The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and with Part 9 of Book 2 of the Netherlands Civil Code.
\nThe consolidated financial statements were authorised for publication by all members of the Management Board and the Supervisory Board on 29 February 2024.
\nThe consolidated\u00a0financial\u00a0statements are prepared on\u00a0a going concern basis and on the historical cost principle, except for\u00a0the\u00a0following material\u00a0items\u00a0in\u00a0the\u00a0statement\u00a0of\u00a0financial\u00a0position:
derivative\u00a0financial\u00a0instruments are measured\u00a0at\u00a0fair value
non-derivative\u00a0financial\u00a0instruments at\u00a0fair\u00a0value through\u00a0profit\u00a0or\u00a0loss\u00a0are\u00a0measured\u00a0at\u00a0fair\u00a0value
contingent\u00a0considerations\u00a0assumed\u00a0in\u00a0a\u00a0business combination are measured\u00a0at\u00a0fair\u00a0value
the defined benefit asset/liability is recognised as the net total of the plan assets, less the present value of the defined benefit obligation and is adjusted for any effect of the asset ceiling
These\u00a0consolidated\u00a0financial\u00a0statements\u00a0are\u00a0presented\u00a0in EUR, which is the Company's functional currency. All\u00a0financial\u00a0information\u00a0presented\u00a0in this report in\u00a0EUR\u00a0has\u00a0been rounded\u00a0to\u00a0the\u00a0nearest\u00a0thousand, unless stated otherwise.
\nThe\u00a0preparation\u00a0of\u00a0financial\u00a0statements\u00a0in\u00a0conformity\u00a0with IFRS \u00a0requires\u00a0management\u00a0to\u00a0make\u00a0judgements, estimates\u00a0and\u00a0assumptions\u00a0that\u00a0affect\u00a0the\u00a0application\u00a0of accounting\u00a0policies\u00a0and\u00a0the\u00a0reported amounts\u00a0of\u00a0assets, liabilities,\u00a0income\u00a0and\u00a0expenses.\u00a0Actual\u00a0results\u00a0may\u00a0differ from\u00a0these estimates.
\nIn preparing the consolidated financial statements, management considered its climate change and sustainability ambitions. In light of this, management reviewed the material accounting estimates and judgments. This review did not lead to significant changes in these accounting estimates and judgments.
\nEstimates\u00a0and\u00a0underlying\u00a0assumptions\u00a0are\u00a0reviewed on an ongoing\u00a0basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
\nInformation\u00a0about\u00a0judgements\u00a0made\u00a0in\u00a0applying accounting policies that have the most material effect on the amounts recognised in the consolidated financial statements are included in the following notes:
Notes \u00a07\u00a0, 28 and\u00a035:\u00a0whether\u00a0the\u00a0Group\u00a0has (de\u00a0facto)\u00a0control\u00a0over\u00a0an\u00a0investee and whether a non-controlling interest is recognised.
Note 19 \u2013 lease term: whether the Group is reasonably certain to exercise extension options
Information\u00a0about\u00a0assumptions\u00a0and\u00a0estimation uncertainties\u00a0that\u00a0bear\u00a0a\u00a0significant\u00a0risk\u00a0of\u00a0resulting\u00a0in a material adjustment\u00a0in\u00a0the\u00a0financial\u00a0year\u00a0are\u00a0included\u00a0in the\u00a0following\u00a0notes:
Note\u00a07\u00a0\u2013\u00a0acquisition\u00a0of\u00a0subsidiaries:\u00a0fair\u00a0value measured\u00a0on\u00a0a\u00a0provisional\u00a0basis
Note\u00a018\u00a0\u2013\u00a0impairment\u00a0test for intangible assets:\u00a0key\u00a0assumptions\u00a0underlying recoverable\u00a0amounts
Note\u00a023\u00a0\u2013\u00a0recognition\u00a0of deferred tax\u00a0assets: availability\u00a0of future\u00a0taxable\u00a0profit\u00a0against\u00a0which\u00a0carry forward\u00a0tax\u00a0losses\u00a0can\u00a0be\u00a0used
Note\u00a030\u00a0\u2013\u00a0measurement\u00a0of\u00a0defined\u00a0benefit\u00a0obligations: key\u00a0actuarial\u00a0assumptions
Note 31 and 34: Recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources
Note 33 \u2013 measurement of deferred consideration as part of the financial instruments: key assumptions about the future cash flows and expected returns
A\u00a0number\u00a0of\u00a0the\u00a0Group\u2019s\u00a0accounting\u00a0policies\u00a0and disclosures\u00a0require\u00a0\u00a0measurement\u00a0of\u00a0fair\u00a0values for both financial and\u00a0non-financial\u00a0assets and\u00a0liabilities.
\nThe\u00a0Group has\u00a0a\u00a0structured\u00a0control\u00a0framework\u00a0in place with\u00a0respect to\u00a0the\u00a0measurement\u00a0of\u00a0fair\u00a0values. This\u00a0includes a dedicated\u00a0team\u00a0that\u00a0has\u00a0responsibility\u00a0for overseeing\u00a0all significant fair value measurements, including\u00a0Level\u00a03 fair values, which reports directly\u00a0to\u00a0the\u00a0CFO.
\nManagement\u00a0regularly\u00a0reviews\u00a0significant\u00a0unobservable inputs\u00a0and\u00a0valuation\u00a0adjustments.\u00a0If\u00a0third-party information, such\u00a0as\u00a0broker\u00a0quotes or\u00a0pricing\u00a0services,\u00a0is\u00a0used\u00a0to measure fair\u00a0values, then management assesses the evidence\u00a0obtained\u00a0from\u00a0the\u00a0third\u00a0parties\u00a0to\u00a0support\u00a0the conclusion\u00a0that\u00a0such\u00a0valuations\u00a0meet IFRS requirements, including the level in the fair value hierarchy in which such valuations should be classified.
\nWhen\u00a0measuring\u00a0the\u00a0fair\u00a0value\u00a0of an\u00a0asset\u00a0or\u00a0a\u00a0liability, the\u00a0Group uses market\u00a0observable\u00a0data as\u00a0far as possible. Fair\u00a0values\u00a0are\u00a0categorised\u00a0into\u00a0different\u00a0levels\u00a0in\u00a0a\u00a0fair value\u00a0hierarchy\u00a0based on the inputs used in the valuation techniques\u00a0as\u00a0follows:
level\u00a01:\u00a0quoted\u00a0prices\u00a0(unadjusted)\u00a0in\u00a0active\u00a0markets for\u00a0identical\u00a0assets or\u00a0liabilities
level\u00a02:\u00a0inputs\u00a0other\u00a0than\u00a0quoted\u00a0prices\u00a0included\u00a0in Level\u00a01\u00a0that\u00a0are\u00a0observable\u00a0for\u00a0the\u00a0asset\u00a0or\u00a0liability, either\u00a0directly\u00a0(i.e.\u00a0as\u00a0prices)\u00a0or\u00a0indirectly\u00a0(i.e.\u00a0derived from\u00a0prices)
level\u00a03:\u00a0inputs\u00a0for\u00a0the\u00a0asset\u00a0or\u00a0liability\u00a0that\u00a0are\u00a0not based\u00a0on\u00a0observable\u00a0market\u00a0data\u00a0(unobservable inputs)
If\u00a0the\u00a0inputs\u00a0used\u00a0to\u00a0measure the\u00a0fair\u00a0value\u00a0of an\u00a0asset\u00a0or a\u00a0liability\u00a0might\u00a0be\u00a0categorised\u00a0in\u00a0different levels of the fair value\u00a0hierarchy,\u00a0then\u00a0the\u00a0fair\u00a0value\u00a0measurement\u00a0is categorised\u00a0in\u00a0its\u00a0entirety\u00a0in\u00a0the\u00a0same level\u00a0of\u00a0the\u00a0fair value hierarchy\u00a0as\u00a0the\u00a0lowest\u00a0level\u00a0input\u00a0that\u00a0is\u00a0significant\u00a0to\u00a0the entire\u00a0measurement.
\nThe\u00a0Group\u00a0recognises\u00a0transfers between\u00a0levels\u00a0of\u00a0the\u00a0fair value\u00a0hierarchy\u00a0at\u00a0the\u00a0end of\u00a0the\u00a0reporting\u00a0period during which\u00a0the\u00a0change has\u00a0occurred.
\nFurther\u00a0information\u00a0about\u00a0the\u00a0assumptions\u00a0made\u00a0in measuring\u00a0fair\u00a0values\u00a0is\u00a0included\u00a0in\u00a0the\u00a0following\u00a0notes:
Note\u00a07:\u00a0acquisition\u00a0of\u00a0subsidiaries
Note 12: share-based payment arrangements
Note 30: employee benefits
Note\u00a033:\u00a0financial\u00a0instruments
The Group has\u00a0consistently applied the\u00a0accounting\u00a0policies\u00a0set\u00a0out\u00a0in\u00a0Note\u00a03\u00a0to\u00a0all periods\u00a0presented\u00a0in\u00a0these consolidated\u00a0financial statements.
\nThe Group has not early adopted any standards or amendments that have been issued but are not yet effective.
\nThe following new standards and amendments became effective as of 1 January 2023:
IFRS 17 and amendments to IFRS 17 - Insurance Contracts;
Amendments to IFRS 4 Insurance Contracts - Extension of the Temporary Exemption from Applying IFRS 9;
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 - Disclosure of Accounting Policies;
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors -Definition of Accounting Estimates;
Amendments to IAS 12 Income Taxes - Deferred Tax related to Assets and Liabilities arising from a Single Transaction.
These amendments do not have a material impact on the financial statements of the Group.
\nThe\u00a0Group has\u00a0adopted the Amendments to IAS 12 as released by the IASB in May 2023 on the temporary exception from the accounting requirements for deferred taxes that arises from Pillar Two legislation. As a result, the Group neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.
\nThe Pillar Two Rules have been (substantively) enacted per 19 December 2023 in the Netherlands, following the implementation of the EU Pillar 2 Directive (\u2018\u2019Pillar Two Rules\u2019\u2019). As the Group falls within the scope of the Pillar Two Rules, it will impact financial years of the Group as of 1 January 2024. Since the Pillar Two legislation was not effective at the reporting date, the Group has no related current tax exposure.
\nThe Pillar Two Rules effectuate that the Group will pay tax on its profits at an effective rate of at least 15% at jurisdictional level. For the jurisdictions where the Group has an effective tax rate which is less than 15%, the ultimate parent company, situated in the Netherlands, will be required to pay top-up tax on the profits.
\nThe Group is in the process of assessing its exposure to Pillar Two legislation for when it comes into effect. Following the Group\u2019s assessment on the impact of the Pillar Two Rules via the application of the temporary\u00a0CbCR Safe Harbour Rules, there is one jurisdiction of the Group that\u00a0is expected to be\u00a0exposed to top-up tax in the foreseeable future. The top-up tax for this jurisdiction is however not expected to have a material tax impact on the Group. For the other jurisdictions wherein the Group is active, at least one of the\u00a0temporary\u00a0CbCR Safe Harbour Rules is expected to apply, due to which top-up tax on profits of the entities situated in these jurisdictions is deemed to be zero. As such, the overall Pillar Two impact for the Group is not expected to be material.
\nDue to complexities in applying the legislation and calculating the effective tax rate for Pillar Two purposes, it is difficult at this stage to make a definite quantitative impact assessment. The Group is however assessing the Pillar Two impact on an ongoing basis, following both current and future financial results.
\nBelow the standards and amendments that are issued, but not yet effective as of 31 December 2023. The Group intends to adopt these standards and amendments, if applicable, when they become effective:
Amendments to IAS 1 Presentation of Financial Statements - Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants, applicable for annual periods beginning on or after 1 January 2024, but not yet endorsed in the EU;
Amendments to IFRS 16 Leases - Lease Liability in a Sale and Leaseback, effective 1 January 2024;
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: - Disclosures: Supplier Finance Arrangements, applicable for annual periods beginning on or after 1 January 2024, but not yet endorsed in the EU;
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates -Lack of Exchangeability, applicable for annual periods beginning on or after 1 January 2025, but not yet endorsed in the EU.
The Group is reviewing the impact of these standards and amendments on the Group's consolidated financial statements. The changes to those standads are not expected to have a material impact on the Group's financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-544": { "value": "\nThe consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and with Part 9 of Book 2 of the Netherlands Civil Code.
\nThe consolidated financial statements were authorised for publication by all members of the Management Board and the Supervisory Board on 29 February 2024.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-545": { "value": "\nThese\u00a0consolidated\u00a0financial\u00a0statements\u00a0are\u00a0presented\u00a0in EUR, which is the Company's functional currency. All\u00a0financial\u00a0information\u00a0presented\u00a0in this report in\u00a0EUR\u00a0has\u00a0been rounded\u00a0to\u00a0the\u00a0nearest\u00a0thousand, unless stated otherwise.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-546": { "value": "\nThe\u00a0preparation\u00a0of\u00a0financial\u00a0statements\u00a0in\u00a0conformity\u00a0with IFRS \u00a0requires\u00a0management\u00a0to\u00a0make\u00a0judgements, estimates\u00a0and\u00a0assumptions\u00a0that\u00a0affect\u00a0the\u00a0application\u00a0of accounting\u00a0policies\u00a0and\u00a0the\u00a0reported amounts\u00a0of\u00a0assets, liabilities,\u00a0income\u00a0and\u00a0expenses.\u00a0Actual\u00a0results\u00a0may\u00a0differ from\u00a0these estimates.
\nIn preparing the consolidated financial statements, management considered its climate change and sustainability ambitions. In light of this, management reviewed the material accounting estimates and judgments. This review did not lead to significant changes in these accounting estimates and judgments.
\nEstimates\u00a0and\u00a0underlying\u00a0assumptions\u00a0are\u00a0reviewed on an ongoing\u00a0basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
\nInformation\u00a0about\u00a0judgements\u00a0made\u00a0in\u00a0applying accounting policies that have the most material effect on the amounts recognised in the consolidated financial statements are included in the following notes:
Notes \u00a07\u00a0, 28 and\u00a035:\u00a0whether\u00a0the\u00a0Group\u00a0has (de\u00a0facto)\u00a0control\u00a0over\u00a0an\u00a0investee and whether a non-controlling interest is recognised.
Note 19 \u2013 lease term: whether the Group is reasonably certain to exercise extension options
Information\u00a0about\u00a0assumptions\u00a0and\u00a0estimation uncertainties\u00a0that\u00a0bear\u00a0a\u00a0significant\u00a0risk\u00a0of\u00a0resulting\u00a0in a material adjustment\u00a0in\u00a0the\u00a0financial\u00a0year\u00a0are\u00a0included\u00a0in the\u00a0following\u00a0notes:
Note\u00a07\u00a0\u2013\u00a0acquisition\u00a0of\u00a0subsidiaries:\u00a0fair\u00a0value measured\u00a0on\u00a0a\u00a0provisional\u00a0basis
Note\u00a018\u00a0\u2013\u00a0impairment\u00a0test for intangible assets:\u00a0key\u00a0assumptions\u00a0underlying recoverable\u00a0amounts
Note\u00a023\u00a0\u2013\u00a0recognition\u00a0of deferred tax\u00a0assets: availability\u00a0of future\u00a0taxable\u00a0profit\u00a0against\u00a0which\u00a0carry forward\u00a0tax\u00a0losses\u00a0can\u00a0be\u00a0used
Note\u00a030\u00a0\u2013\u00a0measurement\u00a0of\u00a0defined\u00a0benefit\u00a0obligations: key\u00a0actuarial\u00a0assumptions
Note 31 and 34: Recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources
Note 33 \u2013 measurement of deferred consideration as part of the financial instruments: key assumptions about the future cash flows and expected returns
A\u00a0number\u00a0of\u00a0the\u00a0Group\u2019s\u00a0accounting\u00a0policies\u00a0and disclosures\u00a0require\u00a0\u00a0measurement\u00a0of\u00a0fair\u00a0values for both financial and\u00a0non-financial\u00a0assets and\u00a0liabilities.
\nThe\u00a0Group has\u00a0a\u00a0structured\u00a0control\u00a0framework\u00a0in place with\u00a0respect to\u00a0the\u00a0measurement\u00a0of\u00a0fair\u00a0values. This\u00a0includes a dedicated\u00a0team\u00a0that\u00a0has\u00a0responsibility\u00a0for overseeing\u00a0all significant fair value measurements, including\u00a0Level\u00a03 fair values, which reports directly\u00a0to\u00a0the\u00a0CFO.
\nManagement\u00a0regularly\u00a0reviews\u00a0significant\u00a0unobservable inputs\u00a0and\u00a0valuation\u00a0adjustments.\u00a0If\u00a0third-party information, such\u00a0as\u00a0broker\u00a0quotes or\u00a0pricing\u00a0services,\u00a0is\u00a0used\u00a0to measure fair\u00a0values, then management assesses the evidence\u00a0obtained\u00a0from\u00a0the\u00a0third\u00a0parties\u00a0to\u00a0support\u00a0the conclusion\u00a0that\u00a0such\u00a0valuations\u00a0meet IFRS requirements, including the level in the fair value hierarchy in which such valuations should be classified.
\nWhen\u00a0measuring\u00a0the\u00a0fair\u00a0value\u00a0of an\u00a0asset\u00a0or\u00a0a\u00a0liability, the\u00a0Group uses market\u00a0observable\u00a0data as\u00a0far as possible. Fair\u00a0values\u00a0are\u00a0categorised\u00a0into\u00a0different\u00a0levels\u00a0in\u00a0a\u00a0fair value\u00a0hierarchy\u00a0based on the inputs used in the valuation techniques\u00a0as\u00a0follows:
level\u00a01:\u00a0quoted\u00a0prices\u00a0(unadjusted)\u00a0in\u00a0active\u00a0markets for\u00a0identical\u00a0assets or\u00a0liabilities
level\u00a02:\u00a0inputs\u00a0other\u00a0than\u00a0quoted\u00a0prices\u00a0included\u00a0in Level\u00a01\u00a0that\u00a0are\u00a0observable\u00a0for\u00a0the\u00a0asset\u00a0or\u00a0liability, either\u00a0directly\u00a0(i.e.\u00a0as\u00a0prices)\u00a0or\u00a0indirectly\u00a0(i.e.\u00a0derived from\u00a0prices)
level\u00a03:\u00a0inputs\u00a0for\u00a0the\u00a0asset\u00a0or\u00a0liability\u00a0that\u00a0are\u00a0not based\u00a0on\u00a0observable\u00a0market\u00a0data\u00a0(unobservable inputs)
If\u00a0the\u00a0inputs\u00a0used\u00a0to\u00a0measure the\u00a0fair\u00a0value\u00a0of an\u00a0asset\u00a0or a\u00a0liability\u00a0might\u00a0be\u00a0categorised\u00a0in\u00a0different levels of the fair value\u00a0hierarchy,\u00a0then\u00a0the\u00a0fair\u00a0value\u00a0measurement\u00a0is categorised\u00a0in\u00a0its\u00a0entirety\u00a0in\u00a0the\u00a0same level\u00a0of\u00a0the\u00a0fair value hierarchy\u00a0as\u00a0the\u00a0lowest\u00a0level\u00a0input\u00a0that\u00a0is\u00a0significant\u00a0to\u00a0the entire\u00a0measurement.
\nThe\u00a0Group\u00a0recognises\u00a0transfers between\u00a0levels\u00a0of\u00a0the\u00a0fair value\u00a0hierarchy\u00a0at\u00a0the\u00a0end of\u00a0the\u00a0reporting\u00a0period during which\u00a0the\u00a0change has\u00a0occurred.
\nFurther\u00a0information\u00a0about\u00a0the\u00a0assumptions\u00a0made\u00a0in measuring\u00a0fair\u00a0values\u00a0is\u00a0included\u00a0in\u00a0the\u00a0following\u00a0notes:
Note\u00a07:\u00a0acquisition\u00a0of\u00a0subsidiaries
Note 12: share-based payment arrangements
Note 30: employee benefits
Note\u00a033:\u00a0financial\u00a0instruments
The Group has\u00a0consistently applied the\u00a0accounting\u00a0policies\u00a0set\u00a0out\u00a0in\u00a0Note\u00a03\u00a0to\u00a0all periods\u00a0presented\u00a0in\u00a0these consolidated\u00a0financial statements.
\nThe Group has not early adopted any standards or amendments that have been issued but are not yet effective.
\nThe following new standards and amendments became effective as of 1 January 2023:
IFRS 17 and amendments to IFRS 17 - Insurance Contracts;
Amendments to IFRS 4 Insurance Contracts - Extension of the Temporary Exemption from Applying IFRS 9;
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 - Disclosure of Accounting Policies;
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors -Definition of Accounting Estimates;
Amendments to IAS 12 Income Taxes - Deferred Tax related to Assets and Liabilities arising from a Single Transaction.
These amendments do not have a material impact on the financial statements of the Group.
\nThe\u00a0Group has\u00a0adopted the Amendments to IAS 12 as released by the IASB in May 2023 on the temporary exception from the accounting requirements for deferred taxes that arises from Pillar Two legislation. As a result, the Group neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.
\nThe Pillar Two Rules have been (substantively) enacted per 19 December 2023 in the Netherlands, following the implementation of the EU Pillar 2 Directive (\u2018\u2019Pillar Two Rules\u2019\u2019). As the Group falls within the scope of the Pillar Two Rules, it will impact financial years of the Group as of 1 January 2024. Since the Pillar Two legislation was not effective at the reporting date, the Group has no related current tax exposure.
\nThe Pillar Two Rules effectuate that the Group will pay tax on its profits at an effective rate of at least 15% at jurisdictional level. For the jurisdictions where the Group has an effective tax rate which is less than 15%, the ultimate parent company, situated in the Netherlands, will be required to pay top-up tax on the profits.
\nThe Group is in the process of assessing its exposure to Pillar Two legislation for when it comes into effect. Following the Group\u2019s assessment on the impact of the Pillar Two Rules via the application of the temporary\u00a0CbCR Safe Harbour Rules, there is one jurisdiction of the Group that\u00a0is expected to be\u00a0exposed to top-up tax in the foreseeable future. The top-up tax for this jurisdiction is however not expected to have a material tax impact on the Group. For the other jurisdictions wherein the Group is active, at least one of the\u00a0temporary\u00a0CbCR Safe Harbour Rules is expected to apply, due to which top-up tax on profits of the entities situated in these jurisdictions is deemed to be zero. As such, the overall Pillar Two impact for the Group is not expected to be material.
\nDue to complexities in applying the legislation and calculating the effective tax rate for Pillar Two purposes, it is difficult at this stage to make a definite quantitative impact assessment. The Group is however assessing the Pillar Two impact on an ongoing basis, following both current and future financial results.
\nBelow the standards and amendments that are issued, but not yet effective as of 31 December 2023. The Group intends to adopt these standards and amendments, if applicable, when they become effective:
Amendments to IAS 1 Presentation of Financial Statements - Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants, applicable for annual periods beginning on or after 1 January 2024, but not yet endorsed in the EU;
Amendments to IFRS 16 Leases - Lease Liability in a Sale and Leaseback, effective 1 January 2024;
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: - Disclosures: Supplier Finance Arrangements, applicable for annual periods beginning on or after 1 January 2024, but not yet endorsed in the EU;
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates -Lack of Exchangeability, applicable for annual periods beginning on or after 1 January 2025, but not yet endorsed in the EU.
The Group is reviewing the impact of these standards and amendments on the Group's consolidated financial statements. The changes to those standads are not expected to have a material impact on the Group's financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-548": { "value": "\nThe accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements.
\nThe Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. An exception on this are deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements which are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
\nAny contingent consideration payable is initially measured at fair value at the acquisition date. If contingent consideration is initially classified as equity, then the amount payable is not remeasured and the related settlement is accounted for as a change in equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in profit or loss as finance income or costs. Upon exercising of any related call and put option, changes in the fair value are recognised as a change in equity.
\nWritten put options to acquire a non-controlling interest are accounted for by the anticipated-acquisition method. The fair value of the consideration payable is included in financial liabilities; future changes in the carrying value of the put option are recognised in profit or loss throughout the reporting periods. Any change in carrying value at settlement date compared to the previous reporting period is recognised within equity as transaction between equity holders.
\nThe Group measures goodwill at the acquisition date as:
the fair value of the consideration transferred
plus the recognised amount of any non-controlling interest in the acquiree
plus, if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree
less the net recognised amount (at fair value) of the identifiable assets acquired and liabilities assumed
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as at that date.
\nSubsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
\nThe Group\u2019s interests in equity-accounted investees comprise interests in associates. Associates are those entities in which the Group has significant influence, but no control over the financial and operating policies.
\nInterests in associates are accounted for using the equity method. They are recognised initially at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group\u2019s share of the profit or loss and OCI of equity-accounted investees, until the date on which significant influence ceases.
\nIntra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated when preparing the consolidated financial statements. Unrealised gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group\u2019s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
\nTransactions in foreign currencies are translated into the respective functional currencies of Group entities at exchange rates at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the year.
\nNon-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
\nForeign currency differences arising on translation are recognised in profit or loss, except for differences arising on the translation of financial liabilities designated as qualifying cash flow hedges, which are recognised in other comprehensive income.
\nThe assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into Euro at exchange rates at the reporting date. The income and expenses of foreign operations are translated into Euro at an average rate for the month in which the transactions occurred. However, if exchange rates fluctuate significantly, the use of the average rate for a period is inappropriate and exchanges rates at the date of transactions are used.
\nForeign currency differences on the translation of foreign operations to the functional currency of the group are recognised in other comprehensive income, and accumulated in the translation reserve, except to the extent that the translation difference is allocated to non-controlling interests.
\nWhen the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income and are presented in the translation reserve in equity.
\nThe Group operates in two economies that are considered hyperinflationary, Argentina and T\u00fcrkiye, and applies IAS 29 Financial Reporting in Hyperinflationary Economies for these countries. The impact of the application of IAS 29 is not material for the consolidated financial statements.
\nFinancial assets are classified on the basis of the business model within which they are held and their contractual cash flow characteristics.
\nThe Group initially recognises trade and other receivables that qualify as financial assets and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.
\nThe Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.
\nFinancial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
\nThe Group has the following non-derivative financial assets:
\u2022 trade and other receivables
\u2022 cash and cash equivalents
\u2022 other financial assets
Trade and other receivables are financial assets held to collect the contractual cash flows. Trade receivables are recognised initially at transaction price minus expected credit losses. Other receivables are recognised initially at fair value plus any directly attributable transaction costs minus expected credit losses. Subsequent to initial recognition trade and other receivables are measured at amortised cost using the effective interest method, less any impairment losses.
\nCash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less.
\nThe Group initially recognises debt securities issued and subordinated liabilities on the date that they originate. All other financial liabilities are recognised initially on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument.
\nThe Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expired.
\nThe Group classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.
\nOther financial liabilities comprise loans and borrowings, other short-term financial liabilities, and trade and other payables that qualify as financial liabilities.
\nBank overdrafts that are repayable on demand and form an integral part of the Group\u2019s cash management are included as a component of cash and cash equivalents.
\nOrdinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.
\nWhen shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the reserve own shares. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the resulting surplus or deficit on the transaction is presented within share premium.
\nThe Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures.
\nOn initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Group makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows of the respective hedged items attributable to the hedged risk, and whether the following conditions are met:
there is an economic relationship between the hedged item and the hedging instrument;
the effect of credit risk does not dominate the value changes that result from that economic relationship; and
the hedge ratio is the same as that resulting from actual quantities of hedged items and hedging instruments used for risk management.
For a cash flow hedge of a forecast 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.
\nDerivatives are recognised initially at fair value at trading date; attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below.
\nWhen a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognised in other comprehensive income and presented in the hedging reserve in equity.
\nAny ineffective portion of changes in the fair value of the derivative is recognised immediately in profit or loss.
\nWhen the hedged item is a non-financial asset, the amount accumulated in equity is included in the carrying amount of the asset when the asset is recognised. In other cases the amount accumulated in equity is reclassified to profit or loss in the same period that the hedged item affects profit or loss. If the hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management objective for that designated hedging relationship remains the same, the hedge ratio will be adjusted so that it meets the qualifying criteria again. If the hedging instrument ceases to meet the qualifying criteria for hedge accounting, expires or is sold, terminated or exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. If the forecasted transaction is no longer expected to occur, the balance in equity is reclassified to profit or loss.
\nWhen a derivative financial instrument is not designated in a hedging relationship that qualifies for hedge accounting, all changes in its fair value are recognised immediately in profit or loss.
\nItems of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
\nCost includes expenditure that is directly attributable to the acquisition of the asset. Cost may also include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is an integral part of the functionality of the related equipment is capitalised as part of that equipment.
\nIf major components of an item of property, plant and equipment have different useful lives, these components are accounted for separately.
\nGains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised in profit or loss.
\nSubsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
\nDepreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately.
\nDepreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. Right of use assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated.
\nThe estimated useful lives for the current and comparative years are as follows:
\nBuildings | : 20 - 40 years |
Reconstructions and improvements | : 5 - 12 years |
Hardware and software | : 3 - 5 years |
Other non-current tangible assets | : 3 - 5 years |
Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate.
\nGoodwill\u00a0arising\u00a0on\u00a0the\u00a0acquisition\u00a0of\u00a0subsidiaries\u00a0is included in intangible assets. Goodwill is measured at cost less accumulated impairment losses. On disposal of a business, business segment or cash generating unit, the attributable amount of goodwill is assessed and included in the determination of the profit and loss on disposal.
\nAt acquisition date, the supplier relations are recognised at fair value based on the excess earnings method. For all material supplier bases the initial valuation has been performed by an external valuator. Subsequent measurement is based on costs less amortisation. The estimation of the useful life of each supplier base is usually based on a cut-off calculation that excludes future years from the remaining useful life that account for less than 5% of the total present value of the excess earnings, unless this leads to a calculated useful life not being a proper representation of the actual useful life of the supplier relations.
