThe Incremental Borrowing Rate (IBR) is determined based on a build-up approach, whereby each category of leases has an IBR based on the country (and currency) of the lessee and the lease term.
\n\n\nLease incentives are deducted from the right of use assets if received before the commencement date of the lease; they are deducted from the lease liability if received at or after the commencement date of the lease.
Amounts received for leasehold improvements are depreciated over a period not longer than the lease term.
\n\n\nPayments associated with short-term and/or low value leases are recognized on a straight-line basis as an expense in profit or loss.
\n\n\nThe Group sub-leases some of its buildings, although not significant. The head leases are presented in the right-of-use assets and the sub-lease contracts are treated as operating leases under IFRS 16. Income from sub-leases is presented in Other income, see note 8.
\n\n\nRent concessions are accounted for as lease modifications by the Group.
\n\n\nInvestments in joint arrangements are classified as either joint ventures or joint operations. The classification depends on the contractual rights and obligations, rather than the legal structure of the joint arrangement.
Joint ventures are joint arrangements in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. Joint ventures are accounted for using the equity method, where interests in joint ventures are initially recognized at cost, including transaction cost. Subsequently the Group\u2019s share of the profit or loss and movements in other comprehensive income are included in the Consolidated financial statements, whereby the calculation is based on the Group\u2019s accounting policies. When the Group\u2019s share of losses in a joint venture equals or exceeds its interest in a joint venture, the Group does not recognize further losses.
Joint operations are joint arrangements whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operations are accounted for the Group\u2019s direct rights to the assets, liabilities, revenues and expenses of the joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These are combined on a line-by-line basis with corresponding items in the Group\u2019s financial statements.
\n\n\nAssociates are those entities in which the Group has significant influence, but no control over financial and operating policies. Significant influence is presumed to exist when the Group holds more than 20% of the voting power of the entity. Associates are accounted for using the equity method from the date that significant influence commences until the date that significant influence ceases. Initially, investments in associates are recognized at cost, including transaction cost. Goodwill identified on the acquisition of the associate is included in the carrying amount of the investment.
The Consolidated financial statements include the Group\u2019s share of the net profit or loss and other comprehensive income of the associates, after adjustments to align the accounting policies with those of the Group. The application of the equity method is applied to loans that form part of a Net investment. Loans to associates are carried at amortized cost less any expected credit losses. The Group applies the Expected Credit Loss model to loans that form part of the Net investment, before recognizing its share of losses from application of the equity method on these loans.
\n\nOther investments relate to interests in companies over which the Group has no significant influence nor control. Other investments are accounted for at fair value through profit or loss.
\nThe Group uses derivatives in order to hedge the exposure to foreign exchange risks and interest rate risks arising from operational, financing and investment activities. Derivatives to be used for hedging purposes can include forward foreign exchange rate contracts, foreign exchange swaps and interest rate swaps and a combination of those, such as cross-currency interest rate swaps. The Group does not hold or issue derivatives for trading purposes. To the extent possible Hedge accounting is applied for cash flow hedges related to forecasted transactions and fair value hedges.
\n\n\nAll derivative financial instruments are initially recognized at fair value. Attributable transaction costs are recognized in profit or loss when incurred. Subsequently, derivatives are measured at fair value derived from market prices of the instruments or valuation techniques, with the fair value changes recognized in profit or loss, unless hedge accounting is applied. A gain or loss on remeasurement to the fair value of the interest rate derivatives is recognized in profit or loss under fair value change of derivatives. The fair value changes of forward foreign exchange contracts are recognized in operating income. The carrying values of the derivatives are recognized in the balance sheet as derivatives, which can be classified as current or non-current assets or liabilities, depending on the maturity of the contracts.
\n\n\nFor a cash flow hedge of a forecasted transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported profit or loss. In specific cases hedge accounting is applied for cash flow hedges. In that case, the effective part of the fair value change of those derivatives is deferred in Other comprehensive income and presented in the hedging reserve in Equity. The hedging reserve includes the cash flow hedge reserve and the costs of hedging. Changes in the fair value of the currency basis since the inception of the hedging relationship will be deferred into a separate component of Other comprehensive income.
The amount recognized in Other comprehensive income as cash flow hedge reserve is released to the related lines in profit or loss at the same time as the hedged cash flows affect profit or loss. Any ineffective portion of change in the fair value of the derivatives is included in profit or loss immediately.
At inception of the hedge, the relationship between the hedging instrument and the hedged item is documented \u2013 including the risk management objectives, strategy of undertaking the hedge transaction, the hedged risk \u2013 and, in case of hedge accounting, the methods that will be used to assess the effectiveness of the hedge. Both at the inception of the hedge and at each reporting date, the Group makes an assessment whether the derivatives used are highly effective in offsetting changes in fair values of the cash flows of the hedged items.
The economic relationship between the hedging instrument and the hedged item is, amongst others, determined based upon matching notional amounts, a minimal fair value of the hedging instrument at inception, matching the underlying hedged risk (interest benchmark rate or currency pair), matching repricing and payment dates and an assessment of the likelihood of default of the hedging counterparty. Sources of ineffectiveness can, amongst others, be driven by movements in the credit spread of Arcadis and the relevant hedging counterparty, mismatch of payment flow frequencies, mismatch of interest conditions, such as interest floors and possible changes to the critical terms of the economic relationship.
When a derivative ceases to be highly effective or in case of early redemption of the hedged item, hedge accounting is discontinued prospectively. When a cash flow hedge relationship is terminated, the fair value changes deferred in the cash flow hedging reserve in equity are released to profit or loss under the fair value change of derivatives only when the hedged transaction is no longer expected to occur. Otherwise, these fair value changes will be released to profit or loss at the same time as the hedged item.
\n\n\nA fair value is the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of derivatives is determined by using valuation models that incorporate various inputs, such as forward interest rate curves and the credit worthiness of counterparties. The methods and assumptions used to estimate the fair value are consistent with the prior year.
Other non-current assets are non-derivative financial assets and include long-term receivables (due for settlement\u00a0after one year). Long-term receivables are initially recognized at fair value plus any directly attributable transaction costs. Subsequently these assets are held at amortized cost, using the effective interest method and net of any impairment losses.
Trade receivables include amounts billed to customers for work performed but not yet paid by the clients, and which are expected to be collected within a year after reporting date. Trade receivables are initially measured at fair value, which normally represents the consideration the Company expects to receive within the payment term (invoice amount excluding costs collected on behalf of third parties, such as sales taxes). Subsequently Trade receivables are measured at the consideration expected to be collected.
The Company uses the Expected Credit Loss (ECL) model. Trade receivables are reviewed for collectability on a case-by-case basis at regular intervals. If a Trade receivable is considered credit impaired (e.g. the customer has failed to make a payment when contractually due) the expected loss is determined as the difference between the carrying amount and the recoverable amount. The recoverable amount is the present value of expected future cash flows discounted at the effective market interest rates.
A simplified approach is applied that uses a lifetime expected loss allowance to recognize losses for possible impairment of Trade receivables that are not individually impaired yet. The Expected Credit Loss is recognized in Other operational costs.
When revenue (cost for contract work performed to date plus recognized profits) exceeds the progress billings, the surplus is shown as a Contract asset (unbilled receivables). When progress billings exceed the revenue (cost for contract work performed to date plus recognized profits), the balance is shown as a Contract liability (billing in excess of revenue). Recognized loss provisions are separately presented as Provision for onerous contracts. Contract assets, Contract liabilities and the related Provision for onerous contracts are together generally also referred to as Work in progress.
Contract assets are subject to the Expected Credit Loss (ECL) model. Arcadis applies a simplified approach that uses a lifetime expected loss allowance to recognize losses for possible impairment, in line with the accounting for Expected Credit Loss on Trade receivables. The Expected Credit Loss is recognized in Other operational costs.
For further details on the recognition of Contract assets, Contract liabilities and the Provision for onerous contracts see the revenue accounting policy in note 7.
Other current assets are initially recognized at fair value plus any directly attributable transaction costs. Subsequently these assets are held at amortized cost, using the effective interest method and net of any impairment losses.
Cash and cash equivalents comprise cash balances and call deposits maturing within three months from the acquisition date and used by the Company in managing its short-term commitments. For cash flow reporting purposes bank overdrafts are included in Cash and cash equivalents.
\n\n\nOrdinary shares are classified as equity. Incremental costs directly attributable to the issuance of ordinary shares and rights to acquire shares are recognized as a deduction of equity, net of any tax effects.
Priority shares and preference shares are classified as equity since these are non-redeemable, or only redeemable at the Company\u2019s option. Dividends on these shares are recognized as distributions within equity.
\n\n\nWhen share capital is repurchased, the consideration paid, including directly attributable costs net of any tax effects, is deducted from equity. Repurchased shares (treasury shares) are presented as a deduction from total equity. When treasury shares are sold or reissued, subsequently any amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to/from retained earnings.
\n\n\nDividends are recognized as a liability in the period in which they are declared.
\n\nNon-controlling interests represent the net assets which are not held by the Company and are presented within total equity in the Consolidated balance sheet as a separate category. Profit or loss and each component of Other comprehensive income are attributed to the equity holders and to the non-controlling interests.
\nMost of the pension plans of the Group qualify as defined contribution pension plans. However, the Group also operates a few defined benefit pension plans.
\n\n\nFor defined contribution pension plans, the Group pays fixed contributions into a separate entity, which are charged to profit or loss in the period during which services are provided by employees. The Group\u2019s legal or constructive obligation is limited to the contributions paid into the plans. Prepaid contributions are recognized as an asset to the extent that Arcadis has the unconditional right to cash refunds or reduction in future payments.
\n\n\nSome of the pension plans qualify as defined benefit pension plans. For these plans, the costs are recognized as personnel costs and financing costs in profit or loss. The amount charged to personnel costs is the cost of accruing pension benefits promised to employees over the year, plus the costs of individual events such as past service benefit changes, settlements and curtailments (such events are recognized immediately in profit or loss).
The amount charged to financing costs is the net interest expense calculated by applying the liability discount rate to the net defined benefit liability or asset. Any differences between the expected interest on assets and the return actually achieved, and any changes in the liabilities over the year due to changes in assumptions or experience within the plans, are recognized immediately in profit or loss.
The majority of the defined benefit pension plans are funded with plan assets that have been segregated in a trust or foundation. These plans are subject to regular actuarial review by external actuaries, using the projected unit credit method.
The defined benefit pension plan on the balance sheet comprises the present value of the defined benefit pension obligation and the fair value of plan assets. The present value of the obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds (or suitable alternative where there is no active corporate bond market) that are denominated in the currency in which the benefits will be paid, and with maturity dates approximating to the terms of the related pension obligations.
Remeasurements arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in Other comprehensive income in the period in which they arise. Past-service costs are recognized immediately in profit or loss.
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, a reliable estimate can be made of the amount of the obligation, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are measured at net present value, taking into account the timing of the cash outflows. The discount rate used reflects the current market assessments of the time value of money and the risks specific to the liability. Unwinding of the discount is recognized as a finance expense (see note 11).
The amounts recognized as provisions reflect management\u2019s best estimate of the expenditures required to settle the present obligations at the balance sheet date or to transfer it to a third party at that time.
Interest-bearing debts are measured at amortized cost, in which the difference between the proceeds and repayments over time is charged to profit or loss over their duration. The portion of long-term debt that has to be repaid within one year after the balance sheet date is presented as the current portion of long-term debt under current liabilities.
All other financial liabilities are recognized on the trade date at which the Company becomes a party to the contractual provisions of the instrument. Non-derivative financial liabilities include loans and borrowings, bank overdrafts, trade and other payables. Initially these liabilities are recognized at fair value plus the directly attributable transaction costs. Subsequently these financial liabilities are measured at amortized cost using the effective interest method.
Bank overdrafts that are repayable on demand and that form an integral part of the Group\u2019s cash management are included as a component of cash and cash equivalents for the statement of cash flows.
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future cash flows, discounted at the Company specific market rate of interest at reporting date.
Other current liabilities are non-derivative financial liabilities, which are initially recognized at fair value plus directly attributable transaction costs. Subsequently these financial liabilities are measured at amortized cost using the effective interest method.
Committed lease payments for short-term and/or low-value leases are reported as off-balance sheet commitment. The lease payments (excluding costs for services such as insurance and maintenance, which are expenses as incurred) are recognized as an expense on a straight-line basis unless another systemic basis is representative of the time pattern of the user\u2019s benefit, even if the payments are not on that basis.
Non-financial guarantees are accounted for as a contingent liability until such time it becomes probable that the Company will be required to make a payment under such guarantee. Financial guarantees are subject to the Expected Credit Loss model, and a credit loss is recognized for the expected cash shortfalls.
Contingent liabilities are potential obligations of sufficient uncertainty that it does not qualify for recognition as a provision (see note 28), unless it is assumed in a business combination (see note 6). Contingent liabilities are reviewed periodically to assess whether an outflow of resources will become probable.
A related party is a person or an entity that is related to the Group. These include both people and entities that have, or are subject to, the influence or control of the Group (e.g. key management personnel). Transactions with related parties are accounted for in accordance with the requirements of relevant IFRSs, take into account the substance as well as the legal form, and made on terms equivalent to those that prevail in arm\u2019s length transactions.
A subsequent event is a favorable or unfavorable event, that occurs between the reporting date and the date that the financial statements are authorized for issue. Events after the reporting date that provide evidence of conditions that existed at the reporting date are adjusted within the financial statements. Events that are indicative of a condition that arose after the reporting date of a material size or nature are disclosed below.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1822m1421p": { "value": "\n\n\nThe Consolidated financial statements are presented in euros, which is the Company\u2019s functional and reporting currency. The financial statements presentation for the current period has been changed from thousands to millions of euros. It ensures more relevant reporting for the users of the financial statements and aligns with market practice considering the increasing size of the Group operations over the years, especially after major recent acquisitions. Comparative figures have been presented accordingly (rounded up to the nearest whole number) and this does not affect the financial position, financial performance, nor cash flows of the Group.
Amounts in the financial statements are presented as a hyphen (\u2018\u2013\u2018) when the amounts reported are nil balances. Amounts shown as zero (\u20180\u2019) represent balances lower than 0.5 million. Items included in the financial information of each of Arcadis\u2019 entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). If the functional currency of a (foreign) subsidiary, joint venture or associate is not the euro, foreign currency exchange differences arising from translation are recognized as translation differences in Other comprehensive income and presented in the Translation reserve in equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1823m1422p": { "value": "\n\n\nThe preparation of the Consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses as well as the information disclosed. The most significant accounting estimates and management judgments are related to:
Segment reporting \u2013 see note 5;
Revenue recognition (\u2018cost to complete\u2019) and estimate of the variable consideration \u2013 see note 7;
Deferred tax recognition and uncertain tax treatments \u2013 see note 12;
Goodwill impairment testing and assumptions underlying recoverable amount \u2013 see note 14;
Leases- estimating the incremental borrowing rate \u2013 see note 16;
Recoverability of trade receivables \u2013 see note 21;
Contract assets (unbilled receivables), contract liabilities (billing in excess of revenue) and provisions for onerous contracts \u2013 see note 22;
Provisions for defined benefit pension obligations \u2013 see note 27;
Recognition and measurement of provisions: key assumptions about the likelihood and magnitude of an outflow of resources \u2013 see note 28.
The accounting estimates and judgements in preparing the Consolidated financial statements are explained in the relevant notes to the Consolidated financial statements. In general, the judgements, estimates and assumptions are based on market information, knowledge, historical experience and other factors that management believes to be reasonable under the circumstances. Actual results may differ from these estimates.
Judgements, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1824m1423p": { "value": "\n\n\nManagement has assessed the going concern assumption and exercised judgment in making reasonable estimates. Based on the latest available financial (cash flow) forecasts and sensitivity analysis performed, management concluded that there is no material uncertainty related to events and conditions that may cast significant doubt on the Group ability to continue as a going concern.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1825m1424p": { "value": "\n\n\nThe carrying amounts of the assets of Arcadis, other than Contract assets and liabilities, Deferred tax assets and Financial instruments, are reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, then the assets recoverable amount is estimated. Goodwill and other assets that have an indefinite useful life are tested annually for impairment, and when an impairment trigger is identified.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (CGUs). Goodwill arising from a business combination is allocated to Groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount is the greater of the fair value less costs to sell and value in use. In assessing the value in use, estimated future cash flows are discounted to present values using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss is recognized whenever the carrying amount of an asset or its CGU exceeds its recoverable amount.
Impairment losses are recognized in the income statement. Impairment losses recognized regarding CGUs are allocated first to reduce the carrying amount of any goodwill allocated to CGUs and then to reduce the carrying amount of the other assets in the unit on a pro-rata basis.
An impairment loss of goodwill is not reversed. Regarding other assets, an impairment loss can be reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1829m1428p": { "value": "\n\n\nFinancial assets include trade receivables, other receivables and loans and borrowings. Loans, receivables, and deposits are recognized on the date they are originated. All other financial assets are recognized initially on trade date when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.
All financial instruments are initially measured at fair value plus or minus, in the case of a financial asset not at fair value through profit or loss, transaction costs. The Group classifies its financial assets as those to be measured subsequently at fair value (either through Other comprehensive income or through profit or loss) or those to be measured at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of the financial assets at initial recognition, based on the business model for managing the assets and the contractual terms of the cash flows, and assesses the designation at each reporting date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3430m2196p": { "value": "\n\n\nFinancial assets include trade receivables, other receivables and loans and borrowings. Loans, receivables, and deposits are recognized on the date they are originated. All other financial assets are recognized initially on trade date when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.
All financial instruments are initially measured at fair value plus or minus, in the case of a financial asset not at fair value through profit or loss, transaction costs. The Group classifies its financial assets as those to be measured subsequently at fair value (either through Other comprehensive income or through profit or loss) or those to be measured at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of the financial assets at initial recognition, based on the business model for managing the assets and the contractual terms of the cash flows, and assesses the designation at each reporting date.
\n\n\nFinancial assets and liabilities are offset and reported as a net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
\n\n\nThe Group uses derivatives in order to hedge the exposure to foreign exchange risks and interest rate risks arising from operational, financing and investment activities. Derivatives to be used for hedging purposes can include forward foreign exchange rate contracts, foreign exchange swaps and interest rate swaps and a combination of those, such as cross-currency interest rate swaps. The Group does not hold or issue derivatives for trading purposes. To the extent possible Hedge accounting is applied for cash flow hedges related to forecasted transactions and fair value hedges.
\n\n\nAll derivative financial instruments are initially recognized at fair value. Attributable transaction costs are recognized in profit or loss when incurred. Subsequently, derivatives are measured at fair value derived from market prices of the instruments or valuation techniques, with the fair value changes recognized in profit or loss, unless hedge accounting is applied. A gain or loss on remeasurement to the fair value of the interest rate derivatives is recognized in profit or loss under fair value change of derivatives. The fair value changes of forward foreign exchange contracts are recognized in operating income. The carrying values of the derivatives are recognized in the balance sheet as derivatives, which can be classified as current or non-current assets or liabilities, depending on the maturity of the contracts.
\n\n\nFor a cash flow hedge of a forecasted transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported profit or loss. In specific cases hedge accounting is applied for cash flow hedges. In that case, the effective part of the fair value change of those derivatives is deferred in Other comprehensive income and presented in the hedging reserve in Equity. The hedging reserve includes the cash flow hedge reserve and the costs of hedging. Changes in the fair value of the currency basis since the inception of the hedging relationship will be deferred into a separate component of Other comprehensive income.
The amount recognized in Other comprehensive income as cash flow hedge reserve is released to the related lines in profit or loss at the same time as the hedged cash flows affect profit or loss. Any ineffective portion of change in the fair value of the derivatives is included in profit or loss immediately.
At inception of the hedge, the relationship between the hedging instrument and the hedged item is documented \u2013 including the risk management objectives, strategy of undertaking the hedge transaction, the hedged risk \u2013 and, in case of hedge accounting, the methods that will be used to assess the effectiveness of the hedge. Both at the inception of the hedge and at each reporting date, the Group makes an assessment whether the derivatives used are highly effective in offsetting changes in fair values of the cash flows of the hedged items.
The economic relationship between the hedging instrument and the hedged item is, amongst others, determined based upon matching notional amounts, a minimal fair value of the hedging instrument at inception, matching the underlying hedged risk (interest benchmark rate or currency pair), matching repricing and payment dates and an assessment of the likelihood of default of the hedging counterparty. Sources of ineffectiveness can, amongst others, be driven by movements in the credit spread of Arcadis and the relevant hedging counterparty, mismatch of payment flow frequencies, mismatch of interest conditions, such as interest floors and possible changes to the critical terms of the economic relationship.
When a derivative ceases to be highly effective or in case of early redemption of the hedged item, hedge accounting is discontinued prospectively. When a cash flow hedge relationship is terminated, the fair value changes deferred in the cash flow hedging reserve in equity are released to profit or loss under the fair value change of derivatives only when the hedged transaction is no longer expected to occur. Otherwise, these fair value changes will be released to profit or loss at the same time as the hedged item.
\n\n\nA fair value is the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of derivatives is determined by using valuation models that incorporate various inputs, such as forward interest rate curves and the credit worthiness of counterparties. The methods and assumptions used to estimate the fair value are consistent with the prior year.
\nThe fair value of derivatives held by the Group as at the balance sheet date is presented in the table below:
| \n | \n\n Assets | \n \n Liabilities | \n \n Total | \n |||
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n
| \n Interest rate derivatives: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Current | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Non-current | \n \n - | \n \n - | \n \n 1 | \n \n 2 | \n \n (1) | \n \n (2) | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Foreign exchange derivatives: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Current | \n \n 10 | \n \n 8 | \n \n 8 | \n \n 9 | \n \n 2 | \n \n (1) | \n
| \n Non-current | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Total | \n \n 10 | \n \n 8 | \n \n 9 | \n \n 11 | \n \n 1 | \n \n (3) | \n
See note 31 for the Group Treasury policy and the valuation techniques used for the derivatives. Group Treasury is consulted by entities for alignment of hedge accounting with the Group Treasury policy guidelines and assisted with documentation of the hedge relationship, derivatives valuations and effectiveness testing.
As per 31 December 2024, the Group has \u20ac185 million (notional amount) of floating-to-fixed interest rate swaps to manage the interest rate risk on the \u20ac185 million Schuldschein loans issued in July 2023. The market value of these derivatives at 31 December 2024 was \u20ac1 million negative (2023: \u20ac2 million negative) and hedge accounting is applied on these derivatives. Of these interest rate swaps, \u20ac100 million will mature in January 2025 and \u20ac85 million will mature in January 2026.
\n\n\n| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Cross currency interest rate swaps | \n \n | \n\n | \n\n | \n
| \n Notional amount | \n \n | \n\n - | \n \n - | \n
| \n Maturity date | \n \n | \n\n - | \n \n n/a | \n
| \n Hedge ratio | \n \n | \n\n - | \n \n - | \n
| \n Change in fair value of outstanding | \n \n | \n\n - | \n \n - | \n
| \n Change in value of hedged item | \n \n | \n\n - | \n \n - | \n
| \n Ineffectiveness | \n \n | \n\n - | \n \n - | \n
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Interest rate swaps maturing in 2025 | \n \n | \n\n | \n\n | \n
| \n Notional amount | \n \n | \n\n 100 | \n \n 100 | \n
| \n Maturity date | \n \n | \n\n 2025 | \n \n 2025 | \n
| \n Hedge ratio | \n \n | \n\n 1:1 | \n \n 1:1 | \n
| \n Change in fair value of outstanding | \n \n | \n\n (0.1) | \n \n (0.5) | \n
| \n Change in value of hedged item | \n \n | \n\n 0.1 | \n \n 0.5 | \n
| \n Ineffectiveness | \n \n | \n\n 0 | \n \n (0.0) | \n
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Interest rate swaps maturing in 2026 | \n \n | \n\n | \n\n | \n
| \n Notional amount | \n \n | \n\n 85 | \n \n 85 | \n
| \n Maturity date | \n \n | \n\n 2026 | \n \n 2026 | \n
| \n Hedge ratio | \n \n | \n\n 1:1 | \n \n 1:1 | \n
| \n Change in fair value of outstanding | \n \n | \n\n (1.1) | \n \n (1.4) | \n
| \n Change in value of hedged item | \n \n | \n\n 1.1 | \n \n 1.3 | \n
| \n Ineffectiveness | \n \n | \n\n 0.0 | \n \n (0.1) | \n
During 2024, the Group hedged currency exposures related to transactions in currencies other than the functional currency for subsidiaries by way of foreign exchange forward rate contracts in order to minimize volatility in the operating income of these subsidiaries due to changes in foreign exchange rates. In addition, foreign currency corporate balance sheet positions arising due to foreign currency receivables, payables and loan balances were hedged by way of foreign exchange forward rate contracts and foreign exchange swaps.
The movements in fair value of all derivatives are shown in the table below:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n (3) | \n \n (6) | \n |
| \n Changes in income statement | \n \n 12 | \n \n (7) | \n |
| \n Changes through Other comprehensive income | \n \n 1 | \n \n (2) | \n |
| \n Cash settlement derivatives | \n \n (9) | \n \n 12 | \n |
| \n Exchange rate differences | \n \n - | \n \n (0) | \n |
| \n Balance at 31 December | \n \n | \n\n 1 | \n \n (3) | \n
The change in fair value of derivatives recognized in profit or loss is \u20ac12 million positive (2023: \u20ac10 million negative), together with foreign exchange results of \u20ac10 million negative (2023: \u20ac4 million positive) also flowing through profit or loss. Hence, the overall profit or loss effect of foreign exchange contracts and derivatives amounts to \u20ac3 million positive (2023: \u20ac6 million negative).
\n\n\nThe total (after-tax) amount included in Other comprehensive income, on the line hedging reserve within equity, can be specified as follows:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Interest rate derivatives | \n \n (1) | \n \n (1) | \n |
| \n Foreign exchange derivatives | \n \n 0 | \n \n 0 | \n |
| \n Cost of hedging reserve | \n \n - | \n \n - | \n |
| \n Total | \n \n | \n\n (1) | \n \n (1) | \n
Credit risk arises from receivables from customers as well as cash balances and fair values of derivatives with financial counterparties (e.g. banks). The credit risk on customers is influenced mainly by the individual characteristics of each customer. Arcadis usually invoices clients for services according to the progress of the work. If clients refuse or are unable to meet their contractual payment obligations, the Group may not have sufficient cash to satisfy its liabilities and its growth and continued operations could be adversely impacted.
The key objective of the Group\u2019s counterparty risk management is to minimize the risk of losses as a result of failure of an individual financial counterparty that could negatively impact the Group\u2019s results. Arcadis aims to centralize cash balances with banks that have also provided committed credit facilities to the Group in order to reduce this counterparty risk.
The exposure to credit risk is monitored on an ongoing basis at local entity and at group level. Normally, Arcadis only deals with counterparties that have a sufficiently strong credit rating. Where possible, Arcadis uses credit ratings provided by external credit rating agencies, thus monitoring creditworthiness in order to manage the related credit risk. Furthermore, Arcadis strongly focuses on clients by strengthening the commercial relationship and being more selective to which clients services are offered. Through systematic account management we aim to build long-term relationships with selected multinational and key national/local clients. We already have a relationship with the majority of our multinational clients for more than five years. New customers are analyzed individually for creditworthiness before services are offered and monitored regularly.
The carrying amount of financial assets represents the maximum credit exposure. Per 31 December 2024, the maximum exposure to credit risk was:
| \n In \u20ac millions | \n \n Note | \n \n 2024 | \n \n 2023 | \n
| \n Financial assets: | \n \n | \n\n | \n\n | \n
| \n Trade receivables | \n \n 21 | \n \n 761 | \n \n 731 | \n
| \n Other receivables | \n \n 23 | \n \n 41 | \n \n 39 | \n
| \n Other non-current assets | \n \n 20 | \n \n 9 | \n \n 20 | \n
| \n Derivatives | \n \n 19 | \n \n 10 | \n \n 8 | \n
| \n | \n\n | \n\n 821 | \n \n 799 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n Cash and cash equivalents less bank overdrafts | \n \n 24 | \n \n 375 | \n \n 280 | \n
| \n Balance at 31 December | \n \n | \n\n 1,196 | \n \n 1,078 | \n
Trade receivables are presented net of a provision for expected credit losses. The credit risk is measured and analyzed on a local level at regular intervals, taking into consideration, amongst others, the financial situation of the debtor and ageing of receivables. Expected losses are determined in line with IFRS 9, see note 21.
The ageing of Trade receivables and the provision for Trade receivables at reporting date is disclosed below and in note 21. The ageing of receivables has led to the recognition of (expected) credit losses and calibration of assumptions as included in the Goodwill impairment test.
The movement schedule for the provision for Trade receivables is included in note 21.
There are various reasons for delays in payments that result in past due amounts and that impact Days Sales Outstanding (DSO). Arcadis has overdue receivables which are generally considered collectible and for which the risk of impairment is remote.
Amounts due at 31 December 2024 subject to the \u2018paid-when-paid principle\u2019 are disclosed in note 21. Further details on how Arcadis uses this principle to manage working capital is disclosed in the section on liquidity risk.
\n\n\nOther receivables and Other non-current assets are monitored for expected credit losses. They do not contain impaired assets and are not past due.
\n\n\nLoans to associates and joint ventures are subject to credit risk. At 31 December 2024, no material loans to associates were outstanding.
\n\n\nThe credit risk of Cash and cash equivalents is the risk that counterparties are not able to repay amounts owed to Arcadis upon request of Arcadis. The objective of the Group is to minimize credit risk exposure in Cash and cash equivalents by investing in liquid securities and entering into transactions involving derivative financial instruments only with counterparties that have sound credit ratings, a good reputation and belong to the group of Core banks which also provide committed credit facilities. The related risk is monitored on an ongoing basis both at local entity and group level. The Group keeps approximately 67% (2023: 62%) of its cash reserves at our Core banks and is only allowed to invest in short-term, liquid securities with counterparties that have an investment grade rating from Standard & Poor\u2019s, Moody\u2019s or Fitch. Management monitors these ratings and does not expect any such counterparty to fail to meet its obligations in the short-term. No Expected Credit Losses are recognized on the cash and cash equivalents.
\n\n\nOn behalf of the Group and local entities, financial institutions (such as banks and insurance companies) have provided bank guarantees, surety bonds and letters of credit amounting to \u20ac157 million outstanding as at 31 December 2024 (2023: \u20ac150 million). In addition, Arcadis N.V. has provided financial guarantees to banks and financial institutions for a maximum amount of \u20ac163 million (2023: \u20ac160 million). No Expected Credit Losses are recognized from these guarantees.
\n\n\nLiquidity risk is the risk that Arcadis will not be able to meet its financial obligations as they fall due. The primary objective of liquidity management is providing for sufficient committed credit facilities and cash and cash equivalents to enable Arcadis to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Arcadis. Our Group Treasury Policy supports this principle by stating that the minimal liquidity at any given point in time should always exceed \u20ac200 million.
Neither the aged (un)billed receivables of individual customers, nor the profile of the accounts receivable portfolio, impose a significant threat to the Group\u2019s liquidity planning.
Over the course of the year, fluctuations occur in the working capital needed to finance operations. The Group strives to have a good liquidity position at all times, strictly controlling working capital by optimizing billing and collection and consequently maintaining a healthy (average) net debt to (Operating) EBITDA ratio.
To manage working capital, but only if legally allowed and commercially possible, Arcadis agrees with part of its sub-contractors so-called \u2018paid-when-paid\u2019 clauses. This means that Arcadis is in such instances better able to match the cash inflows from debtors with the related cash outflows to suppliers, as the timing of the payment of the supplier is dependent on the collection of the receivable from a client. This could however be impacted by contractual clauses and/or local laws and regulations that limit the maximum extension of payment terms to a moment before Arcadis gets paid by its client. In case of non-payment by the debtor, Arcadis still has to fulfil its obligations towards the supplier under a \u2018paid-when-paid\u2019 clause. Accounts payable at 31 December 2024 subject to the \u2018paid-when-paid principle\u2019 are disclosed in note 30. The expectation is that all accounts payable will be paid within the normal course of business and are therefore classified as short-term liabilities.
\n\n\nThe Company maintains the lines of credit as summarized in the table below.
| \n In millions | \n \n | \n\n 31 December 2024 | \n \n | \n\n 31 December 2023 | \n ||||||||
| \n Type | \n \n Interest/fees | \n \n Available | \n \n | \n\n Utilized | \n \n | \n\n Available | \n \n | \n\n Utilized | \n ||||
| \n | \n\n | \n\n CAD | \n \n EUR | \n \n | \n\n CAD | \n \n EUR | \n \n | \n\n CAD | \n \n EUR | \n \n | \n\n CAD | \n \n EUR | \n
| \n Revolving Credit Facility | \n \n EURIBOR | \n \n | \n\n 600 | \n \n | \n\n | \n\n - | \n \n | \n\n | \n\n 600 | \n \n | \n\n | \n\n - | \n
| \n Debentures IBI | \n \n 6.5% | \n \n - | \n \n - | \n \n | \n\n - | \n \n - | \n \n | \n\n 30 | \n \n 20 | \n \n | \n\n 30 | \n \n 20 | \n
| \n Senior unsecured notes | \n \n 4.875% | \n \n | \n\n 500 | \n \n | \n\n | \n\n 500 | \n \n | \n\n | \n\n 500 | \n \n | \n\n | \n\n 500 | \n
| \n Uncommitted multi-currency facilities | \n \n Floating | \n \n | \n\n 142 | \n \n | \n\n | \n\n - | \n \n | \n\n | \n\n 120 | \n \n | \n\n | \n\n - | \n
| \n Schuldschein notes | \n \n Fixed/floating | \n \n | \n\n 358 | \n \n | \n\n | \n\n 358 | \n \n | \n\n | \n\n 358 | \n \n | \n\n | \n\n 358 | \n
| \n Guarantee facility | \n \n 0.30% - 0.65% | \n \n | \n\n 101 | \n \n | \n\n | \n\n 54 | \n \n | \n\n | \n\n 76 | \n \n | \n\n | \n\n 48 | \n
| \n Other (loans) | \n \n Various | \n \n | \n\n 19 | \n \n | \n\n | \n\n 1 | \n \n | \n\n | \n\n 20 | \n \n | \n\n | \n\n 3 | \n
| \n Other (bank guarantees and surety bonds) | \n \n Various | \n \n | \n\n 107 | \n \n | \n\n | \n\n 102 | \n \n | \n\n | \n\n 196 | \n \n | \n\n | \n\n 146 | \n
A description and analysis of the credit lines listed above and its movements compared to last year is provided in note 29.
\n\n\nThe following tables describe our commitments and contractual obligations for the following five years and thereafter. The other long-term debt obligations are the debt service obligations.
No collateral has been pledged for liabilities or contingent liabilities.
| \n In \u20ac millions | \n \n Total | \n \n < 1 year | \n \n 1 \u2011 3 years | \n \n 4 \u2011 5 years | \n \n > 5 years | \n
| \n Contractual obligations at 31 December 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Guarantees on behalf of associates | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Off balance sheet lease commitments | \n \n 2 | \n \n 2 | \n \n - | \n \n - | \n \n - | \n
| \n Foreign exchange contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (1,089) | \n \n (1,089) | \n \n | \n\n | \n\n | \n
| \n Inflow | \n \n 1,093 | \n \n 1,093 | \n \n | \n\n | \n\n | \n
| \n Interest rate swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (192) | \n \n (105) | \n \n (87) | \n \n - | \n \n - | \n
| \n Inflow | \n \n 192 | \n \n 105 | \n \n 87 | \n \n - | \n \n - | \n
| \n Cross Currency swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n - | \n \n - | \n \n | \n\n | \n\n | \n
| \n Inflow | \n \n - | \n \n - | \n \n | \n\n | \n\n | \n
| \n Deferred consideration | \n \n 1 | \n \n 1 | \n \n - | \n \n - | \n \n - | \n
| \n Interest | \n \n 124 | \n \n 39 | \n \n 61 | \n \n 24 | \n \n - | \n
| \n Lease obligations | \n \n 297 | \n \n 72 | \n \n 107 | \n \n 63 | \n \n 55 | \n
| \n Loans and borrowings | \n \n 859 | \n \n 81 | \n \n 778 | \n \n - | \n \n - | \n
| \n Short-term bank debt | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Accounts payable | \n \n 300 | \n \n 300 | \n \n - | \n \n - | \n \n - | \n
| \n Total | \n \n 1,587 | \n \n 499 | \n \n 946 | \n \n 87 | \n \n 55 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Contractual obligations at 31 December 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Guarantees on behalf of associates | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Off balance sheet lease commitments | \n \n 4 | \n \n 4 | \n \n - | \n \n - | \n \n - | \n
| \n Foreign exchange contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (678) | \n \n (678) | \n \n - | \n \n - | \n \n - | \n
| \n Inflow | \n \n 683 | \n \n 683 | \n \n - | \n \n - | \n \n - | \n
| \n Interest rate swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (199) | \n \n (7) | \n \n (192) | \n \n - | \n \n - | \n
| \n Inflow | \n \n 199 | \n \n 7 | \n \n 192 | \n \n - | \n \n - | \n
| \n Cross Currency swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Inflow | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Deferred consideration | \n \n 2 | \n \n 2 | \n \n - | \n \n - | \n \n - | \n
| \n Interest | \n \n 172 | \n \n 42 | \n \n 80 | \n \n 50 | \n \n - | \n
| \n Lease obligations | \n \n 316 | \n \n 73 | \n \n 105 | \n \n 70 | \n \n 68 | \n
| \n Loans and borrowings | \n \n 879 | \n \n - | \n \n 379 | \n \n 500 | \n \n - | \n
| \n Short-term bank debt | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Accounts payable | \n \n 313 | \n \n 313 | \n \n - | \n \n - | \n \n - | \n
| \n Total | \n \n 1,691 | \n \n 439 | \n \n 564 | \n \n 620 | \n \n 68 | \n
Market risk includes currency risk (C1) and interest rate risk (C2) and comprises the risk that changes in market prices, such as foreign exchange rates and interest rates will affect Arcadis\u2019 income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters set by the Group Treasury policy.\t
\n\n\nThe key objective of the Group foreign exchange transaction exposure management is aimed at the active management of foreign exchange exposures by Group Treasury to reduce and limit the adverse effects of exchange rate changes on the Group\u2019s profitability.
\n\n\nThe subsidiaries of Arcadis mainly operate in local markets, and as such both sales invoices and purchase invoices are mainly denominated in local currencies. In some instances, however, invoices are in the functional currency of the counterparty, which results in a currency exposure for the subsidiary. The exposure to foreign exchange risk on sales and costs denominated in another currency than the respective functional currencies of the subsidiaries is very limited. Only in limited cases, e.g., for material transactions, the subsidiaries of Arcadis enter into forward foreign exchange contracts with Group Treasury in order to hedge these transaction risks.
Borrowings are denominated in currencies that partly match the cash flows generated by the underlying operations of the Group, primarily Euro and US dollar.
Arcadis group companies can have positions in foreign currencies which are different than their respective functional currencies. For the main currencies the following positions per currency (translated in euros) are the cumulative gross exposures of non-functional currencies of all Arcadis group companies combined.
| \n In \u20ac millions | \n \n in EUR | \n \n in USD | \n \n in GBP | \n \n in CNY | \n \n in BRL | \n \n in AED | \n \n in CAD | \n \n in AUD | \n
| \n At 31 December 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Trade receivables | \n \n 5 | \n \n 84 | \n \n 43 | \n \n 1 | \n \n 14 | \n \n 3 | \n \n 25 | \n \n 18 | \n
| \n Cash and cash equivalents | \n \n 4 | \n \n 49 | \n \n 1 | \n \n - | \n \n 1 | \n \n 0 | \n \n 2 | \n \n 10 | \n
| \n Derivatives | \n \n - | \n \n 148 | \n \n 39 | \n \n (1) | \n \n (13) | \n \n (15) | \n \n (141) | \n \n 97 | \n
| \n Loans and borrowings | \n \n - | \n \n (160) | \n \n (28) | \n \n - | \n \n (0) | \n \n 8 | \n \n 136 | \n \n (105) | \n
| \n Accounts payable | \n \n (4) | \n \n (108) | \n \n (61) | \n \n (0) | \n \n (1) | \n \n (1) | \n \n (25) | \n \n (16) | \n
| \n Balance exposure | \n \n 5 | \n \n 13 | \n \n (6) | \n \n (0) | \n \n 1 | \n \n (5) | \n \n (3) | \n \n 4 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n At 31 December 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Trade receivables | \n \n 1 | \n \n 56 | \n \n 23 | \n \n 10 | \n \n 20 | \n \n 4 | \n \n 5 | \n \n 4 | \n
| \n Cash and cash equivalents | \n \n 4 | \n \n 8 | \n \n 0 | \n \n 0 | \n \n - | \n \n 0 | \n \n 1 | \n \n 1 | \n
| \n Derivatives | \n \n - | \n \n 73 | \n \n 30 | \n \n (9) | \n \n (0) | \n \n (16) | \n \n (84) | \n \n 121 | \n
| \n Loans and borrowings | \n \n - | \n \n (65) | \n \n (54) | \n \n (1) | \n \n - | \n \n 9 | \n \n 81 | \n \n (121) | \n
| \n Accounts payable | \n \n (1) | \n \n (65) | \n \n (3) | \n \n (0) | \n \n (20) | \n \n (0) | \n \n (3) | \n \n (1) | \n
| \n Balance exposure | \n \n 5 | \n \n 7 | \n \n (4) | \n \n 1 | \n \n 0 | \n \n (3) | \n \n 0 | \n \n 4 | \n
The below exchange rates were applied in the year.
| \n | \n\n | \n\n 2024 | \n \n | \n\n 2023 | \n
| \n In \u20ac | \n \n Average | \n \n Year-end | \n \n Average | \n \n Year-end | \n
| \n US Dollar (USD) | \n \n 0.92 | \n \n 0.97 | \n \n 0.92 | \n \n 0.91 | \n
| \n Pound Sterling (GBP) | \n \n 1.18 | \n \n 1.21 | \n \n 1.15 | \n \n 1.15 | \n
| \n Australian Dollar (AUD) | \n \n 0.61 | \n \n 0.60 | \n \n 0.61 | \n \n 0.62 | \n
| \n Chinese Yuan Renminbi (CNY) | \n \n 0.13 | \n \n 0.13 | \n \n 0.13 | \n \n 0.13 | \n
| \n Canadian Dollar (CAD) | \n \n 0.67 | \n \n 0.67 | \n \n 0.69 | \n \n 0.68 | \n
| \n Brazilian Real (BRL) | \n \n 0.17 | \n \n 0.16 | \n \n 0.19 | \n \n 0.19 | \n
| \n United Arab Emirates Dirham (AED) | \n \n 0.25 | \n \n 0.26 | \n \n 0.25 | \n \n 0.25 | \n
Arcadis uses derivative financial instruments in order to manage market risks associated with changes in foreign exchange rates as well as interest rates. All transactions are carried out in accordance with the Group Treasury policy. The Group seeks to apply hedge accounting where possible to manage volatility in profit or loss. All foreign exchange forward transactions outstanding at year-end are due to mature in 2025.
\n\n\nForeign currency sensitivity analyses are performed by applying an expected possible volatility of a currency, assuming all other variables, in particular interest rates, remain constant. All monetary assets and liabilities of the Group at year-end are revalued, which results in a hypothetical impact on net income and equity as summarized below.
| \n | \n\n | \n\n 2024 | \n \n | \n\n 2023 | \n
| \n In \u20ac millions | \n \n Impact on net income | \n \n Impact on equity | \n \n Impact on net income | \n \n Impact on equity | \n
| \n 10% change euro against the US dollar | \n \n 20 | \n \n 77 | \n \n 19 | \n \n 60 | \n
| \n 10% change euro against the Pound Sterling | \n \n 10 | \n \n 45 | \n \n 11 | \n \n 43 | \n
| \n 10% change euro against the Australian Dollar | \n \n 4 | \n \n 19 | \n \n 4 | \n \n 18 | \n
| \n 10% change euro against the Canadian Dollar | \n \n 5 | \n \n 10 | \n \n 1 | \n \n 7 | \n
All material balance sheet positions have been hedged with foreign exchange contracts. The translation risk relating to subsidiaries with a functional currency other than the Group reporting currency of Euro are not hedged, in accordance with the Group Treasury policy.
\n\n\nThe Group manages interest rate risks by financing fixed assets and part of current assets with shareholders\u2019 equity and long-term debt. The remainder of current assets is financed with short-term debt including revolving bank debt with variable interest rates. Based on the interest risk profile, financial instruments were outstanding during the year to cover part of the interest rate risk on long-term borrowings. This risk is applicable to long-term debt, short-term debt and bank overdrafts in the Consolidated balance sheet amounting to \u20ac853 million at year-end 2024 (2023: \u20ac881 million). The decrease versus last year is driven by the early repayment of the IBI debentures (\u20ac21 million) and lower bank overdraft (\u20ac10 million).
The Group arranged for two floating-to-fixed interest rate swaps for the \u20ac185 million floating interest rate Schuldschein loan that was issued in July 2023. One swap (\u20ac100 million) will mature in January 2025; the other swap (\u20ac85 million) will mature in January 2026.
Further information can be found in Note 19.
The Group Treasury Policy states that the fixed portion of net debt should be at least 40% to protect against increases in interest rates as well as providing some certainty on expectations for interest expense in profit or loss. As of December 2024, this minimum fixed portion of 40% was applicable.