\nIn addition to supplier relations, intangible assets include intellectual property rights, distribution rights, brand names, order books acquired and\u00a0non-compete\u00a0rights.\u00a0Other intangible assets acquired as part of business combinations are measured on initial recognition at their fair value on the date of acquisition. Intangible assets acquired separately are measured at cost, where intangible assets with indefinite useful lives are carried at cost less accumulated impairment losses. Subsequently, intangible assets which have finite useful lives are measured at cost less accumulated amortisation\u00a0and accumulated\u00a0impairment\u00a0losses.
\nSubsequent\u00a0expenditure\u00a0is\u00a0capitalised only when\u00a0 it increases\u00a0the future economic benefits embodied in the specific asset to which it relates.\u00a0All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
\nAmortisation is based on the cost of an asset less its residual value. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.
\nThe estimated useful lives for the current and comparative years are as follows:
\nIMCD brand name | : indefinite |
Intellectual property rights | : 7 years |
Supplier relations acquired through business combinations | : 4- 16years |
Other distribution, non-compete rights and order books | : (initial) contract term |
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
\nThe Group assesses at inception of the contract whether a contract is or contains a lease. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee except for short-term leases (defined as leases with a lease term of 12 months or less) and low-value leases. For these leases the Group recognises the lease payments as operating expenses on a straight-line basis over the term of the lease.
\nThe lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.
\nLease payments included in the measurement of the lease liability comprise:
Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable
Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date
The amount expected to be payable by the lessee under residual value guarantees
The exercise price of purchase options, if the lessee is reasonably certain to exercise the options and
Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
\nThe Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercising a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.
The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).
A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.
The Group did not make any such adjustments during the periods presented.
\nThe right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement date, less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located. They are subsequently measured at cost less accumulated depreciation or amortisation and impairment losses.
\nRight-of-use assets are amortised or depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated or amortised over the useful life of the underlying asset. The depreciation or amortisation starts at the commencement date of the lease.
\nThe Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 3.h.
\nVariable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the right-of-use asset. The related payments are recognised as an expense in the period in which the event or condition that triggers those payments occurs and are included in the line \u201cOther operating expenses\u201d in profit or loss.
\nAs a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Group has not used this practical expedient. For a contract that contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.
\nThe Group presents right\u2011of\u2011use assets that do not meet the definition of investment property in \u2018property, plant and equipment\u2019 and 'intangible assets' and lease liabilities in \u2018loans and borrowings\u2019 in the statement of financial position.
\nInventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the weighted average method and includes expenditure incurred in acquiring the inventories, conversion costs and other costs incurred in bringing them to their existing location and condition. Cost also may include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of inventories.
\nNet realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
\nAn allowance for expected credit losses (ECL) is recognised for all financial assets not carried at fair value through profit or loss.
\nAn ECL is determined as the difference between the contractual cash flows and the estimated expected cash flows to be collected, considering the potential risk of default.
\nAn ECL is provided for a credit loss that results from a loss event possible within the next 12 months (a 12-month ECL). For credit exposures with a significant increase in credit risk a lifetime ECL is recognised and assessed at each reporting date to determine whether there is objective evidence that it is impaired.
\nObjective evidence that financial assets require an ECL can include the default of or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers or observable data indicating that there is a measurable decrease in expected cash flows from a group of financial assets.
\nA simplified approach is used to determine the ECL for trade receivables, contract assets and lease receivables. A loss allowance is determined based on lifetime ECL on each reporting date.
\nThe Group considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables with similar risk characteristics.
\nA provision matrix is used to determine the expected credit loss based on the Group\u2019s historical trends of incurred losses, allocated to each aging category, adjusted for specific debtor provisions, insurance coverage and general economic developments. Management judges whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset\u2019s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against loans and receivables or held-to-maturity investment securities. Interest on the impaired asset continues to be recognised.
\nWhen a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
\nAn impairment loss in respect of an equity accounted investee is measured by comparing the recoverable amount of the investment with its carrying amount. An impairment loss is recognised in profit or loss and is reversed if there has been a favourable change in the estimates used to determine the recoverable amount.
The carrying amounts of the Group\u2019s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset\u2019s recoverable amount is estimated. For goodwill and other intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated at the reporting date.
\nAn impairment loss is recognised if the carrying amount of an asset or its related cash generating unit (CGU) exceeds its estimated recoverable amount.
\nThe recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of disposal.
\nIn assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually 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 CGUs. Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination.
\nThe Group\u2019s corporate assets do not generate separate cash inflows and are utilised by more than one CGU. Corporate assets are allocated to CGUs on a reasonable and consistent basis and tested for impairment as part of the testing of the CGU to which the corporate asset is allocated.
\nImpairment losses are recognised in profit or loss and recorded as part of amortisation of intangible assets in the consolidated statement of profit or loss and other comprehensive income. Subsequently, impairment losses are separately disclosed in the intangible assets movement schedule in Note 18. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis.
\nAn impairment loss in respect of goodwill is not reversed. For other assets, 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 amortisation, if no impairment loss had been recognised.
\nA defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available.
\nA defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group\u2019s net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value.
\nThe obligation arising from these defined benefit plans are determined on the basis of projected unit credit method. The calculation of the defined benefit obligations is performed annually by qualified actuaries.
\nRemeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in OCI. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
\nWhen the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
\nThe Group\u2019s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value.
\nThe calculation of the other long-term employee benefits is performed using the projected unit credit method. Any actuarial gains and losses are recognised in profit or loss in the period in which they arise.
\nTermination benefits are expensed at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognises costs for restructuring. If benefits are not expected to be settled wholly within 12 months of the end of the reporting period, then these benefits are discounted.
\nThe grant date fair value of equity-settled share based payment awards granted to employees is recognised as personnel expenses, with a corresponding increase in equity, over the vesting period of the awards. The grant date fair value is generally equal to the share price at the grant date, adjusted for:
expected dividends
marketability discounts for restriction periods (using the Finnerty model)
market conditions (using Monte Carlo simulations)
The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.
\nShort-term employee benefit obligations are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.
\nA provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of resources will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
\nA provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been announced publicly. Future operating costs are not provided for.
\nRevenue from the sale of goods in the course of ordinary activities is recognised when the performance obligation is satisfied and transfer of control is established. The amount recognised is the amount of the transaction price allocated to the performance obligation.
\nIf the consideration promised in a contract includes a variable amount, such as discounts and/or rebates, the Group estimates the amount of consideration to which the Group will be entitled in exchange for the sale of goods.
\nThe timing of the transfer of control varies depending on the individual terms of the sales agreement.
\nWhen the Group arranges to provide goods from the supplier to the customer and does not obtain control over the goods, the Group acts in the capacity of an agent rather than as the principal. The revenue arising from such a transaction is recognised as the net amount of commission made by the Group.
\nFinance income comprises interest income on funds invested and gains on hedging instruments that are recognised in profit or loss. Interest income is recognised using the effective interest method.
\nFinance costs comprise interest expense on borrowings, unwinding of the discount on provisions and contingent consideration, impairment losses recognised on financial assets (other than trade receivables) and losses on hedging instruments that are recognised in profit or loss.
\nFinance income and expenses includes results of changes of the fair value of contingent considerations classified as financial liabilities.
\nBorrowing costs that are not directly attributable to the acquisition of a qualifying asset are recognised in profit or loss using the effective interest method.
\nForeign currency gains and losses are reported on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position.
\nIncome\u00a0tax\u00a0expense comprises\u00a0current\u00a0and\u00a0deferred\u00a0tax. Current\u00a0tax\u00a0and\u00a0deferred tax are recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
\nCurrent tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the declaration of dividends.
\nDeferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
\nDeferred tax is not recognised for:
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss
temporary differences related to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future
taxable temporary differences arising on the initial recognition of goodwill
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
\nDeferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
\nA deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
\nAn operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group\u2019s other components. The segmentation used by the Group is based on geography, organisation and management structure and commercial interdependencies.
\nSegment results that are reported to the CEO include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company\u2019s headquarters), head office expenses, and income tax assets and liabilities and are presented in a separate reporting unit \u2018Holding companies\u2019.
\nThe reporting segments used are defined as follows:
EMEA: all operating companies in Europe, T\u00fcrkiye, Israel, Egypt, United Arab Emirates, Saudi Arabia and Africa
Americas: all operating companies in the United States, Canada, Brazil, Puerto Rico, Chile, Argentina, Uruguay, Colombia, Mexico, Ecuador, Peru, Costa Rica, Guatemala, Dominican Republic
Asia-Pacific: all operating companies in Australia, New Zealand, India, Bangladesh, China, Malaysia, Indonesia, Philippines, Thailand, Singapore, Vietnam, Japan and South Korea
Holding companies: all non-operating companies, including the head office in Rotterdam and the regional offices in Singapore and in the USA.
The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. An exception on this are deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements which are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
\nAny contingent consideration payable is initially measured at fair value at the acquisition date. If contingent consideration is initially classified as equity, then the amount payable is not remeasured and the related settlement is accounted for as a change in equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in profit or loss as finance income or costs. Upon exercising of any related call and put option, changes in the fair value are recognised as a change in equity.
\nWritten put options to acquire a non-controlling interest are accounted for by the anticipated-acquisition method. The fair value of the consideration payable is included in financial liabilities; future changes in the carrying value of the put option are recognised in profit or loss throughout the reporting periods. Any change in carrying value at settlement date compared to the previous reporting period is recognised within equity as transaction between equity holders.
\nThe Group measures goodwill at the acquisition date as:
the fair value of the consideration transferred
plus the recognised amount of any non-controlling interest in the acquiree
plus, if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree
less the net recognised amount (at fair value) of the identifiable assets acquired and liabilities assumed
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as at that date.
\nSubsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
\nThe Group\u2019s interests in equity-accounted investees comprise interests in associates. Associates are those entities in which the Group has significant influence, but no control over the financial and operating policies.
\nInterests in associates are accounted for using the equity method. They are recognised initially at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group\u2019s share of the profit or loss and OCI of equity-accounted investees, until the date on which significant influence ceases.
\nIntra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated when preparing the consolidated financial statements. Unrealised gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group\u2019s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-550": { "value": "\nThe Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. An exception on this are deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements which are recognised and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits respectively. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
\nAny contingent consideration payable is initially measured at fair value at the acquisition date. If contingent consideration is initially classified as equity, then the amount payable is not remeasured and the related settlement is accounted for as a change in equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in profit or loss as finance income or costs. Upon exercising of any related call and put option, changes in the fair value are recognised as a change in equity.
\nWritten put options to acquire a non-controlling interest are accounted for by the anticipated-acquisition method. The fair value of the consideration payable is included in financial liabilities; future changes in the carrying value of the put option are recognised in profit or loss throughout the reporting periods. Any change in carrying value at settlement date compared to the previous reporting period is recognised within equity as transaction between equity holders.
\nThe Group measures goodwill at the acquisition date as:
the fair value of the consideration transferred
plus the recognised amount of any non-controlling interest in the acquiree
plus, if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree
less the net recognised amount (at fair value) of the identifiable assets acquired and liabilities assumed
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as at that date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-551": { "value": "\nSubsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-552": { "value": "\nTransactions in foreign currencies are translated into the respective functional currencies of Group entities at exchange rates at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the year.
\nNon-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
\nForeign currency differences arising on translation are recognised in profit or loss, except for differences arising on the translation of financial liabilities designated as qualifying cash flow hedges, which are recognised in other comprehensive income.
\nThe assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into Euro at exchange rates at the reporting date. The income and expenses of foreign operations are translated into Euro at an average rate for the month in which the transactions occurred. However, if exchange rates fluctuate significantly, the use of the average rate for a period is inappropriate and exchanges rates at the date of transactions are used.
\nForeign currency differences on the translation of foreign operations to the functional currency of the group are recognised in other comprehensive income, and accumulated in the translation reserve, except to the extent that the translation difference is allocated to non-controlling interests.
\nWhen the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income and are presented in the translation reserve in equity.
\nThe Group operates in two economies that are considered hyperinflationary, Argentina and T\u00fcrkiye, and applies IAS 29 Financial Reporting in Hyperinflationary Economies for these countries. The impact of the application of IAS 29 is not material for the consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-553": { "value": "\nFinancial assets are classified on the basis of the business model within which they are held and their contractual cash flow characteristics.
\nThe Group initially recognises trade and other receivables that qualify as financial assets and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.
\nThe Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.
\nFinancial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
\nThe Group has the following non-derivative financial assets:
\u2022 trade and other receivables
\u2022 cash and cash equivalents
\u2022 other financial assets
Trade and other receivables are financial assets held to collect the contractual cash flows. Trade receivables are recognised initially at transaction price minus expected credit losses. Other receivables are recognised initially at fair value plus any directly attributable transaction costs minus expected credit losses. Subsequent to initial recognition trade and other receivables are measured at amortised cost using the effective interest method, less any impairment losses.
\nCash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less.
\nThe Group initially recognises debt securities issued and subordinated liabilities on the date that they originate. All other financial liabilities are recognised initially on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument.
\nThe Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expired.
\nThe Group classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.
\nOther financial liabilities comprise loans and borrowings, other short-term financial liabilities, and trade and other payables that qualify as financial liabilities.
\nBank overdrafts that are repayable on demand and form an integral part of the Group\u2019s cash management are included as a component of cash and cash equivalents.
\nOrdinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.
\nWhen shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the reserve own shares. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the resulting surplus or deficit on the transaction is presented within share premium.
\nThe Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures.
\nOn initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Group makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows of the respective hedged items attributable to the hedged risk, and whether the following conditions are met:
there is an economic relationship between the hedged item and the hedging instrument;
the effect of credit risk does not dominate the value changes that result from that economic relationship; and
the hedge ratio is the same as that resulting from actual quantities of hedged items and hedging instruments used for risk management.
For a cash flow hedge of a forecast 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.
\nDerivatives are recognised initially at fair value at trading date; attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below.
\nWhen a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognised in other comprehensive income and presented in the hedging reserve in equity.
\nAny ineffective portion of changes in the fair value of the derivative is recognised immediately in profit or loss.
\nWhen the hedged item is a non-financial asset, the amount accumulated in equity is included in the carrying amount of the asset when the asset is recognised. In other cases the amount accumulated in equity is reclassified to profit or loss in the same period that the hedged item affects profit or loss. If the hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management objective for that designated hedging relationship remains the same, the hedge ratio will be adjusted so that it meets the qualifying criteria again. If the hedging instrument ceases to meet the qualifying criteria for hedge accounting, expires or is sold, terminated or exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. If the forecasted transaction is no longer expected to occur, the balance in equity is reclassified to profit or loss.
\nWhen a derivative financial instrument is not designated in a hedging relationship that qualifies for hedge accounting, all changes in its fair value are recognised immediately in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-554": { "value": "\nFinancial assets are classified on the basis of the business model within which they are held and their contractual cash flow characteristics.
\nThe Group initially recognises trade and other receivables that qualify as financial assets and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.
\nThe Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.
\nFinancial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
\nThe Group has the following non-derivative financial assets:
\u2022 trade and other receivables
\u2022 cash and cash equivalents
\u2022 other financial assets
Trade and other receivables are financial assets held to collect the contractual cash flows. Trade receivables are recognised initially at transaction price minus expected credit losses. Other receivables are recognised initially at fair value plus any directly attributable transaction costs minus expected credit losses. Subsequent to initial recognition trade and other receivables are measured at amortised cost using the effective interest method, less any impairment losses.
\nCash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-555": { "value": "\nOrdinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.
\nWhen shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the reserve own shares. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the resulting surplus or deficit on the transaction is presented within share premium.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-556": { "value": "\nItems of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
\nCost includes expenditure that is directly attributable to the acquisition of the asset. Cost may also include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is an integral part of the functionality of the related equipment is capitalised as part of that equipment.
\nIf major components of an item of property, plant and equipment have different useful lives, these components are accounted for separately.
\nGains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised in profit or loss.
\nSubsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
\nDepreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately.
\nDepreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. Right of use assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated.
\nThe estimated useful lives for the current and comparative years are as follows:
\nBuildings | : 20 - 40 years |
Reconstructions and improvements | : 5 - 12 years |
Hardware and software | : 3 - 5 years |
Other non-current tangible assets | : 3 - 5 years |
Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-557": { "value": "\nDepreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately.
\nDepreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. Right of use assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated.
\nThe estimated useful lives for the current and comparative years are as follows:
\nBuildings | : 20 - 40 years |
Reconstructions and improvements | : 5 - 12 years |
Hardware and software | : 3 - 5 years |
Other non-current tangible assets | : 3 - 5 years |
Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate.
\nAmortisation is based on the cost of an asset less its residual value. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.
\nThe estimated useful lives for the current and comparative years are as follows:
\nIMCD brand name | : indefinite |
Intellectual property rights | : 7 years |
Supplier relations acquired through business combinations | : 4- 16years |
Other distribution, non-compete rights and order books | : (initial) contract term |
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-558": { "value": "\nGoodwill\u00a0arising\u00a0on\u00a0the\u00a0acquisition\u00a0of\u00a0subsidiaries\u00a0is included in intangible assets. Goodwill is measured at cost less accumulated impairment losses. On disposal of a business, business segment or cash generating unit, the attributable amount of goodwill is assessed and included in the determination of the profit and loss on disposal.
\nAt acquisition date, the supplier relations are recognised at fair value based on the excess earnings method. For all material supplier bases the initial valuation has been performed by an external valuator. Subsequent measurement is based on costs less amortisation. The estimation of the useful life of each supplier base is usually based on a cut-off calculation that excludes future years from the remaining useful life that account for less than 5% of the total present value of the excess earnings, unless this leads to a calculated useful life not being a proper representation of the actual useful life of the supplier relations.
\nIn addition to supplier relations, intangible assets include intellectual property rights, distribution rights, brand names, order books acquired and\u00a0non-compete\u00a0rights.\u00a0Other intangible assets acquired as part of business combinations are measured on initial recognition at their fair value on the date of acquisition. Intangible assets acquired separately are measured at cost, where intangible assets with indefinite useful lives are carried at cost less accumulated impairment losses. Subsequently, intangible assets which have finite useful lives are measured at cost less accumulated amortisation\u00a0and accumulated\u00a0impairment\u00a0losses.
\nSubsequent\u00a0expenditure\u00a0is\u00a0capitalised only when\u00a0 it increases\u00a0the future economic benefits embodied in the specific asset to which it relates.\u00a0All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
\nAmortisation is based on the cost of an asset less its residual value. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.
\nThe estimated useful lives for the current and comparative years are as follows:
\nIMCD brand name | : indefinite |
Intellectual property rights | : 7 years |
Supplier relations acquired through business combinations | : 4- 16years |
Other distribution, non-compete rights and order books | : (initial) contract term |
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-559": { "value": "\nGoodwill\u00a0arising\u00a0on\u00a0the\u00a0acquisition\u00a0of\u00a0subsidiaries\u00a0is included in intangible assets. Goodwill is measured at cost less accumulated impairment losses. On disposal of a business, business segment or cash generating unit, the attributable amount of goodwill is assessed and included in the determination of the profit and loss on disposal.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-560": { "value": "\nGoodwill\u00a0arising\u00a0on\u00a0the\u00a0acquisition\u00a0of\u00a0subsidiaries\u00a0is included in intangible assets. Goodwill is measured at cost less accumulated impairment losses. On disposal of a business, business segment or cash generating unit, the attributable amount of goodwill is assessed and included in the determination of the profit and loss on disposal.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-562": { "value": "\nThe Group assesses at inception of the contract whether a contract is or contains a lease. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee except for short-term leases (defined as leases with a lease term of 12 months or less) and low-value leases. For these leases the Group recognises the lease payments as operating expenses on a straight-line basis over the term of the lease.
\nThe lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.
\nLease payments included in the measurement of the lease liability comprise:
Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable
Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date
The amount expected to be payable by the lessee under residual value guarantees
The exercise price of purchase options, if the lessee is reasonably certain to exercise the options and
Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
\nThe Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercising a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.
The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).
A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.
The Group did not make any such adjustments during the periods presented.
\nThe right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement date, less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located. They are subsequently measured at cost less accumulated depreciation or amortisation and impairment losses.
\nRight-of-use assets are amortised or depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated or amortised over the useful life of the underlying asset. The depreciation or amortisation starts at the commencement date of the lease.
\nThe Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 3.h.
\nVariable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the right-of-use asset. The related payments are recognised as an expense in the period in which the event or condition that triggers those payments occurs and are included in the line \u201cOther operating expenses\u201d in profit or loss.
\nAs a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Group has not used this practical expedient. For a contract that contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.
\nThe Group presents right\u2011of\u2011use assets that do not meet the definition of investment property in \u2018property, plant and equipment\u2019 and 'intangible assets' and lease liabilities in \u2018loans and borrowings\u2019 in the statement of financial position.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-563": { "value": "\nInventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the weighted average method and includes expenditure incurred in acquiring the inventories, conversion costs and other costs incurred in bringing them to their existing location and condition. Cost also may include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of inventories.
\nNet realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-564": { "value": "\nAn allowance for expected credit losses (ECL) is recognised for all financial assets not carried at fair value through profit or loss.
\nAn ECL is determined as the difference between the contractual cash flows and the estimated expected cash flows to be collected, considering the potential risk of default.
\nAn ECL is provided for a credit loss that results from a loss event possible within the next 12 months (a 12-month ECL). For credit exposures with a significant increase in credit risk a lifetime ECL is recognised and assessed at each reporting date to determine whether there is objective evidence that it is impaired.
\nObjective evidence that financial assets require an ECL can include the default of or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers or observable data indicating that there is a measurable decrease in expected cash flows from a group of financial assets.
\nA simplified approach is used to determine the ECL for trade receivables, contract assets and lease receivables. A loss allowance is determined based on lifetime ECL on each reporting date.
\nThe Group considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables with similar risk characteristics.
\nA provision matrix is used to determine the expected credit loss based on the Group\u2019s historical trends of incurred losses, allocated to each aging category, adjusted for specific debtor provisions, insurance coverage and general economic developments. Management judges whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset\u2019s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against loans and receivables or held-to-maturity investment securities. Interest on the impaired asset continues to be recognised.
\nWhen a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
\nAn impairment loss in respect of an equity accounted investee is measured by comparing the recoverable amount of the investment with its carrying amount. An impairment loss is recognised in profit or loss and is reversed if there has been a favourable change in the estimates used to determine the recoverable amount.
The carrying amounts of the Group\u2019s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset\u2019s recoverable amount is estimated. For goodwill and other intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated at the reporting date.
\nAn impairment loss is recognised if the carrying amount of an asset or its related cash generating unit (CGU) exceeds its estimated recoverable amount.
\nThe recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of disposal.
\nIn assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually 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 CGUs. Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination.
\nThe Group\u2019s corporate assets do not generate separate cash inflows and are utilised by more than one CGU. Corporate assets are allocated to CGUs on a reasonable and consistent basis and tested for impairment as part of the testing of the CGU to which the corporate asset is allocated.
\nImpairment losses are recognised in profit or loss and recorded as part of amortisation of intangible assets in the consolidated statement of profit or loss and other comprehensive income. Subsequently, impairment losses are separately disclosed in the intangible assets movement schedule in Note 18. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis.
\nAn impairment loss in respect of goodwill is not reversed. For other assets, 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 amortisation, if no impairment loss had been recognised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-565": { "value": "\nAn allowance for expected credit losses (ECL) is recognised for all financial assets not carried at fair value through profit or loss.
\nAn ECL is determined as the difference between the contractual cash flows and the estimated expected cash flows to be collected, considering the potential risk of default.
\nAn ECL is provided for a credit loss that results from a loss event possible within the next 12 months (a 12-month ECL). For credit exposures with a significant increase in credit risk a lifetime ECL is recognised and assessed at each reporting date to determine whether there is objective evidence that it is impaired.
\nObjective evidence that financial assets require an ECL can include the default of or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers or observable data indicating that there is a measurable decrease in expected cash flows from a group of financial assets.
\nA simplified approach is used to determine the ECL for trade receivables, contract assets and lease receivables. A loss allowance is determined based on lifetime ECL on each reporting date.
\nThe Group considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables with similar risk characteristics.
\nA provision matrix is used to determine the expected credit loss based on the Group\u2019s historical trends of incurred losses, allocated to each aging category, adjusted for specific debtor provisions, insurance coverage and general economic developments. Management judges whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset\u2019s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against loans and receivables or held-to-maturity investment securities. Interest on the impaired asset continues to be recognised.
\nWhen a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
\nAn impairment loss in respect of an equity accounted investee is measured by comparing the recoverable amount of the investment with its carrying amount. An impairment loss is recognised in profit or loss and is reversed if there has been a favourable change in the estimates used to determine the recoverable amount.
An allowance for expected credit losses (ECL) is recognised for all financial assets not carried at fair value through profit or loss.
\nAn ECL is determined as the difference between the contractual cash flows and the estimated expected cash flows to be collected, considering the potential risk of default.
\nAn ECL is provided for a credit loss that results from a loss event possible within the next 12 months (a 12-month ECL). For credit exposures with a significant increase in credit risk a lifetime ECL is recognised and assessed at each reporting date to determine whether there is objective evidence that it is impaired.
\nObjective evidence that financial assets require an ECL can include the default of or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers or observable data indicating that there is a measurable decrease in expected cash flows from a group of financial assets.
\nA simplified approach is used to determine the ECL for trade receivables, contract assets and lease receivables. A loss allowance is determined based on lifetime ECL on each reporting date.
\nThe Group considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables with similar risk characteristics.
\nA provision matrix is used to determine the expected credit loss based on the Group\u2019s historical trends of incurred losses, allocated to each aging category, adjusted for specific debtor provisions, insurance coverage and general economic developments. Management judges whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset\u2019s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against loans and receivables or held-to-maturity investment securities. Interest on the impaired asset continues to be recognised.
\nWhen a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
\nAn impairment loss in respect of an equity accounted investee is measured by comparing the recoverable amount of the investment with its carrying amount. An impairment loss is recognised in profit or loss and is reversed if there has been a favourable change in the estimates used to determine the recoverable amount.
The carrying amounts of the Group\u2019s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset\u2019s recoverable amount is estimated. For goodwill and other intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated at the reporting date.
\nAn impairment loss is recognised if the carrying amount of an asset or its related cash generating unit (CGU) exceeds its estimated recoverable amount.
\nThe recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of disposal.
\nIn assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually 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 CGUs. Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination.
\nThe Group\u2019s corporate assets do not generate separate cash inflows and are utilised by more than one CGU. Corporate assets are allocated to CGUs on a reasonable and consistent basis and tested for impairment as part of the testing of the CGU to which the corporate asset is allocated.
\nImpairment losses are recognised in profit or loss and recorded as part of amortisation of intangible assets in the consolidated statement of profit or loss and other comprehensive income. Subsequently, impairment losses are separately disclosed in the intangible assets movement schedule in Note 18. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis.
\nAn impairment loss in respect of goodwill is not reversed. For other assets, 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 amortisation, if no impairment loss had been recognised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-568": { "value": "\nA defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available.
\nA defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group\u2019s net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value.
\nThe obligation arising from these defined benefit plans are determined on the basis of projected unit credit method. The calculation of the defined benefit obligations is performed annually by qualified actuaries.
\nRemeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in OCI. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
\nWhen the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
\nThe Group\u2019s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value.
\nThe calculation of the other long-term employee benefits is performed using the projected unit credit method. Any actuarial gains and losses are recognised in profit or loss in the period in which they arise.
\nTermination benefits are expensed at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognises costs for restructuring. If benefits are not expected to be settled wholly within 12 months of the end of the reporting period, then these benefits are discounted.
\nThe grant date fair value of equity-settled share based payment awards granted to employees is recognised as personnel expenses, with a corresponding increase in equity, over the vesting period of the awards. The grant date fair value is generally equal to the share price at the grant date, adjusted for:
expected dividends
marketability discounts for restriction periods (using the Finnerty model)
market conditions (using Monte Carlo simulations)
The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.
\nShort-term employee benefit obligations are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-569": { "value": "\nTermination benefits are expensed at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognises costs for restructuring. If benefits are not expected to be settled wholly within 12 months of the end of the reporting period, then these benefits are discounted.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTerminationBenefits", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-570": { "value": "\nThe grant date fair value of equity-settled share based payment awards granted to employees is recognised as personnel expenses, with a corresponding increase in equity, over the vesting period of the awards. The grant date fair value is generally equal to the share price at the grant date, adjusted for:
expected dividends
marketability discounts for restriction periods (using the Finnerty model)
market conditions (using Monte Carlo simulations)
The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-571": { "value": "\nA provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of resources will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
\nA provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been announced publicly. Future operating costs are not provided for.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-572": { "value": "\nRevenue from the sale of goods in the course of ordinary activities is recognised when the performance obligation is satisfied and transfer of control is established. The amount recognised is the amount of the transaction price allocated to the performance obligation.
\nIf the consideration promised in a contract includes a variable amount, such as discounts and/or rebates, the Group estimates the amount of consideration to which the Group will be entitled in exchange for the sale of goods.
\nThe timing of the transfer of control varies depending on the individual terms of the sales agreement.
\nWhen the Group arranges to provide goods from the supplier to the customer and does not obtain control over the goods, the Group acts in the capacity of an agent rather than as the principal. The revenue arising from such a transaction is recognised as the net amount of commission made by the Group.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-573": { "value": "\nWhen the Group arranges to provide goods from the supplier to the customer and does not obtain control over the goods, the Group acts in the capacity of an agent rather than as the principal. The revenue arising from such a transaction is recognised as the net amount of commission made by the Group.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFeeAndCommissionIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-574": { "value": "\nFinance income comprises interest income on funds invested and gains on hedging instruments that are recognised in profit or loss. Interest income is recognised using the effective interest method.