\n\n\nInterest rate sensitivity analyses are performed by applying an expected possible volatility of interest rates, assuming all other variables remain constant. All interest-bearing liabilities of the Group at year-end are revalued, which results in a hypothetical impact on the pre-tax profit for the year and equity as summarized below.
| \n | \n\n | \n\n 2024 | \n \n | \n\n 2023 | \n
| \n In \u20ac millions | \n \n Impact of pre-tax profit for the year | \n \n Impact on equity | \n \n Impact of pre-tax profit for the year | \n \n Impact on equity | \n
| \n Ten basis-points change to interest rate | \n \n (0.2) | \n \n (0.2) | \n \n 0.1 | \n \n 0.1 | \n
Financial assets include trade receivables, other receivables and loans and borrowings. Loans, receivables, and deposits are recognized on the date they are originated. All other financial assets are recognized initially on trade date when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.
All financial instruments are initially measured at fair value plus or minus, in the case of a financial asset not at fair value through profit or loss, transaction costs. The Group classifies its financial assets as those to be measured subsequently at fair value (either through Other comprehensive income or through profit or loss) or those to be measured at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of the financial assets at initial recognition, based on the business model for managing the assets and the contractual terms of the cash flows, and assesses the designation at each reporting date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1826m1425p": { "value": "\n\n\nFinancial assets and liabilities are offset and reported as a net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1827m1426p": { "value": "\n\n\nThe Cash flow statement has been prepared using the indirect method. Cash flows in foreign currencies have been translated into euros using average exchange rates, approximating the foreign exchange rate at transaction date. Exchange rate differences on cash items are shown separately in the Cash flow statement. Receipts and payments with respect to income tax and interest are included in the Cash flows from operating activities. The cost of acquisition of subsidiaries, associates and joint ventures, and other investments, insofar as it was paid for in cash, is included in Cash flows from investing activities. Acquisitions or divestments of subsidiaries are presented net of cash balances acquired or disposed of, respectively. Cash flows from derivatives are recognized in the Cash flow statement in the same category as those of the hedged item.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1828m1427p": { "value": "\n\n\nThere are no significant changes in accounting policies but several amendments to International Financial Reporting Standards and interpretations became effective for annual periods beginning on or after 1 January 2024. The new amendments do not have a material impact on the Group\u2019s financial performance and the financial position for the year ended 2024.
\n\n\nThe amendments to IAS 1 specify the requirements for classifying liabilities as current or non-current. The amendments clarify:
What is meant by a right to defer settlement
That a right to defer must exist at the end of the reporting period
That classification is unaffected by the likelihood that an entity will exercise its deferral right
That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification
In addition, an entity is required to disclose when a liability arising from a loan agreement is classified as non-current and the entity\u2019s right to defer settlement is contingent on compliance with future covenants within twelve months.
The amendments have resulted in additional disclosures in note 29, but does not have an impact on the classification of the Group\u2019s liabilities.
\n\n\nThe amendments in IFRS 16 specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains.
The amendments had no impact on the Group\u2019s consolidated financial statements.
\n\n\nThe amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity\u2019s liabilities, cash flows and exposure to liquidity risk.
The amendments had no impact on the Group\u2019s consolidated financial statements.
\n\n\nThere are no significant changes in accounting policies adopted during the year ended 31 December 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3060m2193p": { "value": "\n\n\nThere are no significant changes in accounting policies but several amendments to International Financial Reporting Standards and interpretations became effective for annual periods beginning on or after 1 January 2024. The new amendments do not have a material impact on the Group\u2019s financial performance and the financial position for the year ended 2024.
\n\n\nThe amendments to IAS 1 specify the requirements for classifying liabilities as current or non-current. The amendments clarify:
What is meant by a right to defer settlement
That a right to defer must exist at the end of the reporting period
That classification is unaffected by the likelihood that an entity will exercise its deferral right
That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification
In addition, an entity is required to disclose when a liability arising from a loan agreement is classified as non-current and the entity\u2019s right to defer settlement is contingent on compliance with future covenants within twelve months.
The amendments have resulted in additional disclosures in note 29, but does not have an impact on the classification of the Group\u2019s liabilities.
\n\n\nThe amendments in IFRS 16 specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains.
The amendments had no impact on the Group\u2019s consolidated financial statements.
\n\n\nThe amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity\u2019s liabilities, cash flows and exposure to liquidity risk.
The amendments had no impact on the Group\u2019s consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3373m1430p": { "value": "\n\n\nThere are no significant changes in accounting policies adopted during the year ended 31 December 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3325m1431p": { "value": "\n\n\nThe debenture of IBI Group of \u20ac21 million (CAD 31 million) was repaid on 31 December 2024. The 6.5% debenture originally had a maturity of 31 December 2025 and was listed on the Toronto Stock Exchange.\u00a0Due to the strong cash position in Arcadis and high interest rates of the debenture, Arcadis management decided to fully repay the remaining principal amount due. See note 29.
\n\n\nLoans and borrowings at 31 December are as follows:
| \n In \u20ac millions | \n \n Interest rates between | \n \n 2024 | \n \n 2023 | \n
| \n Short-term bank loans | \n \n 1.5% - 4.5% | \n \n 81 | \n \n - | \n
| \n Long-term bank loans | \n \n 1.5% - 5.8% | \n \n 275 | \n \n 355 | \n
| \n Debentures | \n \n 6.5% | \n \n - | \n \n 20 | \n
| \n Senior unsecured notes | \n \n 4.9% | \n \n 497 | \n \n 496 | \n
| \n Total Loans and borrowings | \n \n | \n\n 853 | \n \n 871 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n Current | \n \n | \n\n 81 | \n \n - | \n
| \n Non-current | \n \n | \n\n 772 | \n \n 871 | \n
| \n Total | \n \n | \n\n 853 | \n \n 871 | \n
The fair value of the Group\u2019s loans and borrowings has been estimated at \u20ac862 million, based on quoted market prices for the same or similar loans or on the current rates offered to the Group for debt with similar maturities (2023: \u20ac875 million).
Aggregate maturities of (non-)current loans and borrowings are as follows:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n 2025 | \n \n | \n\n 78 | \n \n 97 | \n
| \n 2026 | \n \n | \n\n 223 | \n \n 223 | \n
| \n 2027 | \n \n | \n\n 53 | \n \n 52 | \n
| \n 2028 | \n \n | \n\n 499 | \n \n 499 | \n
| \n 2029 | \n \n | \n\n - | \n \n - | \n
| \n After 2029 | \n \n | \n\n - | \n \n - | \n
| \n Balance at 31 December | \n \n | \n\n 853 | \n \n 871 | \n
The movement in non-current loans and borrowings is as follows:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n | \n\n 871 | \n \n 902 | \n
| \n New debt | \n \n | \n\n 95 | \n \n 719 | \n
| \n Accrued interest | \n \n | \n\n - | \n \n - | \n
| \n Redemptions | \n \n | \n\n (116) | \n \n (750) | \n
| \n Acquisitions (deferred consideration) | \n \n | \n\n - | \n \n - | \n
| \n From long-term to current position other long-term | \n \n | \n\n (81) | \n \n - | \n
| \n Other | \n \n | \n\n 3 | \n \n 0 | \n
| \n Exchange rate differences | \n \n | \n\n (0) | \n \n (0) | \n
| \n Balance at 31 December | \n \n | \n\n 772 | \n \n 871 | \n
In February 2023, a \u20ac500 million Eurobond was issued against a fixed rate of 4.875% with a 5-year maturity. The proceeds of this issuance were used to repay a part (\u20ac500 million) of the \u20ac750 million bridge loan facility in 2023.
\n\n\nThe bridge loan facility used to acquire IBI Group and DPS Group in 2022 has been repaid in the course of 2023. Of the \u20ac750 million outstanding at the start of 2023, \u20ac500 million was repaid with the issuance of a \u20ac500 million Eurobond in February 2023. The remaining \u20ac250 million was repaid during the third quarter of 2023 using the proceeds from the \u20ac185 million newly issued Schuldschein loans and \u20ac65 million with available cash.
\n\n\nIn 2024, no additional Schuldschein loans have been arranged. \u20ac81 million of Schuldschein loans is due to be repaid in 2025.
In 2023, the \u20ac185 million floating rate Schuldschein loans have been swapped with two floating-to-fixed interest rate swaps. There were no changes on these swaps in 2024. For more information, see note 19.
At 31 December 2024, the non-current portion of long-term debt includes a total of Schuldschein debt in the amount of \u20ac278 million maturing in 2026 and 2027.
\n\n\nAt 31 December 2024, the long-term debt acquired after the acquisition of IBI Group was repaid for a value of \u20ac21 million (CAD 31 million) of Debentures and presented under the redemptions line in the table above.\u00a0The 6.5% Debentures originally had a maturity of 31 December 2025 and were listed on the Toronto Stock Exchange.
On or after 31 December 2024 but prior to the maturity date of 31 December 2025, the Debentures were redeemable at a price equal to their principal amount plus accrued and unpaid interest and free of an early repayment penalty.\u00a0
\n\n\nIn 2023, Arcadis used both the extension option as well as the accordion option available in the Revolving Credit Facility (RCF) to extend and increase the RCF. Following the exercise of these options, the RCF has been extended by 2 years to 2028 and increased by \u20ac100 million to \u20ac600 million, with \u20ac95 million maturing in October 2026 and the remaining \u20ac505 million maturing in October 2028.
In 2024, the Group made a drawdown of\u00a0\u20ac95 million from RCF and repaid it during the year. This has been presented as new debt and redemption\u00a0respectively in the table above.\u00a0 \u00a0\u00a0
Arcadis has the right to defer the settlement of an outstanding balance of the Revolving Credit Facility on a roll-over basis as the balance falls due. Accordingly, any outstanding RCF balances as at reporting date are classified as non-current. The classification of the balances as non-current is compliant with the requirements of IAS 1.76 which is effective from 1 January 2024. There is no outstanding RCF balance as of 31 December 2024 and 2023.
\n\n\nThe movement in short-term debts and current portion of long-term debts is as follows:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n | \n\n - | \n \n 56 | \n
| \n New debt | \n \n | \n\n 60 | \n \n - | \n
| \n Acquisitions | \n \n | \n\n - | \n \n - | \n
| \n Redemptions | \n \n | \n\n (60) | \n \n (56) | \n
| \n Other | \n \n | \n\n - | \n \n - | \n
| \n From long-term to current position other long-term | \n \n | \n\n 81 | \n \n - | \n
| \n Exchange rate differences | \n \n | \n\n - | \n \n (0) | \n
| \n Balance at 31 December | \n \n | \n\n 81 | \n \n - | \n
The total available short-term credit facilities amount to \u20ac369 million, which include all uncommitted credit facilities, bank guarantee facilities and surety bond lines with financial institutions of which \u20ac158 million has been used as per 31 December 2024 (2023: \u20ac412 million and \u20ac197 million respectively).
The Group has short-term uncommitted credit facilities of \u20ac142 million with relationship banks and three bank guarantee facilities totaling \u20ac101 million (2023: \u20ac120 million and \u20ac76 million, respectively). These short-term credit facilities are used for the financing of working capital and general corporate purposes of the Group.\u00a0
By the end of the year 2024, the total amount of bank guarantees and letters of credit that were outstanding under the \u20ac101 million guarantee facilities amounted to \u20ac54 million (2023: \u20ac48 million). Additionally, there were other outstanding bank guarantees, letters of credit and surety bonds amounting to \u20ac102 million (2023: \u20ac146 million).
In 2024, the Group utilized \u20ac60 million from existing short-term finance facilities and it was repaid during the year and has been presented as new debt and redemptions respectively in the table above.\u00a0
\n\n\nThe interest rate ranges for the total loans and borrowings are as follows:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n 0% - 3% | \n \n | \n\n 81 | \n \n 74 | \n
| \n 4% - 7% | \n \n | \n\n 772 | \n \n 797 | \n
| \n Balance at 31 December | \n \n | \n\n 853 | \n \n 871 | \n
| \n Weighted average interest rate1 | \n \n | \n\n 4.6% | \n \n 4.7% | \n
The leverage covenant for the \u20ac600 million syndicated Revolving Credit Facility and the 2020 Schuldschein loans prescribes that the average net debt to EBITDA ratio is not to exceed the maximum of 3.5x, which is confirmed to the lenders twice a year.
At 31 December 2024, the average net debt to EBITDA ratio calculated in accordance with the credit documentation of the 2020 Schuldschein loans and the \u20ac600 million syndicated Revolving Credit facility is 1.6x (2023: 2.2x). No other financial covenants exist for these credit facilities.
The leverage covenant for the 2023 Schuldschein loans prescribes that the average net debt to Operating EBITDA ratio is not to exceed the maximum of 3.5x, which is confirmed to the lenders twice a year.
At 31 December 2024, the average net debt to Operating EBITDA ratio calculated in accordance with the credit documentation of the 2023 Schuldschein loans is 1.5x (2023: 2.0x). No other financial covenants exist for these credit facilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1840m1433p": { "value": "\n\n\nThe operating segment reporting follows the internal reporting used by the \u201cChief Operating Decision Maker\u201d (\u201cCODM\u201d, being the Executive Leadership Team of the Group), to manage the business, assess the performance based on the available financial information and to allocate resources. The most important performance measures are EBITA (earnings before interest, tax, amortization of identifiable intangible assets, and impairment charges) and operating EBITA, as management believes this is key in evaluating the results of the segments relative to other companies that operate within the same industry. However, the \u201cCODM\u201d also receives information about the segments\u2019 net revenue.
Finance expenses, finance income, and fair value change of derivatives are not allocated to individual segments as the underlying instruments are managed on a group basis. Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed on a group basis.
The amount of segment assets and liabilities is not disclosed. Segment assets and liabilities are not included in the measures used for allocating resources and assessing segment performance. The Group discloses the goodwill by segment (see note 14) which corresponds to the Groups of CGUs for impairment testing purpose. Hereafter, the Groups of CGU\u2019s for the purpose of testing for impairment of goodwill, defined at the level of the operating segments are referred to as the CGU or the CGU\u2019s (in case of multiple groups of CGU\u2019s).
Therefore, the information used by the \u2018CODM\u2019 to monitor progress, and for decision-making about operational matters is based on the four GBAs.
In accordance with IFRS 8, the Company has the following reportable segments as at 31 December 2024:
| \n Operating segment | \n \n Reportable segment | \n
| \n Resilience | \n \n Resilience | \n
| \n Places | \n \n Places | \n
| \n Mobility | \n \n Mobility | \n
| \n Intelligence | \n \n Intelligence | \n
| \n | \n\n | \n\n | \n\n | \n\n Net revenues by origin | \n \n Non-current operating assets | \n ||
| \n In \u20ac millions | \n \n | \n\n | \n\n | \n\n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n
| \n United States | \n \n | \n\n | \n\n | \n\n 1,427 | \n \n 1,341 | \n \n 105 | \n \n 110 | \n
| \n Canada | \n \n | \n\n | \n\n | \n\n 278 | \n \n 263 | \n \n 98 | \n \n 116 | \n
| \n UK & Ireland | \n \n | \n\n | \n\n | \n\n 897 | \n \n 855 | \n \n 147 | \n \n 164 | \n
| \n Netherlands | \n \n | \n\n | \n\n | \n\n 315 | \n \n 308 | \n \n 41 | \n \n 38 | \n
| \n Germany | \n \n | \n\n | \n\n | \n\n 176 | \n \n 156 | \n \n 16 | \n \n 20 | \n
| \n Belgium | \n \n | \n\n | \n\n | \n\n 140 | \n \n 141 | \n \n 17 | \n \n 19 | \n
| \n Other Europe | \n \n | \n\n | \n\n | \n\n 147 | \n \n 149 | \n \n 11 | \n \n 15 | \n
| \n Asia & Oceania | \n \n | \n\n | \n\n | \n\n 373 | \n \n 415 | \n \n 47 | \n \n 49 | \n
| \n Latin America | \n \n | \n\n | \n\n | \n\n 127 | \n \n 131 | \n \n 6 | \n \n 7 | \n
| \n Total | \n \n | \n\n | \n\n | \n\n 3,880 | \n \n 3,759 | \n \n 488 | \n \n 538 | \n
Non-current operating assets consist of property, plant and equipment, right-of-use assets, and intangible assets (excluding Goodwill).
Gross revenues generated in the Netherlands amounted to \u20ac387 million in 2024 (2023: \u20ac393 million), Net revenues to \u20ac315 million (2023: \u20ac308 million). Total assets in the Netherlands, including intercompany assets of Arcadis N.V. and its Dutch holdings companies, amounted to \u20ac3,126 million (2023: \u20ac2,876 million).
\n\n\nThe Company has no customers that account for more than 10% of total annual revenues.
| \n In \u20ac millions | \n \n Resilience | \n \n Places | \n \n Mobility | \n \n Intelligence | \n \n Total | \n \n Corporate and unallocated amounts | \n \n Total | \n
| \n 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Total gross revenue | \n \n 2,065 | \n \n 1,922 | \n \n 1,038 | \n \n 122 | \n \n 5,147 | \n \n - | \n \n 5,147 | \n
| \n Inter-segment | \n \n (39) | \n \n (83) | \n \n (24) | \n \n (6) | \n \n (152) | \n \n - | \n \n (152) | \n
| \n External gross revenue | \n \n 2,026 | \n \n 1,839 | \n \n 1,014 | \n \n 116 | \n \n 4,995 | \n \n - | \n \n 4,995 | \n
| \n Materials, services of third parties and subcontractors | \n \n (578) | \n \n (361) | \n \n (153) | \n \n (23) | \n \n (1,115) | \n \n - | \n \n (1,115) | \n
| \n Net revenue1 | \n \n 1,448 | \n \n 1,478 | \n \n 861 | \n \n 93 | \n \n 3,880 | \n \n - | \n \n 3,880 | \n
| \n Operating costs | \n \n (1,222) | \n \n (1,311) | \n \n (741) | \n \n (77) | \n \n (3,351) | \n \n (8) | \n \n (3,359) | \n
| \n Other income | \n \n 2 | \n \n 3 | \n \n 2 | \n \n 1 | \n \n 8 | \n \n - | \n \n 8 | \n
| \n Depreciation and amortization | \n \n (40) | \n \n (38) | \n \n (23) | \n \n (10) | \n \n (111) | \n \n - | \n \n (111) | \n
| \n EBITA1 | \n \n 188 | \n \n 132 | \n \n 99 | \n \n 7 | \n \n 426 | \n \n (8) | \n \n 418 | \n
| \n Amortization of other intangible assets | \n \n (2) | \n \n (22) | \n \n (2) | \n \n (3) | \n \n (29) | \n \n - | \n \n (29) | \n
| \n Goodwill impairment charges | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Operating income | \n \n 186 | \n \n 110 | \n \n 97 | \n \n 4 | \n \n 397 | \n \n (8) | \n \n 389 | \n
| \n Operating EBITA1 | \n \n 194 | \n \n 151 | \n \n 100 | \n \n 9 | \n \n 454 | \n \n (7) | \n \n 447 | \n
| \n Total capital expenditure2 | \n \n 16 | \n \n 13 | \n \n 7 | \n \n 8 | \n \n 45 | \n \n - | \n \n 45 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n In \u20ac millions | \n \n Resilience | \n \n Places | \n \n Mobility | \n \n Intelligence | \n \n Total | \n \n Corporate and unallocated amounts | \n \n Total | \n
| \n 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Total gross revenue | \n \n 1,981 | \n \n 1,998 | \n \n 987 | \n \n 125 | \n \n 5,091 | \n \n - | \n \n 5,091 | \n
| \n Inter-segment | \n \n (23) | \n \n (54) | \n \n (8) | \n \n (2) | \n \n (87) | \n \n - | \n \n (87) | \n
| \n External gross revenue | \n \n 1,958 | \n \n 1,944 | \n \n 979 | \n \n 123 | \n \n 5,003 | \n \n - | \n \n 5,003 | \n
| \n Materials, services of third parties and subcontractors | \n \n (615) | \n \n (435) | \n \n (165) | \n \n (29) | \n \n (1,244) | \n \n - | \n \n (1,244) | \n
| \n Net revenue1 | \n \n 1,343 | \n \n 1,509 | \n \n 814 | \n \n 94 | \n \n 3,759 | \n \n - | \n \n 3,759 | \n
| \n Operating costs | \n \n (1,156) | \n \n (1,362) | \n \n (707) | \n \n (78) | \n \n (3,302) | \n \n (6) | \n \n (3,308) | \n
| \n Other income | \n \n 1 | \n \n 4 | \n \n 1 | \n \n 1 | \n \n 6 | \n \n - | \n \n 6 | \n
| \n Depreciation and amortization | \n \n (40) | \n \n (44) | \n \n (23) | \n \n (7) | \n \n (114) | \n \n - | \n \n (114) | \n
| \n EBITA1 | \n \n 148 | \n \n 106 | \n \n 85 | \n \n 10 | \n \n 349 | \n \n (6) | \n \n 343 | \n
| \n Amortization of other intangible assets | \n \n (5) | \n \n (44) | \n \n (4) | \n \n (6) | \n \n (59) | \n \n - | \n \n (59) | \n
| \n Goodwill impairment charges | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Operating income | \n \n 143 | \n \n 62 | \n \n 81 | \n \n 4 | \n \n 290 | \n \n (6) | \n \n 284 | \n
| \n Operating EBITA1 | \n \n 159 | \n \n 137 | \n \n 91 | \n \n 11 | \n \n 397 | \n \n (6) | \n \n 391 | \n
| \n Total capital expenditure2 | \n \n 14 | \n \n 16 | \n \n 9 | \n \n 1 | \n \n 40 | \n \n - | \n \n 40 | \n
An operating segment is a component of the Company that engages in business activities that can result in revenue and expenses, including revenues and expenses related to transactions with other components of the same Company.
The operating segment reporting follows the internal reporting used by the Executive Board of the Company, to manage the business, assess the performance based on the available financial information and to allocate the resources.
Inter-segment pricing is determined on an arm\u2019s length basis. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
\n
Arcadis N.V. indirectly holds 100% of the ordinary shares of all these subsidiaries, and does not hold direct interests in most of them itself as a result of the intermediate holding structure within the Group. All subsidiaries are included in the financial consolidation. The proportion of the voting rights held directly by the parent company does not substantially differ from the proportion of ordinary shares held.
At 31 December 2024, the total non-controlling interest amounted to \u20ac3 million negative (2023: \u20ac2 million negative) and is as such not material for the Group.
The main consolidated companies as at 31 December 2024 are listed below:
| \n Name of subsidiary | \n \n Country of incorporation | \n
| \n Americas | \n \n | \n
| \n Arcadis US, Inc. | \n \n United States of America | \n
| \n DPS Group Inc. | \n \n United States of America | \n
| \n Arcadis Professional Services (Canada) Inc. | \n \n Canada | \n
| \n Arcadis Architects (Canada) Inc. | \n \n Canada | \n
| \n Arcadis Logos S.A. | \n \n Brazil | \n
| \n Arcadis Inc. (formerly: CallisonRTKL, Inc.) | \n \n United States of America | \n
| \n DPS Advanced Technology Group Inc. | \n \n United States of America | \n
| \n ARCADIS Chile S.p.A. | \n \n Chile | \n
| \n ARCADIS Canada Inc. | \n \n Canada | \n
| \n Arcadis, a California Partnership | \n \n United States of America | \n
| \n | \n\n | \n
| \n Europe & Middle East | \n \n | \n
| \n Arcadis Consulting Middle East Ltd. | \n \n United Kingdom | \n
| \n Arcadis LLP | \n \n United Kingdom | \n
| \n Arcadis Consulting (UK) Limited | \n \n United Kingdom | \n
| \n Arcadis Nederland BV | \n \n The Netherlands | \n
| \n Arcadis Germany GmbH | \n \n Germany | \n
| \n Arcadis France S.A.S. | \n \n France | \n
| \n Arcadis Belgium NV | \n \n Belgium | \n
| \n White Rock Insurance (Netherlands) Pcc Limited | \n \n Malta | \n
| \n DPS Engineering & Construction Limited | \n \n Ireland | \n
| \n | \n\n | \n
| \n Asia Pacific | \n \n | \n
| \n Arcadis Hong Kong Ltd. | \n \n Hong Kong | \n
| \n Arcadis Shanghai Ltd. | \n \n China | \n
| \n Arcadis Australia Pacific Holdings Pty Ltd. | \n \n Australia | \n
Subsidiaries are all companies over which the Company has control. Control over an entity exists when the Company is exposed to, or has right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control commences until the date on which control ceases.
\n\n\nUpon the loss of control, the assets and liabilities, non-controlling interests and other components of equity related to the subsidiary are derecognized. Any profit or loss arising on the loss of control is recognized in profit or loss. If a non-controlling interest in the subsidiary is retained, such interest is measured at fair value at the date control is lost. Subsequently, it is accounted for as an equity-accounted investee or as a financial asset, depending on the level of influence retained.
\n\n\nThe Company accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Company. In determining whether a particular set of activities and assets is a business, the Company assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.
IFRS 3 establishes the following principles in relation to the recognition and measurement of items arising in a business combination:
Recognition principle: Identifiable assets acquired, liabilities assumed, and non-controlling interests in the acquiree are recognized separately from goodwill. Acquired intangible assets must be recognized and measured at fair value in accordance with the principles if it is separable or arises from other contractual rights, irrespective of whether the acquiree had recognized the asset prior to the business combination occurring. The Group does not recognize contingent assets acquired in a business combination.
Measurement principle: All assets acquired and liabilities assumed in a business combination are measured at acquisition-date fair value.
Goodwill at acquisition date is measured as the fair value of the consideration transferred plus the recognized amount of any non-controlling interest in the acquiree less the net recognized amount (fair value) of the identifiable assets acquired and liabilities assumed.
Lease liabilities of acquired leases are measured at the present value of the remaining lease payments as if the acquired lease were a new lease at the acquisition date. Right-of-use asset is measured at the same amount as the lease liability, adjusted to reflect favourable or unfavourable terms of the lease when compared with market terms. Right-of-use assets and lease liabilities for leases for which the lease term ends within 12 months of the acquisition date and the underlying asset is of low value are not recognized.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are recognized in profit or loss.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities incurred in connection with the business combination, are expensed.
Contingent consideration payable is recognized at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured, and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognized in profit or loss.
If the Company obtains control of a business that is a joint operation, it remeasures previously held interests in that business.
\n
Arcadis N.V. indirectly holds 100% of the ordinary shares of all these subsidiaries, and does not hold direct interests in most of them itself as a result of the intermediate holding structure within the Group. All subsidiaries are included in the financial consolidation. The proportion of the voting rights held directly by the parent company does not substantially differ from the proportion of ordinary shares held.
At 31 December 2024, the total non-controlling interest amounted to \u20ac3 million negative (2023: \u20ac2 million negative) and is as such not material for the Group.
The main consolidated companies as at 31 December 2024 are listed below:
| \n Name of subsidiary | \n \n Country of incorporation | \n
| \n Americas | \n \n | \n
| \n Arcadis US, Inc. | \n \n United States of America | \n
| \n DPS Group Inc. | \n \n United States of America | \n
| \n Arcadis Professional Services (Canada) Inc. | \n \n Canada | \n
| \n Arcadis Architects (Canada) Inc. | \n \n Canada | \n
| \n Arcadis Logos S.A. | \n \n Brazil | \n
| \n Arcadis Inc. (formerly: CallisonRTKL, Inc.) | \n \n United States of America | \n
| \n DPS Advanced Technology Group Inc. | \n \n United States of America | \n
| \n ARCADIS Chile S.p.A. | \n \n Chile | \n
| \n ARCADIS Canada Inc. | \n \n Canada | \n
| \n Arcadis, a California Partnership | \n \n United States of America | \n
| \n | \n\n | \n
| \n Europe & Middle East | \n \n | \n
| \n Arcadis Consulting Middle East Ltd. | \n \n United Kingdom | \n
| \n Arcadis LLP | \n \n United Kingdom | \n
| \n Arcadis Consulting (UK) Limited | \n \n United Kingdom | \n
| \n Arcadis Nederland BV | \n \n The Netherlands | \n
| \n Arcadis Germany GmbH | \n \n Germany | \n
| \n Arcadis France S.A.S. | \n \n France | \n
| \n Arcadis Belgium NV | \n \n Belgium | \n
| \n White Rock Insurance (Netherlands) Pcc Limited | \n \n Malta | \n
| \n DPS Engineering & Construction Limited | \n \n Ireland | \n
| \n | \n\n | \n
| \n Asia Pacific | \n \n | \n
| \n Arcadis Hong Kong Ltd. | \n \n Hong Kong | \n
| \n Arcadis Shanghai Ltd. | \n \n China | \n
| \n Arcadis Australia Pacific Holdings Pty Ltd. | \n \n Australia | \n
There were no business acquisitions during the year.
\n\n\n| \n In \u20ac millions | \n \n 2024 | \n
| \n Consideration received, satisfied in cash | \n \n 1 | \n
| \n Cash and cash equivalents disposed of | \n \n (0) | \n
| \n Net cash inflows | \n \n 1 | \n
During the year ended 31 December 2024, the Company has realized:
net gain of \u20ac3 million from liquidation of an entity in Hong Kong;
net loss of \u20ac1 million adjustment to gain on sale recognized on prior year divestment of two subsidiaries in US and Canada;\u00a0
net loss of \u20ac0.2 million from divestments of a subsidiary in Ireland.
| \n In \u20ac millions | \n \n 2023 | \n
| \n Consideration received, satisfied in cash | \n \n 7 | \n
| \n Cash and cash equivalents disposed of | \n \n (0) | \n
| \n Net cash inflows | \n \n 7 | \n
During the year ended 31 December 2023, the Company has realized:
net gain of \u20ac2 million from the divestment of two subsidiaries in US and Canada;
net loss of \u20ac4 million from liquidation of an entity in Hong Kong.
The contractual deferred consideration and earn-outs for acquisitions are disclosed below.
| \n In \u20ac millions | \n \n Initial recognition | \n \n Discount | \n \n 2024 Total | \n \n 2023 Total | \n
| \n Balance at 1 January | \n \n 2 | \n \n - | \n \n 2 | \n \n 7 | \n
| \n Fair value adjustments1 | \n \n 1 | \n \n - | \n \n 1 | \n \n - | \n
| \n Interest accrual | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Releases | \n \n - | \n \n - | \n \n - | \n \n (2) | \n
| \n Payments and redemptions | \n \n (2) | \n \n - | \n \n (2) | \n \n (3) | \n
| \n Exchange rate differences | \n \n 0 | \n \n - | \n \n 0 | \n \n (0) | \n
| \n Balance at 31 December | \n \n 1 | \n \n - | \n \n 1 | \n \n 2 | \n
An amount of \u20ac1 million (2023: \u20ac2 million) is due within one year and reported as \u2018Other current liabilities\u2019 (see note 30).\u00a0This relates to after payments associated with the remaining contingent consideration from acquisition of Hotspot by IBI Group prior to Arcadis acquisition.
The payments made in 2024 mainly relate to RLC Architects (IBI acquisition from 2022) for \u20ac1.1 million, Hotspot (IBI acquisition from 2022) for \u20ac0.6 million, Teranis (IBI acquisition from 2021) for \u20ac0.3 million, and Water Platform Company (acquisition from 2022) for \u20ac0.2 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1847m1438p": { "value": "\n\n\nSubsidiaries are all companies over which the Company has control. Control over an entity exists when the Company is exposed to, or has right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control commences until the date on which control ceases.
\n\n\nUpon the loss of control, the assets and liabilities, non-controlling interests and other components of equity related to the subsidiary are derecognized. Any profit or loss arising on the loss of control is recognized in profit or loss. If a non-controlling interest in the subsidiary is retained, such interest is measured at fair value at the date control is lost. Subsequently, it is accounted for as an equity-accounted investee or as a financial asset, depending on the level of influence retained.
\n\n\nThe Company accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Company. In determining whether a particular set of activities and assets is a business, the Company assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.
IFRS 3 establishes the following principles in relation to the recognition and measurement of items arising in a business combination:
Recognition principle: Identifiable assets acquired, liabilities assumed, and non-controlling interests in the acquiree are recognized separately from goodwill. Acquired intangible assets must be recognized and measured at fair value in accordance with the principles if it is separable or arises from other contractual rights, irrespective of whether the acquiree had recognized the asset prior to the business combination occurring. The Group does not recognize contingent assets acquired in a business combination.
Measurement principle: All assets acquired and liabilities assumed in a business combination are measured at acquisition-date fair value.
Goodwill at acquisition date is measured as the fair value of the consideration transferred plus the recognized amount of any non-controlling interest in the acquiree less the net recognized amount (fair value) of the identifiable assets acquired and liabilities assumed.
Lease liabilities of acquired leases are measured at the present value of the remaining lease payments as if the acquired lease were a new lease at the acquisition date. Right-of-use asset is measured at the same amount as the lease liability, adjusted to reflect favourable or unfavourable terms of the lease when compared with market terms. Right-of-use assets and lease liabilities for leases for which the lease term ends within 12 months of the acquisition date and the underlying asset is of low value are not recognized.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are recognized in profit or loss.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities incurred in connection with the business combination, are expensed.
Contingent consideration payable is recognized at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured, and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognized in profit or loss.
If the Company obtains control of a business that is a joint operation, it remeasures previously held interests in that business.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1848m1439p": { "value": "\n\n\nSubsidiaries are all companies over which the Company has control. Control over an entity exists when the Company is exposed to, or has right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control commences until the date on which control ceases.
\n\n\nUpon the loss of control, the assets and liabilities, non-controlling interests and other components of equity related to the subsidiary are derecognized. Any profit or loss arising on the loss of control is recognized in profit or loss. If a non-controlling interest in the subsidiary is retained, such interest is measured at fair value at the date control is lost. Subsequently, it is accounted for as an equity-accounted investee or as a financial asset, depending on the level of influence retained.
\n\n\nThe Company accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Company. In determining whether a particular set of activities and assets is a business, the Company assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.
IFRS 3 establishes the following principles in relation to the recognition and measurement of items arising in a business combination:
Recognition principle: Identifiable assets acquired, liabilities assumed, and non-controlling interests in the acquiree are recognized separately from goodwill. Acquired intangible assets must be recognized and measured at fair value in accordance with the principles if it is separable or arises from other contractual rights, irrespective of whether the acquiree had recognized the asset prior to the business combination occurring. The Group does not recognize contingent assets acquired in a business combination.
Measurement principle: All assets acquired and liabilities assumed in a business combination are measured at acquisition-date fair value.
Goodwill at acquisition date is measured as the fair value of the consideration transferred plus the recognized amount of any non-controlling interest in the acquiree less the net recognized amount (fair value) of the identifiable assets acquired and liabilities assumed.
Lease liabilities of acquired leases are measured at the present value of the remaining lease payments as if the acquired lease were a new lease at the acquisition date. Right-of-use asset is measured at the same amount as the lease liability, adjusted to reflect favourable or unfavourable terms of the lease when compared with market terms. Right-of-use assets and lease liabilities for leases for which the lease term ends within 12 months of the acquisition date and the underlying asset is of low value are not recognized.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are recognized in profit or loss.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities incurred in connection with the business combination, are expensed.
Contingent consideration payable is recognized at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured, and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognized in profit or loss.
If the Company obtains control of a business that is a joint operation, it remeasures previously held interests in that business.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1846m1437p": { "value": "\n\n\nSubsidiaries are all companies over which the Company has control. Control over an entity exists when the Company is exposed to, or has right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control commences until the date on which control ceases.
\n\n\nUpon the loss of control, the assets and liabilities, non-controlling interests and other components of equity related to the subsidiary are derecognized. Any profit or loss arising on the loss of control is recognized in profit or loss. If a non-controlling interest in the subsidiary is retained, such interest is measured at fair value at the date control is lost. Subsequently, it is accounted for as an equity-accounted investee or as a financial asset, depending on the level of influence retained.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1850m1440p": { "value": "
Arcadis N.V. indirectly holds 100% of the ordinary shares of all these subsidiaries, and does not hold direct interests in most of them itself as a result of the intermediate holding structure within the Group. All subsidiaries are included in the financial consolidation. The proportion of the voting rights held directly by the parent company does not substantially differ from the proportion of ordinary shares held.
At 31 December 2024, the total non-controlling interest amounted to \u20ac3 million negative (2023: \u20ac2 million negative) and is as such not material for the Group.
The main consolidated companies as at 31 December 2024 are listed below:
| \n Name of subsidiary | \n \n Country of incorporation | \n
| \n Americas | \n \n | \n
| \n Arcadis US, Inc. | \n \n United States of America | \n
| \n DPS Group Inc. | \n \n United States of America | \n
| \n Arcadis Professional Services (Canada) Inc. | \n \n Canada | \n
| \n Arcadis Architects (Canada) Inc. | \n \n Canada | \n
| \n Arcadis Logos S.A. | \n \n Brazil | \n
| \n Arcadis Inc. (formerly: CallisonRTKL, Inc.) | \n \n United States of America | \n
| \n DPS Advanced Technology Group Inc. | \n \n United States of America | \n
| \n ARCADIS Chile S.p.A. | \n \n Chile | \n
| \n ARCADIS Canada Inc. | \n \n Canada | \n
| \n Arcadis, a California Partnership | \n \n United States of America | \n
| \n | \n\n | \n
| \n Europe & Middle East | \n \n | \n
| \n Arcadis Consulting Middle East Ltd. | \n \n United Kingdom | \n
| \n Arcadis LLP | \n \n United Kingdom | \n
| \n Arcadis Consulting (UK) Limited | \n \n United Kingdom | \n
| \n Arcadis Nederland BV | \n \n The Netherlands | \n
| \n Arcadis Germany GmbH | \n \n Germany | \n
| \n Arcadis France S.A.S. | \n \n France | \n
| \n Arcadis Belgium NV | \n \n Belgium | \n
| \n White Rock Insurance (Netherlands) Pcc Limited | \n \n Malta | \n
| \n DPS Engineering & Construction Limited | \n \n Ireland | \n
| \n | \n\n | \n
| \n Asia Pacific | \n \n | \n
| \n Arcadis Hong Kong Ltd. | \n \n Hong Kong | \n
| \n Arcadis Shanghai Ltd. | \n \n China | \n
| \n Arcadis Australia Pacific Holdings Pty Ltd. | \n \n Australia | \n
The nature of business of the Group\u2019s associates and joint ventures are similar. They provide comprehensive knowledge-based consultancy, design, engineering and management services in the area of infrastructure, water, environment and buildings. The most significant investments in associates and joint ventures are listed below.
| \n Name of entity | \n \n Place of business/ country of incorporation | \n \n Associate/ joint venture | \n \n % of ownership interest 2024 | \n \n % of ownership interest 2023 | \n
| \n Geodynamique et Structure S.A. | \n \n France | \n \n Associate | \n \n 48.68% | \n \n 48.68% | \n
| \n Asset Rail B.V. | \n \n Netherlands | \n \n Associate | \n \n 40.00% | \n \n 40.00% | \n
| \n CARE/RTKL Ltd | \n \n Saudi Arabia | \n \n Joint venture | \n \n 45.00% | \n \n 45.00% | \n
| \n CTR, a Joint Venture of CH2MHill, Inc., Teng & Associates, Inc. and The Rise Group, LLC | \n \n United States | \n \n Joint venture | \n \n 33.30% | \n \n 33.30% | \n
The movement in associates and joint ventures in the Consolidated balance sheet is as follows:
| \n | \n\n Associates | \n \n Associates | \n \n Joint ventures | \n \n Joint ventures | \n \n Total | \n \n Total | \n
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n 10 | \n \n 10 | \n \n 2 | \n \n 2 | \n \n 11 | \n \n 12 | \n
| \n Share in result by Arcadis | \n \n 2 | \n \n 4 | \n \n 0 | \n \n (0) | \n \n 3 | \n \n 4 | \n
| \n Investments | \n \n - | \n \n 0 | \n \n 0 | \n \n 0 | \n \n 0 | \n \n 0 | \n
| \n Received dividends | \n \n (3) | \n \n (4) | \n \n - | \n \n (0) | \n \n (3) | \n \n (4) | \n
| \n Exchange rate differences | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n
| \n Balance at 31 December | \n \n 9 | \n \n 10 | \n \n 2 | \n \n 2 | \n \n 11 | \n \n 11 | \n
There are no loans to associates or joint ventures outstanding as at 31 December 2024 (2023: nil).
The joint ventures have share capital consisting solely of ordinary shares, which are held indirectly by the Group, and are non-listed shares. As such there is no available quoted market price for the shares. The Group has no contingent liabilities relating to interests in joint ventures at 31 December 2024 (2023: nil).
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n 4 | \n \n 4 | \n
| \n Fair value changes | \n \n (0) | \n \n 1 | \n
| \n Exchange rate differences | \n \n (0) | \n \n (0) | \n
| \n Balance at 31 December | \n \n 4 | \n \n 4 | \n
The other investments at 31 December 2024 mainly correspond to:
Value of the investment in the Techstars cohorts for \u20ac3 million (2023: \u20ac3 million).
Value of investment in Switch Energy for \u20ac0.3 million (2023: \u20ac1 million).
A level 3 valuation was used to determine the fair value. Due to the inherent uncertainty of valuation of privately held companies, the fair value may however differ from what would have been used had a readily available market existed for all companies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1854m1442p": { "value": "\n\n\nGross revenues arise from the following major categories:
| \n In \u20ac millions | \n \n 2024 | \n \n 20231 | \n
| \n Revenue from services | \n \n 3,993 | \n \n 3,885 | \n
| \n Construction contract revenue | \n \n 983 | \n \n 1,095 | \n
| \n Revenue from licenses | \n \n 19 | \n \n 23 | \n
| \n Total Gross Revenue | \n \n 4,995 | \n \n 5,003 | \n
Revenues from services rendered represent fee income receivable in respect of services provided during the period. Construction contracts include the rendering of services, which are directly related to the construction of assets, contracts for the destruction or restoration of assets, and the restoration of the environment following the demolition of assets. Revenues from licenses represent fee income receivable in respect of allowing customers using Arcadis developed software, and mainly relate to the operating segment Intelligence.
\n\n\nThe timing of revenue recognition in 2024 was as follows:
| \n In \u20ac millions | \n \n 2024 | \n \n 20231 | \n
| \n At a point in time | \n \n 7 | \n \n 16 | \n
| \n Over time | \n \n 4,988 | \n \n 4,987 | \n
| \n Total Gross Revenue | \n \n 4,995 | \n \n 5,003 | \n
The Group has recognized the following assets and liabilities related to contracts with customers:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Trade receivables | \n \n 761 | \n \n 731 | \n
| \n Contract assets (Unbilled receivables) | \n \n 619 | \n \n 580 | \n
| \n Contract liabilities (Billing in excess of revenue) | \n \n (516) | \n \n (503) | \n
| \n Other non-current assets | \n \n 1 | \n \n 1 | \n
| \n Provision for onerous contracts (loss provisions) | \n \n (13) | \n \n (13) | \n
| \n Total | \n \n 852 | \n \n 796 | \n
The Other non-current assets relate to long-term retentions. The Expected Credit Loss allowance is included in the Contract assets (unbilled receivables) balance, see note 22.
\n\n\nThe incremental costs to obtain a contract amounted to nil in 2024 and 2023. The practical expedient of paragraph 94 of IFRS 15, stating that those costs can be expensed when incurred if the amortization period is one year or less, is not applied.
\n\n\nThe table below includes revenue expected to be recognized in the future related to performance obligations that are (partially) unsatisfied at the reporting date. The practical expedient of paragraph 121 of IFRS 15 is applied, and the table therefore does not disclose information about remaining performance obligations that have original expected duration of one year or less. The amounts differ from the contracted backlog\u00a0and the actual revenue to be recognized per year may differ from the estimated revenue recognized per year based on the resource mix or profiling that can change over the project life cycle.
| \n In \u20ac millions | \n \n 2025 | \n \n 2026 | \n \n 2027 | \n \n After 2027 | \n \n Total | \n
| \n Expected Gross revenue from (partially) unsatisfied performance obligations | \n \n 2,049 | \n \n 673 | \n \n 367 | \n \n 336 | \n \n 3,425 | \n
Revenue is recognized by the Group following the five-step model in IFRS 15, consisting of:
identification of the contract;
identification of the performance obligations in the contract;
determination of the transaction price;
allocation of the transaction price to performance obligations in the contract, and
recognition of revenue.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties (e.g. VAT). It includes initial amounts agreed in the contract plus any variations in contract work and variable consideration, to the extent that it is highly probably that its inclusion will not result in a significant revenue reversal in the future when the uncertainty has been subsequently resolved.
The Group recognizes revenue when it transfers control over a product or service to a customer. For performance obligations that are transferred over time, revenue is recognized in profit or loss in proportion to the percentage of completion of the transaction at reporting date. The percentage of completion is measured by actual (labor) costs incurred in relation to total estimated (labor) costs (input method). In the Group\u2019s view this best reflects the value delivered to the customer in a business that mainly uses human and intellectual capital (of its employees) for completion of the performance obligations towards the customer.
For performance obligations that are transferred at a point in time, revenues and costs are recognized in profit or loss when the customer receives the ability to direct the use of the asset and substantially obtains all the benefits of it.
\n\n\nRevenue from (software) licenses is recognized over time, based on time elapsed, in case of a \u2018right to access\u2019. It is recognized at a point in time in case of a \u2018right to use\u2019, but not before the beginning of the license period. Revenue from Software as a Service (SaaS) is treated as a right to access and is recognized over time, based on time elapsed.
\n\n\nContract costs include the costs to fulfil a contract, such as direct labor, costs of materials, services of third parties and subcontractors, and costs that are explicitly chargeable to the customer under the contract. They are recognized as an asset in Contract assets and liabilities, if they are expected to be recovered.
Costs to obtain a contract are only recognized as a contract cost asset in Contract assets and liabilities if they are incremental and expected to be recovered. They are recognized on a systemic basis consistent with the recognition of costs to fulfill a contract.
\n\n\nEstimates of project management are used to assess the progress and estimated outcome of a performance obligation. When it becomes probable that the total expected costs to complete all performance obligations in a contract exceed the total transaction price (consideration) of these performance obligations, a provision for onerous contracts is recognized for the lower of the unavoidable costs and the costs of termination.
\n\n\nArcadis generally does not have any significant contracts where the period between the transfer of the promised goods or services to customer and the payment by the customer, as contractually agreed, exceeds one year. If applicable, the transaction price is adjusted for the time value of money. Payments of customers after the agreed payment term are covered by the accounting policy on Trade receivables, see note 21.
\n\n\nFor each performance obligation the Group assesses whether the nature of Arcadis\u2019 commitment is to provide the goods and/or services itself, or to arrange for those good(s) and/or service(s) to be provided by another party. Arcadis assesses whether it controls the specified good(s) and/or service(s) before it is transferred to the customer.
Arcadis is typically a principal in case of subcontracted work, as Arcadis is primarily responsible for fulfilling the promise to provide the specified good(s) and/or service(s) and bears primary responsibility for it meeting customer specifications and has discretion in establishing the price towards the customer. When Arcadis acts as an agent, only the fee/commission is recognized on a net basis in Gross revenues.
\n\n\nGross revenues consist of external revenues net of value-added tax, rebates and discounts and after eliminating sales within the Group. Net revenue is a non-GAAP performance measure, which represents revenue generated by own staff. It is a sub-total calculated as Gross revenue minus Materials, services of third parties and subcontractors, which are project-related costs of materials and services charged by third parties, including cost of subcontractors.
\n\n\nGross revenues arise from the following major categories:
| \n In \u20ac millions | \n \n 2024 | \n \n 20231 | \n
| \n Revenue from services | \n \n 3,993 | \n \n 3,885 | \n
| \n Construction contract revenue | \n \n 983 | \n \n 1,095 | \n
| \n Revenue from licenses | \n \n 19 | \n \n 23 | \n
| \n Total Gross Revenue | \n \n 4,995 | \n \n 5,003 | \n
Revenues from services rendered represent fee income receivable in respect of services provided during the period. Construction contracts include the rendering of services, which are directly related to the construction of assets, contracts for the destruction or restoration of assets, and the restoration of the environment following the demolition of assets. Revenues from licenses represent fee income receivable in respect of allowing customers using Arcadis developed software, and mainly relate to the operating segment Intelligence.
\n\n\nThe timing of revenue recognition in 2024 was as follows:
| \n In \u20ac millions | \n \n 2024 | \n \n 20231 | \n
| \n At a point in time | \n \n 7 | \n \n 16 | \n
| \n Over time | \n \n 4,988 | \n \n 4,987 | \n
| \n Total Gross Revenue | \n \n 4,995 | \n \n 5,003 | \n
The Group has recognized the following assets and liabilities related to contracts with customers:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Trade receivables | \n \n 761 | \n \n 731 | \n
| \n Contract assets (Unbilled receivables) | \n \n 619 | \n \n 580 | \n
| \n Contract liabilities (Billing in excess of revenue) | \n \n (516) | \n \n (503) | \n
| \n Other non-current assets | \n \n 1 | \n \n 1 | \n
| \n Provision for onerous contracts (loss provisions) | \n \n (13) | \n \n (13) | \n
| \n Total | \n \n 852 | \n \n 796 | \n
The Other non-current assets relate to long-term retentions. The Expected Credit Loss allowance is included in the Contract assets (unbilled receivables) balance, see note 22.
\n\n\nThe incremental costs to obtain a contract amounted to nil in 2024 and 2023. The practical expedient of paragraph 94 of IFRS 15, stating that those costs can be expensed when incurred if the amortization period is one year or less, is not applied.
\n\n\nThe table below includes revenue expected to be recognized in the future related to performance obligations that are (partially) unsatisfied at the reporting date. The practical expedient of paragraph 121 of IFRS 15 is applied, and the table therefore does not disclose information about remaining performance obligations that have original expected duration of one year or less. The amounts differ from the contracted backlog\u00a0and the actual revenue to be recognized per year may differ from the estimated revenue recognized per year based on the resource mix or profiling that can change over the project life cycle.
| \n In \u20ac millions | \n \n 2025 | \n \n 2026 | \n \n 2027 | \n \n After 2027 | \n \n Total | \n
| \n Expected Gross revenue from (partially) unsatisfied performance obligations | \n \n 2,049 | \n \n 673 | \n \n 367 | \n \n 336 | \n \n 3,425 | \n
Revenue is recognized by the Group following the five-step model in IFRS 15, consisting of:
identification of the contract;
identification of the performance obligations in the contract;
determination of the transaction price;
allocation of the transaction price to performance obligations in the contract, and
recognition of revenue.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties (e.g. VAT). It includes initial amounts agreed in the contract plus any variations in contract work and variable consideration, to the extent that it is highly probably that its inclusion will not result in a significant revenue reversal in the future when the uncertainty has been subsequently resolved.
The Group recognizes revenue when it transfers control over a product or service to a customer. For performance obligations that are transferred over time, revenue is recognized in profit or loss in proportion to the percentage of completion of the transaction at reporting date. The percentage of completion is measured by actual (labor) costs incurred in relation to total estimated (labor) costs (input method). In the Group\u2019s view this best reflects the value delivered to the customer in a business that mainly uses human and intellectual capital (of its employees) for completion of the performance obligations towards the customer.
For performance obligations that are transferred at a point in time, revenues and costs are recognized in profit or loss when the customer receives the ability to direct the use of the asset and substantially obtains all the benefits of it.
\n\n\nRevenue from (software) licenses is recognized over time, based on time elapsed, in case of a \u2018right to access\u2019. It is recognized at a point in time in case of a \u2018right to use\u2019, but not before the beginning of the license period. Revenue from Software as a Service (SaaS) is treated as a right to access and is recognized over time, based on time elapsed.
\n\n\nContract costs include the costs to fulfil a contract, such as direct labor, costs of materials, services of third parties and subcontractors, and costs that are explicitly chargeable to the customer under the contract. They are recognized as an asset in Contract assets and liabilities, if they are expected to be recovered.
Costs to obtain a contract are only recognized as a contract cost asset in Contract assets and liabilities if they are incremental and expected to be recovered. They are recognized on a systemic basis consistent with the recognition of costs to fulfill a contract.
\n\n\nEstimates of project management are used to assess the progress and estimated outcome of a performance obligation. When it becomes probable that the total expected costs to complete all performance obligations in a contract exceed the total transaction price (consideration) of these performance obligations, a provision for onerous contracts is recognized for the lower of the unavoidable costs and the costs of termination.
\n\n\nArcadis generally does not have any significant contracts where the period between the transfer of the promised goods or services to customer and the payment by the customer, as contractually agreed, exceeds one year. If applicable, the transaction price is adjusted for the time value of money. Payments of customers after the agreed payment term are covered by the accounting policy on Trade receivables, see note 21.
\n\n\nFor each performance obligation the Group assesses whether the nature of Arcadis\u2019 commitment is to provide the goods and/or services itself, or to arrange for those good(s) and/or service(s) to be provided by another party. Arcadis assesses whether it controls the specified good(s) and/or service(s) before it is transferred to the customer.
Arcadis is typically a principal in case of subcontracted work, as Arcadis is primarily responsible for fulfilling the promise to provide the specified good(s) and/or service(s) and bears primary responsibility for it meeting customer specifications and has discretion in establishing the price towards the customer. When Arcadis acts as an agent, only the fee/commission is recognized on a net basis in Gross revenues.
\n\n\nGross revenues consist of external revenues net of value-added tax, rebates and discounts and after eliminating sales within the Group. Net revenue is a non-GAAP performance measure, which represents revenue generated by own staff. It is a sub-total calculated as Gross revenue minus Materials, services of third parties and subcontractors, which are project-related costs of materials and services charged by third parties, including cost of subcontractors.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f2912m2098p": { "value": "\n\n\nGross revenues consist of external revenues net of value-added tax, rebates and discounts and after eliminating sales within the Group. Net revenue is a non-GAAP performance measure, which represents revenue generated by own staff. It is a sub-total calculated as Gross revenue minus Materials, services of third parties and subcontractors, which are project-related costs of materials and services charged by third parties, including cost of subcontractors.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3077m2199p": { "value": "\n\n\n| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Gain / (loss) on divestments | \n \n 2 | \n \n (2) | \n
| \n Government grants | \n \n 1 | \n \n 2 | \n
| \n Other | \n \n 5 | \n \n 6 | \n
| \n Total Other income/ (expense) | \n \n 8 | \n \n 6 | \n
Gain/ (loss) on divestments is related to the gains and losses recognized on the disposal of consolidated entities in 2024 and 2023, respectively (see note 6).
The category \u2018Other\u2019 included, amongst others, gain on sale of assets and gain on derecognition of leases, and\u00a0several other individually non-significant items.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3481m1443p": { "value": "\n\n\nOther income (expense) includes results that arise from events or transactions that are clearly distinct from the ordinary activities of the Company. Gains on the sale of assets are recognized as part of Other income (expense).
\n| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Gain / (loss) on divestments | \n \n 2 | \n \n (2) | \n
| \n Government grants | \n \n 1 | \n \n 2 | \n
| \n Other | \n \n 5 | \n \n 6 | \n
| \n Total Other income/ (expense) | \n \n 8 | \n \n 6 | \n
Gain/ (loss) on divestments is related to the gains and losses recognized on the disposal of consolidated entities in 2024 and 2023, respectively (see note 6).
The category \u2018Other\u2019 included, amongst others, gain on sale of assets and gain on derecognition of leases, and\u00a0several other individually non-significant items.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3330m1444p": { "value": "| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Gain / (loss) on divestments | \n \n 2 | \n \n (2) | \n
| \n Government grants | \n \n 1 | \n \n 2 | \n
| \n Other | \n \n 5 | \n \n 6 | \n
| \n Total Other income/ (expense) | \n \n 8 | \n \n 6 | \n
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Salaries and wages | \n \n 2,225 | \n \n 2,197 | \n
| \n Social charges | \n \n 261 | \n \n 243 | \n
| \n Pension and early retirement charges | \n \n 98 | \n \n 96 | \n
| \n Other personnel costs (including temporary labor) | \n \n 404 | \n \n 408 | \n
| \n Total Personnel costs | \n \n 2,988 | \n \n 2,944 | \n
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Computer related | \n \n 126 | \n \n 122 | \n
| \n Audit and consultancy services | \n \n 61 | \n \n 45 | \n
| \n Occupancy | \n \n 37 | \n \n 40 | \n
| \n Travel | \n \n 36 | \n \n 35 | \n
| \n Insurances | \n \n 22 | \n \n 21 | \n
| \n Office related | \n \n 17 | \n \n 18 | \n
| \n Marketing and advertising | \n \n 15 | \n \n 15 | \n
| \n Other | \n \n 57 | \n \n 68 | \n
| \n Total Other operational costs | \n \n 371 | \n \n 364 | \n
The higher Audit and consultancy services in current year was due to increase in audit and advisory services from IBI and DPS and from the Group's first year application of CSRD sustainability reporting.
The category \u201cOther\u201d included in 2024, amongst others:
the impact of changes in provisions for trade receivables (expected credit loss) of \u20ac0.3 million, expense (2023: \u20ac12 million, expense) (see note 21);
restructuring provision of \u20ac2 million, expense (2023: \u20ac6 million, expense);
net litigation expense of \u20ac16 million (2023: \u20ac11 million, expense) (see note 28);
membership and licenses renewals of \u20ac10 million, expense (2023: \u20ac9 million, expense);
cost of equipment of \u20ac5 million, expense (2023: \u20ac5 million, expense).
The average number of employees in 2024 was 33,327 (2023: 33,379) spread across the below global areas:
| \n | \n\n 2024 | \n \n 2023 | \n
| \n Resilience | \n \n 10,888 | \n \n 10,834 | \n
| \n Places\u00a0 | \n \n 10,964 | \n \n 11,328 | \n
| \n Mobility | \n \n 6,377 | \n \n 6,407 | \n
| \n Intelligence | \n \n 1,036 | \n \n 1,036 | \n
| \n Corporate | \n \n 4,062 | \n \n 3,774 | \n
| \n Total | \n \n 33,327 | \n \n 33,379 | \n
During 2024, an average of 30,942 (2023: 30,895) employees worked outside the Netherlands.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1864m1447p": { "value": "\n\n\n| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Salaries and wages | \n \n 2,225 | \n \n 2,197 | \n
| \n Social charges | \n \n 261 | \n \n 243 | \n
| \n Pension and early retirement charges | \n \n 98 | \n \n 96 | \n
| \n Other personnel costs (including temporary labor) | \n \n 404 | \n \n 408 | \n
| \n Total Personnel costs | \n \n 2,988 | \n \n 2,944 | \n
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Computer related | \n \n 126 | \n \n 122 | \n
| \n Audit and consultancy services | \n \n 61 | \n \n 45 | \n
| \n Occupancy | \n \n 37 | \n \n 40 | \n
| \n Travel | \n \n 36 | \n \n 35 | \n
| \n Insurances | \n \n 22 | \n \n 21 | \n
| \n Office related | \n \n 17 | \n \n 18 | \n
| \n Marketing and advertising | \n \n 15 | \n \n 15 | \n
| \n Other | \n \n 57 | \n \n 68 | \n
| \n Total Other operational costs | \n \n 371 | \n \n 364 | \n
The higher Audit and consultancy services in current year was due to increase in audit and advisory services from IBI and DPS and from the Group's first year application of CSRD sustainability reporting.
The category \u201cOther\u201d included in 2024, amongst others:
the impact of changes in provisions for trade receivables (expected credit loss) of \u20ac0.3 million, expense (2023: \u20ac12 million, expense) (see note 21);
restructuring provision of \u20ac2 million, expense (2023: \u20ac6 million, expense);
net litigation expense of \u20ac16 million (2023: \u20ac11 million, expense) (see note 28);
membership and licenses renewals of \u20ac10 million, expense (2023: \u20ac9 million, expense);
cost of equipment of \u20ac5 million, expense (2023: \u20ac5 million, expense).
The average number of employees in 2024 was 33,327 (2023: 33,379) spread across the below global areas:
| \n | \n\n 2024 | \n \n 2023 | \n
| \n Resilience | \n \n 10,888 | \n \n 10,834 | \n
| \n Places\u00a0 | \n \n 10,964 | \n \n 11,328 | \n
| \n Mobility | \n \n 6,377 | \n \n 6,407 | \n
| \n Intelligence | \n \n 1,036 | \n \n 1,036 | \n
| \n Corporate | \n \n 4,062 | \n \n 3,774 | \n
| \n Total | \n \n 33,327 | \n \n 33,379 | \n
During 2024, an average of 30,942 (2023: 30,895) employees worked outside the Netherlands.
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3411m2194p": { "value": "\n\n\nAll employee-related costs as well as non-project-related out-of-pocket expenses and related restructuring costs, are recognized as operational cost as incurred.
Operational costs include, amongst others, the costs of licenses, testing, data conversation and training costs relating to Cloud computing arrangements that do not provide control over an intangible asset. Part of these costs could be personnel costs if the activities are performed by Arcadis\u2019 personnel.
\n| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Salaries and wages | \n \n 2,225 | \n \n 2,197 | \n
| \n Social charges | \n \n 261 | \n \n 243 | \n
| \n Pension and early retirement charges | \n \n 98 | \n \n 96 | \n
| \n Other personnel costs (including temporary labor) | \n \n 404 | \n \n 408 | \n
| \n Total Personnel costs | \n \n 2,988 | \n \n 2,944 | \n
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Computer related | \n \n 126 | \n \n 122 | \n
| \n Audit and consultancy services | \n \n 61 | \n \n 45 | \n
| \n Occupancy | \n \n 37 | \n \n 40 | \n
| \n Travel | \n \n 36 | \n \n 35 | \n
| \n Insurances | \n \n 22 | \n \n 21 | \n
| \n Office related | \n \n 17 | \n \n 18 | \n
| \n Marketing and advertising | \n \n 15 | \n \n 15 | \n
| \n Other | \n \n 57 | \n \n 68 | \n
| \n Total Other operational costs | \n \n 371 | \n \n 364 | \n
The higher Audit and consultancy services in current year was due to increase in audit and advisory services from IBI and DPS and from the Group's first year application of CSRD sustainability reporting.
The category \u201cOther\u201d included in 2024, amongst others:
the impact of changes in provisions for trade receivables (expected credit loss) of \u20ac0.3 million, expense (2023: \u20ac12 million, expense) (see note 21);
restructuring provision of \u20ac2 million, expense (2023: \u20ac6 million, expense);
net litigation expense of \u20ac16 million (2023: \u20ac11 million, expense) (see note 28);
membership and licenses renewals of \u20ac10 million, expense (2023: \u20ac9 million, expense);
cost of equipment of \u20ac5 million, expense (2023: \u20ac5 million, expense).
The average number of employees in 2024 was 33,327 (2023: 33,379) spread across the below global areas:
| \n | \n\n 2024 | \n \n 2023 | \n
| \n Resilience | \n \n 10,888 | \n \n 10,834 | \n
| \n Places\u00a0 | \n \n 10,964 | \n \n 11,328 | \n
| \n Mobility | \n \n 6,377 | \n \n 6,407 | \n
| \n Intelligence | \n \n 1,036 | \n \n 1,036 | \n
| \n Corporate | \n \n 4,062 | \n \n 3,774 | \n
| \n Total | \n \n 33,327 | \n \n 33,379 | \n
During 2024, an average of 30,942 (2023: 30,895) employees worked outside the Netherlands.
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1862m1445p": { "value": "All employee-related costs as well as non-project-related out-of-pocket expenses and related restructuring costs, are recognized as operational cost as incurred.
Operational costs include, amongst others, the costs of licenses, testing, data conversation and training costs relating to Cloud computing arrangements that do not provide control over an intangible asset. Part of these costs could be personnel costs if the activities are performed by Arcadis\u2019 personnel.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1867m1448p": { "value": "\n\n\nTo stimulate the realization of long-term Company goals and objectives, Arcadis N.V. uses Long-Term Incentive Plans (LTIPs). Since 2014, securities under LTIPs are solely granted in the form of Restricted Share Units (RSUs) and represent an equal number of ordinary shares, subject to meeting the applicable vesting conditions. The RSUs will be converted into ordinary shares on the vesting date and are delivered as soon as practical thereafter.
RSUs are granted conditionally and depend on achieving/meeting certain conditions during the vesting period.
To prevent dilution, (a portion of) the shares required to meet the obligations from exercising LTIPs can be purchased by the Company (instead of issuing new shares), with due consideration to the Company\u2019s balance sheet, in particular available freely distributable reserves and available cash. Alternatively, shares may be issued, whereby it is intended to limit this to 1% of the number of issued shares.
\n\n\nIn April 2019, the Arcadis N.V. 2019 Long-Term Incentive Plan (2019 LTIP) was approved by the General Meeting. Based on this plan the Company can grant equity-settled and cash-settled awards to eligible employees. Conditional performance shares granted to Executive Board members must be held for two more years after vesting.
In summary the following applies to these grants:
Annual grant to Executive Board (EB) and Executive Leadership Team (ELT) members: subject to continued employment during the vesting period of three years, and achieving performance conditions (1/3 Total Shareholder Return, 1/3 Earnings per share and 1/3 sustainability);
Annual grant to other employees: subject to continued employment during the vesting period of three years; no performance conditions.
For EB and ELT members, the position of Arcadis within the peer group, after three years, determines the final number of shares subject to meeting a Total Shareholder Return condition (1/3) that vest and become unconditional, in accordance with the following performance incentive zones:
| \n RSUs that vest for EB/ELT | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n||
| \n Ranking | \n \n 14-8 | \n \n 7 | \n \n 6 | \n \n 5 | \n \n 4 | \n \n 3 | \n \n 2 | \n \n 1 | \n
| \n Vesting | \n \n 0% | \n \n 50% | \n \n 75% | \n \n 100% | \n \n 125% | \n \n 150% | \n \n 175% | \n \n 200% | \n
In 2023, the Supervisory Board approved the continuation of the Arcadis N.V. 2019 Long-Term Incentive Plan in the form of the Arcadis N.V. 2023 Long-Term Incentive Plan (2023 LTIP). The Plan was approved by the General Meeting in May 2023.
2023 LTIP terms are the same as 2019 LTIP. The Company can grant equity-settled and cash-settled awards to eligible employees. Conditional shares based on continued employment and achievement of performance conditions are granted to EB and ELT members. Grants to other employees are in principle only subject to continued employment during the vesting period.
The performance incentive zones for meeting the Total Shareholder Return condition presented in the 2019 LTIP applies to 2023 LTIP.
\n\n\nOutstanding options were fully exercised in 2023 and no new options have been issued during the year ended 31 December 2024.
\n\n\nIn 2024, the following number of RSUs have been granted under the 2023 LTIP:
| \n | \n\n Number of RSUs | \n \n Grant date | \n \n Vesting date1 | \n \n Share price at grant date | \n \n Fair value | \n
| \n Annual grant EB/ELT | \n \n 52,911 | \n \n 10 May 2024 | \n \n 10 May 2027 | \n \n \u20ac60.75 | \n \n \u20ac64.88/ \u20ac56.90 | \n
| \n Annual grant EB/ELT | \n \n 2,672 | \n \n 6 November 2024 | \n \n 6 November 2027 | \n \n \u20ac64.60 | \n \n \u20ac68.99/ \u20ac60.51 | \n
| \n Annual grant other employees | \n \n 121,090 | \n \n 10 May 2024 | \n \n 10 May 2027 | \n \n \u20ac60.75 | \n \n \u20ac56.90 | \n
| \n Annual grant other employees | \n \n 349 | \n \n 6 November 2024 | \n \n 6 November 2027 | \n \n \u20ac 64.60 | \n \n \u20ac68.99/ \u20ac60.51 | \n
| \n Annual grant other employees | \n \n 788 | \n \n 2 December 2024 | \n \n 2 December 2027 | \n \n \u20ac 62.65 | \n \n \u20ac 58.68 | \n
The fair value (\u20ac56.90 and \u20ac60.51) of the RSUs granted to other employees as part of the annual grant and the RSUs granted to the EB and ELT members (subject to meeting Earnings per share (1/3) and sustainability (1/3) conditions) were determined by adjusting the share price at the grant date with the present value of dividends expected to be paid during the vesting period. The fair value (\u20ac64.88 and \u20ac68.99) of RSUs granted to EB and ELT members subject to meeting a Total Shareholder Return condition (1/3) was determined using a Monte Carlo simulation model, which considers the market conditions expected to impact Arcadis\u2019 TSR performance in relation to the peer group, and the following assumptions:
| \n | \n\n 2024 | \n \n 2023 | \n
| \n Expected dividend yield (in %) | \n \n 2.2 | \n \n 2.3 | \n
| \n Risk-free interest rate (in %) | \n \n 3.17 | \n \n 3.22 | \n
| \n Expected volatility (in %) | \n \n 24.68 | \n \n 30.07 | \n
The expected volatility is calculated based on the share price movements of the 36 months prior to grant date.
The total outstanding RSUs at 31 December 2024 is as follows:
| \n Year of issue | \n \n Granted | \n \n Unconditional in | \n \n Total amount to be | \n \n Fair value at | \n \n Outstanding | \n \n Granted | \n \n De/(In)crease by | \n \n Vested | \n \n Cancelled/ | \n \n Other changes in 2024 | \n \n Outstanding | \n
| \n 2021 (3 May) | \n \n 253,371 | \n \n 2024 | \n \n 9 | \n \n \u20ac33.14 / \u20ac38.40 | \n \n 172,657 | \n \n - | \n \n (2,422) | \n \n (156,884) | \n \n (13,351) | \n \n - | \n \n - | \n
| \n 2021 (4 August) | \n \n 6,394 | \n \n 2024 | \n \n 0 | \n \n \u20ac37.86 | \n \n 6,394 | \n \n - | \n \n - | \n \n (5,930) | \n \n (464) | \n \n - | \n \n - | \n
| \n 2021 (3 November) | \n \n 1,032 | \n \n 2024 | \n \n 0 | \n \n \u20ac41.14 | \n \n 1,032 | \n \n - | \n \n - | \n \n (382) | \n \n (650) | \n \n - | \n \n - | \n
| \n 2022 (16 May) | \n \n 73,387 | \n \n 2025 | \n \n 3 | \n \n \u20ac35.29/ \u20ac35.14 | \n \n 29,200 | \n \n - | \n \n 4,258 | \n \n - | \n \n (3,705) | \n \n - | \n \n 29,753 | \n
| \n 2022 (16 May) | \n \n 196,759 | \n \n 2025 | \n \n 7 | \n \n \u20ac35.14 | \n \n 171,679 | \n \n - | \n \n - | \n \n - | \n \n (28,404) | \n \n 7 | \n \n 143,282 | \n
| \n 2022 (3 August) | \n \n 563 | \n \n 2025 | \n \n 0 | \n \n \u20ac32.02 | \n \n 563 | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n 563 | \n
| \n 2023 (5 May) | \n \n 65,395 | \n \n 2026 | \n \n 2 | \n \n \u20ac30.51/ \u20ac37.18 | \n \n 65,395 | \n \n - | \n \n - | \n \n - | \n \n (4,688) | \n \n - | \n \n 60,707 | \n
| \n 2023 (5 May) | \n \n 176,596 | \n \n 2026 | \n \n 7 | \n \n \u20ac37.18 | \n \n 171,324 | \n \n - | \n \n - | \n \n - | \n \n (30,232) | \n \n 7 | \n \n 141,099 | \n
| \n 2024 (10 May) | \n \n 121,090 | \n \n 2027 | \n \n 7 | \n \n \u20ac56.90 | \n \n - | \n \n 121,090 | \n \n - | \n \n - | \n \n (8,323) | \n \n - | \n \n 112,767 | \n
| \n 2024 (10 May) | \n \n 52,911 | \n \n 2027 | \n \n 3 | \n \n \u20ac64.88/ \u20ac56.90 | \n \n - | \n \n 52,911 | \n \n - | \n \n - | \n \n (3,099) | \n \n - | \n \n 49,812 | \n
| \n 2024 (6 November) | \n \n 3,021 | \n \n 2027 | \n \n 0 | \n \n \u20ac68.99/ \u20ac60.51 | \n \n - | \n \n 3,021 | \n \n - | \n \n - | \n \n - | \n \n - | \n \n 3,021 | \n
| \n 2024 (2 December) | \n \n 788 | \n \n 2027 | \n \n 0 | \n \n \u20ac58.68 | \n \n - | \n \n 788 | \n \n - | \n \n - | \n \n - | \n \n - | \n \n 788 | \n
| \n Total | \n \n | \n\n | \n\n | \n\n | \n\n 618,244 | \n \n 177,810 | \n \n 1,836 | \n \n (163,196) | \n \n (92,916) | \n \n 14 | \n \n 541,792 | \n
The total amount to be expensed over the vesting period is calculated by taking the granted RSUs within a calendar year multiplied by the fair value of the RSUs at grant date and the expected vesting date. This amount is expensed over the vesting period, whereby the costs recognized in a year also consider cancellations and forfeitures. The expected vesting for RSUs with a Total Shareholder Return performance condition is already taken into account in the fair value.
The expected vesting for the RSUs granted in 2022 to the Executive Board and Executive Leadership Team subject to the performance conditions \u2018Earnings per share\u2019 and \u2018Sustainability\u2019 are estimated at 31\u00a0December\u00a02024 at 128.3%.
Costs for the LTIP are spread over the vesting period and included in \u2018Salaries and wages\u2019 (see note 9). An\u00a0amount of \u20ac8 million (2023: \u20ac6 million) is included in the results of 2024 for the share-based compensation granted in the period 2021 - 2024. Prior year cost was lower due to a 15% deduction in the performance measure adjustment for vested ELT shares in 2023.\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1869m1449p": { "value": "The Company operates share-based incentive plans. The fair value of equity-settled compensations at grant date under the Arcadis long-term incentive plan is recognized as an employee expense (in Salaries and wages), with a corresponding increase in equity, over the vesting period. The amount recognized as an expense is adjusted to reflect the actual number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized as expense is based on the actual number of awards meeting these vesting conditions.
The fair value of granted shares subject to a market condition is measured using a Monte Carlo simulation model. Measurement inputs include the share price on measurement date, the expected volatility, weighted average expected life of the instrument and the risk-free interest rate.
As the fair value is amortized over the vesting period, the costs are recognized in the Income Statement. The amortization costs are adjusted for effects of cancelled and forfeited grants. The vesting and exercise of rights to acquire shares may be conditional to performance conditions and other conditions, as set by the Supervisory Board.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1871m1450p": { "value": "\n\n\n| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Other interest income1 | \n \n 8 | \n \n 5 | \n
| \n Finance income | \n \n 8 | \n \n 5 | \n
| \n Interest expense on loans and borrowings | \n \n (52) | \n \n (57) | \n
| \n Other interest expense | \n \n (5) | \n \n (1) | \n
| \n Interest expense on leases | \n \n (9) | \n \n (9) | \n
| \n Foreign exchange differences | \n \n (6) | \n \n 6 | \n
| \n Finance expense | \n \n (72) | \n \n (61) | \n
| \n Fair value change of derivatives | \n \n 11 | \n \n (9) | \n
| \n Total | \n \n (53) | \n \n (65) | \n
Arcadis utilizes notional cash pools, in which debit and credit balances both attract interest income and interest expense, respectively. The outcome is netted and presented in other interest income.
Finance expense, including the interest expense on leases, increased to \u20ac72 million (2023: \u20ac61 million). The interest expense on loans and borrowings of \u20ac52 million (2023: \u20ac57 million) are comparable to last year due to comparable average interest rates on loans partially offset by a lower average debt position. The net result from foreign exchange differences and fair value change of derivatives for the year arrived at \u20ac5 million positive (2023: \u20ac3 million negative), mainly from the positive revaluations on regular FX deals (mainly USD and GBP).
The carrying amount of the financing transaction fees taken into account in the valuation of the underlying loans and borrowings, at 31 December 2024 amounts to \u20ac5 million (2023: \u20ac7 million) on the balance sheet. The decrease in this amount mainly relates to the amortization of transaction fees related to the Eurobond financing, revolving credit financing and early repayment of debentures. The amortized cost booked in 2024 amounts to \u20ac2 million (2023: \u20ac1 million) and is booked under Other interest expense. The interest on lease liabilities of \u20ac9 million (2023: \u20ac9 million) is based on the Incremental Borrowing Rate, see note 16.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1872m1451p": { "value": "\n\n\n| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Other interest income1 | \n \n 8 | \n \n 5 | \n
| \n Finance income | \n \n 8 | \n \n 5 | \n
| \n Interest expense on loans and borrowings | \n \n (52) | \n \n (57) | \n
| \n Other interest expense | \n \n (5) | \n \n (1) | \n
| \n Interest expense on leases | \n \n (9) | \n \n (9) | \n
| \n Foreign exchange differences | \n \n (6) | \n \n 6 | \n
| \n Finance expense | \n \n (72) | \n \n (61) | \n
| \n Fair value change of derivatives | \n \n 11 | \n \n (9) | \n
| \n Total | \n \n (53) | \n \n (65) | \n
Arcadis utilizes notional cash pools, in which debit and credit balances both attract interest income and interest expense, respectively. The outcome is netted and presented in other interest income.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3484m1452p": { "value": "\n\n\nNet finance expenses comprise finance income, finance expenses and the fair value change of derivatives at fair value through profit or loss. Finance income comprises interest income on funds invested and finance expenses comprise interest expense on borrowings, and the unwinding of discount on provisions and contingent consideration.
Finance income and finance expenses are recognized in profit or loss, using the effective interest method. The fair value changes of derivatives comprise the fair value changes on financial assets at fair value through profit or loss, as far as these relate to financing items in the Company. These fair value changes are partially offset by the foreign currency gains and losses.
Foreign currency gains and losses are reported on a net basis as either finance income or finance expense if it concerns exchange rate results on financing items. Exchange rate results on operating items are included in Other operational costs (see note 9).
\n| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Other interest income1 | \n \n 8 | \n \n 5 | \n
| \n Finance income | \n \n 8 | \n \n 5 | \n
| \n Interest expense on loans and borrowings | \n \n (52) | \n \n (57) | \n
| \n Other interest expense | \n \n (5) | \n \n (1) | \n
| \n Interest expense on leases | \n \n (9) | \n \n (9) | \n
| \n Foreign exchange differences | \n \n (6) | \n \n 6 | \n
| \n Finance expense | \n \n (72) | \n \n (61) | \n
| \n Fair value change of derivatives | \n \n 11 | \n \n (9) | \n
| \n Total | \n \n (53) | \n \n (65) | \n
Arcadis utilizes notional cash pools, in which debit and credit balances both attract interest income and interest expense, respectively. The outcome is netted and presented in other interest income.
Finance expense, including the interest expense on leases, increased to \u20ac72 million (2023: \u20ac61 million). The interest expense on loans and borrowings of \u20ac52 million (2023: \u20ac57 million) are comparable to last year due to comparable average interest rates on loans partially offset by a lower average debt position. The net result from foreign exchange differences and fair value change of derivatives for the year arrived at \u20ac5 million positive (2023: \u20ac3 million negative), mainly from the positive revaluations on regular FX deals (mainly USD and GBP).
The carrying amount of the financing transaction fees taken into account in the valuation of the underlying loans and borrowings, at 31 December 2024 amounts to \u20ac5 million (2023: \u20ac7 million) on the balance sheet. The decrease in this amount mainly relates to the amortization of transaction fees related to the Eurobond financing, revolving credit financing and early repayment of debentures. The amortized cost booked in 2024 amounts to \u20ac2 million (2023: \u20ac1 million) and is booked under Other interest expense. The interest on lease liabilities of \u20ac9 million (2023: \u20ac9 million) is based on the Incremental Borrowing Rate, see note 16.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3575m1454p": { "value": "\n\nNet finance expenses comprise finance income, finance expenses and the fair value change of derivatives at fair value through profit or loss. Finance income comprises interest income on funds invested and finance expenses comprise interest expense on borrowings, and the unwinding of discount on provisions and contingent consideration.
Finance income and finance expenses are recognized in profit or loss, using the effective interest method. The fair value changes of derivatives comprise the fair value changes on financial assets at fair value through profit or loss, as far as these relate to financing items in the Company. These fair value changes are partially offset by the foreign currency gains and losses.
Foreign currency gains and losses are reported on a net basis as either finance income or finance expense if it concerns exchange rate results on financing items. Exchange rate results on operating items are included in Other operational costs (see note 9).
\nNet finance expenses comprise finance income, finance expenses and the fair value change of derivatives at fair value through profit or loss. Finance income comprises interest income on funds invested and finance expenses comprise interest expense on borrowings, and the unwinding of discount on provisions and contingent consideration.
Finance income and finance expenses are recognized in profit or loss, using the effective interest method. The fair value changes of derivatives comprise the fair value changes on financial assets at fair value through profit or loss, as far as these relate to financing items in the Company. These fair value changes are partially offset by the foreign currency gains and losses.
Foreign currency gains and losses are reported on a net basis as either finance income or finance expense if it concerns exchange rate results on financing items. Exchange rate results on operating items are included in Other operational costs (see note 9).
\nIn reference to chapter 2 Basis of preparation, the Organisation for Economic Co-operation and Development (OECD) released the Pillar Two model rules (the Global Anti-Base Erosion Proposal, or \u2018GloBE\u2019) to reform international corporate taxation.
The Arcadis group is within the scope of the OECD Pillar Two model rules. The Arcadis Group operates in multiple countries around the globe, which have enacted or planned to enact new legislation to implement the global minimum top-up tax (Pillar Two or GloBe rules).\u00a0
The Arcadis group applies the exemption for recognizing and disclosing information on deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023. Under the legislation, the group is liable to pay a top-up tax for the difference between their GloBE effective tax rate per jurisdiction and the 15% minimum rate.
The Arcadis group applied the transitional safe harbor Pillar Two rules, and based on an assessment of these rules using 2023 country-by-country data, all jurisdictions where we operate fall within the scope of the safe harbors and there is no additional Pillar Two Tax liability. For 2024 the transitional safe harbor rules are applied on data gathered from the 2024 tax accounting process and country-by-country data. Taking into account the current state of the legislation, as far substantially enacted by countries and OECD guidance, all jurisdictions where we operate fall within the scope of the safe harbor rules and therefore no additional Pillar Two Tax is recorded.\u00a0
Arcadis will closely monitor all new developments with respect to Pillar Two regulations, as we anticipate additional guidance from the OECD and the implementation of local legislation and guidance. Furthermore due to the complexities in applying the legislation and calculating GloBE income, the quantitative impact of the enacted or substantively enacted legislation can change based on these new guidance.\u00a0
Income tax recognized in profit or loss for the period:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Current tax expense | \n \n | \n\n | \n
| \n Current year | \n \n 118 | \n \n 102 | \n
| \n Adjustments for previous years | \n \n (4) | \n \n (28) | \n
| \n Total current tax expense | \n \n 114 | \n \n 74 | \n
| \n | \n\n | \n\n | \n
| \n Deferred tax expense | \n \n | \n\n | \n
| \n Origination and reversal of temporary differences | \n \n (28) | \n \n (40) | \n
| \n Adjustments for previous years | \n \n 8 | \n \n 22 | \n
| \n Changes in tax rates | \n \n (0) | \n \n (0) | \n
| \n (De)recognition of deferred tax assets | \n \n 3 | \n \n 6 | \n
| \n Total deferred tax expense | \n \n (17) | \n \n (11) | \n
| \n Total | \n \n 97 | \n \n 63 | \n
The total tax expense in 2024 is higher than 2023 due to higher taxable results. In 2023 there was a large movement between current tax expense and deferred tax expense caused by a retroactive tax law change in the US Tax Cuts and Jobs Act of 2017 ('Section 174') which eliminated the option to deduct research and development expenditures immediately in the year incurred and required taxpayers to amortize such expenditures over five years for tax purposes.\u00a0
At 31 December 2024, the corporate income tax receivable amounted to \u20ac51 million (2023: \u20ac83 million) and the corporate income tax liability amounted to \u20ac57 million (2023: \u20ac67 million). During 2024, the Group paid corporate income taxes for a total amount of \u20ac95 million (2023: \u20ac131 million).
The effective corporate income tax rate (income taxes divided by profit before income tax, excluding total result from investments is 28.7% (2023: excluding total result from investments: 28.9%).
The effective tax rate differs from the corporate income tax rate in the Netherlands, primarily due to the net negative impact of non-deductible items and statutory tax rates in jurisdictions in which we operate that are different than the Dutch statutory income tax rate and non-deductible items. The net negative impact was partially offset by changes in de-recognition of deferred tax assets, prior year adjustments and other.
| \n In % and \u20ac millions | \n \n 2024 (%) | \n \n 2024 | \n \n 2023 (%) | \n \n 2023 | \n
| \n Corporate tax rate in the Netherlands | \n \n 25.8 | \n \n 87 | \n \n 25.8 | \n \n 56 | \n
| \n Adjustment corporate income tax rates other countries | \n \n 0.9 | \n \n 3 | \n \n 2.7 | \n \n 6 | \n
| \n Weighted average corporate income tax rate | \n \n 26.7 | \n \n 90 | \n \n 28.5 | \n \n 62 | \n
| \n Non-deductible expenses/ (income) | \n \n (0.4) | \n \n (1) | \n \n 0.6 | \n \n 1 | \n
| \n (De)recognition of deferred tax assets | \n \n 1.3 | \n \n 4 | \n \n 2.8 | \n \n 6 | \n
| \n Adjustments for previous years | \n \n 0.9 | \n \n 3 | \n \n (2.8) | \n \n (6) | \n
| \n Other | \n \n 0.2 | \n \n 1 | \n \n (0.2) | \n \n (1) | \n
| \n Effective tax rate 1 | \n \n 28.7 | \n \n 97 | \n \n 28.9 | \n \n 63 | \n
The movement in deferred tax balances during the year 2024 was as follows:
| \n In \u20ac millions | \n \n Net balance at 1 January 2024 | \n \n Recognized in profit or loss | \n \n Recognized in Other comprehensive income and Equity | \n \n Other | \n \n Exchange rate differences | \n \n Net balance at 31 December 2024 | \n \n Assets | \n \n Liabilities | \n
| \n Intangible assets and goodwill | \n \n (101) | \n \n 17 | \n \n - | \n \n 31 | \n \n - | \n \n (53) | \n \n 89 | \n \n (142) | \n
| \n Property, plant and equipment | \n \n (1) | \n \n 2 | \n \n - | \n \n - | \n \n - | \n \n 1 | \n \n 5 | \n \n (4) | \n
| \n Right-of-use assets and lease liabilities | \n \n 7 | \n \n (1) | \n \n - | \n \n - | \n \n - | \n \n 6 | \n \n 94 | \n \n (88) | \n
| \n Trade and other receivable, including contract assets | \n \n 26 | \n \n (6) | \n \n - | \n \n - | \n \n (1) | \n \n 19 | \n \n 25 | \n \n (6) | \n
| \n Loans and borrowings | \n \n 4 | \n \n 4 | \n \n (4) | \n \n - | \n \n - | \n \n 4 | \n \n 8 | \n \n (4) | \n
| \n Accrued expenses | \n \n 50 | \n \n 8 | \n \n - | \n \n (39) | \n \n 1 | \n \n 20 | \n \n 36 | \n \n (16) | \n
| \n Share-based compensation | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Deferred compensation | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Net operating losses | \n \n 14 | \n \n 3 | \n \n - | \n \n - | \n \n - | \n \n 17 | \n \n 17 | \n \n - | \n
| \n Provisions | \n \n 17 | \n \n (7) | \n \n - | \n \n 1 | \n \n - | \n \n 11 | \n \n 17 | \n \n (6) | \n
| \n Others | \n \n 11 | \n \n (3) | \n \n 4 | \n \n 8 | \n \n (1) | \n \n 19 | \n \n 29 | \n \n (10) | \n
| \n Deferred tax assets/ liabilities | \n \n 27 | \n \n 17 | \n \n - | \n \n 1 | \n \n (1) | \n \n 44 | \n \n 320 | \n \n (276) | \n
| \n Offsetting | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n (213) | \n \n 213 | \n
| \n Net deferred taxes | \n \n 27 | \n \n 17 | \n \n - | \n \n 1 | \n \n (1) | \n \n 44 | \n \n 107 | \n \n (63) | \n
The movement in deferred tax balances during the year 2023 was as follows:
| \n In \u20ac millions | \n \n Net balance at 1 January 2023 | \n \n Recognized in profit or loss | \n \n Recognized in Other comprehensive income and Equity | \n \n Other | \n \n Exchange rate differences | \n \n Net balance at 31 December 2023 | \n \n Assets | \n \n Liabilities | \n
| \n Intangible assets and goodwill | \n \n (99) | \n \n 13 | \n \n (9) | \n \n (8) | \n \n 1 | \n \n (102) | \n \n 25 | \n \n (127) | \n
| \n Property, plant and equipment | \n \n (1) | \n \n (0) | \n \n - | \n \n 1 | \n \n 0 | \n \n (1) | \n \n 4 | \n \n (5) | \n
| \n Right-of-use assets and lease liabilities | \n \n 7 | \n \n 1 | \n \n - | \n \n (1) | \n \n (0) | \n \n 7 | \n \n 96 | \n \n (89) | \n
| \n Trade and other receivable, including contract assets | \n \n (1) | \n \n 4 | \n \n - | \n \n 23 | \n \n (0) | \n \n 26 | \n \n 29 | \n \n (4) | \n
| \n Loans and borrowings | \n \n - | \n \n 4 | \n \n - | \n \n - | \n \n - | \n \n 4 | \n \n 4 | \n \n - | \n
| \n Accrued expenses | \n \n 33 | \n \n (4) | \n \n - | \n \n 21 | \n \n (0) | \n \n 50 | \n \n 66 | \n \n (17) | \n
| \n Share-based compensation | \n \n 3 | \n \n - | \n \n - | \n \n (3) | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Deferred compensation | \n \n 3 | \n \n - | \n \n - | \n \n (3) | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Net operating losses | \n \n 21 | \n \n (4) | \n \n 0 | \n \n (4) | \n \n (0) | \n \n 14 | \n \n 14 | \n \n - | \n
| \n Provisions | \n \n 7 | \n \n 2 | \n \n 0 | \n \n 9 | \n \n (0) | \n \n 17 | \n \n 23 | \n \n (5) | \n
| \n Others | \n \n 45 | \n \n (5) | \n \n 8 | \n \n (35) | \n \n (2) | \n \n 11 | \n \n 20 | \n \n (8) | \n
| \n Deferred tax assets/ liabilities | \n \n 16 | \n \n 11 | \n \n 0 | \n \n 1 | \n \n (2) | \n \n 27 | \n \n 282 | \n \n (255) | \n
| \n Offsetting | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n (203) | \n \n 203 | \n
| \n Net deferred taxes | \n \n 16 | \n \n 11 | \n \n 0 | \n \n 1 | \n \n (2) | \n \n 27 | \n \n 80 | \n \n (53) | \n
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set of current tax against current tax liabilities and when the deferred tax assets and liabilities relate to the same taxation authority and the same taxable entity.
At 31 December 2024, the Gross amount of net operating losses, amounting to \u20ac63 million (2023: \u20ac54 million), for which a deferred tax asset has been recognized expires as follows:
| \n In \u20ac millions | \n \n Total net | \n \n Net operating losses not recognized | \n \n Net operating losses recognized | \n \n Deferred tax asset recognized | \n
| \n 2025 | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n 2026 | \n \n 7 | \n \n (7) | \n \n - | \n \n - | \n
| \n 2027 | \n \n 13 | \n \n (13) | \n \n - | \n \n - | \n
| \n 2028 | \n \n 8 | \n \n (6) | \n \n 2 | \n \n - | \n
| \n 2029 | \n \n 8 | \n \n (8) | \n \n - | \n \n - | \n
| \n >2029 | \n \n 4 | \n \n (4) | \n \n - | \n \n - | \n
| \n Unlimited | \n \n 136 | \n \n (75) | \n \n 61 | \n \n 17 | \n
| \n Total | \n \n 176 | \n \n (113) | \n \n 63 | \n \n 17 | \n
The majority of the above-mentioned deferred tax assets relate to tax jurisdictions in which Arcadis has suffered a tax loss in the current of a preceding period. Significant judgement is required in determining whether deferred tax assets are realizable. Arcadis determines this on the basis of expected taxable profits arising from the reversal of recognized deferred tax liabilities and on the basis of budgets, cash flow forecasts and impairment models. Where utilization is not considered probable, deferred tax assets are not recognized.