\nFinance costs comprise interest expense on borrowings, unwinding of the discount on provisions and contingent consideration, impairment losses recognised on financial assets (other than trade receivables) and losses on hedging instruments that are recognised in profit or loss.
\nFinance income and expenses includes results of changes of the fair value of contingent considerations classified as financial liabilities.
\nBorrowing costs that are not directly attributable to the acquisition of a qualifying asset are recognised in profit or loss using the effective interest method.
\nForeign currency gains and losses are reported on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-575": { "value": "\nFinance costs comprise interest expense on borrowings, unwinding of the discount on provisions and contingent consideration, impairment losses recognised on financial assets (other than trade receivables) and losses on hedging instruments that are recognised in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-576": { "value": "\nIncome\u00a0tax\u00a0expense comprises\u00a0current\u00a0and\u00a0deferred\u00a0tax. Current\u00a0tax\u00a0and\u00a0deferred tax are recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
\nCurrent tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the declaration of dividends.
\nDeferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
\nDeferred tax is not recognised for:
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss
temporary differences related to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future
taxable temporary differences arising on the initial recognition of goodwill
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
\nDeferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
\nA deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-577": { "value": "\nDeferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
\nDeferred tax is not recognised for:
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss
temporary differences related to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future
taxable temporary differences arising on the initial recognition of goodwill
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
\nDeferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
\nA deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-578": { "value": "\nAn operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group\u2019s other components. The segmentation used by the Group is based on geography, organisation and management structure and commercial interdependencies.
\nSegment results that are reported to the CEO include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company\u2019s headquarters), head office expenses, and income tax assets and liabilities and are presented in a separate reporting unit \u2018Holding companies\u2019.
\nThe reporting segments used are defined as follows:
EMEA: all operating companies in Europe, T\u00fcrkiye, Israel, Egypt, United Arab Emirates, Saudi Arabia and Africa
Americas: all operating companies in the United States, Canada, Brazil, Puerto Rico, Chile, Argentina, Uruguay, Colombia, Mexico, Ecuador, Peru, Costa Rica, Guatemala, Dominican Republic
Asia-Pacific: all operating companies in Australia, New Zealand, India, Bangladesh, China, Malaysia, Indonesia, Philippines, Thailand, Singapore, Vietnam, Japan and South Korea
Holding companies: all non-operating companies, including the head office in Rotterdam and the regional offices in Singapore and in the USA.
A number of the Group\u2019s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based the methods described below. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability and in Note 33 Financial Instruments.
\nThe fair value of property, plant and equipment recognised as a result of a business combination is the estimated amount for which a property could be exchanged on the date of acquisition between a willing buyer and a willing seller in an at arm\u2019s-length transaction after proper marketing wherein the parties had each acted knowledgeably. The fair value of items of plant, equipment, fixtures and fittings is based on the market approach and cost approaches using quoted market prices for similar items when available and replacement cost when appropriate. Depreciated replacement cost estimates reflect adjustments for physical deterioration as well as functional and economic obsolescence.
\nThe fair value of other intangible assets acquired in a business combination is based on the discounted cash flows expected to be derived from the use and eventual sale of the assets.
\nThe fair value of inventories acquired in a business combination is determined based on the estimated selling price in the ordinary course of business less the estimated costs of completion and sale, and a reasonable profit margin based on the effort required to complete and sell the inventories.
\nThe fair value of forward exchange contracts is based on their quoted price, if available. If a quoted price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds).
\nThe fair value of interest rate swaps is based on quotes acquired from financial institutions. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the Group entity and counterparty when appropriate.
\nFair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance leases the market rate of interest is determined by reference to similar lease agreements.
\nThe fair value of contingent considerations is calculated using the income approach based on the expected payment amounts and their associated probabilities (i.e. probability-weighted). Contingent considerations with a term longer than one year are discounted to present value.
\nThe fair value of the plan assets is based on the actuarial assumptions determined by certified actuaries.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-580": { "value": "\nThe fair value of contingent considerations is calculated using the income approach based on the expected payment amounts and their associated probabilities (i.e. probability-weighted). Contingent considerations with a term longer than one year are discounted to present value.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-581": { "value": "\nThe IMCD risk management policy is aimed at optimising the balance between maximisation of business opportunities within the framework of the Group's strategy, while managing the risks involved.
\nAlthough the Group benefits from geographical, market, client and product portfolio spread, the Group\u2019s well structured risk management process should manage its residual risks in a transparent and controlled manner.
\nThe Group's risk management and control systems are established to identify and analyse the risks faced by the Group at various levels, to set appropriate risk controls, and to monitor risks and the way the risks are controlled.
\nKey activities within the Group's risk management and control systems are:
identification of key business risks, based on likelihood of occurrence and their potential impact
setting controls for managing these key risks
The elements of IMCD\u2019s risk management system are the following:
\norganisational culture based on ethical conduct and compliance, clear responsibilities and short and open communication lines
IMCD\u2019s policies including business principles, management instructions and manuals
continuous compliance training of employees
risk management embedded in the business processes on all organisational levels
internal financial reviews and risk assessments performed by the Group, in accordance with Internal Audit
identification of risks via risk self-assessments coordinated by Corporate Control and Corporate Health, Safety, Environment, Quality and Regulatory (HSEQR)
implementing and optimisation of effective and efficient control procedures on various levels in the organisation
harmonised reporting on operations, financial results and positions and risks
periodical reviews of financial results and risk management by the Management Board and Corporate Control
periodical reviews on HSEQR management by Corporate HSEQR
regular review meetings between Group and local management
The Management Board, under supervision of the Supervisory Board, has overall responsibility for the IMCD risk management and control systems. Management of regional and operating companies is responsible for local operational performance and for managing the associated local risks.
\nThe Group has exposure to the following financial risks:
credit risk
liquidity risk
market risk
operational risk
This note presents information about the Group\u2019s exposure to each of the above risks, the Group\u2019s objectives, policies and processes for measuring and managing risk, and the Group\u2019s management of capital. Further quantitative disclosures are included throughout these consolidated financial statements.
\nCredit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group\u2019s receivables from customers.
\nThe Group\u2019s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the demographics of the Group\u2019s customer base, including the default risk of the industry and country in which customers operate, as these factors \u00a0may have an influence on credit risk. This has been of increased importance due to the COVID-19 pandemic. There is no geographical concentration of credit risk nor significant credit risk on individual customer level.
\nThe Group has established a credit policy in which each new customer is analysed individually for creditworthiness before the Group\u2019s payment and delivery terms and conditions are offered. The Group\u2019s review includes the use of external ratings, when available, and in some cases bank references. Purchase limits are established for each customer, which represent the maximum open amount. These limits are reviewed periodically.
\nCustomers that fail to meet the Group\u2019s benchmark creditworthiness may transact with the Group only on a prepayment basis.
\nAt the reporting date, there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset.
\nThe Group establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that are expected but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets, adjusted for forward-looking information.
\nTo mitigate the counterparty risk with financial institutions the Group's policy is to make use of financial institutions which are investment grade. The Group\u2019s main financial institutions are systemically important and are under close supervision by their respective financial regulatory bodies.
\nLiquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group\u2019s approach to manage liquidity is to ensure, as far as possible, that it will always have sufficient cash to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group\u2019s reputation.
\nThe Group typically ensures that it generally has sufficient cash on demand to meet expected operational expenses for the next twelve months, including the servicing of financial obligations. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted.
\nIn addition, the Group maintains the following lines of credit:
EUR 600 million multi-currency revolving credit facility with a maturity date of 8 February 2029 and can be drawn in EUR and USD as well as, to an agreed sublimit, in AUD and GBP. The credit revolving facility has an interest margin dependent on credit ratings (S&P, Moody\u2019s or Fitch). As of 31 December 2023, the Group had an undrawn revolving facility of EUR 464 million.
Several credit facilities available to the subsidiaries, mainly in United States, China, Spain, Italy, Australia, India, Indonesia and South Africa.
The following are the contractual maturities of financial liabilities, including estimated interest payments. The contractual cash flows are undiscounted.
\n31 December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
EUR 1,000 | \u00a0 | Carrying amount | Contractual cash flows | 12 months or less | 1 - 2 years | 2 - 5 years | >5 years |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Non-derivative non-current financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bond loan | EUR | 299,359 | 315,000 | 7,500 | 307,500 | - | - |
Bond loan | EUR | 297,374 | 325,800 | 6,450 | 6,450 | 312,900 | - |
Bond loan | EUR | 491,368 | 621,875 | 24,375 | 24,375 | 573,125 | - |
Contingent consideration | CNY | 47,487 | 48,650 | - | 48,650 | - | - |
| \u00a0 | IDR | 25,465 | 26,400 | - | 26,400 | - | - |
| \u00a0 | GBP | 9,516 | 10,700 | - | - | 10,700 | - |
Lease liabilities | 1 | 78,498 | 85,082 | - | 24,187 | 47,988 | 12,906 |
Other liabilities | EUR | 1,400 | 1,400 | - | 288 | 1,112 | - |
Total | \u00a0 | 1,250,467 | 1,434,907 | 38,325 | 437,850 | 945,825 | 12,906 |
Non-derivative current financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent consideration | INR | 7,489 | 7,489 | 7,489 | - | - | - |
| \u00a0 | CNY | 4,588 | 4,588 | 4,588 | - | - | - |
| \u00a0 | EUR | 2,334 | 2,334 | 2,334 | - | - | - |
| \u00a0 | ZAR | 2,212 | 2,212 | 2,212 | - | - | - |
| \u00a0 | GBP | 2,014 | 2,014 | 2,014 | - | - | - |
| \u00a0 | KRW | 1,744 | 1,744 | 1,744 | - | - | - |
| \u00a0 | AUD | 24 | 24 | 24 | - | - | - |
Lease liabilities | \u00a0 | 24,743 | 28,141 | 28,141 | - | - | - |
Other short-term financial liabilities | \u00a0 | 384,404 | 384,404 | 384,404 | - | - | - |
Trade payables | \u00a0 | 391,230 | 391,230 | 391,230 | - | - | - |
Other payables | \u00a0 | 157,869 | 157,869 | 157,869 | - | - | - |
Total | \u00a0 | 978,650 | 982,047 | 982,047 | - | - | - |
31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
EUR 1,000 | \u00a0 | Carrying amount | Contractual cash flows | 12 months or less | 1 - 2 years | 2 - 5 years | >5 years |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Non-derivative non-current financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bond loan | EUR | 594,867 | 654,750 | 13,950 | 13,950 | 626,850 | - |
Contingent consideration | INR | 197,865 | 201,407 | - | 201,407 | - | - |
| \u00a0 | IDR | 39,389 | 41,910 | - | - | 41,910 | - |
| \u00a0 | CNY | 8,821 | 8,956 | - | - | 8,956 | - |
| \u00a0 | MXN | 4,012 | 4,065 | - | 4,065 | - | - |
| \u00a0 | USD | 229 | 248 | - | 248 | - | - |
Lease liabilities | 1 | 65,782 | 71,055 | - | 19,273 | 34,577 | 17,206 |
Other liabilities | EUR | 1,923 | 1,923 | - | 571 | 1,353 | \u00a0 |
Total | \u00a0 | 912,889 | 984,314 | 13,950 | 239,513 | 713,646 | 17,206 |
Non-derivative current financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Schuldscheindarlehen | EUR | 40,000 | 41,162 | 41,162 | - | - | - |
Contingent consideration | INR | 11,686 | 11,686 | 11,686 | - | - | - |
| \u00a0 | EUR | 10,460 | 10,460 | 10,460 | - | - | - |
| \u00a0 | COP | 612 | 612 | 612 | - | - | - |
| \u00a0 | USD | 459 | 459 | 459 | - | - | - |
| \u00a0 | CLP | 45 | 45 | 45 | - | - | - |
| \u00a0 | AUD | 32 | 32 | 32 | - | - | - |
Lease liabilities | \u00a0 | 20,028 | 22,333 | 22,333 | - | - | - |
Other short-term financial liabilities | \u00a0 | 252,720 | 252,720 | 252,720 | - | - | - |
Trade payables | \u00a0 | 389,021 | 389,020 | 389,020 | - | - | - |
Other payables | \u00a0 | 165,255 | 165,255 | 165,255 | - | - | - |
Total | \u00a0 | 890,318 | 893,785 | 893,785 | - | - | - |
Estimated interest payments are based on the EURIBOR, term SOFR and BBSW rates and\u00a0margins prevailing at 31 December 2023 and 2022. Further details of the non-derivative financial liabilities can be found in Note 29.
\nMarket risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group\u2019s income or the value of its holdings of financial instruments. Group management focuses on managing and controlling market risk exposures within acceptable parameters, while optimising the operating result.
\nThe Group buys derivatives, and also incurs financial liabilities, in order to manage market risks. All such transactions are carried out within the guidelines set by Group Management. The Group generally seeks to use hedging instruments to manage volatility in profit or loss.
\nThe Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of Group entities, primarily the Euro (EUR), United States of America Dollar (USD) and the Pound Sterling (GBP).
\nThe Group uses forward exchange contracts to hedge its currency risk, mainly by using contracts having a maturity of less than one year from the reporting date.
\nInterest on borrowings is denominated in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash flows generated by the underlying operations of the Group, primarily EUR and USD. This provides an economic hedge without derivatives being entered into. Hedge accounting is not applied in these circumstances.
\nIn respect of other monetary assets and liabilities denominated in foreign currencies, the Group\u2019s policy is to ensure that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
\nThe Group\u2019s net exposure to foreign currency risk based on notional and hedged amounts of monetary assets and liabilities was as follows:
\n31 December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EUR 1,000 | USD | CAD | BRL | AUD | INR | CNY | KRW | MXN | GBP | IDR | Other | Total |
Non-current assets | 160 | 242 | - | - | 2,254 | 614 | 592 | 978 | - | 143 | 996 | 5,979 |
Current assets | 227,006 | 15,818 | 51,651 | 40,212 | 141,447 | 47,192 | 17,958 | 2,827 | 29,523 | 37,827 | 172,326 | 783,787 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | - |
Non-current liabilities | (9,412) | (10,878) | (2,505) | (3,778) | (4,420) | (49,887) | (2,015) | (2,179) | (10,081) | (27,931) | (12,245) | (135,332) |
Current liabilities | (291,692) | (12,278) | (14,143) | (16,692) | (276,085) | (17,865) | (6,776) | (4,909) | (37,338) | (4,322) | (61,703) | (743,801) |
Net statement of currency risk exposure | (73,938) | (7,096) | 35,003 | 19,742 | (136,804) | (19,947) | 9,759 | (3,283) | (17,897) | 5,718 | 99,375 | (89,367) |
31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EUR 1,000 | USD | CAD | BRL | AUD | INR | CHF | KRW | ZAR | GBP | IDR | Other | Total |
Non-current assets | 126 | 360 | 371 | - | 997 | 5 | 318 | 6 | - | 33 | 810 | 3,027 |
Current assets | 207,766 | 9,252 | 33,363 | 29,735 | 100,188 | (2,813) | 22,780 | 17,758 | 25,484 | 31,382 | 114,167 | 589,062 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | - |
Non-current liabilities | (12,510) | (7,097) | (965) | (5,825) | (215,295) | (400) | (77) | (12) | (465) | (60,385) | (9,332) | (312,363) |
Current liabilities | (322,526) | (16,197) | (12,301) | (16,125) | (6,813) | (2,831) | (2,710) | (5,588) | (19,817) | (15,870) | (73,938) | (494,715) |
Net statement of currency risk exposure | (127,143) | (13,682) | 20,468 | 7,786 | (120,923) | (6,039) | 20,310 | 12,164 | 5,202 | (44,840) | 31,707 | (214,990) |
There are no mitigating effects of hedged net liability positions in USD (2022: EUR 0.4 million).
\nThe following significant exchange rates applied during the year:
\n| \u00a0 | 2023 | 2022 | 2023 | 2022 |
|---|---|---|---|---|
| \u00a0 | Average rate | Reporting date spot rate | ||
USD | 0.925037 | 0.952017 | 0.904977 | 0.937559 |
CAD | 0.684542 | 0.730563 | 0.682967 | 0.692521 |
BRL | 0.185151 | 0.184733 | 0.186905 | 0.179598 |
AUD | 0.613367 | 0.660255 | 0.618100 | 0.635900 |
INR | 0.011203 | 0.012122 | 0.010881 | 0.011342 |
CNY | 0.130588 | 0.141556 | 0.127374 | 0.135903 |
KRW | 0.000706 | 0.000739 | 0.000698 | 0.000744 |
MXN | 0.052288 | 0.047341 | 0.053506 | 0.048121 |
GBP | 1.150166 | 1.172905 | 1.150682 | 1.127485 |
IDR | 0.000061 | 0.000064 | 0.000059 | 0.000061 |
A 10% strengthening of the EUR, as indicated below, against the USD, CAD, BRL, AUD, INR, CNY, KRW, MXN, GBP and IDR at 31 December 2023 and 2022 would have increased/(decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecasted sales and purchases.
\n| \u00a0 | 2023 | 2023 | 2022 | 2022 |
|---|---|---|---|---|
EUR 1,000 | Equity | Profit or loss | Equity | Profit or loss |
USD | (51,229) | 13,862 | (49,580) | 12,762 |
CAD | (7,793) | (8) | (8,382) | (12) |
BRL | (10,954) | - | (10,730) | - |
AUD | (10,305) | (69) | (10,241) | 1,868 |
INR | (42,976) | - | (44,041) | - |
CNY | (20,395) | - | (7,292) | - |
KRW | (3,780) | - | (3,514) | - |
MXN | (7,768) | - | (5,694) | - |
GBP | (8,444) | (34) | (4,942) | (825) |
IDR | (13,215) | - | (12,632) | - |
A 10% weakening of the EUR against the above currencies at 31 December 2022 would have had the equal but opposite effect on the amounts shown above, on the basis that all other variables remain constant.
\nThe Group pursues a policy of ensuring that a substantial part of its exposure to changes in interest rates on long-term financing is on a fixed rate basis, taking into account assets with exposure to changes in interest rates. If required the Group makes uses of interest rate swap contracts.
\nAt the reporting date the interest rate profile of the Group\u2019s interest-bearing financial instruments was:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
Carrying amounts | \u00a0 | \u00a0 |
| \u00a0 | \u00a0 | \u00a0 |
Fixed rate instruments | \u00a0 | \u00a0 |
Financial liabilities | (596,734) | (594,867) |
Total | (596,734) | (594,867) |
| \u00a0 | \u00a0 | \u00a0 |
Variable rate instruments | \u00a0 | \u00a0 |
Financial assets | 394,462 | 222,005 |
Financial liabilities | (1,000,817) | (403,748) |
Total | (606,355) | (181,743) |
The Group does not account for any\u00a0fixed\u00a0rate\u00a0financial asset and liability at fair value through profit and loss.
\nNote 29 details the variable interest rates applicable for the non-current loans.
\nOperational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Group\u2019s processes, personnel, technology and infrastructure and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. Operational risks arise from all of the Group\u2019s operations.
\nThe Group\u2019s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the Group\u2019s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity.
\nThe primary objective when managing capital is to safeguard the Group\u2019s ability to continue as a going concern by means of optimising the debt and equity balance. The Company does not have an explicit return on capital policy. There have been no changes in the capital management policies during the year. The Group is not subject to any externally imposed capital requirements. Capital is considered by the Company to be equity as shown in the statement of financial position.
\nThe Group\u2019s net liabilities and adjusted equity at the reporting date are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Total liabilities | 2,428,389 | 1,970,094 |
Less: Cash and cash equivalents | (394,462) | (222,005) |
Net liabilities | 2,033,927 | 1,748,089 |
| \u00a0 | \u00a0 | \u00a0 |
Total equity | 1,726,185 | 1,673,416 |
Less: Amounts accumulated in equity relating to cash flow hedges | 149 | 210 |
Adjusted equity | 1,726,334 | 1,673,626 |
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group\u2019s receivables from customers.
\nThe Group\u2019s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the demographics of the Group\u2019s customer base, including the default risk of the industry and country in which customers operate, as these factors \u00a0may have an influence on credit risk. This has been of increased importance due to the COVID-19 pandemic. There is no geographical concentration of credit risk nor significant credit risk on individual customer level.
\nThe Group has established a credit policy in which each new customer is analysed individually for creditworthiness before the Group\u2019s payment and delivery terms and conditions are offered. The Group\u2019s review includes the use of external ratings, when available, and in some cases bank references. Purchase limits are established for each customer, which represent the maximum open amount. These limits are reviewed periodically.
\nCustomers that fail to meet the Group\u2019s benchmark creditworthiness may transact with the Group only on a prepayment basis.
\nAt the reporting date, there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset.
\nThe Group establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that are expected but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets, adjusted for forward-looking information.
\nTo mitigate the counterparty risk with financial institutions the Group's policy is to make use of financial institutions which are investment grade. The Group\u2019s main financial institutions are systemically important and are under close supervision by their respective financial regulatory bodies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-583": { "value": "\nLiquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group\u2019s approach to manage liquidity is to ensure, as far as possible, that it will always have sufficient cash to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group\u2019s reputation.
\nThe Group typically ensures that it generally has sufficient cash on demand to meet expected operational expenses for the next twelve months, including the servicing of financial obligations. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted.
\nIn addition, the Group maintains the following lines of credit:
EUR 600 million multi-currency revolving credit facility with a maturity date of 8 February 2029 and can be drawn in EUR and USD as well as, to an agreed sublimit, in AUD and GBP. The credit revolving facility has an interest margin dependent on credit ratings (S&P, Moody\u2019s or Fitch). As of 31 December 2023, the Group had an undrawn revolving facility of EUR 464 million.
Several credit facilities available to the subsidiaries, mainly in United States, China, Spain, Italy, Australia, India, Indonesia and South Africa.
The following are the contractual maturities of financial liabilities, including estimated interest payments. The contractual cash flows are undiscounted.
\n31 December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
EUR 1,000 | \u00a0 | Carrying amount | Contractual cash flows | 12 months or less | 1 - 2 years | 2 - 5 years | >5 years |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Non-derivative non-current financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bond loan | EUR | 299,359 | 315,000 | 7,500 | 307,500 | - | - |
Bond loan | EUR | 297,374 | 325,800 | 6,450 | 6,450 | 312,900 | - |
Bond loan | EUR | 491,368 | 621,875 | 24,375 | 24,375 | 573,125 | - |
Contingent consideration | CNY | 47,487 | 48,650 | - | 48,650 | - | - |
| \u00a0 | IDR | 25,465 | 26,400 | - | 26,400 | - | - |
| \u00a0 | GBP | 9,516 | 10,700 | - | - | 10,700 | - |
Lease liabilities | 1 | 78,498 | 85,082 | - | 24,187 | 47,988 | 12,906 |
Other liabilities | EUR | 1,400 | 1,400 | - | 288 | 1,112 | - |
Total | \u00a0 | 1,250,467 | 1,434,907 | 38,325 | 437,850 | 945,825 | 12,906 |
Non-derivative current financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent consideration | INR | 7,489 | 7,489 | 7,489 | - | - | - |
| \u00a0 | CNY | 4,588 | 4,588 | 4,588 | - | - | - |
| \u00a0 | EUR | 2,334 | 2,334 | 2,334 | - | - | - |
| \u00a0 | ZAR | 2,212 | 2,212 | 2,212 | - | - | - |
| \u00a0 | GBP | 2,014 | 2,014 | 2,014 | - | - | - |
| \u00a0 | KRW | 1,744 | 1,744 | 1,744 | - | - | - |
| \u00a0 | AUD | 24 | 24 | 24 | - | - | - |
Lease liabilities | \u00a0 | 24,743 | 28,141 | 28,141 | - | - | - |
Other short-term financial liabilities | \u00a0 | 384,404 | 384,404 | 384,404 | - | - | - |
Trade payables | \u00a0 | 391,230 | 391,230 | 391,230 | - | - | - |
Other payables | \u00a0 | 157,869 | 157,869 | 157,869 | - | - | - |
Total | \u00a0 | 978,650 | 982,047 | 982,047 | - | - | - |
31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
EUR 1,000 | \u00a0 | Carrying amount | Contractual cash flows | 12 months or less | 1 - 2 years | 2 - 5 years | >5 years |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Non-derivative non-current financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bond loan | EUR | 594,867 | 654,750 | 13,950 | 13,950 | 626,850 | - |
Contingent consideration | INR | 197,865 | 201,407 | - | 201,407 | - | - |
| \u00a0 | IDR | 39,389 | 41,910 | - | - | 41,910 | - |
| \u00a0 | CNY | 8,821 | 8,956 | - | - | 8,956 | - |
| \u00a0 | MXN | 4,012 | 4,065 | - | 4,065 | - | - |
| \u00a0 | USD | 229 | 248 | - | 248 | - | - |
Lease liabilities | 1 | 65,782 | 71,055 | - | 19,273 | 34,577 | 17,206 |
Other liabilities | EUR | 1,923 | 1,923 | - | 571 | 1,353 | \u00a0 |
Total | \u00a0 | 912,889 | 984,314 | 13,950 | 239,513 | 713,646 | 17,206 |
Non-derivative current financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Schuldscheindarlehen | EUR | 40,000 | 41,162 | 41,162 | - | - | - |
Contingent consideration | INR | 11,686 | 11,686 | 11,686 | - | - | - |
| \u00a0 | EUR | 10,460 | 10,460 | 10,460 | - | - | - |
| \u00a0 | COP | 612 | 612 | 612 | - | - | - |
| \u00a0 | USD | 459 | 459 | 459 | - | - | - |
| \u00a0 | CLP | 45 | 45 | 45 | - | - | - |
| \u00a0 | AUD | 32 | 32 | 32 | - | - | - |
Lease liabilities | \u00a0 | 20,028 | 22,333 | 22,333 | - | - | - |
Other short-term financial liabilities | \u00a0 | 252,720 | 252,720 | 252,720 | - | - | - |
Trade payables | \u00a0 | 389,021 | 389,020 | 389,020 | - | - | - |
Other payables | \u00a0 | 165,255 | 165,255 | 165,255 | - | - | - |
Total | \u00a0 | 890,318 | 893,785 | 893,785 | - | - | - |
Estimated interest payments are based on the EURIBOR, term SOFR and BBSW rates and\u00a0margins prevailing at 31 December 2023 and 2022. Further details of the non-derivative financial liabilities can be found in Note 29.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-584": { "value": "\nMarket risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group\u2019s income or the value of its holdings of financial instruments. Group management focuses on managing and controlling market risk exposures within acceptable parameters, while optimising the operating result.
\nThe Group buys derivatives, and also incurs financial liabilities, in order to manage market risks. All such transactions are carried out within the guidelines set by Group Management. The Group generally seeks to use hedging instruments to manage volatility in profit or loss.
\nThe Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of Group entities, primarily the Euro (EUR), United States of America Dollar (USD) and the Pound Sterling (GBP).
\nThe Group uses forward exchange contracts to hedge its currency risk, mainly by using contracts having a maturity of less than one year from the reporting date.
\nInterest on borrowings is denominated in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash flows generated by the underlying operations of the Group, primarily EUR and USD. This provides an economic hedge without derivatives being entered into. Hedge accounting is not applied in these circumstances.
\nIn respect of other monetary assets and liabilities denominated in foreign currencies, the Group\u2019s policy is to ensure that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
\nThe Group\u2019s net exposure to foreign currency risk based on notional and hedged amounts of monetary assets and liabilities was as follows:
\n31 December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EUR 1,000 | USD | CAD | BRL | AUD | INR | CNY | KRW | MXN | GBP | IDR | Other | Total |
Non-current assets | 160 | 242 | - | - | 2,254 | 614 | 592 | 978 | - | 143 | 996 | 5,979 |
Current assets | 227,006 | 15,818 | 51,651 | 40,212 | 141,447 | 47,192 | 17,958 | 2,827 | 29,523 | 37,827 | 172,326 | 783,787 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | - |
Non-current liabilities | (9,412) | (10,878) | (2,505) | (3,778) | (4,420) | (49,887) | (2,015) | (2,179) | (10,081) | (27,931) | (12,245) | (135,332) |
Current liabilities | (291,692) | (12,278) | (14,143) | (16,692) | (276,085) | (17,865) | (6,776) | (4,909) | (37,338) | (4,322) | (61,703) | (743,801) |
Net statement of currency risk exposure | (73,938) | (7,096) | 35,003 | 19,742 | (136,804) | (19,947) | 9,759 | (3,283) | (17,897) | 5,718 | 99,375 | (89,367) |
31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EUR 1,000 | USD | CAD | BRL | AUD | INR | CHF | KRW | ZAR | GBP | IDR | Other | Total |
Non-current assets | 126 | 360 | 371 | - | 997 | 5 | 318 | 6 | - | 33 | 810 | 3,027 |
Current assets | 207,766 | 9,252 | 33,363 | 29,735 | 100,188 | (2,813) | 22,780 | 17,758 | 25,484 | 31,382 | 114,167 | 589,062 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | - |
Non-current liabilities | (12,510) | (7,097) | (965) | (5,825) | (215,295) | (400) | (77) | (12) | (465) | (60,385) | (9,332) | (312,363) |
Current liabilities | (322,526) | (16,197) | (12,301) | (16,125) | (6,813) | (2,831) | (2,710) | (5,588) | (19,817) | (15,870) | (73,938) | (494,715) |
Net statement of currency risk exposure | (127,143) | (13,682) | 20,468 | 7,786 | (120,923) | (6,039) | 20,310 | 12,164 | 5,202 | (44,840) | 31,707 | (214,990) |
There are no mitigating effects of hedged net liability positions in USD (2022: EUR 0.4 million).