At 31 December 2024, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognized was \u20ac234 million (2023:\u00a0\u20ac231 million). No liability has been recognized in respect of these differences because the Group is in a position to control the timing of the reversal of the temporary differences, and it is probable that such differences will not reverse in the foreseeable future.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3532m1460p": { "value": "\n\nIncome taxes comprise current and deferred tax. Income tax is recognized in profit or loss, except to the extent that the tax arises from items recognized in other comprehensive income, directly in equity or from a business combination.
When the Group considers it probable that tax authorities accept a tax treatment it will be treated as such in the income tax filings. When it is not considered probable that a tax treatment is accepted, the Group uses the most likely amount or the expected value of the tax treatment
\n\n\nCurrent tax is the expected tax payable on taxable income for the year and adjustments to tax payable related to previous years. It is measured using the tax rates enacted or substantively enacted at the reporting date. The difference between income tax recognized in profit or loss and income tax paid in the cash flow statement differs primarily due to deferred tax recognized on temporary differences and payment of income tax occurring after the reporting date.
\n\n\nDeferred tax is recognized using the balance sheet method and it is not recognized for:
the initial recognition of goodwill;
the initial recognition of assets or liabilities that affect neither accounting nor taxable profit or loss; and
investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.
Measurement of deferred tax is based upon tax rates enacted or substantially enacted expected to be applied in the years in which the temporary differences are expected to reverse. Deferred taxes are not discounted.
A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future profits will be available against which they can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
\nDeferred tax is recognized using the balance sheet method and it is not recognized for:
the initial recognition of goodwill;
the initial recognition of assets or liabilities that affect neither accounting nor taxable profit or loss; and
investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.
Measurement of deferred tax is based upon tax rates enacted or substantially enacted expected to be applied in the years in which the temporary differences are expected to reverse. Deferred taxes are not discounted.
A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future profits will be available against which they can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1888m1458p": { "value": "At 31 December 2024, the corporate income tax receivable amounted to \u20ac51 million (2023: \u20ac83 million) and the corporate income tax liability amounted to \u20ac57 million (2023: \u20ac67 million). During 2024, the Group paid corporate income taxes for a total amount of \u20ac95 million (2023: \u20ac131 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f2939m2101p": { "value": "\n\n\nThe movement in deferred tax balances during the year 2024 was as follows:
| \n In \u20ac millions | \n \n Net balance at 1 January 2024 | \n \n Recognized in profit or loss | \n \n Recognized in Other comprehensive income and Equity | \n \n Other | \n \n Exchange rate differences | \n \n Net balance at 31 December 2024 | \n \n Assets | \n \n Liabilities | \n
| \n Intangible assets and goodwill | \n \n (101) | \n \n 17 | \n \n - | \n \n 31 | \n \n - | \n \n (53) | \n \n 89 | \n \n (142) | \n
| \n Property, plant and equipment | \n \n (1) | \n \n 2 | \n \n - | \n \n - | \n \n - | \n \n 1 | \n \n 5 | \n \n (4) | \n
| \n Right-of-use assets and lease liabilities | \n \n 7 | \n \n (1) | \n \n - | \n \n - | \n \n - | \n \n 6 | \n \n 94 | \n \n (88) | \n
| \n Trade and other receivable, including contract assets | \n \n 26 | \n \n (6) | \n \n - | \n \n - | \n \n (1) | \n \n 19 | \n \n 25 | \n \n (6) | \n
| \n Loans and borrowings | \n \n 4 | \n \n 4 | \n \n (4) | \n \n - | \n \n - | \n \n 4 | \n \n 8 | \n \n (4) | \n
| \n Accrued expenses | \n \n 50 | \n \n 8 | \n \n - | \n \n (39) | \n \n 1 | \n \n 20 | \n \n 36 | \n \n (16) | \n
| \n Share-based compensation | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Deferred compensation | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Net operating losses | \n \n 14 | \n \n 3 | \n \n - | \n \n - | \n \n - | \n \n 17 | \n \n 17 | \n \n - | \n
| \n Provisions | \n \n 17 | \n \n (7) | \n \n - | \n \n 1 | \n \n - | \n \n 11 | \n \n 17 | \n \n (6) | \n
| \n Others | \n \n 11 | \n \n (3) | \n \n 4 | \n \n 8 | \n \n (1) | \n \n 19 | \n \n 29 | \n \n (10) | \n
| \n Deferred tax assets/ liabilities | \n \n 27 | \n \n 17 | \n \n - | \n \n 1 | \n \n (1) | \n \n 44 | \n \n 320 | \n \n (276) | \n
| \n Offsetting | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n (213) | \n \n 213 | \n
| \n Net deferred taxes | \n \n 27 | \n \n 17 | \n \n - | \n \n 1 | \n \n (1) | \n \n 44 | \n \n 107 | \n \n (63) | \n
The movement in deferred tax balances during the year 2023 was as follows:
| \n In \u20ac millions | \n \n Net balance at 1 January 2023 | \n \n Recognized in profit or loss | \n \n Recognized in Other comprehensive income and Equity | \n \n Other | \n \n Exchange rate differences | \n \n Net balance at 31 December 2023 | \n \n Assets | \n \n Liabilities | \n
| \n Intangible assets and goodwill | \n \n (99) | \n \n 13 | \n \n (9) | \n \n (8) | \n \n 1 | \n \n (102) | \n \n 25 | \n \n (127) | \n
| \n Property, plant and equipment | \n \n (1) | \n \n (0) | \n \n - | \n \n 1 | \n \n 0 | \n \n (1) | \n \n 4 | \n \n (5) | \n
| \n Right-of-use assets and lease liabilities | \n \n 7 | \n \n 1 | \n \n - | \n \n (1) | \n \n (0) | \n \n 7 | \n \n 96 | \n \n (89) | \n
| \n Trade and other receivable, including contract assets | \n \n (1) | \n \n 4 | \n \n - | \n \n 23 | \n \n (0) | \n \n 26 | \n \n 29 | \n \n (4) | \n
| \n Loans and borrowings | \n \n - | \n \n 4 | \n \n - | \n \n - | \n \n - | \n \n 4 | \n \n 4 | \n \n - | \n
| \n Accrued expenses | \n \n 33 | \n \n (4) | \n \n - | \n \n 21 | \n \n (0) | \n \n 50 | \n \n 66 | \n \n (17) | \n
| \n Share-based compensation | \n \n 3 | \n \n - | \n \n - | \n \n (3) | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Deferred compensation | \n \n 3 | \n \n - | \n \n - | \n \n (3) | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Net operating losses | \n \n 21 | \n \n (4) | \n \n 0 | \n \n (4) | \n \n (0) | \n \n 14 | \n \n 14 | \n \n - | \n
| \n Provisions | \n \n 7 | \n \n 2 | \n \n 0 | \n \n 9 | \n \n (0) | \n \n 17 | \n \n 23 | \n \n (5) | \n
| \n Others | \n \n 45 | \n \n (5) | \n \n 8 | \n \n (35) | \n \n (2) | \n \n 11 | \n \n 20 | \n \n (8) | \n
| \n Deferred tax assets/ liabilities | \n \n 16 | \n \n 11 | \n \n 0 | \n \n 1 | \n \n (2) | \n \n 27 | \n \n 282 | \n \n (255) | \n
| \n Offsetting | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n (203) | \n \n 203 | \n
| \n Net deferred taxes | \n \n 16 | \n \n 11 | \n \n 0 | \n \n 1 | \n \n (2) | \n \n 27 | \n \n 80 | \n \n (53) | \n
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set of current tax against current tax liabilities and when the deferred tax assets and liabilities relate to the same taxation authority and the same taxable entity.
At 31 December 2024, the Gross amount of net operating losses, amounting to \u20ac63 million (2023: \u20ac54 million), for which a deferred tax asset has been recognized expires as follows:
| \n In \u20ac millions | \n \n Total net | \n \n Net operating losses not recognized | \n \n Net operating losses recognized | \n \n Deferred tax asset recognized | \n
| \n 2025 | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n 2026 | \n \n 7 | \n \n (7) | \n \n - | \n \n - | \n
| \n 2027 | \n \n 13 | \n \n (13) | \n \n - | \n \n - | \n
| \n 2028 | \n \n 8 | \n \n (6) | \n \n 2 | \n \n - | \n
| \n 2029 | \n \n 8 | \n \n (8) | \n \n - | \n \n - | \n
| \n >2029 | \n \n 4 | \n \n (4) | \n \n - | \n \n - | \n
| \n Unlimited | \n \n 136 | \n \n (75) | \n \n 61 | \n \n 17 | \n
| \n Total | \n \n 176 | \n \n (113) | \n \n 63 | \n \n 17 | \n
The majority of the above-mentioned deferred tax assets relate to tax jurisdictions in which Arcadis has suffered a tax loss in the current of a preceding period. Significant judgement is required in determining whether deferred tax assets are realizable. Arcadis determines this on the basis of expected taxable profits arising from the reversal of recognized deferred tax liabilities and on the basis of budgets, cash flow forecasts and impairment models. Where utilization is not considered probable, deferred tax assets are not recognized.
At 31 December 2024, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognized was \u20ac234 million (2023:\u00a0\u20ac231 million). No liability has been recognized in respect of these differences because the Group is in a position to control the timing of the reversal of the temporary differences, and it is probable that such differences will not reverse in the foreseeable future.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3487m1461p": { "value": "\n\n\nBasic earnings per share is calculated by dividing the profit or loss attributable to the equity holders of the Company by the weighted average number of shares outstanding during the period, excluding ordinary shares purchased by the Company and held as treasury shares (i.e. shares purchased to cover share/option plans).
Diluted earnings per share is calculated based on the basic earnings per share and using the weighted average number of shares and options outstanding during the period as far as these have a potential dilutive effect, i.e. when the exercise price of these options is lower than the share price. The average number of potentially diluted shares is based on the average share price in the period on the Euronext Amsterdam Stock Exchange and the options that were in the money.
\nFor calculating the earnings per share, the following numbers of average shares are used:
| \n Number of shares | \n \n 2024 | \n \n 2023 | \n
| \n Average number of issued shares | \n \n 90,442,091 | \n \n 90,442,091 | \n
| \n Average number of treasury shares | \n \n (415,857) | \n \n (618,845) | \n
| \n Total average number of ordinary outstanding shares | \n \n 90,026,234 | \n \n 89,823,246 | \n
| \n Average number of potentially dilutive shares | \n \n - | \n \n 13,567 | \n
| \n Total average number of diluted shares | \n \n 90,026,234 | \n \n 89,836,813 | \n
The average number of potentially dilutive shares is based on the average share price of 2024 on the Euronext Amsterdam Stock Exchange and the outstanding exercisable options that were in the money.\u00a0 The share option program expired in 2023 and there are no more share options outstanding as at 31 December 2024.
For the calculation of earnings per share, no distinction is made between the different classes of shares (see\u00a0note 25).
The total earnings of the Group and the earnings per share are as follows:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Net income | \n \n 243 | \n \n 160 | \n
| \n Net income from operations1 | \n \n 270 | \n \n 226 | \n
| \n In \u20ac | \n \n 2024 | \n \n 2023 | \n
| \n Earnings per share/Diluted earnings per share | \n \n | \n\n | \n
| \n Net income | \n \n 2.70/ 2.70 | \n \n 1.78/ 1.78 | \n
| \n Net income from operations1 | \n \n 3.00/ 3.00 | \n \n 2.51/ 2.51 | \n
Basic earnings per share is calculated by dividing the profit or loss attributable to the equity holders of the Company by the weighted average number of shares outstanding during the period, excluding ordinary shares purchased by the Company and held as treasury shares (i.e. shares purchased to cover share/option plans).
Diluted earnings per share is calculated based on the basic earnings per share and using the weighted average number of shares and options outstanding during the period as far as these have a potential dilutive effect, i.e. when the exercise price of these options is lower than the share price. The average number of potentially diluted shares is based on the average share price in the period on the Euronext Amsterdam Stock Exchange and the options that were in the money.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1897m1463p": { "value": "\n\n\n| \n In \u20ac millions | \n \n Goodwill | \n \n Other intangible assets | \n \n Software | \n \n Intangibles under development | \n \n Total | \n
| \n Cost | \n \n 1,330 | \n \n 505 | \n \n 83 | \n \n 1 | \n \n 1,919 | \n
| \n Accumulated amortization | \n \n - | \n \n (268) | \n \n (70) | \n \n - | \n \n (338) | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Balance at 1 January 2023 | \n \n 1,330 | \n \n 237 | \n \n 13 | \n \n 1 | \n \n 1,581 | \n
| \n Additions | \n \n - | \n \n - | \n \n 9 | \n \n 1 | \n \n 9 | \n
| \n Disposals | \n \n (8) | \n \n - | \n \n (0) | \n \n - | \n \n (8) | \n
| \n Amortization charges | \n \n - | \n \n (59) | \n \n (6) | \n \n - | \n \n (65) | \n
| \n Reclassifications | \n \n - | \n \n (0) | \n \n 1 | \n \n (1) | \n \n (0) | \n
| \n Exchange rate differences | \n \n (5) | \n \n (8) | \n \n 0 | \n \n - | \n \n (12) | \n
| \n Movement 2023 | \n \n (12) | \n \n (68) | \n \n 4 | \n \n (0) | \n \n (76) | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Cost | \n \n 1,318 | \n \n 426 | \n \n 64 | \n \n 1 | \n \n 1,809 | \n
| \n Accumulated amortization | \n \n - | \n \n (258) | \n \n (47) | \n \n - | \n \n (305) | \n
| \n At 31 December 2023 | \n \n 1,318 | \n \n 169 | \n \n 17 | \n \n 1 | \n \n 1,505 | \n
| \n Additions | \n \n - | \n \n - | \n \n 8 | \n \n 1 | \n \n 9 | \n
| \n Disposals | \n \n (0) | \n \n - | \n \n (0) | \n \n - | \n \n (0) | \n
| \n Amortization charges | \n \n - | \n \n (29) | \n \n (9) | \n \n - | \n \n (38) | \n
| \n Impairment charges | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Reclassifications | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Exchange rate differences | \n \n 32 | \n \n (2) | \n \n 0 | \n \n 0 | \n \n 30 | \n
| \n Movement 2024 | \n \n 32 | \n \n (31) | \n \n (1) | \n \n 1 | \n \n 1 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Cost | \n \n 1,350 | \n \n 427 | \n \n 70 | \n \n 2 | \n \n 1,849 | \n
| \n Accumulated amortization | \n \n - | \n \n (289) | \n \n (54) | \n \n - | \n \n (343) | \n
| \n At 31 December 2024 | \n \n 1,350 | \n \n 138 | \n \n 16 | \n \n 2 | \n \n 1,506 | \n
The amortization charge for Intangible assets is recognized in the following line items in the Consolidated income statement:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Amortization of Other intangible assets | \n \n 29 | \n \n 59 | \n
| \n Depreciation and amortization | \n \n 9 | \n \n 6 | \n
For annual impairment testing, goodwill is allocated to Cash-Generating Units (CGUs). The CGU is the lowest level within the Group at which Goodwill is monitored for internal management purposes.
The carrying amount of the goodwill is allocated to each of the CGUs as follows:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Places | \n \n 633 | \n \n 623 | \n
| \n Resilience | \n \n 366 | \n \n 348 | \n
| \n Mobility | \n \n 271 | \n \n 263 | \n
| \n Intelligence | \n \n 80 | \n \n 84 | \n
| \n Total Goodwill | \n \n 1,350 | \n \n 1,318 | \n
The recoverable amount of Goodwill for impairment testing purpose has been determined based on a value in use calculation, which is complex and judgmental. The calculations use cash flow projections based on historical performance, our plan for 2025 as approved by the Executive Board and projections for 2026 - 2029, after which a terminal value was calculated using an estimated growth rate.
The key assumptions used in the projections are:
(Net) revenue growth: based on experience and market analysis;
EBITDA margin development: based on historical performance, plan 2025 and management\u2019s long-term projections; and
Weighted average cost of capital (WACC): based on the market participants view on rates of return demanded for investments equivalent to those in the Company. The components of the WACC include the Cost of Equity, Cost of Debt and Cost of Lease Liabilities.
The business plans include management\u2019s estimate about the level and timing of the execution of (the improvement of) operating performance and margins.
The applied assumptions in the test of 2024 are included in the below table, for those CGUs with goodwill as at 31 December 2024.
| \n In \u20ac millions | \n \n Average annual (net) revenues growth1 | \n \n EBITDA margin2 | \n \n Pre-tax discount rate | \n \n Terminal growth rate3 | \n
| \n Places | \n \n 4.1% | \n \n 11.8- 15% | \n \n 11.0% | \n \n 1.6% | \n
| \n Resilience | \n \n 5.6% | \n \n 14.8-16.1% | \n \n 11.0% | \n \n 1.7% | \n
| \n Mobility | \n \n 7.3% | \n \n 13.7-15.4% | \n \n 10.5% | \n \n 1.6% | \n
| \n Intelligence | \n \n 17.3% | \n \n 20.4-23.5% | \n \n 9.0% | \n \n 1.6% | \n
The applied assumptions as disclosed in the 2023 financial statements was as follows:
| \n In \u20ac millions | \n \n Average annual (net) revenues growth1 | \n \n EBITDA margin2 | \n \n Pre-tax discount rate | \n \n Terminal growth rate3 | \n
| \n Places | \n \n 3.5% | \n \n 12.1-15.7% | \n \n 10.5% | \n \n 1.5% | \n
| \n Resilience | \n \n 6.5% | \n \n 13.9-16.2% | \n \n 10.5% | \n \n 1.6% | \n
| \n Mobility | \n \n 5.8% | \n \n 13.3-15.9% | \n \n 10.5% | \n \n 1.5% | \n
| \n Intelligence | \n \n 8.8% | \n \n 20.4-21.9% | \n \n 9.5% | \n \n 1.5% | \n
The weighted average pre-tax discount rate was 10.8% (2023: 10.5%) and has been determined by iterative computation so that the value in use determined using pre-tax cash flows and a pre-tax discount rate equals the value in use determined using post-tax cash flows and a post-tax discount rate. The weighted average post-tax discount rate used is 8.4% (2023: 8.0%), which includes country specific premiums when applicable.
\n\n\nThe annual impairment test at 31 December 2024 and sensitivity analysis around the key assumptions in that test have indicated sufficient headroom for all CGUs, and as such a reasonably possible change in any of the assumptions would not cause the recoverable amount to be less than the carrying value.
The expected future cash flows used in the goodwill impairment analysis are based on management\u2019s estimates. Events in our end-markets as well as the financial markets and the overall economy may have an adverse impact on the estimated future cash flows of the Group.
\n\n\nThe carrying amounts recognized in the Consolidated balance sheet for Other intangible assets are as follows:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Customer relationships | \n \n 130 | \n \n 148 | \n
| \n Trade names | \n \n - | \n \n 1 | \n
| \n Backlog | \n \n 6 | \n \n 17 | \n
| \n Other | \n \n 2 | \n \n 3 | \n
| \n Total Other intangible assets | \n \n 138 | \n \n 169 | \n
| \n In \u20ac millions | \n \n Goodwill | \n \n Other intangible assets | \n \n Software | \n \n Intangibles under development | \n \n Total | \n
| \n Cost | \n \n 1,330 | \n \n 505 | \n \n 83 | \n \n 1 | \n \n 1,919 | \n
| \n Accumulated amortization | \n \n - | \n \n (268) | \n \n (70) | \n \n - | \n \n (338) | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Balance at 1 January 2023 | \n \n 1,330 | \n \n 237 | \n \n 13 | \n \n 1 | \n \n 1,581 | \n
| \n Additions | \n \n - | \n \n - | \n \n 9 | \n \n 1 | \n \n 9 | \n
| \n Disposals | \n \n (8) | \n \n - | \n \n (0) | \n \n - | \n \n (8) | \n
| \n Amortization charges | \n \n - | \n \n (59) | \n \n (6) | \n \n - | \n \n (65) | \n
| \n Reclassifications | \n \n - | \n \n (0) | \n \n 1 | \n \n (1) | \n \n (0) | \n
| \n Exchange rate differences | \n \n (5) | \n \n (8) | \n \n 0 | \n \n - | \n \n (12) | \n
| \n Movement 2023 | \n \n (12) | \n \n (68) | \n \n 4 | \n \n (0) | \n \n (76) | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Cost | \n \n 1,318 | \n \n 426 | \n \n 64 | \n \n 1 | \n \n 1,809 | \n
| \n Accumulated amortization | \n \n - | \n \n (258) | \n \n (47) | \n \n - | \n \n (305) | \n
| \n At 31 December 2023 | \n \n 1,318 | \n \n 169 | \n \n 17 | \n \n 1 | \n \n 1,505 | \n
| \n Additions | \n \n - | \n \n - | \n \n 8 | \n \n 1 | \n \n 9 | \n
| \n Disposals | \n \n (0) | \n \n - | \n \n (0) | \n \n - | \n \n (0) | \n
| \n Amortization charges | \n \n - | \n \n (29) | \n \n (9) | \n \n - | \n \n (38) | \n
| \n Impairment charges | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Reclassifications | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Exchange rate differences | \n \n 32 | \n \n (2) | \n \n 0 | \n \n 0 | \n \n 30 | \n
| \n Movement 2024 | \n \n 32 | \n \n (31) | \n \n (1) | \n \n 1 | \n \n 1 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Cost | \n \n 1,350 | \n \n 427 | \n \n 70 | \n \n 2 | \n \n 1,849 | \n
| \n Accumulated amortization | \n \n - | \n \n (289) | \n \n (54) | \n \n - | \n \n (343) | \n
| \n At 31 December 2024 | \n \n 1,350 | \n \n 138 | \n \n 16 | \n \n 2 | \n \n 1,506 | \n
The amortization charge for Intangible assets is recognized in the following line items in the Consolidated income statement:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Amortization of Other intangible assets | \n \n 29 | \n \n 59 | \n
| \n Depreciation and amortization | \n \n 9 | \n \n 6 | \n
For annual impairment testing, goodwill is allocated to Cash-Generating Units (CGUs). The CGU is the lowest level within the Group at which Goodwill is monitored for internal management purposes.
The carrying amount of the goodwill is allocated to each of the CGUs as follows:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Places | \n \n 633 | \n \n 623 | \n
| \n Resilience | \n \n 366 | \n \n 348 | \n
| \n Mobility | \n \n 271 | \n \n 263 | \n
| \n Intelligence | \n \n 80 | \n \n 84 | \n
| \n Total Goodwill | \n \n 1,350 | \n \n 1,318 | \n
The recoverable amount of Goodwill for impairment testing purpose has been determined based on a value in use calculation, which is complex and judgmental. The calculations use cash flow projections based on historical performance, our plan for 2025 as approved by the Executive Board and projections for 2026 - 2029, after which a terminal value was calculated using an estimated growth rate.
The key assumptions used in the projections are:
(Net) revenue growth: based on experience and market analysis;
EBITDA margin development: based on historical performance, plan 2025 and management\u2019s long-term projections; and
Weighted average cost of capital (WACC): based on the market participants view on rates of return demanded for investments equivalent to those in the Company. The components of the WACC include the Cost of Equity, Cost of Debt and Cost of Lease Liabilities.
The business plans include management\u2019s estimate about the level and timing of the execution of (the improvement of) operating performance and margins.
The applied assumptions in the test of 2024 are included in the below table, for those CGUs with goodwill as at 31 December 2024.
| \n In \u20ac millions | \n \n Average annual (net) revenues growth1 | \n \n EBITDA margin2 | \n \n Pre-tax discount rate | \n \n Terminal growth rate3 | \n
| \n Places | \n \n 4.1% | \n \n 11.8- 15% | \n \n 11.0% | \n \n 1.6% | \n
| \n Resilience | \n \n 5.6% | \n \n 14.8-16.1% | \n \n 11.0% | \n \n 1.7% | \n
| \n Mobility | \n \n 7.3% | \n \n 13.7-15.4% | \n \n 10.5% | \n \n 1.6% | \n
| \n Intelligence | \n \n 17.3% | \n \n 20.4-23.5% | \n \n 9.0% | \n \n 1.6% | \n
The applied assumptions as disclosed in the 2023 financial statements was as follows:
| \n In \u20ac millions | \n \n Average annual (net) revenues growth1 | \n \n EBITDA margin2 | \n \n Pre-tax discount rate | \n \n Terminal growth rate3 | \n
| \n Places | \n \n 3.5% | \n \n 12.1-15.7% | \n \n 10.5% | \n \n 1.5% | \n
| \n Resilience | \n \n 6.5% | \n \n 13.9-16.2% | \n \n 10.5% | \n \n 1.6% | \n
| \n Mobility | \n \n 5.8% | \n \n 13.3-15.9% | \n \n 10.5% | \n \n 1.5% | \n
| \n Intelligence | \n \n 8.8% | \n \n 20.4-21.9% | \n \n 9.5% | \n \n 1.5% | \n
The weighted average pre-tax discount rate was 10.8% (2023: 10.5%) and has been determined by iterative computation so that the value in use determined using pre-tax cash flows and a pre-tax discount rate equals the value in use determined using post-tax cash flows and a post-tax discount rate. The weighted average post-tax discount rate used is 8.4% (2023: 8.0%), which includes country specific premiums when applicable.
\n\n\nThe annual impairment test at 31 December 2024 and sensitivity analysis around the key assumptions in that test have indicated sufficient headroom for all CGUs, and as such a reasonably possible change in any of the assumptions would not cause the recoverable amount to be less than the carrying value.
The expected future cash flows used in the goodwill impairment analysis are based on management\u2019s estimates. Events in our end-markets as well as the financial markets and the overall economy may have an adverse impact on the estimated future cash flows of the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1900m1466p": { "value": "\n\n\nGoodwill arises from business combinations and represents the excess of the cost of the acquisition over the Company\u2019s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquired company. Goodwill in respect of equity accounted investees is included in the carrying amount of the investment. Goodwill is measured at cost less accumulated impairment losses.
\n\n\nOther intangible assets mainly consist of customer relationships, trade names and expected profits in the backlog of acquired companies at the acquisition date. Measurement of Other intangible assets acquired in a business combination involves the use of estimates for determining the fair value at acquisition date. This mainly relates to expected profits in the backlog of the acquired companies, the customer lists at the acquisition date and the trade name value. The fair value is based on discounted cash flows expected to be received from these identifiable intangible assets. Subsequently, the assets are amortized over the estimated useful life. The amortization is recognized in profit or loss on a straight-line basis, except for the backlog which is calculated based on the expected pattern of consumption of future economic benefits embodied in the backlog. The amortization methods and useful lives, as well as residual values, are reassessed annually.
\n\n\nSoftware is measured at cost less accumulated amortization and impairment losses. Software has a finite life and is amortized on a straight-line basis over the estimated useful life. The amortization methods and useful lives, as well as residual values, are reassessed annually. Subsequent costs are recognized in the carrying amount of Software only when it increases the future economic benefits. All other expenditures are recognized in profit or loss as incurred.
Configuration and customization costs relating to cloud computing arrangements, whereby the Company does not obtain an intangible asset, are expensed when incurred. In such case, prepaid licenses are recognized as prepaid expenses (as part of Other current assets) and testing, training and data conversion costs are recognized as Personnel costs and/or Other operational costs as incurred.
\n\n\nThe estimated useful lives of Goodwill and Intangible assets varies according to their respective categories, as shown below.
| \n Category | \n \n Years | \n
| \n Goodwill | \n \n Not amortized | \n
| \n Software | \n \n 0.5 \u2013 10 | \n
| \n Other intangibles | \n \n 1 \u2013 13 | \n
| \n Intangibles under development | \n \n Not amortized (yet) | \n
Goodwill arises from business combinations and represents the excess of the cost of the acquisition over the Company\u2019s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquired company. Goodwill in respect of equity accounted investees is included in the carrying amount of the investment. Goodwill is measured at cost less accumulated impairment losses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1903m1468p": { "value": "\n\n\nOther intangible assets mainly consist of customer relationships, trade names and expected profits in the backlog of acquired companies at the acquisition date. Measurement of Other intangible assets acquired in a business combination involves the use of estimates for determining the fair value at acquisition date. This mainly relates to expected profits in the backlog of the acquired companies, the customer lists at the acquisition date and the trade name value. The fair value is based on discounted cash flows expected to be received from these identifiable intangible assets. Subsequently, the assets are amortized over the estimated useful life. The amortization is recognized in profit or loss on a straight-line basis, except for the backlog which is calculated based on the expected pattern of consumption of future economic benefits embodied in the backlog. The amortization methods and useful lives, as well as residual values, are reassessed annually.
\n\n\nSoftware is measured at cost less accumulated amortization and impairment losses. Software has a finite life and is amortized on a straight-line basis over the estimated useful life. The amortization methods and useful lives, as well as residual values, are reassessed annually. Subsequent costs are recognized in the carrying amount of Software only when it increases the future economic benefits. All other expenditures are recognized in profit or loss as incurred.
Configuration and customization costs relating to cloud computing arrangements, whereby the Company does not obtain an intangible asset, are expensed when incurred. In such case, prepaid licenses are recognized as prepaid expenses (as part of Other current assets) and testing, training and data conversion costs are recognized as Personnel costs and/or Other operational costs as incurred.
\n\n\nThe estimated useful lives of Goodwill and Intangible assets varies according to their respective categories, as shown below.
| \n Category | \n \n Years | \n
| \n Goodwill | \n \n Not amortized | \n
| \n Software | \n \n 0.5 \u2013 10 | \n
| \n Other intangibles | \n \n 1 \u2013 13 | \n
| \n Intangibles under development | \n \n Not amortized (yet) | \n
The amortization charge for Intangible assets is recognized in the following line items in the Consolidated income statement:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Amortization of Other intangible assets | \n \n 29 | \n \n 59 | \n
| \n Depreciation and amortization | \n \n 9 | \n \n 6 | \n
Depreciation is calculated using the straight-line method to allocate the cost of an asset net of its residual value, over its estimated useful life or, in the case of leasehold improvements, the shorter of the asset's useful life and the lease term. The estimated useful life of Property, plant & equipment vary according to their respective categories, as shown in the table hereafter.
| \n Category | \n \n Years | \n
| \n Land | \n \n Not depreciated | \n
| \n Buildings | \n \n Not exceeding 30 | \n
| \n Furniture and fixtures | \n \n Not exceeding 5 | \n
| \n (IT) equipment | \n \n Not exceeding 5 | \n
| \n Property, plant and equipment under development | \n \n Not depreciated (yet) | \n
Depreciation methods and useful life, as well as residual values, are reassessed annually. When parts of an item of Property, plant & equipment have different useful life, they are accounted for as separate items (major components) of Property, plant & equipment.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.
\n\n\n| \n In \u20ac millions | \n \n Note | \n \n 2024 | \n \n 2023 | \n
| \n Depreciation | \n \n | \n\n 67 | \n \n 73 | \n
| \n Interest expense | \n \n 11 | \n \n 9 | \n \n 9 | \n
| \n Other operational costs for short-term leases | \n \n 9 | \n \n 4 | \n \n 5 | \n
| \n Other operational costs for low-value leases | \n \n 9 | \n \n 3 | \n \n 4 | \n
| \n Other operational costs for loss on derecognition lease | \n \n 9 | \n \n 0 | \n \n - | \n
| \n Other income for gain on derecognition lease | \n \n 8 | \n \n 0 | \n \n (0) | \n
| \n Other income from sub-leasing | \n \n 8 | \n \n (0) | \n \n (0) | \n
| \n Total | \n \n | \n\n 83 | \n \n 91 | \n
For annual impairment testing, goodwill is allocated to Cash-Generating Units (CGUs). The CGU is the lowest level within the Group at which Goodwill is monitored for internal management purposes.
The carrying amount of the goodwill is allocated to each of the CGUs as follows:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Places | \n \n 633 | \n \n 623 | \n
| \n Resilience | \n \n 366 | \n \n 348 | \n
| \n Mobility | \n \n 271 | \n \n 263 | \n
| \n Intelligence | \n \n 80 | \n \n 84 | \n
| \n Total Goodwill | \n \n 1,350 | \n \n 1,318 | \n
The recoverable amount of Goodwill for impairment testing purpose has been determined based on a value in use calculation, which is complex and judgmental. The calculations use cash flow projections based on historical performance, our plan for 2025 as approved by the Executive Board and projections for 2026 - 2029, after which a terminal value was calculated using an estimated growth rate.
The key assumptions used in the projections are:
(Net) revenue growth: based on experience and market analysis;
EBITDA margin development: based on historical performance, plan 2025 and management\u2019s long-term projections; and
Weighted average cost of capital (WACC): based on the market participants view on rates of return demanded for investments equivalent to those in the Company. The components of the WACC include the Cost of Equity, Cost of Debt and Cost of Lease Liabilities.
The business plans include management\u2019s estimate about the level and timing of the execution of (the improvement of) operating performance and margins.
The applied assumptions in the test of 2024 are included in the below table, for those CGUs with goodwill as at 31 December 2024.
| \n In \u20ac millions | \n \n Average annual (net) revenues growth1 | \n \n EBITDA margin2 | \n \n Pre-tax discount rate | \n \n Terminal growth rate3 | \n
| \n Places | \n \n 4.1% | \n \n 11.8- 15% | \n \n 11.0% | \n \n 1.6% | \n
| \n Resilience | \n \n 5.6% | \n \n 14.8-16.1% | \n \n 11.0% | \n \n 1.7% | \n
| \n Mobility | \n \n 7.3% | \n \n 13.7-15.4% | \n \n 10.5% | \n \n 1.6% | \n
| \n Intelligence | \n \n 17.3% | \n \n 20.4-23.5% | \n \n 9.0% | \n \n 1.6% | \n
The applied assumptions as disclosed in the 2023 financial statements was as follows:
| \n In \u20ac millions | \n \n Average annual (net) revenues growth1 | \n \n EBITDA margin2 | \n \n Pre-tax discount rate | \n \n Terminal growth rate3 | \n
| \n Places | \n \n 3.5% | \n \n 12.1-15.7% | \n \n 10.5% | \n \n 1.5% | \n
| \n Resilience | \n \n 6.5% | \n \n 13.9-16.2% | \n \n 10.5% | \n \n 1.6% | \n
| \n Mobility | \n \n 5.8% | \n \n 13.3-15.9% | \n \n 10.5% | \n \n 1.5% | \n
| \n Intelligence | \n \n 8.8% | \n \n 20.4-21.9% | \n \n 9.5% | \n \n 1.5% | \n
The weighted average pre-tax discount rate was 10.8% (2023: 10.5%) and has been determined by iterative computation so that the value in use determined using pre-tax cash flows and a pre-tax discount rate equals the value in use determined using post-tax cash flows and a post-tax discount rate. The weighted average post-tax discount rate used is 8.4% (2023: 8.0%), which includes country specific premiums when applicable.
\n\n\nThe annual impairment test at 31 December 2024 and sensitivity analysis around the key assumptions in that test have indicated sufficient headroom for all CGUs, and as such a reasonably possible change in any of the assumptions would not cause the recoverable amount to be less than the carrying value.
The expected future cash flows used in the goodwill impairment analysis are based on management\u2019s estimates. Events in our end-markets as well as the financial markets and the overall economy may have an adverse impact on the estimated future cash flows of the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1911m1472p": { "value": "\n\n\nIn 2024 and 2023, no changes were made in the useful lives, depreciation methods and the residual values of Property, plant & equipment elements that materially impacted the Company. No properties were registered as security for bank loans.
| \n In \u20ac millions | \n \n Land and | \n \n Furniture | \n \n IT equipment | \n \n Property, plant and equipment under development | \n \n Total | \n
| \n Cost | \n \n 79 | \n \n 125 | \n \n 144 | \n \n 4 | \n \n 352 | \n
| \n Accumulated depreciation | \n \n (48) | \n \n (88) | \n \n (108) | \n \n - | \n \n (243) | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Balance at 1 January 2023 | \n \n 31 | \n \n 37 | \n \n 37 | \n \n 4 | \n \n 109 | \n
| \n Additions | \n \n 6 | \n \n 8 | \n \n 18 | \n \n (0) | \n \n 31 | \n
| \n Disposals | \n \n (0) | \n \n (1) | \n \n (0) | \n \n (0) | \n \n (1) | \n
| \n Reclassifications | \n \n 2 | \n \n (4) | \n \n 0 | \n \n 1 | \n \n 0 | \n
| \n Depreciation charges | \n \n (6) | \n \n (11) | \n \n (19) | \n \n - | \n \n (36) | \n
| \n Exchange rate differences | \n \n (1) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (1) | \n
| \n Movement 2023 | \n \n 2 | \n \n (8) | \n \n (1) | \n \n 1 | \n \n (7) | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Cost | \n \n 72 | \n \n 81 | \n \n 129 | \n \n 5 | \n \n 287 | \n
| \n Accumulated depreciation | \n \n (39) | \n \n (53) | \n \n (93) | \n \n - | \n \n (185) | \n
| \n At 31 December 2023 | \n \n 33 | \n \n 28 | \n \n 36 | \n \n 5 | \n \n 102 | \n
| \n Additions | \n \n 12 | \n \n 9 | \n \n 16 | \n \n (2) | \n \n 35 | \n
| \n Acquisitions/ divestments | \n \n (1) | \n \n (0) | \n \n (0) | \n \n - | \n \n (1) | \n
| \n Disposals | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n - | \n
| \n Depreciation charges | \n \n (8) | \n \n (9) | \n \n (18) | \n \n - | \n \n (35) | \n
| \n Exchange rate differences | \n \n 1 | \n \n 1 | \n \n 0 | \n \n 0 | \n \n 2 | \n
| \n Movement 2024 | \n \n 4 | \n \n 1 | \n \n (2) | \n \n (2) | \n \n 1 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Cost | \n \n 74 | \n \n 82 | \n \n 130 | \n \n 3 | \n \n 289 | \n
| \n Accumulated depreciation | \n \n (37) | \n \n (53) | \n \n (96) | \n \n - | \n \n (186) | \n
| \n At 31 December 2024 | \n \n 37 | \n \n 29 | \n \n 34 | \n \n 3 | \n \n 103 | \n
Property, plant & equipment is measured at cost less accumulated depreciation and impairment losses. Costs include expenditures that are directly attributable to the acquisition of the assets.
Subsequent costs are recognized in the carrying amount of Property, plant & equipment if it is probable that future economic benefits will be obtained. The costs of day-to-day servicing of property, plant & equipment are expensed as incurred.
Depreciation is calculated using the straight-line method to allocate the cost of an asset net of its residual value, over its estimated useful life or, in the case of leasehold improvements, the shorter of the asset's useful life and the lease term. The estimated useful life of Property, plant & equipment vary according to their respective categories, as shown in the table hereafter.
| \n Category | \n \n Years | \n
| \n Land | \n \n Not depreciated | \n
| \n Buildings | \n \n Not exceeding 30 | \n
| \n Furniture and fixtures | \n \n Not exceeding 5 | \n
| \n (IT) equipment | \n \n Not exceeding 5 | \n
| \n Property, plant and equipment under development | \n \n Not depreciated (yet) | \n
Depreciation methods and useful life, as well as residual values, are reassessed annually. When parts of an item of Property, plant & equipment have different useful life, they are accounted for as separate items (major components) of Property, plant & equipment.
Gains on the sale of an item of Property, plant & equipment are determined by comparing the proceeds from disposal with the carrying amount of Property, plant & equipment and are recognized within Other income in the Consolidated income statement. Losses on the sale of an item of Property, plant & equipment are recognized within Other operational costs in the Consolidated income statement.
The determination of impairment of Property, plant & equipment involves the use of estimates. The recoverable amount is determined by discounting the estimated future cash flows to present value using a discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset. The identification of impairment indicators, as well as the estimation of future cash flows, discount rates and the determination of the fair value for the assets requires management to make significant judgements
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1913m1473p": { "value": "Depreciation is calculated using the straight-line method to allocate the cost of an asset net of its residual value, over its estimated useful life or, in the case of leasehold improvements, the shorter of the asset's useful life and the lease term. The estimated useful life of Property, plant & equipment vary according to their respective categories, as shown in the table hereafter.
| \n Category | \n \n Years | \n
| \n Land | \n \n Not depreciated | \n
| \n Buildings | \n \n Not exceeding 30 | \n
| \n Furniture and fixtures | \n \n Not exceeding 5 | \n
| \n (IT) equipment | \n \n Not exceeding 5 | \n
| \n Property, plant and equipment under development | \n \n Not depreciated (yet) | \n
Depreciation methods and useful life, as well as residual values, are reassessed annually. When parts of an item of Property, plant & equipment have different useful life, they are accounted for as separate items (major components) of Property, plant & equipment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1915m1474p": { "value": "\n\n\nThis note provides information for leases where the Group is a lessee.
\n\n\nThe Group\u2019s lease portfolio consists of 2,801 active lease contracts at 31 December 2024 (2023: 2,790), mainly related to real-estate and vehicles lease contracts. Approximately 88% of the value of the right-of-use asset is from land and buildings.
\n\n\nLease terms are generally negotiated locally, with support from the Global Workplace director and/or regional real estate or procurement teams where needed. Contracts are negotiated on an individual basis and contain a wide range of terms and conditions, such as early termination clauses and renewal rights. They may contain both lease and non-lease components, whereby the Group has elected not to include the service element in leases (e.g. fuel, insurance) in the right-of-use asset and lease liability.
Termination clauses and renewal rights are included in several real estate leases across the Group. These are used to maximize operational flexibility in terms of managing the assets used in the Group\u2019s operations. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise a renewal right, or not exercise a termination clause. Both extension and termination options are however only included in the lease term if it is reasonably certain that a lease will be extended or terminated.
Factors that are considered in terminating or renewing leases include amongst others:
Significant penalties involved;
Leasehold improvements made with a significant remaining value; and
Costs and business disruption required to replace a leased asset.
An amount of \u20ac22 million (2023: \u20ac17 million) extension and/or renewal options are included in the Group\u2019s lease liability at 31 December 2024 reflecting that the Group could not replace leased assets without significant cost or business disruption.
As at 31 December 2024, potential future cash outflows of \u20ac136 million (undiscounted) (2023: \u20ac152 million) have not been included in the lease liability because it is not reasonably certain that the leases will be extended (or not terminated). During 2024, the financial impact of the reassessment of reasonable certainty led to a decrease in recognized lease liabilities and right-of-use assets of \u20ac1 million (2023: \u20ac3 million).
If the leased asset is abandoned, the depreciation of the Right-of-use asset needs adjustment as of the date the lessee makes the decision to abandon the asset, so that as of the cease use date, the carrying amount of the Right-of-use asset is zero. Assuming there are no changes in the lease payments, the lease liability will remain the same.
There were no leases abandoned during the year. Right-of-use assets with a carrying value of \u20ac3 million were abandoned in 2023. The abandoned property was subleased in 2024, hence, remaining lease liabilities for the abandoned leases amount to nil (2023: \u20ac3 million).
The Group does not have leases with variable lease payments and does not provide residual value guarantees.
\n\n\nThe undiscounted value of the lease obligations as at 31 December 2024 amounts to \u20ac297 million (2023: \u20ac316 million) and the maturity is as shown in the table below.
| \n Maturity (In \u20ac millions) | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n 0 - 1 Year | \n \n | \n\n 72 | \n \n 73 | \n
| \n 1 - 2 Year | \n \n | \n\n 58 | \n \n 58 | \n
| \n 2 - 3 Year | \n \n | \n\n 49 | \n \n 47 | \n
| \n 3 - 4 Year | \n \n | \n\n 37 | \n \n 40 | \n
| \n 4 - 5 Year | \n \n | \n\n 26 | \n \n 30 | \n
| \n > 5 Year | \n \n | \n\n 55 | \n \n 68 | \n
| \n Total | \n \n | \n\n 297 | \n \n 316 | \n
The undiscounted maturity of all sub-leasing contracts at 31 December 2024 amounts to \u20ac2 million (2023: \u20ac0.2 million) and is not material for the Group.
\n\n\nThe following right-of-use assets are recognized in the balance sheet:
| \n In \u20ac millions | \n \n Leased land | \n \n Leased furnitures | \n \n Leased (IT) equipment | \n \n Leased | \n \n Total | \n
| \n Balance at 1 January 2023 | \n \n 261 | \n \n 1 | \n \n 1 | \n \n 21 | \n \n 284 | \n
| \n Additions | \n \n 22 | \n \n 0 | \n \n 1 | \n \n 17 | \n \n 40 | \n
| \n Remeasurements | \n \n (1) | \n \n 0 | \n \n (0) | \n \n 1 | \n \n - | \n
| \n Depreciation charges | \n \n (58) | \n \n (1) | \n \n (1) | \n \n (13) | \n \n (73) | \n
| \n Derecognitions | \n \n (0) | \n \n 0 | \n \n (0) | \n \n (0) | \n \n - | \n
| \n Exchange rate differences | \n \n (2) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (2) | \n
| \n Movement 2023 | \n \n (39) | \n \n (1) | \n \n 0 | \n \n 5 | \n \n (35) | \n
| \n At 31 December 2023 | \n \n 222 | \n \n 0 | \n \n 1 | \n \n 26 | \n \n 249 | \n
| \n Additions | \n \n 30 | \n \n 0 | \n \n 0 | \n \n 14 | \n \n 44 | \n
| \n Remeasurements | \n \n (1) | \n \n 0 | \n \n (0) | \n \n 0 | \n \n (1) | \n
| \n Depreciation charges | \n \n (53) | \n \n (0) | \n \n (1) | \n \n (13) | \n \n (67) | \n
| \n Derecognitions | \n \n (2) | \n \n - | \n \n (0) | \n \n - | \n \n (2) | \n
| \n Exchange rate differences | \n \n 4 | \n \n 0 | \n \n 1 | \n \n 0 | \n \n 5 | \n
| \n Movement 2024 | \n \n (22) | \n \n 0 | \n \n 0 | \n \n 1 | \n \n (21) | \n
| \n At 31 December 2024 | \n \n 200 | \n \n 0 | \n \n 1 | \n \n 27 | \n \n 228 | \n
The following lease liabilities are recognized in the balance sheet:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n | \n\n 281 | \n \n 315 | \n
| \n Additions | \n \n | \n\n 44 | \n \n 39 | \n
| \n Remeasurements | \n \n | \n\n (1) | \n \n - | \n
| \n Payments | \n \n | \n\n (78) | \n \n (79) | \n
| \n Interest | \n \n | \n\n 9 | \n \n 9 | \n
| \n Exchange rate differences | \n \n | \n\n 7 | \n \n (3) | \n
| \n Balance at 31 December | \n \n | \n\n 262 | \n \n 281 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n Non-current | \n \n | \n\n 192 | \n \n 211 | \n
| \n Current | \n \n | \n\n 70 | \n \n 70 | \n
| \n Total | \n \n | \n\n 262 | \n \n 281 | \n
Right-of-use assets and lease liabilities decreased mainly due to lease terminations in several office spaces in the US, in line with the Group\u2019s plan to fully maximize the utilization of leases among numerous subsidiaries in the region. Renewals of larger offices during the year were also downsized.\u00a0
\n\n\n| \n In \u20ac millions | \n \n Note | \n \n 2024 | \n \n 2023 | \n
| \n Depreciation | \n \n | \n\n 67 | \n \n 73 | \n
| \n Interest expense | \n \n 11 | \n \n 9 | \n \n 9 | \n
| \n Other operational costs for short-term leases | \n \n 9 | \n \n 4 | \n \n 5 | \n
| \n Other operational costs for low-value leases | \n \n 9 | \n \n 3 | \n \n 4 | \n
| \n Other operational costs for loss on derecognition lease | \n \n 9 | \n \n 0 | \n \n - | \n
| \n Other income for gain on derecognition lease | \n \n 8 | \n \n 0 | \n \n (0) | \n
| \n Other income from sub-leasing | \n \n 8 | \n \n (0) | \n \n (0) | \n
| \n Total | \n \n | \n\n 83 | \n \n 91 | \n
A contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control is conveyed when the Group has both the right to direct the identified asset\u2019s use and to obtain substantially all the economic benefits from that use.
Contracts may contain both lease and non-lease components. The Group allocates the consideration to these components based on its relative stand-alone prices. Non-lease components are not included in the right-of-use asset and lease liability but accounted for separately.
\n\n\nAt commencement of a lease, the Group measures right-of-use assets initially at cost, and subsequently at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability.
The cost of the right-of-use assets comprise the following:
Amount of the initial measurement of the lease liability;
Any lease payments made at or before the commencement date less any lease incentives received at or after the commencement date;
Any initial direct costs; and
Restoration costs i.e estimate of the costs to be incurred for dismantling, removal and/ or restoration to the conditions required by the terms of the lease.
See note 28 for the accounting policy on provisions for right-of-use assets (restoration provisions).
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.
\n\n\nLease liabilities are initially measured at the present value of the future lease payments that are not paid at the commencement date discounted using an implicit rate of interest, unless this cannot readily be determined, in which case an incremental borrowing rate is used. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate or the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.
Judgment is applied to determine the lease term for some lease contracts in which it is a lessee that include renewal and termination options. The assessment of whether the Group is reasonably certain to exercise such option impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognized. At reporting date all facts and circumstances are considered that create an economic incentive in determining whether it is reasonably certain that an extension or termination option will be recognized. Changes in the estimate are recognized prospectively.
\n\n\nThe Incremental Borrowing Rate (IBR) is determined based on a build-up approach, whereby each category of leases has an IBR based on the country (and currency) of the lessee and the lease term.
\n\n\nLease incentives are deducted from the right of use assets if received before the commencement date of the lease; they are deducted from the lease liability if received at or after the commencement date of the lease.
Amounts received for leasehold improvements are depreciated over a period not longer than the lease term.
\n\n\nPayments associated with short-term and/or low value leases are recognized on a straight-line basis as an expense in profit or loss.
\n\n\nThe Group sub-leases some of its buildings, although not significant. The head leases are presented in the right-of-use assets and the sub-lease contracts are treated as operating leases under IFRS 16. Income from sub-leases is presented in Other income, see note 8.
\n\n\nRent concessions are accounted for as lease modifications by the Group.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1921m1476p": { "value": "\n\n\nThe nature of business of the Group\u2019s associates and joint ventures are similar. They provide comprehensive knowledge-based consultancy, design, engineering and management services in the area of infrastructure, water, environment and buildings. The most significant investments in associates and joint ventures are listed below.
| \n Name of entity | \n \n Place of business/ country of incorporation | \n \n Associate/ joint venture | \n \n % of ownership interest 2024 | \n \n % of ownership interest 2023 | \n
| \n Geodynamique et Structure S.A. | \n \n France | \n \n Associate | \n \n 48.68% | \n \n 48.68% | \n
| \n Asset Rail B.V. | \n \n Netherlands | \n \n Associate | \n \n 40.00% | \n \n 40.00% | \n
| \n CARE/RTKL Ltd | \n \n Saudi Arabia | \n \n Joint venture | \n \n 45.00% | \n \n 45.00% | \n
| \n CTR, a Joint Venture of CH2MHill, Inc., Teng & Associates, Inc. and The Rise Group, LLC | \n \n United States | \n \n Joint venture | \n \n 33.30% | \n \n 33.30% | \n
The movement in associates and joint ventures in the Consolidated balance sheet is as follows:
| \n | \n\n Associates | \n \n Associates | \n \n Joint ventures | \n \n Joint ventures | \n \n Total | \n \n Total | \n
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n 10 | \n \n 10 | \n \n 2 | \n \n 2 | \n \n 11 | \n \n 12 | \n
| \n Share in result by Arcadis | \n \n 2 | \n \n 4 | \n \n 0 | \n \n (0) | \n \n 3 | \n \n 4 | \n
| \n Investments | \n \n - | \n \n 0 | \n \n 0 | \n \n 0 | \n \n 0 | \n \n 0 | \n
| \n Received dividends | \n \n (3) | \n \n (4) | \n \n - | \n \n (0) | \n \n (3) | \n \n (4) | \n
| \n Exchange rate differences | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n
| \n Balance at 31 December | \n \n 9 | \n \n 10 | \n \n 2 | \n \n 2 | \n \n 11 | \n \n 11 | \n
There are no loans to associates or joint ventures outstanding as at 31 December 2024 (2023: nil).
The joint ventures have share capital consisting solely of ordinary shares, which are held indirectly by the Group, and are non-listed shares. As such there is no available quoted market price for the shares. The Group has no contingent liabilities relating to interests in joint ventures at 31 December 2024 (2023: nil).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1923m1478p": { "value": "\n\n\nInvestments in joint arrangements are classified as either joint ventures or joint operations. The classification depends on the contractual rights and obligations, rather than the legal structure of the joint arrangement.
Joint ventures are joint arrangements in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. Joint ventures are accounted for using the equity method, where interests in joint ventures are initially recognized at cost, including transaction cost. Subsequently the Group\u2019s share of the profit or loss and movements in other comprehensive income are included in the Consolidated financial statements, whereby the calculation is based on the Group\u2019s accounting policies. When the Group\u2019s share of losses in a joint venture equals or exceeds its interest in a joint venture, the Group does not recognize further losses.
Joint operations are joint arrangements whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operations are accounted for the Group\u2019s direct rights to the assets, liabilities, revenues and expenses of the joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These are combined on a line-by-line basis with corresponding items in the Group\u2019s financial statements.
\n\n\nAssociates are those entities in which the Group has significant influence, but no control over financial and operating policies. Significant influence is presumed to exist when the Group holds more than 20% of the voting power of the entity. Associates are accounted for using the equity method from the date that significant influence commences until the date that significant influence ceases. Initially, investments in associates are recognized at cost, including transaction cost. Goodwill identified on the acquisition of the associate is included in the carrying amount of the investment.
The Consolidated financial statements include the Group\u2019s share of the net profit or loss and other comprehensive income of the associates, after adjustments to align the accounting policies with those of the Group. The application of the equity method is applied to loans that form part of a Net investment. Loans to associates are carried at amortized cost less any expected credit losses. The Group applies the Expected Credit Loss model to loans that form part of the Net investment, before recognizing its share of losses from application of the equity method on these loans.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1922m1477p": { "value": "\n\n\nInvestments in joint arrangements are classified as either joint ventures or joint operations. The classification depends on the contractual rights and obligations, rather than the legal structure of the joint arrangement.
Joint ventures are joint arrangements in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. Joint ventures are accounted for using the equity method, where interests in joint ventures are initially recognized at cost, including transaction cost. Subsequently the Group\u2019s share of the profit or loss and movements in other comprehensive income are included in the Consolidated financial statements, whereby the calculation is based on the Group\u2019s accounting policies. When the Group\u2019s share of losses in a joint venture equals or exceeds its interest in a joint venture, the Group does not recognize further losses.
Joint operations are joint arrangements whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint operations are accounted for the Group\u2019s direct rights to the assets, liabilities, revenues and expenses of the joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These are combined on a line-by-line basis with corresponding items in the Group\u2019s financial statements.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1925m1479p": { "value": "\n\n\nAssociates are those entities in which the Group has significant influence, but no control over financial and operating policies. Significant influence is presumed to exist when the Group holds more than 20% of the voting power of the entity. Associates are accounted for using the equity method from the date that significant influence commences until the date that significant influence ceases. Initially, investments in associates are recognized at cost, including transaction cost. Goodwill identified on the acquisition of the associate is included in the carrying amount of the investment.
The Consolidated financial statements include the Group\u2019s share of the net profit or loss and other comprehensive income of the associates, after adjustments to align the accounting policies with those of the Group. The application of the equity method is applied to loans that form part of a Net investment. Loans to associates are carried at amortized cost less any expected credit losses. The Group applies the Expected Credit Loss model to loans that form part of the Net investment, before recognizing its share of losses from application of the equity method on these loans.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1926m1480p": { "value": "\n\n\nThe nature of business of the Group\u2019s associates and joint ventures are similar. They provide comprehensive knowledge-based consultancy, design, engineering and management services in the area of infrastructure, water, environment and buildings. The most significant investments in associates and joint ventures are listed below.
| \n Name of entity | \n \n Place of business/ country of incorporation | \n \n Associate/ joint venture | \n \n % of ownership interest 2024 | \n \n % of ownership interest 2023 | \n
| \n Geodynamique et Structure S.A. | \n \n France | \n \n Associate | \n \n 48.68% | \n \n 48.68% | \n
| \n Asset Rail B.V. | \n \n Netherlands | \n \n Associate | \n \n 40.00% | \n \n 40.00% | \n
| \n CARE/RTKL Ltd | \n \n Saudi Arabia | \n \n Joint venture | \n \n 45.00% | \n \n 45.00% | \n
| \n CTR, a Joint Venture of CH2MHill, Inc., Teng & Associates, Inc. and The Rise Group, LLC | \n \n United States | \n \n Joint venture | \n \n 33.30% | \n \n 33.30% | \n
The movement in associates and joint ventures in the Consolidated balance sheet is as follows:
| \n | \n\n Associates | \n \n Associates | \n \n Joint ventures | \n \n Joint ventures | \n \n Total | \n \n Total | \n
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n 10 | \n \n 10 | \n \n 2 | \n \n 2 | \n \n 11 | \n \n 12 | \n
| \n Share in result by Arcadis | \n \n 2 | \n \n 4 | \n \n 0 | \n \n (0) | \n \n 3 | \n \n 4 | \n
| \n Investments | \n \n - | \n \n 0 | \n \n 0 | \n \n 0 | \n \n 0 | \n \n 0 | \n
| \n Received dividends | \n \n (3) | \n \n (4) | \n \n - | \n \n (0) | \n \n (3) | \n \n (4) | \n
| \n Exchange rate differences | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n
| \n Balance at 31 December | \n \n 9 | \n \n 10 | \n \n 2 | \n \n 2 | \n \n 11 | \n \n 11 | \n
There are no loans to associates or joint ventures outstanding as at 31 December 2024 (2023: nil).
The joint ventures have share capital consisting solely of ordinary shares, which are held indirectly by the Group, and are non-listed shares. As such there is no available quoted market price for the shares. The Group has no contingent liabilities relating to interests in joint ventures at 31 December 2024 (2023: nil).
", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1930m1482p": { "value": "\n\n\nThe nature of business of the Group\u2019s associates and joint ventures are similar. They provide comprehensive knowledge-based consultancy, design, engineering and management services in the area of infrastructure, water, environment and buildings. The most significant investments in associates and joint ventures are listed below.
| \n Name of entity | \n \n Place of business/ country of incorporation | \n \n Associate/ joint venture | \n \n % of ownership interest 2024 | \n \n % of ownership interest 2023 | \n
| \n Geodynamique et Structure S.A. | \n \n France | \n \n Associate | \n \n 48.68% | \n \n 48.68% | \n
| \n Asset Rail B.V. | \n \n Netherlands | \n \n Associate | \n \n 40.00% | \n \n 40.00% | \n
| \n CARE/RTKL Ltd | \n \n Saudi Arabia | \n \n Joint venture | \n \n 45.00% | \n \n 45.00% | \n
| \n CTR, a Joint Venture of CH2MHill, Inc., Teng & Associates, Inc. and The Rise Group, LLC | \n \n United States | \n \n Joint venture | \n \n 33.30% | \n \n 33.30% | \n
The movement in associates and joint ventures in the Consolidated balance sheet is as follows:
| \n | \n\n Associates | \n \n Associates | \n \n Joint ventures | \n \n Joint ventures | \n \n Total | \n \n Total | \n
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n 10 | \n \n 10 | \n \n 2 | \n \n 2 | \n \n 11 | \n \n 12 | \n
| \n Share in result by Arcadis | \n \n 2 | \n \n 4 | \n \n 0 | \n \n (0) | \n \n 3 | \n \n 4 | \n
| \n Investments | \n \n - | \n \n 0 | \n \n 0 | \n \n 0 | \n \n 0 | \n \n 0 | \n
| \n Received dividends | \n \n (3) | \n \n (4) | \n \n - | \n \n (0) | \n \n (3) | \n \n (4) | \n
| \n Exchange rate differences | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n
| \n Balance at 31 December | \n \n 9 | \n \n 10 | \n \n 2 | \n \n 2 | \n \n 11 | \n \n 11 | \n
There are no loans to associates or joint ventures outstanding as at 31 December 2024 (2023: nil).
The joint ventures have share capital consisting solely of ordinary shares, which are held indirectly by the Group, and are non-listed shares. As such there is no available quoted market price for the shares. The Group has no contingent liabilities relating to interests in joint ventures at 31 December 2024 (2023: nil).
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1933m1483p": { "value": "\n\n\nOther investments relate to interests in companies over which the Group has no significant influence nor control. Other investments are accounted for at fair value through profit or loss.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3441m1484p": { "value": "\n\nOther investments relate to interests in companies over which the Group has no significant influence nor control. Other investments are accounted for at fair value through profit or loss.
\nThe fair value of derivatives held by the Group as at the balance sheet date is presented in the table below:
| \n | \n\n Assets | \n \n Liabilities | \n \n Total | \n |||
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n
| \n Interest rate derivatives: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Current | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Non-current | \n \n - | \n \n - | \n \n 1 | \n \n 2 | \n \n (1) | \n \n (2) | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Foreign exchange derivatives: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Current | \n \n 10 | \n \n 8 | \n \n 8 | \n \n 9 | \n \n 2 | \n \n (1) | \n
| \n Non-current | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Total | \n \n 10 | \n \n 8 | \n \n 9 | \n \n 11 | \n \n 1 | \n \n (3) | \n
See note 31 for the Group Treasury policy and the valuation techniques used for the derivatives. Group Treasury is consulted by entities for alignment of hedge accounting with the Group Treasury policy guidelines and assisted with documentation of the hedge relationship, derivatives valuations and effectiveness testing.
As per 31 December 2024, the Group has \u20ac185 million (notional amount) of floating-to-fixed interest rate swaps to manage the interest rate risk on the \u20ac185 million Schuldschein loans issued in July 2023. The market value of these derivatives at 31 December 2024 was \u20ac1 million negative (2023: \u20ac2 million negative) and hedge accounting is applied on these derivatives. Of these interest rate swaps, \u20ac100 million will mature in January 2025 and \u20ac85 million will mature in January 2026.
\n\n\n| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Cross currency interest rate swaps | \n \n | \n\n | \n\n | \n
| \n Notional amount | \n \n | \n\n - | \n \n - | \n
| \n Maturity date | \n \n | \n\n - | \n \n n/a | \n
| \n Hedge ratio | \n \n | \n\n - | \n \n - | \n
| \n Change in fair value of outstanding | \n \n | \n\n - | \n \n - | \n
| \n Change in value of hedged item | \n \n | \n\n - | \n \n - | \n
| \n Ineffectiveness | \n \n | \n\n - | \n \n - | \n
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Interest rate swaps maturing in 2025 | \n \n | \n\n | \n\n | \n
| \n Notional amount | \n \n | \n\n 100 | \n \n 100 | \n
| \n Maturity date | \n \n | \n\n 2025 | \n \n 2025 | \n
| \n Hedge ratio | \n \n | \n\n 1:1 | \n \n 1:1 | \n
| \n Change in fair value of outstanding | \n \n | \n\n (0.1) | \n \n (0.5) | \n
| \n Change in value of hedged item | \n \n | \n\n 0.1 | \n \n 0.5 | \n
| \n Ineffectiveness | \n \n | \n\n 0 | \n \n (0.0) | \n
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Interest rate swaps maturing in 2026 | \n \n | \n\n | \n\n | \n
| \n Notional amount | \n \n | \n\n 85 | \n \n 85 | \n
| \n Maturity date | \n \n | \n\n 2026 | \n \n 2026 | \n
| \n Hedge ratio | \n \n | \n\n 1:1 | \n \n 1:1 | \n
| \n Change in fair value of outstanding | \n \n | \n\n (1.1) | \n \n (1.4) | \n
| \n Change in value of hedged item | \n \n | \n\n 1.1 | \n \n 1.3 | \n
| \n Ineffectiveness | \n \n | \n\n 0.0 | \n \n (0.1) | \n
During 2024, the Group hedged currency exposures related to transactions in currencies other than the functional currency for subsidiaries by way of foreign exchange forward rate contracts in order to minimize volatility in the operating income of these subsidiaries due to changes in foreign exchange rates. In addition, foreign currency corporate balance sheet positions arising due to foreign currency receivables, payables and loan balances were hedged by way of foreign exchange forward rate contracts and foreign exchange swaps.
The movements in fair value of all derivatives are shown in the table below:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n (3) | \n \n (6) | \n |
| \n Changes in income statement | \n \n 12 | \n \n (7) | \n |
| \n Changes through Other comprehensive income | \n \n 1 | \n \n (2) | \n |
| \n Cash settlement derivatives | \n \n (9) | \n \n 12 | \n |
| \n Exchange rate differences | \n \n - | \n \n (0) | \n |
| \n Balance at 31 December | \n \n | \n\n 1 | \n \n (3) | \n
The change in fair value of derivatives recognized in profit or loss is \u20ac12 million positive (2023: \u20ac10 million negative), together with foreign exchange results of \u20ac10 million negative (2023: \u20ac4 million positive) also flowing through profit or loss. Hence, the overall profit or loss effect of foreign exchange contracts and derivatives amounts to \u20ac3 million positive (2023: \u20ac6 million negative).
\n\n\nThe total (after-tax) amount included in Other comprehensive income, on the line hedging reserve within equity, can be specified as follows:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Interest rate derivatives | \n \n (1) | \n \n (1) | \n |
| \n Foreign exchange derivatives | \n \n 0 | \n \n 0 | \n |
| \n Cost of hedging reserve | \n \n - | \n \n - | \n |
| \n Total | \n \n | \n\n (1) | \n \n (1) | \n
The Group uses derivatives in order to hedge the exposure to foreign exchange risks and interest rate risks arising from operational, financing and investment activities. Derivatives to be used for hedging purposes can include forward foreign exchange rate contracts, foreign exchange swaps and interest rate swaps and a combination of those, such as cross-currency interest rate swaps. The Group does not hold or issue derivatives for trading purposes. To the extent possible Hedge accounting is applied for cash flow hedges related to forecasted transactions and fair value hedges.
\n\n\nAll derivative financial instruments are initially recognized at fair value. Attributable transaction costs are recognized in profit or loss when incurred. Subsequently, derivatives are measured at fair value derived from market prices of the instruments or valuation techniques, with the fair value changes recognized in profit or loss, unless hedge accounting is applied. A gain or loss on remeasurement to the fair value of the interest rate derivatives is recognized in profit or loss under fair value change of derivatives. The fair value changes of forward foreign exchange contracts are recognized in operating income. The carrying values of the derivatives are recognized in the balance sheet as derivatives, which can be classified as current or non-current assets or liabilities, depending on the maturity of the contracts.
\n\n\nFor a cash flow hedge of a forecasted transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported profit or loss. In specific cases hedge accounting is applied for cash flow hedges. In that case, the effective part of the fair value change of those derivatives is deferred in Other comprehensive income and presented in the hedging reserve in Equity. The hedging reserve includes the cash flow hedge reserve and the costs of hedging. Changes in the fair value of the currency basis since the inception of the hedging relationship will be deferred into a separate component of Other comprehensive income.
The amount recognized in Other comprehensive income as cash flow hedge reserve is released to the related lines in profit or loss at the same time as the hedged cash flows affect profit or loss. Any ineffective portion of change in the fair value of the derivatives is included in profit or loss immediately.
At inception of the hedge, the relationship between the hedging instrument and the hedged item is documented \u2013 including the risk management objectives, strategy of undertaking the hedge transaction, the hedged risk \u2013 and, in case of hedge accounting, the methods that will be used to assess the effectiveness of the hedge. Both at the inception of the hedge and at each reporting date, the Group makes an assessment whether the derivatives used are highly effective in offsetting changes in fair values of the cash flows of the hedged items.
The economic relationship between the hedging instrument and the hedged item is, amongst others, determined based upon matching notional amounts, a minimal fair value of the hedging instrument at inception, matching the underlying hedged risk (interest benchmark rate or currency pair), matching repricing and payment dates and an assessment of the likelihood of default of the hedging counterparty. Sources of ineffectiveness can, amongst others, be driven by movements in the credit spread of Arcadis and the relevant hedging counterparty, mismatch of payment flow frequencies, mismatch of interest conditions, such as interest floors and possible changes to the critical terms of the economic relationship.
When a derivative ceases to be highly effective or in case of early redemption of the hedged item, hedge accounting is discontinued prospectively. When a cash flow hedge relationship is terminated, the fair value changes deferred in the cash flow hedging reserve in equity are released to profit or loss under the fair value change of derivatives only when the hedged transaction is no longer expected to occur. Otherwise, these fair value changes will be released to profit or loss at the same time as the hedged item.
\n\n\nA fair value is the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of derivatives is determined by using valuation models that incorporate various inputs, such as forward interest rate curves and the credit worthiness of counterparties. The methods and assumptions used to estimate the fair value are consistent with the prior year.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f2943m2105p": { "value": "\n\n\nThe Group uses derivatives in order to hedge the exposure to foreign exchange risks and interest rate risks arising from operational, financing and investment activities. Derivatives to be used for hedging purposes can include forward foreign exchange rate contracts, foreign exchange swaps and interest rate swaps and a combination of those, such as cross-currency interest rate swaps. The Group does not hold or issue derivatives for trading purposes. To the extent possible Hedge accounting is applied for cash flow hedges related to forecasted transactions and fair value hedges.
\n\n\nAll derivative financial instruments are initially recognized at fair value. Attributable transaction costs are recognized in profit or loss when incurred. Subsequently, derivatives are measured at fair value derived from market prices of the instruments or valuation techniques, with the fair value changes recognized in profit or loss, unless hedge accounting is applied. A gain or loss on remeasurement to the fair value of the interest rate derivatives is recognized in profit or loss under fair value change of derivatives. The fair value changes of forward foreign exchange contracts are recognized in operating income. The carrying values of the derivatives are recognized in the balance sheet as derivatives, which can be classified as current or non-current assets or liabilities, depending on the maturity of the contracts.
\n\n\nA fair value is the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of derivatives is determined by using valuation models that incorporate various inputs, such as forward interest rate curves and the credit worthiness of counterparties. The methods and assumptions used to estimate the fair value are consistent with the prior year.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3011m2164p": { "value": "\n\n\nFor a cash flow hedge of a forecasted transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported profit or loss. In specific cases hedge accounting is applied for cash flow hedges. In that case, the effective part of the fair value change of those derivatives is deferred in Other comprehensive income and presented in the hedging reserve in Equity. The hedging reserve includes the cash flow hedge reserve and the costs of hedging. Changes in the fair value of the currency basis since the inception of the hedging relationship will be deferred into a separate component of Other comprehensive income.
The amount recognized in Other comprehensive income as cash flow hedge reserve is released to the related lines in profit or loss at the same time as the hedged cash flows affect profit or loss. Any ineffective portion of change in the fair value of the derivatives is included in profit or loss immediately.
At inception of the hedge, the relationship between the hedging instrument and the hedged item is documented \u2013 including the risk management objectives, strategy of undertaking the hedge transaction, the hedged risk \u2013 and, in case of hedge accounting, the methods that will be used to assess the effectiveness of the hedge. Both at the inception of the hedge and at each reporting date, the Group makes an assessment whether the derivatives used are highly effective in offsetting changes in fair values of the cash flows of the hedged items.
The economic relationship between the hedging instrument and the hedged item is, amongst others, determined based upon matching notional amounts, a minimal fair value of the hedging instrument at inception, matching the underlying hedged risk (interest benchmark rate or currency pair), matching repricing and payment dates and an assessment of the likelihood of default of the hedging counterparty. Sources of ineffectiveness can, amongst others, be driven by movements in the credit spread of Arcadis and the relevant hedging counterparty, mismatch of payment flow frequencies, mismatch of interest conditions, such as interest floors and possible changes to the critical terms of the economic relationship.
When a derivative ceases to be highly effective or in case of early redemption of the hedged item, hedge accounting is discontinued prospectively. When a cash flow hedge relationship is terminated, the fair value changes deferred in the cash flow hedging reserve in equity are released to profit or loss under the fair value change of derivatives only when the hedged transaction is no longer expected to occur. Otherwise, these fair value changes will be released to profit or loss at the same time as the hedged item.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3014m2167p": { "value": "\n\n\nA fair value is the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of derivatives is determined by using valuation models that incorporate various inputs, such as forward interest rate curves and the credit worthiness of counterparties. The methods and assumptions used to estimate the fair value are consistent with the prior year.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3062m2195p": { "value": "\n\n\nA fair value is the price that would be received to sell an asset or would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of derivatives is determined by using valuation models that incorporate various inputs, such as forward interest rate curves and the credit worthiness of counterparties. The methods and assumptions used to estimate the fair value are consistent with the prior year.
\n\n\nThe fair values of financial assets and liabilities together with the carrying amounts recognized in the Consolidated balance sheet, are as follows:
| \n | \n\n | \n\n | \n\n Carrying value per IFRS 9 category | \n \n | \n\n | \n||
| \n In \u20ac millions | \n \n Carrying amount | \n \n Out of Scope | \n \n Amortized cost | \n \n Fair value through | \n \n Fair value through Other comprehensive income | \n \n Total | \n \n Fair value | \n
| \n At 31 December 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Investments in associates and joint ventures | \n \n 11 | \n \n 11 | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Other investments | \n \n 4 | \n \n - | \n \n - | \n \n 4 | \n \n - | \n \n 4 | \n \n 4 | \n
| \n Other non-current assets | \n \n 9 | \n \n - | \n \n 9 | \n \n - | \n \n - | \n \n 9 | \n \n 9 | \n
| \n Trade receivables | \n \n 759 | \n \n - | \n \n 759 | \n \n - | \n \n - | \n \n 759 | \n \n 759 | \n
| \n Derivatives | \n \n 10 | \n \n - | \n \n - | \n \n 9 | \n \n 1 | \n \n 10 | \n \n 10 | \n
| \n Cash and cash equivalents | \n \n 376 | \n \n - | \n \n 376 | \n \n - | \n \n - | \n \n 376 | \n \n 376 | \n
| \n Total Financial assets | \n \n 1,169 | \n \n 11 | \n \n 1,144 | \n \n 13 | \n \n 1 | \n \n 1,158 | \n \n 1,158 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Loans and borrowings: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Non-current | \n \n 772 | \n \n - | \n \n 772 | \n \n - | \n \n - | \n \n 772 | \n \n 781 | \n
| \n Current | \n \n 81 | \n \n - | \n \n 81 | \n \n - | \n \n - | \n \n 81 | \n \n 81 | \n
| \n Derivatives | \n \n 9 | \n \n - | \n \n - | \n \n 9 | \n \n - | \n \n 9 | \n \n 9 | \n
| \n Accounts payable | \n \n 300 | \n \n - | \n \n 300 | \n \n - | \n \n - | \n \n 300 | \n \n 300 | \n
| \n Lease liabilities | \n \n 262 | \n \n - | \n \n 262 | \n \n - | \n \n - | \n \n 262 | \n \n 262 | \n
| \n Deferred consideration | \n \n 1 | \n \n - | \n \n - | \n \n 1 | \n \n - | \n \n 1 | \n \n 1 | \n
| \n Bank overdrafts and short-term bank debts | \n \n 1 | \n \n - | \n \n 1 | \n \n - | \n \n - | \n \n 1 | \n \n 1 | \n
| \n Total Financial liabilities | \n \n 1,426 | \n \n - | \n \n 1,416 | \n \n 10 | \n \n - | \n \n 1,426 | \n \n 1,435 | \n
| \n | \n\n | \n\n | \n\n Carrying value per IFRS 9 category | \n \n | \n\n | \n||
| \n In \u20ac millions | \n \n Carrying amount | \n \n Out of Scope | \n \n Amortized cost | \n \n Fair value through | \n \n Fair value through Other comprehensive income | \n \n Total | \n \n Fair value | \n
| \n At 31 December 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Investments in associates and joint ventures | \n \n 11 | \n \n 11 | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Other investments | \n \n 4 | \n \n - | \n \n - | \n \n 4 | \n \n - | \n \n 4 | \n \n 4 | \n
| \n Other non-current assets | \n \n 20 | \n \n - | \n \n 20 | \n \n - | \n \n - | \n \n 20 | \n \n 20 | \n
| \n Trade receivables | \n \n 729 | \n \n - | \n \n 729 | \n \n - | \n \n - | \n \n 729 | \n \n 729 | \n
| \n Derivatives | \n \n 8 | \n \n - | \n \n - | \n \n 10 | \n \n (2) | \n \n 8 | \n \n 8 | \n
| \n Cash and cash equivalents | \n \n 290 | \n \n - | \n \n 290 | \n \n - | \n \n - | \n \n 290 | \n \n 290 | \n
| \n Total Financial assets | \n \n 1,063 | \n \n 11 | \n \n 1,039 | \n \n 14 | \n \n (2) | \n \n 1,051 | \n \n 1,051 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Loans and borrowings: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Non-current | \n \n 871 | \n \n - | \n \n 871 | \n \n - | \n \n - | \n \n 871 | \n \n 875 | \n
| \n Current | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Derivatives | \n \n 11 | \n \n - | \n \n - | \n \n 11 | \n \n - | \n \n 11 | \n \n 11 | \n
| \n Accounts payable | \n \n 313 | \n \n - | \n \n 313 | \n \n - | \n \n - | \n \n 313 | \n \n 313 | \n
| \n Lease liabilities | \n \n 281 | \n \n - | \n \n 281 | \n \n - | \n \n - | \n \n 281 | \n \n 281 | \n
| \n Deferred consideration | \n \n 2 | \n \n - | \n \n - | \n \n 2 | \n \n - | \n \n 2 | \n \n 2 | \n
| \n Bank overdrafts and short-term bank debts | \n \n 10 | \n \n - | \n \n 10 | \n \n - | \n \n - | \n \n 10 | \n \n 10 | \n
| \n Total Financial liabilities | \n \n 1,489 | \n \n - | \n \n 1,475 | \n \n 14 | \n \n - | \n \n 1,489 | \n \n 1,492 | \n
The financial instruments carried at fair value are analyzed by valuation method, using the following levels:\t
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;\t
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs).
All financial instruments carried at fair value within the Group are categorized in Level 2, except for the other investment in Techstars and the deferred consideration whereby a Level 3 valuation has been used (see note 18).
The fair value of foreign exchange forward rate contracts is based on quoted market prices at the balance sheet date, being the present value of the quoted forward price. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the term and maturity of the contract, using market interest rates.
The fair value of interest rate swaps is calculated by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at measurement date. These calculations are tested for reasonableness by comparing them with bank valuations.
The fair value of loans and receivables is based on the present value of future principal and interest cash flows, discounted at the Group specific market rate of interest at reporting date. For financial leases the market rate of interest is determined by reference to similar lease agreements.
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at reporting date. Due to the short-term character of the receivables, the fair value equals the carrying value.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1941m1487p": { "value": "\n\n\n| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n 20 | \n \n 20 | \n
| \n New receivables | \n \n 2 | \n \n 5 | \n
| \n Received | \n \n (2) | \n \n (4) | \n
| \n Derecognition | \n \n (11) | \n \n - | \n
| \n Exchange rate differences | \n \n (0) | \n \n (0) | \n
| \n Balance at 31 December | \n \n 9 | \n \n 20 | \n
In 2024, Arcadis has reassessed the presentation of balances related to NQDC plan (Non-Qualified Deferred Compensation) in the US. Applying IAS 19 considerations, the Group has concluded that the balances related to the plan should be derecognized from the balance sheet, as this plan is considered as a defined contribution plan. There are no changes made to the comparatives as it is not considered material to the Group. See note 27 for further details.\u00a0
Other non-current assets include various long-term receivables, amongst others, rental deposits of \u20ac2 million (2023: \u20ac3 million), retentions of \u20ac1 million (2023: \u20ac1 million), loans to personnel of \u20ac1 million (2023: \u20ac1 million), and judicial deposits of \u20ac1 million (2023: \u20ac1 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3072m2197p": { "value": "\n\n\n| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n 20 | \n \n 20 | \n
| \n New receivables | \n \n 2 | \n \n 5 | \n
| \n Received | \n \n (2) | \n \n (4) | \n
| \n Derecognition | \n \n (11) | \n \n - | \n
| \n Exchange rate differences | \n \n (0) | \n \n (0) | \n
| \n Balance at 31 December | \n \n 9 | \n \n 20 | \n
In 2024, Arcadis has reassessed the presentation of balances related to NQDC plan (Non-Qualified Deferred Compensation) in the US. Applying IAS 19 considerations, the Group has concluded that the balances related to the plan should be derecognized from the balance sheet, as this plan is considered as a defined contribution plan. There are no changes made to the comparatives as it is not considered material to the Group. See note 27 for further details.\u00a0
Other non-current assets include various long-term receivables, amongst others, rental deposits of \u20ac2 million (2023: \u20ac3 million), retentions of \u20ac1 million (2023: \u20ac1 million), loans to personnel of \u20ac1 million (2023: \u20ac1 million), and judicial deposits of \u20ac1 million (2023: \u20ac1 million).
\n\n\n| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Other receivables | \n \n 41 | \n \n 39 | \n
| \n Prepaid expenses | \n \n 60 | \n \n 62 | \n
| \n Balance at 31 December | \n \n 101 | \n \n 101 | \n
Other receivables are non-trade receivables and include, among others, deposits, claims to be received, interest to be received and short-term loans/prepayments to personnel.
Prepaid expenses mainly include prepayments of IT service contracts, rent and insurances. This includes renewal of significant IT software required for the Company\u2019s daily operations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1944m1488p": { "value": "\n\n\nTrade receivables include amounts billed to customers for work performed but not yet paid by the clients, and which are expected to be collected within a year after reporting date. Trade receivables are initially measured at fair value, which normally represents the consideration the Company expects to receive within the payment term (invoice amount excluding costs collected on behalf of third parties, such as sales taxes). Subsequently Trade receivables are measured at the consideration expected to be collected.
The Company uses the Expected Credit Loss (ECL) model. Trade receivables are reviewed for collectability on a case-by-case basis at regular intervals. If a Trade receivable is considered credit impaired (e.g. the customer has failed to make a payment when contractually due) the expected loss is determined as the difference between the carrying amount and the recoverable amount. The recoverable amount is the present value of expected future cash flows discounted at the effective market interest rates.
A simplified approach is applied that uses a lifetime expected loss allowance to recognize losses for possible impairment of Trade receivables that are not individually impaired yet. The Expected Credit Loss is recognized in Other operational costs.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1947m1489p": { "value": "| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Trade receivables | \n \n | \n\n 809 | \n \n 789 | \n
| \n Provision for trade receivables (individually impaired bad debt) | \n \n | \n\n (49) | \n \n (60) | \n
| \n Provision for trade receivables (Expected Credit Loss) | \n \n | \n\n (1) | \n \n (1) | \n
| \n Receivables from associates | \n \n | \n\n 2 | \n \n 2 | \n
| \n Total | \n \n | \n\n 761 | \n \n 731 | \n
Of the total gross Trade receivables, approximately 7% is subject to a so-called \u2018paid-when-paid\u2019 clause (2023: 3%). They are classified as current as Arcadis expects to collect the amounts within one year. Further information about Arcadis\u2019 exposure to credit risk is included below and in note 31.
\n\n\n| \n | \n\n 2024 | \n \n 2023 | \n ||||
| \n In \u20ac millions | \n \n Gross | \n \n Provision | \n \n Provision | \n \n Gross | \n \n Provision | \n \n Provision | \n
| \n Not past due | \n \n 529 | \n \n (4) | \n \n (0) | \n \n 518 | \n \n (3) | \n \n (0) | \n
| \n Past due 0-30 days | \n \n 108 | \n \n (1) | \n \n (0) | \n \n 96 | \n \n (1) | \n \n (0) | \n
| \n Past due 31-60 days | \n \n 39 | \n \n (1) | \n \n (0) | \n \n 40 | \n \n (1) | \n \n (0) | \n
| \n Past due 61-120 days | \n \n 31 | \n \n (0) | \n \n (0) | \n \n 36 | \n \n (1) | \n \n (0) | \n
| \n Past due 121-364 days | \n \n 40 | \n \n (5) | \n \n (1) | \n \n 37 | \n \n (4) | \n \n (0) | \n
| \n More than 364 days due | \n \n 62 | \n \n (38) | \n \n (0) | \n \n 63 | \n \n (50) | \n \n (0) | \n
| \n Total | \n \n 809 | \n \n (49) | \n \n (1) | \n \n 789 | \n \n (60) | \n \n (1) | \n
Individual assessments, in combination with the fact that the actual write-offs of trade receivables in recent years did not cause us to expect that the provision should be significantly higher, resulted in the conclusion that the provision for bad debt is sufficient to cover for Trade receivables for which there is objective evidence of an impairment.
\n\n\nThe total provision for Trade receivable includes the Expected Credit Loss for individually non-impaired items and individually credit impaired items. To apply the simplified approach to the \u201chealthy\u201d portfolio, Arcadis grouped the Trade receivables by country and the days past due. No specific measures were taken by the Group to extend credit terms for customers. The expected loss rate for the stage 1 and 2 losses is based on the country risk and varies from 0.0% to 0.7% for positions less than 90 days past due and up to 5.1% for items past due more than 90 days.
The total provision for Trade receivables developed as follows:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n | \n\n 61 | \n \n 54 | \n
| \n Acquisitions/ divestments | \n \n | \n\n (1) | \n \n - | \n
| \n Additions charged to profit or loss | \n \n | \n\n 15 | \n \n 17 | \n
| \n Release of unused amounts | \n \n | \n\n (15) | \n \n (5) | \n
| \n Remeasurement Expected Credit Loss | \n \n | \n\n - | \n \n - | \n
| \n Utilizations | \n \n | \n\n (10) | \n \n (5) | \n
| \n Exchange rate differences | \n \n | \n\n 0 | \n \n (1) | \n
| \n Balance at 31 December | \n \n | \n\n 50 | \n \n 61 | \n
The total provision for Trade receivable includes the Expected Credit Loss for individually non-impaired items and individually credit impaired items. To apply the simplified approach to the \u201chealthy\u201d portfolio, Arcadis grouped the Trade receivables by country and the days past due. No specific measures were taken by the Group to extend credit terms for customers. The expected loss rate for the stage 1 and 2 losses is based on the country risk and varies from 0.0% to 0.7% for positions less than 90 days past due and up to 5.1% for items past due more than 90 days.
The total provision for Trade receivables developed as follows:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n | \n\n 61 | \n \n 54 | \n
| \n Acquisitions/ divestments | \n \n | \n\n (1) | \n \n - | \n
| \n Additions charged to profit or loss | \n \n | \n\n 15 | \n \n 17 | \n
| \n Release of unused amounts | \n \n | \n\n (15) | \n \n (5) | \n
| \n Remeasurement Expected Credit Loss | \n \n | \n\n - | \n \n - | \n
| \n Utilizations | \n \n | \n\n (10) | \n \n (5) | \n
| \n Exchange rate differences | \n \n | \n\n 0 | \n \n (1) | \n
| \n Balance at 31 December | \n \n | \n\n 50 | \n \n 61 | \n
The Expected Credit Loss allowance developed as follows:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n | \n\n 5 | \n \n 0 | \n
| \n Remeasurement of Expected Credit Loss | \n \n | \n\n 2 | \n \n 5 | \n
| \n Balance at 31 December | \n \n | \n\n 7 | \n \n 5 | \n
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Other receivables | \n \n 41 | \n \n 39 | \n
| \n Prepaid expenses | \n \n 60 | \n \n 62 | \n
| \n Balance at 31 December | \n \n 101 | \n \n 101 | \n
Other receivables are non-trade receivables and include, among others, deposits, claims to be received, interest to be received and short-term loans/prepayments to personnel.
Prepaid expenses mainly include prepayments of IT service contracts, rent and insurances. This includes renewal of significant IT software required for the Company\u2019s daily operations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1955m1493p": { "value": "| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Other receivables | \n \n 41 | \n \n 39 | \n
| \n Prepaid expenses | \n \n 60 | \n \n 62 | \n
| \n Balance at 31 December | \n \n 101 | \n \n 101 | \n
Other receivables are non-trade receivables and include, among others, deposits, claims to be received, interest to be received and short-term loans/prepayments to personnel.
Prepaid expenses mainly include prepayments of IT service contracts, rent and insurances. This includes renewal of significant IT software required for the Company\u2019s daily operations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1957m1494p": { "value": "\n\n\nCash and cash equivalents comprise cash balances and call deposits maturing within three months from the acquisition date and used by the Company in managing its short-term commitments. For cash flow reporting purposes bank overdrafts are included in Cash and cash equivalents.
\nCash and cash equivalents at the balance sheet date can be specified as below.
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Bank and cash | \n \n 303 | \n \n 254 | \n
| \n Deposits | \n \n 73 | \n \n 36 | \n
| \n Balance at 31 December | \n \n 376 | \n \n 290 | \n
| \n | \n\n | \n\n | \n
| \n Bank overdrafts | \n \n (1) | \n \n (10) | \n
| \n Cash and cash equivalent less bank overdraft | \n \n 375 | \n \n 280 | \n
The average effective interest rate earned on cash during 2024 was 3.8% (2023: 3.6%). At 31 December 2024, \u20ac358 million of Cash and cash equivalents was freely available (2023: \u20ac270 million).
Restricted cash amounting to \u20ac19 million is composed of cash balances mainly held in China (2023: \u20ac20 million). The Group has control over these balances; however, repatriation may be limited due to restrictive local regulatory and judicial requirements. As a result, the cash balances of some countries cannot be fully included in the global cash pooling or liquidity enhancement structures. In line with industry practice, the Group considers cash outside of global cash pooling or liquidity enhancement structures to be restricted if the Group is unable to repatriate cash within a defined period via either dividends, intercompany loans, or settlement of intercompany invoices.