\nThe following significant exchange rates applied during the year:
\n| \u00a0 | 2023 | 2022 | 2023 | 2022 |
|---|---|---|---|---|
| \u00a0 | Average rate | Reporting date spot rate | ||
USD | 0.925037 | 0.952017 | 0.904977 | 0.937559 |
CAD | 0.684542 | 0.730563 | 0.682967 | 0.692521 |
BRL | 0.185151 | 0.184733 | 0.186905 | 0.179598 |
AUD | 0.613367 | 0.660255 | 0.618100 | 0.635900 |
INR | 0.011203 | 0.012122 | 0.010881 | 0.011342 |
CNY | 0.130588 | 0.141556 | 0.127374 | 0.135903 |
KRW | 0.000706 | 0.000739 | 0.000698 | 0.000744 |
MXN | 0.052288 | 0.047341 | 0.053506 | 0.048121 |
GBP | 1.150166 | 1.172905 | 1.150682 | 1.127485 |
IDR | 0.000061 | 0.000064 | 0.000059 | 0.000061 |
A 10% strengthening of the EUR, as indicated below, against the USD, CAD, BRL, AUD, INR, CNY, KRW, MXN, GBP and IDR at 31 December 2023 and 2022 would have increased/(decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecasted sales and purchases.
\n| \u00a0 | 2023 | 2023 | 2022 | 2022 |
|---|---|---|---|---|
EUR 1,000 | Equity | Profit or loss | Equity | Profit or loss |
USD | (51,229) | 13,862 | (49,580) | 12,762 |
CAD | (7,793) | (8) | (8,382) | (12) |
BRL | (10,954) | - | (10,730) | - |
AUD | (10,305) | (69) | (10,241) | 1,868 |
INR | (42,976) | - | (44,041) | - |
CNY | (20,395) | - | (7,292) | - |
KRW | (3,780) | - | (3,514) | - |
MXN | (7,768) | - | (5,694) | - |
GBP | (8,444) | (34) | (4,942) | (825) |
IDR | (13,215) | - | (12,632) | - |
A 10% weakening of the EUR against the above currencies at 31 December 2022 would have had the equal but opposite effect on the amounts shown above, on the basis that all other variables remain constant.
\nThe Group pursues a policy of ensuring that a substantial part of its exposure to changes in interest rates on long-term financing is on a fixed rate basis, taking into account assets with exposure to changes in interest rates. If required the Group makes uses of interest rate swap contracts.
\nAt the reporting date the interest rate profile of the Group\u2019s interest-bearing financial instruments was:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
Carrying amounts | \u00a0 | \u00a0 |
| \u00a0 | \u00a0 | \u00a0 |
Fixed rate instruments | \u00a0 | \u00a0 |
Financial liabilities | (596,734) | (594,867) |
Total | (596,734) | (594,867) |
| \u00a0 | \u00a0 | \u00a0 |
Variable rate instruments | \u00a0 | \u00a0 |
Financial assets | 394,462 | 222,005 |
Financial liabilities | (1,000,817) | (403,748) |
Total | (606,355) | (181,743) |
The Group does not account for any\u00a0fixed\u00a0rate\u00a0financial asset and liability at fair value through profit and loss.
\nNote 29 details the variable interest rates applicable for the non-current loans.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-585": { "value": "\nIn presenting information on the basis of operating segments, segment revenue is based on the geographical location of the Group\u00b4s operations. Segment assets are based on the geographical location of the assets with the exception of assets related to holding companies, which are presented in a separate reporting unit.
\nTransactions between companies within an operating segment have been eliminated. Transactions between operating segments are based on arm\u2019s-length principle and are not included in the reported revenue per segment as the reported revenue per segment relates to revenue with third parties.
\nA key performance indicator for controlling the results of the operating segments is Operating EBITA.
\nOperating EBITA is defined as the sum of the result from operating activities, amortisation of intangible assets, and non-recurring items. Non-recurring items, as disclosed in Note 11, include:
income related to divestments
cost of corporate restructurings and reorganisations
cost related to realised and non-realised acquisitions
While the amounts included in Operating EBITA are derived from the Group\u2019s financial information, it is not a financial measure determined in accordance with adopted IFRS and should not be considered as an alternative to operating income or result from operating activities as a sole indicator of the Group\u2019s performance or as an alternative to cash flows as a measure of the Group\u2019s liquidity. The Group uses Operating EBITA as a key performance indicator in its business operations in order to, among other things, develop budgets, measure its performance against those budgets and evaluate the performance of its operations.
\nThe bridge from result from operating activities to operating EBITA is as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Result from operating activities | 428,523 | 461,758 |
| \u00a0 | \u00a0 | \u00a0 |
Amortisation of intangible assets | 80,934 | 81,478 |
Non-recurring items | 5,076 | 11,217 |
Operating EBITA | 514,533 | 554,453 |
The non-recurring income and expenses included in the result from operating activities of 2023 and 2022 mainly relate to income from divestments of business and assets, costs of acquisitions of businesses and costs related to one-off adjustments to the organisation, which included in 2022 the winding down of the operations in Russia.
\nOperating expenses of non-operating companies are reported in the segment Holding companies. Inter-segmented amounts receivable and amounts payable are not considered in the value of the total assets and total liabilities of each segment. The results of the operating segments are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Revenue | 1,942,612 | 2,006,391 |
Gross profit | 529,689 | 529,731 |
Operating EBITA | 241,984 | 246,554 |
Result from operating activities | 220,060 | 215,810 |
| \u00a0 | \u00a0 | \u00a0 |
Total Assets | 1,152,439 | 1,074,358 |
Total Liabilities | 364,379 | 338,321 |
EUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Revenue | 1,413,152 | 1,591,720 |
Gross profit | 340,380 | 382,680 |
Operating EBITA | 154,982 | 194,882 |
Result from operating activities | 136,910 | 175,249 |
| \u00a0 | \u00a0 | \u00a0 |
Total Assets | 827,048 | 801,789 |
Total Liabilities | 228,921 | 241,934 |
EUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Revenue | 1,086,878 | 1,003,382 |
Gross profit | 252,501 | 234,736 |
Operating EBITA | 150,604 | 145,094 |
Result from operating activities | 110,225 | 107,081 |
| \u00a0 | \u00a0 | \u00a0 |
Total Assets | 1,609,501 | 1,346,433 |
Total Liabilities | 570,464 | 473,076 |
EUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Operating EBITA | (33,000) | (32,078) |
Result from operating activities | (38,672) | (36,414) |
| \u00a0 | \u00a0 | \u00a0 |
Total Assets | 565,586 | 420,930 |
Total Liabilities | 1,264,625 | 916,763 |
Reported revenue per segment relates to revenue with third parties, hence no inter-segment revenues are included. IMCD and its operating segments have a diverse customer base of about 64,000 customers in many countries and of various sizes. IMCD and its segments do not rely on a single customer or a single group of customers for its operations. With a supplier base of approximately 3,200 suppliers and product portfolio of about 48,000 products, the same applies with regard to the reliance on a single supplier or a single group of suppliers and a single product or range of products.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-586": { "value": "\nAs a group we remain focused on aligning ourselves with industry leaders, grow our market share organically and through selected acquisitions, and continue to optimise our business model. The Group completed thirteen acquisitions and signed an additional five acquisition agreements during the financial year 2023 (all numbers are based on local GAAP).
\nOn 28 February 2023, IMCD acquired 100% of the shares in Orange Chemicals Ltd (\u201cOrange Chemicals\u201d), a distributor of performance chemicals throughout the UK and Ireland. Orange Chemicals, headquartered in Winchester, generated revenues of approximately EUR 30 million in the financial year 2022 and adds seven employees to the IMCD UK team.
\nOn 15 March 2023, IMCD completed the acquisition of Shanghai Sanrise Industries & Development Co., Ltd. (\u201cSanrise\u201d), one of the leading distributors in the personal care markets in China. Sanrise offers a wide range of personal care and industrial solutions with a key focus on personal care applications. With approximately 60 employees, Sanrise generated revenues of approximately EUR 90 million in 2022. The transaction took place in two tranches, with first 70% of Sanrise\u2019s share capital was acquired in March 2023, and the remaining 30% will be acquired in 2025.
\nOn 20 April 2023, IMCD acquired 100% of the share capital of ACM AB (\u201cACM\u201d), a distributor of minerals and chemicals. Based in Sweden, ACM is mostly active within the coatings, adhesives, paper, plastics, rubber, and construction industries. With six employees ACM generated revenues of approximately EUR 13 million in 2022.
\nOn 20 April 2023, IMCD acquired 100% of the shares in Tradeimpex Polymers (India) Private Limited (\u201cTradeimpex\u201d), a distributor of high-performance polymers and engineering plastics. With 24 employees, Tradeimpex generated revenues of approximately EUR 39 million in the financial year that ended on March 31, 2022.
\nOn 1 May 2023, IMCD acquired the import and distribution business of Tagra Biotechnologies Ltd. (\u201cTagra Distribution Division\u201d), a distributor and supplier of cosmetic raw materials and ingredients for the beauty and personal care industry in Israel. In 2022, Tagra Distribution Division generated revenues of approximately EUR 7 million and adds seven employees to the IMCD Israel team.
\nOn 19 May 2023, IMCD acquired 100% of the shares of Allianz Group International S.A.S. (\"Allianz). Allianz is a distributor of active pharmaceutical ingredients (API) and serves the Colombian market. Headquartered in Bogot\u00e1, Colombia, Allianz has 25 employees and generated revenues of approximately EUR 7 million in 2022.
\nOn 7 June 2023, IMCD acquired 100% of the shares of KOI Products Solutions and Engineering Ltd (\u201cKOI Products Solutions\u201d). KOI Products Solutions has partnerships with some of the world\u2019s leading suppliers of speciality products and predominantly serves the composite, paint, cosmetics, coatings, and ink markets. The company, based in Petach Tikva, Israel, generated revenues of approximately EUR 8 million in the financial year 2022, and adds 13 employees to the IMCD Israel team.
\nOn 3 July 2023, IMCD acquired 100% of the shares in CPS Chemical Oil-Tech (Pty) Ltd (\u201cCPS Oil-Tech\u201d), a distributor of raw materials to the petroleum, additive, grease manufacturing and other industry related segments in South Africa. With 8 employees, CPS Oil-Tech generated revenues of approximately EUR 12 million in the financial year that ended on February 28, 2022.
\nOn 13 July 2023, IMCD acquired 90% of the shares of O&3 Limited, (\u201cO&3\u201d), an industry leading supplier of speciality natural ingredients to the global beauty and personal care markets. With 69 employees, across its offices and facilities in Ripon (UK), Warka (Poland) and New York (USA), O&3 generated revenue of approximately EUR 37 million in the financial year that ended on March 31, 2023.
\nOn 2 August 2023, IMCD acquired 100% of the shares of Sachs Chemical and on 29 September 2023, IMCD acquired 100% of the shares of SCI Chemical Logistics SA (jointly \"Sachs\"). Headquartered in San Juan, Puerto Rico, Sachs is a speciality chemicals distributor, providing customised solutions for the pharmaceutical industry. With 38 employees, Sachs generated revenues of approximately EUR 48 million in 2022.
\nOn 3 August 2023, IMCD acquired 100% of the shares of Representaciones de Materias Primas Industriales Limitada (\u201cMAPRIN\u201d). MAPRIN is a raw materials distributor for the beauty and personal care industry, headquartered in Santiago, Chile. With 20 employees MAPRIN generated revenue of approximately EUR 8 million in 2022.
\nOn 19 October 2023, IMCD acquired 100% of the shares in Needfill Co., Ltd. (\"Needfill\") in South Korea, Needfill serves the paint, coatings, inks, textiles, electronics, and polymer markets. Needfill, based in Seoul, generated a revenue of approximately EUR 18 million in 2022 and has 18 employees.
\nOn 6 November 2023, IMCD acquired 100% of the shares of the speciality distribution company Brylchem Pte Ltd and the business of Chemipac Pte Ltd. in Singapore, and the business of CMS Marketing Trading Co., Ltd in Vietnam (\"jointly Brylchem Group\"). Brylchem Group offers a wide range of products in the coatings, construction, advanced materials, agrochemical, home care and industrial cleaning, feed and veterinary, and lubricants industries, for the Singapore and Vietnam markets. With approximately 50 employees, Brylchem Group generated revenues of approximately EUR 58 million in 2022.
\nThe aforementioned transactions added EUR 146.1million of revenue and EUR 11.1 million of result for the year to the Group\u2019s results in 2023. If the acquisitions had occurred on 1 January 2023, management estimates that the consolidated revenue would have been EUR 4,588.8 million and the consolidated net profit would have been EUR 303.3 million. In determining these amounts, management has assumed that the fair value adjustments, determined provisionally, that arose on the date of acquisition would have been the same if the acquisition had occurred on 1 January 2023. The total consideration related to the aforementioned transactions, transferred in cash in 2023, amounts to EUR 364.7 million. As of 31 December 2023, the deferred and contingent considerations payable amount to EUR 86.9 million.
\nIn addition to the transactions closed in 2023, IMCD signed five agreements.
\nOn 18 May 2023, IMCD signed an agreement to acquire 100% of the shares of the speciality distribution company in Malaysia, Euro Chemo-Pharma Sdn Bhd (\"Euro Chemo-Pharma\") and its wholly owned subsidiary, Biofresh Green Sdn Bhd (\"Biofresh\"). Together with 124 employees, Euro Chemo-Pharma and Biofresh are offering a wide range of products, mainly food, pharmaceutical and personal care applications and generated revenues of approximately EUR 55 million in the financial year ended on June 30, 2022. The transaction was closed on 29 February 2024.
\nOn 10 November 2023, IMCD signed an agreement to acquire two business lines from CJ Shah & Company for Cellulose Acetate Butyrate, Coalescing Agent, Polyolefin Polymers, and other chemicals primarily for Paints, Coatings, Adhesives and Lifesciences applications. These two business lines generated a revenue of approximately EUR 25 million in the financial year that ended on March 31, 2023 with 20 employees. The transaction was closed on 22 February 2024.
\nOn 28 November 2023, IMCD signed an agreement to acquire the business of the speciality distribution company Guangzhou RBD Chemical Co., Ltd. in China (\"RBD\"). RBD focuses mainly on the lubricant additives and represents leading global suppliers. RBD is based in Guangzhou, China, and generated a revenue of approximately CNY 75 million (ca. EUR 10 million) in 2022 and has 12 employees. The transaction was closed on 1 February 2024.
\nOn 22 December 2023, IMCD signed an agreement to acquire the distribution business of Joli Foods S.A.S. (\"Joli Foods\") to expand its food and nutrition business and product portfolio in Colombia. Joli Foods is based in Bogota and generated a revenue of approximately USD 16 million (ca. EUR 15 million) in 2022 and will add eleven employees to the IMCD Colombian team. The transaction was closed on 14 February 2024.
\nOn 15 December 2023, IMCD signed an agreement to acquire 100% of the shares of Valuetree Ingredients Private Limited (\"Valuetree\") to expand its beauty and personal care footprint in India. Valuetree employs a team of 44 employees and generated a revenue of approximately INR 4.4 billion (ca. EUR 48 million) in the financial year that ended on March 31, 2023. The transaction will take place in two tranches. On 9 January 2024, IMCD acquired 70% of the share capital from the founders and the remaining 30% will be acquired in 2025.
\nNext to the five agreements that IMCD signed but did not yet close in 2023, IMCD signed an agreement on 16 February 2024 to acquire the business of the speciality distribution company ResChem Technologies Pty Ltd and ResChem Trust in Australia and New Zealand (\"ResChem\"). Established in 2007, ResChem specialises in resins, additives and pigments for use in inks, coatings, adhesives and construction applications. ResChem represents leading global suppliers which are complementary to IMCD's portfolio. ResChem is headquartered in Sydney, Australia, generated a revenue of approximately AUD 25 million (ca. EUR 15 million) in 2023 with 15 employees and strengthens IMCD's technical expertise with an application laboratory based in Sydney. The closing of the transaction is subject to customary closing conditions and is expected to take place in the second quarter of 2024.
\nIn December 2023, IMCD exercised its call option to acquire the remaining 30% interest of the shares from the minority shareholders of Signet. The completion of the acquisition of the remaining 30% was executed on the basis of the share purchase agreement of September 2020. As IMCD obtained full control over Signet as per November 2020, this purchase price obligation was included in IMCD\u2019s reported net debt position and results of Signet are consolidated in full into the IMCD figures since the November 2020 acquisition date. As a result, this completion, as such, will not impact the reported leverage or earnings levels of IMCD. Refer to Note 27 and Note 29 for details of the transaction.
\nPayment of the consideration for the remaining 30% of the shares in Signet was effected on 1 February 2024.
\nThe identifiable assets recognised and liabilities assumed are recognised on the basis of provisional purchase price allocation. Based on the information currently available we do not anticipate significant adjustments to the purchase price allocation. At the acquisition dates the recognised amounts are as follows:
\nEUR 1,000 | Note | Sanrise | Sachs | Brylchem Pte. Ltd. | Other acquisitions | Total |
|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Property, plant and equipment | 650 | 3,343 | 51 | 4,499 | 8,544 | |
Intangible assets | 76,851 | 33,118 | 14,351 | 48,066 | 172,385 | |
Equity-accounted investees | \u00a0 | - | - | - | - | - |
Deferred tax assets | 1,880 | 55 | 225 | 2,297 | 4,457 | |
Other financial assets | \u00a0 | 116 | - | 27 | 1,197 | 1,340 |
Inventories | \u00a0 | 14,587 | 2,633 | 4,364 | 21,521 | 43,106 |
Trade and other receivables | \u00a0 | 9,761 | 4,299 | 3,889 | 32,958 | 50,906 |
| \u00a0 | \u00a0 | - | - | - | - | \u00a0 |
Cash and cash equivalents | \u00a0 | 6,213 | 193 | 1,989 | 12,557 | 20,952 |
Loans and borrowings | \u00a0 | (268) | (2,207) | - | (5,159) | (7,635) |
Other short-term financial liabilities | \u00a0 | (3,390) | (678) | - | (10,502) | (14,570) |
Employee benefits and other provisions | (7,267) | (522) | - | (2,882) | (10,671) | |
Deferred tax liabilities | (19,339) | (1,237) | (2,440) | (10,635) | (33,651) | |
Trade and other payables | \u00a0 | (4,536) | (3,962) | (2,410) | (26,119) | (37,027) |
Total net identifiable assets | \u00a0 | 75,258 | 35,035 | 20,048 | 67,796 | 198,137 |
The intangible assets recognised primarily relate to supplier relationships acquired.
\nThe supplier relations have been determined by applying the multi-period excess earnings method. This method considers the present value of net cash flows expected to be generated by the supplier relationships, by excluding any cash flows related to contributory assets. The cash flows which have been used as input were based on the projections made by the sellers, adjusted for future supplier losses due to exclusivity conflicts, projected market developments based on external sources and our own expectations based on our extensive market knowledge. Furthermore, attrition rates are determined based on the annual decrease in revenues related to suppliers (when applicable) in the most recent financial years, adjusted for annual inflation. These attrition rates have been applied in the projections.
\nThe gross contractual value of the trade and other receivables acquired amounts to EUR 53.3 million of which EUR 9.8 million relates to Sanrise, EUR 4.6 million relates to Sachs and EUR 4.2 million relates to Brylchem.
\nGoodwill recognised as a result of the acquisitions in the financial year is as follows.
\nEUR 1,000 | Note | Sanrise | Sachs | Brylchem Pte. Ltd. | Other acquisitions | Total |
|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total considerations | \u00a0 | 174,947 | 72,087 | 47,528 | 157,052 | 451,614 |
Less: Fair value of identifiable net assets | \u00a0 | 75,257 | 35,035 | 22,681 | 65,164 | 198,137 |
Goodwill | 99,690 | 37,052 | 24,848 | 91,888 | 253,477 |
Goodwill\u00a0recognised\u00a0as\u00a0a\u00a0result\u00a0of\u00a0the\u00a0acquisitions\u00a0in\u00a0the financial year relates to Orange Chemicals (UK), Sanrise (China), ACM (Sweden), Tradeimpex (India), Tagra Distribution Division (Israel), Allianz (Colombia), KOI Products Solutions (Israel), CPS Oil-Tech (South Africa), O&3 (UK), Sachs (Puerto Rico), SCI Chemical Logistics (Costa Rica), MAPRIN (Chile), Needfill (South Korea) and the Brylchem Group (Singapore and Vietnam). The goodwill is mainly attributable to the skills and technical talent of the workforce, the commercial relationships, the international network and the synergies expected to be achieved from integrating the acquired companies into the Group's existing distribution business.
\nOf the total recognised goodwill, 39% relates to Sanrise, 15% to Sachs and 10% to Brylchem and 36% to the other acquired businesses.
\nAmortisation of the acquisitions are not eligible for deduction from taxable income.
\nIn 2023, the\u00a0Group incurred acquisition-related costs of\u00a0EUR\u00a07.2 million (2022: EUR\u00a04.5 million) predominantly related to external legal fees and due diligence costs for completed and non-completed acquisitions. The acquisition-related costs are included in other operating expenses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-587": { "value": "\nThe Group generates revenue primarily from the sale and distribution of speciality chemicals and ingredients. Other sources of revenue include revenue from commission where the Group acts as agent in the sale and distribution of speciality chemicals and ingredients.
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Sales of goods | 4,430,812 | 4,587,514 |
Commissions | 11,830 | 13,979 |
Total Revenue | 4,442,642 | 4,601,493 |
Revenue is measured based on the consideration specified in a contract with a customer. The Group recognises revenue when it transfers control over a good or service to a customer. The nature and timing of the fulfilment of performance obligations is disclosed in contracts with customers upon the sale and distribution of speciality chemicals and ingredients. The Group recognizes revenue when control is transferred which is at the moment that ownership is transferred to the customer, primarily based on agreed incoterms.
\nIn the following tables, revenue from contracts with customers is disaggregated by primary geographical market and their market segments, being Life Science and Industrial.
\nThe breakdown of revenue by geographical market is as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Netherlands | 69,165 | 85,581 |
Rest of EMEA | 1,873,447 | 1,920,810 |
EMEA | 1,942,612 | 2,006,391 |
North America | 990,691 | 1,157,248 |
Latin America | 422,460 | 434,472 |
Asia-Pacific | 1,086,878 | 1,003,382 |
Total Geographical Market | 4,442,642 | 4,601,493 |
IMCD's business model is based on long lasting relationships with suppliers of speciality chemicals and ingredients. In order to provide more insight in the segmentation per market, IMCD has decided to break down the sales in the market segments Life Science and Industrial.
\nLife Science consists of the following lines of business: Pharmaceuticals, Beauty & Personal Care, Food & Nutrition and Home Care and I&I. In general, the lines of business within Life Science historically have been less sensitive to economic fluctuations. Furthermore, the Life Science segment consists of lower order volumes and higher margins than the Industrials market segment.
\nThe Industrial segment contains the lines of business of Coatings & Construction, Lubricants & Energy, Industrial Solutions and Advanced Materials. This segment has a more cyclical nature as the performance is dependent on the developments of, amongst others, the housing and real estate, automotive and oil & gas markets.
\nThe breakdown of sales of goods per market segment is as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Life Science | 2,328,782 | 2,290,944 |
Industrial | 2,102,030 | 2,296,570 |
Total Market Segments | 4,430,812 | 4,587,514 |
EUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Other income | 27,532 | 24,822 |
Total Other income | 27,532 | 24,822 |
Other income primarily relates to logistic and other services charged separately to customers. In 2023, other income included non-recurring income of EUR 7.2 million, mainly related to the sale of a warehouse in US. Other income of 2022 includes non-recurring income of EUR 4.3 million, mainly related to the sale of a warehouse in Indonesia.
\nEUR 1,000 | Note | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Wages and salaries | 288,897 | 278,144 | |
Social security contributions | \u00a0 | 42,715 | 38,297 |
Contributions to defined contribution plans | \u00a0 | 11,453 | 10,944 |
Expenses related to defined benefit plans | 1,148 | 1,403 | |
Expenses related to termination and other long-term employee benefit plans | 1,860 | 1,393 | |
Other personnel expenses | \u00a0 | 20,863 | 22,943 |
Total Personnel expenses | \u00a0 | 366,936 | 353,124 |
The personnel expenses 2023 include non-recurring severance costs of EUR 3.0 million (2022: EUR 3.3 million).
\nThe average number of employees in the financial year by region and by function, measured in full-time equivalents, is as follows:
\nFTE | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
The Netherlands (excluding Dutch Holding companies) | 78 | 74 |
Rest of EMEA | 1,823 | 1,649 |
EMEA | 1,901 | 1,723 |
Americas | 1,256 | 1,104 |
Asia-Pacific | 1,289 | 1,117 |
Holding companies | 113 | 101 |
Total average FTE | 4,559 | 4,045 |
| \u00a0 | \u00a0 | \u00a0 |
Management and administration | 717 | 627 |
Sales | 2,872 | 2,547 |
ICT/HSEQR/Warehouse/Other | 970 | 871 |
Total average FTE | 4,559 | 4,045 |
The non-recurring income and expenses are recognised in profit or loss and are summarised as follows:
\nEUR 1,000 | Note | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Other income | 7,169 | 4,291 | |
Personnel expenses and other operating expenses | (12,246) | (15,540) | |
Finance costs | \u00a0 | 0 | 31 |
Impact on result before income tax | \u00a0 | (5,077) | (11,218) |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Non-recurring income tax expenses | (299) | 1,952 | |
Impact on result for the year | \u00a0 | (5,376) | (9,266) |
The non-recurring other income for 2023 includes income related to the sale of a warehouse in US of EUR 6.3 million. The non-recurring other income of 2022 includes income related to the sale of a warehouse in Indonesia of EUR 3.4 million.
\nThe non-recurring personnel expenses and other operating expenses for 2023 include severance costs of EUR 3.0 million (2022: EUR 3.3 million) and other operating expenses of EUR 9.2 million (2022: EUR 12.2 million). The other operating expenses mainly relate to professional services fees incurred during acquisition projects and subsequent integration processes.
\nThe other operating expenses are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Accommodation and other rental costs | 10,776 | 9,954 |
Other office expenses | 38,660 | 36,112 |
Car expenses | 8,380 | 7,036 |
Business travel and representation expenses | 21,708 | 18,724 |
Professional service fees | 22,000 | 24,900 |
Credit sales expenses | 1,318 | 1,351 |
Insurance costs | 5,542 | 5,256 |
Other operating expenses | 8,182 | 10,648 |
Total Other operating expenses | 116,566 | 113,981 |
The other operating expenses include an amount of EUR 9.2 million (2022: EUR 12.2 million) related to non-recurring items. The non-recurring items in 2023 and 2022 include professional services fees incurred during acquisition projects and subsequent integration processes and costs related to one-off adjustments to the organisation. The non-recurring items are included in the balances disclosed in Note 11.
\nThe non-current assets other than goodwill, financial instruments, deferred tax assets and post employment benefit assets, comprise property, plant and equipment, other intangible assets and equity-accounted investees. The aforementioned non-current assets by geographical location are as follows:
\nEUR 1,000 | Property, plant and equipment | Other intangible assets | Equity-accounted investees |
|---|---|---|---|
Netherlands | 5,162 | 104,598 | - |
Rest of EMEA | 56,973 | 61,428 | 53 |
EMEA | 62,135 | 166,027 | 53 |
Americas | 42,211 | 155,676 | - |
Asia-Pacific | 31,937 | 326,305 | - |
Total | 136,283 | 648,007 | 53 |
This note provides information about the contractual terms of the Group\u2019s interest bearing loans and borrowings, which are measured at amortised cost. In addtion this note also includes deferred & contingent considerations, which are measured at fair value to profit and loss. For more information about the Group\u2019s exposure to interest rate, foreign currency and liquidity risk, see Note 5.
\nEUR 1,000 | Note | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bank loans | \u00a0 | 1,088,101 | 594,867 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Deferred and contingent considerations | 82,468 | 250,316 | |
Lease liabilities | \u00a0 | 78,498 | 65,782 |
Other liabilities | \u00a0 | 1,400 | 1,923 |
Total non-current liabilities | \u00a0 | 1,250,467 | 912,889 |
The terms and conditions of outstanding non-current loans are as follows:
\nEUR 1,000 | Curr | Note | Nominal | Year of | Face value 2023 | Carrying amount 2023 | Face value 2022 | Carrying amount 2022 |
|---|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bond loan (fix rate) | EUR | \u00a0 | 2.50% | 2025 | 300,000 | 299,359 | 300,000 | 298,334 |
Bond loan (fix rate) | EUR | \u00a0 | 2.13% | 2027 | 300,000 | 297,374 | 300,000 | 296,533 |
Bond loan (fix rate) | EUR | \u00a0 | 4.88% | 2028 | 500,000 | 491,368 | \u00a0 | \u00a0 |
Profit sharing arrangements | EUR | \u00a0 | 1.53% | 2024-2027 | 1,400 | 1,400 | 1,923 | 1,923 |
Lease liabilities1 | \u00a0 | \u00a0 | 0.0% - 26.40% | 2024-2055 | 85,082 | 78,498 | 71,055 | 65,782 |
Total interest-bearing liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 1,186,482 | 1,167,999 | 672,979 | 662,572 |
Deferred and contingent considerations | \u00a0 | \u00a0 | \u00a0 | 85,750 | 82,468 | 256,586 | 250,316 | |
Total non-current liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 1,272,232 | 1,250,467 | 929,564 | 912,889 |
The total non-current lease liabilities face value of EUR 85.1 million consist of lease liabilities denominated in various currencies, of which EUR 32.1 million in EUR, EUR 11.8 million in CAD, EUR 11.0 million in USD, EUR 5.0 million in INR, EUR 4.1 million in AUD, EUR 3.4 million in CHF. The remaining amount of EUR 17.6 million is denominated in various currencies.