At 31 December 2024, Cash and cash equivalents and Bank overdrafts have not been offset (comparable to 2023). The Bank overdraft at 31 December 2024 is \u20ac1 million (2023: \u20ac10 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3016m2169p": { "value": "Cash and cash equivalents comprise cash balances and call deposits maturing within three months from the acquisition date and used by the Company in managing its short-term commitments. For cash flow reporting purposes bank overdrafts are included in Cash and cash equivalents.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1960m1495p": { "value": "Restricted cash amounting to \u20ac19 million is composed of cash balances mainly held in China (2023: \u20ac20 million). The Group has control over these balances; however, repatriation may be limited due to restrictive local regulatory and judicial requirements. As a result, the cash balances of some countries cannot be fully included in the global cash pooling or liquidity enhancement structures. In line with industry practice, the Group considers cash outside of global cash pooling or liquidity enhancement structures to be restricted if the Group is unable to repatriate cash within a defined period via either dividends, intercompany loans, or settlement of intercompany invoices.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1961m1496p": { "value": "\n\n\n| \n Number of shares | \n \n Authorized | \n \n Issued and | \n
| \n 2024 | \n \n | \n\n | \n
| \n Ordinary shares (120,000,000, nominal value \u20ac0.02) | \n \n 2,400,000 | \n \n 1,808,842 | \n
| \n Cumulative preferred (protective) shares (150,000,000, nominal value \u20ac0.02) | \n \n 3,000,000 | \n \n - | \n
| \n Cumulative financing preferred shares (30,000,000, nominal value \u20ac0.02) | \n \n 600,000 | \n \n - | \n
| \n Priority shares (600, nominal value \u20ac0.02) | \n \n 12 | \n \n 12 | \n
| \n Total as at 31 December | \n \n 6,000,012 | \n \n 1,808,854 | \n
The development of the number of shares issued/outstanding during 2024 and 2023 are presented in the table below.
| \n Number of shares | \n \n Ordinary shares | \n \n Priority shares | \n \n Treasury stock | \n \n Total issued | \n
| \n Balance at 1 January 2023 | \n \n 89,572,574 | \n \n 600 | \n \n 869,517 | \n \n 90,442,691 | \n
| \n Shares issued (stock dividend) | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Shares cancelled | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Repurchased shares | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Exercised shares and options | \n \n 400,355 | \n \n - | \n \n (400,355) | \n \n - | \n
| \n At 31 December 2023 | \n \n 89,972,929 | \n \n 600 | \n \n 469,162 | \n \n 90,442,691 | \n
| \n Shares issued (stock dividend) | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Shares cancelled | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Repurchased shares | \n \n (810,000) | \n \n - | \n \n 810,000 | \n \n - | \n
| \n Exercised shares and options | \n \n 248,376 | \n \n - | \n \n (248,376) | \n \n - | \n
| \n At 31 December 2024 | \n \n 89,411,305 | \n \n 600 | \n \n 1,030,786 | \n \n 90,442,691 | \n
Total number of outstanding priority shares at 31 December 2024 is 600 (2023: 600). In 2024, no preferred (protective) shares or financing preference shares were issued or outstanding.
The priority shares have been issued since 1987 and are all held by Stichting Prioriteit Arcadis N.V. (Priority Foundation); a foundation with its corporate seat in Arnhem. Special rights under the Articles of Association of Arcadis N.V. linked to these priority shares concern decision making related to, among others:
The issuance, acquisition and disposal of shares in the Company;
Amendments to the Articles of Association;
The dissolution of the Company and the filing for bankruptcy;
The entry into or termination of long-term cooperative ventures of substantial significance; and
Investments (including entering into participations) for an amount equal to at least 25% of the shareholders\u2019 equity.
Pursuant to the articles of association of the Priority Foundation, the Board of the Foundation consists of 20 board members (with three (3) vacancies at 31 December 2024): seven (7) members of the Arcadis N.V. Supervisory Board, both (2) members of the Arcadis N.V. Executive Board, one (1) member of the Arcadis N.V. Executive Leadership Team and ten (10) members from the Board of Stichting Bellevue (a foundation seated in Amsterdam, whose board members are appointed by and from the international employees of the Arcadis Group).\u00a0
\n\n\nCurrently no cumulative preferred (protective) shares have been issued. However, an option agreement to acquire such shares has been entered into between Stichting Preferente Aandelen Arcadis N.V. (Preferred Stock Foundation) and Arcadis N.V. under that agreement. The Preferred Stock Foundation has been granted the right to acquire protective shares up to a maximum equal to the number of outstanding shares at the date in question (call option).
The Board of the Preferred Stock Foundation consists of three (3) members appointed by the Board itself. The Chair (or another member) of the Supervisory Board and the CEO (or the other member of the Executive Board) will be invited to attend the board meetings of this foundation. This will not apply if a decision is to be made on the exercise of the option right or the exercise of voting rights on acquired shares.
\n\n\nSince 2002, the Articles of Association of Arcadis N.V. include the possibility to issue cumulative financing preferred shares. Currently, no such shares have been issued.
\n\n\nThe Articles of Association of Stichting Lovinklaan (Lovinklaan Foundation) stipulate that their Articles of Association cannot be amended without prior approval of the Priority Foundation. In a separate agreement between the Priority Foundation and the Lovinklaan Foundation it is stipulated that prior approval of the Priority Foundation is required for any resolution concerning the disposal or transfer of shares in Arcadis N.V. if, as a result of such resolution the number of shares held by the Lovinklaan Foundation will drop below 12,000,000 (number of shares held at 31 December 2024: 16,841,554).
\n\n\nThe General Meeting decides, with the approval of the Supervisory Board and the Priority Foundation, about the issuance of shares or grant of rights to acquire shares. The General Meeting can also delegate its authority to issue shares, or part thereof, to the Executive Board. As long as any such delegation stands, the General Meeting cannot decide to issue. No shares were issued in 2024 (2023: nil).
\n\n\nAs mandated by the General Meeting and with approval from the Supervisory Board and the Priority Foundation, the Executive Board may purchase fully paid-up shares in Arcadis N.V. The mandate is not needed in case the shares are purchased to be transferred to employees and to fulfill commitments for stock dividend. As a result of its Long-Term Incentive Plan(s) or related arrangements, Arcadis needs to provide shares to persons working for Arcadis. The intention is to minimize dilution by purchasing (a portion of) the shares needed for such Long-Term Incentive Plan(s) (or related arrangements), as opposed to issuing new shares.
The following numbers of shares were repurchased over the past five years:
| \n Year | \n \n Number of shares | \n \n Price at time of | \n
| \n 2020 | \n \n 504,386 | \n \n 12.30 to 27.96 | \n
| \n 2021 | \n \n 2,316,830 | \n \n 27.58 to 40.24 | \n
| \n 2022 | \n \n - | \n \n - | \n
| \n 2023 | \n \n - | \n \n - | \n
| \n 2024 | \n \n 810,000 | \n \n 61.34 to 66.16 | \n
Group announced on 4 October 2024 the start of a share buyback program to repurchase up to 810,000 shares to cover existing and expected future obligations under its employee incentive plans maturing in the next 3 to 4 years. The repurchase of shares commenced on 4 October 2024 and has been completed on 9 December 2024.\u00a0The repurchased shares are to cover for the vesting/exercise of shares and options granted and commitment for stock dividend. The cash equivalent of the temporary repurchased shares are deducted from Retained earnings.
At 31 December 2024, the number of repurchased shares in stock (treasury stock) amounted to 1,030,786 (2023: 469,162).
The number of outstanding ordinary shares over the past five years developed as follows:
| \n Year | \n \n 1 January | \n \n Issued | \n \n Repurchased | \n \n Reissued | \n \n 31 December | \n
| \n 2020 | \n \n 89,045,228 | \n \n - | \n \n (504,386) | \n \n 1,577,872 | \n \n 90,118,714 | \n
| \n 2021 | \n \n 90,118,714 | \n \n 616,854 | \n \n (2,316,830) | \n \n 590,501 | \n \n 89,009,239 | \n
| \n 2022 | \n \n 89,009,239 | \n \n - | \n \n - | \n \n 563,335 | \n \n 89,572,574 | \n
| \n 2023 | \n \n 89,572,574 | \n \n - | \n \n - | \n \n 400,355 | \n \n 89,972,929 | \n
| \n 2024 | \n \n 89,972,929 | \n \n - | \n \n (810,000) | \n \n 248,376 | \n \n 89,411,305 | \n
Share premium represents the premium paid in excess of the par value of shares at the time of the issuance of new shares or exercise of share options.
\n\n\nTranslation reserve (a statutory reserve) comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations. \u20ac48 million was added to the Translation reserve in 2024 (2023: \u20ac28 million deduction).
\n\n\nThe hedging reserve comprises the effective portion of the cumulative net change in fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred. An amount of \u20ac0.4 million was added to the Hedging reserve in 2024 with nil tax effect on the same (2023: \u20ac2 million deduction with nil tax effect).
\n\n\nThe Executive Board proposes, with the approval of the Supervisory Board, which part of the profit shall be reserved. The remaining part of the profits shall be at the disposal of the General Meeting and may be distributed as dividend. The holder of the priority shares is entitled to a dividend of 5% of the par value of the priority shares, prior to any dividend distribution being made. On these shares no further distributions shall be made.
\n\n\nThe profit attributable to the equity holders of the Company over fiscal year 2024 amounts to \u20ac243 million. The Executive Board, with the approval of the Supervisory Board, proposes to present for approval to the General Meeting its proposal to distribute a dividend amount of \u20ac89 million, which represents a dividend of \u20ac1.00 per ordinary share (2023: \u20ac0.85). Of the total Retained earnings, an amount of \u20ac10 million of legal reserves is restricted in distribution (2023: \u20ac10 million). See note 45 to the Company financial statements for further details.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1963m1497p": { "value": "\n\n\nOrdinary shares are classified as equity. Incremental costs directly attributable to the issuance of ordinary shares and rights to acquire shares are recognized as a deduction of equity, net of any tax effects.
Priority shares and preference shares are classified as equity since these are non-redeemable, or only redeemable at the Company\u2019s option. Dividends on these shares are recognized as distributions within equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1964m1498p": { "value": "\n\n\nWhen share capital is repurchased, the consideration paid, including directly attributable costs net of any tax effects, is deducted from equity. Repurchased shares (treasury shares) are presented as a deduction from total equity. When treasury shares are sold or reissued, subsequently any amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to/from retained earnings.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1965m1499p": { "value": "\n\n\nDividends are recognized as a liability in the period in which they are declared.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1967m1500p": { "value": "| \n Number of shares | \n \n Authorized | \n \n Issued and | \n
| \n 2024 | \n \n | \n\n | \n
| \n Ordinary shares (120,000,000, nominal value \u20ac0.02) | \n \n 2,400,000 | \n \n 1,808,842 | \n
| \n Cumulative preferred (protective) shares (150,000,000, nominal value \u20ac0.02) | \n \n 3,000,000 | \n \n - | \n
| \n Cumulative financing preferred shares (30,000,000, nominal value \u20ac0.02) | \n \n 600,000 | \n \n - | \n
| \n Priority shares (600, nominal value \u20ac0.02) | \n \n 12 | \n \n 12 | \n
| \n Total as at 31 December | \n \n 6,000,012 | \n \n 1,808,854 | \n
The development of the number of shares issued/outstanding during 2024 and 2023 are presented in the table below.
| \n Number of shares | \n \n Ordinary shares | \n \n Priority shares | \n \n Treasury stock | \n \n Total issued | \n
| \n Balance at 1 January 2023 | \n \n 89,572,574 | \n \n 600 | \n \n 869,517 | \n \n 90,442,691 | \n
| \n Shares issued (stock dividend) | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Shares cancelled | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Repurchased shares | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Exercised shares and options | \n \n 400,355 | \n \n - | \n \n (400,355) | \n \n - | \n
| \n At 31 December 2023 | \n \n 89,972,929 | \n \n 600 | \n \n 469,162 | \n \n 90,442,691 | \n
| \n Shares issued (stock dividend) | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Shares cancelled | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Repurchased shares | \n \n (810,000) | \n \n - | \n \n 810,000 | \n \n - | \n
| \n Exercised shares and options | \n \n 248,376 | \n \n - | \n \n (248,376) | \n \n - | \n
| \n At 31 December 2024 | \n \n 89,411,305 | \n \n 600 | \n \n 1,030,786 | \n \n 90,442,691 | \n
As mandated by the General Meeting and with approval from the Supervisory Board and the Priority Foundation, the Executive Board may purchase fully paid-up shares in Arcadis N.V. The mandate is not needed in case the shares are purchased to be transferred to employees and to fulfill commitments for stock dividend. As a result of its Long-Term Incentive Plan(s) or related arrangements, Arcadis needs to provide shares to persons working for Arcadis. The intention is to minimize dilution by purchasing (a portion of) the shares needed for such Long-Term Incentive Plan(s) (or related arrangements), as opposed to issuing new shares.
The following numbers of shares were repurchased over the past five years:
| \n Year | \n \n Number of shares | \n \n Price at time of | \n
| \n 2020 | \n \n 504,386 | \n \n 12.30 to 27.96 | \n
| \n 2021 | \n \n 2,316,830 | \n \n 27.58 to 40.24 | \n
| \n 2022 | \n \n - | \n \n - | \n
| \n 2023 | \n \n - | \n \n - | \n
| \n 2024 | \n \n 810,000 | \n \n 61.34 to 66.16 | \n
Group announced on 4 October 2024 the start of a share buyback program to repurchase up to 810,000 shares to cover existing and expected future obligations under its employee incentive plans maturing in the next 3 to 4 years. The repurchase of shares commenced on 4 October 2024 and has been completed on 9 December 2024.\u00a0The repurchased shares are to cover for the vesting/exercise of shares and options granted and commitment for stock dividend. The cash equivalent of the temporary repurchased shares are deducted from Retained earnings.
At 31 December 2024, the number of repurchased shares in stock (treasury stock) amounted to 1,030,786 (2023: 469,162).
The number of outstanding ordinary shares over the past five years developed as follows:
| \n Year | \n \n 1 January | \n \n Issued | \n \n Repurchased | \n \n Reissued | \n \n 31 December | \n
| \n 2020 | \n \n 89,045,228 | \n \n - | \n \n (504,386) | \n \n 1,577,872 | \n \n 90,118,714 | \n
| \n 2021 | \n \n 90,118,714 | \n \n 616,854 | \n \n (2,316,830) | \n \n 590,501 | \n \n 89,009,239 | \n
| \n 2022 | \n \n 89,009,239 | \n \n - | \n \n - | \n \n 563,335 | \n \n 89,572,574 | \n
| \n 2023 | \n \n 89,572,574 | \n \n - | \n \n - | \n \n 400,355 | \n \n 89,972,929 | \n
| \n 2024 | \n \n 89,972,929 | \n \n - | \n \n (810,000) | \n \n 248,376 | \n \n 89,411,305 | \n
Translation reserve (a statutory reserve) comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations. \u20ac48 million was added to the Translation reserve in 2024 (2023: \u20ac28 million deduction).
\n\n\nThe hedging reserve comprises the effective portion of the cumulative net change in fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred. An amount of \u20ac0.4 million was added to the Hedging reserve in 2024 with nil tax effect on the same (2023: \u20ac2 million deduction with nil tax effect).
\n\n\nThe Executive Board proposes, with the approval of the Supervisory Board, which part of the profit shall be reserved. The remaining part of the profits shall be at the disposal of the General Meeting and may be distributed as dividend. The holder of the priority shares is entitled to a dividend of 5% of the par value of the priority shares, prior to any dividend distribution being made. On these shares no further distributions shall be made.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1970m1503p": { "value": "\n\n\nThe profit attributable to the equity holders of the Company over fiscal year 2024 amounts to \u20ac243 million. The Executive Board, with the approval of the Supervisory Board, proposes to present for approval to the General Meeting its proposal to distribute a dividend amount of \u20ac89 million, which represents a dividend of \u20ac1.00 per ordinary share (2023: \u20ac0.85). Of the total Retained earnings, an amount of \u20ac10 million of legal reserves is restricted in distribution (2023: \u20ac10 million). See note 45 to the Company financial statements for further details.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3604m2299p": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f3603m2298p": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f1971m1504p": { "value": "\n\n\nThe movements in non-controlling interests are specified below.
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n (2) | \n \n (2) | \n
| \n Share in profit for the year | \n \n (1) | \n \n (0) | \n
| \n Dividends to non-controlling shareholders | \n \n - | \n \n - | \n
| \n Acquisitions/(divestments) | \n \n 0 | \n \n - | \n
| \n Exchange rate differences | \n \n (0) | \n \n 0 | \n
| \n Balance at 31 December | \n \n (3) | \n \n (2) | \n
At 31 December 2024, the non-controlling interests mainly consisted of:
Hyder & Solaiman Elkhereiji Engineering Consultants P.C. (30%) (2023: 30%)
Water Platform Company B.V. (30%) (2023: 30%)
Non-controlling interests represent the net assets which are not held by the Company and are presented within total equity in the Consolidated balance sheet as a separate category. Profit or loss and each component of Other comprehensive income are attributed to the equity holders and to the non-controlling interests.
\nThe table below provides a summary of the total provision for employee benefits at the balance sheet date.
| \n In \u20ac millions | \n \n Asset side | \n \n Liability side | \n \n Total 2024 | \n
| \n Defined benefit pension plans | \n \n 18 | \n \n 21 | \n \n 3 | \n
| \n Other deferred compensation plans | \n \n - | \n \n 11 | \n \n 11 | \n
| \n Total provision for employee benefits | \n \n 18 | \n \n 32 | \n \n 14 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n Non-current | \n \n 18 | \n \n 27 | \n \n 9 | \n
| \n Current | \n \n - | \n \n 5 | \n \n 5 | \n
| \n Total | \n \n 18 | \n \n 32 | \n \n 14 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n | \n\n | \n\n | \n\n | \n
| \n In \u20ac millions | \n \n Asset side | \n \n Liability side | \n \n Total 2023 | \n
| \n Defined benefit pension plans | \n \n 15 | \n \n 26 | \n \n 11 | \n
| \n Other deferred compensation plans | \n \n - | \n \n 20 | \n \n 20 | \n
| \n Total provision for employee benefits | \n \n 15 | \n \n 46 | \n \n 31 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n Non-current | \n \n 15 | \n \n 40 | \n \n 26 | \n
| \n Current | \n \n - | \n \n 6 | \n \n 6 | \n
| \n Total | \n \n 15 | \n \n 46 | \n \n 31 | \n
The total pension costs recognized in profit or loss were as follows:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Total defined benefit pension plans | \n \n 2 | \n \n 4 | \n
| \n Total defined contribution pension plan and other deferred compensation plans | \n \n 96 | \n \n 91 | \n
| \n Total pension costs | \n \n 98 | \n \n 95 | \n
The pension expenses of defined benefit and defined contribution pension plans are recognized in the following line items in the Consolidated income statement:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Personnel costs | \n \n | \n\n 98 | \n \n 96 | \n
| \n Finance expenses/ (income) | \n \n | \n\n (0) | \n \n (1) | \n
| \n Total pension costs | \n \n | \n\n 98 | \n \n 95 | \n
The defined benefit pension plans of the Group are either career average, final salary or hybrid plans. In addition, there is a termination indemnity plan for Arcadis Middle East, which pays out a single lump sum at exit (regardless of age or reason for exit).
The two main defined benefit pension plans are in the UK, being the \u2018EC Harris Group Pension Scheme\u2019 and the \u2018Acer Group Pension Scheme\u2019 (formerly Hyder), which account for 100% of the pension assets for funded schemes in surplus. The defined benefit liability is mainly due to the termination indemnity plan in Arcadis Middle East (24% of the total defined benefit liability) and other individually immaterial defined benefit pension plans within the Group.
As at 31 December 2024 both defined benefit pension plans in the UK have a surplus of \u20ac18 million (31 December 2023: \u20ac15 million). This increase is primarily due to rise in bond yields which has reduced the value of the liabilities, offset by lower than expected investment performance.
The EC Harris Group Pension Scheme has been closed for future accruals since 31 January 2011, whereas the Acer Group Pension Scheme was closed for future accruals since 30 April 2011. Both plans are funded plans. The other defined benefit pensions plans are mainly active and funded plans.
In June 2023, a High Court legal ruling in the UK decided that rule amendments to certain pension plans were invalid if they were not accompanied by the correct actuarial confirmation. While the ruling only applied to the specific pension scheme in question, if the ruling stands, it will form part of the case law and can therefore be expected to apply across other pension schemes, including EC Harris Group Pension Scheme and Acer Group Pension Scheme. Disclosures have been calculated assuming that this ruling will not affect the benefits of either Scheme on the basis that there is a reasonable prospect of successful appeal against the ruling.
\n\n\nThe majority of the defined benefit pension plans are established as independent foundations or similar entities, with operations governed by local regulations and practice in each country. Boards of Trustees, which consist of employer and employee representatives, are generally required to act on behalf of the plan\u2019s stakeholders and perform periodic reviews on the solvency of the funds in accordance with local laws and regulations. They are responsible for administering the plan assets and for defining the investment strategy.
\n\n\nThe investment strategy of the Group in respect of the funded plans is implemented within the framework of the various local requirements of the countries where the plans are based. The objective is to control the risks and maintain an appropriate balance between the risks and the long-term returns. Therefore, the investments are well diversified and managed within the asset-liability matching (ALM) frameworks of the funds. Within these frameworks the objective is to match assets to the pensions obligations by investing in long-term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency.
\n\n\nThe table below provides a summary of the classification of the defined benefit pension plans at 31 December.
| \n | \n\n 2024 | \n \n 2023 | \n ||||
| \n In \u20ac millions | \n \n Present value of | \n \n Fair value of | \n \n Total | \n \n Present value of | \n \n Fair value of | \n \n Total | \n
| \n EC Harris Group Pension Scheme (ECH) | \n \n 75 | \n \n 78 | \n \n (3) | \n \n 79 | \n \n 82 | \n \n (3) | \n
| \n Acer Group Pension Scheme (AGPS) | \n \n 157 | \n \n 172 | \n \n (15) | \n \n 169 | \n \n 180 | \n \n (11) | \n
| \n ME Termination Indemnity Plan (HME) | \n \n 5 | \n \n - | \n \n 5 | \n \n 10 | \n \n - | \n \n 10 | \n
| \n Other defined benefit pension plans | \n \n 19 | \n \n 3 | \n \n 16 | \n \n 17 | \n \n 2 | \n \n 15 | \n
| \n Total defined benefit pension plans | \n \n | \n\n | \n\n 3 | \n \n | \n\n | \n\n 11 | \n
The next table provides a summary of the changes in the defined benefit obligations and the fair value of the plan assets for the UK (A and B hereafter), Arcadis Middle East (C) and the other defined benefit pension plans (D). It also provides a reconciliation of the funded status of the plans to the amounts recognized in the Consolidated balance sheet.
| \n In \u20ac millions | \n \n | \n\n ECH | \n \n AGPS | \n \n AME | \n \n Other | \n \n Total | \n
| \n Balance at 1 January 2023 | \n \n | \n\n (6) | \n \n (4) | \n \n 14 | \n \n 15 | \n \n 18 | \n
| \n Current service cost | \n \n | \n\n - | \n \n - | \n \n 1 | \n \n | \n\n | \n
| \n Interest expense/ (income) | \n \n | \n\n (0) | \n \n (0) | \n \n 0 | \n \n | \n\n | \n
| \n One-off equalization cost | \n \n | \n\n - | \n \n - | \n \n - | \n \n | \n\n | \n
| \n Reclassification | \n \n | \n\n - | \n \n - | \n \n - | \n \n | \n\n | \n
| \n Subtotal | \n \n | \n\n (0) | \n \n (0) | \n \n 1 | \n \n 3 | \n \n 4 | \n
| \n Remeasurement: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Return on plan assets excluding amounts included in interest expense/ (income) | \n \n | \n\n 2 | \n \n (5) | \n \n - | \n \n | \n\n | \n
| \n (Gain)/ loss from change in financial assumptions | \n \n | \n\n 3 | \n \n 5 | \n \n 0 | \n \n | \n\n | \n
| \n (Gain)/ loss from change in demographic assumptions | \n \n | \n\n (3) | \n \n (5) | \n \n 0 | \n \n | \n\n | \n
| \n Experience (gain)/ loss | \n \n | \n\n 3 | \n \n 2 | \n \n 1 | \n \n | \n\n | \n
| \n Total remeasurement | \n \n | \n\n 5 | \n \n (3) | \n \n 1 | \n \n (0) | \n \n 2 | \n
| \n Exchange rate differences | \n \n | \n\n (0) | \n \n (0) | \n \n (0) | \n \n (0) | \n \n (1) | \n
| \n Contributions by employer | \n \n | \n\n (2) | \n \n (3) | \n \n - | \n \n | \n\n (5) | \n
| \n Benefit payments from plans | \n \n | \n\n - | \n \n - | \n \n (5) | \n \n (2) | \n \n (8) | \n
| \n Balance at 31 December 2023 | \n \n | \n\n (3) | \n \n (11) | \n \n 10 | \n \n 15 | \n \n 11 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Current service cost | \n \n | \n\n - | \n \n - | \n \n 0 | \n \n | \n\n | \n
| \n Interest expense/ (income) | \n \n | \n\n (0) | \n \n (0) | \n \n 0 | \n \n | \n\n | \n
| \n One-off equalization cost | \n \n | \n\n - | \n \n - | \n \n - | \n \n | \n\n | \n
| \n Reclassification | \n \n | \n\n - | \n \n - | \n \n - | \n \n | \n\n | \n
| \n Subtotal | \n \n | \n\n (0) | \n \n (0) | \n \n - | \n \n 2 | \n \n 2 | \n
| \n Remeasurement: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Return on plan assets excluding amounts included in interest expense/ (income) | \n \n | \n\n 9 | \n \n 19 | \n \n - | \n \n | \n\n | \n
| \n (Gain)/ loss from change in financial assumptions | \n \n | \n\n (7) | \n \n (17) | \n \n - | \n \n | \n\n | \n
| \n (Gain)/ loss from change in demographic assumptions | \n \n | \n\n (0) | \n \n (1) | \n \n 0 | \n \n | \n\n | \n
| \n Experience (gain)/ loss | \n \n | \n\n 0 | \n \n (1) | \n \n 1 | \n \n | \n\n | \n
| \n Total remeasurement | \n \n | \n\n 2 | \n \n 0 | \n \n 1 | \n \n 0 | \n \n 3 | \n
| \n Exchange rate differences | \n \n | \n\n (0) | \n \n (1) | \n \n 1 | \n \n 0 | \n \n (0) | \n
| \n Contributions by employer | \n \n | \n\n (2) | \n \n (3) | \n \n - | \n \n | \n\n (5) | \n
| \n Benefit payments from plans | \n \n | \n\n - | \n \n - | \n \n (7) | \n \n (1) | \n \n (8) | \n
| \n Balance at 31 December 2024 | \n \n | \n\n (3) | \n \n (15) | \n \n 5 | \n \n 16 | \n \n 3 | \n
The current and non-current breakdown of defined benefit pension plan is as follows:
| \n In \u20ac millions | \n \n | \n\n 2024 | \n \n 2023 | \n
| \n Non-current | \n \n | \n\n 3 | \n \n 11 | \n
| \n Current | \n \n | \n\n 0 | \n \n 0 | \n
| \n Total | \n \n | \n\n 3 | \n \n 11 | \n
All invested assets shown in the table below are quoted.
| \n In \u20ac millions / % | \n \n 2024 | \n \n % | \n \n 2023 | \n \n % | \n
| \n Equities | \n \n 12 | \n \n 16 | \n \n 10 | \n \n 13 | \n
| \n Property and real estate | \n \n 0 | \n \n 1 | \n \n 1 | \n \n 1 | \n
| \n Cash | \n \n 3 | \n \n 3 | \n \n 1 | \n \n 1 | \n
| \n Other1 | \n \n 63 | \n \n 80 | \n \n 70 | \n \n 85 | \n
| \n Total at 31 December | \n \n 78 | \n \n 100 | \n \n 82 | \n \n 100 | \n
| \n 1 Others include private credit, diversified growth funds and liability driven investment fund | \n
The principal actuarial assumptions at the reporting dates are:
| \n in % | \n \n 2024 | \n \n 2023 | \n
| \n Discount rate | \n \n 5.45 | \n \n 4.60 | \n
| \n Pension increases | \n \n 1.95-3.50 | \n \n 1.95-3.40 | \n
| \n Retail price index inflation | \n \n 3.30 | \n \n 3.30 | \n
| \n Consumer price index inflation | \n \n 2.30 | \n \n 2.30 | \n
The discount rate is based on yields on UK AA-rated high-quality corporate bonds, with durations comparable to the duration of the pension plan\u2019s liabilities. Based on the assumptions described in this note, these payments have an average duration of 13 years.
Demographic assumptions regarding future mortality are based on published statistics and mortality tables. The current life expectancy (in years) underlying the values of the liabilities in the defined benefit plans are as follows:\t
| \n In years | \n \n 2024 | \n \n 2023 | \n
| \n Male/female currently age 65 | \n \n 21.6/ 24.1 | \n \n 21.7/ 24.3 | \n
| \n Male/female reaching age of 65 in 20 years | \n \n 22.9.0/ 25.5 | \n \n 23.0/ 25.6 | \n
The calculation of the defined benefit obligation is sensitive to, amongst others, the discount rate, rate of inflation and changes in the mortality assumptions. In 2024, the sensitivity analysis was as follows:
| \n In % / \u20ac millions | \n \n Change in | \n \n Change in | \n
| \n Discount rate | \n \n 0.5% | \n \n 5 | \n
| \n Rate of inflation | \n \n 0.5% | \n \n 2 | \n
| \n Life expectancy | \n \n one-year change | \n \n 2 | \n
The sensitivity analysis as disclosed in the 2023 financial statements was as follows:
| \n In % / \u20ac millions | \n \n Change in | \n \n Change in | \n
| \n Discount rate | \n \n 0.5% | \n \n 6 | \n
| \n Rate of inflation | \n \n 0.5% | \n \n 3 | \n
| \n Life expectancy | \n \n one-year change | \n \n 3 | \n
The Company expects \u20ac2 million in contributions to be paid to the plan in 2025. The estimated net pension costs to be recognized in the Consolidated income statement in 2025 amounts to \u20ac0.2 million, relating to net interest charges. The estimated weighted average duration of the defined benefit obligation is around 13 years.
\n\n\nAll invested assets shown in the table below are quoted.
| \n In \u20ac millions / % | \n \n 2024 | \n \n % | \n \n 2023 | \n \n % | \n
| \n Equities | \n \n 36 | \n \n 21 | \n \n 26 | \n \n 14 | \n
| \n Property and real estate | \n \n 7 | \n \n 4 | \n \n 10 | \n \n 6 | \n
| \n Hedge funds | \n \n 88 | \n \n 51 | \n \n 86 | \n \n 48 | \n
| \n Cash | \n \n 2 | \n \n 1 | \n \n 2 | \n \n 1 | \n
| \n Other1 | \n \n 39 | \n \n 23 | \n \n 56 | \n \n 31 | \n
| \n Total at 31 December | \n \n 172 | \n \n 100 | \n \n 180 | \n \n 100 | \n
| \n 1 Others include alternatives, credit, diversifying and protection strategies, and insured pensions | \n
The principal actuarial assumptions at the reporting dates are:
| \n in % | \n \n 2024 | \n \n 2023 | \n
| \n Discount rate | \n \n 5.45 | \n \n 4.60 | \n
| \n Pension increases | \n \n 1.95-3.50 | \n \n 1.95-3.40 | \n
| \n Retail price index inflation | \n \n 3.30 | \n \n 3.30 | \n
| \n Consumer price index inflation | \n \n 2.30 | \n \n 2.30 | \n
The discount rate is based on yields on UK AA-rated high-quality corporate bonds, with durations comparable to the duration of the pension plan\u2019s liabilities. Based on the assumptions described in this note, these payments have an average duration of 13 years.
Demographic assumptions regarding future mortality are based on published statistics and mortality tables. The current life expectancy underlying the values of the liabilities in the defined benefit plans are as follows:
| \n In years | \n \n 2024 | \n \n 2023 | \n
| \n Male/female currently age 65 | \n \n 21.7/ 24.2 | \n \n 21.7/ 24.2 | \n
| \n Male/female reaching age of 65 in 20 years | \n \n 23.0/ 25.6 | \n \n 23.0/ 25.6 | \n
The calculation of the defined benefit obligation is sensitive to, amongst others, the discount rate, rate of inflation and changes in life expectancy. In 2024, the sensitivity analysis was as follows:
| \n In % / \u20ac millions | \n \n Change in | \n \n Change in | \n
| \n Discount rate | \n \n 0.5% | \n \n 10 | \n
| \n Rate of inflation | \n \n 0.5% | \n \n 5 | \n
| \n Life expectancy | \n \n one-year change | \n \n 6 | \n
The sensitivity analysis as disclosed in the 2023 financial statements was as follows:
| \n In % / \u20ac millions | \n \n Change in | \n \n Change in | \n
| \n Discount rate | \n \n 0.5% | \n \n 10 | \n
| \n Rate of inflation | \n \n 0.5% | \n \n 7 | \n
| \n Life expectancy | \n \n one-year change | \n \n 7 | \n
The Group has agreed that it will aim to eliminate any pension plan deficit within the next nine years. Therefore, funding levels are monitored on an annual basis.
The Company expects \u20ac2 million in contributions to be paid to the plan in 2025. The estimated net pension costs to be recognized in the Consolidated income statement in 2025 amounts to \u20ac1 million, relating to net interest charges. The estimated weighted average duration of the defined benefit obligation is around 13 years.
\n\n\nThere is no local regulation that requires a level of funding of the plan, therefore no assets have been set aside to fund these arrangements.
\n\n\nThe principal actuarial assumptions at the reporting date are:
| \n in % | \n \n 2024 | \n \n 2023 | \n
| \n Discount rate | \n \n 4.70-5.30 | \n \n 4.80-5.20 | \n
| \n Salary increases (expected, per annum) | \n \n 0-3.00 | \n \n 0-3.00 | \n
As there is no deep market in corporate bonds within the Gulf Cooperation Council (GCC) region and the limited number of government bonds available do not provide an adequate reference, the discount rate is based on the US AA-rated corporate bond market as a proxy. The payments have an average duration of three years, which is lower than in previous years due to the strategic decision made in 2020 to reduce the footprint in the Middle East.
Demographic assumptions for mortality, withdrawal, and retirement are used in determining the liability. Because of the nature of the benefit, which is a lump sum payable on exit due to any cause, a combined single decrement rate has been used. The retirement age used for the actuarial valuations is as follows:
| \n In years | \n \n 2024 | \n \n 2023 | \n
| \n Male/female Saudi Arabia | \n \n 60/ 55 | \n \n 60/ 55 | \n
| \n Male/female other countries | \n \n 65/ 65 | \n \n 65/ 65 | \n
The calculation of the liability of AME is sensitive to the discount rate and salary increases. In 2024, the sensitivity analysis was as follows:
| \n In % / \u20ac millions | \n \n Change in | \n \n Change in | \n
| \n Discount rate | \n \n 0.5% | \n \n 0 | \n
| \n Salary increases | \n \n 0.5% | \n \n 0 | \n
The sensitivity analysis as disclosed in the 2023 financial statements was as follows:
| \n In % / \u20ac millions | \n \n Change in | \n \n Change in | \n
| \n Discount rate | \n \n 0.5% | \n \n 0 | \n
| \n Salary increases | \n \n 0.5% | \n \n 0 | \n
The Company does not expect additional service costs and \u20ac0.1 million of interest costs to be recognized in the Consolidated income statement in 2025. The estimated weighted average duration of the defined benefit obligation is around 1 year.
\n\n\nThe other defined benefit pension plans are individually immaterial and mainly relate to France, Germany, the UK and GECs in India and Philippines. No detailed disclosures for these individual plans are provided. For the movement in the balance sheet position of these other defined benefit pension plans in total we refer to the next table.
\n\n\nThe other deferred compensation plans consist of the following balances:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Deferred salaries | \n \n - | \n \n 10 | \n
| \n Future jubilee payments | \n \n 4 | \n \n 4 | \n
| \n Other | \n \n 7 | \n \n 6 | \n
| \n Balance at 31 December | \n \n 11 | \n \n 20 | \n
The movement in the other deferred compensation is as follows:
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Balance at 1 January | \n \n 20 | \n \n 18 | \n
| \n Acquisitions | \n \n - | \n \n - | \n
| \n Additions | \n \n 1 | \n \n 3 | \n
| \n Amounts used/released | \n \n (1) | \n \n (0) | \n
| \n Derecognition | \n \n (10) | \n \n - | \n
| \n Exchange rate differences | \n \n 1 | \n \n (0) | \n
| \n Balance at 31 December | \n \n 11 | \n \n 20 | \n
| \n | \n\n | \n\n | \n
| \n Non-current | \n \n 7 | \n \n 15 | \n
| \n Current | \n \n 4 | \n \n 5 | \n
| \n Balance at 31 December | \n \n 11 | \n \n 20 | \n
The deferred salaries mainly include a plan for deferred compensation of our operating company in the United States. Management of this operating company can elect not to have its salary paid out, but rather invested in a fund by the Company, and is offered a choice of three different portfolio types: risk averse, neutral and risky. The employees participating in the plan bear the investment risk of the plan. In 2024, it was concluded that the Group does not control the fund and accordingly the asset and provisions balance were derecognized. See note 20\u00a0for further details.\u00a0
\n\n\nAn amount of \u20ac4 million is recognized for future jubilee payments based on the current agreements in the collective labor agreements and the related staff levels (2023: \u20ac4 million).
\n\n\nOther deferred compensation includes \u20ac6 million of long service leave provisions in Australia, where employees are entitled to long service leave after a certain number of years of continuous service (2023: \u20ac6 million). The time allowance and conditions of entitlement are set out in legislation and vary by territory. An amount of \u20ac4 million is expected to be paid within one year (2023: \u20ac4 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1977m1507p": { "value": "Most of the pension plans of the Group qualify as defined contribution pension plans. However, the Group also operates a few defined benefit pension plans.
\n\n\nFor defined contribution pension plans, the Group pays fixed contributions into a separate entity, which are charged to profit or loss in the period during which services are provided by employees. The Group\u2019s legal or constructive obligation is limited to the contributions paid into the plans. Prepaid contributions are recognized as an asset to the extent that Arcadis has the unconditional right to cash refunds or reduction in future payments.
\n\n\nSome of the pension plans qualify as defined benefit pension plans. For these plans, the costs are recognized as personnel costs and financing costs in profit or loss. The amount charged to personnel costs is the cost of accruing pension benefits promised to employees over the year, plus the costs of individual events such as past service benefit changes, settlements and curtailments (such events are recognized immediately in profit or loss).
The amount charged to financing costs is the net interest expense calculated by applying the liability discount rate to the net defined benefit liability or asset. Any differences between the expected interest on assets and the return actually achieved, and any changes in the liabilities over the year due to changes in assumptions or experience within the plans, are recognized immediately in profit or loss.
The majority of the defined benefit pension plans are funded with plan assets that have been segregated in a trust or foundation. These plans are subject to regular actuarial review by external actuaries, using the projected unit credit method.
The defined benefit pension plan on the balance sheet comprises the present value of the defined benefit pension obligation and the fair value of plan assets. The present value of the obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds (or suitable alternative where there is no active corporate bond market) that are denominated in the currency in which the benefits will be paid, and with maturity dates approximating to the terms of the related pension obligations.
Remeasurements arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in Other comprehensive income in the period in which they arise. Past-service costs are recognized immediately in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1979m1508p": { "value": "\n\n\n| \n In \u20ac millions | \n \n Restructuring | \n \n Litigation | \n \n Restoration | \n \n Other | \n \n Total | \n
| \n Balance at 1 January 2023 | \n \n 5 | \n \n 35 | \n \n 6 | \n \n 7 | \n \n 53 | \n
| \n Additions | \n \n 11 | \n \n 15 | \n \n 0 | \n \n 1 | \n \n 28 | \n
| \n Amounts used | \n \n (6) | \n \n (6) | \n \n (1) | \n \n (0) | \n \n (13) | \n
| \n Release of unused amounts | \n \n (1) | \n \n (4) | \n \n (0) | \n \n (1) | \n \n (6) | \n
| \n Reclassifications | \n \n - | \n \n - | \n \n 0 | \n \n 0 | \n \n 0 | \n
| \n Exchange rate differences | \n \n (0) | \n \n (0) | \n \n (0) | \n \n 0 | \n \n (0) | \n
| \n Balance at 31 December 2023 | \n \n 10 | \n \n 40 | \n \n 6 | \n \n 7 | \n \n 63 | \n
| \n Additions | \n \n 9 | \n \n 20 | \n \n 1 | \n \n 1 | \n \n 31 | \n
| \n Amounts used | \n \n (7) | \n \n (19) | \n \n (0) | \n \n (0) | \n \n (26) | \n
| \n Release of unused amounts | \n \n (4) | \n \n (4) | \n \n - | \n \n (1) | \n \n (9) | \n
| \n Reclassifications | \n \n (0) | \n \n - | \n \n 0 | \n \n (0) | \n \n (0) | \n
| \n Exchange rate differences | \n \n 0 | \n \n (0) | \n \n 0 | \n \n 0 | \n \n 0 | \n
| \n Balance at 31 December 2024 | \n \n 8 | \n \n 37 | \n \n 7 | \n \n 7 | \n \n 59 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Non-current | \n \n 5 | \n \n 33 | \n \n 6 | \n \n 6 | \n \n 50 | \n
| \n Current | \n \n 3 | \n \n 4 | \n \n 1 | \n \n 1 | \n \n 9 | \n
| \n Balance at 31 December 2024 | \n \n 8 | \n \n 37 | \n \n 7 | \n \n 7 | \n \n 59 | \n
Provisions for restructuring include costs related to certain staff compensation and costs directly related to the existing plans to execute restructurings, mainly in Middle East, DPS, Continental Europe, United Kingdom and CallisonRTKL. A provision is only recognized once the decision to execute said restructuring has been taken, its costs can be reasonably and fairly estimated, and its intended execution has been announced.
Further information ordinarily required by IAS 37 has not been disclosed due to sensitive and confidential information involved.
\n\n\nClients of Arcadis sometimes claim, justified or not, that they are not satisfied with the services provided by the Company. While the outcome of these claims cannot be predicted with certainty, management believes that, based on (external) advisors and information received, the provision of \u20ac37 million (2023: \u20ac40 million) is the best estimate of the potential financial risk, net of insurance coverage. These insurance policies include a global professional liability insurance and in addition, local insurance in a number of countries. In general, these insurance policies have a self- insured retention and a maximum pay-out level.
Outstanding litigation (including the provisions, defense costs and reimbursement coverage) is reviewed periodically and revisions are made when necessary. Since the outcome cannot be predicted with certainty and settlement of claims could take several years, final settlement could differ from this best estimate.
Further information ordinarily required by IAS 37 has not been disclosed on the grounds that it can be expected to seriously prejudice the outcome of the disputes.
\n\n\nFor lease contracts that require the Company to maintain an underlying asset during the lease term and/or restore it to its original condition before returning to the lessor at the end of the lease, a restoration provision is recognized when the obligation arises. For the same amount a right-of-use asset is recognized and depreciated over the lease term. The discount rate used is the Incremental Borrowing Rate.
\n\n\nThe category other provisions include individually immaterial items, and the Company expects that they will be substantively used within one to five years.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1982m1509p": { "value": "Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, a reliable estimate can be made of the amount of the obligation, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are measured at net present value, taking into account the timing of the cash outflows. The discount rate used reflects the current market assessments of the time value of money and the risks specific to the liability. Unwinding of the discount is recognized as a finance expense (see note 11).
The amounts recognized as provisions reflect management\u2019s best estimate of the expenditures required to settle the present obligations at the balance sheet date or to transfer it to a third party at that time.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1986m1510p": { "value": "Interest-bearing debts are measured at amortized cost, in which the difference between the proceeds and repayments over time is charged to profit or loss over their duration. The portion of long-term debt that has to be repaid within one year after the balance sheet date is presented as the current portion of long-term debt under current liabilities.
All other financial liabilities are recognized on the trade date at which the Company becomes a party to the contractual provisions of the instrument. Non-derivative financial liabilities include loans and borrowings, bank overdrafts, trade and other payables. Initially these liabilities are recognized at fair value plus the directly attributable transaction costs. Subsequently these financial liabilities are measured at amortized cost using the effective interest method.
Bank overdrafts that are repayable on demand and that form an integral part of the Group\u2019s cash management are included as a component of cash and cash equivalents for the statement of cash flows.
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future cash flows, discounted at the Company specific market rate of interest at reporting date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1987m1511p": { "value": "\n\n\n| \n In \u20ac millions | \n \n Note | \n \n 2024 | \n \n 2023 | \n
| \n Accounts payable | \n \n | \n\n 300 | \n \n 313 | \n
| \n Accrued expenses | \n \n | \n\n 116 | \n \n 96 | \n
| \n Payables to employees | \n \n | \n\n 216 | \n \n 207 | \n
| \n Taxes and social security contributions | \n \n | \n\n 101 | \n \n 104 | \n
| \n After-payments relating to acquisitions | \n \n 6 | \n \n 1 | \n \n 2 | \n
| \n Other liabilities | \n \n | \n\n 76 | \n \n 79 | \n
| \n Balance at 31 December | \n \n | \n\n 810 | \n \n 801 | \n
Of the total accounts payable approximately 46% is subject to a so-called \u2018paid-when-paid\u2019 clause (2023: 41%). The expectation is that all accounts payable will be paid within the normal course of business and are therefore classified as short-term liabilities. Further information about Arcadis\u2019 exposure to liquidity risk is included in note 31.
Other liabilities include various accrued liabilities, such as to be paid occupancy costs, consultancy costs, insurance costs and interest costs. Any lease incentives (\u2018tenant improvement allowances\u2019) received are part of the right-of-use asset, see note 16.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1989m1512p": { "value": "Other current liabilities are non-derivative financial liabilities, which are initially recognized at fair value plus directly attributable transaction costs. Subsequently these financial liabilities are measured at amortized cost using the effective interest method.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1990m1513p": { "value": "Other current liabilities are non-derivative financial liabilities, which are initially recognized at fair value plus directly attributable transaction costs. Subsequently these financial liabilities are measured at amortized cost using the effective interest method.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1992m1514p": { "value": "| \n In \u20ac millions | \n \n Note | \n \n 2024 | \n \n 2023 | \n
| \n Accounts payable | \n \n | \n\n 300 | \n \n 313 | \n
| \n Accrued expenses | \n \n | \n\n 116 | \n \n 96 | \n
| \n Payables to employees | \n \n | \n\n 216 | \n \n 207 | \n
| \n Taxes and social security contributions | \n \n | \n\n 101 | \n \n 104 | \n
| \n After-payments relating to acquisitions | \n \n 6 | \n \n 1 | \n \n 2 | \n
| \n Other liabilities | \n \n | \n\n 76 | \n \n 79 | \n
| \n Balance at 31 December | \n \n | \n\n 810 | \n \n 801 | \n
Of the total accounts payable approximately 46% is subject to a so-called \u2018paid-when-paid\u2019 clause (2023: 41%). The expectation is that all accounts payable will be paid within the normal course of business and are therefore classified as short-term liabilities. Further information about Arcadis\u2019 exposure to liquidity risk is included in note 31.