\nOn 8 February 2023, IMCD completed the refinancing of its multi-currency revolving credit facility. The new facility, with a maturity data of 8 February 2029, amounts to EUR 600 million and can be drawn in EUR and USD as well as, to an agreed sublimit, in AUD and GBP. The credit revolving facility has an interest margin dependent on external credit ratings. For the new revolving credit facility a maximum leverage of 3.75 times EBITDA (with a spike period maximum of 4.25), tested semi-annually is applicable.
\nOn 18 September 2023, IMCD issued an EUR 500 million rated corporate bond loan with institutional investors. This five-year senior unsecured bond loan matures on 18 September 2028 and has a fixed coupon of 4.875%. The bond loan is traded on the EURO MTF market of the Luxembourg Stock Exchange. The proceeds of the bond loan issue will be used for general corporate purposes, including the refinancing of existing indebtedness.
\nThe first senior unsecured fixed rates note, issued by IMCD N.V. on 26 March 2018, had a closing price of EUR 98.42 at 31 December 2023 (31 December 2022: EUR 97,08 ). The second senior unsecured fixed rates note, issued by IMCD N.V. on 31 March 2022, had a closing price of EUR 95.55 at 31 December 2023. The third unsecured fixed rates note, issued by IMCD N.V. on 18 September 2023, had a closing price of EUR 104.78
\nThe bonds are listed on the Luxembourg Euro MTF market and matures on respectively 26 March 2025, 31 March 2027 and 18 September 2028.
\nThe Group is obliged to meet requirements from the covenants in connection with the interest bearing loan facilities. These requirements relate to ratios for maximum leverage.
\nThe leverage covenants apply to the Group as at 31 December 2023:
For the revolving credit facility of EUR 600 million, a maximum leverage of 3.75 times EBITDA applies (with a spike period maximum of 4.25), tested semi-annually.
| \u00a0 | 2023 | 2022 | ||
|---|---|---|---|---|
| \u00a0 | Outcome | Covenant | Outcome | Covenant |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Reported leverage | 2.3 | \u00a0 | 1.8 | \u00a0 |
Leverage including pro-forma results | 2.3 | \u00a0 | 1.7 | \u00a0 |
Leverage loan documentation | 1.7 | max. 3.75 | 1.2 | max. 3.75 |
The actual reported leverage ratio as at 31 December 2023 was 2.3 times EBITDA (31 December 2022: 1.8 times EBITDA). Including the full year impact of acquisitions completed in 2023, the leverage at the end of the financial year is 2.3 times EBITDA (31 December 2022: 1.7 times EBITDA). The leverage ratio calculated on the basis of the definitions used in the loan documentation applicable as at 31 December 2023 was 1.7 times EBITDA (31 December 2022: 1.2 times EBITDA), which is well below the defined maximum of 3.75 times EBITDA.
\nFor details of the contractual maturities of financial liabilities, reference is made to note 5.
\nEUR 1,000 | Note | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | \u00a0 | - | 40,000 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Deferred and contingent considerations | 20,404 | 23,294 | |
Lease liabilities | \u00a0 | 24,743 | 20,028 |
Other short term financial liabilities | \u00a0 | 384,404 | 252,720 |
Total Short-term financial liabilities | \u00a0 | 429,552 | 296,042 |
Other short-term financial liabilities include a revolving credit facility, bank overdrafts, other short-term credit facilities, including discounted bills and discounted notes and the amount payable to the minority shareholders of Signet.
\nThe following table provides an overview of the cash flow and non-cash flow movements of the non-current and current financial liabilities.
\nEUR 1,000 | 2022 | Cash flow | Acquisitions | Reclasses | Other non-cash movements | Effect of movements in exchange rates | 2023 |
|---|---|---|---|---|---|---|---|
Non-current | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bank Loans | 594,867 | 492,750 | 1,510 | (1,518) | 484 | 8 | 1,088,101 |
Deferred and contingent considerations | 250,316 | - | 81,725 | (219,195) | (19,142) | (11,236) | 82,468 |
Lease liabilities | 65,782 | - | 2,855 | (14,248) | 24,718 | (610) | 78,498 |
Other liabilities | 1,923 | (733) | 165 | - | - | 45 | 1,400 |
Total non-current | 912,889 | 492,017 | 86,256 | (234,961) | 6,060 | (11,793) | 1,250,467 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bank Loans | 40,000 | (41,518) | - | 1,518 | - | - | - |
Deferred and contingent considerations | 23,294 | (23,150) | 5,194 | 26,975 | (10,145) | (1,762) | 20,404 |
Lease liabilities | 20,028 | (25,526) | 1,164 | 14,248 | 15,192 | (363) | 24,743 |
Other liabilities | 252,722 | (110,693) | 16,510 | 192,220 | 51,604 | (17,959) | 384,404 |
Total current | 336,043 | (200,887) | 22,868 | 234,961 | 56,651 | (20,084) | 429,551 |
The other non-cash movements include fair value adjustments related to a net reduction in the estimated deferred and contingent consideration, mainly related to Sanrise (China) of EUR 15.6 million and Megasetia (Indonesia) of EUR 12.0 million.
\nThe other liabilities include the consideration payable to the minority shareholders of Signet following the completion of the acquisition of the remaining 30% interest in December 2023. The completion was executed on the basis of the share purchase agreement of September 2020. The consideration payable in other liabilities follows from the movements included, a reclassification from the deferred consideration and a non-cash movement (increase) of the consideration payable. The increase of EUR 51.6 million in the consideration resulted from the improved actual level of profitability of Signet, compared with the assumptions used in the previous fair value determination. This increase is accounted through retained earnings. Payment of the consideration for the remaining 30% was effected on 1 February 2024. Reference is made to Note 7and Note 27.
\n| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
EUR 1,000 | 2021 | Cash flow | Acquisitions | Reclasses | Other non-cash movements | Effect of movements in exchange rates | 2022 |
Non-current | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bank Loans | 337,528 | 295,149 | 2,413 | (40,000) | (490) | 267 | 594,867 |
Deferred and contingent considerations | 275,243 | - | 19,299 | (13,408) | (18,107) | (12,711) | 250,316 |
Lease liabilities | 52,712 | - | 2,119 | (12,393) | 22,800 | 543 | 65,782 |
Other liabilities | 1,369 | (584) | 1,092 | - | 6 | 40 | 1,923 |
Total non-current | 666,852 | 294,565 | 24,924 | (65,800) | 4,209 | (11,860) | 912,889 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bank Loans | - | - | - | 40,000 | - | - | 40,000 |
Deferred and contingent considerations | 33,614 | (47,265) | 11,182 | 13,408 | 11,164 | 1,191 | 23,294 |
Lease liabilities | 18,017 | (20,391) | 509 | 12,393 | 10,804 | (1,304) | 20,028 |
Other liabilities | 399,420 | (163,295) | 9,621 | \u00a0 | - | 6,976 | 252,722 |
Total current | 451,051 | (230,951) | 21,313 | 65,801 | 21,969 | 6,863 | 336,043 |
As of 1 January 2015, the Group established a long-term incentive plan (LTIP) for the Management Board, the Executive Committee and certain senior managers. Under this equity settled LTIP, performance shares are awarded based on certain performance conditions. Aims of the LTIP are long-term value creation, motivation and sharing of success and the retention of key employees.
\nThe applicable performance conditions for the Management Board are:
relative Total Shareholder Return performance (market-related condition) compared with a selected group of peer companies and
cash earnings per share (internal performance condition)
The performance period starts every year on 1 January and lasts three financial years. After vesting, the unconditional shares are subject to a holding period of two years and become unrestricted five years after grant date.
\nThe performance conditions for the Executive Committee and for senior managers are solely internal performance conditions and include:
growth in cash earnings per share (only for the Executive Committee)
operating EBITA
discretionary assessment by the Management Board
The performance period starts every year on 1 January and lasts one year. The shares become unconditional after a service period of three years, i.e. two years after the performance period.
\nThe number of performance shares granted is as follows:
\n| \u00a0 | 2023 | 2022 | ||
|---|---|---|---|---|
| \u00a0 | Number of shares | Based on share price | Number of shares | Based on share price |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Shares granted to the Management Board | 14,774 | 140.83 | 6,458 | 195.45 |
Shares granted to Executive Committee and certain senior managers | 24,488 | 140.83 | 19,821 | 195.45 |
The total number of performance shares granted in 2023 is based on a target performance (100 per cent) with an upward and downward potential for the Management Board and the Executive Committee. The expected total number of performance shares is 104,882 with vesting dates in 2024, 2025 and 2026.
\nAs Marcus Jordan (COO) first participated in the Management Board's LTI Plan in 2023, the shares related to prior year plans are included in the shares granted to Executive Committee and certain senior managers.
\nThe weighted average share price and the number of performance shares are as follows:
\n| \u00a0 | 2023 | 2022 | ||
|---|---|---|---|---|
| \u00a0 | Weighted average share price | Number of shares | Weighted average share price | Number of shares |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Outstanding as at 1 January | 102.56 | 134,329 | 85.78 | 172,209 |
Forfeited during the year | - | - | 105.05 | (8,679) |
Exercised during the year | 74.66 | (60,706) | 65.18 | (70,542) |
Granted during the year | 135.22 | 39,262 | 149.98 | 26,279 |
Performance adjustment | - | (8,003) | - | 15,063 |
Outstanding as at 31 December | 127.02 | 104,882 | 102.56 | 134,329 |
The weighted average share price of granted shares is equal to the share price at the grant date adjusted for the expected retention and expected dividends, based on the Company's dividend policy, during the vesting period. In addition, the weighted average share price of shares granted to the Management Board is adjusted for market-related performance conditions and for the impact of the restriction period.
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
Shares granted | 4,823 | 4,324 |
The other operating expenses are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Accommodation and other rental costs | 10,776 | 9,954 |
Other office expenses | 38,660 | 36,112 |
Car expenses | 8,380 | 7,036 |
Business travel and representation expenses | 21,708 | 18,724 |
Professional service fees | 22,000 | 24,900 |
Credit sales expenses | 1,318 | 1,351 |
Insurance costs | 5,542 | 5,256 |
Other operating expenses | 8,182 | 10,648 |
Total Other operating expenses | 116,566 | 113,981 |
The other operating expenses include an amount of EUR 9.2 million (2022: EUR 12.2 million) related to non-recurring items. The non-recurring items in 2023 and 2022 include professional services fees incurred during acquisition projects and subsequent integration processes and costs related to one-off adjustments to the organisation. The non-recurring items are included in the balances disclosed in Note 11.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-594": { "value": "\nThe following finance income and finance costs are recognised in profit or loss:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Interest income on loans and receivables | 3,798 | 2,836 |
Change in fair value of contingent considerations | 31,329 | 20,013 |
Finance income | 35,127 | 22,849 |
| \u00a0 | \u00a0 | \u00a0 |
Interest expenses on financial liabilities measured at amortised cost | (46,484) | (24,765) |
Interest expenses on provisions for pensions and similar obligations | (420) | (326) |
Interest expenses on lease liabilities | (3,098) | (2,534) |
Change in fair value of contingent considerations | (2,042) | (13,070) |
Currency exchange results | (8,512) | (8,031) |
Finance costs | (60,556) | (48,726) |
| \u00a0 | \u00a0 | \u00a0 |
Net finance costs recognised in profit or loss | (25,429) | (25,877) |
The net finance costs recognised in profit or loss include the results of the fair value adjustments in the deferred considerations. These relate mainly to Sanrise (income of EUR 15.6 million) and Megasetia (income EUR 12.0 million). Costs resulting from changes in fair value of contingent consideration related to accrued interest.
\nFinance income and expenses recognised in other comprehensive income are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Foreign currency translation differences of foreign operations | (52,962) | (446) |
Effective portion of changes in fair value of cash flow hedges | 61 | (110) |
Tax on foreign currency translation differences and changes in fair value of cash flow hedges recognised in other comprehensive income | 915 | (30) |
Finance income recognised in other comprehensive income, net of tax | (51,986) | (586) |
The following finance income and finance costs are recognised in profit or loss:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Interest income on loans and receivables | 3,798 | 2,836 |
Change in fair value of contingent considerations | 31,329 | 20,013 |
Finance income | 35,127 | 22,849 |
| \u00a0 | \u00a0 | \u00a0 |
Interest expenses on financial liabilities measured at amortised cost | (46,484) | (24,765) |
Interest expenses on provisions for pensions and similar obligations | (420) | (326) |
Interest expenses on lease liabilities | (3,098) | (2,534) |
Change in fair value of contingent considerations | (2,042) | (13,070) |
Currency exchange results | (8,512) | (8,031) |
Finance costs | (60,556) | (48,726) |
| \u00a0 | \u00a0 | \u00a0 |
Net finance costs recognised in profit or loss | (25,429) | (25,877) |
The net finance costs recognised in profit or loss include the results of the fair value adjustments in the deferred considerations. These relate mainly to Sanrise (income of EUR 15.6 million) and Megasetia (income EUR 12.0 million). Costs resulting from changes in fair value of contingent consideration related to accrued interest.
\nFinance income and expenses recognised in other comprehensive income are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Foreign currency translation differences of foreign operations | (52,962) | (446) |
Effective portion of changes in fair value of cash flow hedges | 61 | (110) |
Tax on foreign currency translation differences and changes in fair value of cash flow hedges recognised in other comprehensive income | 915 | (30) |
Finance income recognised in other comprehensive income, net of tax | (51,986) | (586) |
The following finance income and finance costs are recognised in profit or loss:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Interest income on loans and receivables | 3,798 | 2,836 |
Change in fair value of contingent considerations | 31,329 | 20,013 |
Finance income | 35,127 | 22,849 |
| \u00a0 | \u00a0 | \u00a0 |
Interest expenses on financial liabilities measured at amortised cost | (46,484) | (24,765) |
Interest expenses on provisions for pensions and similar obligations | (420) | (326) |
Interest expenses on lease liabilities | (3,098) | (2,534) |
Change in fair value of contingent considerations | (2,042) | (13,070) |
Currency exchange results | (8,512) | (8,031) |
Finance costs | (60,556) | (48,726) |
| \u00a0 | \u00a0 | \u00a0 |
Net finance costs recognised in profit or loss | (25,429) | (25,877) |
The net finance costs recognised in profit or loss include the results of the fair value adjustments in the deferred considerations. These relate mainly to Sanrise (income of EUR 15.6 million) and Megasetia (income EUR 12.0 million). Costs resulting from changes in fair value of contingent consideration related to accrued interest.
\nFinance income and expenses recognised in other comprehensive income are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Foreign currency translation differences of foreign operations | (52,962) | (446) |
Effective portion of changes in fair value of cash flow hedges | 61 | (110) |
Tax on foreign currency translation differences and changes in fair value of cash flow hedges recognised in other comprehensive income | 915 | (30) |
Finance income recognised in other comprehensive income, net of tax | (51,986) | (586) |
The following finance income and finance costs are recognised in profit or loss:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Interest income on loans and receivables | 3,798 | 2,836 |
Change in fair value of contingent considerations | 31,329 | 20,013 |
Finance income | 35,127 | 22,849 |
| \u00a0 | \u00a0 | \u00a0 |
Interest expenses on financial liabilities measured at amortised cost | (46,484) | (24,765) |
Interest expenses on provisions for pensions and similar obligations | (420) | (326) |
Interest expenses on lease liabilities | (3,098) | (2,534) |
Change in fair value of contingent considerations | (2,042) | (13,070) |
Currency exchange results | (8,512) | (8,031) |
Finance costs | (60,556) | (48,726) |
| \u00a0 | \u00a0 | \u00a0 |
Net finance costs recognised in profit or loss | (25,429) | (25,877) |
The net finance costs recognised in profit or loss include the results of the fair value adjustments in the deferred considerations. These relate mainly to Sanrise (income of EUR 15.6 million) and Megasetia (income EUR 12.0 million). Costs resulting from changes in fair value of contingent consideration related to accrued interest.
\nFinance income and expenses recognised in other comprehensive income are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Foreign currency translation differences of foreign operations | (52,962) | (446) |
Effective portion of changes in fair value of cash flow hedges | 61 | (110) |
Tax on foreign currency translation differences and changes in fair value of cash flow hedges recognised in other comprehensive income | 915 | (30) |
Finance income recognised in other comprehensive income, net of tax | (51,986) | (586) |
The following finance income and finance costs are recognised in profit or loss:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Interest income on loans and receivables | 3,798 | 2,836 |
Change in fair value of contingent considerations | 31,329 | 20,013 |
Finance income | 35,127 | 22,849 |
| \u00a0 | \u00a0 | \u00a0 |
Interest expenses on financial liabilities measured at amortised cost | (46,484) | (24,765) |
Interest expenses on provisions for pensions and similar obligations | (420) | (326) |
Interest expenses on lease liabilities | (3,098) | (2,534) |
Change in fair value of contingent considerations | (2,042) | (13,070) |
Currency exchange results | (8,512) | (8,031) |
Finance costs | (60,556) | (48,726) |
| \u00a0 | \u00a0 | \u00a0 |
Net finance costs recognised in profit or loss | (25,429) | (25,877) |
The net finance costs recognised in profit or loss include the results of the fair value adjustments in the deferred considerations. These relate mainly to Sanrise (income of EUR 15.6 million) and Megasetia (income EUR 12.0 million). Costs resulting from changes in fair value of contingent consideration related to accrued interest.
\nFinance income and expenses recognised in other comprehensive income are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Foreign currency translation differences of foreign operations | (52,962) | (446) |
Effective portion of changes in fair value of cash flow hedges | 61 | (110) |
Tax on foreign currency translation differences and changes in fair value of cash flow hedges recognised in other comprehensive income | 915 | (30) |
Finance income recognised in other comprehensive income, net of tax | (51,986) | (586) |
The following finance income and finance costs are recognised in profit or loss:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Interest income on loans and receivables | 3,798 | 2,836 |
Change in fair value of contingent considerations | 31,329 | 20,013 |
Finance income | 35,127 | 22,849 |
| \u00a0 | \u00a0 | \u00a0 |
Interest expenses on financial liabilities measured at amortised cost | (46,484) | (24,765) |
Interest expenses on provisions for pensions and similar obligations | (420) | (326) |
Interest expenses on lease liabilities | (3,098) | (2,534) |
Change in fair value of contingent considerations | (2,042) | (13,070) |
Currency exchange results | (8,512) | (8,031) |
Finance costs | (60,556) | (48,726) |
| \u00a0 | \u00a0 | \u00a0 |
Net finance costs recognised in profit or loss | (25,429) | (25,877) |
The net finance costs recognised in profit or loss include the results of the fair value adjustments in the deferred considerations. These relate mainly to Sanrise (income of EUR 15.6 million) and Megasetia (income EUR 12.0 million). Costs resulting from changes in fair value of contingent consideration related to accrued interest.
\nFinance income and expenses recognised in other comprehensive income are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Foreign currency translation differences of foreign operations | (52,962) | (446) |
Effective portion of changes in fair value of cash flow hedges | 61 | (110) |
Tax on foreign currency translation differences and changes in fair value of cash flow hedges recognised in other comprehensive income | 915 | (30) |
Finance income recognised in other comprehensive income, net of tax | (51,986) | (586) |
EUR 1,000 | 2023 | 2022 |
|---|---|---|
Current tax expense | \u00a0 | \u00a0 |
Current year | 117,815 | 123,744 |
Adjustment for prior years | 1,368 | 3,747 |
| \u00a0 | 119,183 | 127,491 |
Deferred tax expense | \u00a0 | \u00a0 |
Reduction in tax rate | 30 | (358) |
Origination and reversal of temporary differences | (8,761) | (3,644) |
Recognition of previously unrecognised tax losses | (259) | (247) |
Recognition of current year tax losses | (1,547) | (997) |
Derecognition of previously recognised tax losses | 2,205 | 601 |
| \u00a0 | (8,332) | (4,645) |
| \u00a0 | \u00a0 | \u00a0 |
Total income tax expense | 110,851 | 122,846 |
The reported tax expenses include an amount of negative EUR 8.7 million (2022: EUR 8.5 million) related to temporary differences regarding amortisation of intangible assets.
\n| \u00a0 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
EUR 1,000 | Before tax | Tax benefit/(expense) | Net of tax | Before tax | Tax benefit/(expense) | Net of tax |
Foreign currency translation differences for foreign operations | (52,962) | 935 | (52,027) | (446) | (30) | (476) |
Cash flow hedges | 61 | (20) | 41 | (110) | - | (110) |
Defined benefit plan actuarial gains/(losses) | (2,379) | 535 | (1,843) | 7,229 | (1,007) | 6,221 |
| \u00a0 | (55,280) | 1,451 | (53,829) | 6,673 | (1,037) | 5,635 |
The reconciliation between the Company's domestic income tax rate and related tax charge and the effective income tax rate and related effective income tax charge is as follows:
\nEUR 1,000 | 2023 | 2022 | ||
|---|---|---|---|---|
| \u00a0 | % | \u00a0 | % | \u00a0 |
Profit for the year | \u00a0 | 292,223 | \u00a0 | 313,003 |
Total income tax expense | 27.5% | 110,851 | 28.2% | 122,846 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Profit before income tax | \u00a0 | 403,074 | \u00a0 | 435,849 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Income tax using the Company\u2019s domestic tax rate | 25.8% | 103,993 | 25.8% | 112,449 |
Effect of tax rates in foreign jurisdictions | 1.0% | 3,873 | 1.1% | 4,946 |
Effect of change in tax rate | 0.0% | 30 | (0.1%) | (358) |
Tax effect of: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Income and non-deductible expenses | (0.4%) | (1,724) | 0.4% | 1,556 |
Tax incentives and tax exempted income | (0.2%) | (765) | (0.1%) | (471) |
Utilisation of tax losses | - % | (143) | - % | (35) |
Recognition of previously unrecognised tax losses | (0.1%) | (259) | (0.1%) | (247) |
Derecognition of previously recognised tax losses | 0.5% | 2,205 | 0.1% | 601 |
Current year losses for which no deferred tax asset was recognised | 1.1% | 4,575 | - % | - |
(De)recognition of previously (un)recognised temporary differences | (0.6%) | (2,301) | 0.2% | 658 |
Under provided in prior years | 0.3% | 1,367 | 0.9% | 3,747 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | 27.5% | 110,851 | 28.2% | 122,846 |
The following countries within the IMCD Group were subject to changes in the applicable corporate income tax rates in the financial year compared with the previous financial year: United Kingdom 25.0% (2022: 19.0%) and Austria 24% (2022: 25%).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-601": { "value": "\nThe basic earnings per share of EUR 5.13 (2022: EUR 5.50) is determined by dividing the result for the year due to the owners of the Company of EUR 292.3 million (2022: EUR 313.1 million) by the weighted average number of shares in circulation amounting to 56.9 million (2022: 56.9 million). As of 31 December 2023, the number of ordinary shares outstanding was 57.0 million (31 December 2022: 57.0 million).
\nEUR 1,000 | \u00a0 | \u00a0 | 2023 | 2022 |
|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Profit/(loss) for the year, attributable to the owners of the Company (basic) | \u00a0 | (A) | 292,271 | 313,081 |
in thousand shares | Note | \u00a0 | 2023 | 2022 |
|---|---|---|---|---|
Issued ordinary shares as at 1 January | \u00a0 | 56,987 | 56,987 | |
Effect of purchase or transfer of own shares | \u00a0 | (69) | (58) | |
Weighted average number of ordinary shares as at 31 December | \u00a0 | (B) | 56,918 | 56,929 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Earnings per share (A/B) | \u00a0 | \u00a0 | 5.13 | 5.50 |
The calculation of the diluted earnings per share of EUR 5.13 (2022: EUR 5.49) has been based on the profit attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding after adjustment for the effect of all dilutive potential ordinary shares.
\nThe total number of shares granted based on the Group's share based payment scheme are included in the calculation of the diluted weighted average number of shares.
\nin thousand shares | Note | \u00a0 | 2023 | 2022 |
|---|---|---|---|---|
Weighted average number of ordinary shares (basic) as at 31 December | \u00a0 | 56,918 | 56,929 | |
Effect of share based payments | \u00a0 | \u00a0 | 78 | 99 |
Weighted average number of ordinary shares (diluted) at 31 December | \u00a0 | (C) | 56,996 | 57,028 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Diluted earnings per share (A/C) | \u00a0 | \u00a0 | 5.13 | 5.49 |
Property, plant and equipment comprises of owned and leased assets:
\nEUR 1,000 | Note | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Property, plant and equipment owned | \u00a0 | 36,159 | 30,385 |
Right-of-use assets | 100,124 | 82,942 | |
| \u00a0 | \u00a0 | 136,283 | 113,327 |
The movements for the financial year of the property, plant and equipment are as follows:
\nEUR 1,000 | Note | Land and | Machinery | Hardware & | Other | Total |
|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2023 | \u00a0 | 21,883 | 18,150 | 12,741 | 16,986 | 69,760 |
Acquisitions through business combinations | 3,440 | 3,793 | 840 | 2,439 | 10,512 | |
Additions for the year | \u00a0 | 3,091 | 7,945 | 5,003 | 5,200 | 21,239 |
Disposals | \u00a0 | (5,568) | (2,012) | (3,801) | (3,671) | (15,052) |
Effect of movements in exchange rates | \u00a0 | (716) | (415) | (210) | (178) | (1,519) |
Balance as at 31 December 2023 | \u00a0 | 22,130 | 27,461 | 14,573 | 20,776 | 84,940 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Depreciation and impairment losses | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2023 | \u00a0 | 7,241 | 10,933 | 9,397 | 11,804 | 39,375 |
Acquisitions through business combinations | 545 | 2,841 | 687 | 2,082 | 6,155 | |
Depreciation for the year | \u00a0 | 2,135 | 2,444 | 1,827 | 1,167 | 7,573 |
Disposals | \u00a0 | (1,617) | 249 | (474) | (1,623) | (3,465) |
Effect of movements in exchange rates | \u00a0 | (328) | (296) | (152) | (81) | (857) |
Balance as at 31 December 2023 | \u00a0 | 7,976 | 16,171 | 11,285 | 13,348 | 48,781 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Carrying amounts | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
As at 1 January 2023 | \u00a0 | 14,642 | 7,217 | 3,344 | 5,182 | 30,385 |
As at 31 December 2023 | \u00a0 | 14,154 | 11,290 | 3,288 | 7,428 | 36,159 |
EUR 1,000 | Note | Land and | Machinery | Hardware & | Other | Total |
|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2022 | \u00a0 | 22,344 | 15,093 | 12,804 | 12,186 | 62,427 |
Acquisitions through business combinations | \u00a0 | 161 | 1,109 | 390 | 1,473 | 3,133 |
Additions for the year | \u00a0 | 1,684 | 3,283 | 2,457 | 3,453 | 10,877 |
Disposals | \u00a0 | (3,125) | (1,546) | (2,838) | (84) | (7,593) |
Effect of movements in exchange rates | \u00a0 | 819 | 211 | (72) | (42) | 916 |
Balance as at 31 December 2022 | \u00a0 | 21,883 | 18,150 | 12,741 | 16,986 | 69,760 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Depreciation and impairment losses | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2022 | \u00a0 | 6,633 | 9,045 | 9,019 | 9,107 | 33,804 |
Acquisitions through business combinations | \u00a0 | 116 | 929 | 345 | 958 | 2,348 |
Depreciation for the year | \u00a0 | 1,975 | 2,072 | 1,836 | 1,270 | 7,153 |
Disposals | \u00a0 | (1,746) | (1,271) | (1,751) | 528 | (4,240) |
Effect of movements in exchange rates | \u00a0 | 263 | 158 | (52) | (59) | 310 |
Balance as at 31 December 2022 | \u00a0 | 7,241 | 10,933 | 9,397 | 11,804 | 39,375 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Carrying amounts | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
As at 1 January 2022 | \u00a0 | 15,711 | 6,048 | 3,785 | 3,079 | 28,623 |
As at 31 December 2022 | \u00a0 | 14,642 | 7,217 | 3,344 | 5,182 | 30,385 |
The movements of the intangible assets are as follows:
\nEUR 1,000 | Note | Goodwill | Intellectual property rights | Distribution rights | Brand names | Supplier relations | Other intangibles | Total |
|---|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2023 | \u00a0 | 1,391,861 | 104 | 40,602 | 25,000 | 874,492 | 41,229 | 2,373,288 |
Acquisitions through business combinations | - | - | - | 723 | 170,097 | 1,565 | 172,385 | |
Additions for the year | \u00a0 | 253,477 | - | 10,269 | - | 33 | 5,932 | 269,711 |
Disposals | \u00a0 | - | - | (898) | - | - | (9,365) | (10,263) |
Effect of movements in exchange rates | \u00a0 | (27,666) | - | (599) | (10) | (19,384) | (230) | (47,889) |
Balance as at 31 December 2023 | \u00a0 | 1,617,672 | 104 | 49,374 | 25,713 | 1,025,238 | 39,131 | 2,757,232 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amortisation and impairment losses | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2023 | \u00a0 | 5,309 | 67 | 24,465 | - | 369,631 | 32,712 | 432,184 |
Acquisitions through business combinations | - | - | - | - | - | - | - | |
Amortisation for the year | \u00a0 | - | - | 5,717 | 36 | 69,566 | 5,615 | 80,934 |
Impairment loss | \u00a0 | - | - | - | - | - | - | - |
Disposals | \u00a0 | - | - | (897) | - | - | (8,662) | (9,559) |
Effect of movements in exchange rates | \u00a0 | 13 | - | (297) | - | (6,177) | (223) | (6,684) |
Balance as at 31 December 2023 | \u00a0 | 5,322 | 67 | 28,988 | 36 | 433,020 | 29,442 | 496,875 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Carrying amounts | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
As at 1 January 2023 | \u00a0 | 1,386,552 | 37 | 16,137 | 25,000 | 504,861 | 8,517 | 1,941,104 |
As at 31 December 2023 | \u00a0 | 1,612,350 | 37 | 20,386 | 25,677 | 592,218 | 9,689 | 2,260,357 |
EUR 1,000 | Note | Goodwill | Intellectual property rights | Distribution rights | Brand names | Supplier relations | Other intangibles | Total |
|---|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2022 | \u00a0 | 1,262,434 | 104 | 36,811 | 25,000 | 795,858 | 35,537 | 2,155,744 |
Acquisitions through business combinations | \u00a0 | - | - | 180 | - | 74,353 | 93 | 74,626 |
Additions for the year | \u00a0 | 130,769 | - | 3,766 | - | - | 5,400 | 139,935 |
Disposals | \u00a0 | - | - | (546) | - | - | 3 | (543) |
Effect of movements in exchange rates | \u00a0 | (1,342) | - | 391 | - | 4,281 | 196 | 3,526 |
Balance as at 31 December 2022 | \u00a0 | 1,391,861 | 104 | 40,602 | 25,000 | 874,492 | 41,229 | 2,373,288 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amortisation and impairment losses | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2022 | \u00a0 | 5,423 | 67 | 19,575 | - | 297,258 | 25,322 | 347,645 |
Acquisitions through business combinations | \u00a0 | - | - | 118 | - | - | 91 | 209 |
Amortisation for the year | \u00a0 | - | - | 4,993 | - | 62,815 | 7,275 | 75,083 |
Impairment loss | \u00a0 | - | - | - | - | 6,395 | - | 6,395 |
Disposals | \u00a0 | - | - | (473) | - | - | (75) | (548) |
Effect of movements in exchange rates | \u00a0 | (114) | - | 252 | - | 3,163 | 99 | 3,400 |
Balance as at 31 December 2022 | \u00a0 | 5,309 | 67 | 24,465 | - | 369,631 | 32,712 | 432,184 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Carrying amounts | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
As at 1 January 2022 | \u00a0 | 1,257,011 | 37 | 17,236 | 25,000 | 498,600 | 10,215 | 1,808,099 |
As at 31 December 2022 | \u00a0 | 1,386,552 | 37 | 16,137 | 25,000 | 504,861 | 8,517 | 1,941,104 |
For the purpose of goodwill impairment testing, goodwill is allocated to the following cash generating units.
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
EMEA | 444,897 | 386,793 |
Americas | 421,491 | 376,058 |
Asia-Pacific | 745,962 | 623,701 |
| \u00a0 | 1,612,350 | 1,386,552 |
A cash generating unit (CGU) represents the lowest level within the Group at which goodwill is monitored for internal management\u00a0purposes.
\nThe recoverable amount per CGU is based on its value in use and is determined by discounting the future cash flows\u00a0to be\u00a0generated from the continued use of the CGUs. The cash flow forecasts were derived from the budget for 2024 and the plan years 2025 and 2026 which were established at the legal entity level and approved by Management Board and Supervisory Board. The forecasted cash flows have been extrapolated to the years 2027 and 2028. For the period after 2029 a growth rate equal to the weighted average of the forecasted annual real GDP growth rate for the period 2029-2054 is taken into account.
\nThe pre-tax weighted average cost of capital (WACC) is estimated per\u00a0CGU and varies mainly due to differences in risk free rates. The risk-free rates per CGU are equal to the weighted average of the rate of return on local sovereign bonds or strips. The WACC has predominately increased due to higher risk-free rates.\u00a0The main assumptions used to determine the WACC were assessed by an external certified valuation expert.
\nThe key assumptions for 2023 and 2022 for each CGU are as follows:
\n| \u00a0 | 2023 | 2022 | ||
|---|---|---|---|---|
| \u00a0 | Pre-tax WACC | Terminal | Pre-tax WACC | Terminal |
EMEA | 14.5% | 2.8% | 11.0% | 2.4% |
Americas | 16.7% | 2.7% | 14.2% | 2.4% |
Asia-Pacific | 15.0% | 3.5% | 15.5% | 3.5% |
No impairment of goodwill was necessary following impairment tests on all cash generating units within the Group. The discounted future cash flows from all cash generating units exceed the value of the goodwill and other relevant net assets.
\nIt is inherent in the method of computation used that a change in the assumptions may lead to a different conclusion. Therefore, a sensitivity analysis is performed based on a change in a key assumption while keeping all other assumptions unchanged.
\nThe following changes in assumptions are assessed:
Decrease of the average growth rate 2023-2027 to the terminal growth rate
Decrease of the terminal growth rate by 1.0%
Increase of the WACC by 1.0%
The conclusion based on the sensitivity analysis performed is that any reasonable change in the key assumptions would not lead to an impairment. For Asia-Pacific the break-even point is reached earlier than the other segments, but taking into account the considerable growth of the region and the expansion by means of the recent acquisition of Signet this scenario is highly unlikely.
\nThe supplier relationships consist of supplier bases within the following regions and remaining useful lives (RUL):
\nEUR 1,000 | RUL | 2023 | 2022 |
|---|---|---|---|
EMEA | 4-13 | 115,586 | 106,307 |
Americas | 5-16 | 151,953 | 129,088 |
Asia-Pacific | 4-16 | 324,679 | 269,467 |
| \u00a0 | \u00a0 | 592,218 | 504,861 |
The remaining useful lives of supplier bases are assessed at each reporting date and adjusted if appropriate. Furthermore, triggering events for a possible impairment are evaluated annually by means of assessing the potential impact of available internal and external information sources.
\nBrand names relate to the IMCD brand. As no assumption can be made about the durability of its economic use, the brand name has an indefinite useful life. The IMCD brand name is considered as a corporate asset and hence allocated to the individual CGUs for goodwill impairment testing purposes. The carrying amount of the brand name has been allocated to the CGUs as follows: EMEA: EUR 10.9 million (2022: EUR 10.9 million), Asia-Pacific: EUR 6.1 million (2022: EUR 5.5 million) and Americas: EUR 7.9 million (2022: EUR 8.6 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-604": { "value": "\nThe movements of the intangible assets are as follows:
\nEUR 1,000 | Note | Goodwill | Intellectual property rights | Distribution rights | Brand names | Supplier relations | Other intangibles | Total |
|---|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2023 | \u00a0 | 1,391,861 | 104 | 40,602 | 25,000 | 874,492 | 41,229 | 2,373,288 |
Acquisitions through business combinations | - | - | - | 723 | 170,097 | 1,565 | 172,385 | |
Additions for the year | \u00a0 | 253,477 | - | 10,269 | - | 33 | 5,932 | 269,711 |
Disposals | \u00a0 | - | - | (898) | - | - | (9,365) | (10,263) |
Effect of movements in exchange rates | \u00a0 | (27,666) | - | (599) | (10) | (19,384) | (230) | (47,889) |
Balance as at 31 December 2023 | \u00a0 | 1,617,672 | 104 | 49,374 | 25,713 | 1,025,238 | 39,131 | 2,757,232 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amortisation and impairment losses | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2023 | \u00a0 | 5,309 | 67 | 24,465 | - | 369,631 | 32,712 | 432,184 |
Acquisitions through business combinations | - | - | - | - | - | - | - | |
Amortisation for the year | \u00a0 | - | - | 5,717 | 36 | 69,566 | 5,615 | 80,934 |
Impairment loss | \u00a0 | - | - | - | - | - | - | - |
Disposals | \u00a0 | - | - | (897) | - | - | (8,662) | (9,559) |
Effect of movements in exchange rates | \u00a0 | 13 | - | (297) | - | (6,177) | (223) | (6,684) |
Balance as at 31 December 2023 | \u00a0 | 5,322 | 67 | 28,988 | 36 | 433,020 | 29,442 | 496,875 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Carrying amounts | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
As at 1 January 2023 | \u00a0 | 1,386,552 | 37 | 16,137 | 25,000 | 504,861 | 8,517 | 1,941,104 |
As at 31 December 2023 | \u00a0 | 1,612,350 | 37 | 20,386 | 25,677 | 592,218 | 9,689 | 2,260,357 |
EUR 1,000 | Note | Goodwill | Intellectual property rights | Distribution rights | Brand names | Supplier relations | Other intangibles | Total |
|---|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2022 | \u00a0 | 1,262,434 | 104 | 36,811 | 25,000 | 795,858 | 35,537 | 2,155,744 |
Acquisitions through business combinations | \u00a0 | - | - | 180 | - | 74,353 | 93 | 74,626 |
Additions for the year | \u00a0 | 130,769 | - | 3,766 | - | - | 5,400 | 139,935 |
Disposals | \u00a0 | - | - | (546) | - | - | 3 | (543) |
Effect of movements in exchange rates | \u00a0 | (1,342) | - | 391 | - | 4,281 | 196 | 3,526 |
Balance as at 31 December 2022 | \u00a0 | 1,391,861 | 104 | 40,602 | 25,000 | 874,492 | 41,229 | 2,373,288 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amortisation and impairment losses | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2022 | \u00a0 | 5,423 | 67 | 19,575 | - | 297,258 | 25,322 | 347,645 |
Acquisitions through business combinations | \u00a0 | - | - | 118 | - | - | 91 | 209 |
Amortisation for the year | \u00a0 | - | - | 4,993 | - | 62,815 | 7,275 | 75,083 |
Impairment loss | \u00a0 | - | - | - | - | 6,395 | - | 6,395 |
Disposals | \u00a0 | - | - | (473) | - | - | (75) | (548) |
Effect of movements in exchange rates | \u00a0 | (114) | - | 252 | - | 3,163 | 99 | 3,400 |
Balance as at 31 December 2022 | \u00a0 | 5,309 | 67 | 24,465 | - | 369,631 | 32,712 | 432,184 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Carrying amounts | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
As at 1 January 2022 | \u00a0 | 1,257,011 | 37 | 17,236 | 25,000 | 498,600 | 10,215 | 1,808,099 |
As at 31 December 2022 | \u00a0 | 1,386,552 | 37 | 16,137 | 25,000 | 504,861 | 8,517 | 1,941,104 |
For the purpose of goodwill impairment testing, goodwill is allocated to the following cash generating units.
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
EMEA | 444,897 | 386,793 |
Americas | 421,491 | 376,058 |
Asia-Pacific | 745,962 | 623,701 |
| \u00a0 | 1,612,350 | 1,386,552 |
A cash generating unit (CGU) represents the lowest level within the Group at which goodwill is monitored for internal management\u00a0purposes.
\nThe recoverable amount per CGU is based on its value in use and is determined by discounting the future cash flows\u00a0to be\u00a0generated from the continued use of the CGUs. The cash flow forecasts were derived from the budget for 2024 and the plan years 2025 and 2026 which were established at the legal entity level and approved by Management Board and Supervisory Board. The forecasted cash flows have been extrapolated to the years 2027 and 2028. For the period after 2029 a growth rate equal to the weighted average of the forecasted annual real GDP growth rate for the period 2029-2054 is taken into account.
\nThe pre-tax weighted average cost of capital (WACC) is estimated per\u00a0CGU and varies mainly due to differences in risk free rates. The risk-free rates per CGU are equal to the weighted average of the rate of return on local sovereign bonds or strips. The WACC has predominately increased due to higher risk-free rates.\u00a0The main assumptions used to determine the WACC were assessed by an external certified valuation expert.
\nThe key assumptions for 2023 and 2022 for each CGU are as follows:
\n| \u00a0 | 2023 | 2022 | ||
|---|---|---|---|---|
| \u00a0 | Pre-tax WACC | Terminal | Pre-tax WACC | Terminal |
EMEA | 14.5% | 2.8% | 11.0% | 2.4% |
Americas | 16.7% | 2.7% | 14.2% | 2.4% |
Asia-Pacific | 15.0% | 3.5% | 15.5% | 3.5% |
No impairment of goodwill was necessary following impairment tests on all cash generating units within the Group. The discounted future cash flows from all cash generating units exceed the value of the goodwill and other relevant net assets.
\nIt is inherent in the method of computation used that a change in the assumptions may lead to a different conclusion. Therefore, a sensitivity analysis is performed based on a change in a key assumption while keeping all other assumptions unchanged.
\nThe following changes in assumptions are assessed:
Decrease of the average growth rate 2023-2027 to the terminal growth rate
Decrease of the terminal growth rate by 1.0%
Increase of the WACC by 1.0%
The conclusion based on the sensitivity analysis performed is that any reasonable change in the key assumptions would not lead to an impairment. For Asia-Pacific the break-even point is reached earlier than the other segments, but taking into account the considerable growth of the region and the expansion by means of the recent acquisition of Signet this scenario is highly unlikely.
\nThe supplier relationships consist of supplier bases within the following regions and remaining useful lives (RUL):
\nEUR 1,000 | RUL | 2023 | 2022 |
|---|---|---|---|
EMEA | 4-13 | 115,586 | 106,307 |
Americas | 5-16 | 151,953 | 129,088 |
Asia-Pacific | 4-16 | 324,679 | 269,467 |
| \u00a0 | \u00a0 | 592,218 | 504,861 |
The remaining useful lives of supplier bases are assessed at each reporting date and adjusted if appropriate. Furthermore, triggering events for a possible impairment are evaluated annually by means of assessing the potential impact of available internal and external information sources.
\nBrand names relate to the IMCD brand. As no assumption can be made about the durability of its economic use, the brand name has an indefinite useful life. The IMCD brand name is considered as a corporate asset and hence allocated to the individual CGUs for goodwill impairment testing purposes. The carrying amount of the brand name has been allocated to the CGUs as follows: EMEA: EUR 10.9 million (2022: EUR 10.9 million), Asia-Pacific: EUR 6.1 million (2022: EUR 5.5 million) and Americas: EUR 7.9 million (2022: EUR 8.6 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-605": { "value": "\nFor the purpose of goodwill impairment testing, goodwill is allocated to the following cash generating units.
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
EMEA | 444,897 | 386,793 |
Americas | 421,491 | 376,058 |
Asia-Pacific | 745,962 | 623,701 |
| \u00a0 | 1,612,350 | 1,386,552 |
A cash generating unit (CGU) represents the lowest level within the Group at which goodwill is monitored for internal management\u00a0purposes.
\nThe recoverable amount per CGU is based on its value in use and is determined by discounting the future cash flows\u00a0to be\u00a0generated from the continued use of the CGUs. The cash flow forecasts were derived from the budget for 2024 and the plan years 2025 and 2026 which were established at the legal entity level and approved by Management Board and Supervisory Board. The forecasted cash flows have been extrapolated to the years 2027 and 2028. For the period after 2029 a growth rate equal to the weighted average of the forecasted annual real GDP growth rate for the period 2029-2054 is taken into account.
\nThe pre-tax weighted average cost of capital (WACC) is estimated per\u00a0CGU and varies mainly due to differences in risk free rates. The risk-free rates per CGU are equal to the weighted average of the rate of return on local sovereign bonds or strips. The WACC has predominately increased due to higher risk-free rates.\u00a0The main assumptions used to determine the WACC were assessed by an external certified valuation expert.
\nThe key assumptions for 2023 and 2022 for each CGU are as follows:
\n| \u00a0 | 2023 | 2022 | ||
|---|---|---|---|---|
| \u00a0 | Pre-tax WACC | Terminal | Pre-tax WACC | Terminal |
EMEA | 14.5% | 2.8% | 11.0% | 2.4% |
Americas | 16.7% | 2.7% | 14.2% | 2.4% |
Asia-Pacific | 15.0% | 3.5% | 15.5% | 3.5% |
No impairment of goodwill was necessary following impairment tests on all cash generating units within the Group. The discounted future cash flows from all cash generating units exceed the value of the goodwill and other relevant net assets.
\nIt is inherent in the method of computation used that a change in the assumptions may lead to a different conclusion. Therefore, a sensitivity analysis is performed based on a change in a key assumption while keeping all other assumptions unchanged.
\nThe following changes in assumptions are assessed:
Decrease of the average growth rate 2023-2027 to the terminal growth rate
Decrease of the terminal growth rate by 1.0%
Increase of the WACC by 1.0%
The conclusion based on the sensitivity analysis performed is that any reasonable change in the key assumptions would not lead to an impairment. For Asia-Pacific the break-even point is reached earlier than the other segments, but taking into account the considerable growth of the region and the expansion by means of the recent acquisition of Signet this scenario is highly unlikely.
\nThe supplier relationships consist of supplier bases within the following regions and remaining useful lives (RUL):
\nEUR 1,000 | RUL | 2023 | 2022 |
|---|---|---|---|
EMEA | 4-13 | 115,586 | 106,307 |
Americas | 5-16 | 151,953 | 129,088 |
Asia-Pacific | 4-16 | 324,679 | 269,467 |
| \u00a0 | \u00a0 | 592,218 | 504,861 |
The remaining useful lives of supplier bases are assessed at each reporting date and adjusted if appropriate. Furthermore, triggering events for a possible impairment are evaluated annually by means of assessing the potential impact of available internal and external information sources.
\nBrand names relate to the IMCD brand. As no assumption can be made about the durability of its economic use, the brand name has an indefinite useful life. The IMCD brand name is considered as a corporate asset and hence allocated to the individual CGUs for goodwill impairment testing purposes. The carrying amount of the brand name has been allocated to the CGUs as follows: EMEA: EUR 10.9 million (2022: EUR 10.9 million), Asia-Pacific: EUR 6.1 million (2022: EUR 5.5 million) and Americas: EUR 7.9 million (2022: EUR 8.6 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-610": { "value": "\nRight-of-use assets carrying amounts comprise:
\n| \u00a0 | \u00a0 | Property, plant and equipment | |||
|---|---|---|---|---|---|
EUR 1,000 | \u00a0 | Land and | Cars | Other assets | Total |
Balance as at 1 January 2023 | \u00a0 | 73,393 | 8,996 | 553 | 82,942 |
Acquisitions through business combinations | \u00a0 | 4,109 | 24 | 54 | 4,187 |
Depreciation and amortisation for the year | \u00a0 | (19,683) | (5,662) | (370) | (25,715) |
Additions for the year | \u00a0 | 31,483 | 9,047 | 573 | 41,103 |
Disposals | \u00a0 | (1,143) | (417) | (29) | (1,589) |
Effect of movements in exchange rates | \u00a0 | (683) | (132) | 11 | (804) |
Balance as at 31 December 2023 | \u00a0 | 87,476 | 11,856 | 792 | 100,124 |
| \u00a0 | \u00a0 | Property, plant and equipment | |||
|---|---|---|---|---|---|
EUR 1,000 | \u00a0 | Land and | Cars | Other assets | Total |
Balance as at 1 January 2022 | \u00a0 | 60,812 | 7,809 | 688 | 69,309 |
Acquisitions through business combinations | \u00a0 | 2,435 | 170 | 12 | 2,617 |
Depreciation and amortisation for the year | \u00a0 | (17,751) | (4,735) | (368) | (22,854) |
Additions for the year | \u00a0 | 29,230 | 5,754 | 189 | 35,173 |
Disposals | \u00a0 | (2,510) | (140) | (18) | (2,668) |
Effect of movements in exchange rates | \u00a0 | 1,177 | 138 | 50 | 1,365 |
Balance as at 31 December 2022 | \u00a0 | 73,393 | 8,996 | 553 | 82,942 |
The Group leases several assets including offices, warehouses and cars.
\nThe balance sheet shows the following lease liabilities:
\nEUR 1,000 | Note | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current | 24,743 | 20,028 | |
Non-current | 78,498 | 65,782 | |
Total lease liabilities | \u00a0 | 103,241 | 85,811 |
The undiscounted lease liabilities are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
Less than one year | 28,140 | 22,333 |
One to five years | 72,175 | 53,850 |
More than 5 years | 12,907 | 17,206 |
Total undiscounted lease liabilities at 31 December | 113,222 | 93,388 |
The weighted average discount rate as of 31 December 2023 is 3.99% (2022: 3.32%).
\nIf it is reasonably certain that enforceable extension options will be used, these have been included in the lease.
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
Depreciation | 25,715 | 22,849 |
Amortisation | - | - |
Interest on lease liabilities | 3,098 | 2,531 |
Variable lease payments not included in the measurement of lease liabilities | 390 | 281 |
Income from sub-leasing right-of-use assets | 5 | 122 |
Expense related to short-term leases | 1,561 | 879 |
Expense related to leases of low-value assets, excluding short-term leases of low-value assets | 423 | 388 |
EUR 1,000 | 2023 | 2022 |
|---|---|---|
Total cash flows for leases (including short-term and low-value leases) | 25,526 | 20,183 |
The equity accounted investees relates to the 49% share in SARL IMCD Group Algerie. The following table analyses the carrying amount and share of profit and OCI of the equity interest.
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January | 71 | 71 |
Capital contributions | - | - |
Acquisitions through business combinations | - | 71 |
Divestment | - | (71) |
Result for the year | (19) | 0 |
Effect of movements in exchange rates | 1 | - |
Balance as at 31 December | 53 | 71 |
The net assets of SARL IMCD Group Algerie consist of total assets amounting to EUR 354 thousand (2022: EUR 520 thousand) and current liabilities of EUR 246 thousand (2022: EUR 434 thousand). The net result for the year 2023 is a loss of EUR 19 thousand. The net result for the year 2022 was nihil. As at 31 December 2023 net equity value of SARL IMCD Group Algerie was EUR 107 thousand.
\nThe shares of Velox China have been transferred to the other shareholder of the joint venture per 4 May 2023. The total assets per 31 December 2022 were amounting to EUR 70 thousand and the net equity value was EUR 55 thousand.
\nAt 31 December 2023 the Group has outstanding receivables from SARL IMCD Group Algerie of EUR 255 thousand (2022: EUR 457 thousand).
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-613": { "value": "\nThe other financial assets relate to receivables with a remaining term exceeding one year and includes rent and other deposits.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-614": { "value": "\nThe Group has unrecognised deferred tax assets of EUR 14.5 million (2022: 10.5 million), consisting of unrecognised deferred tax asset of entities in EMEA EUR 4.6 million (2022: EUR 0.2 million) and entities in Asia-Pacific EUR 9.9 million (2022: EUR 10.3 million). The amount EMEA mainly relates to unrecognised interest losses in the Netherlands with an infinite carry forward period and the amount in Asia-Pacific mainly relates to unrecognised capital losses in Australia with an infinite carry forward period.
\nAs of 31 December 2023, the group has unrecognised deferred tax liabilities to the amount of EUR 51.5 million (2022: EUR 39.4 million) for potential withholding tax liabilities related to investments in subsidiaries. The liabilities are not recognised because the Company controls the dividend policy of the subsidiaries and does not foresee reversal of the temporary differences in the foreseeable future.
\nDeferred tax assets and liabilities are attributable to the following:
\nEUR 1,000 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
|---|---|---|---|---|---|---|
| \u00a0 | Assets | Liabilities | Net | |||
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Property, plant and equipment | 1,026 | 387 | 959 | 814 | 67 | (427) |
Intangible assets | 1,618 | 2,137 | 146,949 | 129,465 | (145,331) | (127,328) |
Right-of-use assets | 375 | 496 | 19,810 | 15,524 | (19,435) | (15,028) |
Financial fixed assets | 985 | 1,284 | 173 | 168 | 812 | 1,117 |
Trade debtors and other receivables | 3,873 | 2,405 | 746 | 367 | 3,128 | 2,038 |
Inventories | 7,936 | 4,584 | 407 | 929 | 7,529 | 3,655 |
Share based payment reserve | 753 | 660 | 82 | 154 | 671 | 506 |
Loans and borrowings | 255 | 272 | 219 | - | 36 | 272 |
Lease Liabilities | 18,921 | 15,992 | (1,946) | 124 | 20,867 | 15,868 |
Employee benefits and other provisions | 4,999 | 4,996 | 1,726 | 1,452 | 3,273 | 3,544 |
Trade and other payables | 7,282 | 8,706 | 85 | 1,002 | 7,197 | 7,704 |
Other items | 3,850 | 3,350 | 1,748 | 21 | 2,102 | 3,329 |
Tax loss carry-forwards | 6,586 | 9,545 | (561) | - | 7,148 | 9,545 |
Tax assets/(liabilities) | 58,458 | 54,814 | 170,396 | 150,020 | (111,939) | (95,205) |
Set off of tax | (16,928) | (19,201) | (16,928) | (19,201) | - | - |
Net tax assets/(liabilities) | 41,530 | 35,613 | 153,469 | 130,819 | (111,939) | (95,205) |
The unused tax losses and unused tax credits include EUR 5.3 million of tax credits (2022: EUR 5.9 million) related to foreign withholding taxes.
\nEUR 1,000 | Balance as at 1 January 2023 | Recognised in | Recognised | Recognised | Acquired in | Other | Balance as at 31 December 2023 |
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Property, plant and equipment | (427) | 596 | - | - | (93) | (10) | 67 |
Intangible assets | (127,328) | 9,454 | - | 1,004 | (33,367) | 4,907 | (145,331) |
Right-of-use-assets | (15,028) | (4,548) | - | - | - | 141 | (19,435) |
Financial fixed assets | 1,116 | (302) | - | - | - | (2) | 812 |
Trade debtors and other receivables | 2,038 | (17) | - | - | 1,167 | (61) | 3,128 |
Inventories | 3,655 | 844 | - | - | 3,079 | (50) | 7,528 |
Share based payment reserve | 506 | 157 | - | - | - | 8 | 671 |
Loans and borrowings | 272 | (1,814) | - | (69) | - | 1,647 | 36 |
Lease liability | 15,868 | 5,176 | - | - | - | (177) | 20,867 |
Employee benefits and other provisions | 3,544 | (237) | - | 536 | (134) | (436) | 3,273 |
Trade and other payables | 7,704 | (218) | - | (20) | 153 | (423) | 7,197 |
Other items | 3,329 | 1,491 | - | - | - | (2,719) | 2,102 |
Tax losses carried forward | 9,545 | (2,251) | - | - | - | (147) | 7,147 |
Net tax assets/(liabilities) | (95,205) | 8,331 | - | 1,451 | (29,194) | 2,678 | (111,939) |
The group utilised deferred tax assets related to unused tax losses and unused tax credits to an amount of EUR 0.1 million in the financial year (2022: EUR 0.1 million).
\nEUR 1,000 | Balance as at 1 January 2022 | Recognised in | Recognised | Recognised | Acquired in | Other | Balance as at 31 December 2022 |
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Property, plant and equipment | (128) | (301) | - | - | 2 | - | (427) |
Intangible assets | (116,725) | 5,346 | - | - | (18,663) | 2,713 | (127,329) |
Right-of-use assets | (11,435) | (3,596) | - | - | (84) | 87 | (15,028) |
Other financial assets | 1,353 | (235) | - | - | - | (1) | 1,117 |
Trade and other receivables | 2,109 | (506) | - | - | 346 | 89 | 2,038 |
Inventories | 2,635 | 116 | - | - | 799 | 105 | 3,655 |
Share-based payment reserve | 658 | (165) | - | - | - | 13 | 506 |
Loans and borrowings | 197 | 468 | - | (606) | - | 213 | 272 |
Lease liabilities | 12,693 | 3,230 | - | - | - | (55) | 15,868 |
Employee benefits and other provisions | 4,503 | (463) | (610) | (583) | 610 | 87 | 3,544 |
Trade and other payables | 3,657 | 2,010 | - | - | 316 | 1,722 | 7,705 |
Other items | 3,025 | 1 | - | - | 119 | 184 | 3,329 |
Unused tax losses and unused tax credits | 10,601 | (1,260) | - | - | - | 204 | 9,545 |
Net tax assets/(liabilities) | (86,857) | 4,645 | (610) | (1,189) | (16,555) | 5,361 | (95,205) |
The value of the inventory is as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Trade goods | 581,485 | 622,098 |
Total Trade goods | 581,485 | 622,098 |
Cost of materials and inbound logistics included in profit or loss of 2023 amounted to EUR 3,320.1 million (2022: EUR 3,454.3 million). This cost includes write-downs of inventories to net realisable value of EUR 16.6 million (2022: EUR 14.1 million). The reversal of write-downs amounted to EUR 5.4 million (2022: EUR 2.6 million). The write-down of inventories is mainly due to inventories past their expiration dates or inventories which are not marketable.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-616": { "value": "\nCost of materials and inbound logistics included in profit or loss of 2023 amounted to EUR 3,320.1 million (2022: EUR 3,454.3 million). This cost includes write-downs of inventories to net realisable value of EUR 16.6 million (2022: EUR 14.1 million). The reversal of write-downs amounted to EUR 5.4 million (2022: EUR 2.6 million). The write-down of inventories is mainly due to inventories past their expiration dates or inventories which are not marketable.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-617": { "value": "\nAll trade and other receivables are current.
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Trade receivables | 686,849 | 661,902 |
Other receivables | 45,160 | 40,373 |
Total Trade and other receivables | 732,008 | 702,275 |
The composition of the other receivables is as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Taxes and social securities | 19,791 | 16,677 |
Prepaid expenses | 17,038 | 15,856 |
Receivables from employees | 293 | 316 |
Derivatives used for hedging | 122 | 180 |
Other receivables | 7,916 | 7,344 |
Total other receivables | 45,160 | 40,373 |
The Group\u2019s exposure to currency risks related to trade and other receivables is disclosed in note 5.
\nThe ageing of trade and other receivables at the reporting date was as follows:
\nEUR 1,000 | 2023 | 2022 | ||
|---|---|---|---|---|
| \u00a0 | Gross | Impairment | Gross | Impairment |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current 0 - 30 days past due | 710,931 | 4,007 | 671,877 | 1,672 |
Past due 30 - 60 days | 17,887 | 1,365 | 19,228 | 819 |
Past due 60 - 90 days | 5,482 | 1,173 | 6,529 | 1,044 |
More than 90 days | 19,034 | 14,779 | 20,470 | 12,293 |
Total | 753,333 | 21,325 | 718,104 | 15,829 |
The movement in the allowance for impairment losses in respect of trade and other receivables during the year was as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Balance at 1 January | 15,829 | 15,662 |
Acquisitions through business combinations | 6,075 | 3,143 |
Impairment loss recognised | 5,551 | 2,276 |
Impairment loss reversed | (4,704) | (2,986) |
Trade receivables written-off | (1,307) | (2,662) |
Currency exchange result | (119) | 395 |
Total | 21,325 | 15,829 |
As at 31 December 2023, the total impairment includes an amount of EUR 1,796 thousand (2022: EUR 1,956 thousand) related to customers declared insolvent. The remainder of the impairment loss as at 31 December 2023 relates to several customers who are expected to be unable to pay their outstanding balances, mainly due to economic circumstances, and the general provision for expected credit losses for trade and other receivables. The Group believes that the majority of the receivables that are past due by more than 30 days are still collectable, based on historic payment behaviour and analyses of the underlying customers\u2019 creditworthiness.
\nThe maximum exposure to credit risk for trade and other receivables at the reporting date by geographic region was as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
Carrying amount | \u00a0 | \u00a0 |
EMEA | 299,278 | 288,275 |
Americas | 202,584 | 217,557 |
Asia-Pacific | 230,146 | 196,441 |
Total Carrying amount | 732,008 | 702,274 |
The cash and cash equivalents are as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 394,462 | 222,005 |
Cash and cash equivalents in the statement of cash flows | 394,462 | 222,005 |
An amount of EUR 2.3 million IMCD Rus LLC is not freely available for use by the Group. The remaining cash and cash equivalent balances are available for use by the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-619": { "value": "\nAs of 31 December 2023, the authorised share capital comprised 150,000,000 ordinary shares of which 56,987,858 shares have been issued. The shares have a nominal value of EUR 0.16 each and all shares rank equally with regard to the Company\u2019s residual assets.
\nThe shareholders are entitled to receive dividends and are entitled to one vote per share at meetings of the Company. Following the resolution of the Annual General Meeting in 2023, the Company distributed a dividend in cash of EUR 135.1 million (2022: EUR 92.2 million).
\nThe share premium as of 31 December 2023 amounted to EUR 1,051.4 million (31 December 2022: EUR 1,051.4 million).
\nThe translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as from the translation of liabilities that hedge the Company\u2019s net investment in foreign subsidiaries.
\nThe hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.
\nThe reserve own shares comprises the cost of the Company's shares held by the Group to fund its long-term incentive plan. At 31 December 2023, the Group held 67,774 of the Company's shares (as at 31 December 2022: 101,275 shares). During 2023 the Group transferred 33,501 shares (EUR 4,2 million) to fulfil its annual obligation from the long-term incentive plan.
\nOther reserves include reserves related to the accumulated actuarial gains and losses recognised in other comprehensive income and to share based payments as well as legal reserves related to \u2018group companies\u2019 of EUR 15.9 million (31 December 2022: EUR 13.7 million, transferred from retained earnings to other reserves in 2023) and to capitalized development costs of EUR 0.8 million (31 December 2022: EUR 1.0 million, transferred from retained earnings to other reserves in 2023).
\nThe item \u2018group companies\u2019 relates to the \u2018wettelijke reserve deelnemingen\u2019, which is required by Dutch law. This reserve relates to any legal or economic restrictions on the ability of affiliated companies to transfer funds to the parent company in the form of dividends.
\nEUR 1,000 | Attributable to owners of the Company | |||
|---|---|---|---|---|
| \u00a0 | Translation | Hedging | Other | Total other |
2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Foreign currency translation differences for foreign operations, net of tax | (52,047) | - | - | (52,047) |
Effective portion of changes in fair value of cash flow hedges, net of tax | - | 61 | - | 61 |
Defined benefit plan actuarial gains and losses net of tax | - | - | (1,844) | (1,844) |
Total other comprehensive income | (52,047) | 61 | (1,844) | (53,830) |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Foreign currency translation differences for foreign operations, net of tax | (476) | - | - | (476) |
Effective portion of changes in fair value of cash flow hedges, net of tax | - | (110) | - | (110) |
Defined benefit plan actuarial gains and losses net of tax | - | - | 6,222 | 6,222 |
Total other comprehensive income | (476) | (110) | 6,222 | 5,636 |
Retained earnings are the cumulative net earnings or profits of a company after accounting for dividend payments.
\nIn December 2023, IMCD completed the acquisition of the remaining 30% interest in Signet. It was executed on the basis of the share purchase agreement of September 2020. The increase in the consideration payable of EUR 51.6 million resulted from the improved actual level of profitability of Signet, compared with the assumptions used in the previous fair value determination. This increase is accounted through retained earnings. Refer to Note 7 and Note 29 for further details of the transaction.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-620": { "value": "\nAs of 31 December 2023, the authorised share capital comprised 150,000,000 ordinary shares of which 56,987,858 shares have been issued. The shares have a nominal value of EUR 0.16 each and all shares rank equally with regard to the Company\u2019s residual assets.
\nThe shareholders are entitled to receive dividends and are entitled to one vote per share at meetings of the Company. Following the resolution of the Annual General Meeting in 2023, the Company distributed a dividend in cash of EUR 135.1 million (2022: EUR 92.2 million).
\nThe share premium as of 31 December 2023 amounted to EUR 1,051.4 million (31 December 2022: EUR 1,051.4 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-621": { "value": "\nThe translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as from the translation of liabilities that hedge the Company\u2019s net investment in foreign subsidiaries.
\nThe hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.
\nThe reserve own shares comprises the cost of the Company's shares held by the Group to fund its long-term incentive plan. At 31 December 2023, the Group held 67,774 of the Company's shares (as at 31 December 2022: 101,275 shares). During 2023 the Group transferred 33,501 shares (EUR 4,2 million) to fulfil its annual obligation from the long-term incentive plan.
\nOther reserves include reserves related to the accumulated actuarial gains and losses recognised in other comprehensive income and to share based payments as well as legal reserves related to \u2018group companies\u2019 of EUR 15.9 million (31 December 2022: EUR 13.7 million, transferred from retained earnings to other reserves in 2023) and to capitalized development costs of EUR 0.8 million (31 December 2022: EUR 1.0 million, transferred from retained earnings to other reserves in 2023).
\nThe item \u2018group companies\u2019 relates to the \u2018wettelijke reserve deelnemingen\u2019, which is required by Dutch law. This reserve relates to any legal or economic restrictions on the ability of affiliated companies to transfer funds to the parent company in the form of dividends.
\nEUR 1,000 | Attributable to owners of the Company | |||
|---|---|---|---|---|
| \u00a0 | Translation | Hedging | Other | Total other |
2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Foreign currency translation differences for foreign operations, net of tax | (52,047) | - | - | (52,047) |
Effective portion of changes in fair value of cash flow hedges, net of tax | - | 61 | - | 61 |
Defined benefit plan actuarial gains and losses net of tax | - | - | (1,844) | (1,844) |
Total other comprehensive income | (52,047) | 61 | (1,844) | (53,830) |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Foreign currency translation differences for foreign operations, net of tax | (476) | - | - | (476) |
Effective portion of changes in fair value of cash flow hedges, net of tax | - | (110) | - | (110) |
Defined benefit plan actuarial gains and losses net of tax | - | - | 6,222 | 6,222 |
Total other comprehensive income | (476) | (110) | 6,222 | 5,636 |
The non-controlling interest relates to IMCD Arabia Trading LLC. IMCD has 75% share and the non-controlling party has 25% share in IMCD Arabia Trading LLC. Profit sharing is determined on a 90%-10% basis, respectively.
\nAs at 31 December 2023, the non-controlling interest amounts to EUR 1,403 thousand. The net loss for the financial year attributed to the non-controlling interest amounts to EUR 47 thousand.
", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-626": { "value": "\nThis note provides information about the contractual terms of the Group\u2019s interest bearing loans and borrowings, which are measured at amortised cost. In addtion this note also includes deferred & contingent considerations, which are measured at fair value to profit and loss. For more information about the Group\u2019s exposure to interest rate, foreign currency and liquidity risk, see Note 5.
\nEUR 1,000 | Note | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bank loans | \u00a0 | 1,088,101 | 594,867 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Deferred and contingent considerations | 82,468 | 250,316 | |
Lease liabilities | \u00a0 | 78,498 | 65,782 |
Other liabilities | \u00a0 | 1,400 | 1,923 |
Total non-current liabilities | \u00a0 | 1,250,467 | 912,889 |
The terms and conditions of outstanding non-current loans are as follows:
\nEUR 1,000 | Curr | Note | Nominal | Year of | Face value 2023 | Carrying amount 2023 | Face value 2022 | Carrying amount 2022 |
|---|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bond loan (fix rate) | EUR | \u00a0 | 2.50% | 2025 | 300,000 | 299,359 | 300,000 | 298,334 |
Bond loan (fix rate) | EUR | \u00a0 | 2.13% | 2027 | 300,000 | 297,374 | 300,000 | 296,533 |
Bond loan (fix rate) | EUR | \u00a0 | 4.88% | 2028 | 500,000 | 491,368 | \u00a0 | \u00a0 |
Profit sharing arrangements | EUR | \u00a0 | 1.53% | 2024-2027 | 1,400 | 1,400 | 1,923 | 1,923 |
Lease liabilities1 | \u00a0 | \u00a0 | 0.0% - 26.40% | 2024-2055 | 85,082 | 78,498 | 71,055 | 65,782 |
Total interest-bearing liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 1,186,482 | 1,167,999 | 672,979 | 662,572 |
Deferred and contingent considerations | \u00a0 | \u00a0 | \u00a0 | 85,750 | 82,468 | 256,586 | 250,316 | |
Total non-current liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 1,272,232 | 1,250,467 | 929,564 | 912,889 |
The total non-current lease liabilities face value of EUR 85.1 million consist of lease liabilities denominated in various currencies, of which EUR 32.1 million in EUR, EUR 11.8 million in CAD, EUR 11.0 million in USD, EUR 5.0 million in INR, EUR 4.1 million in AUD, EUR 3.4 million in CHF. The remaining amount of EUR 17.6 million is denominated in various currencies.
\nOn 8 February 2023, IMCD completed the refinancing of its multi-currency revolving credit facility. The new facility, with a maturity data of 8 February 2029, amounts to EUR 600 million and can be drawn in EUR and USD as well as, to an agreed sublimit, in AUD and GBP. The credit revolving facility has an interest margin dependent on external credit ratings. For the new revolving credit facility a maximum leverage of 3.75 times EBITDA (with a spike period maximum of 4.25), tested semi-annually is applicable.
\nOn 18 September 2023, IMCD issued an EUR 500 million rated corporate bond loan with institutional investors. This five-year senior unsecured bond loan matures on 18 September 2028 and has a fixed coupon of 4.875%. The bond loan is traded on the EURO MTF market of the Luxembourg Stock Exchange. The proceeds of the bond loan issue will be used for general corporate purposes, including the refinancing of existing indebtedness.
\nThe first senior unsecured fixed rates note, issued by IMCD N.V. on 26 March 2018, had a closing price of EUR 98.42 at 31 December 2023 (31 December 2022: EUR 97,08 ). The second senior unsecured fixed rates note, issued by IMCD N.V. on 31 March 2022, had a closing price of EUR 95.55 at 31 December 2023. The third unsecured fixed rates note, issued by IMCD N.V. on 18 September 2023, had a closing price of EUR 104.78
\nThe bonds are listed on the Luxembourg Euro MTF market and matures on respectively 26 March 2025, 31 March 2027 and 18 September 2028.
\nThe Group is obliged to meet requirements from the covenants in connection with the interest bearing loan facilities. These requirements relate to ratios for maximum leverage.
\nThe leverage covenants apply to the Group as at 31 December 2023:
For the revolving credit facility of EUR 600 million, a maximum leverage of 3.75 times EBITDA applies (with a spike period maximum of 4.25), tested semi-annually.
| \u00a0 | 2023 | 2022 | ||
|---|---|---|---|---|
| \u00a0 | Outcome | Covenant | Outcome | Covenant |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Reported leverage | 2.3 | \u00a0 | 1.8 | \u00a0 |
Leverage including pro-forma results | 2.3 | \u00a0 | 1.7 | \u00a0 |
Leverage loan documentation | 1.7 | max. 3.75 | 1.2 | max. 3.75 |
The actual reported leverage ratio as at 31 December 2023 was 2.3 times EBITDA (31 December 2022: 1.8 times EBITDA). Including the full year impact of acquisitions completed in 2023, the leverage at the end of the financial year is 2.3 times EBITDA (31 December 2022: 1.7 times EBITDA). The leverage ratio calculated on the basis of the definitions used in the loan documentation applicable as at 31 December 2023 was 1.7 times EBITDA (31 December 2022: 1.2 times EBITDA), which is well below the defined maximum of 3.75 times EBITDA.
\nFor details of the contractual maturities of financial liabilities, reference is made to note 5.
\nEUR 1,000 | Note | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | \u00a0 | - | 40,000 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Deferred and contingent considerations | 20,404 | 23,294 | |
Lease liabilities | \u00a0 | 24,743 | 20,028 |
Other short term financial liabilities | \u00a0 | 384,404 | 252,720 |
Total Short-term financial liabilities | \u00a0 | 429,552 | 296,042 |
Other short-term financial liabilities include a revolving credit facility, bank overdrafts, other short-term credit facilities, including discounted bills and discounted notes and the amount payable to the minority shareholders of Signet.
\nThe following table provides an overview of the cash flow and non-cash flow movements of the non-current and current financial liabilities.
\nEUR 1,000 | 2022 | Cash flow | Acquisitions | Reclasses | Other non-cash movements | Effect of movements in exchange rates | 2023 |
|---|---|---|---|---|---|---|---|
Non-current | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bank Loans | 594,867 | 492,750 | 1,510 | (1,518) | 484 | 8 | 1,088,101 |
Deferred and contingent considerations | 250,316 | - | 81,725 | (219,195) | (19,142) | (11,236) | 82,468 |
Lease liabilities | 65,782 | - | 2,855 | (14,248) | 24,718 | (610) | 78,498 |
Other liabilities | 1,923 | (733) | 165 | - | - | 45 | 1,400 |
Total non-current | 912,889 | 492,017 | 86,256 | (234,961) | 6,060 | (11,793) | 1,250,467 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bank Loans | 40,000 | (41,518) | - | 1,518 | - | - | - |
Deferred and contingent considerations | 23,294 | (23,150) | 5,194 | 26,975 | (10,145) | (1,762) | 20,404 |
Lease liabilities | 20,028 | (25,526) | 1,164 | 14,248 | 15,192 | (363) | 24,743 |
Other liabilities | 252,722 | (110,693) | 16,510 | 192,220 | 51,604 | (17,959) | 384,404 |
Total current | 336,043 | (200,887) | 22,868 | 234,961 | 56,651 | (20,084) | 429,551 |
The other non-cash movements include fair value adjustments related to a net reduction in the estimated deferred and contingent consideration, mainly related to Sanrise (China) of EUR 15.6 million and Megasetia (Indonesia) of EUR 12.0 million.
\nThe other liabilities include the consideration payable to the minority shareholders of Signet following the completion of the acquisition of the remaining 30% interest in December 2023. The completion was executed on the basis of the share purchase agreement of September 2020. The consideration payable in other liabilities follows from the movements included, a reclassification from the deferred consideration and a non-cash movement (increase) of the consideration payable. The increase of EUR 51.6 million in the consideration resulted from the improved actual level of profitability of Signet, compared with the assumptions used in the previous fair value determination. This increase is accounted through retained earnings. Payment of the consideration for the remaining 30% was effected on 1 February 2024. Reference is made to Note 7and Note 27.
\n| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
EUR 1,000 | 2021 | Cash flow | Acquisitions | Reclasses | Other non-cash movements | Effect of movements in exchange rates | 2022 |
Non-current | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bank Loans | 337,528 | 295,149 | 2,413 | (40,000) | (490) | 267 | 594,867 |
Deferred and contingent considerations | 275,243 | - | 19,299 | (13,408) | (18,107) | (12,711) | 250,316 |
Lease liabilities | 52,712 | - | 2,119 | (12,393) | 22,800 | 543 | 65,782 |
Other liabilities | 1,369 | (584) | 1,092 | - | 6 | 40 | 1,923 |
Total non-current | 666,852 | 294,565 | 24,924 | (65,800) | 4,209 | (11,860) | 912,889 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bank Loans | - | - | - | 40,000 | - | - | 40,000 |
Deferred and contingent considerations | 33,614 | (47,265) | 11,182 | 13,408 | 11,164 | 1,191 | 23,294 |
Lease liabilities | 18,017 | (20,391) | 509 | 12,393 | 10,804 | (1,304) | 20,028 |
Other liabilities | 399,420 | (163,295) | 9,621 | \u00a0 | - | 6,976 | 252,722 |
Total current | 451,051 | (230,951) | 21,313 | 65,801 | 21,969 | 6,863 | 336,043 |
The liabilities associated with employee benefits consist of net defined benefit liabilities (pension schemes), termination benefits and other long-term employee benefits.
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Net defined benefit liability | 8,322 | 7,665 |
Termination benefits and other long-term employee benefits | 12,690 | 14,589 |
Total employee benefit liabilities | 21,012 | 22,254 |
The Group supports defined benefit plans in The Netherlands, The United Kingdom, Canada, Germany, Switzerland, Austria, The United States, South Korea, China and The Philippines.
\nThe net defined benefit liability has decreased as a result of the significant increases in the discount rates.
\nEUR 1,000 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
|---|---|---|---|---|---|---|
| \u00a0 | Defined benefit | Fair value of | Net defined benefit | |||
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January | 57,636 | 82,271 | 49,971 | 68,797 | 7,665 | 13,475 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Included in profit or loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current service cost | 1,297 | 1,492 | - | - | 1,297 | 1,492 |
Past service cost | 56 | 6 | - | - | 56 | 6 |
Settlements | (331) | (95) | (128) | - | (204) | (95) |
Interest cost/(income) | 2,290 | 1,360 | 2,093 | 1,053 | 198 | 307 |
| \u00a0 | 3,312 | 2,764 | 1,965 | 1,053 | 1,348 | 1,711 |
Included in OCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Remeasurement; loss/(gain): | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Actuarial loss/(gain) arising from changes in: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Demographic assumptions | (252) | 110 | - | - | (252) | 110 |
- Financial assumptions | 3,054 | (25,504) | - | - | 3,054 | (25,504) |
- Experience | 1,260 | 981 | - | - | 1,260 | 981 |
Return on plan assets excluding interest income | - | - | 2,453 | (19,712) | (2,453) | 19,712 |
Asset ceiling | - | - | (490) | (18) | 490 | 18 |
Effect of movements in exchange rates | 1,029 | (593) | 1,159 | (858) | (130) | 264 |
| \u00a0 | 5,091 | (25,007) | 3,122 | (20,587) | 1,968 | (4,420) |
Other | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Business combinations | 860 | - | 359 | - | 502 | - |
Contributions paid by the employer | - | - | 3,069 | 2,714 | (3,069) | (2,714) |
Contributions paid by the plan members | 2,101 | 792 | 2,102 | 792 | (1) | - |
Benefits paid | (3,062) | (3,184) | (2,973) | (2,798) | (89) | (386) |
| \u00a0 | (100) | (2,392) | 2,558 | 708 | (2,658) | (3,100) |
Balance as at 31 December | 65,938 | 57,636 | 57,616 | 49,971 | 8,323 | 7,665 |
EUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Equity securities | 8,037 | 7,648 |
Government bonds | 2,646 | 1,311 |
Qualifying insurance policies | 26,895 | 28,328 |
Other plan assets | 23,182 | 15,284 |
Asset Ceiling | (3,146) | (2,601) |
Total plan assets | 57,614 | 49,971 |
The Government Bonds in the UK are moved in 2020 into Liability Driven Investments (LDI\u2019s) and the LDI\u2019s are considered as other defined benefit plan assets.
\nDue to the asset ceiling applicable to the UK pension plan, in 2023 the actual fair value of the plan assets (EUR 58.1 million) exceeded the recognized plan assets (EUR 57.6 million) by EUR 490 thousand.
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Current service costs | 1,297 | 1,492 |
Past service costs | 56 | 6 |
Settlements | (204) | (95) |
Expense recognised in the line item 'Social security and other charges' | 1,148 | 1,403 |
Interest cost | 199 | 308 |
Expense recognised in the line item 'Finance costs' | 199 | 308 |
Total expense recognised in profit or loss | 1,347 | 1,711 |
Principal actuarial assumptions at the reporting date, expressed as weighted average:
\n| \u00a0 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Discount rate as at 31 December | 3.48% | 4.03% |
Future salary increases | 1.57% | 1.66% |
Future pension increases | 1.20% | 1.30% |
Price inflation | 2.02% | 2.09% |
Assumptions regarding future mortality are based on published statistics and mortality tables. The following tables have been used:
The Netherlands: AGPrognose2022Hoog 7 based on income class high-middle
The United Kingdom: before retirement \u2013 as per post retirement, after retirement:\u00a0\u00a0 S3PXA_L CMI 2022 model [1.25%]
Canada: CPM 2014 Public & Private with 2D projections using Scale B
Germany: Richttafel 2018G Klaus Heubeck;
Switzerland: BVG 2020 Generational
The Group expects EUR 3.556 thousand in contributions to be paid to its defined benefit plans in 2024. The Canadian pension plans are partially unfunded. The duration of the funded obligation based on expected cash flows is 11 years, the unfunded plans have an expected duration of 12 years.
\nThe defined benefit plans in Austria, Germany, the Philippines, The United States relate to a limited number of (retired) employees. For that reason, sensitivity analyses for these plans are not provided. The four significant defined benefit plans are the schemes in The Netherlands, The United Kingdom, Switzerland and Canada.
\nThe plan in the Netherlands was an average salary defined benefit plan until 31 December 2016. The plan is financed through an insurance policy. There are no specific material entity risks to which the plan is exposed and the plan assets are not invested in a single class of investments. From 2016 onwards no additional retirement benefits accrue in the defined benefit plan. The retirement benefits related to employee services in 2017 and onwards accrued in a new pension plan, effective from 1 January 2017. As a result of the parameters in the new pension contract, it classifies as a defined contribution plan.
\nThe plan in the United Kingdom has 29 members and is a final salary defined benefit plan. The plan is financed through a pension fund. The plan assets are not invested in a single class of investments.
\nThe plan in Canada consists of three separate plans: a pension and supplementary retirement pension plan for certain (former) executive members (9 members) and a non-pension post-retirement benefit plan providing extended health, dental, life insurance and accidental death and dismemberment benefits.\u00a0 The supplementary plan and non-pension plan are unfunded.
\nThe pension plans of IMCD Switzerland were revised and harmonised due to the merger between IMCD Switzerland AG and DCS Pharma AG. The revised plan was put in to effect as at 1 January 2022. The plan is financed through a pension fund and the plan assets are not invested in a single class of investments.
\nThe obligations arising from the defined benefit plans mentioned above are determined using the projected unit credit method. The projected unit credit method determines the expected benefits to be paid after retirement, taking dynamic measurement parameters into account and spreading them over the entire length of service of the employees participating in the plan. For this purpose, an actuarial valuation is obtained every year. The actuarial assumptions for the discount rate, salary growth rate, pension trend and life expectancy, which are used to calculate the defined benefit obligation are established on the basis of the respective economic circumstances.
\nThe plan assets measured at fair value are deducted from the present value of the defined benefit obligation (gross pension obligation). Plan assets are assets where the claim to said assets has, in principle, been assigned to the beneficiaries. This results in a net liability or a net asset to be recognized.
\nReasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligations of the three significant defined benefit plans by the amounts shown below:
\nEUR 1,000 | 2023 | 2022 | ||
|---|---|---|---|---|
| \u00a0 | Increase | Decrease | Increase | Decrease |
Defined benefit plan The Netherlands | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Discount rate (1% point movement) | (2,268) | 2,866 | (2,035) | 2,564 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Defined benefit plan The United Kingdom | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Discount rate (1% point movement) | (2,186) | 2,762 | (2,029) | 2,255 |
Future salary growth (1% point movement) | 46 | (46) | 56 | (56) |
Future pension growth (1% point movement) | 2,531 | (2,071) | 2,029 | (1,917) |
Future inflation (1% point movement) | 2,071 | (2,071) | 2,029 | (1,917) |
Future mortality (1 year) | 460 | (460) | 451 | (451) |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Defined benefit plan Canada | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Discount rate (1% point movement) | (876) | 1,045 | (829) | 456 |
Future salary growth (1% point movement) | 16 | (14) | 27 | (26) |
Future inflation (1% point movement) | 271 | (142) | 257 | (126) |
Future mortality (1 year) | (221) | 217 | (208) | 204 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Defined benefit plan Switzerland | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Discount rate (1% point movement (2022: 0.5%)) | (1,108) | 2,246 | (1,406) | 2,246 |
Future salary growth (1% point movement (2022: 0.5%)) | 65 | (59) | - | - |
Future mortality (1 year) | (218) | 217 | 305 | 101 |
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.
\nThe movements in the termination benefits and other long-term employee benefits are as follows:
\nEUR 1,000 | Note | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Liabilities as at 1 January | \u00a0 | 14,589 | 15,783 |
Assumed in business combinations | 317 | 1,132 | |
Additions (excluding interest cost) | \u00a0 | 2,042 | 1,805 |
Interest cost | \u00a0 | - | 18 |
Withdrawals | \u00a0 | (4,181) | (644) |
Releases | \u00a0 | (182) | (412) |
Actuarial results | \u00a0 | 440 | (2,455) |
Effect of movement in exchange rates | \u00a0 | (335) | (639) |
Liabilities as at 31 December | \u00a0 | 12,690 | 14,589 |
The termination and other long-term employee benefits comprises statutory imposed obligations for long or after-service benefits. The main obligations relate to the IFC retirement indemnity benefits in France and the legally required leaving-service indemnity TFR in Italy.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-629": { "value": "\nThe movements in provisions are as follows:
\nEUR 1,000 | Note | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January | \u00a0 | 13,814 | 6,494 |
Assumed in business combinations | 9,731 | 7,262 | |
Provisions made during the year | \u00a0 | 2,783 | 1,725 |
Provisions used during the year | \u00a0 | (1,256) | (390) |
Provisions released during the year | \u00a0 | (182) | (836) |
Effect of movement in exchange rates | \u00a0 | (101) | (441) |
Balance as at 31 December | \u00a0 | 24,790 | 13,814 |
The provision used in 2023 mainly relates to organisational changes. The majority of the provisions as at 31 December 2023 were recognized during the purchase price allocation for business combinations in situations where it was concluded that the acquired company had a legal or constructive present obligation as a result of a past event for which payment is probable and for which the amount can be reliably estimated.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-630": { "value": "\nThe trade and other payables are as follows:
\nEUR 1,000 | \u00a0 | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade payables | \u00a0 | 391,230 | 389,021 |
Total Trade payables | \u00a0 | 391,230 | 389,021 |
EUR 1,000 | \u00a0 | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivatives used for hedging | \u00a0 | 1,627 | 1,030 |
Taxes and social securities | \u00a0 | 34,096 | 34,311 |
Pension premiums | \u00a0 | 2,052 | 1,821 |
Current tax liability | \u00a0 | 14,515 | 17,270 |
Other creditors | \u00a0 | 4,729 | 10,191 |
Accrued interest expenses | \u00a0 | 18,211 | 10,961 |
Liabilities to personnel | \u00a0 | 49,710 | 54,657 |
Other accrued expenses | \u00a0 | 32,928 | 35,015 |
Total Other payables | \u00a0 | 157,869 | 165,255 |
At 31 December 2023, with the exception of some derivatives used for hedging, all trade and other payables have a term of less than one year.
\nThe Group\u2019s exposure to currency risk related to trade and other payables is disclosed in Note 5.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-631": { "value": "\nEUR 1,000 | \u00a0 | 2023 | 2022 |
|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivatives used for hedging | \u00a0 | 1,627 | 1,030 |
Taxes and social securities | \u00a0 | 34,096 | 34,311 |
Pension premiums | \u00a0 | 2,052 | 1,821 |
Current tax liability | \u00a0 | 14,515 | 17,270 |
Other creditors | \u00a0 | 4,729 | 10,191 |
Accrued interest expenses | \u00a0 | 18,211 | 10,961 |
Liabilities to personnel | \u00a0 | 49,710 | 54,657 |
Other accrued expenses | \u00a0 | 32,928 | 35,015 |
Total Other payables | \u00a0 | 157,869 | 165,255 |
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
31 December 2023 | \u00a0 | Carrying amount | Fair value | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
EUR 1,000 | Note | Financial assets at fair value through profit or loss | Amortised cost | Financial liabilities at fair value through profit or loss | Other | Total | Level 1 | Level 2 | Level 3 | Total |
Forward exchange contracts used for hedging | 122 | - | - | - | 122 | - | 122 | - | 122 | |
Forward exchange contracts used for hedging | - | - | 1,627 | - | 1,627 | - | 1,627 | - | 1,627 | |
Contingent consideration | - | - | 102,872 | - | 102,872 | - | - | 102,872 | 102,872 |
31 December 2022 | \u00a0 | Carrying amount | Fair value | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
EUR 1,000 | Note | Financial assets at fair value through profit or loss | Amortised cost | Financial liabilities at fair value through profit or loss | Other | Total | Level 1 | Level 2 | Level 3 | Total |
Forward exchange contracts used for hedging | 180 | - | - | - | 180 | - | 180 | - | 180 | |
Forward exchange contracts used for hedging | - | - | 1,030 | - | 1,030 | - | 1,030 | - | 1,030 | |
Contingent consideration | - | - | 273,610 | - | 273,610 | - | - | 273,610 | 273,610 |
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.
\nType | Valuation technique | Significant unobservable | Inter-relationship between significant unobservable inputs and fair value measurement |
Contingent consideration | Discounted cash flows: The valuation model considers the present value of expected payment, discounted using a risk-adjusted discount rate. The expected payment is determined by considering the possible scenarios of forecast EBITDA, the amount to be paid under each scenario and the probability of each scenario. |
| The estimated fair value would increase/(decrease) if:
|
Forward exchange contracts and interest rate swaps | Market comparison technique: The fair values are based on broker quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions in similar instruments. | Not applicable | Not applicable |
There were no financial instruments that are measured at amortised cost but for which fair value was disclosed classified as Level 3 either in the current year or in the prior year.
\nThe following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values.
\nEUR 1,000 | Note | Contingent |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2023 | \u00a0 | 273,610 |
Assumed in a business combination | 86,920 | |
Paid contingent consideration | \u00a0 | (23,150) |
Reclassification to other liabilities | (243,827) | |
Loss/(Gain) included in profit or loss | \u00a0 | (29,287) |
Loss/(Gain) included in equity | \u00a0 | 51,604 |
Effect of movement in exchange rates | \u00a0 | (12,998) |
Balance as at 31 December 2023 | \u00a0 | 102,872 |
| \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January 2022 | \u00a0 | 308,856 |
Assumed in a business combination | \u00a0 | 30,481 |
Paid contingent consideration | \u00a0 | (47,265) |
Loss/(Gain) included in profit or loss | \u00a0 | (6,943) |
Loss/(Gain) included in equity | \u00a0 | - |
Effect of movement in exchange rates | \u00a0 | (11,519) |
31 December 2022 | \u00a0 | 273,610 |
The amount assumed in business combinations relates to the deferred purchase prices for the acquisitions of Sanrise, O&3, CPS Oil-Tech, Tradeimpex and Needfill.
\nThe net gain included in profit and loss of EUR 29,287 thousand (2022: loss of EUR 6,943 thousand) is the result of remeasuring contingent considerations. The main fair value adjustments in 2023 relate to a reduction in the estimated deferred consideration, consisting of Sanrise (China) of EUR 15.6 million and Megasetia (Indonesia) of EUR 12.0 million. The reductions are the consequence of the actual lower level of profitability of the acquired entities, compared with the assumptions used in the previous fair value determination.
\nThe fair value of contingent considerations is subject to two principal assumptions. The effects of reasonable changes to these assumptions, keeping other assumptions constant, are set out below.
\n31 December 2023 | Profit or loss | |
|---|---|---|
EUR 1,000 | Increase | Decrease |
| \u00a0 | \u00a0 | \u00a0 |
EBITDA margin (10% movement) | (8,430) | 8,272 |
Risk-adjusted discount rate (discount rate 1% point movement) | 1,146 | (1,183) |
31 December 2022 | Profit or loss | |
|---|---|---|
EUR 1,000 | Increase | Decrease |
| \u00a0 | \u00a0 | \u00a0 |
EBITDA margin (10% movement) | (23,881) | 25,522 |
Risk-adjusted discount rate (discount rate 1% point movement) | 3,036 | (2,995) |
Gross amounts of financial assets and liabilities are offset on the basis of offsetting arrangements or are subject to enforceable master netting arrangements or similar agreements that do not meet the requirements for offsetting in the balance sheet.
\n31 December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
EUR 1,000 | Gross amount of financial assets and liabilities | Offsetting | Gross carrying amounts in the balance sheet | 31 December 2023 Net amount |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other receivables | 762,672 | (30,664) | 732,008 | 732,008 |
Cash and cash equivalents | 394,462 | - | 394,462 | 394,462 |
Other financial assets | 8,396 | - | 8,396 | 8,396 |
Trade payables | 394,757 | (3,527) | 391,230 | 391,230 |
Other payables | 185,005 | (27,136) | 157,869 | 157,869 |
Other short term financial liabilities | 429,552 | \u00a0 | 429,552 | 429,552 |
31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
EUR 1,000 | Gross amount of financial assets and liabilities | Offsetting | Gross carrying amounts in the balance sheet | 31 December 2022 Net amount |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other receivables | 723,299 | (21,024) | 702,275 | 702,275 |
Cash and cash equivalents | 222,005 | - | 222,005 | 222,005 |
Other financial assets | 7,016 | - | 7,016 | 7,016 |
Trade payables | 390,845 | (1,824) | 389,021 | 389,021 |
Other payables | 183,992 | (18,737) | 165,255 | 165,255 |
Other short term financial liabilities | 296,505 | (463) | 296,042 | 296,042 |
Commitments for minimum lease payments, which include short-term lease payments, in relation to operating leases are payable as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Within one year | 1,189 | 769 |
Later than one year but not later than five years | 8,028 | 9,836 |
Later than five years | 1,604 | 3,916 |
Total Operational leases | 10,820 | 14,520 |
As at 31 December 2023, the Group has granted guarantees of EUR 87.3 million (31 December 2022: EUR 95.7 million) in total. Those guarantees mainly consist of bank guarantees to customs and tax authorities of EUR 3.3 million (31 December 2022: EUR 2.9 million), office rental guarantees of EUR 3.6 million (31 December 2022: EUR 2.5 million), guarantees for goods and services of EUR 67.8 million (31 December 2022: EUR 88.7 million), letters of credit EUR 11.8 million (31 December 2022: EUR 0.3 million) and other guarantees of EUR 0.6 million (31 December 2022: EUR 1.3 million).
\nThe Group is a party to a limited number of legal proceedings incidental to its business. As is the case with other companies in similar industries, the Company faces exposures from actual or potential claims and legal proceedings. Although the ultimate result of legal proceedings cannot be predicted with certainty, it is the opinion of the Company\u2019s management that the outcome of any claim which is pending or threatened, either individually or on a combined basis and considering the insurance cover available, will not have a material effect on the financial position of the Company, its cash flows and result of operations.
\nIn our Annual Report 2022, IMCD reported on a class action lawsuit including PT Megasetia Agung Kimia (''Megasetia'') in Indonesia and its revoked license. On 21 June 2023, Megasetia was removed from the lawsuit and is no longer one of the defendants. On 6 December 2023, Megasetia regained its license to distribute pharmaceuticals materials.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-634": { "value": "\nCommitments for minimum lease payments, which include short-term lease payments, in relation to operating leases are payable as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Within one year | 1,189 | 769 |
Later than one year but not later than five years | 8,028 | 9,836 |
Later than five years | 1,604 | 3,916 |
Total Operational leases | 10,820 | 14,520 |
As at 31 December 2023, the Group has granted guarantees of EUR 87.3 million (31 December 2022: EUR 95.7 million) in total. Those guarantees mainly consist of bank guarantees to customs and tax authorities of EUR 3.3 million (31 December 2022: EUR 2.9 million), office rental guarantees of EUR 3.6 million (31 December 2022: EUR 2.5 million), guarantees for goods and services of EUR 67.8 million (31 December 2022: EUR 88.7 million), letters of credit EUR 11.8 million (31 December 2022: EUR 0.3 million) and other guarantees of EUR 0.6 million (31 December 2022: EUR 1.3 million).
\nThe Group is a party to a limited number of legal proceedings incidental to its business. As is the case with other companies in similar industries, the Company faces exposures from actual or potential claims and legal proceedings. Although the ultimate result of legal proceedings cannot be predicted with certainty, it is the opinion of the Company\u2019s management that the outcome of any claim which is pending or threatened, either individually or on a combined basis and considering the insurance cover available, will not have a material effect on the financial position of the Company, its cash flows and result of operations.
\nIn our Annual Report 2022, IMCD reported on a class action lawsuit including PT Megasetia Agung Kimia (''Megasetia'') in Indonesia and its revoked license. On 21 June 2023, Megasetia was removed from the lawsuit and is no longer one of the defendants. On 6 December 2023, Megasetia regained its license to distribute pharmaceuticals materials.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-635": { "value": "\nCommitments for minimum lease payments, which include short-term lease payments, in relation to operating leases are payable as follows:
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Within one year | 1,189 | 769 |
Later than one year but not later than five years | 8,028 | 9,836 |
Later than five years | 1,604 | 3,916 |
Total Operational leases | 10,820 | 14,520 |
As at 31 December 2023, the Group has granted guarantees of EUR 87.3 million (31 December 2022: EUR 95.7 million) in total. Those guarantees mainly consist of bank guarantees to customs and tax authorities of EUR 3.3 million (31 December 2022: EUR 2.9 million), office rental guarantees of EUR 3.6 million (31 December 2022: EUR 2.5 million), guarantees for goods and services of EUR 67.8 million (31 December 2022: EUR 88.7 million), letters of credit EUR 11.8 million (31 December 2022: EUR 0.3 million) and other guarantees of EUR 0.6 million (31 December 2022: EUR 1.3 million).
\nThe Group is a party to a limited number of legal proceedings incidental to its business. As is the case with other companies in similar industries, the Company faces exposures from actual or potential claims and legal proceedings. Although the ultimate result of legal proceedings cannot be predicted with certainty, it is the opinion of the Company\u2019s management that the outcome of any claim which is pending or threatened, either individually or on a combined basis and considering the insurance cover available, will not have a material effect on the financial position of the Company, its cash flows and result of operations.
\nIn our Annual Report 2022, IMCD reported on a class action lawsuit including PT Megasetia Agung Kimia (''Megasetia'') in Indonesia and its revoked license. On 21 June 2023, Megasetia was removed from the lawsuit and is no longer one of the defendants. On 6 December 2023, Megasetia regained its license to distribute pharmaceuticals materials.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-636": { "value": "\nThe Group has related party relationships with its shareholders, subsidiaries, Management Board and Supervisory Board and post-employment benefit plans. For an overview of the group companies, reference is made to the List of group companies as per 31 December 2023 on page .
\nThe financial transactions between the Company and its subsidiaries comprise financing related transactions and operational transactions in the normal course of business. Transactions within the Group are not included in these disclosures as these are eliminated in the consolidated financial statements.
\nThe members of the Management Board and the Supervisory board are considered key management personnel as defined in IAS 24 \u2018Related party disclosures\u2019. For details on their remuneration, reference is made to Note 53.
\nAt 31 December 2023 the Group has outstanding receivables from SARL IMCD Group Algerie of EUR 255 thousand (2022: EUR 457 thousand).
\nThe Group\u2019s main post-employment benefit plans are the defined benefit plans in the United Kingdom, Canada and The Netherlands.
\nIn the financial year, the contributions to the defined benefit plans were EUR 3,069 thousand (2022: EUR 2,714 thousand). The outstanding payable to the defined benefit plans as at the year-end 2023 is nihil (2022: nihil).
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-637": { "value": "\nOn 18 May 2023, IMCD signed an agreement to acquire 100% of the shares of the speciality distribution company in Malaysia, Euro Chemo-Pharma Sdn Bhd (\"Euro Chemo-Pharma\") and its wholly owned subsidiary, Biofresh Green Sdn Bhd (\"Biofresh\"). Together with 124 employees, Euro Chemo-Pharma and Biofresh are offering a wide range of products, mainly food, pharmaceutical and personal care applications and generated revenues of approximately EUR 55 million in the financial year ended on June 30, 2022. The transaction was closed on 29 February 2024.
\nOn 10 November 2023, IMCD signed an agreement to acquire two business lines from CJ Shah & Company for Cellulose Acetate Butyrate, Coalescing Agent, Polyolefin Polymers, and other chemicals primarily for Paints, Coatings, Adhesives and Lifesciences applications. These two business lines generated a revenue of approximately EUR 25 million) in the financial year that ended on March 31, 2023 with 20 employees. The transaction was closed on 22 January 2024.
\nOn 28 November 2023, IMCD signed an agreement to acquire the business of the speciality distribution company Guangzhou RBD Chemical Co., Ltd. in China (\"RBD\"). RBD focuses mainly on the lubricant additives and represents leading global suppliers. RBD is based in Guangzhou, China, and generated a revenue of approximately CNY 75 million (ca. EUR 10 million) in 2022 and has 12 employees. The transaction was closed on 1 February 2024.
\nOn 22 December 2023, IMCD signed an agreement to acquire the distribution business of Joli Foods S.A.S. (\"Joli Foods\") to expand its food and nutrition business and product portfolio in Colombia. Joli Foods is based in Bogota and generated a revenue of approximately USD 16 million (ca. EUR 15 million) in 2022 and will add eleven employees to the IMCD Colombian team. The transaction was closed on 14 February 2024.
\nOn 15 December 2023, IMCD signed an agreement to acquire 100% of the shares of Valuetree Ingredients Private Limited (\"Valuetree\") to expand its beauty and personal care footprint in India. Valuetree employs a team of 44 employees and generated a revenue of approximately INR 4.4 billion (ca. EUR 48 million) in the financial year that ended on March 31, 2023. The transaction will take place in two tranches. On 9 January 2024, IMCD acquired 70% of the share capital from the founders and the remaining 30% will be acquired in 2025.
\nIn December 2023, IMCD exercised a call option to acquire the remaining 30% of the shares from the minority shareholders of Signet, The completion of the acquisition of the remaining 30% interest was executed on the basis of the share purchase agreement of September 2020. As IMCD obtained full control over Signet as per November 2020, this purchase price obligation was included in IMCD\u2019s reported net debt position and results of Signet are consolidated in full into the IMCD figures since the November 2020 acquisition date. As a result, this completion, as such, will not impact the reported leverage or earnings levels of IMCD. Payment of the consideration for the remaining 30% of the shares in Signet was effected on 1 February 2024.
\nOn 16 February 2024, IMCD signed an agreement to acquire the business of the speciality distribution company ResChem Technologies Pty Ltd and ResChem Trust in Australia and New Zealand (\"ResChem\"). Established in 2007, ResChem specialises in resins, additives and pigments for use in inks, coatings, adhesives and construction applications. ResChem represents leading global suppliers which are complementary to IMCD's portfolio. ResChem is headquartered in Sydney, Australia, generated a revenue of approximately AUD 25 million (ca. EUR 15 million) in 2023 with 15 employees and strengthens IMCD's technical expertise with an application laboratory based in Sydney. The closing of the transaction is subject to customary closing conditions and is expected to take place in the second quarter of 2024.
\nApart from the aforementioned transactions, there were no material events after 31 December 2023 that would have changed the judgement and analysis by management of the financial condition at 31 December 2023 or the result for the year of the Company.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-638": { "value": "\nThe movement in the non-current liabilities during 2023 is as follows:
\n| \u00a0 | \u00a0 | \u00a0 |
|---|---|---|
EUR 1,000 | 2023 | 2022 |
| \u00a0 | \u00a0 | \u00a0 |
Balance as at 1 January | 595,948 | 338,529 |
Additions | 490,534 | 296,044 |
Redemptions | - | - |
Classified as current liability | - | (40,000) |
Transaction and other finance costs paid | 914 | 502 |
Amortisation of transaction and other finance costs | 1,792 | 873 |
Effect of movements in exchange rates | - | \u00a0 |
Balance as at 31 December | 1,089,188 | 595,948 |
The non-current liabilities consist of the carrying value of the Bond loans issued in 2018, 2022 and 2023, net of capitalised finance costs.
\nEUR 1,000 | Curr | Carrying amount | Contractual cash flows | 12 months or less | 1 - 2 years | 2 - 5 years | >5 years |
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bond loan | EUR | 1,088,101 | 1,387,050 | 38,325 | 338,325 | 886,025 | - |
Loans from subsidiaries | EUR | 1,087 | - | 549 | 538 | \u00a0 | - |
Total | \u00a0 | 1,089,188 | 1,387,050 | 38,874 | 338,863 | 886,025 | - |
The first senior unsecured fixed rates note, issued by IMCD N.V. on 26 March 2018, had a closing price of EUR 98.42 at 31 December 2022 (31 December 2022: EUR 97,08 ). The second senior unsecured fixed rates note, issued by IMCD N.V. on 31 March 2022, had a closing price of EUR 95.55 at 31 December 2023. and the third unsecured fixed rates note, issued by IMCD N.V. on 18 September 2023, had a closing price of EUR 104.78
\nFurther details of the bond loans are provided in Note 29 of the consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-639": { "value": "\nThe Company's current liabilities as of 31 December 2023 amounts to EUR 21.2 million (31 December 2022: EUR 55.3 million) and consists of a short-term liability to IMCD Finance B.V. and other current liabilities.
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
| \u00a0 | \u00a0 | \u00a0 |
Loans and borrowings | - | 40,000 |
Accounts payable to subsidiaries | 1,514 | 2,282 |
| \u00a0 | \u00a0 | \u00a0 |
Other current liabilities | \u00a0 | \u00a0 |
Creditors | 574 | 636 |
Liabilities to personnel | 600 | 950 |
Accrued interest expenses | 17,548 | 10,759 |
Other accrued expenses | 942 | 680 |
| \u00a0 | 19,664 | 13,025 |
| \u00a0 | \u00a0 | \u00a0 |
Current liabilities | 21,178 | 55,307 |
With reference to Section 2:382a(1) and (2) of The Netherlands Civil Code, the following fees for the financial year have been charged by Deloitte Accountants B.V. and other Deloitte member firms and affiliates to the Company, its subsidiaries and other consolidated entities.
\nEUR 1,000 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| \u00a0 | Deloitte Accountants B.V. | Other Deloitte member firms and affiliates | Total Deloitte | Deloitte Accountants B.V. | Other Deloitte member firms and affiliates | Total Deloitte |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Statutory audits of annual reports | 1,062 | 1,805 | 2,868 | 1,069 | 1,666 | 2,736 |
Other assurance services | 204 | 2 | 206 | 170 | - | 170 |
Tax advisory services | - | - | - | - | - | - |
Other non-audit services | - | - | - | - | - | - |
| \u00a0 | 1,267 | 1,807 | 3,074 | 1,239 | 1,666 | 2,906 |
The remuneration policies for the Management Board and Supervisory Board are summarized in the Remuneration Report (see page ).
\nThe Management Board and Supervisory board members\u2019 compensation, including pension obligations as intended in Section 2:383(1) of The Netherlands Civil Code, which were charged in the financial year to the Company and group companies is as follows:
\nEUR 1,000 | Year | Salary1 | Bonus2 | Share based payment3 | Pension4 | Other5 | Total6 |
|---|---|---|---|---|---|---|---|
P.C.J. van der Slikke | 2023 | 764 | 264 | 806 | 45 | 45 | 1,924 |
| \u00a0 | 2022 | 710 | 506 | 759 | 42 | 51 | 2,068 |
V. Diele-Braun7 | 2023 | 213 | 159 | 28 | 63 | 1,157 | 1,620 |
| \u00a0 | 2022 | - | - | - | - | - | - |
H.J.J. Kooijmans | 2023 | 610 | 211 | 476 | 64 | 51 | 1,412 |
| \u00a0 | 2022 | 553 | 394 | 591 | 40 | 50 | 1,628 |
M.C. Jordan8 | 2023 | 521 | 180 | 543 | 66 | 198 | 1,508 |
| \u00a0 | 2022 | 323 | 230 | 365 | 32 | 237 | 1,187 |
Total | 2023 | 2,108 | 814 | 1,853 | 238 | 1,451 | 6,464 |
| \u00a0 | 2022 | 1,586 | 1,130 | 1,715 | 114 | 338 | 4,883 |
As of 31 December 2023, the total number of shares conditionally granted to the Management Board is as follows:
P.C.J. van der Slikke: 14,875 (31 December 2022: 22,288)
V. Diele- Braun: 2,263 (31 December 2022: nil)
H.J.J. Kooijmans: 13,350 (31 December 2022: 17,363)
M.C. Jordan: 12,528 (31 December 2022: 15,160)
Further details of the Management Board compensation are provided in the Remuneration Report (see page ).
\nEUR 1,000 | 2023 | 2022 |
|---|---|---|
J. Smalbraak | 105 | 105 |
S.R. Nanninga | 75 | 75 |
A.E. Hebert | 72 | 65 |
W. Eelman | 70 | 47 |
D. Mikkelsen1 | 5 | - |
V. Diele-Braun | 14 | 70 |
A.J.Th. Kaaks | - | 23 |
Total | 341 | 385 |
In addition to the aforementioned compensation, the Management Board and Supervisory Board members receive reimbursements for out-of-pocket expenses. Since these benefits serve to cover actual costs incurred and are not considered to form part of the remuneration as such, they have not been included in the above totals.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-642": { "value": "\nAt the Annual General Meeting the following appropriation of the result for 2023 will be proposed: an amount of EUR 127,653 thousand to be paid out as dividend (EUR 2.24 per share) and EUR 164,571 thousand to be added to the retained earnings.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:724500NSJPNFJPDAUP02", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-643": { "value": "\nThe list of group companies is as follows (100% owned unless mentioned otherwise):
\nEntity | City | Country |
|---|---|---|
IMCD Finance B.V. | Rotterdam | The Netherlands |
IMCD Group B.V. | Rotterdam | The Netherlands |
IMCD Participations II B.V. | Rotterdam | The Netherlands |
Internatio Special Products B.V. | Rotterdam | The Netherlands |
IMCD Benelux B.V. | Rotterdam | The Netherlands |
IMCD Benelux N.V. | Mechelen | Belgium |
IMCD France Investments S.A.S. | Paris | France |
IMCD Holding France S.A.S.1 | Paris | France |
IMCD France S.A.S. | Paris | France |
IMCD Espa\u00f1a Especialidades Quimicas S.A. | Madrid | Spain |
IMCD Portugal Produtos Quimicos Lda | Lisbon | Portugal |
IMCD Maroc S.a.r.l. | Casablanca | Morocco |
IMCD Tunisia S.a.r.l. | Tunis | Tunisia |
S.a.r.l. IMCD Group Algerie (49% of the shares) | Algiers | Algeria |
IMCD Deutschland GmbH | Cologne | Germany |
Otto Aldag Handel GmbH | Cologne | Germany |
IMCD UK Acquisitions Ltd. | Sutton | United Kingdom |
IMCD Holding UK Ltd.2 | Sutton | United Kingdom |
IMCD UK Investments Ltd.2 | Sutton | United Kingdom |
IMCD UK Ltd. | Sutton | United Kingdom |
Evenlode Foods Ltd.2 | Milton Keynes | United Kingdom |
Orange Chemicals Ltd.3 | Sutton | United Kingdom |
O&3 Limited (90% of the shares)4 | Sutton | United Kingdom |
IMCD Ireland Ltd. | Dublin | Ireland |
IMCD Italia S.p.A. | Milan | Italy |
IMCD Norway AS | Ski | Norway |
IMCD Nordic AB | Malm\u00f6 | Sweden |
IMCD Sweden AB | Malm\u00f6 | Sweden |
ACM (Applied Chemicals and Minerals) AB5 | Malm\u00f6 | Sweden |
IMCD Finland Oy | Helsingfors | Finland |
IMCD Danmark AS | Helsing\u00f8r | Denmark |
IMCD Baltics UAB | Vilnius | Lithuania |
IMCD South East Europe GmbH | Vienna | Austria |
IMCD Czech Republic s.r.o. | Prague | Czech Republic |
IMCD Romania srl | Bucarest | Romania |
IMCD d.o.o.6 | Zagreb | Croatia |
IMCD Hungary Kft | Buda\u00f6rs | Hungary |
IMCD Bulgaria EOOD7 | Sofia | Bulgaria |
IMCD Switzerland AG | Z\u00fcrich | Switzerland |
IMCD Polska Sp.z.o.o. | Warsaw | Poland |
O&3 Polska Sp. Z.o.o (90% of the shares)4 | Warka | Poland |
IMCD Rus LLC | Saint-Petersburg | Russia |
IMCD Ukraine LLC | Kiev | Ukraine |
IMCD Ticaret, Pazarlama ve Dani\u015fmanlik Limited \u015eirketi | Istanbul | Turkey |
IMCD Israel Speciality Chemicals and Ingredients Ltd8 | Rishon LeZion | Israel |
KOI Products Solutions & Engineering Ltd9 | Maalot Tarshiha | Israel |
Internatio Special Products Egypt LLC | Cairo | Egypt |
IMCD Egypt LLC | Cairo | Egypt |
IMCD Middle East FZCO | Dubai | United Arab Emirates |
IMCD Middle East Trading LLC | Dubai | United Arab Emirates |
IMCD FZ-LLC10 | Dubai | United Arab Emirates |
IMCD Arabia Trading LLC (75% of the shares) | Riyadh | Saudi Arabia |
IMCD South Africa Pty. Ltd. | Isando | South Africa |
Chemimpo South Africa Pty. Ltd. | Randburg | South Africa |
CPS Chemical Oil-Tech Pty. Ltd.4 | Durban | South Africa |
IMCD Kenya Ltd. | Nairobi | Kenya |
IMCD Uganda SMC Ltd. | Kampala | Uganda |
IMCD Holdings US, Inc. | Jersey City | United States of America |
IMCD US LLC | Cleveland | United States of America |
MJS Sales Inc.11 | Cleveland | United States of America |
IMCD US Food Inc. | Washington | United States of America |
Andes Chemical LLC | Miami | United States of America |
Promaplast USA Inc. | Houston | United States of America |
O&3 Inc. (90% of the shares)4 | Delaware | United States of America |
IMCD Puerto Rico Inc. | Cayey | Puerto Rico |
Sachs Chemical, Inc.12 | Caguas | Puerto Rico |
IMCD Canada Limited | Brampton | Canada |
IMCD Mexico S.A. de C.V. | Miguel Hidalgo | Mexico |
International Chemical Product Services Mexico S. de RL de CV | Miguel Hidalgo | Mexico |
Materias Qu\u00edmicas de M\u00e9xico S.A. de C.V. | Mexico City | Mexico |
Pluralmex S.A de C.V. | Mexico City | Mexico |
Proveedora de Materiales Pl\u00e1sticos S.A. de C.V. | Lerma | Mexico |
Promaplast Resinas S.A. de C.V. | Lerma | Mexico |
IMCD Dominicana SRL13 | Santo Domingo | Dominican Republic |
Quelaris Dominicana SRL | Santo Domingo | Dominican Republic |
IMCD Costa Rica SRL14 | San Jos\u00e9 | Costa Rica |
IMCD Costa Rica SA15 | Cartago | Costa Rica |
SCI Chemical Logistics SA16 | Alajuela | Costa Rica |
IMCD Brasil Com\u00e9rcio e Ind\u00fastria de Produtos Quimicos Ltda. | S\u00e3o Paulo | Brazil |
IMCD Brasil Farmac\u00eauticos Importa\u00e7\u00e3o, Exporta\u00e7\u00e3o e Representa\u00e7\u00f5es Ltda | S\u00e3o Paulo | Brazil |
Vitaqualy Comercio de Ingredientes LTDA | S\u00e3o Paulo | Brazil |
Polyorganic Tecnologia Ltda | S\u00e3o Paulo | Brazil |
IMCD Chile SpA | Santiago | Chile |
Quelaris Chile SPA | Santiago | Chile |
Representaciones de Materias Primas Industriales SpA12 | Santiago | Chile |
IMCD Argentina SRL | Buenos Aires | Argentina |
IMCD Uruguay SA | Montevideo | Uruguay |
IMCD Ecuador SAS | Quito | Ecuador |
IMCD Colombia SAS | Bogota | Colombia |
Siliconas y Qu\u00edmicos SAS17 | Bogota | Colombia |
Quelaris Colombia SAS18 | Bogota | Colombia |
Allianz Group International S.A.S.19 | Bogota | Colombia |
IMCD Per\u00fa SRL20 | Lima | Peru |
Quelaris Peru SAC | Lima | Peru |
IMCD Guatemala SRL | Guatemala City | Guatemala |
IMCD Australasia Investments Pty. Ltd | Melbourne | Australia |
IMCD Australia Pty Ltd. | Melbourne | Australia |
RPL Trading Pty Ltd | Melbourne | Australia |
IMCD New Zealand Ltd. | Auckland | New Zealand |
RPL Trading NZ Ltd. | Auckland | New Zealand |
IMCD Asia Pacific Sdn Bhd | Shah Alam | Malaysia |
IMCD Malaysia Sdn Bhd | Shah Alam | Malaysia |
IMCD Asia Pte. Ltd. | Singapore | Singapore |
IMCD Singapore Pte. Ltd. | Singapore | Singapore |
Brylchem Pte. Ltd.21 | Singapore | Singapore |
IMCD (Thailand) Co., Ltd. | Bangkok | Thailand |
IMCD (China) Co. Ltd. | Shanghai | China |
IMCD International Trading (Shanghai) Co. Ltd. | Shanghai | China |
IMCD Plastics (Shanghai) Co. Ltd. | Shanghai | China |
IMCD Speciality Chemicals (Shanghai) Co.,Ltd.22 | Shanghai | China |
Aquatech Speciality (Shanghai) International Trading Co. Ltd | Shanghai | China |
Guangzhou Aquatech Speciality Trading Co. Ltd | Guangzhou | China |
Shanghai Syntec Additive Limited | Shanghai | China |
Shanghai Weike Additive Limited | Shanghai | China |
Shanghai Sanrise Industries and development Co.,Ltd. (70% of the shares)23 | Shanghai | China |
Yuanhe HK Ltd. | Hong Kong | Hong Kong |
IMCD International Trading (Hong Kong) Ltd.24 | Kowloon | Hong Kong |
IMCD Korea Co., Ltd.25 | Seoul | South Korea |
Needfill Co., Ltd.26 | Seoul | South Korea |
IMCD Japan Godokaisha | Tokyo | Japan |
Kuni Chemical Co. Ltd. | Osaka | Japan |
IMCD Vietnam Company Ltd | Ho Chi Minh City | Vietnam |
IMCD Philippines Corporation | Manila | Philippines |
PT IMCD Indonesia | Jakarta | Indonesia |
PT Sapta Permata | Surabaya | Indonesia |
PT Megasetia Agung Kimia (70% of the shares) | Jakarta | Indonesia |
IMCD India Pvt. Ltd. | Mumbai | India |
Signet Excipients Pvt. Ltd | Mumbai | India |
Parkash Dyechem Pvt. Ltd | Delhi | India |
Tradeimpex Polymers (India) Pvt Ltd27 | Gurgaon | India |
IMCD Bangladesh Pvt. Ltd. | Dhaka | Bangladesh |