Other liabilities include various accrued liabilities, such as to be paid occupancy costs, consultancy costs, insurance costs and interest costs. Any lease incentives (\u2018tenant improvement allowances\u2019) received are part of the right-of-use asset, see note 16.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1993m1515p": { "value": "| \n In \u20ac millions | \n \n Note | \n \n 2024 | \n \n 2023 | \n
| \n Accounts payable | \n \n | \n\n 300 | \n \n 313 | \n
| \n Accrued expenses | \n \n | \n\n 116 | \n \n 96 | \n
| \n Payables to employees | \n \n | \n\n 216 | \n \n 207 | \n
| \n Taxes and social security contributions | \n \n | \n\n 101 | \n \n 104 | \n
| \n After-payments relating to acquisitions | \n \n 6 | \n \n 1 | \n \n 2 | \n
| \n Other liabilities | \n \n | \n\n 76 | \n \n 79 | \n
| \n Balance at 31 December | \n \n | \n\n 810 | \n \n 801 | \n
Of the total accounts payable approximately 46% is subject to a so-called \u2018paid-when-paid\u2019 clause (2023: 41%). The expectation is that all accounts payable will be paid within the normal course of business and are therefore classified as short-term liabilities. Further information about Arcadis\u2019 exposure to liquidity risk is included in note 31.
Other liabilities include various accrued liabilities, such as to be paid occupancy costs, consultancy costs, insurance costs and interest costs. Any lease incentives (\u2018tenant improvement allowances\u2019) received are part of the right-of-use asset, see note 16.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3076m2198p": { "value": "| \n In \u20ac millions | \n \n Note | \n \n 2024 | \n \n 2023 | \n
| \n Accounts payable | \n \n | \n\n 300 | \n \n 313 | \n
| \n Accrued expenses | \n \n | \n\n 116 | \n \n 96 | \n
| \n Payables to employees | \n \n | \n\n 216 | \n \n 207 | \n
| \n Taxes and social security contributions | \n \n | \n\n 101 | \n \n 104 | \n
| \n After-payments relating to acquisitions | \n \n 6 | \n \n 1 | \n \n 2 | \n
| \n Other liabilities | \n \n | \n\n 76 | \n \n 79 | \n
| \n Balance at 31 December | \n \n | \n\n 810 | \n \n 801 | \n
Of the total accounts payable approximately 46% is subject to a so-called \u2018paid-when-paid\u2019 clause (2023: 41%). The expectation is that all accounts payable will be paid within the normal course of business and are therefore classified as short-term liabilities. Further information about Arcadis\u2019 exposure to liquidity risk is included in note 31.
Other liabilities include various accrued liabilities, such as to be paid occupancy costs, consultancy costs, insurance costs and interest costs. Any lease incentives (\u2018tenant improvement allowances\u2019) received are part of the right-of-use asset, see note 16.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3492m1516p": { "value": "\n\n\nArcadis\u2019 activities expose the Group to a variety of financial risks, including (A) credit risks, (B) liquidity risks, and (C) market risks.
These risks are inherent to the way the Group operates as a multinational with locally operating subsidiaries. The Executive Board is responsible for the design and functioning of the internal risk management systems. The day-to-day risk management activities related to the financial risk management are carried out by Arcadis Group Treasury, in line with the guiding principles of the Group Treasury Policy, as updated and approved by the Executive Board.
Arcadis Audit and Risk Committee oversees how management monitors compliance with the Group risk management policies and procedures, and the Arcadis control framework. It also reviews the adequacy of the risk management framework in relation to the risks faced by the Group.
\n\n\nCredit risk arises from receivables from customers as well as cash balances and fair values of derivatives with financial counterparties (e.g. banks). The credit risk on customers is influenced mainly by the individual characteristics of each customer. Arcadis usually invoices clients for services according to the progress of the work. If clients refuse or are unable to meet their contractual payment obligations, the Group may not have sufficient cash to satisfy its liabilities and its growth and continued operations could be adversely impacted.
The key objective of the Group\u2019s counterparty risk management is to minimize the risk of losses as a result of failure of an individual financial counterparty that could negatively impact the Group\u2019s results. Arcadis aims to centralize cash balances with banks that have also provided committed credit facilities to the Group in order to reduce this counterparty risk.
The exposure to credit risk is monitored on an ongoing basis at local entity and at group level. Normally, Arcadis only deals with counterparties that have a sufficiently strong credit rating. Where possible, Arcadis uses credit ratings provided by external credit rating agencies, thus monitoring creditworthiness in order to manage the related credit risk. Furthermore, Arcadis strongly focuses on clients by strengthening the commercial relationship and being more selective to which clients services are offered. Through systematic account management we aim to build long-term relationships with selected multinational and key national/local clients. We already have a relationship with the majority of our multinational clients for more than five years. New customers are analyzed individually for creditworthiness before services are offered and monitored regularly.
The carrying amount of financial assets represents the maximum credit exposure. Per 31 December 2024, the maximum exposure to credit risk was:
| \n In \u20ac millions | \n \n Note | \n \n 2024 | \n \n 2023 | \n
| \n Financial assets: | \n \n | \n\n | \n\n | \n
| \n Trade receivables | \n \n 21 | \n \n 761 | \n \n 731 | \n
| \n Other receivables | \n \n 23 | \n \n 41 | \n \n 39 | \n
| \n Other non-current assets | \n \n 20 | \n \n 9 | \n \n 20 | \n
| \n Derivatives | \n \n 19 | \n \n 10 | \n \n 8 | \n
| \n | \n\n | \n\n 821 | \n \n 799 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n Cash and cash equivalents less bank overdrafts | \n \n 24 | \n \n 375 | \n \n 280 | \n
| \n Balance at 31 December | \n \n | \n\n 1,196 | \n \n 1,078 | \n
Trade receivables are presented net of a provision for expected credit losses. The credit risk is measured and analyzed on a local level at regular intervals, taking into consideration, amongst others, the financial situation of the debtor and ageing of receivables. Expected losses are determined in line with IFRS 9, see note 21.
The ageing of Trade receivables and the provision for Trade receivables at reporting date is disclosed below and in note 21. The ageing of receivables has led to the recognition of (expected) credit losses and calibration of assumptions as included in the Goodwill impairment test.
The movement schedule for the provision for Trade receivables is included in note 21.
There are various reasons for delays in payments that result in past due amounts and that impact Days Sales Outstanding (DSO). Arcadis has overdue receivables which are generally considered collectible and for which the risk of impairment is remote.
Amounts due at 31 December 2024 subject to the \u2018paid-when-paid principle\u2019 are disclosed in note 21. Further details on how Arcadis uses this principle to manage working capital is disclosed in the section on liquidity risk.
\n\n\nOther receivables and Other non-current assets are monitored for expected credit losses. They do not contain impaired assets and are not past due.
\n\n\nLoans to associates and joint ventures are subject to credit risk. At 31 December 2024, no material loans to associates were outstanding.
\n\n\nThe credit risk of Cash and cash equivalents is the risk that counterparties are not able to repay amounts owed to Arcadis upon request of Arcadis. The objective of the Group is to minimize credit risk exposure in Cash and cash equivalents by investing in liquid securities and entering into transactions involving derivative financial instruments only with counterparties that have sound credit ratings, a good reputation and belong to the group of Core banks which also provide committed credit facilities. The related risk is monitored on an ongoing basis both at local entity and group level. The Group keeps approximately 67% (2023: 62%) of its cash reserves at our Core banks and is only allowed to invest in short-term, liquid securities with counterparties that have an investment grade rating from Standard & Poor\u2019s, Moody\u2019s or Fitch. Management monitors these ratings and does not expect any such counterparty to fail to meet its obligations in the short-term. No Expected Credit Losses are recognized on the cash and cash equivalents.
\n\n\nOn behalf of the Group and local entities, financial institutions (such as banks and insurance companies) have provided bank guarantees, surety bonds and letters of credit amounting to \u20ac157 million outstanding as at 31 December 2024 (2023: \u20ac150 million). In addition, Arcadis N.V. has provided financial guarantees to banks and financial institutions for a maximum amount of \u20ac163 million (2023: \u20ac160 million). No Expected Credit Losses are recognized from these guarantees.
\n\n\nLiquidity risk is the risk that Arcadis will not be able to meet its financial obligations as they fall due. The primary objective of liquidity management is providing for sufficient committed credit facilities and cash and cash equivalents to enable Arcadis to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Arcadis. Our Group Treasury Policy supports this principle by stating that the minimal liquidity at any given point in time should always exceed \u20ac200 million.
Neither the aged (un)billed receivables of individual customers, nor the profile of the accounts receivable portfolio, impose a significant threat to the Group\u2019s liquidity planning.
Over the course of the year, fluctuations occur in the working capital needed to finance operations. The Group strives to have a good liquidity position at all times, strictly controlling working capital by optimizing billing and collection and consequently maintaining a healthy (average) net debt to (Operating) EBITDA ratio.
To manage working capital, but only if legally allowed and commercially possible, Arcadis agrees with part of its sub-contractors so-called \u2018paid-when-paid\u2019 clauses. This means that Arcadis is in such instances better able to match the cash inflows from debtors with the related cash outflows to suppliers, as the timing of the payment of the supplier is dependent on the collection of the receivable from a client. This could however be impacted by contractual clauses and/or local laws and regulations that limit the maximum extension of payment terms to a moment before Arcadis gets paid by its client. In case of non-payment by the debtor, Arcadis still has to fulfil its obligations towards the supplier under a \u2018paid-when-paid\u2019 clause. Accounts payable at 31 December 2024 subject to the \u2018paid-when-paid principle\u2019 are disclosed in note 30. The expectation is that all accounts payable will be paid within the normal course of business and are therefore classified as short-term liabilities.
\n\n\nThe Company maintains the lines of credit as summarized in the table below.
| \n In millions | \n \n | \n\n 31 December 2024 | \n \n | \n\n 31 December 2023 | \n ||||||||
| \n Type | \n \n Interest/fees | \n \n Available | \n \n | \n\n Utilized | \n \n | \n\n Available | \n \n | \n\n Utilized | \n ||||
| \n | \n\n | \n\n CAD | \n \n EUR | \n \n | \n\n CAD | \n \n EUR | \n \n | \n\n CAD | \n \n EUR | \n \n | \n\n CAD | \n \n EUR | \n
| \n Revolving Credit Facility | \n \n EURIBOR | \n \n | \n\n 600 | \n \n | \n\n | \n\n - | \n \n | \n\n | \n\n 600 | \n \n | \n\n | \n\n - | \n
| \n Debentures IBI | \n \n 6.5% | \n \n - | \n \n - | \n \n | \n\n - | \n \n - | \n \n | \n\n 30 | \n \n 20 | \n \n | \n\n 30 | \n \n 20 | \n
| \n Senior unsecured notes | \n \n 4.875% | \n \n | \n\n 500 | \n \n | \n\n | \n\n 500 | \n \n | \n\n | \n\n 500 | \n \n | \n\n | \n\n 500 | \n
| \n Uncommitted multi-currency facilities | \n \n Floating | \n \n | \n\n 142 | \n \n | \n\n | \n\n - | \n \n | \n\n | \n\n 120 | \n \n | \n\n | \n\n - | \n
| \n Schuldschein notes | \n \n Fixed/floating | \n \n | \n\n 358 | \n \n | \n\n | \n\n 358 | \n \n | \n\n | \n\n 358 | \n \n | \n\n | \n\n 358 | \n
| \n Guarantee facility | \n \n 0.30% - 0.65% | \n \n | \n\n 101 | \n \n | \n\n | \n\n 54 | \n \n | \n\n | \n\n 76 | \n \n | \n\n | \n\n 48 | \n
| \n Other (loans) | \n \n Various | \n \n | \n\n 19 | \n \n | \n\n | \n\n 1 | \n \n | \n\n | \n\n 20 | \n \n | \n\n | \n\n 3 | \n
| \n Other (bank guarantees and surety bonds) | \n \n Various | \n \n | \n\n 107 | \n \n | \n\n | \n\n 102 | \n \n | \n\n | \n\n 196 | \n \n | \n\n | \n\n 146 | \n
A description and analysis of the credit lines listed above and its movements compared to last year is provided in note 29.
\n\n\nThe following tables describe our commitments and contractual obligations for the following five years and thereafter. The other long-term debt obligations are the debt service obligations.
No collateral has been pledged for liabilities or contingent liabilities.
| \n In \u20ac millions | \n \n Total | \n \n < 1 year | \n \n 1 \u2011 3 years | \n \n 4 \u2011 5 years | \n \n > 5 years | \n
| \n Contractual obligations at 31 December 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Guarantees on behalf of associates | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Off balance sheet lease commitments | \n \n 2 | \n \n 2 | \n \n - | \n \n - | \n \n - | \n
| \n Foreign exchange contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (1,089) | \n \n (1,089) | \n \n | \n\n | \n\n | \n
| \n Inflow | \n \n 1,093 | \n \n 1,093 | \n \n | \n\n | \n\n | \n
| \n Interest rate swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (192) | \n \n (105) | \n \n (87) | \n \n - | \n \n - | \n
| \n Inflow | \n \n 192 | \n \n 105 | \n \n 87 | \n \n - | \n \n - | \n
| \n Cross Currency swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n - | \n \n - | \n \n | \n\n | \n\n | \n
| \n Inflow | \n \n - | \n \n - | \n \n | \n\n | \n\n | \n
| \n Deferred consideration | \n \n 1 | \n \n 1 | \n \n - | \n \n - | \n \n - | \n
| \n Interest | \n \n 124 | \n \n 39 | \n \n 61 | \n \n 24 | \n \n - | \n
| \n Lease obligations | \n \n 297 | \n \n 72 | \n \n 107 | \n \n 63 | \n \n 55 | \n
| \n Loans and borrowings | \n \n 859 | \n \n 81 | \n \n 778 | \n \n - | \n \n - | \n
| \n Short-term bank debt | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Accounts payable | \n \n 300 | \n \n 300 | \n \n - | \n \n - | \n \n - | \n
| \n Total | \n \n 1,587 | \n \n 499 | \n \n 946 | \n \n 87 | \n \n 55 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Contractual obligations at 31 December 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Guarantees on behalf of associates | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Off balance sheet lease commitments | \n \n 4 | \n \n 4 | \n \n - | \n \n - | \n \n - | \n
| \n Foreign exchange contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (678) | \n \n (678) | \n \n - | \n \n - | \n \n - | \n
| \n Inflow | \n \n 683 | \n \n 683 | \n \n - | \n \n - | \n \n - | \n
| \n Interest rate swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (199) | \n \n (7) | \n \n (192) | \n \n - | \n \n - | \n
| \n Inflow | \n \n 199 | \n \n 7 | \n \n 192 | \n \n - | \n \n - | \n
| \n Cross Currency swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Inflow | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Deferred consideration | \n \n 2 | \n \n 2 | \n \n - | \n \n - | \n \n - | \n
| \n Interest | \n \n 172 | \n \n 42 | \n \n 80 | \n \n 50 | \n \n - | \n
| \n Lease obligations | \n \n 316 | \n \n 73 | \n \n 105 | \n \n 70 | \n \n 68 | \n
| \n Loans and borrowings | \n \n 879 | \n \n - | \n \n 379 | \n \n 500 | \n \n - | \n
| \n Short-term bank debt | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Accounts payable | \n \n 313 | \n \n 313 | \n \n - | \n \n - | \n \n - | \n
| \n Total | \n \n 1,691 | \n \n 439 | \n \n 564 | \n \n 620 | \n \n 68 | \n
Market risk includes currency risk (C1) and interest rate risk (C2) and comprises the risk that changes in market prices, such as foreign exchange rates and interest rates will affect Arcadis\u2019 income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters set by the Group Treasury policy.\t
\n\n\nThe key objective of the Group foreign exchange transaction exposure management is aimed at the active management of foreign exchange exposures by Group Treasury to reduce and limit the adverse effects of exchange rate changes on the Group\u2019s profitability.
\n\n\nThe subsidiaries of Arcadis mainly operate in local markets, and as such both sales invoices and purchase invoices are mainly denominated in local currencies. In some instances, however, invoices are in the functional currency of the counterparty, which results in a currency exposure for the subsidiary. The exposure to foreign exchange risk on sales and costs denominated in another currency than the respective functional currencies of the subsidiaries is very limited. Only in limited cases, e.g., for material transactions, the subsidiaries of Arcadis enter into forward foreign exchange contracts with Group Treasury in order to hedge these transaction risks.
Borrowings are denominated in currencies that partly match the cash flows generated by the underlying operations of the Group, primarily Euro and US dollar.
Arcadis group companies can have positions in foreign currencies which are different than their respective functional currencies. For the main currencies the following positions per currency (translated in euros) are the cumulative gross exposures of non-functional currencies of all Arcadis group companies combined.
| \n In \u20ac millions | \n \n in EUR | \n \n in USD | \n \n in GBP | \n \n in CNY | \n \n in BRL | \n \n in AED | \n \n in CAD | \n \n in AUD | \n
| \n At 31 December 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Trade receivables | \n \n 5 | \n \n 84 | \n \n 43 | \n \n 1 | \n \n 14 | \n \n 3 | \n \n 25 | \n \n 18 | \n
| \n Cash and cash equivalents | \n \n 4 | \n \n 49 | \n \n 1 | \n \n - | \n \n 1 | \n \n 0 | \n \n 2 | \n \n 10 | \n
| \n Derivatives | \n \n - | \n \n 148 | \n \n 39 | \n \n (1) | \n \n (13) | \n \n (15) | \n \n (141) | \n \n 97 | \n
| \n Loans and borrowings | \n \n - | \n \n (160) | \n \n (28) | \n \n - | \n \n (0) | \n \n 8 | \n \n 136 | \n \n (105) | \n
| \n Accounts payable | \n \n (4) | \n \n (108) | \n \n (61) | \n \n (0) | \n \n (1) | \n \n (1) | \n \n (25) | \n \n (16) | \n
| \n Balance exposure | \n \n 5 | \n \n 13 | \n \n (6) | \n \n (0) | \n \n 1 | \n \n (5) | \n \n (3) | \n \n 4 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n At 31 December 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Trade receivables | \n \n 1 | \n \n 56 | \n \n 23 | \n \n 10 | \n \n 20 | \n \n 4 | \n \n 5 | \n \n 4 | \n
| \n Cash and cash equivalents | \n \n 4 | \n \n 8 | \n \n 0 | \n \n 0 | \n \n - | \n \n 0 | \n \n 1 | \n \n 1 | \n
| \n Derivatives | \n \n - | \n \n 73 | \n \n 30 | \n \n (9) | \n \n (0) | \n \n (16) | \n \n (84) | \n \n 121 | \n
| \n Loans and borrowings | \n \n - | \n \n (65) | \n \n (54) | \n \n (1) | \n \n - | \n \n 9 | \n \n 81 | \n \n (121) | \n
| \n Accounts payable | \n \n (1) | \n \n (65) | \n \n (3) | \n \n (0) | \n \n (20) | \n \n (0) | \n \n (3) | \n \n (1) | \n
| \n Balance exposure | \n \n 5 | \n \n 7 | \n \n (4) | \n \n 1 | \n \n 0 | \n \n (3) | \n \n 0 | \n \n 4 | \n
The below exchange rates were applied in the year.
| \n | \n\n | \n\n 2024 | \n \n | \n\n 2023 | \n
| \n In \u20ac | \n \n Average | \n \n Year-end | \n \n Average | \n \n Year-end | \n
| \n US Dollar (USD) | \n \n 0.92 | \n \n 0.97 | \n \n 0.92 | \n \n 0.91 | \n
| \n Pound Sterling (GBP) | \n \n 1.18 | \n \n 1.21 | \n \n 1.15 | \n \n 1.15 | \n
| \n Australian Dollar (AUD) | \n \n 0.61 | \n \n 0.60 | \n \n 0.61 | \n \n 0.62 | \n
| \n Chinese Yuan Renminbi (CNY) | \n \n 0.13 | \n \n 0.13 | \n \n 0.13 | \n \n 0.13 | \n
| \n Canadian Dollar (CAD) | \n \n 0.67 | \n \n 0.67 | \n \n 0.69 | \n \n 0.68 | \n
| \n Brazilian Real (BRL) | \n \n 0.17 | \n \n 0.16 | \n \n 0.19 | \n \n 0.19 | \n
| \n United Arab Emirates Dirham (AED) | \n \n 0.25 | \n \n 0.26 | \n \n 0.25 | \n \n 0.25 | \n
Arcadis uses derivative financial instruments in order to manage market risks associated with changes in foreign exchange rates as well as interest rates. All transactions are carried out in accordance with the Group Treasury policy. The Group seeks to apply hedge accounting where possible to manage volatility in profit or loss. All foreign exchange forward transactions outstanding at year-end are due to mature in 2025.
\n\n\nForeign currency sensitivity analyses are performed by applying an expected possible volatility of a currency, assuming all other variables, in particular interest rates, remain constant. All monetary assets and liabilities of the Group at year-end are revalued, which results in a hypothetical impact on net income and equity as summarized below.
| \n | \n\n | \n\n 2024 | \n \n | \n\n 2023 | \n
| \n In \u20ac millions | \n \n Impact on net income | \n \n Impact on equity | \n \n Impact on net income | \n \n Impact on equity | \n
| \n 10% change euro against the US dollar | \n \n 20 | \n \n 77 | \n \n 19 | \n \n 60 | \n
| \n 10% change euro against the Pound Sterling | \n \n 10 | \n \n 45 | \n \n 11 | \n \n 43 | \n
| \n 10% change euro against the Australian Dollar | \n \n 4 | \n \n 19 | \n \n 4 | \n \n 18 | \n
| \n 10% change euro against the Canadian Dollar | \n \n 5 | \n \n 10 | \n \n 1 | \n \n 7 | \n
All material balance sheet positions have been hedged with foreign exchange contracts. The translation risk relating to subsidiaries with a functional currency other than the Group reporting currency of Euro are not hedged, in accordance with the Group Treasury policy.
\n\n\nThe Group manages interest rate risks by financing fixed assets and part of current assets with shareholders\u2019 equity and long-term debt. The remainder of current assets is financed with short-term debt including revolving bank debt with variable interest rates. Based on the interest risk profile, financial instruments were outstanding during the year to cover part of the interest rate risk on long-term borrowings. This risk is applicable to long-term debt, short-term debt and bank overdrafts in the Consolidated balance sheet amounting to \u20ac853 million at year-end 2024 (2023: \u20ac881 million). The decrease versus last year is driven by the early repayment of the IBI debentures (\u20ac21 million) and lower bank overdraft (\u20ac10 million).
The Group arranged for two floating-to-fixed interest rate swaps for the \u20ac185 million floating interest rate Schuldschein loan that was issued in July 2023. One swap (\u20ac100 million) will mature in January 2025; the other swap (\u20ac85 million) will mature in January 2026.
Further information can be found in Note 19.
The Group Treasury Policy states that the fixed portion of net debt should be at least 40% to protect against increases in interest rates as well as providing some certainty on expectations for interest expense in profit or loss. As of December 2024, this minimum fixed portion of 40% was applicable.
\n\n\nInterest rate sensitivity analyses are performed by applying an expected possible volatility of interest rates, assuming all other variables remain constant. All interest-bearing liabilities of the Group at year-end are revalued, which results in a hypothetical impact on the pre-tax profit for the year and equity as summarized below.
| \n | \n\n | \n\n 2024 | \n \n | \n\n 2023 | \n
| \n In \u20ac millions | \n \n Impact of pre-tax profit for the year | \n \n Impact on equity | \n \n Impact of pre-tax profit for the year | \n \n Impact on equity | \n
| \n Ten basis-points change to interest rate | \n \n (0.2) | \n \n (0.2) | \n \n 0.1 | \n \n 0.1 | \n
Arcadis\u2019 objectives when managing capital are to safeguard Arcadis\u2019 ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure that optimizes its cost of capital and allows for sufficient flexibility towards the execution of Arcadis\u2019 strategy.
The Group sets the amount of capital in proportion to its risk appetite. The Group manages the capital structure and makes adjustments to it based on changes in economic conditions and the risk characteristics of the underlying assets. The capital structure can be altered by adjusting the amount of dividends paid to shareholders, return capital to shareholders, or issue new debt or shares. From time to time, Arcadis purchases its own shares, which are used as volume hedges for the transfer of shares under Arcadis\u2019 long-term incentive plans and to off-set the dilutive effect of scrip dividends.
Consistent with the financial covenants agreed with the banks, the Group monitors capital on the basis of the average Net debt to (Operating) EBITDA ratio. This ratio is calculated as the average interest- bearing debt minus cash and cash equivalents divided by (Operating) EBITDA. EBITDA is calculated as earnings before interest, tax, depreciation and amortization.
To obtain access to the debt capital markets, the Group obtained an investment grade credit rating of BBB- (Stable outlook) from Standard & Poor\u2019s. The Group and its subsidiaries are not subject to external capital requirements, other than financial covenants under the credit documentation of its committed credit facilities, as disclosed in the notes to these financial statements.
During 2024, Arcadis\u2019 strategic goal on financing, which was unchanged from 2023, was to maintain a Net debt to (Operating) EBITDA ratio between 1.5x and 2.5x in order to secure access to finance at a reasonable cost.
\n\n\nThe financial covenant set under the contracts of the committed credit facilities that are applicable to Arcadis includes a Total Leverage ratio. The Total Leverage ratio for the \u20ac600 million Revolving Credit Facility and the Schuldschein loans issued in 2020 has a maximum of 3.5x.
For the Revolving Credit Facility, the Applicable Rating of the Rating Agency (S&P) prevails over the average net debt to EBITDA ratio in case of a rating of at least BBB or Baa2, which is the case at year-end.
The Total Leverage ratio for the Schuldschein loans issued in 2023, which is based on Operating EBITDA, has a maximum of 3.5x.
Both ratios are included in the next tables.
| \n In \u20ac millions | \n \n Note | \n \n 31 December 2024 | \n \n 31 December 2023 | \n
| \n Long-term loans and borrowings | \n \n 29 | \n \n 772 | \n \n 871 | \n
| \n Current portion of loans and borrowings | \n \n 29 | \n \n 81 | \n \n - | \n
| \n Lease liabilities | \n \n 16 | \n \n 192 | \n \n 211 | \n
| \n Current portion of lease liabilities | \n \n 16 | \n \n 70 | \n \n 70 | \n
| \n Bank overdrafts | \n \n 24 | \n \n 1 | \n \n 10 | \n
| \n Total debt | \n \n | \n\n 1,116 | \n \n 1,163 | \n
| \n Less: cash and cash equivalents | \n \n 24 | \n \n (376) | \n \n (290) | \n
| \n Net debt | \n \n | \n\n 739 | \n \n 873 | \n
| \n EBITDA according to debt covenants1 | \n \n | \n\n 541 | \n \n 463 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n Adjusted Operating EBITDA according to debt covenants2 | \n \n | \n\n 568 | \n \n 511 | \n
| \n | \n\n | \n\n 2024 | \n \n 2023 | \n
| \n Average net debt to EBITDA ratio according to debt covenants RCF and 2020 Schuldschein (Total Leverage Ratio) | \n \n 1.6 | \n \n 2.2 | \n |
| \n Average net debt to adjusted Operating EBITDA ratio according to debt covenants for 2023 Schuldschein and Eurobond | \n \n 1.5 | \n \n 2.0 | \n
The ratios as disclosed above are calculated based on the definitions as agreed with and aligned between the different providers of committed credit facilities. The calculation of the average Net debt to (Operating) EBITDA ratio is based on the average net debt of Q2 and Q4. Throughout 2024, Arcadis complied with all financial and non-financial covenants.
\n\n\nThe fair values of financial assets and liabilities together with the carrying amounts recognized in the Consolidated balance sheet, are as follows:
| \n | \n\n | \n\n | \n\n Carrying value per IFRS 9 category | \n \n | \n\n | \n||
| \n In \u20ac millions | \n \n Carrying amount | \n \n Out of Scope | \n \n Amortized cost | \n \n Fair value through | \n \n Fair value through Other comprehensive income | \n \n Total | \n \n Fair value | \n
| \n At 31 December 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Investments in associates and joint ventures | \n \n 11 | \n \n 11 | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Other investments | \n \n 4 | \n \n - | \n \n - | \n \n 4 | \n \n - | \n \n 4 | \n \n 4 | \n
| \n Other non-current assets | \n \n 9 | \n \n - | \n \n 9 | \n \n - | \n \n - | \n \n 9 | \n \n 9 | \n
| \n Trade receivables | \n \n 759 | \n \n - | \n \n 759 | \n \n - | \n \n - | \n \n 759 | \n \n 759 | \n
| \n Derivatives | \n \n 10 | \n \n - | \n \n - | \n \n 9 | \n \n 1 | \n \n 10 | \n \n 10 | \n
| \n Cash and cash equivalents | \n \n 376 | \n \n - | \n \n 376 | \n \n - | \n \n - | \n \n 376 | \n \n 376 | \n
| \n Total Financial assets | \n \n 1,169 | \n \n 11 | \n \n 1,144 | \n \n 13 | \n \n 1 | \n \n 1,158 | \n \n 1,158 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Loans and borrowings: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Non-current | \n \n 772 | \n \n - | \n \n 772 | \n \n - | \n \n - | \n \n 772 | \n \n 781 | \n
| \n Current | \n \n 81 | \n \n - | \n \n 81 | \n \n - | \n \n - | \n \n 81 | \n \n 81 | \n
| \n Derivatives | \n \n 9 | \n \n - | \n \n - | \n \n 9 | \n \n - | \n \n 9 | \n \n 9 | \n
| \n Accounts payable | \n \n 300 | \n \n - | \n \n 300 | \n \n - | \n \n - | \n \n 300 | \n \n 300 | \n
| \n Lease liabilities | \n \n 262 | \n \n - | \n \n 262 | \n \n - | \n \n - | \n \n 262 | \n \n 262 | \n
| \n Deferred consideration | \n \n 1 | \n \n - | \n \n - | \n \n 1 | \n \n - | \n \n 1 | \n \n 1 | \n
| \n Bank overdrafts and short-term bank debts | \n \n 1 | \n \n - | \n \n 1 | \n \n - | \n \n - | \n \n 1 | \n \n 1 | \n
| \n Total Financial liabilities | \n \n 1,426 | \n \n - | \n \n 1,416 | \n \n 10 | \n \n - | \n \n 1,426 | \n \n 1,435 | \n
| \n | \n\n | \n\n | \n\n Carrying value per IFRS 9 category | \n \n | \n\n | \n||
| \n In \u20ac millions | \n \n Carrying amount | \n \n Out of Scope | \n \n Amortized cost | \n \n Fair value through | \n \n Fair value through Other comprehensive income | \n \n Total | \n \n Fair value | \n
| \n At 31 December 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Investments in associates and joint ventures | \n \n 11 | \n \n 11 | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Other investments | \n \n 4 | \n \n - | \n \n - | \n \n 4 | \n \n - | \n \n 4 | \n \n 4 | \n
| \n Other non-current assets | \n \n 20 | \n \n - | \n \n 20 | \n \n - | \n \n - | \n \n 20 | \n \n 20 | \n
| \n Trade receivables | \n \n 729 | \n \n - | \n \n 729 | \n \n - | \n \n - | \n \n 729 | \n \n 729 | \n
| \n Derivatives | \n \n 8 | \n \n - | \n \n - | \n \n 10 | \n \n (2) | \n \n 8 | \n \n 8 | \n
| \n Cash and cash equivalents | \n \n 290 | \n \n - | \n \n 290 | \n \n - | \n \n - | \n \n 290 | \n \n 290 | \n
| \n Total Financial assets | \n \n 1,063 | \n \n 11 | \n \n 1,039 | \n \n 14 | \n \n (2) | \n \n 1,051 | \n \n 1,051 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Loans and borrowings: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Non-current | \n \n 871 | \n \n - | \n \n 871 | \n \n - | \n \n - | \n \n 871 | \n \n 875 | \n
| \n Current | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Derivatives | \n \n 11 | \n \n - | \n \n - | \n \n 11 | \n \n - | \n \n 11 | \n \n 11 | \n
| \n Accounts payable | \n \n 313 | \n \n - | \n \n 313 | \n \n - | \n \n - | \n \n 313 | \n \n 313 | \n
| \n Lease liabilities | \n \n 281 | \n \n - | \n \n 281 | \n \n - | \n \n - | \n \n 281 | \n \n 281 | \n
| \n Deferred consideration | \n \n 2 | \n \n - | \n \n - | \n \n 2 | \n \n - | \n \n 2 | \n \n 2 | \n
| \n Bank overdrafts and short-term bank debts | \n \n 10 | \n \n - | \n \n 10 | \n \n - | \n \n - | \n \n 10 | \n \n 10 | \n
| \n Total Financial liabilities | \n \n 1,489 | \n \n - | \n \n 1,475 | \n \n 14 | \n \n - | \n \n 1,489 | \n \n 1,492 | \n
The financial instruments carried at fair value are analyzed by valuation method, using the following levels:\t
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;\t
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs).
All financial instruments carried at fair value within the Group are categorized in Level 2, except for the other investment in Techstars and the deferred consideration whereby a Level 3 valuation has been used (see note 18).
The fair value of foreign exchange forward rate contracts is based on quoted market prices at the balance sheet date, being the present value of the quoted forward price. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the term and maturity of the contract, using market interest rates.
The fair value of interest rate swaps is calculated by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at measurement date. These calculations are tested for reasonableness by comparing them with bank valuations.
The fair value of loans and receivables is based on the present value of future principal and interest cash flows, discounted at the Group specific market rate of interest at reporting date. For financial leases the market rate of interest is determined by reference to similar lease agreements.
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at reporting date. Due to the short-term character of the receivables, the fair value equals the carrying value.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3015m2168p": { "value": "\n\n\nCredit risk arises from receivables from customers as well as cash balances and fair values of derivatives with financial counterparties (e.g. banks). The credit risk on customers is influenced mainly by the individual characteristics of each customer. Arcadis usually invoices clients for services according to the progress of the work. If clients refuse or are unable to meet their contractual payment obligations, the Group may not have sufficient cash to satisfy its liabilities and its growth and continued operations could be adversely impacted.
The key objective of the Group\u2019s counterparty risk management is to minimize the risk of losses as a result of failure of an individual financial counterparty that could negatively impact the Group\u2019s results. Arcadis aims to centralize cash balances with banks that have also provided committed credit facilities to the Group in order to reduce this counterparty risk.
The exposure to credit risk is monitored on an ongoing basis at local entity and at group level. Normally, Arcadis only deals with counterparties that have a sufficiently strong credit rating. Where possible, Arcadis uses credit ratings provided by external credit rating agencies, thus monitoring creditworthiness in order to manage the related credit risk. Furthermore, Arcadis strongly focuses on clients by strengthening the commercial relationship and being more selective to which clients services are offered. Through systematic account management we aim to build long-term relationships with selected multinational and key national/local clients. We already have a relationship with the majority of our multinational clients for more than five years. New customers are analyzed individually for creditworthiness before services are offered and monitored regularly.
The carrying amount of financial assets represents the maximum credit exposure. Per 31 December 2024, the maximum exposure to credit risk was:
| \n In \u20ac millions | \n \n Note | \n \n 2024 | \n \n 2023 | \n
| \n Financial assets: | \n \n | \n\n | \n\n | \n
| \n Trade receivables | \n \n 21 | \n \n 761 | \n \n 731 | \n
| \n Other receivables | \n \n 23 | \n \n 41 | \n \n 39 | \n
| \n Other non-current assets | \n \n 20 | \n \n 9 | \n \n 20 | \n
| \n Derivatives | \n \n 19 | \n \n 10 | \n \n 8 | \n
| \n | \n\n | \n\n 821 | \n \n 799 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n Cash and cash equivalents less bank overdrafts | \n \n 24 | \n \n 375 | \n \n 280 | \n
| \n Balance at 31 December | \n \n | \n\n 1,196 | \n \n 1,078 | \n
Trade receivables are presented net of a provision for expected credit losses. The credit risk is measured and analyzed on a local level at regular intervals, taking into consideration, amongst others, the financial situation of the debtor and ageing of receivables. Expected losses are determined in line with IFRS 9, see note 21.
The ageing of Trade receivables and the provision for Trade receivables at reporting date is disclosed below and in note 21. The ageing of receivables has led to the recognition of (expected) credit losses and calibration of assumptions as included in the Goodwill impairment test.
The movement schedule for the provision for Trade receivables is included in note 21.
There are various reasons for delays in payments that result in past due amounts and that impact Days Sales Outstanding (DSO). Arcadis has overdue receivables which are generally considered collectible and for which the risk of impairment is remote.
Amounts due at 31 December 2024 subject to the \u2018paid-when-paid principle\u2019 are disclosed in note 21. Further details on how Arcadis uses this principle to manage working capital is disclosed in the section on liquidity risk.
\n\n\nOther receivables and Other non-current assets are monitored for expected credit losses. They do not contain impaired assets and are not past due.
\n\n\nLoans to associates and joint ventures are subject to credit risk. At 31 December 2024, no material loans to associates were outstanding.
\n\n\nThe credit risk of Cash and cash equivalents is the risk that counterparties are not able to repay amounts owed to Arcadis upon request of Arcadis. The objective of the Group is to minimize credit risk exposure in Cash and cash equivalents by investing in liquid securities and entering into transactions involving derivative financial instruments only with counterparties that have sound credit ratings, a good reputation and belong to the group of Core banks which also provide committed credit facilities. The related risk is monitored on an ongoing basis both at local entity and group level. The Group keeps approximately 67% (2023: 62%) of its cash reserves at our Core banks and is only allowed to invest in short-term, liquid securities with counterparties that have an investment grade rating from Standard & Poor\u2019s, Moody\u2019s or Fitch. Management monitors these ratings and does not expect any such counterparty to fail to meet its obligations in the short-term. No Expected Credit Losses are recognized on the cash and cash equivalents.
\n\n\nOn behalf of the Group and local entities, financial institutions (such as banks and insurance companies) have provided bank guarantees, surety bonds and letters of credit amounting to \u20ac157 million outstanding as at 31 December 2024 (2023: \u20ac150 million). In addition, Arcadis N.V. has provided financial guarantees to banks and financial institutions for a maximum amount of \u20ac163 million (2023: \u20ac160 million). No Expected Credit Losses are recognized from these guarantees.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1997m1517p": { "value": "\n\n\nLiquidity risk is the risk that Arcadis will not be able to meet its financial obligations as they fall due. The primary objective of liquidity management is providing for sufficient committed credit facilities and cash and cash equivalents to enable Arcadis to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Arcadis. Our Group Treasury Policy supports this principle by stating that the minimal liquidity at any given point in time should always exceed \u20ac200 million.
Neither the aged (un)billed receivables of individual customers, nor the profile of the accounts receivable portfolio, impose a significant threat to the Group\u2019s liquidity planning.
Over the course of the year, fluctuations occur in the working capital needed to finance operations. The Group strives to have a good liquidity position at all times, strictly controlling working capital by optimizing billing and collection and consequently maintaining a healthy (average) net debt to (Operating) EBITDA ratio.
To manage working capital, but only if legally allowed and commercially possible, Arcadis agrees with part of its sub-contractors so-called \u2018paid-when-paid\u2019 clauses. This means that Arcadis is in such instances better able to match the cash inflows from debtors with the related cash outflows to suppliers, as the timing of the payment of the supplier is dependent on the collection of the receivable from a client. This could however be impacted by contractual clauses and/or local laws and regulations that limit the maximum extension of payment terms to a moment before Arcadis gets paid by its client. In case of non-payment by the debtor, Arcadis still has to fulfil its obligations towards the supplier under a \u2018paid-when-paid\u2019 clause. Accounts payable at 31 December 2024 subject to the \u2018paid-when-paid principle\u2019 are disclosed in note 30. The expectation is that all accounts payable will be paid within the normal course of business and are therefore classified as short-term liabilities.
\n\n\nThe Company maintains the lines of credit as summarized in the table below.
| \n In millions | \n \n | \n\n 31 December 2024 | \n \n | \n\n 31 December 2023 | \n ||||||||
| \n Type | \n \n Interest/fees | \n \n Available | \n \n | \n\n Utilized | \n \n | \n\n Available | \n \n | \n\n Utilized | \n ||||
| \n | \n\n | \n\n CAD | \n \n EUR | \n \n | \n\n CAD | \n \n EUR | \n \n | \n\n CAD | \n \n EUR | \n \n | \n\n CAD | \n \n EUR | \n
| \n Revolving Credit Facility | \n \n EURIBOR | \n \n | \n\n 600 | \n \n | \n\n | \n\n - | \n \n | \n\n | \n\n 600 | \n \n | \n\n | \n\n - | \n
| \n Debentures IBI | \n \n 6.5% | \n \n - | \n \n - | \n \n | \n\n - | \n \n - | \n \n | \n\n 30 | \n \n 20 | \n \n | \n\n 30 | \n \n 20 | \n
| \n Senior unsecured notes | \n \n 4.875% | \n \n | \n\n 500 | \n \n | \n\n | \n\n 500 | \n \n | \n\n | \n\n 500 | \n \n | \n\n | \n\n 500 | \n
| \n Uncommitted multi-currency facilities | \n \n Floating | \n \n | \n\n 142 | \n \n | \n\n | \n\n - | \n \n | \n\n | \n\n 120 | \n \n | \n\n | \n\n - | \n
| \n Schuldschein notes | \n \n Fixed/floating | \n \n | \n\n 358 | \n \n | \n\n | \n\n 358 | \n \n | \n\n | \n\n 358 | \n \n | \n\n | \n\n 358 | \n
| \n Guarantee facility | \n \n 0.30% - 0.65% | \n \n | \n\n 101 | \n \n | \n\n | \n\n 54 | \n \n | \n\n | \n\n 76 | \n \n | \n\n | \n\n 48 | \n
| \n Other (loans) | \n \n Various | \n \n | \n\n 19 | \n \n | \n\n | \n\n 1 | \n \n | \n\n | \n\n 20 | \n \n | \n\n | \n\n 3 | \n
| \n Other (bank guarantees and surety bonds) | \n \n Various | \n \n | \n\n 107 | \n \n | \n\n | \n\n 102 | \n \n | \n\n | \n\n 196 | \n \n | \n\n | \n\n 146 | \n
A description and analysis of the credit lines listed above and its movements compared to last year is provided in note 29.
\n\n\nThe following tables describe our commitments and contractual obligations for the following five years and thereafter. The other long-term debt obligations are the debt service obligations.
No collateral has been pledged for liabilities or contingent liabilities.
| \n In \u20ac millions | \n \n Total | \n \n < 1 year | \n \n 1 \u2011 3 years | \n \n 4 \u2011 5 years | \n \n > 5 years | \n
| \n Contractual obligations at 31 December 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Guarantees on behalf of associates | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Off balance sheet lease commitments | \n \n 2 | \n \n 2 | \n \n - | \n \n - | \n \n - | \n
| \n Foreign exchange contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (1,089) | \n \n (1,089) | \n \n | \n\n | \n\n | \n
| \n Inflow | \n \n 1,093 | \n \n 1,093 | \n \n | \n\n | \n\n | \n
| \n Interest rate swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (192) | \n \n (105) | \n \n (87) | \n \n - | \n \n - | \n
| \n Inflow | \n \n 192 | \n \n 105 | \n \n 87 | \n \n - | \n \n - | \n
| \n Cross Currency swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n - | \n \n - | \n \n | \n\n | \n\n | \n
| \n Inflow | \n \n - | \n \n - | \n \n | \n\n | \n\n | \n
| \n Deferred consideration | \n \n 1 | \n \n 1 | \n \n - | \n \n - | \n \n - | \n
| \n Interest | \n \n 124 | \n \n 39 | \n \n 61 | \n \n 24 | \n \n - | \n
| \n Lease obligations | \n \n 297 | \n \n 72 | \n \n 107 | \n \n 63 | \n \n 55 | \n
| \n Loans and borrowings | \n \n 859 | \n \n 81 | \n \n 778 | \n \n - | \n \n - | \n
| \n Short-term bank debt | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Accounts payable | \n \n 300 | \n \n 300 | \n \n - | \n \n - | \n \n - | \n
| \n Total | \n \n 1,587 | \n \n 499 | \n \n 946 | \n \n 87 | \n \n 55 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Contractual obligations at 31 December 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Guarantees on behalf of associates | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Off balance sheet lease commitments | \n \n 4 | \n \n 4 | \n \n - | \n \n - | \n \n - | \n
| \n Foreign exchange contracts: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (678) | \n \n (678) | \n \n - | \n \n - | \n \n - | \n
| \n Inflow | \n \n 683 | \n \n 683 | \n \n - | \n \n - | \n \n - | \n
| \n Interest rate swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n (199) | \n \n (7) | \n \n (192) | \n \n - | \n \n - | \n
| \n Inflow | \n \n 199 | \n \n 7 | \n \n 192 | \n \n - | \n \n - | \n
| \n Cross Currency swaps: | \n \n | \n\n | \n\n | \n\n | \n\n | \n
| \n Outflow | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Inflow | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Deferred consideration | \n \n 2 | \n \n 2 | \n \n - | \n \n - | \n \n - | \n
| \n Interest | \n \n 172 | \n \n 42 | \n \n 80 | \n \n 50 | \n \n - | \n
| \n Lease obligations | \n \n 316 | \n \n 73 | \n \n 105 | \n \n 70 | \n \n 68 | \n
| \n Loans and borrowings | \n \n 879 | \n \n - | \n \n 379 | \n \n 500 | \n \n - | \n
| \n Short-term bank debt | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Accounts payable | \n \n 313 | \n \n 313 | \n \n - | \n \n - | \n \n - | \n
| \n Total | \n \n 1,691 | \n \n 439 | \n \n 564 | \n \n 620 | \n \n 68 | \n
No collateral has been pledged for liabilities or contingent liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f1998m1518p": { "value": "\n\n\nMarket risk includes currency risk (C1) and interest rate risk (C2) and comprises the risk that changes in market prices, such as foreign exchange rates and interest rates will affect Arcadis\u2019 income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters set by the Group Treasury policy.\t
\n\n\nThe key objective of the Group foreign exchange transaction exposure management is aimed at the active management of foreign exchange exposures by Group Treasury to reduce and limit the adverse effects of exchange rate changes on the Group\u2019s profitability.
\n\n\nThe subsidiaries of Arcadis mainly operate in local markets, and as such both sales invoices and purchase invoices are mainly denominated in local currencies. In some instances, however, invoices are in the functional currency of the counterparty, which results in a currency exposure for the subsidiary. The exposure to foreign exchange risk on sales and costs denominated in another currency than the respective functional currencies of the subsidiaries is very limited. Only in limited cases, e.g., for material transactions, the subsidiaries of Arcadis enter into forward foreign exchange contracts with Group Treasury in order to hedge these transaction risks.
Borrowings are denominated in currencies that partly match the cash flows generated by the underlying operations of the Group, primarily Euro and US dollar.
Arcadis group companies can have positions in foreign currencies which are different than their respective functional currencies. For the main currencies the following positions per currency (translated in euros) are the cumulative gross exposures of non-functional currencies of all Arcadis group companies combined.
| \n In \u20ac millions | \n \n in EUR | \n \n in USD | \n \n in GBP | \n \n in CNY | \n \n in BRL | \n \n in AED | \n \n in CAD | \n \n in AUD | \n
| \n At 31 December 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Trade receivables | \n \n 5 | \n \n 84 | \n \n 43 | \n \n 1 | \n \n 14 | \n \n 3 | \n \n 25 | \n \n 18 | \n
| \n Cash and cash equivalents | \n \n 4 | \n \n 49 | \n \n 1 | \n \n - | \n \n 1 | \n \n 0 | \n \n 2 | \n \n 10 | \n
| \n Derivatives | \n \n - | \n \n 148 | \n \n 39 | \n \n (1) | \n \n (13) | \n \n (15) | \n \n (141) | \n \n 97 | \n
| \n Loans and borrowings | \n \n - | \n \n (160) | \n \n (28) | \n \n - | \n \n (0) | \n \n 8 | \n \n 136 | \n \n (105) | \n
| \n Accounts payable | \n \n (4) | \n \n (108) | \n \n (61) | \n \n (0) | \n \n (1) | \n \n (1) | \n \n (25) | \n \n (16) | \n
| \n Balance exposure | \n \n 5 | \n \n 13 | \n \n (6) | \n \n (0) | \n \n 1 | \n \n (5) | \n \n (3) | \n \n 4 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n At 31 December 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Trade receivables | \n \n 1 | \n \n 56 | \n \n 23 | \n \n 10 | \n \n 20 | \n \n 4 | \n \n 5 | \n \n 4 | \n
| \n Cash and cash equivalents | \n \n 4 | \n \n 8 | \n \n 0 | \n \n 0 | \n \n - | \n \n 0 | \n \n 1 | \n \n 1 | \n
| \n Derivatives | \n \n - | \n \n 73 | \n \n 30 | \n \n (9) | \n \n (0) | \n \n (16) | \n \n (84) | \n \n 121 | \n
| \n Loans and borrowings | \n \n - | \n \n (65) | \n \n (54) | \n \n (1) | \n \n - | \n \n 9 | \n \n 81 | \n \n (121) | \n
| \n Accounts payable | \n \n (1) | \n \n (65) | \n \n (3) | \n \n (0) | \n \n (20) | \n \n (0) | \n \n (3) | \n \n (1) | \n
| \n Balance exposure | \n \n 5 | \n \n 7 | \n \n (4) | \n \n 1 | \n \n 0 | \n \n (3) | \n \n 0 | \n \n 4 | \n
The below exchange rates were applied in the year.
| \n | \n\n | \n\n 2024 | \n \n | \n\n 2023 | \n
| \n In \u20ac | \n \n Average | \n \n Year-end | \n \n Average | \n \n Year-end | \n
| \n US Dollar (USD) | \n \n 0.92 | \n \n 0.97 | \n \n 0.92 | \n \n 0.91 | \n
| \n Pound Sterling (GBP) | \n \n 1.18 | \n \n 1.21 | \n \n 1.15 | \n \n 1.15 | \n
| \n Australian Dollar (AUD) | \n \n 0.61 | \n \n 0.60 | \n \n 0.61 | \n \n 0.62 | \n
| \n Chinese Yuan Renminbi (CNY) | \n \n 0.13 | \n \n 0.13 | \n \n 0.13 | \n \n 0.13 | \n
| \n Canadian Dollar (CAD) | \n \n 0.67 | \n \n 0.67 | \n \n 0.69 | \n \n 0.68 | \n
| \n Brazilian Real (BRL) | \n \n 0.17 | \n \n 0.16 | \n \n 0.19 | \n \n 0.19 | \n
| \n United Arab Emirates Dirham (AED) | \n \n 0.25 | \n \n 0.26 | \n \n 0.25 | \n \n 0.25 | \n
Arcadis uses derivative financial instruments in order to manage market risks associated with changes in foreign exchange rates as well as interest rates. All transactions are carried out in accordance with the Group Treasury policy. The Group seeks to apply hedge accounting where possible to manage volatility in profit or loss. All foreign exchange forward transactions outstanding at year-end are due to mature in 2025.
\n\n\nForeign currency sensitivity analyses are performed by applying an expected possible volatility of a currency, assuming all other variables, in particular interest rates, remain constant. All monetary assets and liabilities of the Group at year-end are revalued, which results in a hypothetical impact on net income and equity as summarized below.
| \n | \n\n | \n\n 2024 | \n \n | \n\n 2023 | \n
| \n In \u20ac millions | \n \n Impact on net income | \n \n Impact on equity | \n \n Impact on net income | \n \n Impact on equity | \n
| \n 10% change euro against the US dollar | \n \n 20 | \n \n 77 | \n \n 19 | \n \n 60 | \n
| \n 10% change euro against the Pound Sterling | \n \n 10 | \n \n 45 | \n \n 11 | \n \n 43 | \n
| \n 10% change euro against the Australian Dollar | \n \n 4 | \n \n 19 | \n \n 4 | \n \n 18 | \n
| \n 10% change euro against the Canadian Dollar | \n \n 5 | \n \n 10 | \n \n 1 | \n \n 7 | \n
All material balance sheet positions have been hedged with foreign exchange contracts. The translation risk relating to subsidiaries with a functional currency other than the Group reporting currency of Euro are not hedged, in accordance with the Group Treasury policy.
\n\n\nThe Group manages interest rate risks by financing fixed assets and part of current assets with shareholders\u2019 equity and long-term debt. The remainder of current assets is financed with short-term debt including revolving bank debt with variable interest rates. Based on the interest risk profile, financial instruments were outstanding during the year to cover part of the interest rate risk on long-term borrowings. This risk is applicable to long-term debt, short-term debt and bank overdrafts in the Consolidated balance sheet amounting to \u20ac853 million at year-end 2024 (2023: \u20ac881 million). The decrease versus last year is driven by the early repayment of the IBI debentures (\u20ac21 million) and lower bank overdraft (\u20ac10 million).
The Group arranged for two floating-to-fixed interest rate swaps for the \u20ac185 million floating interest rate Schuldschein loan that was issued in July 2023. One swap (\u20ac100 million) will mature in January 2025; the other swap (\u20ac85 million) will mature in January 2026.
Further information can be found in Note 19.
The Group Treasury Policy states that the fixed portion of net debt should be at least 40% to protect against increases in interest rates as well as providing some certainty on expectations for interest expense in profit or loss. As of December 2024, this minimum fixed portion of 40% was applicable.
\n\n\nInterest rate sensitivity analyses are performed by applying an expected possible volatility of interest rates, assuming all other variables remain constant. All interest-bearing liabilities of the Group at year-end are revalued, which results in a hypothetical impact on the pre-tax profit for the year and equity as summarized below.
| \n | \n\n | \n\n 2024 | \n \n | \n\n 2023 | \n
| \n In \u20ac millions | \n \n Impact of pre-tax profit for the year | \n \n Impact on equity | \n \n Impact of pre-tax profit for the year | \n \n Impact on equity | \n
| \n Ten basis-points change to interest rate | \n \n (0.2) | \n \n (0.2) | \n \n 0.1 | \n \n 0.1 | \n
The key objective of the Group foreign exchange transaction exposure management is aimed at the active management of foreign exchange exposures by Group Treasury to reduce and limit the adverse effects of exchange rate changes on the Group\u2019s profitability.
\n\n\nThe subsidiaries of Arcadis mainly operate in local markets, and as such both sales invoices and purchase invoices are mainly denominated in local currencies. In some instances, however, invoices are in the functional currency of the counterparty, which results in a currency exposure for the subsidiary. The exposure to foreign exchange risk on sales and costs denominated in another currency than the respective functional currencies of the subsidiaries is very limited. Only in limited cases, e.g., for material transactions, the subsidiaries of Arcadis enter into forward foreign exchange contracts with Group Treasury in order to hedge these transaction risks.
Borrowings are denominated in currencies that partly match the cash flows generated by the underlying operations of the Group, primarily Euro and US dollar.
Arcadis group companies can have positions in foreign currencies which are different than their respective functional currencies. For the main currencies the following positions per currency (translated in euros) are the cumulative gross exposures of non-functional currencies of all Arcadis group companies combined.
| \n In \u20ac millions | \n \n in EUR | \n \n in USD | \n \n in GBP | \n \n in CNY | \n \n in BRL | \n \n in AED | \n \n in CAD | \n \n in AUD | \n
| \n At 31 December 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Trade receivables | \n \n 5 | \n \n 84 | \n \n 43 | \n \n 1 | \n \n 14 | \n \n 3 | \n \n 25 | \n \n 18 | \n
| \n Cash and cash equivalents | \n \n 4 | \n \n 49 | \n \n 1 | \n \n - | \n \n 1 | \n \n 0 | \n \n 2 | \n \n 10 | \n
| \n Derivatives | \n \n - | \n \n 148 | \n \n 39 | \n \n (1) | \n \n (13) | \n \n (15) | \n \n (141) | \n \n 97 | \n
| \n Loans and borrowings | \n \n - | \n \n (160) | \n \n (28) | \n \n - | \n \n (0) | \n \n 8 | \n \n 136 | \n \n (105) | \n
| \n Accounts payable | \n \n (4) | \n \n (108) | \n \n (61) | \n \n (0) | \n \n (1) | \n \n (1) | \n \n (25) | \n \n (16) | \n
| \n Balance exposure | \n \n 5 | \n \n 13 | \n \n (6) | \n \n (0) | \n \n 1 | \n \n (5) | \n \n (3) | \n \n 4 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n At 31 December 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Trade receivables | \n \n 1 | \n \n 56 | \n \n 23 | \n \n 10 | \n \n 20 | \n \n 4 | \n \n 5 | \n \n 4 | \n
| \n Cash and cash equivalents | \n \n 4 | \n \n 8 | \n \n 0 | \n \n 0 | \n \n - | \n \n 0 | \n \n 1 | \n \n 1 | \n
| \n Derivatives | \n \n - | \n \n 73 | \n \n 30 | \n \n (9) | \n \n (0) | \n \n (16) | \n \n (84) | \n \n 121 | \n
| \n Loans and borrowings | \n \n - | \n \n (65) | \n \n (54) | \n \n (1) | \n \n - | \n \n 9 | \n \n 81 | \n \n (121) | \n
| \n Accounts payable | \n \n (1) | \n \n (65) | \n \n (3) | \n \n (0) | \n \n (20) | \n \n (0) | \n \n (3) | \n \n (1) | \n
| \n Balance exposure | \n \n 5 | \n \n 7 | \n \n (4) | \n \n 1 | \n \n 0 | \n \n (3) | \n \n 0 | \n \n 4 | \n
The below exchange rates were applied in the year.
| \n | \n\n | \n\n 2024 | \n \n | \n\n 2023 | \n
| \n In \u20ac | \n \n Average | \n \n Year-end | \n \n Average | \n \n Year-end | \n
| \n US Dollar (USD) | \n \n 0.92 | \n \n 0.97 | \n \n 0.92 | \n \n 0.91 | \n
| \n Pound Sterling (GBP) | \n \n 1.18 | \n \n 1.21 | \n \n 1.15 | \n \n 1.15 | \n
| \n Australian Dollar (AUD) | \n \n 0.61 | \n \n 0.60 | \n \n 0.61 | \n \n 0.62 | \n
| \n Chinese Yuan Renminbi (CNY) | \n \n 0.13 | \n \n 0.13 | \n \n 0.13 | \n \n 0.13 | \n
| \n Canadian Dollar (CAD) | \n \n 0.67 | \n \n 0.67 | \n \n 0.69 | \n \n 0.68 | \n
| \n Brazilian Real (BRL) | \n \n 0.17 | \n \n 0.16 | \n \n 0.19 | \n \n 0.19 | \n
| \n United Arab Emirates Dirham (AED) | \n \n 0.25 | \n \n 0.26 | \n \n 0.25 | \n \n 0.25 | \n
Arcadis uses derivative financial instruments in order to manage market risks associated with changes in foreign exchange rates as well as interest rates. All transactions are carried out in accordance with the Group Treasury policy. The Group seeks to apply hedge accounting where possible to manage volatility in profit or loss. All foreign exchange forward transactions outstanding at year-end are due to mature in 2025.
\n\n\nForeign currency sensitivity analyses are performed by applying an expected possible volatility of a currency, assuming all other variables, in particular interest rates, remain constant. All monetary assets and liabilities of the Group at year-end are revalued, which results in a hypothetical impact on net income and equity as summarized below.
| \n | \n\n | \n\n 2024 | \n \n | \n\n 2023 | \n
| \n In \u20ac millions | \n \n Impact on net income | \n \n Impact on equity | \n \n Impact on net income | \n \n Impact on equity | \n
| \n 10% change euro against the US dollar | \n \n 20 | \n \n 77 | \n \n 19 | \n \n 60 | \n
| \n 10% change euro against the Pound Sterling | \n \n 10 | \n \n 45 | \n \n 11 | \n \n 43 | \n
| \n 10% change euro against the Australian Dollar | \n \n 4 | \n \n 19 | \n \n 4 | \n \n 18 | \n
| \n 10% change euro against the Canadian Dollar | \n \n 5 | \n \n 10 | \n \n 1 | \n \n 7 | \n
All material balance sheet positions have been hedged with foreign exchange contracts. The translation risk relating to subsidiaries with a functional currency other than the Group reporting currency of Euro are not hedged, in accordance with the Group Treasury policy.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f2000m1520p": { "value": "\n\n\nArcadis\u2019 objectives when managing capital are to safeguard Arcadis\u2019 ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure that optimizes its cost of capital and allows for sufficient flexibility towards the execution of Arcadis\u2019 strategy.
The Group sets the amount of capital in proportion to its risk appetite. The Group manages the capital structure and makes adjustments to it based on changes in economic conditions and the risk characteristics of the underlying assets. The capital structure can be altered by adjusting the amount of dividends paid to shareholders, return capital to shareholders, or issue new debt or shares. From time to time, Arcadis purchases its own shares, which are used as volume hedges for the transfer of shares under Arcadis\u2019 long-term incentive plans and to off-set the dilutive effect of scrip dividends.
Consistent with the financial covenants agreed with the banks, the Group monitors capital on the basis of the average Net debt to (Operating) EBITDA ratio. This ratio is calculated as the average interest- bearing debt minus cash and cash equivalents divided by (Operating) EBITDA. EBITDA is calculated as earnings before interest, tax, depreciation and amortization.
To obtain access to the debt capital markets, the Group obtained an investment grade credit rating of BBB- (Stable outlook) from Standard & Poor\u2019s. The Group and its subsidiaries are not subject to external capital requirements, other than financial covenants under the credit documentation of its committed credit facilities, as disclosed in the notes to these financial statements.
During 2024, Arcadis\u2019 strategic goal on financing, which was unchanged from 2023, was to maintain a Net debt to (Operating) EBITDA ratio between 1.5x and 2.5x in order to secure access to finance at a reasonable cost.
\n\n\nThe financial covenant set under the contracts of the committed credit facilities that are applicable to Arcadis includes a Total Leverage ratio. The Total Leverage ratio for the \u20ac600 million Revolving Credit Facility and the Schuldschein loans issued in 2020 has a maximum of 3.5x.
For the Revolving Credit Facility, the Applicable Rating of the Rating Agency (S&P) prevails over the average net debt to EBITDA ratio in case of a rating of at least BBB or Baa2, which is the case at year-end.
The Total Leverage ratio for the Schuldschein loans issued in 2023, which is based on Operating EBITDA, has a maximum of 3.5x.
Both ratios are included in the next tables.
| \n In \u20ac millions | \n \n Note | \n \n 31 December 2024 | \n \n 31 December 2023 | \n
| \n Long-term loans and borrowings | \n \n 29 | \n \n 772 | \n \n 871 | \n
| \n Current portion of loans and borrowings | \n \n 29 | \n \n 81 | \n \n - | \n
| \n Lease liabilities | \n \n 16 | \n \n 192 | \n \n 211 | \n
| \n Current portion of lease liabilities | \n \n 16 | \n \n 70 | \n \n 70 | \n
| \n Bank overdrafts | \n \n 24 | \n \n 1 | \n \n 10 | \n
| \n Total debt | \n \n | \n\n 1,116 | \n \n 1,163 | \n
| \n Less: cash and cash equivalents | \n \n 24 | \n \n (376) | \n \n (290) | \n
| \n Net debt | \n \n | \n\n 739 | \n \n 873 | \n
| \n EBITDA according to debt covenants1 | \n \n | \n\n 541 | \n \n 463 | \n
| \n | \n\n | \n\n | \n\n | \n
| \n Adjusted Operating EBITDA according to debt covenants2 | \n \n | \n\n 568 | \n \n 511 | \n
| \n | \n\n | \n\n 2024 | \n \n 2023 | \n
| \n Average net debt to EBITDA ratio according to debt covenants RCF and 2020 Schuldschein (Total Leverage Ratio) | \n \n 1.6 | \n \n 2.2 | \n |
| \n Average net debt to adjusted Operating EBITDA ratio according to debt covenants for 2023 Schuldschein and Eurobond | \n \n 1.5 | \n \n 2.0 | \n
The ratios as disclosed above are calculated based on the definitions as agreed with and aligned between the different providers of committed credit facilities. The calculation of the average Net debt to (Operating) EBITDA ratio is based on the average net debt of Q2 and Q4. Throughout 2024, Arcadis complied with all financial and non-financial covenants.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f2001m1521p": { "value": "\n\n\nThe fair values of financial assets and liabilities together with the carrying amounts recognized in the Consolidated balance sheet, are as follows:
| \n | \n\n | \n\n | \n\n Carrying value per IFRS 9 category | \n \n | \n\n | \n||
| \n In \u20ac millions | \n \n Carrying amount | \n \n Out of Scope | \n \n Amortized cost | \n \n Fair value through | \n \n Fair value through Other comprehensive income | \n \n Total | \n \n Fair value | \n
| \n At 31 December 2024 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Investments in associates and joint ventures | \n \n 11 | \n \n 11 | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Other investments | \n \n 4 | \n \n - | \n \n - | \n \n 4 | \n \n - | \n \n 4 | \n \n 4 | \n
| \n Other non-current assets | \n \n 9 | \n \n - | \n \n 9 | \n \n - | \n \n - | \n \n 9 | \n \n 9 | \n
| \n Trade receivables | \n \n 759 | \n \n - | \n \n 759 | \n \n - | \n \n - | \n \n 759 | \n \n 759 | \n
| \n Derivatives | \n \n 10 | \n \n - | \n \n - | \n \n 9 | \n \n 1 | \n \n 10 | \n \n 10 | \n
| \n Cash and cash equivalents | \n \n 376 | \n \n - | \n \n 376 | \n \n - | \n \n - | \n \n 376 | \n \n 376 | \n
| \n Total Financial assets | \n \n 1,169 | \n \n 11 | \n \n 1,144 | \n \n 13 | \n \n 1 | \n \n 1,158 | \n \n 1,158 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Loans and borrowings: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Non-current | \n \n 772 | \n \n - | \n \n 772 | \n \n - | \n \n - | \n \n 772 | \n \n 781 | \n
| \n Current | \n \n 81 | \n \n - | \n \n 81 | \n \n - | \n \n - | \n \n 81 | \n \n 81 | \n
| \n Derivatives | \n \n 9 | \n \n - | \n \n - | \n \n 9 | \n \n - | \n \n 9 | \n \n 9 | \n
| \n Accounts payable | \n \n 300 | \n \n - | \n \n 300 | \n \n - | \n \n - | \n \n 300 | \n \n 300 | \n
| \n Lease liabilities | \n \n 262 | \n \n - | \n \n 262 | \n \n - | \n \n - | \n \n 262 | \n \n 262 | \n
| \n Deferred consideration | \n \n 1 | \n \n - | \n \n - | \n \n 1 | \n \n - | \n \n 1 | \n \n 1 | \n
| \n Bank overdrafts and short-term bank debts | \n \n 1 | \n \n - | \n \n 1 | \n \n - | \n \n - | \n \n 1 | \n \n 1 | \n
| \n Total Financial liabilities | \n \n 1,426 | \n \n - | \n \n 1,416 | \n \n 10 | \n \n - | \n \n 1,426 | \n \n 1,435 | \n
| \n | \n\n | \n\n | \n\n Carrying value per IFRS 9 category | \n \n | \n\n | \n||
| \n In \u20ac millions | \n \n Carrying amount | \n \n Out of Scope | \n \n Amortized cost | \n \n Fair value through | \n \n Fair value through Other comprehensive income | \n \n Total | \n \n Fair value | \n
| \n At 31 December 2023 | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Investments in associates and joint ventures | \n \n 11 | \n \n 11 | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Other investments | \n \n 4 | \n \n - | \n \n - | \n \n 4 | \n \n - | \n \n 4 | \n \n 4 | \n
| \n Other non-current assets | \n \n 20 | \n \n - | \n \n 20 | \n \n - | \n \n - | \n \n 20 | \n \n 20 | \n
| \n Trade receivables | \n \n 729 | \n \n - | \n \n 729 | \n \n - | \n \n - | \n \n 729 | \n \n 729 | \n
| \n Derivatives | \n \n 8 | \n \n - | \n \n - | \n \n 10 | \n \n (2) | \n \n 8 | \n \n 8 | \n
| \n Cash and cash equivalents | \n \n 290 | \n \n - | \n \n 290 | \n \n - | \n \n - | \n \n 290 | \n \n 290 | \n
| \n Total Financial assets | \n \n 1,063 | \n \n 11 | \n \n 1,039 | \n \n 14 | \n \n (2) | \n \n 1,051 | \n \n 1,051 | \n
| \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Loans and borrowings: | \n \n | \n\n | \n\n | \n\n | \n\n | \n\n | \n\n | \n
| \n Non-current | \n \n 871 | \n \n - | \n \n 871 | \n \n - | \n \n - | \n \n 871 | \n \n 875 | \n
| \n Current | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Derivatives | \n \n 11 | \n \n - | \n \n - | \n \n 11 | \n \n - | \n \n 11 | \n \n 11 | \n
| \n Accounts payable | \n \n 313 | \n \n - | \n \n 313 | \n \n - | \n \n - | \n \n 313 | \n \n 313 | \n
| \n Lease liabilities | \n \n 281 | \n \n - | \n \n 281 | \n \n - | \n \n - | \n \n 281 | \n \n 281 | \n
| \n Deferred consideration | \n \n 2 | \n \n - | \n \n - | \n \n 2 | \n \n - | \n \n 2 | \n \n 2 | \n
| \n Bank overdrafts and short-term bank debts | \n \n 10 | \n \n - | \n \n 10 | \n \n - | \n \n - | \n \n 10 | \n \n 10 | \n
| \n Total Financial liabilities | \n \n 1,489 | \n \n - | \n \n 1,475 | \n \n 14 | \n \n - | \n \n 1,489 | \n \n 1,492 | \n
The financial instruments carried at fair value are analyzed by valuation method, using the following levels:\t
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;\t
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs).
All financial instruments carried at fair value within the Group are categorized in Level 2, except for the other investment in Techstars and the deferred consideration whereby a Level 3 valuation has been used (see note 18).
The fair value of foreign exchange forward rate contracts is based on quoted market prices at the balance sheet date, being the present value of the quoted forward price. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the term and maturity of the contract, using market interest rates.
The fair value of interest rate swaps is calculated by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at measurement date. These calculations are tested for reasonableness by comparing them with bank valuations.
The fair value of loans and receivables is based on the present value of future principal and interest cash flows, discounted at the Group specific market rate of interest at reporting date. For financial leases the market rate of interest is determined by reference to similar lease agreements.
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at reporting date. Due to the short-term character of the receivables, the fair value equals the carrying value.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f2002m1522p": { "value": "\n\n\n| \n In \u20ac millions | \n \n 31 December 2024 | \n \n 31 December 2023 | \n
| \n Short-term leases | \n \n 1 | \n \n 1 | \n
| \n Low-value leases | \n \n 1 | \n \n 3 | \n
| \n Total committed off-balance leases | \n \n 2 | \n \n 4 | \n
| \n In \u20ac millions | \n \n 31 December 2024 | \n \n 31 December 2023 | \n
| \n Bank guarantees | \n \n 157 | \n \n 150 | \n
| \n Corporate guarantees | \n \n 163 | \n \n 160 | \n
| \n Eliminations | \n \n (99) | \n \n (110) | \n
| \n Guarantees | \n \n 221 | \n \n 200 | \n
| \n Leases | \n \n 2 | \n \n 4 | \n
| \n Other commitments1 | \n \n 163 | \n \n 132 | \n
| \n Total | \n \n 386 | \n \n 336 | \n
The Group\u2019s lease arrangements mainly relate to contracts for leased cars, building and other (IT) equipment. These leases have varying terms, termination clauses and renewal rights. For leased assets the Group has recognized right-of-use assets and lease liabilities as at 31 December 2024, except for short-term and/or low-value leases. The lease expense recognized in profit or loss of 2024 relating to short-term and/or low-value leases amounted to \u20ac7 million (2023: \u20ac9 million).
See note 16 for further information on leases.
\n\n\nArcadis has issued corporate guarantees as security for credit facilities, bank guarantee facilities and surety bond lines. Guarantees or guarantee-like items issued by a financial intermediary (such as bank guarantees and surety bonds) can be issued in relation to projects, advances received, tender bonds or lease commitments to avoid cash deposits. Bank guarantees or surety bonds issued for project performance can be claimed by clients where Arcadis fails to deliver in line with the agreed contract. In such cases, the liability of the bank should be no greater than the original liability on Arcadis. Where the failure to perform arose due to an error or omission by Arcadis, the claim could be covered by the professional indemnity insurance cover.
The tables below summarize the outstanding corporate and bank guarantees. They reflect only items that have been drawn or utilized that are not already shown on the balance sheet.
| \n In \u20ac millions | \n \n Corporate Guarantees | \n \n Bank | \n \n Eliminations1 | \n \n Total | \n
| \n Debt facility financing | \n \n 3 | \n \n - | \n \n - | \n \n 3 | \n
| \n Bank guarantee and surety bond financing | \n \n 114 | \n \n 157 | \n \n (75) | \n \n 196 | \n
| \n Other | \n \n 46 | \n \n | \n\n (24) | \n \n 22 | \n
| \n Balance at 31 December 2024 | \n \n 163 | \n \n 157 | \n \n (99) | \n \n 221 | \n
| \n In \u20ac millions | \n \n Corporate Guarantees | \n \n Bank | \n \n Eliminations1 | \n \n Total | \n
| \n Debt facility financing | \n \n 4 | \n \n - | \n \n - | \n \n 4 | \n
| \n Bank guarantee and surety bond financing | \n \n 117 | \n \n 150 | \n \n (70) | \n \n 197 | \n
| \n Other | \n \n 40 | \n \n - | \n \n (40) | \n \n - | \n
| \n Balance at 31 December 2023 | \n \n 160 | \n \n 150 | \n \n (110) | \n \n 200 | \n
The vast majority of outstanding bank guarantees and surety bonds relates to the commercial performance on projects (e.g. Performance guarantees, Tender bonds, Warranty bonds or Advance payment guarantees) and rental guarantees. On 31 December 2024 and throughout the year, the vast majority of the outstanding bank guarantees and surety bonds posed an immaterial and insignificant risk to Arcadis.
On 31 December 2024, only a part of the local bank guarantee facilities and local debt facilities have been used.
\n\n\nThe other commitments amount to \u20ac163 million (2023: \u20ac132 million) and include the service part of several long-term global IT service contracts, which runs for a remaining period of one to three years.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f2003m1523p": { "value": "\n\n\n| \n In \u20ac millions | \n \n 31 December 2024 | \n \n 31 December 2023 | \n
| \n Short-term leases | \n \n 1 | \n \n 1 | \n
| \n Low-value leases | \n \n 1 | \n \n 3 | \n
| \n Total committed off-balance leases | \n \n 2 | \n \n 4 | \n
| \n In \u20ac millions | \n \n 31 December 2024 | \n \n 31 December 2023 | \n
| \n Bank guarantees | \n \n 157 | \n \n 150 | \n
| \n Corporate guarantees | \n \n 163 | \n \n 160 | \n
| \n Eliminations | \n \n (99) | \n \n (110) | \n
| \n Guarantees | \n \n 221 | \n \n 200 | \n
| \n Leases | \n \n 2 | \n \n 4 | \n
| \n Other commitments1 | \n \n 163 | \n \n 132 | \n
| \n Total | \n \n 386 | \n \n 336 | \n
The Group\u2019s lease arrangements mainly relate to contracts for leased cars, building and other (IT) equipment. These leases have varying terms, termination clauses and renewal rights. For leased assets the Group has recognized right-of-use assets and lease liabilities as at 31 December 2024, except for short-term and/or low-value leases. The lease expense recognized in profit or loss of 2024 relating to short-term and/or low-value leases amounted to \u20ac7 million (2023: \u20ac9 million).
See note 16 for further information on leases.
\n\n\nArcadis has issued corporate guarantees as security for credit facilities, bank guarantee facilities and surety bond lines. Guarantees or guarantee-like items issued by a financial intermediary (such as bank guarantees and surety bonds) can be issued in relation to projects, advances received, tender bonds or lease commitments to avoid cash deposits. Bank guarantees or surety bonds issued for project performance can be claimed by clients where Arcadis fails to deliver in line with the agreed contract. In such cases, the liability of the bank should be no greater than the original liability on Arcadis. Where the failure to perform arose due to an error or omission by Arcadis, the claim could be covered by the professional indemnity insurance cover.
The tables below summarize the outstanding corporate and bank guarantees. They reflect only items that have been drawn or utilized that are not already shown on the balance sheet.
| \n In \u20ac millions | \n \n Corporate Guarantees | \n \n Bank | \n \n Eliminations1 | \n \n Total | \n
| \n Debt facility financing | \n \n 3 | \n \n - | \n \n - | \n \n 3 | \n
| \n Bank guarantee and surety bond financing | \n \n 114 | \n \n 157 | \n \n (75) | \n \n 196 | \n
| \n Other | \n \n 46 | \n \n | \n\n (24) | \n \n 22 | \n
| \n Balance at 31 December 2024 | \n \n 163 | \n \n 157 | \n \n (99) | \n \n 221 | \n
| \n In \u20ac millions | \n \n Corporate Guarantees | \n \n Bank | \n \n Eliminations1 | \n \n Total | \n
| \n Debt facility financing | \n \n 4 | \n \n - | \n \n - | \n \n 4 | \n
| \n Bank guarantee and surety bond financing | \n \n 117 | \n \n 150 | \n \n (70) | \n \n 197 | \n
| \n Other | \n \n 40 | \n \n - | \n \n (40) | \n \n - | \n
| \n Balance at 31 December 2023 | \n \n 160 | \n \n 150 | \n \n (110) | \n \n 200 | \n
The vast majority of outstanding bank guarantees and surety bonds relates to the commercial performance on projects (e.g. Performance guarantees, Tender bonds, Warranty bonds or Advance payment guarantees) and rental guarantees. On 31 December 2024 and throughout the year, the vast majority of the outstanding bank guarantees and surety bonds posed an immaterial and insignificant risk to Arcadis.
On 31 December 2024, only a part of the local bank guarantee facilities and local debt facilities have been used.
\n\n\nThe other commitments amount to \u20ac163 million (2023: \u20ac132 million) and include the service part of several long-term global IT service contracts, which runs for a remaining period of one to three years.
\n\n\nThe Company is involved in various legal and regulatory claims and proceedings as a result of its normal course of business, either as plaintiff or defendant. Management ensures that these cases are firmly defended. In some of these proceedings, claimants allegedly claim amounts for project contract breaches that are significant to the Consolidated financial statements.
All legal and regulatory claims and proceedings are assessed on a regular basis. In consultation with in-house and external legal counsels, management regularly evaluates facts and circumstances of those claims and, based on the analysis of possible outcomes of litigation and settlements, provisions are accrued for. Provisions are accrued for only where management believes it is probable that Arcadis will be held liable, the amount is reasonably estimable, and the claim has not been insured. These provisions are reviewed periodically and adjusted if necessary, to the extent that cash outflow of related proceedings is probable, including defense costs and reimbursements by our insurance policies.
Since the ultimate disposition of asserted claims and proceedings cannot be predicted with certainty, final settlement can differ from this estimate and could require revisions to the estimated provision, which could have a material adverse effect on the Company\u2019s balance sheet, profit or loss, and cash flows for a particular period.
Further information ordinarily required by IAS 37 has not been disclosed on the grounds that it can be expected to seriously prejudice the outcome of the disputes
\n\n\nArcadis operates in a high number of jurisdictions and is subject to a variety of taxes per jurisdiction. Tax legislation can be highly complex and subject to changes and interpretation. Therefore, Arcadis is exposed to varying degrees of uncertainty and significant judgement is required in determining the global tax position. The Company accounts for its income taxes on the basis of its own internal analyses supported by external advice. The Company continually monitors its global tax position including changes in tax laws or interpretations of such laws. Whenever uncertain tax positions arise, the Company assesses the potential consequences and recognizes liabilities depending on the strength of the Company\u2019s position and the resulting risk of loss.
Further information ordinarily required by IAS 37 has not been disclosed due to sensitive and confidential information involved.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f2005m1524p": { "value": "Committed lease payments for short-term and/or low-value leases are reported as off-balance sheet commitment. The lease payments (excluding costs for services such as insurance and maintenance, which are expenses as incurred) are recognized as an expense on a straight-line basis unless another systemic basis is representative of the time pattern of the user\u2019s benefit, even if the payments are not on that basis.
Non-financial guarantees are accounted for as a contingent liability until such time it becomes probable that the Company will be required to make a payment under such guarantee. Financial guarantees are subject to the Expected Credit Loss model, and a credit loss is recognized for the expected cash shortfalls.
Contingent liabilities are potential obligations of sufficient uncertainty that it does not qualify for recognition as a provision (see note 28), unless it is assumed in a business combination (see note 6). Contingent liabilities are reviewed periodically to assess whether an outflow of resources will become probable.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3081m2200p": { "value": "Committed lease payments for short-term and/or low-value leases are reported as off-balance sheet commitment. The lease payments (excluding costs for services such as insurance and maintenance, which are expenses as incurred) are recognized as an expense on a straight-line basis unless another systemic basis is representative of the time pattern of the user\u2019s benefit, even if the payments are not on that basis.
Non-financial guarantees are accounted for as a contingent liability until such time it becomes probable that the Company will be required to make a payment under such guarantee. Financial guarantees are subject to the Expected Credit Loss model, and a credit loss is recognized for the expected cash shortfalls.
Contingent liabilities are potential obligations of sufficient uncertainty that it does not qualify for recognition as a provision (see note 28), unless it is assumed in a business combination (see note 6). Contingent liabilities are reviewed periodically to assess whether an outflow of resources will become probable.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3019m2172p": { "value": "Non-financial guarantees are accounted for as a contingent liability until such time it becomes probable that the Company will be required to make a payment under such guarantee. Financial guarantees are subject to the Expected Credit Loss model, and a credit loss is recognized for the expected cash shortfalls.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialGuaranteesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f3018m2171p": { "value": "\n\n\nThe Company is involved in various legal and regulatory claims and proceedings as a result of its normal course of business, either as plaintiff or defendant. Management ensures that these cases are firmly defended. In some of these proceedings, claimants allegedly claim amounts for project contract breaches that are significant to the Consolidated financial statements.
All legal and regulatory claims and proceedings are assessed on a regular basis. In consultation with in-house and external legal counsels, management regularly evaluates facts and circumstances of those claims and, based on the analysis of possible outcomes of litigation and settlements, provisions are accrued for. Provisions are accrued for only where management believes it is probable that Arcadis will be held liable, the amount is reasonably estimable, and the claim has not been insured. These provisions are reviewed periodically and adjusted if necessary, to the extent that cash outflow of related proceedings is probable, including defense costs and reimbursements by our insurance policies.
Since the ultimate disposition of asserted claims and proceedings cannot be predicted with certainty, final settlement can differ from this estimate and could require revisions to the estimated provision, which could have a material adverse effect on the Company\u2019s balance sheet, profit or loss, and cash flows for a particular period.
Further information ordinarily required by IAS 37 has not been disclosed on the grounds that it can be expected to seriously prejudice the outcome of the disputes
\n\n\nArcadis operates in a high number of jurisdictions and is subject to a variety of taxes per jurisdiction. Tax legislation can be highly complex and subject to changes and interpretation. Therefore, Arcadis is exposed to varying degrees of uncertainty and significant judgement is required in determining the global tax position. The Company accounts for its income taxes on the basis of its own internal analyses supported by external advice. The Company continually monitors its global tax position including changes in tax laws or interpretations of such laws. Whenever uncertain tax positions arise, the Company assesses the potential consequences and recognizes liabilities depending on the strength of the Company\u2019s position and the resulting risk of loss.
Further information ordinarily required by IAS 37 has not been disclosed due to sensitive and confidential information involved.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f2008m1525p": { "value": "\n\n\nThe related parties of the Company include subsidiaries, jointly controlled entities, associates, temporary partnerships, Stichting Lovinklaan, Stichting Bellevue, Stichting Prioriteit Arcadis N.V., Stichting Preferente Aandelen Arcadis N.V., the members of the Executive Board, the Executive Leadership Team and the Supervisory Board.
In accordance with article 2:379 and 414 of the Dutch Civil Code, the list of subsidiaries, joint ventures, and associates is filed with the Chamber of Commerce in Amsterdam.
\n\n\nThe financial transactions between the Company and its subsidiaries comprise operational project related transactions, financing transactions and other transactions in the normal course of business activities. Transactions within the Group are not included in these disclosures as these are eliminated in the Consolidated financial statements.
\n\n\nThe Group has entered into transactions on an arm\u2019s length basis through joint arrangements during the year 2024. Total revenues from joint arrangements amounted to \u20ac208 million (2023: \u20ac260 million).
\n\n\nThe Group has entered into transactions with associates, see note 17 and the table on the next page.
\n\n\nThe table below specifies the total remuneration of key management personnel, for the period that they met the criteria, and for remuneration received in the capacity of key management personnel. This includes the remuneration of the Executive Board members of \u20ac5 million (2023: \u20ac4 million), Executive Leadership Team of \u20ac8 million (2023: \u20ac8 million), and Supervisory Board members of \u20ac0.6 million (2023: \u20ac0.5 million).
For the composition of the Executive Board, Executive Leadership Team and Supervisory Board in 2024 see pages 176 to 180 and pages 208 to 210. The remuneration in below table covers the period that members qualified as key management personnel.
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Salary | \n \n 6 | \n \n 5 | \n
| \n Bonus | \n \n 4 | \n \n 3 | \n
| \n Post-employment pension | \n \n 1 | \n \n 1 | \n
| \n Share-based payment transaction | \n \n 2 | \n \n 3 | \n
| \n Fringe benefits | \n \n 1 | \n \n 1 | \n
| \n Termination benefit | \n \n 0 | \n \n 1 | \n
| \n Total | \n \n 14 | \n \n 12 | \n
In 2024 (and 2023) no transactions involving conflicts of interest for key management personnel occurred which were material to the Company. In addition, the Company has not granted any loans, advances or guarantees to key management personnel.
\n\n\nThe main post-employment benefit plans are the pension funds of EC Harris (ECH) and Hyder (AGPS). In 2024, the Company contributed \u20ac2 million (2023: \u20ac2 million) to the plan of EC Harris and \u20ac3 million to the plan of Hyder (2023: \u20ac3 million), see note 27.
\n\n\nStichting Lovinklaan (Lovinklaan Foundation) is one of the main shareholders of Arcadis. The board of the Foundation consists of Arcadis employees. The Foundation had an interest of 18.62% in Arcadis N.V. at 31 December 2024 (2023: 18.51%).
Other contributions made by the Lovinklaan Foundation in 2024 to Arcadis related to the following programs:
Skills Powered Organisation: \u20ac2 million (2023: \u20ac3 million)
Ignite: \u20ac0.5 million (2023: nil)
Energy Transition Academy: \u20ac0.4 million (2023: nil)
Sustain Abilities: \u20ac0.2 million (2023: \u20ac0.2 million)
Quest:\u00a0\u20ac0.1 million (2023: nil)
Imagine: \u20ac0.03 million (2023: \u20ac0.03 million)
Expedition DNA: nil (2023: \u20ac0.7 million)
Shelter: nil (2023: \u20ac0.2 million)
In 2024 (and 2023) no other financial transactions apart from the above mentioned took place between the Foundation and the Company, except for the dividends on the shares.
\n\n\nArcadis N.V. contributed \u20ac63,000 to Stichting Preferente Aandelen Arcadis N.V. (the \u2018Preferred Stock Foundation\u2019) in 2024 (2023: \u20ac45,000) and \u20ac500 to Stichting Prioriteit Arcadis N.V. (the \u2018Priority Share Foundation\u2019) (2023: \u20ac500). See note 25 for further information on these foundations.
The contribution to Stichting Bellevue amounted to \u20ac68,000 (2023: \u20ac68,000).
\n\n\nA summary of transactions with related parties (excluding Key Management Personnel) in the financial year is disclosed in the table below:
| \n | \n\n Transactions with associates | \n \n Transactions with joint arrangements | \n \n Transactions with post-employee benefit plans | \n \n Other | \n ||||
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n \n 2024 | \n \n 2023 | \n
| \n Sales (to) | \n \n 15 | \n \n 14 | \n \n 208 | \n \n 260 | \n \n - | \n \n - | \n \n 4 | \n \n 1 | \n
| \n Purchase (from) | \n \n 1 | \n \n 0 | \n \n 0 | \n \n 1 | \n \n - | \n \n - | \n \n (0) | \n \n 0 | \n
| \n Loans (to) | \n \n 0 | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Receivables (from) | \n \n 1 | \n \n 3 | \n \n 7 | \n \n 9 | \n \n - | \n \n - | \n \n 1 | \n \n 0 | \n
| \n Payables (to) | \n \n 0 | \n \n 0 | \n \n 0 | \n \n 0 | \n \n 0 | \n \n - | \n \n 0 | \n \n - | \n
| \n Impairment of loans (to) | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Dividends received (from) | \n \n 3 | \n \n 4 | \n \n - | \n \n 0 | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Provision for bad debts related to outstanding balances | \n \n - | \n \n - | \n \n 0 | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Related expenses to these bad or doubtful debts | \n \n - | \n \n - | \n \n (0) | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Provision for outstanding loan balances | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n \n - | \n
| \n Transfer of pension premiums and cost changes | \n \n - | \n \n - | \n \n - | \n \n - | \n \n 1 | \n \n 2 | \n \n - | \n \n - | \n
| \n Contributions | \n \n - | \n \n - | \n \n - | \n \n - | \n \n 5 | \n \n 5 | \n \n - | \n \n 0 | \n
A related party is a person or an entity that is related to the Group. These include both people and entities that have, or are subject to, the influence or control of the Group (e.g. key management personnel). Transactions with related parties are accounted for in accordance with the requirements of relevant IFRSs, take into account the substance as well as the legal form, and made on terms equivalent to those that prevail in arm\u2019s length transactions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithRelatedPartiesExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f2012m1527p": { "value": "\n\n\nThe table below specifies the total remuneration of key management personnel, for the period that they met the criteria, and for remuneration received in the capacity of key management personnel. This includes the remuneration of the Executive Board members of \u20ac5 million (2023: \u20ac4 million), Executive Leadership Team of \u20ac8 million (2023: \u20ac8 million), and Supervisory Board members of \u20ac0.6 million (2023: \u20ac0.5 million).
For the composition of the Executive Board, Executive Leadership Team and Supervisory Board in 2024 see pages 176 to 180 and pages 208 to 210. The remuneration in below table covers the period that members qualified as key management personnel.
| \n In \u20ac millions | \n \n 2024 | \n \n 2023 | \n
| \n Salary | \n \n 6 | \n \n 5 | \n
| \n Bonus | \n \n 4 | \n \n 3 | \n
| \n Post-employment pension | \n \n 1 | \n \n 1 | \n
| \n Share-based payment transaction | \n \n 2 | \n \n 3 | \n
| \n Fringe benefits | \n \n 1 | \n \n 1 | \n
| \n Termination benefit | \n \n 0 | \n \n 1 | \n
| \n Total | \n \n 14 | \n \n 12 | \n
In 2024 (and 2023) no transactions involving conflicts of interest for key management personnel occurred which were material to the Company. In addition, the Company has not granted any loans, advances or guarantees to key management personnel.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f2013m1528p": { "value": "\n\n\nThere are no material subsequent events, that would have changed the judgment and analysis by management of the financial condition of the Company at 31 December 2024, or the result for 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:7245000UZH70GO047N03", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } } } }