{
"documentInfo": {
"documentType": "https://xbrl.org/2021/xbrl-json",
"features": {
"xbrl:canonicalValues": true
},
"namespaces": {
"aris": "https://www.aristongroup.com/20221231",
"ifrs-full": "http://xbrl.ifrs.org/taxonomy/2021-03-24/ifrs-full",
"iso4217": "http://www.xbrl.org/2003/iso4217",
"scheme": "http://standards.iso.org/iso/17442",
"xbrl": "https://xbrl.org/2021",
"xbrli": "http://www.xbrl.org/2003/instance"
},
"taxonomy": [
"http://www.aristongroup.com/815600CC86D25A205563-2022-12-31.xsd"
]
},
"facts": {
"Fxbrl_20230225013156121_xbrl_20230216164229414_xbrl_20230202102752801_xbrl_20230121114930856": {
"value": "2378800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RevenueFromContractsWithCustomers",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156121_xbrl_20230216164229414_xbrl_20230202102752801_xbrl_20230121114942385": {
"value": "1987300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RevenueFromContractsWithCustomers",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156121_xbrl_20230216164229414_xbrl_20230202102752800_xbrl_20230121115117574": {
"value": "42700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156121_xbrl_20230216164229414_xbrl_20230202102752800_xbrl_20230121115140199": {
"value": "34100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156119_xbrl_20230216164229413_xbrl_20230202102752800_xbrl_20230121115154291": {
"value": "2421500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RevenueAndOperatingIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156119_xbrl_20230216164229413_xbrl_20230202102752800_xbrl_20230121115206936": {
"value": "2021500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RevenueAndOperatingIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156119_xbrl_20230216164229413_xbrl_20230202102752799_xbrl_20230121115221958": {
"value": "-93700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ChangesInInventoriesOfFinishedGoodsAndWorkInProgress",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156119_xbrl_20230216164229413_xbrl_20230202102752799_xbrl_20230121115252748": {
"value": "-107500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ChangesInInventoriesOfFinishedGoodsAndWorkInProgress",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156118_xbrl_20230216164229412_xbrl_20230202102752799_xbrl_20230121115331606": {
"value": "1243300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RawMaterialsAndConsumablesUsed",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156118_xbrl_20230216164229412_xbrl_20230202102752799_xbrl_20230121115348572": {
"value": "988000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RawMaterialsAndConsumablesUsed",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156118_xbrl_20230216164229412_xbrl_20230202102752798_xbrl_20230121115407365": {
"value": "481300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ServicesExpense",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156118_xbrl_20230216164229412_xbrl_20230202102752798_xbrl_20230121115426862": {
"value": "433100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ServicesExpense",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156118_xbrl_20230216164229412_xbrl_20230202102752798_xbrl_20230121115436722": {
"value": "459000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:EmployeeBenefitsExpense",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156118_xbrl_20230216164229412_xbrl_20230202102752798_xbrl_20230121115507519": {
"value": "412300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:EmployeeBenefitsExpense",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156117_xbrl_20230216164229411_xbrl_20230202102752798_xbrl_20230121115527546": {
"value": "89800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DepreciationAndAmortisationExpense",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156117_xbrl_20230216164229411_xbrl_20230202102752798_xbrl_20230121115549135": {
"value": "75800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DepreciationAndAmortisationExpense",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156117_xbrl_20230216164229411_xbrl_20230202102752797_xbrl_20230121115729373": {
"value": "14000000",
"decimals": -5,
"dimensions": {
"concept": "aris:Provision",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156117_xbrl_20230216164229411_xbrl_20230202102752797_xbrl_20230121115751519": {
"value": "19700000",
"decimals": -5,
"dimensions": {
"concept": "aris:Provision",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156117_xbrl_20230216164229410_xbrl_20230202102752797_xbrl_20230121115800768": {
"value": "3800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ImpairmentLossRecognisedInProfitOrLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156117_xbrl_20230216164229410_xbrl_20230202102752797_xbrl_20230121115817248": {
"value": "1700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ImpairmentLossRecognisedInProfitOrLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156116_xbrl_20230216164229409_xbrl_20230202102752796_xbrl_20230121115853680": {
"value": "30400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherExpenseByNature",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156116_xbrl_20230216164229409_xbrl_20230202102752796_xbrl_20230121115920280": {
"value": "27300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherExpenseByNature",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156116_xbrl_20230216164229409_xbrl_20230202102752796_xbrl_20230121115922925": {
"value": "2227800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OperatingExpense",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156116_xbrl_20230216164229409_xbrl_20230202102752796_xbrl_20230121115938313": {
"value": "1850300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OperatingExpense",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156115_xbrl_20230216164229408_xbrl_20230202102752795_xbrl_20230121115944552": {
"value": "193700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromOperatingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156115_xbrl_20230216164229408_xbrl_20230202102752795_xbrl_20230121120002691": {
"value": "171200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromOperatingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156114_xbrl_20230216164229408_xbrl_20230202102752794_xbrl_20230121120012388": {
"value": "6000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156114_xbrl_20230216164229408_xbrl_20230202102752794_xbrl_20230121120033112": {
"value": "4500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156113_xbrl_20230216164229408_xbrl_20230202102752793_xbrl_20230121120037851": {
"value": "15700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceCosts",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156113_xbrl_20230216164229408_xbrl_20230202102752793_xbrl_20230121120108555": {
"value": "12400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceCosts",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156113_xbrl_20230216164229407_xbrl_20230202102752793_xbrl_20230121120126112": {
"value": "-8900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationRecognisedInProfitOrLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156113_xbrl_20230216164229407_xbrl_20230202102752793_xbrl_20230121120156321": {
"value": "4100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationRecognisedInProfitOrLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156112_xbrl_20230216164229407_xbrl_20230202102752792_xbrl_20230121120208253": {
"value": "-18600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceIncomeCost",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156112_xbrl_20230216164229407_xbrl_20230202102752792_xbrl_20230121120221823": {
"value": "-3900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:FinanceIncomeCost",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156111_xbrl_20230216164229406_xbrl_20230202102752792_xbrl_20230121120239289": {
"value": "4700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnFinancialLiabilitiesAtFairValueThroughProfitOrLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156111_xbrl_20230216164229406_xbrl_20230202102752792_xbrl_20230121121128549": {
"value": "-1900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:GainsLossesOnFinancialLiabilitiesAtFairValueThroughProfitOrLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156111_xbrl_20230216164229405_xbrl_20230202102752792_xbrl_20230121121134149": {
"value": "179800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156111_xbrl_20230216164229405_xbrl_20230202102752792_xbrl_20230121121251788": {
"value": "165400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156111_xbrl_20230216164252267": {
"value": "39500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncomeTaxExpenseContinuingOperations",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156111_xbrl_20230216164302952": {
"value": "29100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncomeTaxExpenseContinuingOperations",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156110_xbrl_20230216164229404_xbrl_20230202102752790_xbrl_20230121121324489": {
"value": "140300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromContinuingOperations",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156110_xbrl_20230216164229404_xbrl_20230202102752790_xbrl_20230121121337386": {
"value": "136300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromContinuingOperations",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156110_xbrl_20230216164229404_xbrl_20230202102752790_xbrl_20230121121339638": {
"value": "140300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156110_xbrl_20230216164229404_xbrl_20230202102752790_xbrl_20230121121404016": {
"value": "136300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156110_xbrl_20230216164229403_xbrl_20230202102752789_xbrl_20230121122349003": {
"value": "100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156110_xbrl_20230216164229403_xbrl_20230202110039507": {
"value": "-200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156109_xbrl_20230216164229403_xbrl_20230202102752787_xbrl_20230121122416914": {
"value": "140300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156109_xbrl_20230216164229403_xbrl_20230202102752787_xbrl_20230121122433959": {
"value": "136500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013156109_xbrl_20230216164336746": {
"value": "0.43",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShare",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"Fxbrl_20230225013441093": {
"value": "0.47",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShare",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"Fxbrl_20230225013156108_xbrl_20230216164347841": {
"value": "0.42",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShare",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"Fxbrl_20230225013446672": {
"value": "0.46",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShare",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"Fxbrl_20230225014033345": {
"value": "140300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225014039554": {
"value": "136300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938511_xbrl_20230216131126986_xbrl_20230202103708088_xbrl_20230121123225486": {
"value": "7900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938511_xbrl_20230216131126986_xbrl_20230202103708088_xbrl_20230121123341904": {
"value": "4000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938510_xbrl_20230216131126984_xbrl_20230202103734121": {
"value": "7900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLossNetOfTax",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938510_xbrl_20230216131126984_xbrl_20230202103737959": {
"value": "4000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLossNetOfTax",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938509_xbrl_20230216131126984_xbrl_20230202103810010": {
"value": "11600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxExchangeDifferencesOnTranslation",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938509_xbrl_20230216131126984_xbrl_20230202103813449": {
"value": "21300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxExchangeDifferencesOnTranslation",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938509_xbrl_20230216131126983_xbrl_20230202103817243": {
"value": "23700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxCashFlowHedges",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938509_xbrl_20230216131126983_xbrl_20230202103820603": {
"value": "200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxCashFlowHedges",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938508_xbrl_20230216131126983_xbrl_20230202103824444": {
"value": "35200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938508_xbrl_20230216131126983_xbrl_20230202103828511": {
"value": "21600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938508_xbrl_20230216131126982_xbrl_20230202103708086_xbrl_20230121123518881": {
"value": "43200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938508_xbrl_20230216131126982_xbrl_20230202103708086_xbrl_20230121123534210": {
"value": "25500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938508_xbrl_20230216131126982_xbrl_20230202103708085_xbrl_20230121123539152": {
"value": "183500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938508_xbrl_20230216131126982_xbrl_20230202103708085_xbrl_20230121123550494": {
"value": "161800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938507_xbrl_20230216131126981_xbrl_20230202103708085_xbrl_20230121123611643": {
"value": "183400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938507_xbrl_20230216131126981_xbrl_20230202103708085_xbrl_20230121123627798": {
"value": "162000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938507_xbrl_20230216131126980_xbrl_20230202103708084_xbrl_20230121123733805": {
"value": "100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225013938507_xbrl_20230216131126980_xbrl_20230202103708084_xbrl_20230121123847320": {
"value": "-200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804227_xbrl_20230216144806774_xbrl_20230202112127215_xbrl_20230121124606455": {
"value": "312700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Goodwill",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804227_xbrl_20230216144806774_xbrl_20230202112127215_xbrl_20230121124616796": {
"value": "294800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Goodwill",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804226_xbrl_20230216144806774_xbrl_20230202112127215_xbrl_20230121124629125": {
"value": "129900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherIntangibleAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804226_xbrl_20230216144806774_xbrl_20230202112127215_xbrl_20230121124648883": {
"value": "113000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherIntangibleAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804225_xbrl_20230216144806773_xbrl_20230202112127214_xbrl_20230121124652166": {
"value": "442600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IntangibleAssetsAndGoodwill",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804225_xbrl_20230216144806773_xbrl_20230202112127214_xbrl_20230121124706910": {
"value": "407800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IntangibleAssetsAndGoodwill",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804225_xbrl_20230216144806773_xbrl_20230202112127213_xbrl_20230121124743343": {
"value": "125900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:LandAndBuildings",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804225_xbrl_20230216144806773_xbrl_20230202112127213_xbrl_20230121124801469": {
"value": "121400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:LandAndBuildings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804224_xbrl_20230216144806772_xbrl_20230202112127212_xbrl_20230121124810602": {
"value": "47400000",
"decimals": -5,
"dimensions": {
"concept": "aris:RightOfUseLandAndBuildings",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804224_xbrl_20230216144806772_xbrl_20230202112127212_xbrl_20230121124832395": {
"value": "40500000",
"decimals": -5,
"dimensions": {
"concept": "aris:RightOfUseLandAndBuildings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804223_xbrl_20230216144806770_xbrl_20230202112127212_xbrl_20230121124841108": {
"value": "173300000",
"decimals": -5,
"dimensions": {
"concept": "aris:LandAndBuildingsAndRightOfUseAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804223_xbrl_20230216144806770_xbrl_20230202112127212_xbrl_20230121124857803": {
"value": "161900000",
"decimals": -5,
"dimensions": {
"concept": "aris:LandAndBuildingsAndRightOfUseAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804223_xbrl_20230216144806769_xbrl_20230202112127211_xbrl_20230121124919910": {
"value": "109200000",
"decimals": -5,
"dimensions": {
"concept": "aris:PlantAndMachineryExcludingRou",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804223_xbrl_20230216144806769_xbrl_20230202112127211_xbrl_20230121124933321": {
"value": "103200000",
"decimals": -5,
"dimensions": {
"concept": "aris:PlantAndMachineryExcludingRou",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804222_xbrl_20230216144806768_xbrl_20230202112127211_xbrl_20230121124940671": {
"value": "1600000",
"decimals": -5,
"dimensions": {
"concept": "aris:RightOfUsePlantAndMachinery",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804222_xbrl_20230216144806768_xbrl_20230202112127211_xbrl_20230121125016686": {
"value": "1300000",
"decimals": -5,
"dimensions": {
"concept": "aris:RightOfUsePlantAndMachinery",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804222_xbrl_20230216144806768_xbrl_20230202112127210_xbrl_20230121125026958": {
"value": "110800000",
"decimals": -5,
"dimensions": {
"concept": "aris:PlantAndMachineryAndRightOfUse",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804222_xbrl_20230216144806768_xbrl_20230202112127210_xbrl_20230121125050983": {
"value": "104500000",
"decimals": -5,
"dimensions": {
"concept": "aris:PlantAndMachineryAndRightOfUse",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804221_xbrl_20230216144806767_xbrl_20230202112127209_xbrl_20230121125100426": {
"value": "99300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherPropertyPlantAndEquipment",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804221_xbrl_20230216144806767_xbrl_20230202112127209_xbrl_20230121125132087": {
"value": "87800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherPropertyPlantAndEquipment",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034536171": {
"value": "21800000",
"decimals": -5,
"dimensions": {
"concept": "aris:RightOfUseOtherPropertyPlantAndEquipment",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034541803": {
"value": "18200000",
"decimals": -5,
"dimensions": {
"concept": "aris:RightOfUseOtherPropertyPlantAndEquipment",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034524922": {
"value": "121100000",
"decimals": -5,
"dimensions": {
"concept": "aris:OtherPropertyPlantAndEquipmentAndRightOfUse",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034530489": {
"value": "106000000",
"decimals": -5,
"dimensions": {
"concept": "aris:OtherPropertyPlantAndEquipmentAndRightOfUse",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804218_xbrl_20230216144806766_xbrl_20230202112127207_xbrl_20230121125301239": {
"value": "405100000",
"decimals": -5,
"dimensions": {
"concept": "aris:TotalPropertyPlantAndEquipmentIncludingRightOfUseAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804218_xbrl_20230216144806766_xbrl_20230202112127207_xbrl_20230121125316122": {
"value": "372400000",
"decimals": -5,
"dimensions": {
"concept": "aris:TotalPropertyPlantAndEquipmentIncludingRightOfUseAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034612812": {
"value": "2400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:InvestmentsInJointVenturesAccountedForUsingEquityMethod",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034618747": {
"value": "2400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:InvestmentsInJointVenturesAccountedForUsingEquityMethod",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804216_xbrl_20230216144806765_xbrl_20230202112127206_xbrl_20230121125417405": {
"value": "101200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DeferredTaxAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804216_xbrl_20230216154536191": {
"value": "102400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DeferredTaxAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804216_xbrl_20230216144806765_xbrl_20230202112127205_xbrl_20230121125451869": {
"value": "6100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentFinancialAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804216_xbrl_20230216154545336": {
"value": "5200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentFinancialAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804215_xbrl_20230216144806764_xbrl_20230202112127202_xbrl_20230121125607186": {
"value": "7000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804215_xbrl_20230216154559645": {
"value": "6400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804214_xbrl_20230216144806763_xbrl_20230202112127201_xbrl_20230121125633551": {
"value": "2100000",
"decimals": -5,
"dimensions": {
"concept": "aris:NonCurrentTaxReceivables",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804214_xbrl_20230216154609204": {
"value": "1200000",
"decimals": -5,
"dimensions": {
"concept": "aris:NonCurrentTaxReceivables",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804213_xbrl_20230216144806762_xbrl_20230202112127201_xbrl_20230121125704026": {
"value": "966400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804213_xbrl_20230216144806762_xbrl_20230202112127201_xbrl_20230121125738952": {
"value": "897800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804212_xbrl_20230216144806761_xbrl_20230202112127201_xbrl_20230121125919137": {
"value": "476800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Inventories",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804212_xbrl_20230216144806761_xbrl_20230202112127201_xbrl_20230121130016177": {
"value": "382000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Inventories",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804211_xbrl_20230216144806761_xbrl_20230202112127201_xbrl_20230121130025881": {
"value": "308400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentTradeReceivables",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804211_xbrl_20230216144806761_xbrl_20230202112127201_xbrl_20230121130055120": {
"value": "248300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentTradeReceivables",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804211_xbrl_20230216144806761_xbrl_20230202112127200_xbrl_20230121130104641": {
"value": "28400000",
"decimals": -5,
"dimensions": {
"concept": "aris:TaxReceivables",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804211_xbrl_20230216150326338": {
"value": "29800000",
"decimals": -5,
"dimensions": {
"concept": "aris:TaxReceivables",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804210_xbrl_20230216144806760_xbrl_20230202112127200_xbrl_20230121130138649": {
"value": "47100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentFinancialAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804210_xbrl_20230216150317066": {
"value": "10800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentFinancialAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804210_xbrl_20230216144806760_xbrl_20230202112127200_xbrl_20230121130215173": {
"value": "50800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804210_xbrl_20230216144806760_xbrl_20230202112127200_xbrl_20230121130234329": {
"value": "56400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804209_xbrl_20230216144806759_xbrl_20230202112127200_xbrl_20230121130258628": {
"value": "999300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalents",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804209_xbrl_20230216144806759_xbrl_20230202112127200_xbrl_20230121130315906": {
"value": "689700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalents",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804209_xbrl_20230216144806759_xbrl_20230202112127199_xbrl_20230121130321235": {
"value": "1910800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentAssetsOtherThanAssetsOrDisposalGroupsClassifiedAsHeldForSaleOrAsHeldForDistributionToOwners",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804209_xbrl_20230216144806759_xbrl_20230202112127199_xbrl_20230121130335313": {
"value": "1417000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentAssetsOtherThanAssetsOrDisposalGroupsClassifiedAsHeldForSaleOrAsHeldForDistributionToOwners",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034657178": {
"value": "1300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034702178": {
"value": "2300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804208_xbrl_20230216144806758_xbrl_20230202112127199_xbrl_20230121130404097": {
"value": "2878500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Assets",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804208_xbrl_20230216144806758_xbrl_20230202112127199_xbrl_20230121130418635": {
"value": "2317000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Assets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804246_xbrl_20230216144806790_xbrl_20230202121940143": {
"value": "46100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IssuedCapital",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804246_xbrl_20230216144806790_xbrl_20230202121945750": {
"value": "46000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IssuedCapital",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804245_xbrl_20230216144806789_xbrl_20230202121952298": {
"value": "313300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:SharePremium",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804245_xbrl_20230216144806789_xbrl_20230202122211866": {
"value": "293700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:SharePremium",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804245_xbrl_20230216144806788_xbrl_20230202122217290": {
"value": "510300000",
"decimals": -5,
"dimensions": {
"concept": "aris:RetainedEarningsAndOtherReserve",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804245_xbrl_20230216144806788_xbrl_20230202122222753": {
"value": "402000000",
"decimals": -5,
"dimensions": {
"concept": "aris:RetainedEarningsAndOtherReserve",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804244_xbrl_20230216144806787_xbrl_20230202122229634": {
"value": "140300000",
"decimals": -5,
"dimensions": {
"concept": "aris:NetProfitAttributableToTheGroup",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804244_xbrl_20230216144806787_xbrl_20230202122236023": {
"value": "136500000",
"decimals": -5,
"dimensions": {
"concept": "aris:NetProfitAttributableToTheGroup",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804243_xbrl_20230216144806786_xbrl_20230202122241689": {
"value": "1010000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:EquityAttributableToOwnersOfParent",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804243_xbrl_20230216144806786_xbrl_20230202122247161": {
"value": "878300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:EquityAttributableToOwnersOfParent",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034730547": {
"value": "2100000",
"decimals": -5,
"dimensions": {
"concept": "aris:NoncontrollingInterestsAndReserves",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034735033": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "aris:NoncontrollingInterestsAndReserves",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804241_xbrl_20230216145055155": {
"value": "100000",
"decimals": -5,
"dimensions": {
"concept": "aris:NetProfitAttributableToNoncontrollingInterests",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804241_xbrl_20230216145132067": {
"value": "-200000",
"decimals": -5,
"dimensions": {
"concept": "aris:NetProfitAttributableToNoncontrollingInterests",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804240_xbrl_20230216145101987": {
"value": "2200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncontrollingInterests",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804240_xbrl_20230216145138434": {
"value": "-200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncontrollingInterests",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804239_xbrl_20230216144806784_xbrl_20230202122344494": {
"value": "1012200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804239_xbrl_20230216144806784_xbrl_20230202122350682": {
"value": "878100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804236_xbrl_20230216144806783_xbrl_20230202122403350": {
"value": "61800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DeferredTaxLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804236_xbrl_20230216145919815": {
"value": "50800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DeferredTaxLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034807866": {
"value": "59600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherLongtermProvisions",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034813676": {
"value": "56900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherLongtermProvisions",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034820730": {
"value": "38600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentProvisionsForEmployeeBenefits",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225034827659": {
"value": "51700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentProvisionsForEmployeeBenefits",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225035241043": {
"value": "865200000",
"decimals": -5,
"dimensions": {
"concept": "aris:NonCurrentFinancing",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225035248931": {
"value": "446400000",
"decimals": -5,
"dimensions": {
"concept": "aris:NonCurrentFinancing",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225035300845": {
"value": "12000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225035306330": {
"value": "14000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225035316611": {
"value": "1800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentTaxLiabilitiesNoncurrent",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225035323250": {
"value": "7800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentTaxLiabilitiesNoncurrent",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225035401477": {
"value": "1038900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225035523867": {
"value": "627500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:NoncurrentLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804231_xbrl_20230216144806777_xbrl_20230202122605070": {
"value": "481400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentPayables",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804231_xbrl_20230216144806777_xbrl_20230202122610646": {
"value": "477200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentPayables",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804231_xbrl_20230216144806777_xbrl_20230202122622247": {
"value": "53000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentTaxLiabilitiesCurrent",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804231_xbrl_20230216155312228": {
"value": "45100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentTaxLiabilitiesCurrent",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804230_xbrl_20230216144806777_xbrl_20230202122628959": {
"value": "36200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherShorttermProvisions",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804230_xbrl_20230216144806777_xbrl_20230202122634126": {
"value": "33500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherShorttermProvisions",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804230_xbrl_20230216144806776_xbrl_20230202122639703": {
"value": "49700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentFinancialLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804230_xbrl_20230216144806776_xbrl_20230202122645023": {
"value": "46100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentFinancialLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804230_xbrl_20230216144806776_xbrl_20230202122651855": {
"value": "32700000",
"decimals": -5,
"dimensions": {
"concept": "aris:CurrentLoans",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804230_xbrl_20230216144806776_xbrl_20230202122658861": {
"value": "23100000",
"decimals": -5,
"dimensions": {
"concept": "aris:CurrentLoans",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804229_xbrl_20230216144806776_xbrl_20230202122709703": {
"value": "174500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804229_xbrl_20230216144806776_xbrl_20230202122714878": {
"value": "186300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherCurrentLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804229_xbrl_20230216144806776_xbrl_20230202122720494": {
"value": "827400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentLiabilitiesOtherThanLiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804229_xbrl_20230216144806776_xbrl_20230202122725558": {
"value": "811300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CurrentLiabilitiesOtherThanLiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804229_xbrl_20230216144806775_xbrl_20230202122737343": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804229_xbrl_20230216145855533": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804228_xbrl_20230216144806775_xbrl_20230202122742071": {
"value": "2878500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:EquityAndLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033804228_xbrl_20230216144806775_xbrl_20230202122747030": {
"value": "2317000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:EquityAndLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554982_xbrl_20230216134806034_xbrl_20230202124636050_xbrl_20230121153550944": {
"value": "140300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554982_xbrl_20230216134806034_xbrl_20230202124636050_xbrl_20230121153602504": {
"value": "136300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554982_xbrl_20230216134806033_xbrl_20230202124636050_xbrl_20230121153614613": {
"value": "39500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncomeTaxExpense",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554982_xbrl_20230216134806033_xbrl_20230202124636050_xbrl_20230121153629337": {
"value": "29100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncomeTaxExpense",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554982_xbrl_20230216134806031_xbrl_20230202124636049_xbrl_20230121153736158": {
"value": "13900000",
"decimals": -5,
"dimensions": {
"concept": "aris:IncomeAndExpenseFromFinancingAndInvestmentActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554982_xbrl_20230216134806031_xbrl_20230202124636049_xbrl_20230121154122659": {
"value": "5800000",
"decimals": -5,
"dimensions": {
"concept": "aris:IncomeAndExpenseFromFinancingAndInvestmentActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554981_xbrl_20230216134806031_xbrl_20230202124636049_xbrl_20230121154206345": {
"value": "64400000",
"decimals": -5,
"dimensions": {
"concept": "aris:AdjustmentsForAmortisationExcludingRightOfUseAsset",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554981_xbrl_20230216134806031_xbrl_20230202124636049_xbrl_20230121154242300": {
"value": "54500000",
"decimals": -5,
"dimensions": {
"concept": "aris:AdjustmentsForAmortisationExcludingRightOfUseAsset",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554981_xbrl_20230216134806031_xbrl_20230202124636049_xbrl_20230121154324732": {
"value": "25400000",
"decimals": -5,
"dimensions": {
"concept": "aris:AdjustmentForAmortisationOfRightOfUseAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554981_xbrl_20230216134806031_xbrl_20230202124636049_xbrl_20230121154359421": {
"value": "21300000",
"decimals": -5,
"dimensions": {
"concept": "aris:AdjustmentForAmortisationOfRightOfUseAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554981_xbrl_20230216134806030_xbrl_20230202124636048_xbrl_20230121155104681": {
"value": "14000000",
"decimals": -5,
"dimensions": {
"concept": "aris:CashFlowsProvisions",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554981_xbrl_20230216134806030_xbrl_20230202124636048_xbrl_20230121155128061": {
"value": "19700000",
"decimals": -5,
"dimensions": {
"concept": "aris:CashFlowsProvisions",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806029_xbrl_20230202124636048_xbrl_20230121155153437": {
"value": "3800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806029_xbrl_20230202124636048_xbrl_20230121155229160": {
"value": "1700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806028_xbrl_20230202124636047_xbrl_20230121155242338": {
"value": "301200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperations",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806028_xbrl_20230202124636047_xbrl_20230121155301922": {
"value": "268300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperations",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806028_xbrl_20230202124636046_xbrl_20230121155310141": {
"value": "-21200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAccountReceivable",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806028_xbrl_20230202124636046_xbrl_20230121155333844": {
"value": "-17500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAccountReceivable",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806027_xbrl_20230202124636045_xbrl_20230121155345253": {
"value": "-67600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806027_xbrl_20230202124636045_xbrl_20230121155411015": {
"value": "-108100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806026_xbrl_20230202124636044_xbrl_20230121155437465": {
"value": "-27000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAndOtherPayables",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806026_xbrl_20230202124636044_xbrl_20230121155451631": {
"value": "112300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAndOtherPayables",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806026_xbrl_20230202124636044_xbrl_20230121155510165": {
"value": "-3400000",
"decimals": -5,
"dimensions": {
"concept": "aris:ChangeInOtherShortTermAssetsLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554980_xbrl_20230216134806026_xbrl_20230202124636044_xbrl_20230121155533852": {
"value": "-11500000",
"decimals": -5,
"dimensions": {
"concept": "aris:ChangeInOtherShortTermAssetsLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554979_xbrl_20230216134806026_xbrl_20230202124636043_xbrl_20230121155546063": {
"value": "-15600000",
"decimals": -5,
"dimensions": {
"concept": "aris:ChangeInProvisions",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554979_xbrl_20230216134806026_xbrl_20230202124636043_xbrl_20230121155608169": {
"value": "-13500000",
"decimals": -5,
"dimensions": {
"concept": "aris:ChangeInProvisions",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554979_xbrl_20230216134806025_xbrl_20230202124636043_xbrl_20230121155621833": {
"value": "35400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncomeTaxesPaidClassifiedAsOperatingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554979_xbrl_20230216134806025_xbrl_20230202124636043_xbrl_20230121155649109": {
"value": "39500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncomeTaxesPaidClassifiedAsOperatingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554979_xbrl_20230216134806025_xbrl_20230202124636043_xbrl_20230121160151165": {
"value": "130900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554979_xbrl_20230216134806025_xbrl_20230202124636043_xbrl_20230121160205640": {
"value": "190700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554979_xbrl_20230216134806024_xbrl_20230202124636042_xbrl_20230121160240299": {
"value": "21000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554979_xbrl_20230216134806024_xbrl_20230202124636042_xbrl_20230121160310203": {
"value": "19100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554979_xbrl_20230216134806024_xbrl_20230202124636042_xbrl_20230121160327490": {
"value": "57600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015554979_xbrl_20230216134806024_xbrl_20230202124636042_xbrl_20230121160350197": {
"value": "59000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225043908702": {
"value": "23900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225043923633": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015839799": {
"value": "30300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PurchaseOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015846742": {
"value": "8100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PurchaseOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethod",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015855829": {
"value": "-1900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherInflowsOutflowsOfCashClassifiedAsInvestingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015907572": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherInflowsOutflowsOfCashClassifiedAsInvestingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015919597": {
"value": "900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225015928166": {
"value": "1400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225020116764": {
"value": "-133800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225020121662": {
"value": "-84700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225043953136": {
"value": "7400000",
"decimals": -5,
"dimensions": {
"concept": "aris:FinancialExpensePaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225044003725": {
"value": "4400000",
"decimals": -5,
"dimensions": {
"concept": "aris:FinancialExpensePaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225044036750": {
"value": "5000000",
"decimals": -5,
"dimensions": {
"concept": "aris:FinancialIncomeCollected",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225044045568": {
"value": "4100000",
"decimals": -5,
"dimensions": {
"concept": "aris:FinancialIncomeCollected",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225020505437": {
"value": "1900000",
"decimals": -5,
"dimensions": {
"concept": "aris:FinancialExpenseOnLeaseLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225020516039": {
"value": "1400000",
"decimals": -5,
"dimensions": {
"concept": "aris:FinancialExpenseOnLeaseLiabilities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225020524503": {
"value": "-8900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherInflowsOutflowsOfCashClassifiedAsFinancingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225020531318": {
"value": "-10200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherInflowsOutflowsOfCashClassifiedAsFinancingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225020538414": {
"value": "6400000",
"decimals": -5,
"dimensions": {
"concept": "aris:IncreaseDecreaseInShortTermFinancialPayable",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225020545228": {
"value": "-2500000",
"decimals": -5,
"dimensions": {
"concept": "aris:IncreaseDecreaseInShortTermFinancialPayable",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225020553292": {
"value": "450500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProceedsFromNoncurrentBorrowings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225020601572": {
"value": "205200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProceedsFromNoncurrentBorrowings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022153950": {
"value": "62800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RepaymentsOfNoncurrentBorrowings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022159679": {
"value": "334700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:RepaymentsOfNoncurrentBorrowings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022205157": {
"value": "46400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DividendsPaidClassifiedAsFinancingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022210735": {
"value": "48300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DividendsPaidClassifiedAsFinancingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022216351": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "aris:CapitalAndReservesIncreaseDistribution",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022231335": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "aris:CapitalAndReservesIncreaseDistribution",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022241743": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProceedsFromIssueOfOrdinaryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022247671": {
"value": "294000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProceedsFromIssueOfOrdinaryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022253901": {
"value": "12500000",
"decimals": -5,
"dimensions": {
"concept": "aris:BuybackSaleOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022259510": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "aris:BuybackSaleOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022305500": {
"value": "322100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022311566": {
"value": "101900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022316239": {
"value": "319300000",
"decimals": -5,
"dimensions": {
"concept": "aris:CashFlowFromContinuingOperations",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022321647": {
"value": "207800000",
"decimals": -5,
"dimensions": {
"concept": "aris:CashFlowFromContinuingOperations",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022327894": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsDiscontinuedOperations",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022336959": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsDiscontinuedOperations",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022342892": {
"value": "319300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022347982": {
"value": "207800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022355862": {
"value": "2800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022403878": {
"value": "16900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022410132": {
"value": "322000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022416856": {
"value": "224800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022424847": {
"value": "655500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022431360": {
"value": "430700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022437401": {
"value": "977500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225022443119": {
"value": "655500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030505202": {
"value": "46000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030510144": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030515208": {
"value": "293700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030521001": {
"value": "28300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030526744": {
"value": "24400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030531695": {
"value": "-900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030540608": {
"value": "-26600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030547568": {
"value": "376800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032249955": {
"value": "136500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032256282": {
"value": "878300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032304162": {
"value": "-200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032309785": {
"value": "878100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220104603211": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220104804247": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220104813160": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220104951835": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220105935450": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220110054408": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220110211824": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220111723727": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220112110927": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220112313059": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220112325836": {
"value": "2400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621323_xbrl_20230220112454662": {
"value": "2400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220113346582": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220113351559": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220113325869": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220113157331": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220113122942": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220112959798": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220112944933": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220112838166": {
"value": "136500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220112823436": {
"value": "-136500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220112654084": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220112638009": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621314_xbrl_20230220112510312": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030449232": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030440720": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030431928": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030402680": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030352121": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030341662": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030332352": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230227101256081": {
"value": "46400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030324217": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030317399": {
"value": "46400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030249927": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030241600": {
"value": "46400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220104636887": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220104745143": {
"value": "12500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220104840899": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220105014701": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220110004194": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220110114786": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220110238395": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220111740472": {
"value": "-0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220112213757": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220112300066": {
"value": "12500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220112344791": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621320_xbrl_20230220112442237": {
"value": "12500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:PurchaseOfTreasuryShares",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220104641343": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220104738925": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220104847436": {
"value": "19600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220105032863": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220110010435": {
"value": "-13000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220110121434": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220110248563": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220111744897": {
"value": "500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220112220269": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220112256339": {
"value": "7100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220112349087": {
"value": "-100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621318_xbrl_20230220112438092": {
"value": "7000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220104649192": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220104718219": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220104900702": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220105043425": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220110016323": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220110126195": {
"value": "23700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220110252748": {
"value": "7900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220111749218": {
"value": "11600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220112226743": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220112252161": {
"value": "43200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220112409626": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621317_xbrl_20230220112433908": {
"value": "43200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024739946": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024749334": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024759452": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024808447": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024844511": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024856031": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024908776": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024919565": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030022801": {
"value": "140300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030028640": {
"value": "140300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030038855": {
"value": "100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225030231172": {
"value": "140300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032442577": {
"value": "46100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032435867": {
"value": "-12500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032431347": {
"value": "313300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032416562": {
"value": "28300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032411731": {
"value": "11400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032406778": {
"value": "22800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032400873": {
"value": "-18600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032344784": {
"value": "479000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032339090": {
"value": "140300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032333886": {
"value": "1010000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032324290": {
"value": "2200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032318615": {
"value": "1012200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032449266": {
"value": "41800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032453915": {
"value": "-13500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032458442": {
"value": "-82300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032504289": {
"value": "8400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032519034": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032524962": {
"value": "-1100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032534778": {
"value": "-30500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032539612": {
"value": "427000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032545344": {
"value": "96700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032549882": {
"value": "446500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032555346": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032559978": {
"value": "446500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032730467": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032722947": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032712875": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032700850": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032651811": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032645723": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032640313": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032630257": {
"value": "96700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032624234": {
"value": "-96700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032618835": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032612930": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032606047": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughAppropriationOfRetainedEarnings",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220104621053": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220104753222": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220104829330": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220105004692": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220105956002": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220110104953": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220110232890": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220111735640": {
"value": "48300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220112201429": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220112303842": {
"value": "48300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220112339966": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621321_xbrl_20230220112446276": {
"value": "48300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220113415890": {
"value": "300000",
"decimals": -5,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220113422779": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220113310258": {
"value": "293700000",
"decimals": -5,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220113208612": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220113106181": {
"value": "24400000",
"decimals": -5,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220113010343": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220112931451": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220112846182": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220112812866": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220112709820": {
"value": "318500000",
"decimals": -5,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220112621919": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621310_xbrl_20230220112520057": {
"value": "318500000",
"decimals": -5,
"dimensions": {
"concept": "aris:IpoEffects",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220113435108": {
"value": "3900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220113430003": {
"value": "13500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220113306674": {
"value": "82300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220113214020": {
"value": "19900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220113102356": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220113016592": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220112926451": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220112850776": {
"value": "-120000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220112758769": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220112714397": {
"value": "-400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220112611478": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621308_xbrl_20230220112524346": {
"value": "-400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220113440100": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220113446701": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220113302202": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220113224150": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220113053853": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220113020553": {
"value": "200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220112921358": {
"value": "4000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220112854823": {
"value": "21300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220112746640": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220112718869": {
"value": "25500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220112604678": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225024621305_xbrl_20230220112529049": {
"value": "25500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncome",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032846964": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032906603": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032915672": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032947364": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032954508": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033027933": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033049595": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033106396": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033123378": {
"value": "136500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033134595": {
"value": "136500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033147778": {
"value": "-200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033209387": {
"value": "136300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:815600CC86D25A205563",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032852139": {
"value": "46000000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032858228": {
"value": "0",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032924316": {
"value": "293700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032932131": {
"value": "28300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:StatutoryReserveMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225032938555": {
"value": "24400000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfSharebasedPaymentsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033000652": {
"value": "-900000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033039571": {
"value": "-26600000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033112235": {
"value": "376800000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "aris:RetainedEarningsLossesAndOtherReservesMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033118027": {
"value": "136500000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsProfitLossForReportingPeriodMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033128315": {
"value": "878300000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033235669": {
"value": "-200000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230225033242156": {
"value": "878100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:815600CC86D25A205563",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"Fxbrl_20230227093505968": {
"value": "\n \n
Notes to the consolidated financial statements at 31 December 2022
\n \n
\n \n
\n \n
\n \n
\n
1.
\n
Corporate information
\n
\n \n
\n \n
\n \n
Ariston Holding N.V. (hereafter also the \u201cParent Company\u201d) is a Company listed in Euronext Milan, Italy, having its statu-
\n
tory seat in The Netherlands and enrolled in the Chamber of Commerce \u2013 KVK \u2013 of Amsterdam (CCI no.83078738, RSIN
\n
no. 862717589, Establishment no. 000049275437, VAT Code: 01527100422, Fiscal Code 00760810572), with a secondary
\n
office in Via Broletto 44, Milano I-20121.
\n
The major business operations of the Group and of the Ariston Holding N.V. are in Italy and for that reason the Company
\n
has established a secondary seat with a permanent representative office, within the meaning of article 2508 of the Italian
\n
Civil Code.
\n
The Parent Company\u2019s primary purpose is to be a holding company and, with it, the management and coordination of a
\n
series of business processes for all the subsidiaries of the Group (hereinafter the \u201csubsidiaries\u201d). The Group, with its
\n
subsidiaries, is active in the business of the production and distribution of hot water and space heating and service solu-
\n
tions with a cutting-edge technology serving markets all around the world.
\n
At 31 December 2022, voting rights are as follows (not including 0.13% of Treasury Shares): Merloni Holding S.p.A. 74.03%
\n
and Amaranta S.r.l. 18.70% (equating to 74.60% of the share capital) while the market is entitled for the 7.27%.
\n
The issued share capital of the Company is held by Merloni Holding S.p.A. for 65.65%, Amaranta S.r.l. for 8.95%, the
\n
market for 24.95% and for 0.45% Ariston Holding (Treasury shares).
\n \n
\n
The consolidated financial statements of Ariston Group for the year ending 31 December 2022 were approved on 2 March
\n
2023 by the Board of Directors of the Parent Company and recognized for issue.
\n
\n \n
The Board of Directors reserves the right to amend the financial statements, up to the date of the Shareholders\u2019 meeting
\n
of the Parent Company, should any significant events occur that require changes to be made.
\n
The consolidated financial statements comprise the following: income statement, statement of other comprehensive
\n
income, statement of financial position, statement of cash flows, statement of changes equity (in euro million) and these
\n
notes to the financial statements.
\n \n
\n
The statement of cash flows has been prepared using the \u201cindirect method\u201d and shows the changes that occurred, during
\n
the period, in the \u201cshort-term financial position\u201d which measures the cash and cash equivalents (short-term and high
\n
liquidity financial investments promptly convertible and not subject to the risk of a change in value), classifying the finan-
\n
cial flows according to their origins, from operating activities, investments or financing.
\n
\n \n
These financial statements have been prepared in euro, the currency used in most of the Group\u2019s transactions. Transac-
\n
tions with foreign companies are included in the consolidated financial statements in compliance with the standards
\n
hereunder described.
\n \n
\n
2.
\n
Significant events of the year
\n
Significant events during the year relating to corporate actions, acquisitions agreements and other significant events
\n
impacting the results are reported in a dedicated section in the Director\u2019s report of this annual report. We summarize
\n
here below the main events of the year:
\n
\u2022
\n
On 5 January 2022, Ariston Group completed the acquisition of Chromagen group. Ariston Group acquired 100% of
\n
the shares and voting rights of the entity that operates in Israel and Spain. In Australia, Ariston Group acquired the
\n
shares owned by Kibbutz Shaar Haamakim while confirming both the current management team as well as the gov-
\n
ernance structure with the current minority shareholders. Chromagen develops, manufactures and markets renewa-
\n
ble hot water solutions, with a strong heritage in solar thermal technology;
\n
\n \n
\u2022
\n
On 14 June 2022, the Bahrain entity \u2018Ariston Thermo MEA SPC\u2019 was put into liquidation. As at 31 December 2022 the
\n
liquidation process is still ongoing. The contribution of the Bahrain entity on the Net Revenue of the Group is equal
\n
to nil and on the Total Assets of the Group is equal to 0.1%;
\n
\u2022
\n
On 13 July 2022, the Turkish subsidiary named \u2018Ariston Thermo Isitma ve Sogutma Sistemleri Ithalat, Ihracat ve Da-
\n
gitim Ltd Sirketi\u2019 was put into liquidation. As at 31 December 2022 the liquidation process is still ongoing. The contri-
\n
bution of the Turskish entity on the Net Revenue of the Group is equal to 0.1% and on the Total Assets of the Group
\n
is equal to 0.1%;
\n
\n \n
\n \n
\n \n
\n
\u2022
\n
In September Ariston Group signed an agreement for the acquisition of Centrotec Climate Systems GmbH, a leading
\n
player in the supply of heating, ventilation, air-handling and combined heat & power solutions, with around 2,500
\n
people employed and a well-established presence in Germany, in the Netherlands and a solid exposure to many other
\n
European markets. The manufacturing base is mainly located in Germany, the Netherlands and Croatia;
\n
\n \n
\u2022
\n
In 2022 Ariston Group suffered severe damage at the manufacturing plants of Genga and Cerreto D\u2019Esi due to the
\n
extraordinary flash floods on 15 September that hit Italy\u2019s central Marche region. The latter caused, in a nutshell,
\n
detriment to operating profit in different lines of the Profit and Loss. Up to 31 December 2022, Ariston Group identi-
\n
fied direct damages for \u20ac 15.3 million, only partially reimbursed on account for \u20ac 5 million by the insurance company.
\n
Furthermore, Ariston Group developed a calculation, which is still on going and not reimbursed in the financial period,
\n
in order to evaluate the business interruption which, at the moment, is still eating into the operating margin as volume
\n
losses and inefficiencies due to the production interruption caused by the extraordinary event. The full insurance
\n
reimbursement will occur upon full restart of the operations, likely later in 2023;
\n
\u2022
\n
In response to Russia\u2019s military aggression, the EU, the USA and the UK have adopted economic and financial sanctions
\n
designed to weaken Russia\u2019s ability to fund its war operation. The activity of our Ukraine entity is confirmed to be
\n
ongoing having mitigated the risks by creating provisions on both account receivables and inventories. Overall the
\n
business in Ukraine has low materiality and limited financial risks. The Russian operation is ongoing following all limi-
\n
tations introduced by the international community to business.
\n
\n \n \n
\n \n
\n
3.
\n
Basis of accounting preparation
\n
The consolidated financial statements have been prepared in compliance with the International Financial Reporting
\n
Standards (\u201cIFRS\u201d), which include all International Accounting Standards in force as well as all interpretations provided
\n
by the IFRS Interpretation Committee previously known as International Financial Reporting Interpretations Committee
\n
(\u201cIFRIC\u201d) and in accordance with title 9 book 2 Dutch civil code.
\n
\n \n
The Parent Company prepares the separate financial statements in compliance with the \u201caccounting standards\u201d under
\n
the Section 2:362 (8) of the Dutch Civil Code, pursuant to Part 9 of Book 2. These accounting policies are applied in the
\n
consolidated IFRS financial statements and in the separate financial statements.
\n
The financial statements were prepared based on the going concern principle, on the cost basis and taking any value
\n
adjustments into account where appropriate, this is with the exception of statement of financial position items, such as
\n
financial instruments, that, under the IFRS, must be recognized at fair value and except in cases in which the IFRS allow a
\n
different valuation criterion to be used. The carrying amount of assets and liabilities subject to fair value hedging trans-
\n
actions, which would otherwise be recorded at cost, has been adjusted to take account of the changes in fair value at-
\n
tributable to the risk being hedged.
\n
The recognized financial statements provide comparative information in respect of previous period.
\n \n
\n
i.
\n
Going concern
\n
December 2022, for the sake of business that Ariston Group carried out among countries, cannot be considered
\n
anymore characterized by Covid-19 pandemic.
\n
Having the Group still in place a series of counter actions, learned by experience, mitigating risks brought by the
\n
virus, management does not consider at the moment an issue for the going concern.
\n
In compliance with IAS 38 and IAS 36, on a yearly basis, the Group verifies the recoverable value of intangible assets
\n
with indefinite life, the values were tested at aggregate level based on the values allocated to the three cash-gen-
\n
erating units (CGUs), identified as the lowest level at which the Goodwill is monitored by the Group and is considered
\n
appropriate, given the synergies and efficiencies obtained.
\n
The financials and economics prospective had been therefore not affected by the pandemic, the Group continues
\n
to be very sound, in all the economic and financial ratios, protecting its operations, revamping the investment plans
\n
and not exposed to any going concern issues.
\n
\n \n \n
\n
ii.
\n
Segment reporting
\n
For management purposes, the Group is organized into 3 business divisions (representing the three CGUs Thermal
\n
Comfort, Burners and Components), however from a segment reporting perspective, the Group discloses a unique
\n
reportable segment, in accordance with what provides the principle IFRS 8 \u2013 Operating Segments.
\n
\n \n
\n \n
\n \n
\n
In assessing performance, the management reviews financial information on an integrated basis for the Group as a
\n
whole, substantially in the form of, and on the same basis as, the Group\u2019s IFRS Financial Statements.
\n
The information required as per IFRS 8.31-34 have been disclosed within the Section \u20186. Disclosure to the Financial
\n
Statements\u2019.
\n
\n \n \n
\n
ii.
\n
Principles and basis of consolidation
\n
The consolidated financial statements include the financial statements of the Parent Company and of the Italian and
\n
foreign subsidiaries.
\n
For the purposes of preparing the IFRS-compliant consolidated financial statements, all consolidated companies
\n
have prepared a specific reporting package, at the same reference date, based on the IFRS standards that the Group
\n
has adopted and which are described below, entailing the reclassification and/or rectification of their accounting
\n
data prepared for disclosure purposes on a local level.
\n
The consolidated financial statements reflect the financial position and economic result of the Parent Company and
\n
of its subsidiaries, both directly and indirectly controlled. In particular, the consolidated entities are those under the
\n
control of Ariston Holding N.V. either through a direct or indirect equity ownership, with the majority of voting rights
\n
at the General Meeting, or through the exercise of a dominant influence over the financial and operating policies of
\n
the companies/entities, thus obtaining the related benefits, even without regard to equity ownership.
\n
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the
\n
investee and has the ability to affect those returns through its power over the investee. Specifically, the Group
\n
controls an investee if, and only if, the Group has:
\n
\u2022
\n
Power over the investee (i.e., existing rights that give it the current ability to direct the significant activities of
\n
the investee);
\n
\u2022
\n
Exposure, or rights, to variable returns from its involvement with the investee;
\n
\u2022
\n
The ability to use its power over the investee to affect its returns. Generally, there is a presumption that a ma-
\n
jority of voting rights results in control. To support this presumption and when the Group has less than a majority
\n
of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing
\n
whether it has power over an investee, including: the contractual arrangement(s) with the other vote holders of the
\n
investee; rights arising from other contractual arrangements and the Group\u2019s voting rights and potential voting
\n
rights.
\n
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
\n
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group
\n
obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
\n
income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated finan-
\n
cial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.
\n
All subsidiaries are consolidated from the date when the Group acquired their control. The entities are excluded
\n
from the consolidation area from the date when the Group ceases or loses control of them.
\n
Income statement and each component of OCI are attributed to the equity holders of the parent of the Group and
\n
to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
\n
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies
\n
in line with the Group\u2019s accounting policies.
\n
All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between mem-
\n
bers of the Group are eliminated in full on consolidation.
\n
Compared to 31 December 2021, the scope of consolidation changed due to the following transactions:
\n
\u2022
\n
On 5 January 2022, Ariston Group completed the acquisition of Chromagen group. Refer to \u2018Note 2.1.1 \u2013 Busi-
\n
ness combinations\u2019 for further details. Chromagen group is included in the Ariston Group\u2019s perimeter starting from
\n
January 2022;
\n
\u2022
\n
In November 2022, the French subsidiary STV France merged by incorporation into Ariston France with retroac-
\n
tive accounting effects as from 1 January 2022.
\n
\u2022
\n
In December 2022, the Spanish subsidiary Chromagen Espana S.L. merged by incorporation into Ariston Iberica
\n
SL with retroactive accounting effects as from 9 February 2022.
\n
\n \n
\n
For further details on transactions that occurred in the year, reference should be made to the following section
\n
\u201cConsolidation and translation principles\u201d.
\n
The list of the companies included in the basis of consolidation at 31 December 2022 is presented in the \u201cList of
\n
companies at 31 December 2022\u201d.
\n \n
\n
Subsidiaries
\n
A subsidiary is a company where the financial and operating policies are determined by the Parent Company which aims
\n
to benefit from their activities.
\n
The economic result of the subsidiaries, whether acquired or transferred during the period, are included in the consoli-
\n
dated income statement from the actual acquisition date to the actual transfer date.
\n
The share of non-controlling interests in the net assets of the consolidated subsidiaries is identified separately from the
\n
equity attributable to owners of the Parent. This share is determined based on their percentage of interest held:
\n
a.
\n
in the fair values of the assets and liabilities recognized at the date of business combination. As regards the symmetric
\n
put and call contracts connected to the new acquisitions, they have been represented by recognizing under financial
\n
liabilities in the statement of financial position the fair value of the payable arising from the purchase and sale options
\n
signed at the moment of the acquisition on all the shares held by the minority shareholders, and without the recog-
\n
nition of the residual equity attributable to non-controlling interests (see the subsequent section: \u201cBusiness combi-
\n
nations\u201d);
\n
b.
\n
in the changes in equity after that date. Subsequently, the losses attributable to non-controlling interests exceeding
\n
the equity attributable to them, are recognized under non-controlling interests.
\n
\n \n \n
\n \n
\n \n
\n
Associates and joint ventures
\n
The consolidated financial statements include the portion of associates\u2019 economic results attributable to the Group. As-
\n
sociates are companies over which the Group has a significant influence, in terms of financial and operating policies,
\n
although not holding a control or joint control. The portion of these companies\u2019 economic results attributable to the
\n
Group is recognized according to the equity method, from the date when the significant influence starts until it ceases to
\n
exist. If the portion of losses of an associate attributable to the Group exceeds the carrying value of the investment
\n
recognized in the financial statements, the amount of this investment is waived and the portion of exceeding losses is
\n
not recognized, except and to the extent of the obligations assumed by the Group.
\n
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights
\n
to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which
\n
exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
\n
The considerations made in determining significant influence or joint control are similar to those necessary to determine
\n
control over subsidiaries. The Group\u2019s investment in its associate and joint venture are accounted for using the equity
\n
method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost.
\n
The carrying amount of the investment is adjusted to recognize changes in the Group\u2019s share of net assets of the associate
\n
or joint venture since the acquisition date.
\n
The income statement reflects the Group\u2019s share of the results of operations of the associate or joint venture. Any change
\n
in OCI of those investees is presented as part of the Group\u2019s OCI. In addition, when there has been a change recognized
\n
directly in the equity of the associate or joint venture, the Group recognized its share of any changes, when applicable,
\n
in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and
\n
the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.
\n
The aggregate of the Group\u2019s share of income statement of an associate and a joint venture is shown on the face of the
\n
income statement outside operating profit and represents profit or loss after tax and non-controlling interests in the
\n
subsidiaries of the associate or joint venture.
\n
The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. When
\n
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
\n
After application of the equity method, the Group determines whether it is necessary to recognize an impairment loss
\n
on its investment in its associate or joint venture. At each reporting date, the Group determines whether there is objective
\n
evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group calculates
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its
\n
carrying value, and then recognizes the loss within \u2018Share of profit of an associate and a joint venture\u2019 in the income
\n
statement.
\n
Upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and
\n
recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint
\n
venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from
\n
disposal is recognized in income statement.
\n
\n \n
\n \n
\n \n
Transactions excluded from the consolidation process
\n
All significant intra-group balances and transactions arising from intra-group transactions are eliminated in preparing the
\n
Consolidated Financial Statements.
\n \n
\n
Consolidation of foreign companies
\n
All assets and liabilities of foreign companies in a functional currency other than the euro, falling within the consolidation
\n
area, are converted using the exchange rates in effect at the reference date of the financial statements (method of the
\n
current exchange rates). Income and expenses are converted at the average exchange rate for the period. Should it be
\n
possible to identify the specific exchange rate for individual transactions, these items are converted at the related spot
\n
rate.
\n
The differences in the exchange rates on assets and liabilities of foreign companies in currencies other than the euro
\n
arising from application of this method are recognized in OCI and under equity until the shareholding is transferred.
\n
Goodwill and adjustments to the fair values generated by the acquisition of a foreign company, are recognized in their
\n
currency and converted using the exchange rate at the end of the reporting period.
\n
The following table contains the exchange rates against the euro applied in the translation of financial statements ex-
\n
pressed in another currency: (exchange rate = euro/currency).
\n
Currency
\n
2022
\n
2021
\n
Average exch. Rate
\n
Exch. Rate at
\n
31.12
\n
Average exch.
\n
Rate
\n
Exch. Rate at
\n
31.12
\n
EMIRATI DIRHAM
\n
AED
\n
3.8903
\n
3.9171
\n
4.3419
\n
4.1595
\n
ARGENTIN PESO
\n
ARS
\n
188.5033
\n
188.5033
\n
116.3622
\n
116.3622
\n
CANADIAN DOLLAR
\n
CAD
\n
1.3674
\n
1.4440
\n
1.4831
\n
1.4393
\n
SWISS FRANC
\n
CHF
\n
1.0034
\n
0.9847
\n
1.0815
\n
1.0331
\n
CHINESE RENMINBI
\n
CNY
\n
7.0931
\n
7.3582
\n
7.5688
\n
7.1947
\n
CZECH KORUNA
\n
CZK
\n
24.5718
\n
24.1160
\n
25.6498
\n
24.8580
\n
DANISH CROWN
\n
DKK
\n
7.4394
\n
7.4365
\n
7.4371
\n
7.4364
\n
EGYPTIAN POUND
\n
EGP
\n
20.0382
\n
26.3990
\n
18.4796
\n
17.8012
\n
ENGLISH STERLING
\n
GBP
\n
0.8526
\n
0.8869
\n
0.8603
\n
0.8403
\n
CROATIAN KUNA
\n
HRK
\n
7.5357
\n
7.5365
\n
7.5277
\n
7.5156
\n
HUNGARIAN FORINT
\n
HUF
\n
392.4311
\n
400.8700
\n
358.5748
\n
369.1900
\n
INDONESIAN RUPIAH
\n
IDR
\n
15,608.3120
\n
16,519.8200
\n
16,922.4258
\n
16,100.4200
\n
INDIAN RUPIAH
\n
INR
\n
82.4618
\n
88.1710
\n
87.2112
\n
84.2292
\n
KAZAKHSTANI TENGE
\n
KZT
\n
481.4668
\n
492.9000
\n
502.3916
\n
492.7500
\n
MOROCCO DIRHAM
\n
MAD
\n
10.6757
\n
11.1580
\n
10.6354
\n
10.4830
\n
MEXICAN PESO
\n
MXN
\n
20.9434
\n
20.8560
\n
23.9546
\n
23.1438
\n
NIGERIAN NAIRA
\n
NGN
\n
596.1000
\n
653.8300
\n
533.6500
\n
484.9200
\n
POLISH ZLOTY
\n
PLN
\n
4.6931
\n
4.6808
\n
4.5673
\n
4.5969
\n
ROMANIAN NEW LEU
\n
RON
\n
4.9299
\n
4.9495
\n
4.9256
\n
4.9490
\n
RUSSIAN RUBLE
\n
RUB
\n
69.6963
\n
77.8998
\n
86.8960
\n
85.3004
\n
SINGAPORE DOLLAR
\n
SGD
\n
1.4534
\n
1.4300
\n
1.5868
\n
1.5279
\n
TUNISIAN DINAR
\n
TND
\n
3.2514
\n
3.3221
\n
3.2883
\n
3.2603
\n
TURKISH NEW LIRA
\n
TRY
\n
16.5058
\n
19.9649
\n
10.5850
\n
15.2335
\n
UKRAINIAN HRYVNIA
\n
UAH
\n
34.5027
\n
39.0370
\n
32.0743
\n
30.9219
\n
US DOLLAR
\n
USD
\n
1.0536
\n
1.0666
\n
1.1802
\n
1.1326
\n
VIETNAM DONG
\n
VND
\n
24,497.4172
\n
25,183.0000
\n
26,702.7754
\n
25,819.0000
\n
\n \n
\n \n
\n
ISRAELI NEW SHEKEL
\n
ILS
\n
3.5400
\n
3.7554
\n
3.8242
\n
3.5159
\n
SERBIAN DINAR
\n
RSD
\n
117.4202
\n
117.3246
\n
117.5512
\n
117.6165
\n
AUSTRALIAD DOLLAR
\n
AUD
\n
1.5156
\n
1.5693
\n
1.5747
\n
1.5615
\n
SOUTH AFRICAN RAND
\n
ZAR
\n
17.1696
\n
18.0986
\n
17.4094
\n
18.0625
\n
The exchange rate used for the translation of the Nigerian naira into the presentation currency is that at which future
\n
cash flows would be realized, in accordance with IAS 21.
\n
\n \n \n
\n
Hyperinflation
\n
If a subsidiary operates in a hyperinflationary economy, the related economic and financial results are adjusted in accord-
\n
ance with the method established by IFRS, before being translated into the functional currency of the Group. The eco-
\n
nomic and financial data are restated in local currency, taking into account the current purchasing power of the currency
\n
on the financial statements date.
\n
Argentina and Turkey fulfilled the conditions which determine the presence of hyperinflation in accordance with the IFRS
\n
(International Financial Reporting Standards). Consequently, as of 1 July 2018, all the companies operating in Argentina
\n
have been required to apply IAS 29
\n
Financial Reporting in Hyperinflationary Economies
\n
in preparing the financial reports.
\n
With reference to the Group, the consolidated financial results at 31 December 2022 include the effects from the appli-
\n
cation of the aforementioned accounting standard as in the prior year.
\n
In accordance with the provisions of IAS 29, the remeasurement of the values in the financial statements overall requires
\n
the application of specific procedures and a measurement process which the Group had already started in the final part
\n
of 2018 for Argentina and of 2022 for Turkey. In particular:
\n
\u2022
\n
in relation to the income statement, costs and revenue were restated applying the change in the general consumer
\n
price index, in order to reflect the fall in purchasing power experienced by the local currency at 31 December 2022.
\n
For the purposes of the translation into euro of the income statement thus restated, the spot exchange rate at 31
\n
December 2022 was consistently applied rather than the average exchange rate for the period. With reference to
\n
consolidated net revenue in the period, the effect from the application of the standard entailed a negative change of
\n
Argentine peso 260.5 million equal to \u20ac 1.4 million in 2022. The effect of the hyperinflation for the Turkish entity has
\n
not been considered in the income statement given that the impact is not material and the entity has been in liqui-
\n
dation since July 2022;
\n
\u2022
\n
as regards the statement of financial position, the monetary elements were not restated, since they are already ex-
\n
pressed in the current unit of measurement at the end date of the period; the non-monetary assets and liabilities
\n
were instead restated to reflect the fall in purchasing power of the local currency that occurred from the date on
\n
which the assets and liabilities were initially recorded, at the end of the period.
\n
\n \n \n
\n \n
\n
Business combinations
\n
Business combinations are accounted for using the acquisition method.
\n
The Group verifies that a business combination falls within the definition of the IFRS guidance hence only if it is an inte-
\n
grated set of activities and assets that with the input and process, contribute to the output creation.
\n
The cost of acquisition is calculated as the sum of payments transferred as part of a business combination, measured at
\n
fair value, on the acquisition date and at the value of the portion of the shareholders\u2019 equity relating to non-controlling
\n
interests, measured at fair value of the net interest recognized for the acquired entity.
\n
Ancillary costs related to the transactions are recorded in the income statement at the time they are incurred. The Group
\n
determines that it has acquired a business when the acquired set of activities and assets include an input and a substan-
\n
tive process that together significantly contribute to the ability to create outputs.
\n
The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs
\n
acquired include an organized workforce with the necessary skills, knowledge, or experience to perform that process or
\n
it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be
\n
replaced without significant cost, effort, or delay in the ability to continue producing outputs.
\n
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification
\n
and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the
\n
acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.
\n
\n \n
\n \n
\n \n
\n \n
\n
Should the business combination be done in instalments, the interest previously held by the Group in the acquired busi-
\n
ness is revealed at fair value on the date control is acquired, and any resulting gains or losses are recognized in the income
\n
statement.
\n
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date.
\n
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
\n
equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of
\n \n
\n
IFRS 9
\n
Financial Instruments
\n
, is measured at fair value with the changes in fair value recognized in the income statement
\n
\n \n
in accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is remeasured at fair
\n
value at each reporting date with changes in fair value recognized in income statement.
\n
Any changes in the fair value of the net assets acquired, occurring once further information is available during the meas-
\n
urement period \u2013 12 months from the acquisition date \u2013 are included retrospectively in goodwill.
\n \n
\n \n
\n
Goodwill acquired in business combinations is initially measured at cost, as the excess of the sum of payments transferred,
\n
the value of the portion of shareholders\u2019 equity relating to non-controlling interests and the fair value of any interest
\n
previously held in the acquired business over the Group\u2019s portion of the net fair value of the identifiable assets, liabilities
\n
and contingent liabilities of the acquired company. If the value of the net assets acquired and liabilities assumed on the
\n
acquisition date exceeds the sum of the transferred payments, the value of the non-controlling interests\u2019 portion of
\n
shareholders\u2019 equity and the fair value of any interest previously held in the acquired business, this excess value is ac-
\n
counted for in profit and loss as income from the transaction.
\n
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impair-
\n
ment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s
\n
cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities
\n
of the acquiree are assigned to those units.
\n
\n \n
\n \n
\n \n
\n \n \n
\n
Recognition of non-controlling interests
\n
Non-controlling interests relate to the portion of a subsidiary\u2019s shareholders\u2019 equity that is not directly or indirectly at-
\n
tributable to the Group.
\n
Should cross-mechanisms, which give the Group the right to acquire the non-controlling interests (call option agreement)
\n
or rights to sell the same to the Group (put option agreement) or a combination of both (put and call option agreements)
\n
be in place, an analysis is made as to whether the risks and benefits connected with the share of legal ownership of the
\n
business to which the non-controlling interests pertain are broadly attributable to the latter or to the Group. These rights
\n
to purchase or sell the non-controlling interests may be set at a fixed price, a variable price or a fair value, and may be
\n
exercisable on a fixed date or at any time in the future. Each of these variables is examined to determine the effects on
\n
the presentation of the accounts.
\n
If the non-controlling interests have an effective involvement in the conduct of the business, those interest must continue
\n
to be represented in addition to the Group\u2019s shareholders\u2019 equity and, at the same time, the financial liability relating to
\n
the put and/or call option agreements must be recorded.
\n
\n \n \n
\n
Accounting treatment of the Atmor Industries Group option agreement clause \u2013 Relocation Project
\n
As a result of (i) the consideration of the characteristics of the control exercised due to the contractual commitments and
\n
(ii) the specific accounting policy adopted by the Group, the acquisition of 60% of the Atmor Group, which occurred on 7
\n
September 2017, with the simultaneous subscription of a put option in favour of the seller and a call option in favour of
\n
the buyer, relating to the residual 40% of the share capital. The option has been exercised in previous years.
\n
In 2020 as part of the option agreement the parties determined an adjustment to the price based on certain milestones
\n
linked to the Relocation Project. The amount is equal to \u20ac 0.3 million.
\n
The liability is expected to be paid in 2023 and is therefore classified under current liabilities.
\n
\n \n \n
\n
Accounting treatment of the Haas Heating BV earn out
\n
On 10 June 2021, 24.5% of the shares of the Dutch company Haas Heating B.V. were acquired by the Group through
\n
ATAG Heating B.V.
\n
The acquisition agreement sets forth a mechanism for a subsequent adjustment of the purchase price (earn-out) based
\n
on a sales scheme at specific dates falling under IAS 28
\n
Investment in Associates and Joint Ventures
\n
.
\n
\n \n
\n \n
\n \n
\n \n
\n
Therefore, a liability equal to the current value of the estimated obligation as at the date of its eventual future exercise,
\n
was recognized in the financial statements against the equity participation value.
\n
A Shares Purchase Agreement defined the purchase price at \u20ac 0.8 million and a liability for \u20ac 1.5 million is related to the
\n
earn-out program.
\n
For the remaining shares the agreement foresees a series of call options until December 2023 that are not reflected in
\n
the Financial Statements and are not material in terms of the amount.
\n
The company is treated as a joint venture due to the fact that the shareholder has a right of veto on important business
\n
decisions, thus valuing the participation with the equity method with the existence of a financial liability to be paid for
\n
acquiring the entity.
\n
\n \n \n
\n
Accounting treatment of the Chromagen Group Reps & Warranties
\n
On 5 January 2022, Ariston Group acquired 100% of the shares and voting rights of Chromagen Group that operates in
\n
Israel, Australia and Spain.
\n
The agreement set forth a series of representation and warranty clauses to cover Ariston Group against previous undis-
\n
closed liabilities not known at the date of the agreement. Ariston Group has withheld from the Purchase Price an amount
\n
to cover those risks which will be paid to the seller as per the agreement.
\n
The present value of this amount is equal to \u20ac 2.1 million and it is classified under current liabilities given that the expiry
\n
date is in 2023.
\n
The following table summarizes the fair value of financial liabilities described above:
\n
Company
\n
Type
\n
% Owner-
\n
ship
\n
Execution
\n
Date
\n
Local
\n
Currency
\n
\u20ac
\n
Atmor Industries Group
\n
Relocation Project
\n
n.a.
\n
2023
\n
0.3 USD
\n
0.3
\n
Chromagen Group
\n
Reps and Warranties
\n
n.a.
\n
2023
\n
6.9 ILS
\n
2.1
\n
Financial liabilities related to Invest-
\n
ments in Subsidiaries
\n
2.4
\n
Haas Heating BV
\n
Earn out
\n
n.a.
\n
2023
\n
1.5 EUR
\n
1.5
\n
Financial liabilities related to Investe-
\n
ments in Third Parties
\n
1.5
\n
\n \n
\n \n
\n \n \n
\n
4.
\n
Significant accounting policies
\n
i.
\n
Current versus non-current classification
\n
The Group presents assets and liabilities in the statement of financial position based on current/non-current classifica-
\n
tion. An asset is current when it is:
\n
\u2022
\n
Expected to be realized or intended to be sold or consumed in the normal operating cycle
\n
\u2022
\n
Held primarily for the purpose of trading
\n
\u2022
\n
Expected to be realized within twelve months after the reporting period
\n
Or
\n
\u2022
\n
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
\n
after the reporting period.
\n
All other assets are classified as non-current.
\n
A liability is current when:
\n
\u2022
\n
It is expected to be settled in the normal operating cycle
\n
\u2022
\n
It is held primarily for the purpose of trading
\n
\u2022
\n
It is due to be settled within twelve months after the reporting period
\n
Or
\n
\u2022
\n
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
\n
period
\n
The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity
\n
instruments do not affect its classification.
\n
The Group classifies all other liabilities as non-current.
\n
\n \n
\n
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
\n \n
\n
ii.
\n
Fair value measurement
\n
The Group measures financial instruments such as derivatives, and non-financial assets at fair value at each balance sheet
\n
date.
\n
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
\n
market participants at the measurement date. The fair value measurement is based on the presumption that the trans-
\n
action to sell the asset or transfer the liability takes place either:
\n
\u2022
\n
In the principal market for the asset or liability
\n
Or
\n
\u2022
\n
In the absence of a principal market, in the most advantageous market for the asset or liability, the principal or the
\n
most advantageous market must be accessible by the Group.
\n
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
\n
the asset or liability, assuming that market participants act in their economic best interest.
\n
A fair value measurement of a non-financial asset takes into account a market participant\u2019s ability to generate economic
\n
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
\n
asset in its highest and best use.
\n
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
\n
to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
\n
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within
\n
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measure-
\n
ment as a whole:
\n
\u2022
\n
Level 1 \u2013 Quoted (unadjusted) market prices in active markets for identical assets or liabilities
\n
\u2022
\n
Level 2 \u2013 Valuation techniques for which the lowest level input that is significant to the fair value measurement is
\n
directly or indirectly observable
\n
\u2022
\n
Level 3 \u2013 Valuation techniques for which the lowest level input that is significant to the fair value measurement is
\n
unobservable
\n
For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Group de-
\n
termines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the
\n
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
\n
The Group determines the policies and procedures for both recurring fair value measurement, such as investment prop-
\n
erties and unquoted financial assets, and for non-recurring measurement, such as assets held for sale in discontinued
\n
operations.
\n
External valuators are involved for valuation of significant assets, such as investment properties and unquoted financial
\n
assets, and significant liabilities, such as contingent consideration.
\n
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the
\n
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above.
\n
\n \n \n
\n \n
\n
iii.
\n
Intangible assets
\n
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
\n
in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are
\n
carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles,
\n
excluding capitalized development costs, are not capitalized and the related expenditure is reflected in income statement
\n
in the period in which the expenditure is incurred.
\n
The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amor-
\n
tized over the useful economic life and assessed for impairment
\n
whenever there is an indication that the intangible asset
\n
may be impaired. The amortization period and the
\n
amortization method for an intangible asset with a finite useful life
\n
are reviewed at least at the end of each
\n
reporting period. Changes in the expected useful life or the expected pattern of
\n
consumption of future
\n
economic benefits embodied in the asset are considered to modify the amortization period or
\n
\n \n
\n \n
\n \n
\n \n
\n
method, as
\n
appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible
\n
assets with finite lives is recognized in the income statement in the expense category that is
\n
consistent with the function
\n
of the intangible assets.
\n
Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually
\n
or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the
\n
indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospec-
\n
tive basis.
\n
An intangible asset is derecognized upon disposal (i.e., at the date the recipient obtains control) or when no future eco-
\n
nomic benefits are expected from its use or disposal. Any gain or loss arising upon de-recognition of the asset (calculated
\n
as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income
\n
statement.
\n
\n \n
\n \n \n
\n \n
\n
Goodwill
\n
Goodwill arising from the acquisition of a subsidiary reflects the excess of the acquisition cost over the percentage at-
\n
tributable to the Group, of the fair value of the subsidiary\u2019s identifiable assets, liabilities and potential liabilities at the
\n
acquisition date (IAS
\n
36). The goodwill is recognized as an asset and undergoes an impairment test on an annual basis, or
\n
more frequently if there are events or changes in the circumstances that may result in impairment losses.
\n
For this purpose, the goodwill, if any, resulting at the acquisition date is allocated to each of the cash generating units
\n
(CGU), which are expected to benefit from the synergy effects deriving from the acquisition. Any loss in value is identified
\n
through valuations that are based on the capacity of each unit to produce financial flows capable of recovering the part
\n
of goodwill allocated to it, according to the methods described hereinafter, in the section \u201cImpairment of assets\u201d. If the
\n
value recoverable by the cash generating unit is below the attributed carrying value, the related impairment loss is rec-
\n
ognized. This impairment loss is not restored if the reasons that have generated it cease to exist.
\n
If in a subsidiary the control is lost, the portion of goodwill attributable to it at the date of the sale is included in the
\n
calculation of the gain or loss on disposal.
\n
\n \n
\n \n \n
\n \n
\n \n
\n
Internally generated intangible assets \u2013 Research and development costs
\n
Research costs are recognized in the income statement for the period in which they are incurred.
\n
Internally generated intangible assets deriving from the development of the Group\u2019s products are recognized under as-
\n
sets, only if all of the following conditions are met:
\n
\u2022
\n
The technical feasibility of completing the intangible asset so that the asset will be available for use or sale
\n
\u2022
\n
Its intention to complete and its ability and intention to use or sell the asset
\n
\u2022
\n
How the asset will generate future economic benefits
\n
\u2022
\n
The availability of resources to complete the asset
\n
\u2022
\n
The ability to measure reliably the expenditure during development
\n
The capitalized development costs include only the expense incurred which may be attributed directly to the develop-
\n
ment process.
\n
These intangible assets with definite useful life are amortized on a straight-line basis over the respective useful life of the
\n
product, which is normally 5 years. Any impairment losses, and any restatement, are based on the same methods de-
\n
scribed in the section \u201cImpairment of assets\u201d.
\n
If the internally generated assets cannot be recognized in the financial statements, the development costs are recognized
\n
in the income statement for the period in which they are incurred.
\n
\n \n
Other intangible assets
\n
Other intangible assets, whether purchased or internally produced, are recognized under assets in compliance with IAS
\n
38
\n
Intangible Assets
\n
, if it is likely that the use of the assets will generate future economic benefits and when the cost of
\n
the asset can be accurately measured.
\n
These assets (such as concessions, licenses, trademarks and software) with a definite useful life are recognized at pur-
\n
chase or production cost and amortized on a straight-line basis over their estimated useful life. Any impairment losses,
\n
and any restatement, are based on the same methods described in the section \u201cImpairment of assets\u201d
\n
\n \n
\n \n
\n \n
\n \n
\n
Intangible assets with indefinite useful life are not amortized but are subject to evaluation in order to identify any impair-
\n
ment loss, yearly or more frequently, at any time there is an indication that the asset may have been impaired.
\n
The other intangible assets recognized following the acquisition of a company are recognized separately from the good-
\n
will, if their current value can be accurately measured.
\n
Here below are the principles applied by the Group for intangible assets (IAS 38.118) (a) (b):
\n
Licenses
\n
Trademarks
\n
Development costs
\n
Software
\n
Useful life
\n
Definite (5 years)
\n
Indefinite
\n
Definite (5 years)
\n
Definite (4 years)
\n
Amortisation
\n
method used
\n
Amortised on a straight-
\n
line basis over the period
\n
of the license itself
\n
No amortisation
\n
Amortised on a straight-
\n
line basis over the pe-
\n
riod of expected future
\n
sales resulting from the
\n
related project
\n
Amortised on a
\n
straight-line basis
\n
over the period of
\n
the usage of the
\n
software itself
\n
Produced in-house
\n
or purchased
\n
Purchased
\n
Purchased
\n
Produced in-house
\n
Purchased
\n
\n \n
\n \n \n
\n \n
\n \n
\n
iv.
\n
Property, plant and equipment
\n
\n \n
\n \n
Property, plant and equipment are recognized at cost, net of accumulated depreciation and impairment losses, if any.
\n
Construction in progress is stated at cost, net of accumulated impairment losses, if any.
\n
The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the
\n
respective asset if the recognition criteria for a provision are met.
\n
Assets with components of a significant value and with a different useful life are recognized separately when depreciated.
\n
Under IAS 16 Property, Plant and Equipment an entity has a policy choice for the measurement of property, plant and
\n
equipment after initial recognition. An entity may choose either the cost model or the revaluation model for entire classes
\n
of property, plant and equipment. The Group has elected to use the cost model for all class of assets.
\n \n
\n
The depreciation is calculated on a straight-line basis, according to the cost of the asset net of all residual values, on its
\n
estimated useful economic-technical life through the use of depreciation rates that accurately represent it. If significant
\n
parts of these tangible assets have a different useful life, they will be stated separately. The depreciation will be based
\n
on the following percentage rates:
\n
Buildings and light constructions
\n
from 1.8 to 3.0
\n
Plant and machinery
\n
from 6.0 to 15.5
\n
Industrial and commercial equipment
\n
from 10.0 to 25.0
\n
Cars and internal transport vehicles
\n
from 20.0 to 25.0
\n
Furniture, office equipment, data processing systems
\n
from 12.0 to 20.0
\n
The Group reviews the estimated residual values and expected useful lives of assets at least annually.
\n
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
\n
financial year end and adjusted prospectively, if appropriate.
\n
Land with no construction or annexed to residential and industrial buildings, is not depreciated since it has an unlimited
\n
useful life.
\n
\n \n
An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal (i.e.,
\n
at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal.
\n
Gains and losses arising from the sale or disposal of assets are calculated as the difference between revenue from sales
\n
and the net carrying value of the asset, and are recognized in the income statement for the year.
\n
\n \n
\n
v.
\n
Leases
\n
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the
\n
right to control the use of an identified asset for a period of time in exchange for consideration.
\n
The rights of use relating to leases are recognized in a single accounting model to recognize the lease. In accordance with
\n
this model, the entity recognizes: (1) assets and liabilities for all leases with a duration of over twelve months; (2) sepa-
\n
rately in the income statement, the amortization/depreciation of the recognized asset and the interest on the financial
\n
payable recorded.
\n
More specifically, in order to determine the value of the assets with \u201cright of use\u201d, the value of the related discounted
\n
liabilities, any payments made to the lessor before signing the contract, net of the incentives received, the initial direct
\n
costs incurred by the lessee as well as the provisions for removal and dismantling, if any, were taken into account.
\n
Lease agreements in place within the Group ranges from offices, warehouses, plants, machinery and vehicles and low
\n
value assets belonging to third parties.
\n
Lease terms are generally ranging from 1-10 years but may contains options to extend them. Terms of lease may also
\n
contain wide range of different conditions.
\n
Falling under the IFRS 16 guidelines, the rights of use are valued at cost, net of accumulated amortization and impairment
\n
losses and adjusted after any remeasurement of the lease liabilities. The value assigned to the rights of use corresponds
\n
to the amount of the lease liabilities recognized, plus initial direct costs incurred, lease payments settled on the start date
\n
of the agreement or previously, and restoration costs, net of any lease incentives received.
\n
The value of the liability, discounted to present value, as determined above, increases the right of use of the underlying
\n
asset, and a dedicated liablity is created as a contra-entry. The rights of use are amortized on a straight-line basis over its
\n
estimated useful life or the term of the agreement, whichever is the shorter. The financial liability for leases is recognized
\n
on the start date of the agreement at a total value equal to the present value of the lease payments to be made during
\n
the term of the agreement, discounted to present value using incremental borrowing rates (IBR) when the implicit inter-
\n
est rate in the lease agreement cannot easily be determined. Variable lease payments which are not linked to an index
\n
or rate continue to be charged to the income statement as costs for the period.
\n
After the start date, the amount recorded for the liabilities relating to lease contracts increases to reflect the accrual of
\n
interest and reduces to reflect the payments made. Each lease payment is divided into a repayment of the capital portion
\n
of the liability and a financial cost. The financial cost is charged to the income statement over the term of the agreement
\n
to reflect a constant interest rate on the remaining debt portion of the liability for each period.
\n
The term of the lease is calculated taking into account the non-cancellable period of the lease together with the periods
\n
covered by an option to extend the agreement if it is reasonably certain that it will be exercised, or any period covered
\n
by an option to terminate the lease contract, if it is reasonably certain it will not be exercised. The Group assesses whether
\n
it is reasonably certain that it will exercise the options to extend or will terminate the agreements taking into account all
\n
the relevant factors that create a financial incentive for such decisions.
\n
On the basis of the practical expedients, recognition exemptions for low-value and short-term leases, equal to \u20ac 14.6
\n
million for 2022 (\u20ac 11.2 million for 2021) was not considered and \u20ac 5.2 million for 2022 (\u20ac 4.7 million for 2021) out of
\n
scope IFRS 16 which are comprise mainly away tolls and rent contracts for IT equipment.
\n
The agreements are either included or excluded from the application of the standard based on detailed analysis carried
\n
out for each agreement and in line with the rules laid down by IFRS standards.
\n
Financial liabilities relating to IFRS 16 leases are initially measured at the present value of the lease payments still to be
\n
paid.
\n
With respect to some of its leases, the Group has the option to extend or terminate them. The Group applies judgement
\n
when assessing whether it is reasonably certain to exercise renewal options. That said, the Group considers all relevant
\n
factors that may create an economic incentive to exercise the options to renew or terminate the lease. After the com-
\n
mencement date, the Group reassesses the lease term upon the occurrence of a significant event or a significant change
\n
in circumstances that are within its control and affect whether it can exercise (or not exercise) an option to renew or
\n
terminate the lease (e.g. investments in leasehold improvements or specific material changes to the leased asset). In
\n
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a
\n
change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to de-
\n
termine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
\n
\n \n
\n
The exercise price for the underlying asset, in the presence of purchase options, and/or the contractual value of the
\n
penalties, in the case of early termination of the lease, are included in the value of the financial liability only if their
\n
exercise is reasonably certain.
\n
Following initial recognition, financial liabilities relating to IFRS 16 leases are valued using the amortized cost method.
\n
The discount rate at which the lease payments that are still to be paid are discounted is called lessee\u2019s incremental bor-
\n
rowing rate and is equal to the interest rate the lessor would have paid if they had borrowed money to the value of the
\n
right of use, with payment terms similar to the contractual duration of the lease in a similar economic environment.
\n
Management estimated the discount rate by individual country, on the basis of the contractual duration and the total
\n
amount of the current \u201clease portfolios with similar characteristics\u201d.
\n
\n \n \n
\n \n
\n
vi.
\n
Impairment of assets
\n
At each reporting date, the Group reviews the carrying value of its tangible and intangible assets to verify whether there
\n
is any indication that they were subject to an impairment loss. If there are indications of impairment, the Group estimates
\n
the recoverable amount of the assets to calculate the related impairment loss. If it is not possible to estimate individually
\n
the recoverable amount of an asset, the Group estimates the recoverable value of the cash generating unit to which the
\n
asset belongs.
\n
Intangible assets with an indefinite useful life, including goodwill, are assessed on an annual basis or more frequently if
\n
there is an indication of possible impairment losses.
\n
Recoverable amount is the higher of fair value less costs of disposal and value in use. In calculating the value in use, the
\n
estimated future cash flows are discounted to their current value using a discount rate that reflects the current market
\n
values relating to money and the risks associated with the asset.
\n
If the recoverable amount of an asset (or of the CGU) is estimated to be lower than its carrying value, it is reduced to the
\n
lower recoverable amount. Impairment losses are immediately recognized in the income statement.
\n
If a depreciation has no longer a reason to exist, the carrying value of the asset (or of the CGU), excluding the goodwill, is
\n
increased to the new amount resulting from the estimate of its recoverable value, but not above the net carrying value
\n
that the asset would have had if the loss had not occurred. The restored value is recognized in the income statement.
\n
\n \n
\n \n \n
\n \n
\n \n
\n
vii.
\n
Non-current assets held for sale and discontinued operations
\n
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying
\n
value and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an
\n
asset (disposal group), excluding finance costs and income tax expense.
\n
Non-current assets (and disposal groups) are classified as held for sale when the Group expects that their carrying value
\n
will be recovered through sale rather than used in its operating activities. This condition is met only when the sale is
\n
highly probable, the asset (or group of assets) is held for immediate sale in its current condition, and Management has
\n
committed to the sale, which should occur within 12 months from the date of classification of this item.
\n
Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
\n
Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial
\n
position.
\n
Financial activities related to ceased or discontinued operations, net of tax effects, are recognized under one single item
\n
in the consolidated income statement, including the comparative data of the relevant period.
\n
\n \n
\n \n
\n \n \n
\n \n
\n
viii.
\n
Investments in associates
\n
Investments in associates are recognized according to the equity method, starting from the date of the significant influ-
\n
ence by the Group up to the time when this influence ceases to exist, as described in the previous paragraph \u201cConsolida-
\n
tion and translation principles\u201d.
\n
\n \n
\n \n \n
\n
ix.
\n
Financial instruments - initial recognition and subsequent measurement
\n
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
\n
instrument of another entity.
\n
\n \n
\n \n
\n \n
\n
Financial assets
\n
Initial recognition and measurement
\n
\n \n
Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other
\n
comprehensive income (OCI), and fair value through profit or loss.
\n
In line with IFRS 9, financial assets, which are represented by debt instruments (trade receivables, financial receivables,
\n
etc.), are classified on the basis of the business model (the way the Group manages financial assets in order to generate
\n
cash flows) and the contractual characteristics of the cash flows (the so-called SPPI test, \u201csolely payment of principal and
\n
interest\u201d), in one of the following categories:
\n
\u2022
\n
amortized cost, for the financial assets held with the aim of receiving the contractual cash flows which pass the SPPI
\n
test, since the cash flows represent solely payment of principal and interest; this category includes trade receivables,
\n
other operational receivables included in other current and non-current assets, and financial receivables included in
\n
other current and non-current financial assets;
\n
\n \n
\u2022
\n
fair value through shareholders\u2019 equity (FVOCI), for financial assets held with the aim of collecting cash flows, both
\n
contractual, which represent solely payments of principal and interest, and from sales. The changes in fair value sub-
\n
sequent to initial recognition are offset under OCI and are recycled to the income statement upon de-recognition;
\n
\u2022
\n \n
\n
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
\n
net changes in fair value recognised in the Income statement. This category mainly includes derivative instruments.
\n
\n \n
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow charac-
\n
teristics and the Group\u2019s business model for managing them.
\n \n
\n
With the exception of trade receivables that do not contain a significant financing component or for which the Group has
\n
applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial
\n
asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing
\n
component or for which the Group has applied the practical expedient are measured at the transaction price as disclosed
\n
in section (e) Revenue from contracts with customers.
\n
\n \n
The Group envisages, as per the provisions of the new IFRS 9, the treatment of non-strategic investments and investment
\n
funds shares at FVTPL; while other investments, which are considered strategic, are treated individually and, at the mo-
\n
ment, are all valued at FVTOCI.
\n \n
\n
Contingent consideration classified as an asset (or liability) that is a financial instrument and within the scope of IFRS 9
\n
Financial Instruments
\n
, is measured at fair value with the changes in fair value recognized in the income statement in
\n
accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is measured at fair value at
\n
each reporting date with changes in fair value recognized in income statement.
\n
\n \n \n
\n
Subsequent measurement
\n
\n \n
For purposes of subsequent measurement, financial assets are classified in four categories:
\n
\u2022
\n
Financial assets at amortized cost (debt instruments)
\n
\u2022
\n
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
\n
\u2022
\n
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon de-recog-
\n
nition (equity instruments)
\n
\u2022
\n
Financial assets at fair value through profit or loss
\n \n
\n
-
\n
Financial assets at amortized cost (debt instruments)
\n
Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are sub-
\n
ject to impairment. Gains and losses are recognized in income statement when the asset is derecognized, modified
\n
or impaired. The Group\u2019s financial assets at amortized cost includes trade receivables, loan to an associate and loan
\n
to a director included under other non-current financial assets. Trade receivables are originated in the ordinary course
\n
of business and held within a business model with the objective to hold the receivables in order to collect contractual
\n
cash flows that meet the \u2018solely payments of principal and interest\u2019 criterion under IFRS 9, therefore they are meas-
\n
ured at amortized cost using the effective interest rate method. The Group applies the amortized cost only for trade
\n
receivables with maturities greater than one year are discounted to present value.
\n
\n \n
\n
-
\n
Financial assets at fair value through OCI (debt instruments)
\n
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses
\n
or reversals are recognized in the income statement and computed in the same manner as for financial assets meas-
\n
ured at amortized cost. The remaining fair value changes are recognized in OCI. Upon de-recognition, the cumulative
\n
fair value change recognized in OCI is recycled to income statement. The Group\u2019s debt instruments at fair value
\n
through OCI includes investments in quoted debt instruments included under other non-current financial assets.
\n
\n
-
\n
Financial assets designated at fair value through OCI (equity instruments)
\n
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments des-
\n
ignated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presen-
\n
tation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and
\n
losses on these financial assets are never recycled to income statement. Dividends are recognized as other income in
\n
the income statement when the right of payment has been established, except when the Group benefits from such
\n
proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
\n
instruments designated at fair value through OCI are not subject to impairment assessment. The Group elected to
\n
classify irrevocably its non-listed equity investments under this category.
\n
\n
-
\n \n
\n
Financial assets at fair value through profit or loss
\n
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
\n
net changes in fair value recognized in the income statement. This category includes derivative instruments and listed
\n
equity investments which the Group had not irrevocably elected to classify at fair value through OCI. Dividends on
\n
listed equity investments are recognized as other income in the income statement when the right of payment has
\n
been established.
\n
\n \n \n
\n
De-recognition
\n
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
\n
derecognized (i.e., removed from the Group\u2019s consolidated statement of financial position) when:
\n
\u2022
\n
The rights to receive cash flows from the asset have expired
\n
Or
\n
\u2022
\n
The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
\n
received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement\u037e and either (a)
\n
the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred
\n
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
\n
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrange-
\n
ment, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither trans-
\n
ferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group
\n
continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Group also
\n
recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects
\n
the rights and obligations that the Group has retained.
\n
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
\n
original carrying amount of the asset and the maximum amount of consideration that the Group could be required to
\n
repay.
\n
\n \n \n
\n \n
\n \n
\n
Impairment
\n
Further disclosures relating to impairment of financial assets are also provided in the following notes:
\n
\u2022
\n
Disclosures for significant assumptions \u2013 refer to sub-paragraph \u2018xxi. - Significant accounting judgements, estimates
\n
and assumptions\u2019
\n
\u2022
\n
Trade receivables, including contract assets as described below
\n
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
\n
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract
\n
and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest
\n
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that
\n
are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default
\n
events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has
\n
been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected
\n
over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
\n
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the
\n
Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each re-
\n
porting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted
\n
for forward-looking factors specific to the debtors and the economic environment.
\n
\n \n
\n \n
\n \n
\n \n \n
\n \n
\n
Financial liabilities
\n
Initial recognition and measurement
\n
\n \n \n
\n
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
\n
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All fi-
\n
nancial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly
\n
attributable transaction costs. The Group\u2019s financial liabilities include trade and other payables, loans and borrowings
\n
including bank overdrafts and derivative financial instruments.
\n
\n \n \n
\n
Subsequent measurement
\n
\n \n
For purposes of subsequent measurement, financial liabilities are classified in two categories:
\n
\u2022
\n
Financial liabilities at fair value through profit or loss
\n
\u2022
\n
Financial liabilities at amortized cost (loans and borrowings)
\n
-
\n \n
\n
Financial liabilities at fair value through profit or loss
\n
Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as
\n
at fair value through profit or loss. Financial liabilities as at fair value through profit or loss also include derivative
\n
financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships
\n
as defined by IFRS 9. Financial liabilities designated upon initial recognition at fair value through profit or loss are
\n
designated at the initial date of recognition and only if the criteria in IFRS 9 are satisfied.
\n
\n \n \n
\n
-
\n
Financial liabilities at amortized cost (loans and borrowings)
\n
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\n
subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in income statement
\n
when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by
\n
taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The
\n
EIR amortization is included as finance costs in the income statement. This category generally applies to interest-
\n
bearing loans and borrowings.
\n
\n \n \n
\n
De-recognition
\n
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an
\n
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
\n
existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the orig-
\n
inal liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the
\n
income statement.
\n
\n \n
\n \n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Derivatives
\n
If derivative instruments are held for trading, they are measured at fair value while offset in the income statement; if the
\n
same are classified as effective hedging instruments against changes in the fair value of assets, liabilities, obligations
\n
assumed by the Group or related future cash flows, the Group applies hedge accounting.
\n
The Group, consistent with its internal policies, does not use financial instruments of a speculative nature (i.e. for trading).
\n
The Group uses financial derivative instruments mainly to hedge its exposure to exchange rate risk, interest rate risk and
\n
commodity price fluctuation risk.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
With reference to the classification of hedging transactions, the provisions of IFRS 9 require that:
\n
\u2022
\n
there is an economic relationship between the hedged item and the hedging instrument, such as to offset the related
\n
changes in value;
\n
\u2022
\n
this ability to offset is not undermined by the counterparty\u2019s credit risk level;
\n
a ratio between the hedged object and the hedging instrument (the so-called hedge ratio) is defined, in line with the
\n
derivatives risk management objectives, as part of the established derivatives risk management strategy, rebalancing
\n
where necessary. Changes in the derivatives risk management objectives, the termination of the above conditions to
\n
classify hedging transactions or rebalancing lead to the future, total or partial, discontinuation of the hedge.
\n
Financial instruments are recognized according to hedge accounting rules when:
\n
\u2022
\n
at the beginning of the hedging, the formal designation and documentation of the hedging exist;
\n
\u2022
\n
the hedging is assumed to be effective;
\n
\u2022
\n
the efficacy can be accurately measured and the hedging itself is highly effective during the relevant periods.
\n
The Group applies the cash flow hedge (IFRS 9), if the hedging relationship of changes in the cash flows originating from
\n
an asset or liability or a future transaction (hedged underlying element), that is deemed as likely to occur and that could
\n
have an impact on other comprehensive income and equity (cash flow hedge reserve), is formally documented.
\n
Changes in the value of the derivatives designated as fair value hedge and that are qualified as such, are recognized in
\n
the income statement, consistent with the changes in the fair value of the hedged assets and liabilities. If the derivative,
\n
even if created with non-speculative intent, does not meet all the formal requirements necessary to be designated in
\n
hedge accounting, the changes in fair value are recognized in the income statement, under the same line of the changes
\n
in hedged item.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n \n
\n
x.
\n
Inventories
\n
Inventories are recognized at the lesser value between purchase and production cost, according to the weighted average
\n
cost method and their net realizable value.
\n
Cost includes direct materials and direct labour general production costs and other costs incurred to bring inventories to
\n
their current location and condition.
\n
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
\n
and the estimated costs necessary to make the sale.
\n
Lastly, some obsolete stock provisions are calculated for materials, finished goods and spare parts that are considered
\n
obsolete or slow moving, keeping into account their expected future use and realizable value.
\n
\n \n \n
\n \n
\n \n
\n
xi.
\n
Cash and cash equivalents
\n
Cash and cash equivalents are recognized at their nominal value and include numeric values, i.e. those values that meet
\n
the requirement of on demand or very short-term availability, positive outcome and no costs of disposal with a maturity
\n
of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of
\n
changes in value. This item also includes the collection and payment instruments that have been subject to an account
\n
recording at the servicing financial institution as at the closing date of the period notwithstanding any subsequent differ-
\n
ent accounting records.
\n
\n \n
\n \n
\n \n \n
\n
xii.
\n
Treasury shares
\n
Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain
\n
or loss is recognised in Income statement on the purchase, sale, issue or cancellation of the Group\u2019s own equity instru-
\n
ments. Any gain or loss resulting from subsequent sales is recognised in equity.
\n
\n \n \n
\n
xiii.
\n
Provisions for risks and charges
\n
General
\n
The Group recognizes provisions for risks and charges when it has a present obligation, either legal or constructive, to-
\n
ward third parties arising from a past event, and it is likely that it will be necessary to use the resources of the Group to
\n
meet the obligation, and when it is possible to make an accurate estimate of the amount of the obligation itself.
\n
\n \n
\n \n
\n
When the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the
\n
reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense
\n
relating to a provision is presented in the income statement net of any reimbursement. If the effect of the time value of
\n
money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific
\n
to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a
\n
finance cost.
\n
Changes in estimates are reflected in the income statement of the period when the change has occurred.
\n
Disclosures about provisions follow IAS 37 (paragraph 92) which regulates and limits these indications when they might
\n
prejudice the company\u2019s position in any disputes.
\n \n
\n \n
\n \n
\n \n
\n
Uncertain tax position
\n
According to IFRIC23 \u2018Uncertainty over Income Tax Treatments\u2019 to clarify the accounting for uncertainties in income tax
\n
is applied.
\n
The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused
\n
tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12.
\n
In the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, an entity
\n
has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treat-
\n
ments, that it is used or plans to use in its income tax filling.
\n
If the entity concludes that it is probable that a particular tax treatment is accepted, the entity has to determine taxable
\n
profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment included
\n
in its income tax filings.
\n
If the entity concludes that it is not probable that a particular tax treatment is accepted, the entity has to use the most
\n
likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused
\n
tax losses, unused tax credits and tax rates. The decision should be based on which method provides better predictions
\n
of the resolution of the uncertainty.
\n
In case facts and circumstances changes, the entity shall reassess its judgements and estimates.
\n
\n \n
\n \n
\n \n
\n \n
Warranty provisions
\n
The Group provides warranties for general repairs of defects that existed at the time of sale, as required by law. Provisions
\n
related to these assurance-type warranties are recognized when the product is sold, or the service is provided to the
\n
customer. Initial recognition is based on historical experience. The estimate of warranty-related costs is revised annually.
\n
Restructuring provisions
\n
Restructuring provisions are recognized only when the Group has a constructive obligation, which is when: (i) there is a
\n
detailed formal plan that identifies the business or part of the business concerned, the location and number of employees
\n
affected, the detailed estimate of the associated costs, and the timeline; and (ii) the employees affected have been noti-
\n
fied of the plan\u2019s main features.
\n
\n \n \n
\n
xiv.
\n
Employment benefits
\n
Group companies provide post-employment benefits to staff, both directly and by contributing to external funds.
\n
The procedures for providing these benefits vary depending to the legal, fiscal and economic conditions in each country
\n
in which the Group operates.
\n
Employee benefits are accounted under the IAS 19 and IFRS 2.
\n
Group companies provide post-employment benefits through defined contribution and/or defined benefit plans.
\n
\n \n
\n
Post-employment benefits
\n
i. Defined benefit plans
\n
The Group\u2019s obligations and the annual cost reported in the income statement are determined by independent actuaries
\n
using the projected unit credit method.
\n
The net cumulative value of actuarial gains and losses is recorded directly in the statement of other comprehensive in-
\n
come and is not subsequently recognized in the income statement. The costs associated with an increase in the present
\n
value of the obligation, as the time for payment of the benefits draws nearer, are included under financial expenses.
\n
Service costs are posted to the income statement.
\n
The liability recognized represents the present value of the defined benefit obligation, less the present value of plan
\n
assets. If an amendment to the plan changes the benefits accruing from past service, the costs arising from past service
\n
are recognized in the income statement at the time the change to the plan is made. The same treatment is applied if
\n
there is a change to the plan that reduces the number of employees or that amends the terms and conditions of the plan
\n
(the treatment is the same, regardless of whether the final result is a profit or a loss).
\n
For defined benefit plans, remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, ex-
\n
cluding amounts included in net interest on the net defined benefit/contribution liability and the return on plan assets
\n
(excluding amounts included in net interest on the net defined benefit/contribution liability), are recognized immediately
\n
in the statement of financial position with a corresponding debit or credit to retained earnings through OCI in the period
\n
in which they occur. Remeasurements are not reclassified to income statement in subsequent periods.
\n
Past service costs are recognized in income statement on the earlier of:
\n
\u2022
\n
The date of the plan amendment or curtailment, and
\n
\u2022
\n
The date that the Group recognizes related restructuring costs
\n
Net interest is calculated by applying the discount rate to the net defined benefit/contribution liability or asset. The Group
\n
recognizes the following changes in the net defined benefit/contribution obligation under \u2018cost of sales\u2019, \u2018administration
\n
expenses\u2019 and \u2018selling and distribution expenses\u2019 in the consolidated income statement (by nature):
\n
\u2022
\n
Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
\n
settlements
\n
\u2022
\n
Net interest expense or income
\n
ii. Defined contribution plans
\n
Since the Group fulfils its obligations by paying contributions to a separate entity (a fund), with no further obligations,
\n
the company records its contributions to the fund in respect of employees\u2019 service, without making any actuarial calcu-
\n
lation.
\n
Where these contributions have already been paid at the reporting date, no liabilities are recorded in the financial state-
\n
ments.
\n \n
\n
Share-based payments
\n
Employees (including senior executives) of the Group receive remuneration in the form of share-based payments,
\n
whereby employees render services as consideration for equity instruments (equity-settled transactions).
\n
Equity-settled transactions
\n
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an ap-
\n
propriate valuation model.
\n
That cost is recognized in employee benefits expense, together with a corresponding increase in equity (other capital
\n
reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting
\n
period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date
\n
reflects the extent to which the vesting period has expired and the Group\u2019s best estimate of the number of equity instru-
\n
ments that will ultimately vest. The expense or credit in the income statement for a period represents the movement in
\n
cumulative expense recognized as at the beginning and end of that period. Service and non-market performance condi-
\n
tions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions
\n
being met is assessed as part of the Group\u2019s best estimate of the number of equity instruments that will ultimately vest.
\n
\n \n
\n \n
\n \n
\n
Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award,
\n
but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are
\n
reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service
\n
and/or performance conditions.
\n
No expense is recognized for awards that do not ultimately vest because non-market performance and/or service condi-
\n
tions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested
\n
irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or ser-
\n
vice conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized
\n
is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An addi-
\n
tional expense, measured as at the date of modification, is recognized for any modification that increases the total fair
\n
value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled
\n
by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately
\n
through profit or loss. The dilutive effect of outstanding options is reflected as additional share dilution in the computa-
\n
tion of diluted earnings per share.
\n
\n \n
\n \n \n
\n
xv.
\n
Grants
\n
Government grants, obtained against investments, are recognized in the income statement when the conditions for
\n
recognition are met (i.e. when there is reasonable certainty of recognition) as deferred income, over the period required
\n
to relate them to their respective costs.
\n
When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related
\n
asset.
\n
When the Group receives grants of non-monetary assets, the asset and the grant are recorded at nominal amounts and
\n
released to income statement over the expected useful life of the asset, based on the pattern of consumption of the
\n
benefits of the underlying asset by equal annual instalments.
\n
\n \n \n
\n \n
\n
xvi.
\n
Revenue and income
\n
\n \n
In order to recognize and measure revenue so as to faithfully represent the process of transferring goods and services to
\n
customers for an amount which reflects the expected consideration from the goods and services supplied, the Group
\n
applies a model consisting of five essential stages, as envisaged by IFRS 15: to identify the contract with the customer
\n
(stage 1); to identify the contractual obligations recognizing the goods or services which can be separated as separate
\n
obligations (stage 2); to determine the transaction price, i.e. the expected consideration (stage 3); to allocate the trans-
\n
action price to each obligation identified in the contract on the basis of the stand-alone sale price of each separable good
\n
or service (stage 4); to recognize revenue when the related performance obligation is satisfied, i.e. upon transfer of the
\n
good or service promised to the customer (stage 5). The transfer is considered completed when the customer obtains
\n
control of the good or service, which can happen at a point in time. The Group has generally concluded that it is the
\n
principal in its revenue arrangements, because it typically controls the goods or services before transferring them to the
\n
customer.
\n
In applying the aforementioned model, Ariston Group took into consideration the specific facts and circumstances mainly
\n
arising from the regulations in place in the various jurisdictions where the Group companies operate. The most important
\n
situations for the purposes of the consolidated financial statements refer mainly to the following revenue streams (stand-
\n
ard categories for contractual terms and conditions (T&C) with customers, which describe the nature, amount, timing
\n
and cash flows):
\n
\n \n
\n
Revenue stream
\n
\"Revenue stream\" description
\n
% Revenues
\n
2022
\n
% Revenues
\n
2021
\n
Professional
\n
Customers are mainly installers, medium-large distribu-
\n
tors and professionals in the field of Thermal Comfort.
\n
Standard T&Cs apply and the main performance obliga-
\n
tion is characterized by the sale of finished products in-
\n
cluding variable considerations too.
\n
The Group acts as principal.
\n
73%
\n
70%
\n
DIY (Do it yourself)
\n
Customers are large retailers. The main performance obli-
\n
gation is characterized by the sale of finished products
\n
and the variable considerations are significant.
\n
T&Cs are decided by the customer by means
\n
of annual framework agreements.
\n
The Group acts as principal.
\n
7%
\n
7%
\n
Business-to-business
\n
(B2B)
\n
The main performance obligation is characterized by the
\n
sale of components, burners and heating only for specific
\n
projects: e.g., for institutions (schools, hospitals, etc.).
\n
The Group acts as principal.
\n
8%
\n
9%
\n
Service
\n
Indirect service
\n
: maintenance and repair services offered
\n
through Technical Support to the end customer.
\n
Direct service
\n
: maintenance and repair services offered di-
\n
rectly to the end customer.
\n
Spare Parts
\n
: Related to Service activities (in PL reported as
\n
Net Revenue from Sales).
\n
The Group acts as principal.
\n
12%
\n
14%
\n
Total
\n
100%
\n
100%
\n
The revenue from the sale of goods under the IFRS15 follow the here listed paragraphs:
\n
\u2022
\n
Cut off: revenue is recognized at a point in time on the basis of the means of delivery agreed with the customer;
\n \n
\n
\u2022
\n
Cash discount: cash discount is considered as a net of revenue;
\n
\n \n
\u2022
\n
Rights of Return: the Group uses the expected value method to estimate the variable consideration given the large
\n
number of contracts that have similar characteristics. A refund liability is recognized for the goods that are expected
\n
to be returned. A right of return asset (and corresponding adjustment to cost of sales) is also recognized for the right
\n
to recover the goods from the customer;
\n \n
\n
\u2022
\n
Volume rebate: volume rebate is calculated on actual basis and accounted balancing the accounts receivable;
\n
\n \n
\u2022
\n
Payables to Customers: Payable to customers includes cash amounts that the Group pays or expects to pay to the
\n
customers. Payables to customers are recognized as net of revenue;
\n
\u2022
\n
Warranties: the Group typically provides warranties for general repairs of defects that existed at the time of sale, as
\n
required by law. These assurance-type warranties are accounted for as warranty provisions. The Group also provides
\n
a warranty beyond fixing defects that existed at the time of sale. These service-type warranties are sold either sepa-
\n
rately or bundled together with the sale of products. Revenue for bundled sales and service-type warranty comprise
\n
two performance obligations due to the fact that products and service-type warranty are both sold on a stand-alone
\n
basis and are distinct within the context of the contract or the business practice of the market where the Group
\n
operates. Using the relative stand-alone selling price method, a portion of the transaction price is allocated to the
\n
service-type warranty and recognized as a contract liability. Revenue for service-type warranties is recognized over
\n
the period in which the service is provided based on the time elapsed.
\n
The revenue from service under the IFRS15 are accounted at point in time as well as over the time. The former is accom-
\n
plished not under service maintenance contracts but for pure repair once not covered by warranty.
\n
Under service mainte-
\n
nance contracts, the Group offers customers the opportunity to sign either a one-year or multi-years service contracts,
\n
under which the Group undertakes to perform maintenance service and remedy certain defects that are not covered by
\n
the warranty provided. Service contracts are separate performance obligations and are met over time in accordance with
\n
IFRS 15. The amount received is therefore taken up as revenue over the term of the service contract.
\n
\n \n
\n
Assets and liabilities arising from rights of return
\n
Right of return assets
\n
A right-of-return asset is recognized for the right to recover the goods expected to be returned by customers. The asset
\n
is measured at the former carrying amount of the inventory, less any expected costs to recover the goods and any po-
\n
tential decreases in value. The Group updates the measurement of the asset for any revisions to the expected level of
\n
returns and any additional decreases in the value of the returned products.
\n
Refund liabilities
\n
A refund liability is recognized for the obligation to refund some or all of the consideration received (or receivable) from
\n
a customer. The Group\u2019s refund liabilities arise from customers\u2019 right of return. The liability is measured at the amount
\n
the Group ultimately expects it will have to return to the customer. The Group updates its estimates of refund liabilities
\n
(and the corresponding change in the transaction price) at the end of each reporting period.
\n
Regarding the use of significant assumptions to be referred to sub-paragraph \u2018
\n
Revenue recognition\u2019
\n
included in the para-
\n
graph \u2018
\n
Significant assumptions\u2019.
\n
\n \n \n
\n
xvii.
\n
Taxes
\n
Current income tax
\n
Current taxes are based on the taxable income for the year. The taxable income is different from the profit/loss recog-
\n
nized in the income statement since it excludes positive and negative items which are taxable or deductible in other years
\n
and it also excludes items that will never be taxable or deductible.
\n
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxa-
\n
tion authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
\n
enacted at the reporting date in the countries where the Group operates and generates taxable income.
\n
Current income tax relating to items recognized directly in equity is recognized in equity and not in the income statement.
\n
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
\n
regulations are subject to interpretation and establishes provisions where appropriate.
\n \n
\n
Deferred tax
\n
Deferred taxes are those that the Group expects to settle or recover based on the temporary differences between the
\n
carrying value of assets and liabilities and their corresponding tax values used for calculating taxable income. They are
\n
recognized using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable tem-
\n
porary differences, whereas deferred tax assets are recognized only if it is probable that there will be future taxable
\n
income against which deductible temporary differences can be used. Deferred tax assets and liabilities are not recognized
\n
if the temporary differences derive from goodwill or the initial recognition (not in business combinations) of other assets
\n
or liabilities in transactions that do not affect the profit (loss) for the year or the taxable income.
\n
In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint
\n
arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the
\n
temporary differences will not reverse in the foreseeable future.
\n
The carrying value of deferred tax assets is reviewed at each reporting date and impaired, if it is no longer probable that
\n
sufficient taxable income exists that can enable recovery of all or part of the assets.
\n
In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in
\n
joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differ-
\n
ences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences
\n
can be utilized.
\n
Deferred taxes are calculated at the tax rate that is expected to be applied when the asset is realized or the liability
\n
extinguished. Deferred taxes are recognized directly in the income statement, except for those related to items recog-
\n
nized directly under equity, in which case the deferred taxes are also recognized under equity.
\n
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off
\n
current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
\n
levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either
\n
\n \n
\n \n
\n \n
\n \n
\n
to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in
\n
each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recov-
\n
ered.
\n
\n \n
\n \n \n
\n
xviii.
\n
Earnings per share
\n
The basic earnings per share are calculated by dividing the portion of profit/loss attributable to the Group by the weighted
\n
average of the outstanding shares of the year.
\n
The diluted earnings per share are calculated keeping into account, both as regards the portion of profit/loss attributable
\n
to the Group and the above-mentioned weighted average, the impact deriving from the total subscription/conversion of
\n
all potential shares that may be issued through the exercise of outstanding options.
\n
\n \n \n
\n
xix.
\n
Dividends
\n
Dividends are recognised as changes in equity in the year when the Group\u2019s unconditional right to receive payment arises,
\n
that is when the shareholders\u2019 meeting approves the distribution of dividends.
\n
\n \n \n
\n
xx.
\n
Transactions in a foreign currency
\n
Should a company in the Group have a monetary item to be received or to be paid in regard to another foreign subsidiary,
\n
for which settlement is not planned nor is it likely that it may occur in the foreseeable future and is substantially part of
\n
the entity\u2019s net investment in this foreign operation, it is recognised in accordance with the provisions of IAS 21 (para-
\n
graphs 32 and 33). This envisages the treatment of the related differences in exchange rates recognised under the items
\n
of the statement of comprehensive income in the consolidated financial statements which include this foreign operation.
\n
\n \n \n
\n \n
\n \n
\n
xxi.
\n
Significant accounting judgements, estimates and assumptions
\n
The preparation of the Group\u2019s consolidated financial statements requires management to make judgements, estimates
\n
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
\n
disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjust-
\n
ment to the carrying amount of assets or liabilities affected in future periods.
\n
Judgements
\n \n
\n
Determining the lease term of contracts with renewal and termination options
\n
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
\n
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
\n
the lease, if it is reasonably certain not to be exercised. The Group has several lease contracts that include extension and
\n
termination options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exer-
\n
cise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive
\n
for it to exercise either the renewal or termination. After the commencement date, the Group reassesses the lease term
\n
if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not
\n
to exercise the option to renew or to terminate. The Group included the renewal period as part of the lease term for
\n
leases of plant and machinery with shorter non-cancellable period. Furthermore, the periods covered by termination
\n
options are included as part of the lease term only when they are reasonably certain not to be exercised.
\n
\n \n
Estimates and assumptions
\n
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
\n
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
\n
financial year, are described below. The Group based its assumptions and estimates on parameters available when the
\n
consolidated financial statements were prepared. Existing circumstances and assumptions about future developments,
\n
however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such
\n
changes are reflected in the assumptions when they occur.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Impairment of non-financial assets
\n
When the carrying amount of property, plant and equipment, investment property, intangible assets, right-of-use assets,
\n
goodwill and investments in associates/joint ventures exceeds its recoverable amount, which is the higher of the fair
\n
value less costs of disposal and the value in use, the assets are impaired. Such impairments are carried out in accordance
\n
with the provisions of IAS 36, as described in greater detail in note 2.1. In order to determine the recoverable amount,
\n
the Group generally adopts the value in use criterion. Value in use is based on the estimated future cash flows generated
\n
by the asset, discounted to their present value using a pre-tax discount rate that reflects the current market assessment
\n
of the time value of money and of the specific risks of the asset. Future cash flows used to determine value in use are
\n
based on the most recent business plan, approved by the management, containing forecasts for volumes, revenue, op-
\n
erating costs. These projections cover the next three years. For subsequent years, the assumption is the perpetual in-
\n
come. Nevertheless, possible changes in the underlying assumptions on which the calculation of such amounts is based
\n
could generate different recoverable amounts. The analysis of each group of non-financial assets is unique and requires
\n
management to use estimates and assumptions considered prudent and reasonable in the specific circumstances.
\n
\n \n \n
\n \n
\n \n
\n \n
\n
Provision for expected credit losses of trade receivables and contract assets
\n
The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
\n
based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography,
\n
and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group\u2019s
\n
historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with
\n
forward-looking information. For instance, if forecast economic conditions are expected to deteriorate over the next year
\n
which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted.
\n
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
\n
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
\n
The Group\u2019s historical credit loss experience and forecast of economic conditions may also not be representative of cus-
\n
tomer\u2019s actual default in the future. The information about the ECLs on the Group\u2019s trade receivables and contract assets
\n
is disclosed in \u2018Credit Risk\u2019 included in section \u20186.4 - Other information\u2019.
\n
\n \n
\n \n
\n \n
\n \n
\n \n \n
\n \n
\n \n
\n \n
Income taxes include all taxes based upon the taxable profits of the Group. Taxes on income are recognized in income
\n
statement except to the extent they relate to items recognized directly in equity or in other comprehensive income, in
\n
which case the related tax effects are recognized directly in equity or in other comprehensive income. Deferred taxes are
\n
calculated on temporary differences between the tax base of an asset or liability and the carrying amounts in the Consol-
\n
idated Financial Statements, Deferred tax assets relating to the carry-forward of unused tax losses are recognized to the
\n
extent it is probable future profits will be available against which they can be utilized. Current and deferred income tax
\n
assets and liabilities are offset when the income taxes are levied by the same taxation authority and where there is a
\n
legally enforceable right of offset. Deferred tax assets and liabilities are measured at the enacted or substantively enacted
\n
tax rates of the relevant tax jurisdictions that are expected to apply to taxable income during the period or periods in
\n
which the temporary differences reverse. Other taxes not based on taxable profits, such as property taxes and taxes on
\n
capital, are included in operating expenses.
\n
\n \n
\n \n \n
\n
Defined benefit plans (pension benefits)
\n
The cost of the defined benefit pension plan and other post-employment medical benefits and the present value of the
\n
pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions
\n
that may differ from actual developments in the future. These include the determination of the discount rate, future
\n
salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its
\n
long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
\n
reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appro-
\n
priate discount rate, management considers the interest rates of corporate bonds in currencies consistent with the cur-
\n
rencies of the post-employment benefit obligation with at least an \u2018AA\u2019 rating or above, as set by an internationally
\n
acknowledged rating agency, and extrapolated as needed along the yield curve to correspond with the expected term of
\n
the defined benefit obligation. The underlying bonds are further reviewed for quality. Those having excessive credit
\n
\n \n
\n \n
\n
spreads are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not rep-
\n
resent high quality corporate bonds. The mortality rate is based on publicly available mortality tables for the specific
\n
countries. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary
\n
increases and pension increases are based on expected future inflation rates for the respective countries.
\n
\n \n \n
\n
Fair value measurement of financial instruments
\n
When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be
\n
measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the
\n
discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but
\n
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations
\n
of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the
\n
reported fair value of financial instruments. Contingent consideration, resulting from business combinations, is valued at
\n
fair value at the acquisition date as part of the business combination. When the contingent consideration meets the
\n
definition of a financial liability, it is subsequently remeasured to fair value at each reporting date. The determination of
\n
the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting
\n
each performance target and the discount factor.
\n
\n \n \n
\n
Development costs
\n
The Group capitalises costs for product development projects. Initial capitalisation of costs is based on management\u2019s
\n
judgement that technological and economic feasibility is confirmed, usually when a product development project has
\n
reached a defined milestone according to an established project management model. In determining the amounts to be
\n
capitalised, management makes assumptions regarding the expected future cash generation of the project, discount
\n
rates to be applied and the expected period of benefits.
\n
\n \n \n
\n \n
\n
Revenue recognition - Estimating variable consideration for returns and volume rebates
\n
The Group estimates variable considerations to be included in the transaction price for the sale of goods with rights of
\n
return and volume rebates.
\n
The Group has developed a statistical model for forecasting sales returns. The model uses the historical return data of
\n
each product to come up with expected return percentages. These percentages are applied to determine the expected
\n
value of the variable consideration. Any significant changes in experience as compared to historical return pattern will
\n
impact the expected return percentages estimated by the Group.
\n
The Group\u2019s expected volume rebates are analysed on a per customer basis for contracts that are subject to a single
\n
volume threshold. Determining whether a customer will be likely entitled to rebate will depend on the customer\u2019s histor-
\n
ical rebates entitlement and accumulated purchases to date.
\n
The Group applied the statistical model for estimating expected volume rebates for contracts. The model uses the his-
\n
torical purchasing patterns and rebates entitlement of customers to determine the expected rebate percentages and the
\n
expected value of the variable consideration. Any significant changes in experience as compared to historical purchasing
\n
patterns and rebate entitlements of customers will impact the expected rebate percentages estimated by the Group.
\n
\n \n
\n \n \n
\n
Leases - Estimating the incremental borrowing rate
\n
The Incremental Borrowing Rate (IBR) is defined as the interest rate the lessee would incur to borrow under a secured
\n
loan with terms similar to those of the lease, with a similar security and in a similar economic environment. Such interest
\n
rate is identified through the Bloomberg database by applying the following relevant criteria to enhance the comparabil-
\n
ity:
\n
\u2022
\n
The credit rating;
\n
\u2022
\n
The term of the loan;
\n
\u2022
\n
The currency of denomination;
\n
\u2022
\n
The geographies (depending on the cases, countries or regions);
\n
\u2022
\n
The industry of the borrowing entity.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
In order to obtain statistically significant samples of comparable transactions, a flexibility in the above criteria shall be
\n
preserved and specific adjustments can be made to account for particular comparability factors. When the base rate is
\n
negative, a zero floor to the base rate is applied.
\n
For more information on leases, please see note 2.2 and 3.5.
\n
\n \n \n
\n
Contingent liabilities
\n
The Group trigger provisions once pending or threatened disputes or legal proceedings are considered as a probable
\n
event, for which there could be an outflow of funds with the amount reasonably estimated. If an outflow of funds be-
\n
comes possible but the amount cannot be estimated, the matter is disclosed in the notes to the Consolidated Financial
\n
Statements. The Group could be subject of legal and tax proceedings from various jurisdictions and for complex issues
\n
therefore eventually monitoring the status of pending legal proceedings consulting with matters\u2019 experts on regular basis.
\n
Due to the uncertainty inherent to in matters, it is difficult to predict the outflow of funds that could result from such
\n
disputes with any certainty.
\n
\n \n
Climate change
\n
In preparing the Consolidated Financial Statements the Group has considered the impact of climate change as requested
\n
by ESMA in its ECEP published in October 2021. Ariston Group pursues the definition of paradigms related to energy
\n
efficiency and to minimizing the environmental footprints. The Group is constantly evolving in order to be a forerunner
\n
about the negative environmental impacts.
\n
In the Consolidated Financial Statements, the Group does not have a material climate change impacts given that the
\n
Group has embraced a day-by-day handling dedicated to technological progress.
\n
In applying the Accounting Standards, the Group has considered the impacts arising from climate change. In particular,
\n
the Group, in performing the impairment activities of non-financial assets, has considered the economic and financial
\n
impacts resulting from the actions carried out by the Group in order to be in compliance with climate changes regulations.
\n
In performing the analysis on Inventory, the Group has considered for materials and products in stock the technological
\n
obsolescence which can arise from climate changes.
\n
\n \n
\n \n
\n \n
\n \n \n
\n \n
\n
5.
\n
Changes in accounting standards
\n
The accounting policies adopted in the preparation of the Consolidated Financial Statements as of 31 December 2022
\n
are consistent with those followed in the preparation of the Group\u2019s annual consolidated financial statements for the
\n
year ended 31 December 2021, except for the adoption of new standards effective as of 1 January 2022. The Group has
\n
not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
\n
Several amendments apply for the first time in 2022, but do not have an impact on the Consolidated Financial Statements
\n
of the Group.
\n
i.
\n
Summary of the new accounting standards adopted by the Group from 1 January 2022
\n
As from 1 January 2022 the following amendments of accounting standards have become applicable to the Group:
\n
\u2022
\n
Reference to the Conceptual Framework \u2013 Amendments to IFRS 3
\n
.
\n
The amendments replace a reference to a previous version of the IASB\u2019s
\n
Conceptual Framework
\n
with a reference to
\n
the current version issued in March 2018 without significantly changing its requirements. The amendments add an
\n
exception to the recognition principle of IFRS 3
\n
Business Combinations
\n
to avoid the issue of potential \u2018day 2\u2019 gains or
\n
losses arising for liabilities and contingent liabilities that would be within the scope of
\n
IAS 37 Provisions, Contingent
\n
Liabilities and Contingent Assets
\n
or IFRIC 21
\n
Levies
\n
, if incurred separately. The exception requires entities to apply the
\n
criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present
\n
obligation exists at the acquisition date. The amendments also add a new paragraph to IFRS 3 to clarify that contingent
\n
assets do not qualify for recognition at the acquisition date.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
\n \n
\n \n
\n
\u2022
\n
Property, Plant and Equipment: Proceeds before Intended Use \u2013 Amendments to IAS 16
\n
.
\n
The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any
\n
proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be
\n
capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling
\n
such items, and the costs of producing those items, in income statement.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
\u2022
\n
IFRS 9 Financial Instruments \u2013 Fees in the \u201910 per cent\u2019 test for derecognition of financial liabilities.
\n
The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified
\n
financial liability are substantially different from the terms of the original financial liability. These fees include only
\n
those paid or received between the borrower and the lender, including fees paid or received by either the borrower
\n
or lender on the other\u2019s behalf. There is no similar amendment proposed for IAS 39
\n
Financial Instruments: Recognition
\n
and Measurement
\n
.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group
\n
.
\n
\u2022
\n
IFRS 1 First-time Adoption of International Financial Reporting Standards \u2013 Subsidiary as a first-time adopter.
\n
The amendment permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure cumulative transla-
\n
tion differences using the amounts reported in the parent\u2019s consolidated financial statements, based on the parent\u2019s
\n
date of transition to IFRS if no adjustments were made for consolidation procedures and for the effects of the business
\n
combination in which the parent acquired the subsidiary. This amendment is also applied to an associate or joint
\n
venture that elects to apply paragraph D16(a) of IFRS 1.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
\u2022
\n
IAS 41 Agriculture \u2013 Taxation in fair value measurements
\n
.
\n
The amendment removes the requirement in paragraph 22 of IAS 41 that entities exclude cash flows for taxation
\n
when measuring the fair value of assets within the scope of IAS 41.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group as it did not have assets in
\n
scope of IAS 41 as at the reporting date.
\n
\u2022
\n
Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013 Amendments to IAS 37
\n
.
\n
The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include
\n
costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation
\n
of costs directly related to contract activities. General and administrative costs do not relate directly to a contract and
\n
are excluded unless they are explicitly chargeable to the counterparty under the contract.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
ii.
\n
Accounting standards, amendments and interpretations issued but not yet effective
\n
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of
\n
the Group\u2019s Consolidated Financial Statements are disclosed below. The Group intends to adopt these new and amended
\n
standards and interpretations, if applicable, when they become effective.
\n
\u2022
\n
Amendments to IAS 1: Classification of Liabilities as Current or Non-current
\n
The IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as
\n
current or non-current by clarifying:
\n
-
\n
What is meant by a right to defer settlement
\n
-
\n
That a right to defer must exist at the end of the reporting period
\n
-
\n
That classification is unaffected by the likelihood that an entity will exercise its deferral right
\n
-
\n
That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a
\n
liability not impact its classification.
\n
These amendments are effective on or after 1 January 2023. The amendments are not expected to have a material
\n
impact on the Group.
\n
\u2022
\n
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2
\n
\n
In February 2021 the IASB issued amendments to IAS 1
\n
Presentation of Financial Statements
\n
and IFRS
\n
Practice State-
\n
ment 2: Disclosure of Accounting policies
\n
which require companies to disclose their material accounting policy infor-
\n
mation rather than their significant accounting policies and provide guidance on how to apply the concept of materi-
\n
ality to accounting policy disclosures.
\n
These amendments are effective on or after 1 January 2023. The amendments are not expected to have a material
\n
impact on the Group.
\n
\u2022
\n
Definition of Accounting Estimates - Amendments to IAS 8
\n
In February 2021 the IASB issued amendments to IAS 8
\n
Accounting Policies, Changes in Accounting Estimates and
\n
Errors: Definition of Accounting Estimates
\n
which clarify how companies should distinguish changes in accounting pol-
\n
icies from changes in accounting estimates.
\n
These amendments are effective on or after 1 January 2023. The amendments are not expected to have a material
\n
impact on the Group.
\n
\u2022
\n
IFRS 17 - Insurance Contracts
\n
In May 2017 the IASB issued IFRS 17
\n
Insurance Contracts
\n
, which establishes principles for the recognition, measure-
\n
ment, presentation and disclosure of insurance contracts issued as well as guidance relating to reinsurance contracts
\n
held and investment contracts with discretionary participation features issued. In June 2020 the IASB issued amend-
\n
ments to IFRS 17 aimed at helping companies implement IFRS 17 and make it easier for companies to explain their
\n
financial performance.
\n
The new standard and amendments are effective on or after 1 January 2023. This accounting standard does not apply
\n
to the Group.
\n
\u2022
\n
Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12
\n
In May 2021, the Board issued amendments to IAS 12, which narrow the scope of the initial recognition exception
\n
under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary
\n
differences.
\n
The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative
\n
period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset
\n
(provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all de-
\n
ductible and taxable temporary differences associated with leases and decommissioning obligations.
\n
The Group is currently assessing the impact of the amendments.
\n
\u2022
\n
Lease Liability in a Sale and Leaseback \u2013 Amendments to IFRS 16
\n
In September 2022, the International Accounting Standards Board (IASB) has issued 'Lease Liability in a Sale and Lease-
\n
back (Amendments to IFRS 16)' with amendments that clarify how a seller-lessee subsequently measures sale and
\n
leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale.
\n
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) requires a seller-lessee to subsequently measure
\n
lease liabilities arising from a leaseback in a way that it does not recognise any amount of the gain or loss that relates
\n
to the right of use it retains. The new requirements do not prevent a seller-lessee from recognising in income state-
\n
ment any gain or loss relating to the partial or full termination of a lease.
\n
The new standard and amendments are effective on or after 1 January 2024. The amendments are not expected to
\n
have a material impact on the Group.
\n
\n
6.
\n
Disclosure to the Financial Statements
\n
This section details the results and performance for the period ended 31 December 2022.
\n
6.1
\n
Income statement
\n \n
\n \n
\n
Note 1.1 \u2013 Revenue and Income
\n
During 2022, the Group recorded revenue of \u20ac 2,378.8 million, compared to \u20ac 1,987.3 million in the previous year, with
\n
an increase of \u20ac 391.5 million (+19.7%).
\n
The increase arises from organic growth of the Group (+9.0%) and from a perimeter variation related to the business
\n
combination with Chromagen group concluded in January 2022.
\n
The Revenue item can be broken down as follows:
\n
Revenue and Income
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Revenue from sales
\n
2,223.7
\n
1,848.0
\n
Revenue from services
\n
140.5
\n
126.9
\n
Other revenue
\n
14.6
\n
12.5
\n
Net revenue
\n
2,378.8
\n
1,987.3
\n
Other revenue and income
\n
42.7
\n
34.1
\n
Total
\n
2,421.5
\n
2,021.5
\n \n
\n \n
\n
\u201cOther revenue and income\u201d totalled \u20ac 42.7 million at 31 December 2022 and \u20ac 34.1 million at 31 December 2021.
\n
\u201cOther revenue and income\u201d is represented by items that do not directly refer to the production activities of the Group
\n
but are all the same connected to the core business.
\n
They included income related to no longer due payables, the gains on the disposal of fixed assets and other income.
\n
At 31 December 2022, they totalled \u20ac 42.7 million, an increase of \u20ac 8.6 million compared to the same period of previous
\n
year, mainly due to contingent gains for differences between accrual made in previous periods and the costs actually
\n
occurred.
\n
\n \n
\n \n \n
\n
Revenue by business line
\n
Thermal Comfort
\n
. Serves the Group's two main business categories, Hot Water and Heating, and represents the Group's
\n
largest division, recording net revenue of \u20ac 2,187.4 million, or 92.0% of total revenue, in 2022 compared to \u20ac 1,807.0
\n
million, or 90.9%, in 2021, up \u20ac 380.4 million or 21.1% (of which 13.6% organic and foreign exchange impact). The Thermal
\n
Comfort division stood out for the steady growth of its European markets and all the key markets of the other geograph-
\n
ical areas.
\n
Components
\n
. Recorded net revenue of \u20ac 95.5 million for 2022, or 4.0% of total net revenue, compared to \u20ac 85.8 million,
\n
or 4.3%, in 2021. The increase in net revenue by \u20ac 9.7 million or 11.3% was driven by the professional business and the
\n
price increase on domestic business.
\n
Burners
\n
. Recorded net revenue of \u20ac 95.9 million for 2022, or 4.0% of total revenue, compared to \u20ac 94.6 million, or 4.8%
\n
of total revenue, for 2021, up \u20ac 1.3 million or 1.4%. The substantial stability is due to the growth in some key markets
\n
such as Germany and Netherlands that balanced the reduction in Russia and China.
\n
\n \n
Net revenue by geographical area
\n
Europe
\n
. Represents the Group's largest market, recording net revenue of \u20ac 1,537 million for 2022, or 64.6% of total
\n
revenue, compared to \u20ac 1,323 million, or 66.5%, in 2021, up \u20ac 214 million or 16.2% (of which 15.8% organic and foreign
\n
exchange impact). The increase was mainly driven by the growth in renewable and high-efficiency products in some im-
\n
portant markets such as Poland, Italy, and others Eastern European markets.
\n
\n \n
\n \n
\n \n
\n \n
\n
Asia, Pacific & MEA
\n
. Represents the second largest market for the Group, recording net revenue of \u20ac 542 million for
\n
2022, or 22.8% of total revenue, compared to \u20ac 385 million, or 19.4%, in 2021, up \u20ac 157 million or 40.6% (of which 7.5%
\n
organic and foreign exchange impact). The organic increase was mainly driven by a good performance on the water
\n
heater market in Indonesia, Vietnam and India.
\n
Americas
\n
. Represents the Group's third largest market and reported net revenue of \u20ac 300 million for 2022, or 12.6% of
\n
total revenue, compared to \u20ac 280 million, or 14.1%, in 2021, up \u20ac 20 million, or 7.4% (of which 6,7% organic and foreign
\n
exchange impact). The increase was mainly due to a good performance on the heating market (US and Canada).
\n
\n \n
\n \n \n
\n \n
\n
Note 1.2 \u2013 Raw materials, consumables and goods for resale
\n
At 31 December 2022, the purchase cost of \u201cRaw materials, consumables and goods for resale\u201d amounted to \u20ac 1,243.3
\n
million, increased by \u20ac 255.3 million compared with the same period of the previous year.
\n
The trend in purchases and the change in inventories highlight an increase in the average percentage of raw materials
\n
consumed to revenue, a percentage which, from 44.3% in December 2021, to 48.4%, where with the decrease in prices
\n
for steel, polypropylene, copper, polyurethane, the Group suffers a counter effect with the price increase on electric and
\n
electronic components.
\n
Note 1.3 \u2013 Services
\n
\u201cServices\u201d amounted to \u20ac 481.3 million versus \u20ac 433.1 million at December 2021, increased by \u20ac 48.2 million, and can be
\n
detailed as follows:
\n
Services
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Logistics and transport
\n
158.1
\n
121.7
\n
Sub-contracted work and maintenance
\n
77.3
\n
108.2
\n
Advertising and promotion
\n
41.2
\n
37.4
\n
Technical support
\n
34.1
\n
18.4
\n
Bonuses and commissions
\n
31.7
\n
28.3
\n
Utilities
\n
29.6
\n
20.9
\n
Consulting services
\n
28.6
\n
29.8
\n
Rental and lease expenses
\n
19.8
\n
15.9
\n
Travel expenses
\n
14.8
\n
9.6
\n
Interoffice services
\n
12.5
\n
11.3
\n
Insurance
\n
10.0
\n
7.5
\n
Directors and Statutory Auditors' Fees
\n
7.6
\n
8.1
\n
Other services
\n
16.0
\n
15.8
\n
Total
\n
481.3
\n
433.1
\n
During 2022 the Group\u2019s ongoing growth in the various sectors of Climate Solutions impacted the variable costs con-
\n
nected to sales and production, with an increase mainly in \u201cLogistics and transport\u201d of \u20ac 36.4 million and \u201cUtilities\u201d of \u20ac
\n
8.7 million, both effects are driven by price increases.
\n
The acquired Chromagen Group added service costs for \u20ac 25.1 million.
\n
\n \n
\n \n
\n \n
\n
Note 1.4 \u2013 Personnel
\n
A breakdown of personnel costs by nature is shown in the table below:
\n
Personnel
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Wages and salaries
\n
362.5
\n
322.7
\n
Social security costs
\n
77.2
\n
71.5
\n
Provision for Employees severance indemnity
\n
7.2
\n
6.4
\n
Provision for retirement benefits and other funds
\n
-1.0
\n
-0.4
\n
Other personnel costs
\n
13.2
\n
12.1
\n
Total
\n
459.0
\n
412.3
\n
In December 2022, \u201cPersonnel\u201d amounted to \u20ac 459.0 million, up by \u20ac 46.7 million compared with the same period of the
\n
previous year, due to the normal trend in salary inflation (fixed and variable components) in the various countries where
\n
the Group operates, also following the organisational changes and perimeter variation.
\n
\u201cWages and salaries\u201d totalled \u20ac 362.5 million at 31 December 2022 and \u20ac 322.7 million at 31 December 2021.
\n
\u201cProvision for Employees severance indemnity\u201d and \u201cProvision for retirement benefits and other funds\u201d include the net
\n
impact of accruals and releases for the period.
\n \n
\n
At 31 December 2022, the Group\u2019s workforce increased from 7,858 (workforce 2021 restated owing to a different calcu-
\n
lation method used in 2022) at 31 December 2021 to 7,975.
\n
The headcount by category of employee as follow:
\n
Headcount
\n
31.12.2022
\n
31.12.2021
\n
Average
\n
Delta
\n
(number of people)
\n
Managers and white collars
\n
4,059
\n
3,849
\n
3,954
\n
210
\n
Blue collars
\n
3,916
\n
4,009
\n
3,963
\n
-93
\n
Total
\n
7,975
\n
7,858
\n
7,917
\n
117
\n
At 31 December 2022, the number of employees was 7,975 of whom 1,847 were based in Italy, 5,834 were based all
\n
around the world and 294 were based in the Netherlands.
\n
\n \n
\n \n \n
\n \n
\n
Note 1.5 \u2013 Provisions
\n
During 2022, \u201cProvisions\u201d were recognised for \u20ac 14.0 million versus \u20ac 19.7 million in the same period of 2021. In detail,
\n
the provisions were as follow:
\n
Provisions
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Product warranty provision
\n
11.1
\n
10.5
\n
Provision for installation
\n
3.4
\n
3.0
\n
Provision for restructuring
\n
0.6
\n
1.6
\n
Provision for legal disputes
\n
-0.4
\n
2.2
\n
Bad debt provision
\n
-0.6
\n
0.6
\n
Other provisions
\n
-0.1
\n
1.7
\n
Total
\n
14.0
\n
19.7
\n
The total amount is basically in line with the same period of the previous year.
\n
For further details about movements in the period, refer to \u2018Note 2.9 \u2013 Trade Receivables\u2019 for \u2018Bad Debt provision\u2019 and
\n
\u2018Note 3.3 - Non-Current Provisions\u2019.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Note 1.6 \u2013 Other operating expenses
\n
\u201cOther operating expenses\u201d amounted to \u20ac 30.4 million, versus \u20ac 27.3 million of the same period of the previous year,
\n
and can be detailed as follows:
\n
Other operating expenses
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Non-income tax and other levies
\n
10.8
\n
8.5
\n
Non periodic losses
\n
8.6
\n
8.0
\n
Concession rights and other
\n
2.6
\n
2.9
\n
Office supplies and printing
\n
1.9
\n
2.0
\n
Subsidies and contributions
\n
0.9
\n
0.7
\n
Losses on receivables
\n
0.9
\n
1.6
\n
Losses on assets
\n
0.9
\n
0.4
\n
Other operating expenses
\n
3.9
\n
3.4
\n
Total
\n
30.4
\n
27.3
\n
This item includes all ordinary operating expenses that cannot be recognised under other items and in the \u201cNon periodic
\n
losses\u201d the difference between accruals made in previous periods and the costs actually incurred.
\n
\n \n
\n \n
\n \n
\n \n \n
\n
Note 1.7 \u2013 Operating profit
\n
In December 2022 \u201cOperating profit\u201d, amounted to \u20ac 193.7 million compared to \u20ac 171.2 million as of December 2021.
\n
The significant increase is explained by the above detailed variances.
\n
\n \n \n
\n \n
\n \n
\n \n
\n
Note 1.8 \u2013 Financial income
\n
In 2022, \u201cFinancial income\u201d amounted to \u20ac 6.0 million, which is a better result than the previous year, when the same
\n
item amounted to \u20ac 4.5 million. The item is as follows:
\n
Financial income
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Interest income from bank
\n
2.9
\n
1.6
\n
State Green Programmes
\n
2.2
\n
2.3
\n
Employee benefits
\n
0.6
\n
0.3
\n
Other financial income
\n
0.3
\n
0.2
\n
Total
\n
6.0
\n
4.5
\n
The year-on-year change was largely attributable to the item \u201cInterest income from bank\u201d, resulting from an increase in
\n
short-term liquidity investment. The other items making up the total were largely unchanged.
\n
\n \n
\n \n \n
\n \n
\n
Note 1.9 \u2013 Financial expense
\n
\u201cFinancial Expense\u201d amounted to \u20ac 15.7 million at the end December 2022 versus \u20ac 12.4 million realized in 2021. This
\n
line item can be detailed as follows:
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Financial expense
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Interest and other expenses due to bank
\n
10.3
\n
7.7
\n
Leases
\n
1.9
\n
1.4
\n
Put and Call
\n
1.4
\n
2.4
\n
Employee benefits
\n
1.4
\n
0.6
\n
Other financial expense
\n
0.7
\n
0.3
\n
Total
\n
15.7
\n
12.4
\n
Compared to the previous year, \u201cFinancial Expense\u201d increased by \u20ac 3.3 million, mainly due to \u201cInterest and other expenses
\n
due to bank\u201d which are also reflecting the impact generated by the new debt loan signed in 2022.
\n
\n \n
\n \n
\n \n
\n \n \n
\n
Note 1.10 \u2013 Exchange rate gains/losses
\n
\u201cExchange rate gains/losses\u201d showed a negative result of \u20ac 8.9 million, which can be broken down as follows:
\n
Exchange rate gains/losses
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Exchange rate gains
\n
43.2
\n
24.5
\n
Exchange rate losses
\n
-52.1
\n
-34.7
\n
Unrealised exchange rate gains
\n
7.5
\n
17.0
\n
Unrealised exchange rate losses
\n
-7.5
\n
-2.7
\n
Total
\n
-8.9
\n
4.1
\n
\u201cExchange rate gains/losses\u201d include the monetary changes on the accounting entries that were realised at the end of
\n
the reporting period; \u201cUnrealised exchange rate gains\u201d and \u201cUnrealised exchange rate losses\u201d include the monetary
\n
changes that are not yet realised because they refer to transactions that were not closed at the end of the reporting
\n
period.
\n
The result for the period relating to realised and unrealised exchange differences was mostly negatively affected by the
\n
devaluation of Argentine peso and Nigerian naira against US dollar and Mexican peso against the Euro.
\n
\n \n \n
\n \n
\n
\u00a0
\n \n
\n
Note 1.11 \u2013 Profit (loss) on investments
\n
The item \u201cProfit (loss) on investments\u201d was positive for \u20ac 4.7 million, up by \u20ac 6.6 million compared with the previous year,
\n
mainly due to the remeasuring of the value of obligations relating to Put and Call options connected to acquisitions, with
\n
the recognition in the income statement of any valuation differences.
\n
As at 31 December 2022, the amount equal to \u20ac 4.9 million is mainly due to the Put and Call option execution of HTP
\n
Comfort Solutions LLC, now known as Ariston Thermo USA LLC. Refer to \u2018Note 3.13 - Other current liabilities\u2019 for further
\n
explanation.
\n
\n \n
\u00a0
\n
\n \n
\n \n \n
\n
Note 1.12 \u2013 Taxes
\n
Tax expense (income) and the related profit before tax for the years ended as at 31 December 2022 and 2021 consisted
\n
of the following:
\n
\n \n
\n
Taxes
\n
2022
\n
2021
\n
Delta
\n
(in \u20ac million)
\n
Profit before taxes
\n
179.8
\n
165.4
\n
14.4
\n
Current taxes
\n
41.3
\n
54.7
\n
-13.4
\n
Deferred taxes
\n
-1.7
\n
-25.6
\n
23.9
\n
Total taxes
\n
39.5
\n
29.1
\n
10.4
\n
The 2022 current taxes show a decrease of \u20ac 13.4 million compared to 2021 current taxes. This is due to the fact that
\n
2021 current taxes were negatively impacted by the 3% substitute tax arising from the revaluation of tangible and intan-
\n
gible assets carried out in Italy for Local GAAP and tax purposes pursuant to art. 110 of the Law Decree no. 104/2020,
\n
converted in Law no. 126/2020 equal to \u20ac 19.4 million. Without the 2021 negative impact, current taxes show an increase
\n
of \u20ac 6.0 million mainly due to the increase of the profit before taxes. Current taxes also include an amount of \u20ac 1.1 million
\n
of taxes related to prior years.
\n
The reduction of \u20ac 23.9 million in deferred tax assets is mainly due to the impact of the revaluation of tangible and
\n
intangible assets carried out in Italy for Local GAAP and tax purposes in the 2021 financial statements. The revaluation
\n
and its related tax effects had a positive net impact on deferred taxes equal to \u20ac 29.2 million in 2021. Deferred tax liabil-
\n
ities also include an amount of \u20ac1.2 million related to prior years.
\n
Ariston Holding N.V. is incorporated in the Netherlands but is a tax resident of Italy. The reconciliation of the differences
\n
between the theoretical income taxes at the parent local rate and the total income taxes is presented based on the Italian
\n
local corporation income tax rate in force in 2022 of 24%. A reconciliation of Ariston\u2019s income tax expense for the years
\n
ended as at 31 December 2022 is as follows:
\n
Effective tax rate reconciliation
\n
2022
\n
%
\n
(in \u20ac million)
\n
Taxes at nominal Tax Rate
\n
43.2
\n
24.0%
\n
Foreign income taxed at different rates
\n
-3.5
\n
-1.9%
\n
Deferred taxes not recognized and write down
\n
2.1
\n
1.2%
\n
Italian IRAP
\n
5.5
\n
3.1%
\n
Recognition or use of previously unrecognized DTA
\n
-1.6
\n
-0.9%
\n
Permanent differences
\n
-1.7
\n
-1.0%
\n
Italian revaluation
\n
-7.2
\n
-4.0%
\n
Prior year taxes
\n
2.3
\n
1.3%
\n
Other
\n
0.5
\n
0.3%
\n
Effective Taxes Charge
\n
39.5
\n
22.0%
\n
For comparative purposes, here below is shown a reconciliation of Ariston\u2019s income tax expense for the year ended as at
\n
31 December 2021:
\n
Effective tax rate reconciliation
\n
(in million \u20ac)
\n
2021
\n
%
\n
Taxes at nominal Tax Rate
\n
39.7
\n
24.0%
\n
Revaluation effect
\n
-14.5
\n
-8.8%
\n
IRAP
\n
5.0
\n
3.0%
\n
Tax benefits recorded in Italy
\n
-2.0
\n
-1.2%
\n
Foreign income taxed at different rates
\n
-1.8
\n
-1.1%
\n
Net Deferred taxes not recognized on losses
\n
1.4
\n
0.8%
\n
Other
\n
1.4
\n
0.9%
\n
Effective Taxes
\n
29.1
\n
17.6%
\n
\n \n
\n
The 2022 effective tax rate is positively impacted by the on-going net benefit connected to the revaluation of tangible
\n
and intangible assets carried out for both Local GAAP and tax purposes in Italy in 2021. In addition to the initial positive
\n
impact of the revaluation accrued in the 2021 financial statements and equal to the expected tax benefit for the first five-
\n
year business plan, in the 2022 financial statement the expected benefit for the additional year of the new five-year
\n
business plan period has been recognized positively impacting the tax rate. The on-going net benefit connected to the
\n
revaluation for the 2022 financial year is equal to \u20ac 7.2 million or to 4% in terms of tax rate.
\n
Among the main drivers of the tax rate, IRAP, the Italian local business tax, negatively impacted the tax rate for 3.1% and
\n
the tax rate differential deriving from the nominal differential in the various jurisdiction in which the Group operates
\n
positively impacted the tax rate for 1.9%.
\n
\n \n \n
\n
Note 1.13 \u2013 Basic and diluted earnings per share
\n
Basic earnings per share are determined as the ratio of the Group\u2019s portion of net profits for the year to the weighted
\n
average number of ordinary shares outstanding during the year. The Group\u2019s treasury shares are included in this calcula-
\n
tion for year 2022. Diluted earnings per share are determined taking the potential effect resulting from options allocated
\n
to beneficiaries of dilutive stock option plans into account in the calculation of the number of outstanding shares.
\n
Basic earnings per share at 31 December 2022 amounted to \u20ac 0.43 and are calculated by dividing the net profit for the
\n
year attributable to the ordinary shareholders of the Parent Company, of \u20ac 140.3 million, by the number of total shares
\n
\u2013 ordinary and multiple voting \u2013 outstanding during the period, that is
\n
329,827,838.
\n
Diluted earnings per share amounted to \u20ac 0.42 and are calculated by dividing the net profit for the year attributable to
\n
the ordinary shareholders of the Parent Company, of \u20ac 140.3 million, by the number of total shares that is 330,959,027.
\n
Basic and diluted earnings per share are calculated as shown in the table below.
\n
2022
\n
2021
\n
Net profit attributable to ordinary shareholders
\n
\u20ac million
\n
140.3
\n
136.5
\n
Weighted average of ordinary shares outstanding
\n
number
\n
329,827,838
\n
293,140,244
\n
Basic earnings per share
\n
\u20ac
\n
0.43
\n
0.47
\n
Net profit attributable to ordinary shares outstanding net of dilution
\n
\u20ac million
\n
140.3
\n
136.5
\n
Weighted average of ordinary shares outstanding
\n
number
\n
329,827,838
\n
293,140,244
\n
Potential shares to be issued for LTI plan
\n
number
\n
1,131,189
\n
2,329,735
\n
Weighted average of ordinary shares outstanding net of dilution
\n
number
\n
330,959,027
\n
295,469,979
\n
Diluted earnings per share
\n
\u20ac
\n
0.42
\n
0.46
\n
\n \n
Atypical or unusual transactions
\n
During the year 2022, Ariston Group did not undertake any atypical or unusual transactions.
\n
\n
6.2
\n
Statement of financial position - Assets
\n \n
\n \n
\n \n
\n
Note 2.1 \u2013 Intangible assets
\n
At 31 December 2022, \u201cIntangible assets\u201d amounted to \u20ac 442.6 million, increased by a net \u20ac 34.8 million compared to 31
\n
December 2021, net of the amortisation expense for the period of \u20ac 24.2 million, in addition to other changes.
\n \n
\n
The amortisation expense for the period is recognised under the appropriate item in the income statement.
\n
Changes during the period are shown in the table below:
\n
Intangible assets
\n
Goodwill
\n
Other int. assets
\n
Total
\n
(in \u20ac million)
\n
Net value
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
294.8
\n
212.2
\n
-99.2
\n
113.0
\n
507.0
\n
-99.2
\n
407.8
\n
Perimeter variation
\n
13.4
\n
13.6
\n
-2.2
\n
11.4
\n
27.0
\n
-2.2
\n
24.9
\n
Increases
\n
0.0
\n
21.0
\n
0.0
\n
21.0
\n
21.0
\n
0.0
\n
21.0
\n
Decreases
\n
0.0
\n
-0.7
\n
0.0
\n
-0.7
\n
-0.7
\n
0.0
\n
-0.7
\n
Remeasurements and Impairment
\n
0.0
\n
3.8
\n
-3.8
\n
0.0
\n
3.8
\n
-3.8
\n
0.0
\n
Amortisation
\n
0.0
\n
0.0
\n
-24.2
\n
-24.2
\n
0.0
\n
-24.2
\n
-24.2
\n
Exchange rate effect
\n
8.2
\n
3.7
\n
-1.1
\n
2.6
\n
11.9
\n
-1.1
\n
10.8
\n
Other
\n
-3.8
\n
4.1
\n
2.7
\n
6.8
\n
0.3
\n
2.7
\n
3.0
\n
Total changes
\n
17.9
\n
45.5
\n
-28.6
\n
16.9
\n
63.4
\n
-28.6
\n
34.8
\n
As at 31.12.2022
\n
312.7
\n
257.7
\n
-127.8
\n
129.9
\n
570.4
\n
-127.8
\n
442.6
\n
\n \n
The net total amount of the goodwill was \u20ac 312.7 million, versus \u20ac 294.8 million at 2021 year-end, and shows a change
\n
largely due to:
\n
-
\n
Goodwill arising from the business combination with Chromagen. The total is equal to \u20ac 13.4 million. Refer to
\n
\u2018Note 2.1.1 \u2013 Business combinations\u2019 for further details.
\n
\n \n \n
\n
-
\n
Write-down of the \u201cOther intangible assets\u201d for \u20ac 3.8 million is related to the acquisition of Kesselheld GMBH,
\n
acquired by Ariston Group in 2020. The write-down is due to the ceasing of its current core activity of generating,
\n
mediating and approving orders and leads for heating installers and manufacturers. There is a plan to modify
\n
the core activity of the subsidiary. This amount was reclassified from \u201cGoodwill\u201d to \u201cOther intangible assets\u201d.
\n
\n \n \n
\n
-
\n
The changes in exchange rates, positive for \u20ac 8.2 million.
\n
The total amount of goodwill recognised in the statement of financial position is not amortised but is subject at least
\n
annually to an impairment test (together with the other intangible and tangible assets) to assess its recoverability, as
\n
envisaged by IAS 36.
\n
Therefore, the goodwill has been allocated to the cash generating units (CGU) from which future economic benefits re-
\n
lated to the acquisition are expected.
\n
Consequently, at 31 December 2022, the impairment test was carried out as described hereinafter.
\n \n
\n
Impairment test
\n
In compliance with IAS 38 and IAS 36 at least on a yearly basis the Group verifies the recoverable value of intangible assets
\n
with indefinite life (included Trademarks), the values were tested at aggregate level based on the values allocated to the
\n
three cash-generating units (CGUs), identified as the lowest level at which the Goodwill is monitored by the Group and is
\n
considered appropriate, given the synergies and efficiencies obtained.
\n
The reference CGUs are the three divisions within a unique segment unit of reporting: Thermal Comfort (TC), Burners
\n
(BUR), and Components (COM).
\n
In line with previous years, the Group has considered the long-term business plan, that includes the latest available fi-
\n
nancials from 3 years plan 2023 - 2025 which are approved by Board of Directors, as base for the impairment test.
\n
The net book values of the CGUs were determined by allocating, in addition to goodwill, the brand values, the fixed assets
\n
and working capital, allocated on the basis of the relevant sales achieved in each CGU.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
The recoverable amounts of the CGUs were determined based on a \u2018value in use\u2019 methodology, discounting the estimated
\n
future cash flows generated by the use of the assets calculating the Terminal Value with the perpetuity growth method
\n
of discounting.
\n
Procedure of intangibles assets impairment test
\n
The CGUs are three and are denominated as Thermal Comfort, Burners and Components.
\n
The Group, following a prudent approach, has used as discount rate the Weighted Average Cost of Capital (WACC). Such
\n
rate was calculated on the base of observable indicators and market parameters, including a specific risk connected to
\n
the business and the size of the Group (source: Damodaran and Duff & Phelps).
\n
The calculated rate has been compared with a set of comparable peer competitors.
\n
The rates used in the impairment test are reported in \u201cAssumptions related to the impairment plan\u201d.
\n
The Growth rate used to calculate the Terminal Value has been obtained by weighting the GDP growth rate at constant
\n
prices of the market in which the Group operates, to the revenues obtained in such markets.
\n
Such GDP growth rate has been obtained from an international authoritative source (i.e. IMF, October 2022 release).
\n
The Group performed additional stress tests to assess its capacity to resist any further market shock.
\n
The stress tests consisted in a reduction of 5%, 10% and 15% in EBIDA and Capex over the entire test period and for all
\n
markets and brands. Each test was performed on a stand-alone basis.
\n
These tests have been performed in addition to the sensitivity test required by the Standards.
\n
Due to the steep increase in interest rates and inflation in 2022, the Group has decided to increase the WACC by an
\n
absolute maximum of one percent and to decrease the Growth Rate by an absolute maximum of one percent.
\n
Assumptions related to the impairment plan
\n
The main assumptions formulated for the preparation of the impairment test are the following:
\n
\u2022
\n
Net invested capital by CGU (in thousand euro): TC 1,049,988, BUR 50,249, COM 39,293
\n
\u2022
\n
Goodwill by CGU (in thousand euro): TC 294,688, BUR 12,486, COM 5,500
\n
\u2022
\n
Growth rate by CGU: TC 1.9%, BUR 1.1%, COM 1.1%
\n
\u2022
\n
WACC (weighted average cost of capital) by CGU: TC 10.8%, BUR 10.5%, COM 11.4%
\n
Impairment test results
\n
The Group calculated the headroom breakeven point through both the WACC percentage increase and the cash flow
\n
percentage decrease (in order to make it nil).
\n
For the reporting period the results are, within the planned horizon:
\n
\u2022
\n
WACC percentage increase for each division more than 100%;
\n
\u2022
\n
Cash Flow percentage decrease: Thermal Comfort 34.0%, Burners 50.8%, Components 71.4%.
\n
Based on the analyses conducted under the above assumptions considering the economic and financial impacts resulting
\n
from the actions carried out by the Group in order to be in compliance with climate changes regulations, and also a
\n
sensitivity analysis of WACC and the Growth rate beyond the specific planning timeframe. The Group can confirm the
\n
adequacy of the reported amounts.
\n
\n \n
\n \n \n
\n
The item \u201cOther intangible assets\u201d can be detailed as follows:
\n
Other intangible assets
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Concessions, licenses, trademarks
\n
49.2
\n
43.8
\n
Intangible assets in progress
\n
23.7
\n
19.3
\n
Development costs
\n
17.5
\n
18.7
\n
Software
\n
17.5
\n
16.5
\n
Other
\n
22.1
\n
14.6
\n
Total
\n
129.9
\n
113.0
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Details of and changes in \u201cOther intangible assets\u201d are the following:
\n
Other intangible
\n
assets
\n
Development costs
\n
Software
\n
Other Intangible Assets
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
68.0
\n
-49.3
\n
18.7
\n
48.8
\n
-32.3
\n
16.5
\n
95.4
\n
-17.7
\n
77.7
\n
212.2
\n
-99.2
\n
113.0
\n
Perimeter variation
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
-0.1
\n
0.0
\n
13.5
\n
-2.1
\n
11.4
\n
13.6
\n
-2.2
\n
11.4
\n
Increases
\n
2.8
\n
0.0
\n
2.8
\n
0.6
\n
0.0
\n
0.6
\n
17.7
\n
0.0
\n
17.7
\n
21.0
\n
0.0
\n
21.0
\n
Decreases
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.7
\n
0.0
\n
-0.7
\n
-0.7
\n
0.0
\n
-0.7
\n
Amortisation
\n
0.0
\n
-7.3
\n
-7.3
\n
0.0
\n
-8.2
\n
-8.2
\n
0.0
\n
-8.7
\n
-8.7
\n
0.0
\n
-24.2
\n
-24.2
\n
Exchange rate effect
\n
0.2
\n
-0.2
\n
0.1
\n
0.3
\n
-0.2
\n
0.1
\n
3.1
\n
-0.8
\n
2.4
\n
3.7
\n
-1.1
\n
2.6
\n
Other
\n
4.0
\n
-0.9
\n
3.1
\n
5.6
\n
2.9
\n
8.5
\n
-5.5
\n
0.7
\n
-4.8
\n
4.1
\n
2.7
\n
6.8
\n
Total changes
\n
7.1
\n
-8.4
\n
-1.3
\n
6.6
\n
-5.6
\n
1.0
\n
28.1
\n
-10.9
\n
17.2
\n
41.8
\n
-24.8
\n
16.9
\n
As at 31.12.2022
\n
75.1
\n
-57.6
\n
17.5
\n
55.4
\n
-37.8
\n
17.5
\n
123.5
\n
-28.6
\n
95.0
\n
254.0
\n
-124.0
\n
129.9
\n
\n \n
\n \n
Since the trademark has an indefinite useful life, it is subject to impairment test.
\n
The other intangible assets have a definite useful life and are consequently amortised as necessary.
\n
The change in \u201cOther intangible assets\u201d from the start of the period amounted to \u20ac 16.9 million and was primarily due to
\n
the perimeter variation related to Chromagen business combination, investments for the period and exchange rate ef-
\n
fects which were not fully offset by \u20ac 24.2 million in amortisation for the period.
\n \n
\n
Development costs refer to products for which the return on investments occurs within a five-year period, on average.
\n
The capitalised costs for the period, attributable only to product development projects, amounted to \u20ac 7.5 million (\u20ac 7.1
\n
million in 2021) out of a total of \u20ac 17.5 million (\u20ac 18.7 million in 2021) reported in the financial statements.
\n
The Group evaluated the development costs related to products based on the criteria outlined in the Climate Delegated
\n
Act only for objective mitigation to climate change.
\n
As evidence of the commitment to promote a more efficient and
\n
renewable product portfolio, these investments have been capitalized. The Group impaired the depreciation charged to
\n
income statement against the products\u2019 sales.
\n
In order to determine the loss in value of capitalised development costs, in addition to the assessment of the economic
\n
return from each development projects, the Group arranged to allocate them to the Net capital employed of the related
\n
CGUs and assesses their recoverability together with the related tangible assets, determining their value in use with the
\n
discounted cash flow method.
\n
\n \n
\n \n
\n \n \n
\n \n
\n \n
\n
Note 2.1.1 \u2013 Business combinations
\n
As mentioned in paragraph \u20182 - Significant events of the year\u2019, Ariston Group completed the acquisition of Chromagen
\n
group comprehensive of the total net assets and liabilities of the legal entities in Israel and Spain and the 51% of the
\n
Australian entity. The percentage is the same for both ownership and voting rights.
\n
On the date that these Consolidated Financial Statements were approved, based on the process of recognising and re-
\n
stating the information necessary for allocating the purchase prices of the various transactions at the fair value of the
\n
respective net assets acquired, the Group performed the purchase price allocation with the support of independent ex-
\n
ternal expert and it was finalized in a period not exceeding 12 months from the closing date of each transactions, in
\n
compliance with applicable accounting standards. The definitive purchase price allocation at the fair values of the assets
\n
acquired is shown in the table below. The values shown here are explained in the following notes to the financial state-
\n
ments, where they are highlighted as changes in the basis of consolidation for the purposes of the financial statements.
\n
All the values are expressed in Euro, converted using the exchange rate at the closing date, 5 January 2022.
\n
\n \n
\n \n
\n \n
\n \n
\n
Value at acquisition date
\n
Book value at
\n
acquisition date
\n
Fair value at
\n
31 December 2022
\n
ASSETS
\n
Non-current assets
\n
Goodwill
\n
6.9
\n
0.0
\n
Other intangible assets
\n
0.1
\n
8.4
\n
Lands and buildings
\n
9.4
\n
9.4
\n
Plant and machinery
\n
2.4
\n
2.4
\n
Other property, plant and equipment
\n
1.8
\n
1.8
\n
Deferred tax assets
\n
0.6
\n
0.6
\n
Financial assets
\n
0.2
\n
0.2
\n
Other non-current assets
\n
1.4
\n
1.4
\n
Total non-current assets
\n
22.8
\n
24.2
\n
Current assets
\n
Inventories
\n
23.7
\n
22.6
\n
Trade receivables
\n
26.6
\n
26.5
\n
Tax receivables
\n
0.2
\n
0.2
\n
Current financial assets
\n
0.3
\n
0.3
\n
Other current assets
\n
1.8
\n
1.8
\n
Cash and cash equivalents
\n
1.1
\n
1.1
\n
Total current assets
\n
53.7
\n
52.5
\n
TOTAL ASSETS
\n
76.5
\n
76.8
\n
LIABILITIES
\n
Non-current liabilities
\n
Non-current provisions
\n
0.7
\n
0.7
\n
Post-employment benefits
\n
0.0
\n
0.0
\n
Non-current financing
\n
15.0
\n
15.0
\n
Other non-current liabilities
\n
0.4
\n
0.4
\n
Total non-current liabilities
\n
16.1
\n
16.1
\n
Current liabilities
\n
Trade payables
\n
21.1
\n
21.1
\n
Tax payables
\n
1.3
\n
1.3
\n
Current provisions
\n
0.6
\n
0.5
\n
Current financial liabilities
\n
15.4
\n
15.4
\n
Current loans
\n
2.9
\n
2.9
\n
Other current liabilities
\n
4.2
\n
4.2
\n
Total current liabilities
\n
45.5
\n
45.4
\n
Total Liabilities
\n
61.6
\n
61.5
\n
NET EQUITY ACQUIRED
\n
14.9
\n
15.2
\n
Group Equity
\n
9.0
\n
12.8
\n
Minority Equity
\n
5.9
\n
2.4
\n
TOTAL LIABILITIES AND EQUITY
\n
76.5
\n
76.8
\n
Total cost, of which:
\n
a
\n
25.8
\n
Price paid in cash, excluding ancillary costs
\n
23.9
\n
Present value of future payments
\n
2.0
\n
Net financial indebtedness acquired, of which:
\n
b
\n
(31.7)
\n
Cash, cash equivalent and financial assets
\n
1.6
\n
Financial debt acquired
\n
(33.3)
\n
Enterprise Value (a-b)
\n
57.5
\n \n
\n
Purchase price to be allocated
\n
25.8
\n
Price paid in cash, excluding ancillary costs
\n
23.9
\n
Present value of future payments
\n
2.0
\n
Allocation to:
\n
Net assets acquired
\n
12.8
\n
Goodwill generated by acquisition
\n
13.0
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
With the acquisition, Ariston Group further strengthens its competitive position in the renewable energy segment, ac-
\n
quiring a player with a leading position in Israel and a solid footprint in Australia. The Group separately recognized Good-
\n
will arising from the Chromagen acquisition (\u20ac 13.0 million) given that it represents the future economic benefits consid-
\n
ered arising from the business combination performed by the Group. Goodwill is not tax-deductible based on the relevant
\n
local regulations.
\n
\n \n
From the acquisition date of 5 January 2022, Chromagen contributed to Ariston Group's results in the amount of \u20ac 135.4
\n
million to net revenue.
\n
\n \n
\n \n
\n \n \n
\n \n
\n
Note 2.2 \u2013 Property, plant and equipment
\n
At 31 December 2022, \u201cProperty, plant and equipment\u201d amounted to \u20ac 405.1 million, up by a net \u20ac 32.7 million compared
\n
to 31 December 2021.
\n
The depreciation expense for the period is recognised under the appropriate item in the income statement and amounted
\n
to \u20ac 65.6 million.
\n
Details of and changes in \u201cProperty, plant and equipment\u201d are the following:
\n
Property, plant
\n
and equipment
\n
Land and buildings
\n
Plant and machinery
\n
Other property, plant
\n
and equipment
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
309.9
\n
-147.9
\n
161.9
\n
413.1
\n
-308.6
\n
104.5
\n
347.9
\n
-241.9
\n
106.0
\n
1,070.8
\n
-698.4
\n
372.4
\n
Perimeter variation
\n
14.8
\n
-5.5
\n
9.4
\n
11.9
\n
-9.4
\n
2.4
\n
4.5
\n
-2.7
\n
1.8
\n
31.2
\n
-17.6
\n
13.6
\n
Increases
\n
17.4
\n
0.0
\n
17.4
\n
9.2
\n
0.0
\n
9.2
\n
54.0
\n
0.0
\n
54.0
\n
80.6
\n
0.0
\n
80.6
\n
of which for right of use
\n
13.4
\n
0.0
\n
13.4
\n
0.6
\n
0.0
\n
0.6
\n
8.4
\n
0.0
\n
8.4
\n
22.4
\n
0.0
\n
22.4
\n
Decreases
\n
-0.3
\n
0.0
\n
-0.3
\n
-0.5
\n
0.0
\n
-0.5
\n
0.2
\n
0.0
\n
0.2
\n
-0.5
\n
0.0
\n
-0.5
\n
Depreciation
\n
0.0
\n
-21.4
\n
-21.4
\n
0.0
\n
-17.3
\n
-17.3
\n
0.0
\n
-26.9
\n
-26.9
\n
0.0
\n
-65.6
\n
-65.6
\n
of which for right of use
\n
0.0
\n
-14.2
\n
-14.2
\n
0.0
\n
-0.3
\n
-0.3
\n
0.0
\n
-10.9
\n
-10.9
\n
0.0
\n
-25.4
\n
-25.4
\n
Exchange rate effect
\n
4.0
\n
-1.1
\n
2.9
\n
2.6
\n
-1.8
\n
0.8
\n
3.2
\n
-1.3
\n
1.9
\n
9.9
\n
-4.3
\n
5.6
\n
Other
\n
-9.5
\n
12.9
\n
3.4
\n
8.3
\n
3.3
\n
11.6
\n
-38.7
\n
22.8
\n
-15.9
\n
-39.8
\n
39.0
\n
-0.9
\n
Total changes
\n
26.5
\n
-15.1
\n
11.3
\n
31.6
\n
-25.2
\n
6.3
\n
23.3
\n
-8.2
\n
15.1
\n
81.4
\n
-48.5
\n
32.7
\n
As at 31.12.2022
\n
336.3
\n
-163.0
\n
173.3
\n
444.6
\n
-333.8
\n
110.8
\n
371.1
\n
-250.1
\n
121.1
\n
1,152.2
\n
-746.9
\n
405.1
\n
The net increase was largely attributable to the capital expenditure for the period, totalling \u20ac 80.6 million, only partly
\n
offset by \u20ac 65.6 million depreciation.
\n \n
\n
In accordance with the standard IFRS 16, below are the carrying amounts of right-of-use assets and the relevant changes
\n
during the period:
\n
Right of use assets
\n
Land and buildings
\n
Plant and machinery
\n
Other property plant
\n
and equip.
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
73.6
\n
-33.1
\n
40.5
\n
1.9
\n
-0.6
\n
1.3
\n
52.4
\n
-34.2
\n
18.2
\n
127.9
\n
-67.9
\n
60.0
\n
Perimeter variation
\n
10.7
\n
-3.1
\n
7.5
\n
0.0
\n
0.0
\n
0.0
\n
1.4
\n
-0.5
\n
0.9
\n
12.1
\n
-3.7
\n
8.4
\n
Increases
\n
13.4
\n
0.0
\n
13.4
\n
0.6
\n
0.0
\n
0.6
\n
8.4
\n
0.0
\n
8.4
\n
22.4
\n
0.0
\n
22.4
\n
Decreases
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Depreciation
\n
0.0
\n
-14.2
\n
-14.2
\n
0.0
\n
-0.3
\n
-0.3
\n
0.0
\n
-10.9
\n
-10.9
\n
0.0
\n
-25.4
\n
-25.4
\n
Exchange rate effect
\n
0.5
\n
-0.3
\n
0.2
\n
0.0
\n
0.0
\n
0.0
\n
0.6
\n
-0.3
\n
0.3
\n
1.2
\n
-0.6
\n
0.5
\n
Other
\n
-13.2
\n
13.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-20.6
\n
25.5
\n
4.9
\n
-33.8
\n
38.7
\n
4.9
\n
Total changes
\n
11.4
\n
-4.5
\n
6.9
\n
0.6
\n
-0.3
\n
0.3
\n
-10.2
\n
13.8
\n
3.7
\n
1.8
\n
9.0
\n
10.8
\n
As at 31.12.2022
\n
85.0
\n
-37.6
\n
47.4
\n
2.4
\n
-0.9
\n
1.6
\n
42.2
\n
-20.4
\n
21.8
\n
129.7
\n
-58.9
\n
70.8
\n
\n \n
\n \n
In order to recognise any impairment loss of tangible assets, in the presence of impairment indicators, the Group attrib-
\n
utes these assets to the Net invested capital of the related CGUs and assesses their recoverability by determining their
\n
value in use with the discounted cash flow method.
\n
\n \n
\n \n
\n
The item \u201cOther property, plant and equipment\u201d amounted to \u20ac 121.1 million, up by \u20ac 15.1 million compared with 31
\n
December 2021.
\n
The breakdown is detailed below:
\n
Other property, plant and equipment
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Industrial and commercial equipment
\n
46.8
\n
45.4
\n
Assets under construction
\n
44.5
\n
31.0
\n
Vehicles & transportation equipment
\n
19.0
\n
18.9
\n
Furniture and office equipment
\n
3.5
\n
3.2
\n
EDP machinery
\n
3.3
\n
3.3
\n
Other
\n
4.0
\n
4.1
\n
Total
\n
121.1
\n
106.0
\n
\n \n \n
\n \n
\n
Note 2.3 \u2013 Investments in associates & Joint ventures
\n \n
\n
Associates
\n
At 31 December 2022, there were no investments in associates.
\n
\n \n \n
\n
Joint ventures
\n
From June 2021 Ariston Group holds 24.5% of the shares of the Dutch company Haas Heating B.V. which was acquired
\n
by the Group through ATAG Heating B.V.
\n
The company is treated as a joint venture, thus valuing the participation with the equity method with the existence of a
\n
financial liability to be paid for acquiring the associate.
\n
The acquisition agreement sets forth a mechanism for a subsequent adjustment of the purchase price (earn-out) based
\n
on a sales scheme at specific dates falling under IAS 28
\n
Investment in Associates and Joint Ventures
\n
.
\n
Therefore, a liability equal to the current value of the estimated obligation as at the date of its eventual future exercise,
\n
was recognised in the financial statements against the equity method.
\n
By Shares Purchase Agreement defined the purchase price at \u20ac 0.8 million and a liability for \u20ac 1.5 million is related to the
\n
earn-out program.
\n
For the remaining shares the agreement foresees a series of call options until December 2023.
\n
\n \n
\n \n
\n \n \n
\n \n
\n
Notes 2.4 \u2013 Deferred tax assets and liabilities
\n
The deferred tax assets and liabilities show a net balance of \u20ac 39.4 million, with a \u20ac 12.2 million decrease in respect to
\n
2021. The decrease in the net balance is driven by the increase of the deferred tax liabilities of \u20ac 10.9 million mainly due
\n
to Chromagen acquisition equal to \u20ac 2.8 million and to the recognition of deferred taxes related to the hedging and
\n
foreign exchange effects equal to \u20ac 8.1 million.
\n
\n \n
\n \n
\n \n
\n \n
\n
The components of net deferred tax assets as at 31 December 2022 are as follows:
\n
Deferred tax assets
\n
(in \u20ac million)
\n
2021
\n
P&L
\n
Equity
\n
Translation
\n
Differences
\n
2022
\n
Trade & Patents
\n
20.7
\n
-0.2
\n
20.5
\n
R&D/Software
\n
7.6
\n
7.6
\n
Tangible fixed assets
\n
18.7
\n
-1.7
\n
17.0
\n
Provision for warranties
\n
6.6
\n
4.1
\n
-0.1
\n
10.7
\n
Provision for other risks and charges
\n
14.0
\n
-0.6
\n
0.6
\n
14.0
\n
Employees benefits
\n
8.7
\n
-1.0
\n
-1.0
\n
6.8
\n
Inventory write-off
\n
1.8
\n
1.5
\n
-0.1
\n
3.3
\n
Losses
\n
7.2
\n
-3.3
\n
0.2
\n
4.1
\n
Timing differences on costs deduction
\n
4.9
\n
-0.3
\n
0.5
\n
5.1
\n
Other
\n
12.1
\n
-1.9
\n
1.8
\n
0.1
\n
12.1
\n
TOTAL
\n
102.4
\n
-3.3
\n
0.8
\n
1.2
\n
101.2
\n
8
\n
Deferred tax liabilities
\n
(in \u20ac million)
\n
2021
\n
P&L
\n
Equity
\n
Translation
\n
Differences
\n
2022
\n
Provision for warranties
\n
1.2
\n
1.2
\n
Provision for other risks and charges
\n
3.5
\n
0.2
\n
-0.1
\n
3.6
\n
Employees benefits
\n
1.1
\n
0.4
\n
0.1
\n
1.6
\n
Tangible and intangible fixed assets
\n
16.7
\n
-3.7
\n
0.8
\n
13.9
\n
Exchange effects and hedging
\n
2.0
\n
0.4
\n
8.1
\n
10.5
\n
Reversal of timing adjustments
\n
4.1
\n
-0.1
\n
0.1
\n
4.1
\n
Distribution of earnings
\n
16.2
\n
0.6
\n
16.8
\n
Other
\n
5.9
\n
-2.8
\n
6.8
\n
0.2
\n
10.1
\n
TOTAL
\n
50.8
\n
-5.0
\n
14.9
\n
1.1
\n
61.8
\n
The deferred tax assets due to the revaluation is mainly included in the trademarks and patents, software and tangible
\n
assets. The decrease of the deferred tax assets related to the revaluation is equal to \u20ac 1.8 million.
\n
The deferred tax assets on losses carry forward is equal to \u20ac 4.1 million. The decision to recognize deferred tax assets is
\n
made for each legal entity in the Group by critically assessing whether the conditions exist for the future recoverability
\n
of such assets on the basis of actual results, as well as updated plans.
\n
Starting from 2021, a deferred tax liability on the undistributed earnings in Ariston subsidiaries is recorded equal to the
\n
expected tax burden on the remittance of earnings from those jurisdictions The amount of the deferred tax liabilities on
\n
undistributed earnings recorded in 2022 is equal to \u20ac 16.8 million.
\n
Ariston recognizes in its consolidated statement of financial position within Deferred tax assets, the amount of deferred
\n
tax assets less the deferred tax liabilities of the individual consolidated legal entities, where these may be offset.
\n
\n \n
\n \n \n
\n \n
\n \n
\n
Note 2.5 \u2013 Financial assets
\n
\u201cFinancial assets\u201d amounted to \u20ac 6.1 million at 31 December 2022, up by \u20ac 0.9 million compared to December 2021.
\n
This item mainly consists of the value of \u201cOther investments\u201d held for the medium/long-term, measured at fair value,
\n
since they are largely classified as \u201cFinancial instruments at fair value through profit or loss (FVTPL)\u201d.
\n
The increase during the period is mainly related to the investment in ThermoVault, held by Ariston Holding, for 12.22%
\n
of the entity\u2019s shares equal to \u20ac 1.1 million. The operation took place in November 2022. ThermoVault is a Belgian energy
\n
start-up that helps electricity consumers and utilities save money while allowing for the integration of more renewables.
\n
The company has developed an all-in software and hardware solution for energy services that retrofits residential cus-
\n
tomers\u2019 existing electric water and space heaters into energy-saving and lucrative grid-responsive energy storage devices.
\n
The other movements in the balance are due to the remeasurement, in accordance with IFRS 9, of the equity investment
\n
in an \u201cInvestment company in risk capital (SICAR) provision\u201d specialising in interventions in sectors where the Group
\n
operates, by the parent company Ariston Holding N.V.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Note 2.6 \u2013 Other non-current assets
\n
\u201cOther non-current assets\u201d includes primarily the security deposits due beyond the year and other assets with a financial
\n
impact spreading beyond one year.
\n
At 31 December 2022, the item amounted to \u20ac 7.0 million, up compared with \u20ac 6.4 million in 2021
\n
\n \n
\n \n
\n \n
.
\n \n
\n \n
\n
Note 2.7 \u2013 Non-current tax receivables
\n
\u201cNon-current tax receivables\u201d amounted to \u20ac 2.1 million as 31 December 2022, slightly up on \u20ac 0.9 million in the same
\n
period of 2021. The item includes receivables from tax authorities payable to the Group.
\n
\n \n
\n \n \n
\n
Note 2.8 \u2013 Inventories
\n
Following is the composition of \u201cInventories\u201d at 31 December 2022 and at 31 December 2021, net of the obsolete stock
\n
provision.
\n
Inventories
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Raw materials
\n
158.1
\n
125.6
\n
Work in progress and semi-finished goods
\n
20.4
\n
13.4
\n
Finished goods and goods for resale
\n
298.2
\n
243.0
\n
Total
\n
476.8
\n
382.0
\n
Gross value of inventories, at 31 December 2022, amounted to \u20ac 525.6 million (\u20ac 422.4 million at 31 December 2021),
\n
whereas the provision amounted to \u20ac 48.8 million (\u20ac 40.4 million at 31 December 2021).
\n
Inventories totalled \u20ac 476.8 million at 31 December 2022, up by \u20ac 94.8 million on 31 December 2021. This change is
\n
essentially attributable to several factors, as summarised below:
\n
\u2022
\n
Organic increases of \u20ac 72.2 million mainly driven by the finished goods and goods for resale stocking necessary to
\n
maintain sound product availability to customers, in line with the Group\u2019s strategic guidelines, and a net increase in
\n
raw materials weighted average price;
\n
\u2022
\n
Perimeter variation equal to \u20ac 18.4 million;
\n
\u2022
\n
Positive exchange rate effect of \u20ac 4.2 million.
\n
Inventories are recognised at the lesser value between purchase and production cost, according to the weighted average
\n
cost method and their net realisable value which includes cost necessary to sell inventories and based on that the Group
\n
did not have a material impact.
\n
The provision set up for obsolete or slow-moving stock is substantially in line with previous year in terms of incidence of
\n
the percentage on Inventories gross amount meanwhile showing an absolute value equal to \u20ac 8.4 million.
\n
The obsolescence risk is measured taking into account stock rotation, calculated monthly as the ratio of inventories to
\n
consumption over the last twelve months for raw materials (forty-eight months for spare parts with life cycle defined as
\n
\u201cinactive\u201d), and the product life cycle. In the obsolescence risk, the Group has considered for materials and products in
\n
stock the technological obsolescence which can arise from climate change. On the basis of the parameters mentioned
\n
above, impairment percentages are applied which increase in proportion to the estimated risk.
\n
\n \n
\n \n
\n
The change in the obsolete stock provision was as follows:
\n
Obsolete stock provision
\n
Raw materials
\n
Work in progress and
\n
semi-finished goods
\n
Finished goods and
\n
goods for resale
\n
Total
\n
(in \u20ac million)
\n
As at 31.12.2021
\n
10.1
\n
1.8
\n
28.5
\n
40.4
\n
Perimeter variation
\n
0.1
\n
0.0
\n
1.1
\n
1.3
\n
Increases
\n
10.6
\n
2.3
\n
17.3
\n
30.1
\n
Decreases
\n
-2.2
\n
-0.5
\n
-3.0
\n
-5.7
\n
Release
\n
-6.7
\n
-1.7
\n
-9.2
\n
-17.5
\n
Exchange rate effect
\n
0.2
\n
0.0
\n
0.1
\n
0.3
\n
Other
\n
-0.7
\n
0.0
\n
0.7
\n
0.0
\n
Total changes
\n
1.3
\n
0.1
\n
7.1
\n
8.4
\n
As at 31.12.2022
\n
11.4
\n
1.9
\n
35.6
\n
48.8
\n
The recognition of inventories according to the weighted average cost method does not show any significant differences
\n
compared with a valuation at current costs.
\n
\n \n \n
\n \n
\n
Note 2.9 \u2013 Trade receivables
\n
Trade receivables amounted to \u20ac 308.4 million, net of a bad debt provision of \u20ac 17.0 million.
\n
Compared with 31 December 2021, the net balance shows a \u20ac 60.2 million increase in absolute values. This increase is
\n
attributable to the strong growth in turnover, specifically in the markets with higher days outstanding sales, partially
\n
compensated by the strong collection performance and reduction in payment terms.
\n
The percentage of trade receivables on the turnover of the last 12 months was equal to 13.0% compared with 12.5%
\n
recorded at 31 December 2021.
\n \n
\n \n
\n \n
\n
The bad debt provision of \u20ac 17.0 million shows a net decrease by \u20ac 2.0 million compared with 31 December 2021. The
\n
decrease is partly attributable to the utilization for ending with a loss of non-performing and non-recoverable items and
\n
partly attributable to the reduction of credit risk evaluation. For Trade Receivables, the Group applies two approaches in
\n
the calculation of expected losses. The Group applies a matrix-based model. The Policy defines a percentage of statistical
\n
devaluation based on the division of trade receivables into clusters of ageing and country risk. For companies with a credit
\n
insurance contract, percentages applied on the category insured customers is reduced by approximately half of it. In the
\n
same perimeter, for a percentage of 31% in terms of newly recalculated bad debt fund, the Group is applying a new
\n
impairment criteria based on the probability of default (PD) obtained from external sources and historical loss rates.
\n
A specific fund is provided for legal and specific devaluation by single clients\u2019 situation and their economic environment.
\n
At 31 December 2022, the provision was deemed to be appropriate for the estimated losses from unsecured or disputed
\n
receivables.
\n
Following are the changes in the bad debt provision:
\n
Bad debt provision
\n
Short-term
\n
Medium/
\n
Total
\n
(in \u20ac million)
\n
long-term
\n
As at 31.12.2021
\n
13.0
\n
6.0
\n
19.0
\n
Perimeter variation
\n
1.4
\n
0.0
\n
1.4
\n
Increases
\n
1.2
\n
0.3
\n
1.6
\n
Decreases
\n
-0.9
\n
-1.7
\n
-2.6
\n
Release
\n
-2.0
\n
-0.3
\n
-2.2
\n
Exchange rate effect
\n
0.0
\n
0.0
\n
0.0
\n
Other
\n
-0.5
\n
0.4
\n
-0.1
\n
Total changes
\n
-0.7
\n
-1.3
\n
-1.9
\n
As at 31.12.2022
\n
12.3
\n
4.7
\n
17.0
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
The item \u201cOther\u201d includes primarily the reclassifications made for the period in order to ensure the correct recognition
\n
of receivables subject to special valuation, such as those in legal proceedings or in litigation.
\n
Please refer to paragraph \u2018Credit Risk\u2019 for further details on ageing and the related Bad Debt Provision.
\n
\n \n
\n \n
\n \n \n
\n \n
\n
Note 2.10 \u2013 Tax receivables
\n
The item \u201cTax receivables\u201d includes primarily the amounts due to the companies of the Group from the taxation author-
\n
ities in several countries where the Group operates. At 31 December 2022, the item amounted to \u20ac 28.4 million versus \u20ac
\n
29.8 million in 2021, mainly due to:
\n
Tax receivables
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Tax receivables for taxes paid in excess
\n
16.7
\n
13.3
\n
Tax receivables from Parent company
\n
7.1
\n
13.8
\n
Other short-term tax receivables
\n
4.6
\n
2.7
\n
Total
\n
28.4
\n
29.8
\n
Ariston Holding N.V. is incorporated in the Netherlands but is a tax resident of Italy and is controlled by Merloni Holding
\n
S.p.A.. Ariston Holding N.V. and its Italian subsidiaries have adopted the national tax consolidation scheme. At 31 Decem-
\n
ber 2022, the individual Italian companies' income tax receivables and payables were recorded from or to, respectively,
\n
Merloni Holding S.p.A.. These amounts are included in the \u201cTax receivables\u201d from the controlling shareholder for tax
\n
consolidation. The decrease amounts to \u20ac 6.7 million mainly derives from lower tax losses realized in Italy in 2022.
\n
\n \n
\n \n \n
\n
Note 2.11 \u2013 Current financial assets
\n
As at 31 December 2022, the item \u201cCurrent financial assets\u201d amounted to \u20ac 47.1 million, up from the \u20ac 10.8 million
\n
reported at the end of 2021.
\n
The item includes:
\n
\u2022
\n
\u201cShort-term financial receivables\u201d, including primarily security deposits, which amounted to \u20ac 2.2 million as at 31
\n
December 2022 (\u20ac 5.5 million as at 31 December 2021);
\n \n
\n
\u2022
\n
the positive impact of \u201cFinancial derivative assets\u201d for \u20ac 34.8 million (\u20ac 0.8 million as at 31 December 2021) is gener-
\n
ated by fair value measurement on derivative financial instruments. The fair value of financial derivatives included
\n
hedges on commodities for \u20ac 0.7 million, on interest rates for \u20ac 32.6 million and on foreign exchange for \u20ac 1.5 million.
\n
The amount of derivatives closed but not yet collected amounted to \u20ac 2.0 million (\u20ac 1.0 million as at 31 December
\n
2021);
\n
\n \n
\u2022
\n
the short-term bank notes or similar tradable instruments held by subsidiaries in China, issued and backed up by
\n
leading domestic banks and used in commercial transactions with customers and suppliers in order to settle supply
\n
agreements.
\n \n
\n \n
\n
Note 2.12 \u2013 Other current assets
\n
\u201cOther current assets\u201d amounted to \u20ac 50.8 million versus \u20ac 56.4 million at 31 December 2021. The main items are:
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Other current assets
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Indirect tax receivables
\n
25.0
\n
29.2
\n
Prepaid expenses
\n
8.8
\n
7.1
\n
Advances to suppliers
\n
8.2
\n
6.5
\n
Credits from government
\n
3.8
\n
3.5
\n
Receivables from employees
\n
1.2
\n
0.6
\n
State Green Programmes
\n
1.2
\n
8.3
\n
Other receivables
\n
2.5
\n
1.1
\n
Total
\n
50.8
\n
56.4
\n
During the period, the \u201cOther current assets\u201d did not record significant variations compared to the previous period ending
\n
at 31 December 2021.
\n
The significant decrease in the \u201cState Green Programmes\u201d equal to \u20ac 7.1 million is due to the receivables collection which
\n
occurred in December 2022, while at 31 December 2021, these receivables had been transferred to banks only partially.
\n
The residual balance as at 31 December 2022 is mainly related to the subsidiary Ingrado S.r.l., an Italian entity, that was
\n
unable to collect the receivables in the second part of 2022 due to contractual constraints.
\n
\n \n
\n \n \n
\n
Note 2.13 \u2013 Cash and cash equivalents
\n
\u201cCash and cash equivalents\u201d, amounting to \u20ac 999.3 million as at the end of December 2022, are represented almost
\n
entirely by cash in bank, as shown in the following table:
\n
Cash and cash equivalents
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Bank and postal deposits
\n
961.2
\n
653.3
\n
Short-term Investments
\n
38.0
\n
30.9
\n
Cash on hand
\n
0.2
\n
5.5
\n
Total
\n
999.3
\n
689.7
\n
The amount shown in the line \u201cBank and postal deposits\u201d primarily consists of credit balances on current accounts and
\n
compared to 31 December 2021, it increased by \u20ac 307.9 million mainly due to new medium/long-term syndicated line
\n
entered in 2022. \u201cShort-term Investments\u201d increased by \u20ac 7.1 million compared to 31 December 2021.
\n
The amount of cash on hand with a pre-determined use is not significant.
\n
The reconciliation among Cash & Cash Equivalent and Consolidated statement of cash flows is provided below:
\n
Cash & Cash Equivalent reconciliation
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Cash and cash equivalents
\n
(as included in the Consolidated statement of finan-
\n
cial position)
\n
999.3
\n
689.7
\n
Short-term bank notes or similar tradable instruments and others
\n
3.3
\n
3.5
\n
Bank overdrafts
\n
-7.4
\n
-21.8
\n
Notes payable
\n
-17.6
\n
-15.8
\n
Cash and cash equivalents (as included in the Consolidated statement of cash
\n
flows)
\n
977.5
\n
655.5
\n
\n \n
\n
Note 2.14 \u2013 Assets held for sale
\n
At 31 December 2022, the item \u201cAssets held for sale\u201d amounted to \u20ac 1.3 million, down by \u20ac 1.0 million compared with
\n
31 December 2021. The item includes the assets held for sale by the Romanian and the Chinese subsidiaries, recognised,
\n
as stated in IFRS 5, at the lower of the net book value and the fair value (net of sale costs).
\n
During the year, \u2018Assets held for sale\u2019 registered a decrease related to the Follina (Treviso, Italy) plant sold in September
\n
2022 and an increase for a reclassification from \u2018Property, Plant and Equipment\u2019 for the fixed assets held for sale by a
\n
Chinese subsidiary.
\n
\n
6.3
\n
Statement of financial position \u2013 Liabilities and equity
\n \n
\n \n
\n \n
\n
Note 3.1 \u2013 Equity
\n
At 31 December 2022, the fully paid up share capital of Ariston Holding N.V. was \u20ac 46.1 million, comprising 106,183,532
\n
ordinary shares. The capital structure as at 31 December 2022 for ordinary and special voting shares is reported below.
\n
Shareholders
\n
Ordinary
\n
Shares (1)
\n
% of Ordinary
\n
Shares
\n
Special Voting
\n
Shares A
\n
(2)
\n
Ordinary Shares
\n
and Special
\n
Voting Shares A
\n
% Ordinary Shares
\n
and Special Voting
\n
Shares A
\n
Merloni Holding S.p.A.
\n
19,426,000
\n
18.29%
\n
198,000,000
\n
217,426,000
\n
65.65%
\n
Amaranta S.r.l.
\n
2,649,000
\n
2.49%
\n
27,000,000
\n
29,649,000
\n
8.95%
\n
Treasury shares
\n
1,500,000
\n
1.41%
\n
1,500,000
\n
0.45%
\n
Other shareholders
\n
82,608,532
\n
77.80%
\n
82,608,532
\n
24.94%
\n
Total
\n
106,183,532
\n
100.00%
\n
225,000,000
\n
331,183,532
\n
100.00%
\n
(1) Ordinary shares are listed, freely transferable and each of them confers the right to cast one vote.
\n
(2) Special Voting Shares confer economic rights, are not listed and are not transferable.
\n
\n \n
\n \n \n
\n
The total consolidated equity at 31 December 2022 amounted to \u20ac 1,012.2 million, up compared with \u20ac 878.1 million at
\n
31 December 2021.
\n
The overall change is the result of the sum of positive and negative items, such as:
\n
\u2022
\n
the increase in Group net profit for the period, amounting to \u20ac 140.3 million;
\n
\u2022
\n \n
\n
in August 2022, Ariston Group started a Treasury shares buyback program to serve the Group\u2019s LTI plans with a num-
\n
ber of Ariston shares to be acquired equal to 1,500,000. The Treasury shares buyback program ended on 3 November
\n
2022 and the total amount of Treasury shares at 31 December 2022 was equal to \u20ac 12.5 million;
\n
\n \n
\u2022
\n
the increase of \u201cNon-controlling interest and reserves\u201d related to the perimeter variation for the acquisition of Chro-
\n
magen Australia for 51%;
\n
\u2022
\n
the financial statements conversion reserve into the Group currency, used to recognise the differences in exchange
\n
rates deriving from the translation of the financial statements of foreign subsidiaries, not included in the Euro area,
\n
had a positive impact of \u20ac 11.6 million;
\n
\u2022
\n
the decrease in the \u201cRetained Earnings and other reserves\u201d for the dividends paid in May 2022 for a total amount
\n
equal to \u20ac 46.4 million;
\n
\u2022
\n
the positive change due to the remeasurement of the pension provisions, for \u20ac 7.9 million, mainly following changes
\n
in the financial and demographic assumptions, recognised in equity in compliance with the revised IAS 19;
\n
\u2022
\n
the increase in the \u201cReserve for gains/losses\u201d for a total amount equal to \u20ac 23.7 million due to the positive MTM in
\n
cash flow hedge accounting;
\n
\u2022
\n
Ariston Group has, from 2021, equity incentive plans under which a combination of performance share units (\u201cPSUs\u201d),
\n
which each represent the right to receive one Ariston common share, have been awarded to the Executive Directors
\n
and Non-Executive Directors. The \u201cStock-based incentive plans reserve\u201d, during the year, increases for \u20ac 6.6 million
\n
for the expense of LTI plans for the year 2022 and decrease for \u20ac 19.6 million following the capital increases executed
\n
in 2022 for LTI plans for the years 2016-2019. As at 31 December 2022 the reserve was equal to \u20ac 11.4 million (\u20ac 24.4
\n
million as at 31 December 2021) and it is related to long-term incentive plans of 2020-2022:
\n
-
\n
2020: \u20ac 7.1 million
\n
-
\n
2021: \u20ac 3.3 million
\n
-
\n
2022: \u20ac 1.0 million
\n
For further detail, refer to \u2018Note 3.1.1 - Stock-based incentive plans payments\u2019.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Dividends paid
\n
The table below shows the dividends approved and paid during the year and in the previous years:
\n
DIVIDENDS to the parents
\n
(in thousand \u20ac)
\n
2022
\n
2021
\n
2020
\n
Dividends paid during the period
\n
46,366
\n
48,268
\n
128,621(*)
\n
(*) including \u20ac 28.4 million in regular dividends authorised upon the approval of the 2019 financial statements and \u20ac 100.2 million in special dividends.
\n
As at the reporting date, there were no dividends approved by the Annual General Meeting yet to be paid.
\n
\n \n
\n \n
\n \n \n
\n \n
\n \n
\n
Note 3.1.1 \u2013 Stock-based incentive plans payments
\n
2022 remuneration of the Executive Directors
\n
The remuneration of the executive directors is in accordance with the remuneration policy. There are no loans, advances
\n
or guarantees provided by the Company or any undertaking belonging to the same group of the Company to or on behalf
\n
of an executive director.
\n
The following table summarise the remuneration received by the executive directors for the years ended 31 December
\n
2022 and 2021:
\n
Director, Position, Year
\n
Fixed remuneration
\n
Variable remuneration
\n
Extraordinary
\n
items
\n
Pension
\n
expense
\n
Total
\n
remuneration
\n
Proportion of
\n
fixed and
\n
variable
\n
remuneration
\n
Base
\n
salary
\n
Fees
\n
Benefits and
\n
Perquisites
\n
Short-term
\n
incentive
\n
Long-term
\n
incentive*
\n
Paolo Merloni
\n
2022
\n
1,000
\n
80
\n
38
\n
666
\n
1,696
\n
(1)
\n
-
\n
43
\n
3,523
\n
33% Fixed
\n
67% Variable
\n
Executive
\n
Chairman
\n
2021
\n
900
\n
70
\n
33
\n
720
\n
1,114
\n
(2)
\n
-
\n
42
\n
2,879
\n
36% Fixed
\n
64% Variable
\n
Laurent
\n
Jacquemin
\n
2022
\n
900
\n
50
\n
79
\n
555
\n
1,017
\n
(3)
\n
-
\n
-
\n
2,601
\n
40% Fixed
\n
60% Variable
\n
Chief Executive
\n
Officer
\n
2021
\n
750
\n
48
\n
82
\n
480
\n
668
\n
(4)
\n
100
\n
(5)
\n
-
\n
2,128
\n
41% Fixed
\n
59% Variable
\n
Note
\n
:
\n
\u2022
\n
Base salary represents for the executive chairman the base salary and the executive director fee. The compensation and talent development
\n
committee on 17 February 2022
\n
unanimously resolved, based on the results of the benchmarking carried out on the executive directors\u2019 com-
\n
pensation, to align the base salary to the market
\n
and to rebalance the pay mix. Therefore, the following proposal for the executive directors\u2019
\n
compensation for 2022 was approved to be presented to the Board: executive chairman base salary at \u20ac 1million with a short-term incentive of
\n
\u20ac 600k and CEO base salary at \u20ac 900k and short-term incentive at \u20ac 500k. The Board of Directors of 2 March 2022 unanimously approved the
\n
proposal.
\n
\u2022
\n
Fees represents the Board fee and the committee membership fees.
\n
\u2022
\n
The short-term incentive represents the pay-out for the year of performance
\n
The long-term incentive value is calculated as follows: (i) for 2022, the LTI is valued referring to the share price of 30 December 2022 at close of
\n
trade (\u20ac 9.62) (and it refers to the vesting of the 2019 converted LTI phantom stock option plan) and (ii) for 2021, LTI is valued referring to the
\n
share price of 30 December 2021 at close of trade (\u20ac 10.14) (and it refers to the vesting of the 2018 converted LTI phantom stock option plan).
\n
(1)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,807 thousand
\n
(2)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,125 thousand
\n
(3)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,084 thousand
\n
(4)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 678 thousand
\n
(5)
\n
Extraordinary item refers to a special award, approved by the Board on 2 March 2022 at the recommendation of the compensation and talent
\n
development committee, in accordance with their authority to temporarily deviate from the remuneration policy in case of exceptional circum-
\n
stances. The Company proposed this award to recognise the extraordinary contribution and involvement of the CEO in the very peculiar circum-
\n
stances of the preparation of a listing, successfully leading the Company through the challenges of an IPO.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Long-term incentive
\n
Until Admission, the executive directors participated in the long-term incentive plan providing for phantom stock. Upon
\n
Admission this plan was terminated and the outstanding phantom stock options were converted (a) at the option of the
\n
beneficiaries, into ordinary shares at the offer price of the Company's initial public offering or cash (in relation to vested
\n
phantom stock options) and (b) into restricted share units (in relation to unvested phantom stock options), with a vesting
\n
period of three years from the date of the original grant (phantom stock options granted in 2019 vest in 2022, phantom
\n
stock options granted in 2020 vest in 2023). In addition, a new long-term incentive plan has been approved by the general
\n
meeting providing for awards in the form of performance share units for the 2021 LTI.
\n
The executive directors have chosen to convert the vested phantom stock options entirely into ordinary shares.
\n
The table below provides an overview of the conversion result of the phantom stock options granted in 2016, 2017 and
\n
2018 that vested before Admission. Settlement of the conversion of these phantom stock options took place in the first
\n
half of 2022.
\n
Executive director
\n
Number of ordinary shares
\n
Paolo Merloni
\n
483,584
\n
Laurent Jacquemin
\n
347,817
\n
The table below provides an overview of the conversion result for the phantom stock options granted in 2019 and 2020
\n
that were unvested at Admission and converted into restricted share units at the offer price of the Company's initial
\n
public offering and the 2021 and 2022 grant of performance share units.
\n
Director,
\n
position
\n
Main conditions of performance share plans
\n
Information regarding 2022
\n
Opening
\n
balance
\n
During the year
\n
Closing balance
\n
Plan
\n
Perfor-
\n
mance
\n
period
\n
Vesting
\n
start date
\n
Vesting
\n
end date
\n
Perfor-
\n
mance
\n
shares on 1
\n
January
\n
2022
\n
(1)
\n
Perfor-
\n
mance
\n
shares
\n
awarded
\n
Perfor-
\n
mance
\n
shares
\n
vested
\n
Shares
\n
vested
\n
Share
\n
awarded
\n
and un-
\n
vested
\n
Unexer-
\n
cised share
\n
Paolo Merloni
\n
Executive
\n
Chairman
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
176,268
\n
0,000
\n
176,268
\n
176,268
\n
0
\n
176,268
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
104,948
\n
(2)
\n
0
\n
0
\n
104,948
\n
0
\n
Laurent
\n
Jacquemin
\n
Chief Execu-
\n
tive Officer
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
105,761
\n
0
\n
105,761
\n
105,761
\n
0
\n
105,761
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
94,453
\n
(2)
\n
0
\n
0
\n
94,453
\n
0
\n
(1)
\n
Unvested share units.
\n
(2)
\n
The number of PSUs to be granted to the executive directors is determined dividing the individual grant (as resolved by the Board of Direc-
\n
tors on 2 March 2022 on the proposal of the compensation and talent development committee and approved by general meeting of 28
\n
April 2022) by the average closing price of the Company\u2019s shares on the 30 days before the grant. Specifically, for 2022 the average closing
\n
price on 30 days before the grant was \u20ac 9,5285.
\n
\n \n
\n \n
Change of remuneration of executive directors and Company performance
\n
The requirement in the Dutch Civil Code is to disclose this information over five financial years. However, as the Company
\n
was incorporated in its current structure in November 2021, meaningful total remuneration information is only available
\n
and relevant from 2021 onwards.
\n
\n
The following table shows a comparison of the fixed remuneration of the executive directors over the last five years who
\n
served as executive director in 2022.
\n
Annual change
\n
2018
\n
2019
\n
2020
\n
2021
\n
2022
\n
Executive director's fixed remuneration
\n
(in \u20ac thousand)
\n
Paolo Merloni
\n
Executive Chairman
\n
992
\n
1,005
\n
995
\n
1,003
\n
1,118
\n
Laurent Jacquemin
\n
Chief Executive Officer
\n
710
\n
718
\n
782
\n
880
\n
1,029
\n
Executive director's total remuneration
\n
(in \u20ac thousand)
\n
Paolo Merloni
\n
Executive Chairman
\n
N.A.
\n
N.A.
\n
N.A.
\n
2,879
\n
3,523
\n
Laurent Jacquemin
\n
Chief Executive Officer
\n
N.A.
\n
N.A.
\n
N.A.
\n
2,128
\n
2,601
\n
Company performance
\n
(in \u20ac million)
\n
EBIT
\n
127
\n
134
\n
149
\n
171
\n
194
\n
EBITDA
\n
195
\n
209
\n
227
\n
247
\n
283
\n
EBIT Adjusted
\n
134
\n
149
\n
164
\n
203
\n
223
\n
EBITDA Adjusted
\n
202
\n
223
\n
239
\n
277
\n
305
\n
Average remuneration on a full-time equivalent basis of employees
\n
(i)
\n
Employees of the Group
\n
N.A.
\n
N.A
\n
N.A
\n
54
\n
59
\n
Internal pay ratio Chief Executive Officer
\n
(i)
\n
Chief Executive Officer vs
\n
employees of the Group
\n
N.A
\n
N.A
\n
N.A
\n
40
\n
44
\n
(i) The population composition changes among the years in terms of FTE, mix and countries.
\n
Internal pay ratio Chief Executive Officer based on fixed remuneration
\n
In accordance with Dutch law and the Dutch corporate governance code, the internal pay ratio is an important factor for
\n
determining the remuneration policy. On 20 December 2022 the DCGC published an updated version that will come into
\n
force as of 1 January 2023. As this version includes a methodology for calculating the pay ratio, Ariston has elected to
\n
follow this methodology from 2022.
\n
The 2022 pay ratio of the Chief Executive Officer versus the employees of the Group
\n
is.
\n
2022 remuneration of the Non-Executive Directors
\n
The remuneration of the non-executive directors is in accordance with the remuneration policy. There are no loans,
\n
advances or guarantees provided by the Company or any undertaking belonging to the same group of the Company to
\n
the non-executive directors.
\n
The following table summarize the remuneration received by the non-executive directors for the years ended 31 Decem-
\n
ber 2022 and 2021.
\n
\n \n
\n \n
\n \n
\n
Non-executive director
\n
(in \u20ac thousand)
\n
Fixed remuneration
\n
2022
\n
Supplementary committee
\n
remuneration 2022
\n
Total remunera-
\n
tion 2022
\n
Total remunera-
\n
tion 2021
\n
Francesco Merloni
\n
50
\n
0
\n
50
\n
48
\n
Marinella Soldi
\n
50
\n
20
\n
70
\n
67
\n
Sabrina Baggioni
\n
42
\n
17
\n
58
\n
(1)
\n
40
\n
Roberto Guidetti
\n
50
\n
40
\n
90
\n
71
\n
Maria Francesca Merloni
\n
50
\n
0
\n
50
\n
48
\n
Lorenzo Pozza
\n
50
\n
20
\n
70
\n
38
\n
(2)
\n
Ignazio Rocco di
\n
Torrepadula
\n
50
\n
10
\n
60
\n
38
\n
(2)
\n
Andrea Silvestri
\n
50
\n
10
\n
60
\n
33
\n
(2)
\n
Paolo Tanoni
\n
50
\n
0
\n
50
\n
50
\n
Enrico Vita
\n
50
\n
10
\n
60
\n
52
\n
(1)
\n
Until 3 November 2022 (resignation).
\n
(2)
\n
As from 15 June 2021.
\n
The following table shows a comparison of the fixed remuneration of non-executive directors over the last five years who
\n
served as non-executive directors in 2022:
\n
Non-executive director
\n
(in \u20ac thousand)
\n
2018
\n
2019
\n
2020
\n
2021
\n
2022
\n
Francesco Merloni
\n
50
\n
50
\n
50
\n
48
\n
50
\n
Marinella Soldi
\n
77
\n
74
\n
74
\n
67
\n
70
\n
Sabrina Baggioni
\n
0
\n
0
\n
0
\n
40
\n
58
\n
(1)
\n
Roberto Guidetti
\n
62
\n
59
\n
59
\n
71
\n
90
\n
Maria Francesca Merloni
\n
50
\n
50
\n
50
\n
48
\n
50
\n
Lorenzo Pozza
\n
0
\n
0
\n
0
\n
38
\n
(2)
\n
70
\n
Ignazio Rocco di
\n
Torrepadula
\n
0
\n
0
\n
0
\n
38
\n
(2)
\n
60
\n
Andrea Silvestri
\n
0
\n
0
\n
0
\n
33
\n
(2)
\n
60
\n
Paolo Tanoni
\n
50
\n
50
\n
50
\n
50
\n
50
\n
Enrico Vita
\n
44,3
\n
56
\n
53
\n
52
\n
60
\n
(1) until 3 November 2022 (resignation).
\n
\n \n
\n \n
\n \n \n
\n \n
\n
Notes 3.2 \u2013 Deferred tax liabilities
\n
Comments on \u201cDeferred tax liabilities\u201d are included in the note 2.4 - \u201cDeferred tax assets and liabilities\u201d, to which refer-
\n
ence should be made.
\n
\n \n
\n \n \n
\n \n
\n
Note 3.3 \u2013 Non-current provisions
\n
Current and non-current \u201cProvisions for risks and charges\u201d totalled \u20ac 95.8 million, up by \u20ac 5.4 million compared with the
\n
previous year.
\n
The following table shows the composition of this item and the changes occurring during the year:
\n
\n \n
\n \n
\n \n
\n
Non-current
\n
and current provisions
\n
Agent
\n
supplementary
\n
indemnity provi-
\n
sion
\n
Product
\n
warranty
\n
provision
\n
First
\n
installation
\n
provisions
\n
Other
\n
provisions
\n
Total
\n
(in \u20ac million)
\n
As at 31.12.2021
\n
2.9
\n
57.0
\n
7.0
\n
23.5
\n
90.4
\n
of which:
\n
Current
\n
0.0
\n
15.9
\n
2.3
\n
15.3
\n
33.5
\n
Non-current
\n
2.9
\n
41.1
\n
4.7
\n
8.1
\n
56.9
\n
Perimeter variation
\n
0.0
\n
1.5
\n
0.0
\n
0.0
\n
1.5
\n
Increases
\n
0.2
\n
18.9
\n
3.5
\n
4.1
\n
26.6
\n
Decreases
\n
-0.2
\n
-5.3
\n
-2.9
\n
-4.2
\n
-12.6
\n
Releases
\n
-0.1
\n
-7.8
\n
0.0
\n
-4.0
\n
-11.9
\n
Other
\n
0.1
\n
0.9
\n
-0.1
\n
1.1
\n
1.9
\n
Total changes
\n
-0.1
\n
8.1
\n
0.4
\n
-3.0
\n
5.4
\n
As at 31.12.2022
\n
2.8
\n
65.1
\n
7.5
\n
20.4
\n
95.8
\n
of which:
\n
Current
\n
0.0
\n
21.2
\n
2.4
\n
12.7
\n
36.2
\n
Non-current
\n
2.8
\n
43.9
\n
5.1
\n
7.8
\n
59.6
\n
Details of and changes in \u201cother provisions\u201d are the following:
\n
Other provisions
\n
Legal disputes
\n
provision
\n
Restructuring
\n
provision
\n
Other risk
\n
provision
\n
Total
\n
(in \u20ac million)
\n
As at 31.12.2021
\n
6.9
\n
2.0
\n
14.6
\n
23.5
\n
of which:
\n
Current
\n
5.7
\n
1.4
\n
8.3
\n
15.3
\n
Non-current
\n
1.3
\n
0.6
\n
6.3
\n
8.1
\n
Increases
\n
0.3
\n
1.5
\n
2.3
\n
4.1
\n
Decreases
\n
-1.0
\n
-1.0
\n
-2.2
\n
-4.2
\n
Releases
\n
-0.7
\n
-0.9
\n
-2.4
\n
-4.0
\n
Other
\n
0.1
\n
0.2
\n
0.8
\n
1.1
\n
Total changes
\n
-1.4
\n
-0.1
\n
-1.6
\n
-3.0
\n
As at 31.12.2022
\n
5.5
\n
1.9
\n
13.0
\n
20.4
\n
of which:
\n
Current
\n
5.1
\n
1.9
\n
5.7
\n
12.7
\n
Non-current
\n
0.5
\n
0.0
\n
7.3
\n
7.8
\n
\u201cCurrent provisions for risks and charges\u201d amounted to \u20ac 36.2 million versus \u20ac 33.5 million at 31 December 2021, whereas
\n
\u201cNon-current provisions for risks and charges\u201d amounted to \u20ac 59.6 million versus \u20ac 56.9 million in the previous year.
\n
More specifically, the \u201cAgent supplementary indemnity provision\u201d recognises the accruals for covering indemnities that
\n
may be due to agents on their employment termination. The provision shows a limited decrease of \u20ac 0.1 million compared
\n
to the previous year.
\n
The \u201cProduct warranty provision\u201d, which represents estimated costs to be borne for technical support of products sold
\n
under warranty, is appropriate in order to hedge the related risk.
\n
The method used to determine this provision is based on historical/statistical data concerning warranty work performed,
\n
costs incurred for such work and products sold on the market which are still under warranty at the evaluation date.
\n
The provision had a net \u20ac 8.1 million increase mainly due to increases and decreases recognised in the period related to
\n
normal management activities of the warranty on manufactured and sold products.
\n
The \u201cFirst installation provision\u201d represents the estimated expense that the Group must bear for interventions of this
\n
type on products. This has not substantially changed compared with December 2021.
\n
The item \u201cOther provisions\u201d includes estimated future charges for corporate restructuring, pending legal disputes and
\n
other risks that it was deemed necessary to cover with appropriate provisions which were estimated based on the avail-
\n
able information.
\n
This has not substantially changed compared with December 2021.
\n
\n \n
\n
The item \u201cOther\u201d includes the effect of exchange rates for the period and reclassifications.
\n \n
\n
Note 3.4 \u2013 Post-employment benefits
\n
The Group has two defined benefit plans for employees, the first one is the employee severance indemnity, due by Italian
\n
companies to their employees in compliance with laws in force until 31 December 2015, and other current pension plans
\n
mostly in Switzerland and Germany.
\n
Until 31 December 2006, in Italy, the employee severance indemnity provision (
\n
Trattamento di fine rapporto
\n
, TFR) was
\n
considered a defined benefit plan. The regulation of this provision was amended by Law no. 296 of 27 December 2006
\n
(\u201c2007 Financial Law\u201d) and subsequent Decrees and Regulations issued in the first few months of 2007. Given these
\n
amendments and in particular in reference to companies with at least 50 employees, this is now considered a defined
\n
benefit plan only for the portions of benefits accrued before 1 January 2007 (and not yet paid as at the end of the report-
\n
ing period, while subsequent to this date, it is comparable to a defined contribution plan).
\n
IAS 19 expressly envisages the adoption of the \u201cprojected unit credit method\u201d, which is based on quantifying the actuarial
\n
liability by considering only the service accrued at the evaluation date, in accordance with the actuarial approach of so-
\n
called \u201caccrued benefits\u201d. In particular, in the projected unit credit method, this characteristic is integrated with the
\n
forecast of the salary trend up to the time that the TFR will probably be paid; the consequent liability is then re-propor-
\n
tioned on the basis of the ratio between the years worked up to the assessment period and the total service at the
\n
probable date of payment of the TFR (should the right be already completely accrued at the evaluation date, there will
\n
be then no re-proportioning of the liability).
\n
Since as from 1 January 2007, for employees belonging to companies with at least 50 employees, no amount is any longer
\n
internally provisioned, but the amounts of TFR accrued subsequent to that period are assigned to the Complementary
\n
Pension Fund or to the INPS (Italian National Social Security Institute) Treasury Fund and the company remains solely
\n
responsible for the duty of re-evaluating the amount accrued at 31 December 2006, the actuarial calculation must esti-
\n
mate, in correspondence to every possible event which leads to the payment of TFR to the worker, the associated prob-
\n
ability, the consequent amount paid and the years of service corresponding to the payment date. The latter, in particular,
\n
is a random variable that can take on any value between initial service and the maximum service that the worker can
\n
perform in correspondence with retirement, with probabilities that can be deduced from the economic and demographic
\n
technical bases used in the evaluation.
\n
For the related actuarial assessments, the demographic and economic-financial assumptions set out in the attached table
\n
have been adopted.
\n
The pension funds of the German companies are regulated on a pension system based on three pillars.
\n
The \u201cfirst pillar\u201d (state and obligatory RV-Beitrag) is a defined contribution pension plan, established by the social pension
\n
insurance, based on the pay-as-you-go principle and related to the income limit. It covers employees in the public and
\n
private sector and some categories of self-employed workers and is mainly financed through social security contributions
\n
paid by workers and employers in equal measure and by taxes.
\n
The \u201csecond pillar\u201d (BAV:
\n
Betriebliche Altersvorsorge
\n
) is represented by voluntary supplementary pensions on a pay-as-
\n
you-go basis, and thus with defined benefits falling on both the worker and the company.
\n
The \u201cthird pillar\u201d is a voluntary, private savings plan in funds or insurance companies which is encouraged through tax
\n
incentives and subsidies.
\n
There are different types of BAV pension plans that qualify as defined benefit plans (mainly: BVO 74/79, based on em-
\n
ployees\u2019 pension commitments; BVO 79, based on one-off payments; BASIS Versorgung, based on direct insurance; and
\n
ZUSATZ Versorgung, based on employee pension commitments), and the measurement is split between pensioners, early
\n
leavers, and active employees.
\n
Pension plans have developed differently in the Group\u2019s companies in Germany and there are currently two different
\n
pension plans considered as defined benefits plans:
\n
\u2022
\n
the so-called BVO 74/79 which covers all the people who were working on 1 March 1979 and up to 31 December
\n
1994;
\n
\u2022
\n
the so-called \u201c1995 Pension\u201d which was applied for all employees, including those who benefited from the BVO 74/79,
\n
as from 1 January 1995 to date.
\n
\n \n
\n
For all employees who started to work in the period March 1979-December 1994 a different defined contribution pension
\n
plan (OLS 79) was applied until December 1994.
\n
For the related actuarial assessments, the demographic and economic-financial assumptions set out in the attached table
\n
have been adopted.
\n
The pension funds of the Swiss companies are regulated on the basis on three pillars:
\n
\u2022
\n
Public Pillar (AHV/IV): defined benefits, based on the pay-as-you-go principle, regulated at federal level and managed
\n
by a public fund (AVS-Fund), obligatory and aimed at covering basic needs;
\n
\u2022
\n
Occupational Pillar (BVG): based on the funded principle, regulated at federal level, quasi-obligatory, with the collec-
\n
tive financing principle, but with private cover and management risk;
\n
\u2022
\n
Private Savings: at the discretion of each resident, in various forms (cash, securities, real estate, personal pension
\n
plans, life insurance).
\n
The pension funds set up pursuant to the second pillar and which affect the Group more directly must be legally inde-
\n
pendent from the sponsor company, segregated in terms of equity and independently managed in the legal form of
\n
cooperative foundations or associations registered with a regulatory authority. The administrative bodies of such associ-
\n
ations consist of an equal number of representatives from the sponsor companies and employees with equal voting
\n
rights, are supported by a management consultant recognised by the law and by qualified actuarial experts, and are
\n
subject to supervision by the regional authorities.
\n
The funds are financed through the contribution of the employee\u2019s sponsor company. The sponsor\u2019s contribution must
\n
be at least 50% (obligatory minimum by law) and the contributions vary from pension fund to pension fund.
\n
The contributions and the return on the market of the invested capital contribute to defining the benefits. A guarantee
\n
is envisaged for a minimum nominal return and a minimum interest rate on the amount paid in. Should it be underfunded,
\n
which is not the case of the Group\u2019s pension funds in Switzerland, it is the responsibility of the sponsor company which
\n
is obligated by law to recapitalise within a reasonable timeframe, not exceeding 10 years.
\n
In the current situation of the Group\u2019s pension funds in Switzerland, the investment risks are met by fluctuation reserves
\n
(i.e. by assets which exceed the actuarial liabilities) and the level of actuarial cover is over 100%; therefore, there is
\n
currently no need for recapitalisation measures.
\n
For the related actuarial assessments, the demographic and economic-financial assumptions set out in the attached table
\n
have been adopted.
\n
In relation to the recognition of the Group\u2019s pension funds:
\n
\u2022
\n
current employment-related costs have been recognised in the income statement, under Personnel costs;
\n
\u2022
\n
financial charges on the assumed obligations and the financial gains expected on the plan assets are recognised under
\n
financial income and expense;
\n
\u2022
\n
actuarial gains and losses are recognised in a specific valuation reserve under equity.
\n
The plan assets do not include the Group\u2019s Treasury shares, nor property occupied or used by the Group. The expected
\n
return on plan assets is defined on the basis of the current market conditions.
\n
At December 2022, the remeasurement of net liabilities emerging in the period amounted to a positive \u20ac 12.1 million
\n
against the positive \u20ac 0.9 million of December 2021. This trend was affected mainly by the change in the financial and
\n
demographic assumptions used, especially at the Swiss subsidiaries, compensate by the Asset ceiling booked in Swiss and
\n
Germany companies as shown in the description below. Finally, a Swiss subsidiary recognised a surplus on the pension
\n
fund under \u201cother non-current assets\u201d totalling \u20ac 0.6 million.
\n
This was mainly the result of the trend in rates and the returns on investments.
\n
The item \u201cForeign exchange gains (losses)\u201d shows the differences in exchange rates due to the translation of the Swiss
\n
franc in the consolidation currency.
\n
The following table shows the changes in the provisions for employee benefits that occurred during the period:
\n
\n
Employee Benefits
\n
Switzerland
\n
Germany
\n
Italy
\n
Other
\n
Total
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
31.12.2022
\n
31.12.2021
\n
31.12.2022
\n
31.12.2021
\n
31.12.2022
\n
31.12.2021
\n
31.12.2022
\n
31.12.2021
\n
Amounts recognised
\n
in the income statement
\n
Current service cost
\n
-5.0
\n
-5.3
\n
-0.1
\n
-0.1
\n
0.0
\n
0.0
\n
-0.9
\n
-0.9
\n
-5.9
\n
-6.3
\n
Past service cost
\n
0.1
\n
0.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.2
\n
0.1
\n
0.7
\n
Financial expense for obliga-
\n
tions
\n
-0.6
\n
-0.2
\n
-0.3
\n
-0.2
\n
-0.1
\n
0.0
\n
-0.4
\n
-0.1
\n
-1.4
\n
-0.6
\n
Financial income on plan as-
\n
sets
\n
0.7
\n
0.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
0.0
\n
0.8
\n
0.3
\n
Net actuarial losses for the
\n
year
\n
3.0
\n
-1.9
\n
6.1
\n
1.8
\n
1.1
\n
0.0
\n
1.1
\n
0.2
\n
11.4
\n
0.1
\n
Curtailment, settlement, plan
\n
amendment
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Other pension cost
\n
0.0
\n
0.0
\n
0.2
\n
0.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.2
\n
0.1
\n
Net periodical cost
\n
-1.7
\n
-6.9
\n
5.9
\n
1.6
\n
1.0
\n
0.0
\n
0.0
\n
-0.5
\n
5.1
\n
-5.8
\n
Group obligations
\n
Current value of defined ben-
\n
efit plans
\n
-184.6
\n
-213.8
\n
-19.4
\n
-26.9
\n
-12.0
\n
-13.9
\n
-11.2
\n
-12.0
\n
-227.2
\n
-266.6
\n
Fair value of plan assets
\n
207.3
\n
232.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
4.4
\n
4.8
\n
211.7
\n
237.1
\n
Total
\n
22.8
\n
18.5
\n
-19.4
\n
-26.9
\n
-12.0
\n
-13.9
\n
-6.8
\n
-7.2
\n
-15.5
\n
-29.5
\n
Unrecognised plan assets
\n
-22.5
\n
-21.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-22.5
\n
-21.7
\n
Unrecognised current and
\n
past service cost
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Unrecognised actuarial gains
\n
and losses
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.3
\n
-3.1
\n
-19.4
\n
-26.9
\n
-12.0
\n
-13.9
\n
-6.8
\n
-7.2
\n
-38.0
\n
-51.1
\n
of which:
\n
Post-employee benefits
\n
-0.3
\n
-3.7
\n
-19.4
\n
-26.9
\n
-12.0
\n
-13.9
\n
-6.8
\n
-7.2
\n
-38.6
\n
-51.7
\n
Other non-current assets
\n
0.6
\n
0.6
\n
0.6
\n
0.6
\n
Changes in obligations dur-
\n
ing the year
\n
BEGINNING OF THE PERIOD
\n
-213.8
\n
-219.8
\n
-26.9
\n
-30.2
\n
-13.9
\n
-15.0
\n
-12.0
\n
-8.2
\n
-266.6
\n
-273.2
\n
Change in the scope
\n
of consolidation
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current service
\n
-5.0
\n
-5.3
\n
-0.1
\n
-0.1
\n
0.0
\n
0.0
\n
-0.9
\n
-0.9
\n
-5.9
\n
-6.3
\n
Past service
\n
0.1
\n
0.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.2
\n
0.1
\n
0.7
\n
Financial expense
\n
-0.6
\n
-0.2
\n
-0.3
\n
-0.2
\n
-0.1
\n
0.0
\n
-0.4
\n
-0.1
\n
-1.4
\n
-0.6
\n
Curtailment, settlement,
\n
plan amendment
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Gains (losses) resulting from
\n
experience
\n
-3.0
\n
-2.6
\n
0.2
\n
0.0
\n
-0.7
\n
-0.2
\n
-0.4
\n
-0.2
\n
-4.0
\n
-3.0
\n
Actuarial gains (losses)
\n
Resulting from changes in
\n
demographic assumptions
\n
0.0
\n
10.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
10.8
\n
Actuarial gains (losses) result-
\n
ing from changes in financial
\n
assumptions
\n
42.1
\n
6.3
\n
5.9
\n
1.8
\n
1.8
\n
0.4
\n
1.7
\n
0.5
\n
51.6
\n
9.0
\n
Foreign exchange gains
\n
(losses)
\n
-10.6
\n
-10.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.2
\n
-0.1
\n
-10.9
\n
-10.5
\n
Paid benefits
\n
10.7
\n
13.4
\n
1.5
\n
1.8
\n
0.9
\n
1.0
\n
0.9
\n
0.8
\n
14.0
\n
17.0
\n
IFRIC
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
0.3
\n
0.1
\n
0.3
\n
Other
\n
-4.5
\n
-6.4
\n
0.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-4.4
\n
-4.3
\n
-10.8
\n
Total change
\n
29.2
\n
6.0
\n
7.4
\n
3.3
\n
1.9
\n
1.1
\n
0.8
\n
-3.8
\n
39.4
\n
6.6
\n
END OF THE PERIOD
\n
-184.6
\n
-213.8
\n
-19.4
\n
-26.9
\n
-12.0
\n
-13.9
\n
-11.2
\n
-11.9
\n
-227.2
\n
-266.6
\n
\n
Changes in assets during the
\n
year
\n
BEGINNING OF THE PERIOD
\n
232.3
\n
218.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
4.8
\n
0.4
\n
237.1
\n
219.0
\n
Financial income on plan
\n
assets
\n
0.7
\n
0.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
0.0
\n
0.8
\n
0.3
\n
Company\u2019s contributions
\n
5.7
\n
5.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.2
\n
0.2
\n
5.9
\n
5.6
\n
Employees\u2019 contributions
\n
4.5
\n
4.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
0.1
\n
4.6
\n
4.3
\n
Curtailment, settlement,
\n
plan amendment
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Payments
\n
-10.7
\n
-13.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.5
\n
-0.4
\n
-11.2
\n
-13.8
\n
Actuarial gains (losses) from
\n
plan assets
\n
-36.4
\n
5.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.1
\n
0.1
\n
-36.5
\n
5.3
\n
Foreign exchange gains
\n
(losses)
\n
11.4
\n
10.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
11.4
\n
10.1
\n
Asset ceiling
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Other
\n
-0.3
\n
1.9
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
4.4
\n
-0.3
\n
6.4
\n
Total change
\n
-25.0
\n
13.6
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.4
\n
4.4
\n
-25.4
\n
18.1
\n
END OF THE PERIOD
\n
207.3
\n
232.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
4.4
\n
4.8
\n
211.7
\n
237.1
\n
Remeasurements
\n
recognized in OCI
\n
BEGINNING OF THE PERIOD
\n
\u2013
\n
-21.0
\n
-19.0
\n
-10.1
\n
-12.0
\n
-3.9
\n
-4.1
\n
-2.6
\n
-2.9
\n
-37.6
\n
-38.0
\n
Other Comprehensive
\n
Income (OCI)
\n
Other changes
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Actuarial gains (losses) fol-
\n
lowing adoption of IAS 19R
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Actuarial gains (losses)
\n
resulting from changes in
\n
demographic assumptions
\n
0.0
\n
10.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
10.8
\n
Actuarial gains (losses)
\n
resulting from changes in
\n
financial assumptions
\n
42.1
\n
6.3
\n
5.9
\n
1.8
\n
1.8
\n
0.4
\n
1.7
\n
0.5
\n
51.6
\n
9.0
\n
Gains (losses) resulting from
\n
experience
\n
-3.0
\n
-2.6
\n
0.2
\n
0.0
\n
-0.7
\n
-0.2
\n
-0.4
\n
-0.2
\n
-4.0
\n
-3.0
\n
Actuarial gains (losses) from
\n
plan assets
\n
-36.4
\n
5.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.1
\n
0.0
\n
-36.5
\n
5.2
\n
Asset ceiling
\n
0.3
\n
-21.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.3
\n
-21.7
\n
Total change
\n
3.0
\n
-1.9
\n
6.1
\n
1.8
\n
1.1
\n
0.2
\n
1.1
\n
0.3
\n
11.4
\n
0.4
\n
END OF THE PERIOD
\n
-17.9
\n
-21.0
\n
-4.0
\n
-10.1
\n
-2.7
\n
-3.9
\n
-1.5
\n
-2.6
\n
-26.2
\n
-37.6
\n
Plan assets structure
\n
Shares
\n
6.5%
\n
6.5%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
6.5%
\n
6.5%
\n
Securities
\n
14.1%
\n
14.4%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
14.1%
\n
14.4%
\n
Cash
\n
0.2%
\n
0.3%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.2%
\n
0.3%
\n
Other assets
\n
79.3%
\n
78.8%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
79.3%
\n
78.8%
\n
END OF THE PERIOD
\n
100.0%
\n
100.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
100.0%
\n
100.0%
\n
Assumptions used
\n
Discount rate
\n
2.2%
\n
0.3%
\n
3.9%
\n
1.3%
\n
3.3%
\n
0.8%
\n
6.1%
\n
2.0%
\n
Inflation rate
\n
2.0%
\n
0.8%
\n
1.5%
\n
1.5%
\n
3.4%
\n
1.2%
\n
3.0%
\n
2.7%
\n
Future salary raises
\n
2.0%
\n
0.8%
\n
2.0%
\n
2.0%
\n
1.0%
\n
2.2%
\n
4.7%
\n
3.3%
\n
Future pension raises
\n
0.0%
\n
0.0%
\n
1.5%
\n
1.5%
\n
4.1%
\n
2.4%
\n
2.5%
\n
2.0%
\n
\n \n
\n
The liability recognised under the \u201cProvision for employee benefits\u201d, at 31 December 2022, stood at \u20ac 38.6 million, out
\n
of which \u20ac 38.0 million unfunded, with a decrease of \u20ac 13.1 million compared with the net liability of \u20ac 51.7 million at 31
\n
December 2021.
\n
A quantitative sensitivity analysis of the significant assumptions used at 31 December 2022 is provided below. Specifically,
\n
it shows the effects on the final net obligation arising from a positive or negative percentage change in the key assumption
\n
used.
\n
Switzerland
\n
Germany
\n
Italy
\n
Other
\n
Total
\n
+0.5%
\n
-0.5%
\n
+0.5%
\n
-0.5%
\n
+0.5%
\n
-0.5%
\n
+0.5%
\n
-0.5%
\n
+0.5%
\n
-0.5%
\n
Discount rate
\n
-5.7%
\n
6.4%
\n
-4.4%
\n
4.8%
\n
-3.3%
\n
3.7%
\n
-2.6%
\n
2.7%
\n
-5.3%
\n
5.9%
\n
Future salary
\n
0.8%
\n
-0.8%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.7%
\n
-0.6%
\n
0.7%
\n
-0.7%
\n
Future pension
\n
3.6%
\n
0.0%
\n
4.4%
\n
-4.1%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
3.3%
\n
-0.4%
\n
Future inflation rate
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
2.0%
\n
-2.1%
\n
0.1%
\n
-0.1%
\n
0.1%
\n
-0.1%
\n
The sensitivity analysis shown above is based on a method involving extrapolation of the impact on the net obligation for
\n
defined benefit plans of reasonable changes to the key assumptions made at the end of the financial year.
\n
The following payments are the expected contributions that will be made in future years to provide for the obligations of
\n
the defined benefit plans.
\n
Switzerland
\n
Germany
\n
Italy
\n
Other
\n
Total
\n
Within 12 months
\n
-11.6
\n
-1.5
\n
-1.1
\n
-0.5
\n
-14.6
\n
From 1 to 5 years
\n
-61.9
\n
-5.5
\n
-3.0
\n
-2.8
\n
-73.2
\n
From 5 to 10 years
\n
-62.3
\n
-6.0
\n
-5.9
\n
-5.8
\n
-80.0
\n
Total
\n
-135.8
\n
-13.0
\n
-10.0
\n
-9.1
\n
-167.8
\n
Average plan duration (years)
\n
12.3
\n
13.8
\n
10.8
\n
9.1
\n
11.5
\n
\n \n
\n
\n
\n
\n \n
\n \n
\n
Note 3.5 \u2013 Non-current financing
\n
As at 31 December 2022, \u201cNon-current financing\u201d amounted to \u20ac 865.2 million versus \u20ac 446.4 million in the previous
\n
year, and was as follows:
\n
31.12.2022
\n
31.12.2021
\n
< 1 year
\n
< 5 years
\n
> 5 years
\n
Total
\n
< 1 year
\n
< 5 years
\n
> 5 years
\n
Total
\n
Fair value of Current and
\n
Non-current Financing
\n
32.7
\n
704.9
\n
160.2
\n
897.8
\n
23.1
\n
240.0
\n
206.4
\n
469.5
\n
The \u201cCurrent financing\u201d debt for loans was up \u20ac 9.6 million on the previous year; this is essentially attributable to the
\n
normal amortization plan of medium/long-term debt. Meanwhile the \u201cNon-current financing\u201d compared to 31 December
\n
2021 was up \u20ac 418.7 million mainly due to new refinancing taken out in 2022.
\n \n
\n
In accordance with IFRS 16, below are the carrying amounts of financial liabilities arising from right-of-use assets broken
\n
down by maturity at 31 December 2022:
\n
Expiry dates 31.12.2022
\n
(in \u20ac million)
\n
0-12 months
\n
2-5 years
\n
>5 years
\n
Total
\n
Financial payables
\n
- non-current loans
\n
40.4
\n
10.2
\n
50.6
\n
- current loans
\n
20.8
\n
20.8
\n
Financial payables
\n
20.8
\n
40.4
\n
10.2
\n
71.4
\n
\n \n
\n \n
\n \n
\n
\n
\n
\n
\n
Net financial indebtedness
\n
The reconciliation with the Net Financial Indebtedness adjusted is set out below.
\n
2022
\n
2021
\n
Net Financial Indebtedness
\n
(million \u20ac)
\n
A
\n
Cash
\n
999.2
\n
689.3
\n
B
\n
Cash equivalents including the current financial assets
\n
0.1
\n
0.4
\n
C
\n
Other current financial assets
\n
12.3
\n
4.5
\n
D
\n
Liquidity (A+B+C)
\n
1,011.6
\n
694.2
\n
E
\n
Current financial liabilities
\n
-53.5
\n
-71.1
\n
F
\n
Current portion of non-current financial liabilities
\n
-32.7
\n
-23.1
\n
G
\n
Current Financial Indebtedness (E+F)
\n
-86.2
\n
-94.2
\n
H
\n
Net Current Financial Indebtedness (G-D)
\n
925.4
\n
599.9
\n
I
\n
Non-current financial liabilities
\n
-865.2
\n
-446.4
\n
J
\n
Non-current financing (Debt instruments)
\n
0.0
\n
0.0
\n
K
\n
Non-current Trade and Other Payables
\n
0.0
\n
-4.5
\n
L
\n
Non-Current Financial Indebtedness (I+J+K)
\n
-865.2
\n
-450.9
\n
M
\n
Total Financial Indebtedness (H+L) (*)
\n
60.2
\n
149.0
\n
N
\n
Group Net Financial Indebtedness
\n
98.9
\n
184.8
\n
\u2206 M-N
\n
-38.6
\n
-35.8
\n
(*) ESMA 32-382-1138 guideline
\n
In preparing the statement of Net Financial Indebtedness, which is a non-IFRS measure, the Group considered the provi-
\n
sions set out in Consob Communication DEM/6064293 of 28 July 2006 and the ESMA Guidelines issued in May 2021, with
\n
the exception that it included non-current financial assets consisting of financial receivables and excluded outstanding
\n
debts associated with purchases of equity interest and positive MTM on derivatives.
\n
At 31 December 2022, the Group recorded a positive Net Financial Indebtedness adjusted of \u20ac 98.9 million compared
\n
with the positive balance of \u20ac 184.8 million at 31 December 2021.
\n \n
\n
A reconciliation of the changes in financial assets and liabilities used in financing activities indicated in the cash flow
\n
statement and the balances shown on the financial statements is provided below:
\n
Non
\n
-
\n
current
\n
financing
\n
Current financial
\n
liabilities
\n
Current loans
\n
Current
\n
financial assets
\n
Total
\n
Net impact
\n
31.12.2021
\n
446.4
\n
46.1
\n
23.1
\n
-10.8
\n
504.8
\n
Increase/decrease in short
\n
-
\n
term
\n
financial payables
\n
(1)
\n
0.0
\n
8.5
\n
-0.3
\n
-1.8
\n
6.4
\n
New loans
\n
(1)
\n
450.5
\n
0.0
\n
0.0
\n
-0.0
\n
450.5
\n
Loans repayment
\n
(1)
\n
-62.8
\n
0.0
\n
0.0
\n
-0.0
\n
-62.8
\n
New lease contracts
\n
22.5
\n
0.0
\n
0.0
\n
-0.0
\n
22.5
\n
Reclassification
\n
-6.7
\n
0.0
\n
6.7
\n
-0.0
\n
0.0
\n
Exchange rate effects
\n
0.1
\n
-1.3
\n
0.1
\n
-0.3
\n
-1.4
\n
Perimeter variation
\n
15.1
\n
15.5
\n
2.9
\n
-0.3
\n
33.2
\n
Net variation positive MTM
\n
0.0
\n
0.0
\n
0.0
\n
-34.0
\n
-34.0
\n
Other movements
\n
0.0
\n
-19.0
\n
0.0
\n
0.1
\n
-18.9
\n
31.12.2022
\n
865.2
\n
49.7
\n
32.7
\n
-47.1
\n
900.4
\n
(1): Included in the Cash flows Statement.
\n
\n \n
\n \n
\n \n
\n \n
\n
Note 3.6 \u2013 Other non-current liabilities
\n
\u201cOther non-current liabilities\u201d amounted to \u20ac 12.0 million versus \u20ac 14.0 million in the previous year. These liabilities are
\n
represented primarily by debts to be extinguished beyond the year and non-current contract liabilities. For the disclosure
\n
about contract liabilities, refer to \u2018Note 3.13 \u2013 Other current liabilities\u2019.
\n
\u201cOther non-current liabilities\u201d largely reflected the fair value of the debt resulting from the measurement of the individual
\n
obligations associated with Put and Call options on non-controlling interests in the recently acquired entities, primarily
\n
the newly acquired Chromagen group and the Dutch entity Haas Heating B.V. acquired in 2021.
\n
During the year, \u201cOther non-current liabilities\u201d did not record a significant variation but some transactions took place in
\n
the account.
\n
During the year, Ariston Group paid the remaining liability related to the representations and warranties foreseen in the
\n
Shares Purchase Agreement for the acquisition of the Danish entity Gastech-Energi A/S after the Danish Court Decision.
\n
The amount paid during the 2022 is equal to \u20ac 1.2 million. The payment of the liability generated a positive impact in
\n
income statement for \u20ac 1.3 million which compensates the Group for the fine imposed by the Danish Court.
\n
The shares of Gastech-Energi A/S owned by Ariston Group are now equal to 100%.
\n
As at 31 December 2021 the liability was classified in non-current liabilities because it was not possible to reliably deter-
\n
mine when the Danish Court would have issued the judgement.
\n
In June 2022, Ariston Group paid the remaining liability, related to the acquisition of the German company Kesselheld
\n
GmbH, to the sellers after agreement between the parties. The liability was not paid for the total amount because the
\n
parties offset the tax risks, arising before the Ariston Group acquisition, as stated in the agreement executed by the
\n
parties. The amount was already paid into an Escrow Account at the acquisition date and therefore in June 2022 there
\n
was not a cash out for Ariston Group. The event described above generated a positive impact in income statement for \u20ac
\n
0.3 million.
\n
\n \n \n
\n
As at 31 December 2021 the liability was classified in non-current liabilities because the expiration of the execution was
\n
in 2023, as stated in the Shares Purchase Agreement, but the parties agreed to bring forward the agreement closing in
\n
June 2022.
\n
\n \n
\n \n
\n \n \n
\n \n
\n
Note 3.7 \u2013 Non-current tax liabilities
\n
\u201cNon-current tax liabilities\u201d amounted to \u20ac 1.8 million as 31 December 2022 down by for \u20ac 6.0 million compared to the
\n
amount as at 31 December 2021. The decrease was mainly due to reclassification to \u201cTax payables\u201d of \u20ac 6.5 million related
\n
to the third payment of substitute income tax (overall equal to 3% of the accounting revaluation carried out in the local
\n
financial statements of Italian companies), payment of which shall be made within the deadline for paying the balance of
\n
income taxes for tax period 2023.
\n
\n \n
\n \n \n
\n \n
\n
Note 3.8 \u2013 Trade payables
\n
\u201cTrade payables\u201d at 31 December 2022 amounted to \u20ac 481.4 million showing an increase of \u20ac 4.2 million, compared with
\n
31 December 2021. They are not subject to interests and their carrying value is believed to be close to the fair value at
\n
the end of the reporting period.
\n
Trade payables in terms of the average number of days for payment, amounted to 96 days in 2022 and 97 days in 2021.
\n
\n \n
\n \n \n
\n \n
\n
Note 3.9 \u2013 Tax payables
\n
\u201cTax payables\u201d amounted to \u20ac 53.0 million versus \u20ac 45.1 million in 2021.
\n
\n \n
\n \n
\n \n
\n \n
\n
Tax payables
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Income tax payables
\n
30.5
\n
27.2
\n
Tax payables due to Parent company
\n
13.6
\n
10.4
\n
Other tax payables
\n
8.8
\n
7.5
\n
Total
\n
53.0
\n
45.1
\n
This item includes the income tax payables related to Italian and foreign companies. The increase in tax payable in 2022
\n
is mainly reflected in the increase in the business performance occurred during the year.
\n
Ariston Holding N.V. is incorporated in the Netherlands but is a tax resident of Italy and is controlled by Merloni Holding
\n
S.p.A.. Ariston Holding N.V. and its Italian subsidiaries have adopted the national tax consolidation scheme. At 31 Decem-
\n
ber 2022, the individual Italian companies' income tax receivables and payables were recorded from or to, respectively,
\n
Merloni Holding S.p.A.. These amounts are included in the \u201cTax payables\u201d due to the controlling shareholder for tax
\n
consolidation.
\n
\n \n
\n \n \n
\n \n
\n
Note 3.10 \u2013 Current provisions
\n
This item amounts to \u20ac 36.2 million and is described in the note \u20183.3 - Non-current provisions for risks and charges\u2019, to
\n
which reference should be made.
\n
\n \n
\n \n \n
\n \n
\n
Note 3.11 \u2013 Current financial liabilities
\n
\n \n \n
\n \n
\n
As at 31 December 2022, \u201cCurrent financial liabilities\u201d amounted to \u20ac 49.7 million versus \u20ac 46.1 million in the previous
\n
year.
\n
\n \n \n
\n
Liabilities are the following:
\n
Current financial liabilities
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
Short-term debt due to bank
\n
21.6
\n
22.8
\n
Financial derivative liabilities
\n
10.5
\n
7.4
\n
Other current financial liabilities
\n
17.6
\n
15.8
\n
Total
\n
49.7
\n
46.1
\n
\n \n
\n \n \n
\n
Short-term debt due to banks showed a \u20ac 1.3 million decrease as a result of a lower draw-down of short-term lines.
\n
Short-term uncommitted credit lines amounted to approximately \u20ac 395.0 million and consisted almost entirely of current
\n
account credit lines and advances utilized as at 31 December 2022 for \u20ac 49.0 million (\u20ac 34.0 as at 31 December 2021).
\n
\n \n \n
\n
As at 31 December 2022, \u201cFinancial derivate liabilities\u201d amounted to \u20ac 10.5 million and included the negative fair value
\n
and derivatives closed but not yet paid of financial derivatives instruments.
\n
The fair value of financial derivatives included hedges on foreign exchange for \u20ac 3.5 million (\u20ac 1.2 million as at 31 Decem-
\n
ber 2021) and on commodities for \u20ac 1.3 million (\u20ac 0.1 million as at 31 December 2021).
\n
The negative accruals to financial derivatives closed but not yet paid at the reporting date amounted to \u20ac 5.6 million.
\n
The change in commodity, foreign exchange and interest rates hedges was offset by the change in the underlying hedged
\n
items. The fair value measurement of the derivative instruments has a direct contra-entry in the equity reserve related
\n
to the cash flow hedge for a total of \u20ac 22.8 million. For a more detailed explanation of hedging instruments, see the
\n
section on the instruments for financial risk management.
\n
\n \n \n
\n
The item \u201cOther current financial liabilities\u201d amounted to \u20ac 17.6 million (\u20ac 15.8 million as at 31 December 2021) and
\n
consisted for \u20ac 13.0 million of the short-term debt for bank notes or similar tradable instruments issued, held by subsid-
\n
iaries in China, and used in commercial transactions with customers and suppliers in order to settle supply agreements.
\n
\n \n
\n \n
\n \n
\n \n
\n
Note 3.12 \u2013 Current loans
\n
The balance of \u201cCurrent loans\u201d amounted to \u20ac 32.7 million versus \u20ac 23.1 million at 31 December 2021.
\n
The item consists primarily of the short-term portion of the medium/long-term bank loans, the details of which are an-
\n
nexed to the \u2018Note 3.5 - Non-current financing\u2019.
\n
\n \n
\n \n \n
\n \n
\n \n
\n \n
\n
Note 3.13 \u2013 Other current liabilities
\n \n
\n
\u201cOther current liabilities\u201d amounted to \u20ac 174.5 million, increased by \u20ac 16.2 million with the \u20ac 186.3 million at 31 Decem-
\n
ber 2021.
\n
Other current liabilities
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
Current payables due to personnel
\n
51.7
\n
50.9
\n
Contract liabilities
\n
41.9
\n
34.6
\n
Indirect tax payables
\n
29.2
\n
20.2
\n
Current payables for social security contributions
\n
19.1
\n
17.9
\n
Customers credit balance
\n
13.1
\n
9.0
\n
Advances from customers
\n
5.6
\n
7.2
\n
Deferred income
\n
4.8
\n
5.6
\n
Short-term put/call debts
\n
3.8
\n
25.1
\n
Long-term employees incentive scheme (current)
\n
0.3
\n
2.2
\n
State Green Programmes
\n
0.0
\n
7.5
\n
Other current payables
\n
5.1
\n
6.1
\n
Total
\n
174.5
\n
186.3
\n
\n \n \n
\n
In accordance with IFRS 15, performance obligations to customers at contract level are presented as contract liabilities.
\n
Contract liabilities include:
\n
\u2022
\n
Rights of Return
\n
\u2022
\n
After-sales service, which include Service maintenance contracts and Service type warranties
\n
31.12.2022
\n
31.12.2021
\n
Up to 1
\n
year
\n
From 1 to
\n
5 years
\n
Over 5
\n
years
\n
Total
\n
Up to 1
\n
year
\n
From 1 to 5
\n
years
\n
Over 5
\n
years
\n
Total
\n
Right of returns
\n
2.7
\n
0.0
\n
0.0
\n
2.7
\n
1.4
\n
0.0
\n
0.0
\n
1.4
\n
After-sales services
\n
39.1
\n
3.7
\n
7.8
\n
50.6
\n
33.2
\n
2.1
\n
7.0
\n
42.3
\n
Total
\n
41.9
\n
3.7
\n
7.8
\n
53.4
\n
34.6
\n
2.1
\n
7.0
\n
43.7
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
The table below presents the opening and closing balances of contract liabilities as well as movements during the years:
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2021
\n
0.0
\n
35.5
\n
35.5
\n
Increase recognized during the period
\n
0.0
\n
85.6
\n
85.6
\n
Revenue recognized during the period
\n
0.0
\n
-82.9
\n
-82.9
\n
Contracts cancelled during the period
\n
0.0
\n
-0.4
\n
-0.4
\n
Net variation invoicing
\n
0.0
\n
4.0
\n
4.0
\n
Other changes to contract balances
\n
1.4
\n
0.5
\n
1.9
\n
Closing balance 31.12.2021
\n
1.4
\n
42.3
\n
43.7
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2022
\n
1.4
\n
42.3
\n
43.7
\n
Increase recognized during the period
\n
0.0
\n
103.7
\n
103.7
\n
Revenue recognized during the period
\n
0.0
\n
-92.7
\n
-92.7
\n
Contracts cancelled during the period
\n
0.0
\n
-2.1
\n
-2.1
\n
Net variation invoicing
\n
0.0
\n
-1.4
\n
-1.4
\n
Other changes to contract balances
\n
1.3
\n
0.9
\n
2.2
\n
Closing balance 31.12.2022
\n
2.7
\n
50.6
\n
53.4
\n
\n \n
\n \n
\u201cCurrent payables due to personnel\u201d include the amounts accrued by personnel and not yet disbursed. It increased by \u20ac
\n
0.8 million compared to 31 December 2021.
\n
The item \u201cIndirect tax payables\u201d includes the VAT payables due to tax authorities. The \u20ac 9.0 million increase was linked
\n
to the operative business.
\n
\u201cCurrent payables for social security contributions\u201d included all relationships that the company is required to maintain
\n
with social security and insurance entities for its employees and workers with atypical contracts (
\n
parasubordinati
\n
). It was
\n
up by \u20ac1.2 million compared with 31 December 2021.
\n \n
\n
The \u201cShort-term put/call debts\u201d arises from purchase agreements that are to be settled in the near future. The item
\n
showed a decrease, discussed below, of \u20ac 21.3 million.
\n
In May 2022, the Group exercised the Put and Call option for HTP Comfort Solutions LLC, now known as Ariston Thermo
\n
USA LLC. Starting from 31 May 2022, the Ariston Thermo USA LLC\u2019s shares owned by Ariston Group are now equal to
\n
100%. The amount paid during the 2022 is equal to $ 23.4 million (\u20ac 21.9 million). The liability related to the earn out has
\n
been not paid to the seller after agreed between the parties. This event has generated a positive financial impact in
\n
income statement for \u20ac 4.9 million.
\n
In January 2022, Ariston Group completed the acquisition of Chromagen group. From the Asset Purchase Agreement is
\n
stated a representation and warranties clause covered by an escrow account (\u20ac 2.2 million) as guarantee for the seller.
\n
The present value of the outstanding amount that will be paid to the seller is considered as financial liabilities
\n
The balance as at 31 December 2022 includes the liability for the Put and Call on HAAS B.V., Atmor Industries and Chro-
\n
magen group.
\n
\n \n
The item \u201cAdvances from customers\u201d shows all advances received from customers for supplies not yet delivered. The
\n
item was substantially in line with 31 December 2021.
\n \n
\n
\u201cDeferred income\u201d included adjustments of costs and revenues for the year in order to comply with the competence
\n
principle and the accrual principle (accruals and deferred income, also relating to financial liabilities).
\n
\n \n
The item \u201cLong-term employees incentive scheme\u201d reflects the obligation under a three-year long-term incentive plan
\n
(LTI), to be awarded to the group of senior managers. The reduction is due to the reclassification to equity, according to
\n
IFRS 2 principle, whit most of incentive schemes being shifted to a share-based plan.
\n
The \u201cState Green Programmes\u201d includes the amounts due and not paid to the entities that sold Ariston Group companies
\n
tax credits relating to energy efficiency or energy saving projects falling within the scope of Article 14 of Italian Decree-
\n
Law no. 63/2013 and Article 16 bis of Italian Presidential Decree 917 of 1986 (\u201cEcobonus Projects\u201d), carried out by using
\n
products purchased from a reseller and provided to the latter by the Group's companies. The significant decrease of the
\n
\u201cState Green Programmes\u201d equal to \u20ac 7.5 million is due to the payments to the counterparts after the collection of the
\n
\n \n
\n
\n \n
\n \n
\n
receivables during December 2022 while at 31 December 2021 the payment was partial due to in complete collection
\n
from banks as mentioned in \u2018Note 2.12 \u2013 Other current assets\u2019.
\n
\n \n
\n \n
\n
\n \n \n
\n
Note 3.14 \u2013 Liabilities held for sale
\n
There are no \u201cLiabilities held for sale\u201d.
\n
\n \n
\n
6.4
\n
Other information
\n \n
\n
COMMITMENTS
\n \n
\n
Commitments
\n
The commitments outstanding at 31 December 2022, equal to \u20ac 0.1 million, referred to the equivalent value of the pay-
\n
ments (USD 0.1 million) of additional shares in an ''Investment company in risk capital (SICAR) provision'' specializing in
\n
interventions in sectors in which the Group operates, to be carried out when they are called up by the fund managers for
\n
the established commitment.
\n
At 31 December 2022, there were no other commitments to be mentioned except for the ones concerning the call and
\n
put options entered into as part of the recent acquisitions and already accounted for as \u201cOther liabilities\u201d.
\n
\n \n
Guarantees issued
\n
The sureties issued in favour of third parties amounted to \u20ac 0.6 million.
\n
Third-party assets in deposit accounts amounted to \u20ac 14.4 million.
\n
No collateral guarantees are issued by the Group.
\n
\n \n
\n \n
\n \n
\n
FINANCIAL INSTRUMENTS
\n
Below are the Group's financial instruments recognised by category and level of confidence of their fair value measure-
\n
ments at 31 December 2022:
\n
31.12.2022
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Available for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
liabil-
\n
ities at
\n
amortised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measured at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Finan
\n
cial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0.0
\n
0.0
\n
0.0
\n
999.3
\n
0.0
\n
999.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade re
\n
ceivables
\n
2.9
\n
0.0
\n
0.0
\n
0.0
\n
308.4
\n
0.0
\n
308.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current
\n
financial
\n
assets
\n
2.11
\n
0.0
\n
34.8
\n
0.0
\n
10.2
\n
2.0
\n
47.1
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial assets
\n
2.5
\n
0.0
\n
0.0
\n
0.0
\n
6.1
\n
0.0
\n
6.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
34.8
\n
0.0
\n
1,324.0
\n
2.0
\n
1,360
\n
.
\n
8
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial liabilities
\n
Trade
\n
payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
481.4
\n
481.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial lia-
\n
bilities
\n
3.11
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
44.8
\n
49.7
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Current
\n
loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
32.7
\n
32.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current
\n
financing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
865.2
\n
865.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
1,424.0
\n
1,428.8
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Financial instruments
\n
balance
\n
0.0
\n
30.0
\n
0.0
\n
1,324.0
\n
-1,422.0
\n
-68.0
\n
0.0
\n
30.0
\n
0.0
\n
30.0
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
The financial instruments of the Group, recognised in the financial statements with a similar breakdown at 31 December
\n
2021, are shown in the table below:
\n
31.12.2021
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Availa-
\n
ble for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
lia-
\n
bilities
\n
at
\n
amor-
\n
tised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measu
\n
red at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair
\n
value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Financial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
689.7
\n
0.0
\n
689.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade receivables
\n
2.9
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
248.3
\n
0.0
\n
248.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial
\n
assets
\n
2.11
\n
0
\n
.0
\n
0.8
\n
0.0
\n
9.0
\n
1.0
\n
10.8
\n
0
\n
.0
\n
0.8
\n
0
\n
.0
\n
0.8
\n
Financial assets
\n
2.5
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
5.2
\n
0
\n
.0
\n
5.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
0.8
\n
0.
\n
0
\n
952.1
\n
1.0
\n
95
\n
3.9
\n
0
\n
0.8
\n
0.0
\n
0.8
\n
Financial liabilities
\n
Trade payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
477.2
\n
477.2
\n
0.0
\n
0.0
\n
0.0
\n
0
\n
.0
\n
Current financial
\n
liabilities
\n
3.11
\n
0.0
\n
2.5
\n
0.0
\n
0.0
\n
43.6
\n
46.1
\n
0.0
\n
2.5
\n
0.0
\n
2.5
\n
Current loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
23.1
\n
23.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current financ-
\n
ing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
446.4
\n
446.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.
\n
0
\n
2.5
\n
0.0
\n
0.0
\n
990.3
\n
992.8
\n
0.
\n
0
\n
2.5
\n
0.0
\n
2.5
\n
Financial
\n
instruments balance
\n
0.0
\n
-
\n
1.7
\n
0
\n
952.1
\n
-
\n
989.3
\n
-
\n
38.9
\n
0
\n
-
\n
1.7
\n
0.0
\n
-1.7
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Notes:
\n
Level 1: quoted prices on an active market for the asset or liability being measured.
\n
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived
\n
from prices).
\n
Level 3: unobservable inputs for the asset or liability.
\n
As the above table shows, at the reporting date, there were no differences between the carrying amounts of financial
\n
instruments and the corresponding fair value. In particular, among the non-current financial assets, obligations are mainly
\n
stated at fair value.
\n
Current and non-current loans are at both fixed and floating rates and are recognised at their amortised cost.
\n
As already described in \u2018Note 3.11 \u2013 Current financial liabilities\u2019 and in \u2018Note 2.11 \u2013 Current financial assets\u2019 of these
\n
notes, current financial assets/liabilities include the fair value, at the end of the reporting period, of the derivative finan-
\n
cial instruments used to hedge the purchase of commodities (negative for \u20ac 0.6 million), exchange rates (negative for \u20ac
\n
2.0 million) and interest rates (positive for \u20ac 32.5 million).
\n
For details on these transactions, see the section \u201cHedging instruments\u201d.
\n
\n \n
\n \n \n
\n
The Group is exposed to operations related financial risks, including credit risk, liquidity risk and market risk, and con-
\n
stantly monitors them.
\n
The following section provides qualitative and quantitative information about the impact of these risks on the Group.
\n
\n \n
Financial instruments at fair value through OCI include fair value of derivatives mainly on interest rates, exchange rates
\n
and commodities for which the Group has applied the IFRS 9 Hedge Accounting
\n
\n \n
\n \n
.
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
Credit risk is the Group\u2019s exposure to potential losses from failure by commercial counterparties to fulfil obligations they
\n
have entered into. Failure to collect or late collection of trade receivables could impact negatively on the Group\u2019s eco-
\n
nomic results and financial equilibrium.
\n
The Group\u2019s policy for managing credit risk from commercial activities envisages the preliminary assessment of counter-
\n
parties\u2019 creditworthiness, the management of credit limits and the adoption of risk mitigation instruments, such as the
\n
acquisition of bank guarantees, letters of credit and the external transfer of part of the insolvency risk through a global
\n
program of credit insurance.
\n
The portion of insured receivables, at 31 December 2022, was 64.2% of the total exposure.
\n
In order to mitigate credit risk, the Group has also adopted a policy which defines the strategic guidelines and operating
\n
rules for an effective system to control each company\u2019s credit.
\n
In addition, the policy defines the means for estimating expected losses, in accordance with the means set out hereafter
\n
and taking account of the mitigating factor represented by the aforementioned instruments for insured credit.
\n \n
\n \n
\n \n
\n \n
\n
For trade receivables, the Group uses the \u201c12-month ECL\u201d methodology to determine the lifetime of the expected losses
\n
associated with the probability of default over the next 12 months, using a forward-looking approach. The calculation of
\n
the expected credit loss, which is made on the residual life of the receivables at the date of their recognition in the
\n
financial statements and the subsequent reporting dates, considers a 12-month time horizon, since at the closing date of
\n
the period there was no significant increase in credit risk.
\n
In particular, the Group applies an approach defined as a \u201cprovision matrix\u201d, based on the division of trade receivables
\n
into clusters on the basis of type (ordinary/legal), ageing (past-due ranges) and country rating. For the purposes of deter-
\n
mining expected losses, the Group applies a definition of the default threshold for ordinary receivables of 120 days past
\n
due and 100% for receivables which have moved to legal default, since this is considered an effective indication of the
\n
threshold beyond which the receivable is considered unrecoverable. The calculation of the probability of default is there-
\n
fore based on the effective number of days the payment is overdue. In the same perimeter, for a percentage of 31% in
\n
terms of newly recalculated bad debt fund, the Group is applying a new impairment criteria based on the probability of
\n
default (PD) obtained from external sources and historical loss rates.
\n
As regards the write-off criteria, these are clearly based on the specific statutory and tax rules in force in the various
\n
countries where the Group companies are present.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Maximum risk exposure
\n
The maximum exposure to risk, net of guarantees, at 31 December 2022 was \u20ac 110.3 million. The Group has not identified
\n
any concentration risk on customers and on its trade receivables as the Group has a very diversified customers risk port-
\n
folio without any significant increase in a risky customer share. The Group seeks to mitigate the credit risk by depositing
\n
its liquidity in leading bank and corporate counterparties selected according to their credit quality.
\n
The table below summarises the types of instruments protecting against credit risk used by the Group:
\n
Type
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Receivables under insurance policies
\n
192.4
\n
62.4%
\n
156.6
\n
63.0%
\n
Other
\n
5.7
\n
1.9%
\n
9.6
\n
4.0%
\n
Total insured receivables
\n
198.1
\n
64.2%
\n
166.2
\n
67.0%
\n
Non-insured receivables
\n
103.3
\n
35.8%
\n
82.1
\n
33.0%
\n
Total receivables
\n
308.4
\n
100.0%
\n
248.3
\n
100.0%
\n
\u201cOther\u201d mainly includes receivables insured through letters of credit and bank guarantees.
\n \n
\n \n
\n
Overdue financial assets
\n
The instrument used for the classification and monitoring of credit is ageing, according to which the accounts payables
\n
are divided by their expiry dates, starting from the most recent (1-30 days) to the oldest (beyond 120 days).
\n
The amount of receivables past-due within 60 days is \u20ac 26 million (versus \u20ac 19.6 million at December 2021) whereas the
\n
amount of receivables past-due beyond 60 days is \u20ac 16.2 million (versus \u20ac 13.8 million at December 2021).
\n
For the purposes of representing trade receivables for issued invoices by past-due ranges, the following table is provided:
\n
Overdue ageing
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Overdue 0-30
\n
19.3
\n
5.1%
\n
14.2
\n
6.0%
\n
Overdue 31-60
\n
6.7
\n
2.2%
\n
5.4
\n
2.0%
\n
Overdue 61-120
\n
3.9
\n
1.2%
\n
1.8
\n
1.0%
\n
Due after 120 and legal
\n
12.3
\n
4.0%
\n
12.0
\n
4.0%
\n
The credit policy defines the depreciation grid for the statistical part differentiating percentage by aging and country risk
\n
class where the trade receivable amount is allocated.
\n
The current (not overdue) receivables amounted to \u20ac 266.2 million. Also these amounts are allocated to their country
\n
risk class and subject to depreciation according to the assigned percentage of devaluation. The related provision for bad
\n
debt amounted to \u20ac 3.2 million.
\n
For Companies with a credit insurance contract, percentages applied on the category insured customers will be lower by
\n
60% up to overdue below 180 days, while over 180 days the percentages remain the same.
\n
As at 31 December 2022 the Group did not measure trade receivables at amortized cost because there are no trade
\n
receivables with maturities greater than one year.
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Depreciation grid
\n
Trade receivables aging
\n
Country risk A
\n
Country risk B
\n
Country risk C
\n
Country risk D
\n
Overdue > 360 days
\n
70%
\n
80%
\n
90%
\n
100%
\n
Overdue 271- 360
\n
50%
\n
60%
\n
70%
\n
90%
\n
Overdue 181- 270
\n
35%
\n
40%
\n
50%
\n
70%
\n
Overdue 121-180
\n
20%
\n
25%
\n
35%
\n
50%
\n
Overdue 91-120
\n
12.5%
\n
15%
\n
20%
\n
30%
\n
Overdue 61-90
\n
7.5%
\n
10%
\n
12.5%
\n
20%
\n
Overdue 31-60
\n
2.5%
\n
5%
\n
7.5%
\n
10%
\n
Overdue 0-30
\n
1.25%
\n
1.5%
\n
2.5%
\n
5%
\n
Current (not overdue)
\n
0.5%
\n
0.75%
\n
1%
\n
1.5%
\n
Following is the summary of the specific and simplified ECLs assessments used to determine the bad debt provision:
\n
Analysis of bad debt provision
\n
31.12.2022
\n
31.12.2021
\n
Total receivables
\n
Gross
\n
325.4
\n
267.3
\n
Provision
\n
17.0
\n
19.0
\n
Net
\n
308.4
\n
248.3
\n
Receivables impaired on a specific basis
\n
Gross
\n
5.2
\n
6.7
\n
Provision
\n
4.7
\n
6.0
\n
Net
\n
0.5
\n
0.7
\n
Receivables impaired on a simplified ECLs
\n
Gross
\n
320.2
\n
260.6
\n
Provision
\n
12.3
\n
13.0
\n
Net
\n
307.9
\n
247.6
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n \n
\n
LIQUIDITY RISK
\n
As at 31 December 2022, the Group\u2019s \u201cOverall available liquidity\u201d, defined as the sum of cash and cash equivalents and
\n
the unused portion of committed credit lines (equal to \u20ac 430 million at December month-end) amounted to approxi-
\n
mately \u20ac 1,429 million.
\n
As at 31 December 2022, the Group's overall bank credit lines, including the used and unused credit lines (both committed
\n
and uncommitted) totalled approximately \u20ac1.7 billion, of which approximately 53% was drawn.
\n
The primary sources of liquidity for its business comprise cash generated from operations and bank financing.
\n
The Group periodically assesses its financial needs, in order to act in a timely manner to find the necessary additional
\n
resources and implements actions in response to its findings. The Group seeks to maintain an adequate mix of resources
\n
in terms of maturities, financial instruments and available amounts.
\n
The following table shows the contractual expiry dates for the financial liabilities other than derivatives. These figures are
\n
based on the non-discounted cash flows, including financial charges, as at the next closest date when the Group may be
\n
asked for the payment.
\n
Expiry dates 2022
\n
(in \u20ac million)
\n
< 1
\n
month
\n
2-6
\n
months
\n
6-12
\n
months
\n
1-5
\n
years
\n
> 5
\n
years
\n
Total
\n
Trade payables
\n
121.1
\n
359.9
\n
0.0
\n
0.4
\n
481.4
\n
Financial payables
\n
-
\n
Current financial liabilities
\n
10.7
\n
18.0
\n
20.9
\n
49.6
\n
-
\n
Current loans
\n
4.1
\n
28.6
\n
32.7
\n
-
\n
Non-current financial liabilities
\n
0.0
\n
-
\n
Non-current loans
\n
5.4
\n
5.0
\n
736.4
\n
169.9
\n
916.7
\n
Total financial payables
\n
10.7
\n
27.5
\n
54.5
\n
736.4
\n
169.9
\n
999.0
\n
Expiry dates
\n
131.8
\n
387.4
\n
54.5
\n
736.8
\n
169.9
\n
1,480.4
\n
\n \n
\n \n
\n \n
\n
The details for the expiry dates of financial and trade payables as at 31 December 2021 are shown in the table below:
\n
Expiry dates 2021
\n
(in \u20ac million)
\n
< 1
\n
month
\n
2-6
\n
months
\n
6-12
\n
months
\n
1-5
\n
years
\n
> 5
\n
years
\n
Total
\n
Trade payables
\n
120.0
\n
355.8
\n
0.3
\n
1.1
\n
477.2
\n
Financial payables
\n
-
\n
Current financial liabilities
\n
24.2
\n
20.8
\n
1.0
\n
46.1
\n
-
\n
Current loans
\n
2.0
\n
21.1
\n
23.2
\n
-
\n
Non-current financial liabilities
\n
-
\n
Non-current loans
\n
2.4
\n
2.4
\n
257.1
\n
207.8
\n
469.6
\n
Total financial payables
\n
24.2
\n
25.2
\n
24.5
\n
257.1
\n
207.8
\n
538.8
\n
Expiry dates
\n
144.2
\n
381.0
\n
24.8
\n
258.2
\n
207.8
\n
1,016.0
\n
\n \n \n
\n
MARKET RISK
\n
The Group is exposed to several market risks and, in particular, to the possibility that fluctuation in exchange rates, inter-
\n
est rates and commodity prices may affect the value of assets, liabilities and the expected cash flows.
\n
The market risk management policies applied to interest rates, exchange rates and commodities, are centrally defined to
\n
mitigate the above risks in a structured and proactive manner in the advancement of the Group's objectives.
\n
The three types of market risk can be characterized as described here below.
\n
Exchange rate risk
\n
The international context where the Group operates exposes the Group to the risk that changes in exchange rates may
\n
affect its financial results.
\n
The exposure to exchange rate risk determines:
\n
a)
\n
impacts on the operating result due to the different valuation of income and expense in another currency compared
\n
to the time when the price conditions were agreed upon (economic risk);
\n
b)
\n
impacts on the operating result due to the translation of trade or financial receivables/payables denominated in
\n
another currency (transaction risk);
\n
c)
\n
impacts on the consolidated financial statements due to the translation of assets and liabilities held by companies
\n
that prepare their financial statements in a currency other than the euro (translation risk).
\n
The most significant exposure in other currencies of the Group concerns the exchange rate of the euro against the US
\n
dollar, Chinese renminbi, Swiss franc and several other currencies for lower amounts.
\n
The economic risk is hedged through average rate forward financial instruments, i.e. hedging agreements against the
\n
volatility that characterises the currency markets, using as a reference the monthly average exchange rates, and that
\n
allow the Group to achieve the goals set out in its market risk management policy. In order to pursue these goals, the
\n
Group entered into derivatives hedging a set proportion of net exposure in currencies other than the Group's currency.
\n
At each reporting date, the exposure is presented in the financial statements using hedge accounting, which requires
\n
recognising derivatives at their fair value in the statement of financial position. The Group considered it possible to use
\n
hedge accounting since the hedging relationship is effective in accordance with IFRS 9.
\n
In order to minimise the exposure to the transaction risk, the Group uses derivative forward instruments which allow for
\n
protection against revaluations/write-downs at the due date of the credit and debit positions of a financial and commer-
\n
cial nature.
\n
The Group does not hedge the translation risk except for any distribution of intergroup dividends.
\n
As at the reporting date, the notional amount of forward currency contracts (sale and purchase) entered into by the
\n
Group, can be summarised as follows:
\n
\n \n
\n \n
\n
(in \u20ac million)
\n
Notional amount in
\n
Currency
\n
Notional amount in \u20ac
\n
CHF
\n
91.8
\n
93.2
\n
GBP
\n
10.8
\n
12.1
\n
AUD
\n
0.3
\n
0.2
\n
CNY
\n
-276.0
\n
-37.5
\n
USD
\n
44.1
\n
41.3
\n
At the same date, the fair value of the foreign exchange derivatives was overall negative, standing at \u20ac 2.0 million.
\n
In relation to exchange rate risk, the Group performed sensitivity analysis to measure how exchange rates fluctuations
\n
against the euro may affect pre-tax profitability. The sensitivity analysis was performed on the currencies to which the
\n
Group is exposed. The hypothesised scenario envisages a general variation in exchange rates of 2% and the following
\n
table shows the sensitivity, while keeping all the other variables fixed, in terms of the profit before tax and equity, gross
\n
of the tax effect:
\n
(in \u20ac million)
\n
Effect on profit
\n
before tax
\n
Effect on equity
\n
31.12.2022
\n
Foreign currency revaluation
\n
1.8
\n
1.8
\n
Foreign currency devaluation
\n
-1.8
\n
-1.8
\n
Commodity price fluctuation risk
\n
Profit and loss are affected by the performance of prices of raw materials, in particular as regards non-ferrous metals
\n
such as copper, nickel and aluminium, as well as precious metals like silver, which represent one of the primary compo-
\n
nents of the majority of products traded by the Group.
\n
For hedging purposes against the risk of fluctuating prices for copper, silver and nickel, the Group provided, through the
\n
parent company Ariston Holding N.V., for the necessary hedging measures in line with the procedures already adopted
\n
in the previous years aimed at reducing the impact of price volatility in purchases over coming years.
\n
Thus, the Group partly hedged purchases also for the years 2022, 2023 and 2024.
\n
In order to achieve the goals set out in the market risk management policy, the Group entered into derivatives hedging a
\n
set proportion of raw material purchases. At each reporting date, the exposure is presented in the financial statements
\n
using hedge accounting, which requires recognising derivatives at their fair value in the statement of financial position.
\n
The Group considered it possible to use hedge accounting since the hedging relationship is effective in accordance with
\n
IFRS 9.
\n
When these instruments no longer qualify for hedge accounting, they are recognised as trading instruments.
\n
At the reporting date, the notional amount of forward commodity contracts entered into by the Group, can be summa-
\n
rised as follows:
\n
Commodity
\n
Financial
\n
instruments
\n
Quantity/ton
\n
Total price
\n
(in \u20ac million)
\n
Copper
\n
Forward
\n
2,220.0
\n
18.0
\n
Nickel
\n
Average Forward
\n
26.0
\n
0.6
\n
Silver
\n
Average Forward
\n
2.4
\n
1.5
\n
Aluminium
\n
Forward
\n
1,265.0
\n
3.1
\n
Steel
\n
Average Forward
\n
6,600.0
\n
5.2
\n
At the same date, the fair value measurement of the derivatives on commodities showed a net negative amount of \u20ac 0.6
\n
million.
\n
Derivatives contracts entered into and closed during the year realized a positive result amounting to approximately \u20ac 0.3
\n
million which impacted the purchase cost of commodities.
\n
\n \n
\n
Interest rate risk
\n
Interest rate risk refers to the possible impact on the income statement deriving from fluctuations in the interest rates
\n
applied to the Group\u2019s loans.
\n
The amount of the Group\u2019s variable rate debt exposure, not hedged against interest rate risk, represents the main ele-
\n
ment of risk for the negative impact from an increase in market interest rates. The interest rate risk to which the Group
\n
is exposed originates primarily from bank financing.
\n
The Group's policy for managing this risk seeks to strike a balance between fixed and variable rate debts, taking into
\n
account the maturity profile, the short-term market outlook and with the purpose of containing funding costs.
\n
As at 31 December 2022, the Group had, for hedging purposes, interest rate swap (IRS) transactions for a total notional
\n
amount of \u20ac 418.4 million.
\n
At the same date, 51% of bank financing was hedged and 49% was at a variable rate, consistent with the Group policy.
\n
The sensitivity analysis of interest rate risk is conducted under the delta margin approach and is aimed at measuring how
\n
a given change in interest rates would affect financial expense associated with variable rate debt over the next 12 months.
\n
The sensitivity of the interest spread, assuming a generalised +/- 50 basis point change in interest rates, amounted to \u20ac
\n
+2.0 million and \u20ac -2.0 million, respectively, at the end of December 2022.
\n
\n \n \n
\n \n
\n
HEDGING INSTRUMENTS
\n
In summary, at 31 December 2022, the following financial hedging instruments are in place:
\n
\u2022
\n
against exchange rates \u2013 Swiss franc, British pound sterling, US dollar and Chinese renminbi;
\n
\u2022
\n
against commodities \u2013 copper, nickel, silver, aluminium and steel;
\n
\u2022
\n
against interest rates \u2013 medium/long-term floating rate loans.
\n
The hedging instruments applied to exchange rates were set up in order to reduce the Group\u2019s economic and transac-
\n
tional risk, and they meet all the formal requirements set out in the IAS/IFRSs and are therefore recognised in hedge
\n
accounting.
\n
The following table shows the details of hedging instruments in use as at 31 December 2022. The amounts are expressed
\n
in millions of euro:
\n
Hedging instruments
\n
31.12.2022
\n
(in \u20ac million)
\n
Nature of
\n
risk
\n
covered
\n
Fair value
\n
31.12.2022
\n
Non-current
\n
financial
\n
assets
\n
Current
\n
financial
\n
assets
\n
Non-
\n
current
\n
financial
\n
liabili-
\n
ties
\n
Current fi-
\n
nancial
\n
liabilities
\n
Total
\n
Interest Rate Swap
\n
Interest
\n
rate
\n
32.5
\n
32.5
\n
32.5
\n
Average Forward
\n
FX
\n
-2.0
\n
1.5
\n
-3.5
\n
-2.0
\n
Forward
\n
Commodity
\n
-1.1
\n
0.2
\n
-1.3
\n
-1.1
\n
Average Forward
\n
Commodity
\n
0.5
\n
0.5
\n
0.0
\n
0.5
\n
Hedging instruments
\n
30.0
\n
34.8
\n
-4.8
\n
30.0
\n
The following table shows the details of hedging instruments in use as at 31 December 2022. The amounts are expressed
\n
in millions of euro:
\n
Hedging instruments
\n
31.12.2021
\n
(in \u20ac million)
\n
Nature of
\n
risk covered
\n
Fair value
\n
31.12.2021
\n
Non-current
\n
financial
\n
assets
\n
Current
\n
financial
\n
assets
\n
Non-cur-
\n
rent
\n
financial
\n
liabilities
\n
Current
\n
financial
\n
liabilities
\n
Total
\n
Interest Rate Swap
\n
Interest rate
\n
-1.2
\n
-1.2
\n
-1.2
\n
Average Forward
\n
FX
\n
-1.2
\n
-1.2
\n
-1.2
\n
Forward
\n
Commodity
\n
0.8
\n
0.8
\n
0.8
\n
Average Forward
\n
Commodity
\n
-0.1
\n
-0.1
\n
-0.1
\n
Hedging instruments
\n
-1.7
\n
-1.2
\n
-0.5
\n
-1.7
\n
\n \n
\n \n
\n
RELATED PARTY DISCLOSURES
\n
At 31 December 2022 Ariston Holding N.V., controlled by Merloni Holding S.p.A., and its Italian subsidiaries, adopted the
\n
national tax consolidation scheme. At 31 December 2022, the income tax receivables and payables of the individual Italian
\n
companies were recorded from or to, respectively, Merloni Holding S.p.A. At 31 December 2022, the Company and its
\n
Italian subsidiaries had a payable position from Merloni Holding S.p.A. for \u20ac 6.6 million. All tax receivables and payables
\n
are non-interest-bearing.
\n
All transactions with related parties were carried out in the Group\u2019s interest.
\n
Based on the transactions carried out by Ariston Group during 2022, related parties are mainly represented by:
\n
\u2022
\n
companies directly and/or indirectly related to the majority shareholder of Ariston Holding N.V.;
\n
\u2022
\n
Directors and/or companies related to the same.
\n
The following table shows the figures of the main transactions with related parties:
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Receivables
\n
Payables
\n
Revenue
\n
Costs
\n
Receivables
\n
Payables
\n
Revenue
\n
Costs
\n
Fondazione A. Merloni
\n
0.0
\n
0.0
\n
0.0
\n
0.5
\n
0.0
\n
0.0
\n
0.0
\n
0.5
\n
Janus Immobili per l'industria
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.5
\n
Merloni Holding S.p.A.
\n
7.2
\n
13.8
\n
0.1
\n
0.1
\n
13.8
\n
10.5
\n
0.0
\n
0.0
\n
Novapower S.r.l.
\n
0.0
\n
0.3
\n
0.0
\n
0.3
\n
0.0
\n
0.4
\n
0.0
\n
0.3
\n
Novacapital S.r.l.
\n
0.1
\n
0.2
\n
0.1
\n
0.2
\n
0.0
\n
0.2
\n
0.0
\n
0.2
\n
Nova Re S.r.l.
\n
0.0
\n
0.3
\n
0.0
\n
0.2
\n
1.6
\n
0.0
\n
1.2
\n
0.0
\n
Total
\n
7.3
\n
14.6
\n
0.2
\n
1.3
\n
15.4
\n
11.1
\n
1.2
\n
1.5
\n
As regards transactions with related parties, it should be noted that they are not to be qualified as atypical or unusual
\n
but should be included in the normal course of operations carried out by Group companies. These transactions are reg-
\n
ulated by market conditions and based on the characteristics of the services provided.
\n
The main transactions with related parties concern Nova Re S.r.l., consisting of recharge of costs related to the structural
\n
investments made at Follina plant.
\n
In addition, members of the Ariston Board of Directors and executives with strategic responsibilities and their families
\n
are also considered related parties.
\n \n
\n
REMUNERATION PAID TO THE PARENT COMPANY\u2019S BOARD OF DIRECTORS
\n
Fees attributable to the year and represented by remuneration to Directors of the Parent Company, at 31 December
\n
2022, are summarised as follow:
\n
Office
\n
(in \u20ac million)
\n
Year
\n
Fixed remuneration
\n
Variable remuneration
\n
Base salary
\n
Fees
\n
Short-term incentive
\n
Directors
\n
2022
\n
1.9
\n
0.7
\n
1.1
\n
Total
\n
1.9
\n
0.7
\n
1.1
\n
Notes:
\n
-
\n
Fixed remuneration does not include Benefits and Perks
\n
-
\n
Variable remuneration does not include the Long-term incentive
\n
-
\n
Base Salary includes: i. for the Executive Chairman, the employee gross salary as well as the Executive Director fee; ii. For the Chief Executive Officer
\n
the Executive Director fee.
\n
-
\n
Fees include the Non-Executive Directors fees as well as the committee remuneration
\n
-
\n
Short-term incentive includes: the pay-out for the year of performance
\n
Both the remuneration of the Executive and the Non-Executive Directors have been included in the \u2018Note 3.1.1 \u2013 Stock-
\n
based incentive plans payments\u2019.
\n
\n \n
\n \n
\n
AUDIT FEES
\n
The fees for services provided by the Company\u2019s independent auditors, Ernst & Young Accountants LLP, and its
\n
member firms and/or affiliates, to the Company and its subsidiaries are broken down as follows:
\n
Audit fee
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Audit fees
\n
1.6
\n
1.8
\n
Other non-audit services
\n
0.4
\n
3.0
\n
Total
\n
2.0
\n
4.8
\n
The fees for audit services provided in 2022 by Ernst & Young Accountants LLP are equal to \u20ac 0.3 million (\u20ac 0.1 million in
\n
2021).
\n
The fees for non-audit services provided in 2022 by Ernst & Young Accountants LLP are equal to \u20ac 0.1 million (\u20ac 0.1 million
\n
in 2021).
\n
\n \n \n
\n
EVENTS AFTER THE REPORTING PERIOD
\n
On 2 January 2023, Ariston announced the completion of the acquisition of Centrotec Climate Systems GmbH (CCS) after
\n
all closing conditions were met, including the clearance granted by the competent merger-control authorities of Ger-
\n
many, the Netherlands and Austria.
\n
Ariston Holding N.V. purchased 100% of both ownership and voting rights CCS from its parent company, Centrotec SE,
\n
for \u20ac 635.1 million in cash and approximately 41.42 million Ariston\u2019s shares.
\n
Via its renowned brands Wolf, Brink, Pro-Klima and Ned Air, CCS is a leading player in the supply of heating, ventilation,
\n
air-handling and combined heat & power solutions, with ca. 2,500 people employed and a well-established presence in
\n
Germany, in the Netherlands and a solid exposure to many other European markets. The manufacturing base is mainly
\n
located in Germany, the Netherlands and Croatia. Revenues were \u20ac 599 million in 2021 with an EBITDA adjusted of \u20ac 84.8
\n
million and a robust growth in revenues and profitability in the last years: top line grew at a +11.2% CAGR between 2018
\n
and 2021, and by 16% YoY in H1 2022.
\n
At the date of the approval of this Annual Report 2022, the accounting of the business combination of CCS is not yet
\n
complete given that the Consolidated Financial Statements as at 31 December 2022 of CCS, at the moment of writing,
\n
has not yet been approved by its Board of Directors. For the initial accounting and opening balances of the business
\n
combination, Ariston Group will consider the figures from the Consolidated Financial Statements as at 31 December 2022
\n
given that the Closing Date of the acquisition of Centrotec group is 2 January 2023. No significant variations between the
\n
figures of Centrotec group as at 31 December 2022 and 2 January 2023 have been occurred at the date of the approval
\n
of this Annual Report 2022.
\n
According to IFRS 3, paragraph 64B, the Group disclosed the information for points from a) to e). The other financial
\n
information, from f) onward, is not available.
\n
For the reason explained above, Ariston will start to consolidate CCS in 2023 given that the control of assets has been
\n
obtained after the closing date (2 January 2023) and the business combination will be accounted accordingly in 2023 in
\n
line the standard IFRS 3.
\n
\n \n
\n
LIST OF COMPANIES AT 31 DECEMBER 2022
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Ariston Holding N.V.
\n
Netherlands
\n
EUR
\n
46,061,835.32
\n
TC
\n
parent
\n
company
\n
2
\n
AR1 S.r.l.
\n
Italy
\n
EUR
\n
200,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
3
\n
Ariston Benelux S.A./N.V.
\n
Belgium
\n
EUR
\n
15,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
4
\n
Ariston Deutschland GmbH
\n
Germany
\n
EUR
\n
255,700
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
5
\n
Ariston Egypt LLC
\n
Egypt
\n
EGP
\n
10,900,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
6
\n
Ariston France sas
\n
France
\n
EUR
\n
54,682,110
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Elco International GmbH
\n
0.01
\n
7
\n
Ariston Heating Technology
\n
Nigeria Ltd
\n
Nigeria
\n
NGN
\n
10,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
8
\n
Ariston Holding Egypt LLC
\n
Egypt
\n
EGP
\n
100,000
\n
TC
\n
100.00
\n
ATAG Heating B.V.
\n
99.00
\n
Ariston Holding N.V.
\n
0.01
\n
9
\n
Ariston Hung\u00e1ria kft
\n
Hungary
\n
HUF
\n
131,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
10
\n
Ariston Iberica S.L.
\n
Spain
\n
EUR
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
11
\n
Ariston Kazakhstan LLP
\n
Kazakhstan
\n
KZT
\n
212,100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
12
\n
Ariston Polska Sp. z o.o.
\n
Poland
\n
PLN
\n
12,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
13
\n
Ariston Pte Ltd
\n
Singapore
\n
SGD
\n
100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
14
\n
Ariston S.p.A.
\n
Italy
\n
EUR
\n
30,100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
15
\n
Ariston Sales Mexico S.A. de
\n
C.V.
\n
Mexico
\n
MXN
\n
302,188,920
\n
TC
\n
100.00
\n
Ariston Thermo Mexico
\n
S.A. de C.V
\n
0.03
\n
Calentadores de America
\n
S.A. de C.V.
\n
99.97
\n
16
\n
Ariston South Africa (Pty) Ltd
\n
South Africa
\n
ZAR
\n
100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
17
\n
Ariston
\n
Thermo (China) Co.,
\n
Ltd
\n
China
\n
CNY
\n
145,885,010
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
18
\n
Ariston Thermo Argentina
\n
S.r.l.
\n
Argentina
\n
ARS
\n
16,705,269
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.63
\n
Thermowatt S.p.A.
\n
0.37
\n
19
\n
Ariston Thermo Croatia Ltd
\n
Croatia
\n
HRK
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
20
\n
Ariston Thermo CZ sro
\n
Czech Republic
\n
CZK
\n
30,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
21
\n
Ariston Thermo Gulf Water
\n
Heating LLC
\n
UAE
\n
AED
\n
400,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
49.00
\n
Third parties
\n
51.00
\n
22
\n
Ariston Thermo Holding USA
\n
LLC
\n
USA
\n
USD
\n
63,037,687
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
23
\n
Ariston Thermo India Private
\n
Ltd
\n
India
\n
INR
\n
220,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
24
\n
Ariston Thermo Industrial Vi-
\n
etnam Ltd
\n
Vietnam
\n
VND
\n
41,600,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
25
\n
Ariston Thermo Isitma ve So-
\n
gutma Sistemleri Ithalat,
\n
Ihracat ve Dagitim Ltd Sirketi
\n
Turkey
\n
TRY
\n
66,157,500
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
26
\n
Ariston Thermo Maroc sa
\n
Morocco
\n
MAD
\n
3,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
27
\n
Ariston Thermo MEA SPC
\n
Bahrain
\n
USD
\n
12,338,306
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
28
\n
Ariston Thermo Mexico S.A.
\n
de C.V
\n
Mexico
\n
MXN
\n
2,350,000,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
99.99
\n
Ariston Thermo Holding
\n
USA LLC
\n
0.01
\n
29
\n
Ariston Thermo Parts & Ser-
\n
vices S.A.
\n
Switzerland
\n
EUR
\n
940.551
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
30
\n
Ariston Thermo Romania
\n
S.r.l.
\n
Romania
\n
RON
\n
29,041,740
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
31
\n
Ariston Thermo Rus LLC
\n
Russia
\n
RUB
\n
1,403,787,727
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
32
\n
Ariston Thermo Tunisie SA
\n
Tunisia
\n
EUR
\n
500,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
66.70
\n
Third parties
\n
33.30
\n
33
\n
Ariston Thermo UK Ltd
\n
UK
\n
GBP
\n
7,500,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
34
\n
Ariston Thermo USA LLC
\n
USA
\n
USD
\n
10,275,184
\n
TC
\n
100.00
\n
Ariston Thermo Holding
\n
USA LLC
\n
100.00
\n
35
\n
Ariston Thermo Vietnam Ltd
\n
Vietnam
\n
VND
\n
31,471,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
36
\n
Ariston Ukraine LLC
\n
Ukraine
\n
UAH
\n
38,705,753
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
37
\n
Atag Construction B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
38
\n
Atag Electronics
\n
B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
39
\n
Atag Engineering B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
40
\n
Atag Heating
\n
B.V.
\n
Netherlands
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
41
\n
Atag Heizungstechnik Gmbh
\n
Germany
\n
EUR
\n
512,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
42
\n
Atag Verwarming Belgie
\n
B.V.BA
\n
Belgium
\n
EUR
\n
18,600
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
43
\n
Atag Verwarming Nederland
\n
B.V.
\n
Netherlands
\n
EUR
\n
18,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
44
\n
ATM1 HR S.A. de C.V.
\n
Mexico
\n
MXN
\n
50,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
99.99
\n
Elcotherm AG
\n
0.01
\n
45
\n
Atmor (Dongguan) Electronic
\n
Technology Co. Ltd
\n
China
\n
USD
\n
1,000,000
\n
TC
\n
100.00
\n
Atmor Electronic Tech-
\n
nology Company Ltd
\n
100.00
\n
46
\n
Atmor Electronic Technology
\n
Company Ltd
\n
Hong Kong
\n
HKD
\n
10,000
\n
TC
\n
100.00
\n
Atmor Industries LTD
\n
100.00
\n
47
\n
Atmor Industries Ltd
\n
Israel
\n
USD
\n
1,790,409
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
48
\n
BCE S.r.l.
\n
Italy
\n
EUR
\n
10,400
\n
BUR
\n
100.00
\n
Ecoflam Bruciatori S.p.A.
\n
100.00
\n
49
\n
Calentadores de America S.A.
\n
de C.V.
\n
Mexico
\n
MXN
\n
1,226,593,637
\n
TC
\n
100.00
\n
Ariston
\n
Thermo Mexico
\n
S.A. de C.V
\n
99.99
\n
Atag Heating B.V.
\n
0.01
\n
50
\n
Chromagen Australia PTY LTD
\n
Australia
\n
AUD
\n
10,358,995
\n
TC
\n
100.00
\n
Elcotherm AG
\n
51.00
\n
Third parties
\n
49.00
\n
51
\n
Chromagen Israel Ltd
\n
Israel
\n
ILS
\n
10.901
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
52
\n
Cuenod sas
\n
France
\n
EUR
\n
15,422,390
\n
BUR
\n
100.00
\n
Ariston France sas
\n
100.00
\n
53
\n
Domotec AG
\n
Switzerland
\n
CHF
\n
50,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
54
\n
Ecoflam Bruciatori S.p.A.
\n
Italy
\n
EUR
\n
3,690,000
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
55
\n
Elco Austria GmbH
\n
Austria
\n
EUR
\n
35,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
56
\n
Elco B.V.
\n
Netherlands
\n
EUR
\n
2,046,004
\n
TC
\n
100.00
\n
Elco Burners B.V.
\n
100.00
\n
57
\n
Elco Belgium N.V./S.A.
\n
Belgium
\n
EUR
\n
2,650,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
99.99
\n
Elco B.V.
\n
0.01
\n
58
\n
Elco Burners B.V.
\n
Netherlands
\n
EUR
\n
22.734
\n
BUR
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
59
\n
Elco Burners GmbH
\n
Germany
\n
EUR
\n
25,000
\n
BUR
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
60
\n
Elco GmbH
\n
Germany
\n
EUR
\n
50,000
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
61
\n
Elco Heating Solutions Limi-
\n
ted
\n
UK
\n
GBP
\n
3,001,750
\n
TC
\n
100.00
\n
Ariston Themo UK Ltd
\n
100.00
\n
62
\n
Elco International GmbH
\n
Germany
\n
EUR
\n
8,691,962
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
63
\n
Elco Italia S.p.A.
\n
Italy
\n
EUR
\n
3,500,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
64
\n
Elcotherm AG
\n
Switzerland
\n
CHF
\n
1,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
65
\n
Gastech-Energi A/S
\n
Denmark
\n
DKK
\n
7,554,935
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
66
\n
Ingrado S.r.l.
\n
Italy
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
67
\n
Kesselheld Gmbh
\n
Germany
\n
EUR
\n
83,333
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
68
\n
NTI Boilers Inc
\n
Canada
\n
CAD
\n
43,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
69
\n
NTI-USA Inc
\n
USA
\n
USD
\n
100
\n
TC
\n
100.00
\n
NTI Boilers Inc
\n
100.00
\n
70
\n
PT Ariston Thermo Indonesia
\n
Indonesia
\n
IDR
\n
16,260,750,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston Pte Ltd.
\n
0.01
\n
71
\n
Racold
\n
Thermo Private Ltd
\n
India
\n
INR
\n
262,134,750
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
72
\n
S.H.E. d.o.o. Svilajnac
\n
Serbia
\n
RSD
\n
35,432,220
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
73
\n
SPM Innovation
\n
sas
\n
France
\n
EUR
\n
750,020
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
74
\n
Thermowatt (Wuxi) Electric
\n
Co., Ltd
\n
China
\n
CNY
\n
82,769,200
\n
COM
\n
100.00
\n
Ariston Thermo (China)
\n
Co., Ltd
\n
70.00
\n
Ariston Holding N.V.
\n
30.00
\n
75
\n
Thermowatt Professional
\n
S.r.l.
\n
Italy
\n
EUR
\n
100,000
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
76
\n
Thermowatt S.p.A.
\n
Italy
\n
EUR
\n
7,700,000
\n
COM
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
(*)
\n
Refers to the main Division
\n
LIST OF COMPANIES NOT INCLUDED IN THE SCOPE OF CONSOLIDATION
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct con-
\n
trolling in-
\n
terest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Joint venture \"Ariston
\n
Thermo - UTG LLC\" (**)
\n
Uzbekistan
\n
EUR
\n
1,000,000
\n
TC
\n
51.00
\n
Ariston Holding N.V.
\n
51.00
\n
49.00
\n
2
\n
Haas Heating B.V.
\n
Netherlands
\n
EUR
\n
100
\n
TC
\n
24.50
\n
Atag Heating B.V.
\n
24.50
\n
(**)
\n
The company was not included in the scope of consolidation because of its limited area of operation and little significance.
\n
\n \n
\n \n
\n \n
\n
1.
\n
Corporate information
\n
\n \n
\n \n
\n \n
Ariston Holding N.V. (hereafter also the \u201cParent Company\u201d) is a Company listed in Euronext Milan, Italy, having its statu-
\n
tory seat in The Netherlands and enrolled in the Chamber of Commerce \u2013 KVK \u2013 of Amsterdam (CCI no.83078738, RSIN
\n
no. 862717589, Establishment no. 000049275437, VAT Code: 01527100422, Fiscal Code 00760810572), with a secondary
\n
office in Via Broletto 44, Milano I-20121.
\n
The major business operations of the Group and of the Ariston Holding N.V. are in Italy and for that reason the Company
\n
has established a secondary seat with a permanent representative office, within the meaning of article 2508 of the Italian
\n
Civil Code.
\n
The Parent Company\u2019s primary purpose is to be a holding company and, with it, the management and coordination of a
\n
series of business processes for all the subsidiaries of the Group (hereinafter the \u201csubsidiaries\u201d). The Group, with its
\n
subsidiaries, is active in the business of the production and distribution of hot water and space heating and service solu-
\n
tions with a cutting-edge technology serving markets all around the world.
\n
At 31 December 2022, voting rights are as follows (not including 0.13% of Treasury Shares): Merloni Holding S.p.A. 74.03%
\n
and Amaranta S.r.l. 18.70% (equating to 74.60% of the share capital) while the market is entitled for the 7.27%.
\n
The issued share capital of the Company is held by Merloni Holding S.p.A. for 65.65%, Amaranta S.r.l. for 8.95%, the
\n
market for 24.95% and for 0.45% Ariston Holding (Treasury shares).
\n \n
\n
The consolidated financial statements of Ariston Group for the year ending 31 December 2022 were approved on 2 March
\n
2023 by the Board of Directors of the Parent Company and recognized for issue.
\n
\n \n
The Board of Directors reserves the right to amend the financial statements, up to the date of the Shareholders\u2019 meeting
\n
of the Parent Company, should any significant events occur that require changes to be made.
\n
The consolidated financial statements comprise the following: income statement, statement of other comprehensive
\n
income, statement of financial position, statement of cash flows, statement of changes equity (in euro million) and these
\n
notes to the financial statements.
\n \n
\n
The statement of cash flows has been prepared using the \u201cindirect method\u201d and shows the changes that occurred, during
\n
the period, in the \u201cshort-term financial position\u201d which measures the cash and cash equivalents (short-term and high
\n
liquidity financial investments promptly convertible and not subject to the risk of a change in value), classifying the finan-
\n
cial flows according to their origins, from operating activities, investments or financing.
\n
\n \n
These financial statements have been prepared in euro, the currency used in most of the Group\u2019s transactions. Transac-
\n
tions with foreign companies are included in the consolidated financial statements in compliance with the standards
\n
hereunder described.
\n \n
\n
2.
\n
Significant events of the year
\n
Significant events during the year relating to corporate actions, acquisitions agreements and other significant events
\n
impacting the results are reported in a dedicated section in the Director\u2019s report of this annual report. We summarize
\n
here below the main events of the year:
\n
\u2022
\n
On 5 January 2022, Ariston Group completed the acquisition of Chromagen group. Ariston Group acquired 100% of
\n
the shares and voting rights of the entity that operates in Israel and Spain. In Australia, Ariston Group acquired the
\n
shares owned by Kibbutz Shaar Haamakim while confirming both the current management team as well as the gov-
\n
ernance structure with the current minority shareholders. Chromagen develops, manufactures and markets renewa-
\n
ble hot water solutions, with a strong heritage in solar thermal technology;
\n
\n \n
\u2022
\n
On 14 June 2022, the Bahrain entity \u2018Ariston Thermo MEA SPC\u2019 was put into liquidation. As at 31 December 2022 the
\n
liquidation process is still ongoing. The contribution of the Bahrain entity on the Net Revenue of the Group is equal
\n
to nil and on the Total Assets of the Group is equal to 0.1%;
\n
\u2022
\n
On 13 July 2022, the Turkish subsidiary named \u2018Ariston Thermo Isitma ve Sogutma Sistemleri Ithalat, Ihracat ve Da-
\n
gitim Ltd Sirketi\u2019 was put into liquidation. As at 31 December 2022 the liquidation process is still ongoing. The contri-
\n
bution of the Turskish entity on the Net Revenue of the Group is equal to 0.1% and on the Total Assets of the Group
\n
is equal to 0.1%;
\n
\n \n
\n
\u2022
\n
In September Ariston Group signed an agreement for the acquisition of Centrotec Climate Systems GmbH, a leading
\n
player in the supply of heating, ventilation, air-handling and combined heat & power solutions, with around 2,500
\n
people employed and a well-established presence in Germany, in the Netherlands and a solid exposure to many other
\n
European markets. The manufacturing base is mainly located in Germany, the Netherlands and Croatia;
\n
\n \n
\u2022
\n
In 2022 Ariston Group suffered severe damage at the manufacturing plants of Genga and Cerreto D\u2019Esi due to the
\n
extraordinary flash floods on 15 September that hit Italy\u2019s central Marche region. The latter caused, in a nutshell,
\n
detriment to operating profit in different lines of the Profit and Loss. Up to 31 December 2022, Ariston Group identi-
\n
fied direct damages for \u20ac 15.3 million, only partially reimbursed on account for \u20ac 5 million by the insurance company.
\n
Furthermore, Ariston Group developed a calculation, which is still on going and not reimbursed in the financial period,
\n
in order to evaluate the business interruption which, at the moment, is still eating into the operating margin as volume
\n
losses and inefficiencies due to the production interruption caused by the extraordinary event. The full insurance
\n
reimbursement will occur upon full restart of the operations, likely later in 2023;
\n
\u2022
\n
In response to Russia\u2019s military aggression, the EU, the USA and the UK have adopted economic and financial sanctions
\n
designed to weaken Russia\u2019s ability to fund its war operation. The activity of our Ukraine entity is confirmed to be
\n
ongoing having mitigated the risks by creating provisions on both account receivables and inventories. Overall the
\n
business in Ukraine has low materiality and limited financial risks. The Russian operation is ongoing following all limi-
\n
tations introduced by the international community to business.
\n
\n \n
\n \n
\n
1.
\n
Corporate information
\n
\n \n
\n \n
\n
The consolidated financial statements of Ariston Group for the year ending 31 December 2022 were approved on 2 March
\n
2023 by the Board of Directors of the Parent Company and recognized for issue.
\n
\n \n
\n
1.
\n
Corporate information
\n
\n \n
\n
1.
\n
Corporate information
\n
\n
The statement of cash flows has been prepared using the \u201cindirect method\u201d and shows the changes that occurred, during
\n
the period, in the \u201cshort-term financial position\u201d which measures the cash and cash equivalents (short-term and high
\n
liquidity financial investments promptly convertible and not subject to the risk of a change in value), classifying the finan-
\n
cial flows according to their origins, from operating activities, investments or financing.
\n
\n
2.
\n
Significant events of the year
\n
Significant events during the year relating to corporate actions, acquisitions agreements and other significant events
\n
impacting the results are reported in a dedicated section in the Director\u2019s report of this annual report. We summarize
\n
here below the main events of the year:
\n
\u2022
\n
On 5 January 2022, Ariston Group completed the acquisition of Chromagen group. Ariston Group acquired 100% of
\n
the shares and voting rights of the entity that operates in Israel and Spain. In Australia, Ariston Group acquired the
\n
shares owned by Kibbutz Shaar Haamakim while confirming both the current management team as well as the gov-
\n
ernance structure with the current minority shareholders. Chromagen develops, manufactures and markets renewa-
\n
ble hot water solutions, with a strong heritage in solar thermal technology;
\n
\n
\u2022
\n
In September Ariston Group signed an agreement for the acquisition of Centrotec Climate Systems GmbH, a leading
\n
player in the supply of heating, ventilation, air-handling and combined heat & power solutions, with around 2,500
\n
people employed and a well-established presence in Germany, in the Netherlands and a solid exposure to many other
\n
European markets. The manufacturing base is mainly located in Germany, the Netherlands and Croatia;
\n
\n
Accounting treatment of the Atmor Industries Group option agreement clause \u2013 Relocation Project
\n
As a result of (i) the consideration of the characteristics of the control exercised due to the contractual commitments and
\n
(ii) the specific accounting policy adopted by the Group, the acquisition of 60% of the Atmor Group, which occurred on 7
\n
September 2017, with the simultaneous subscription of a put option in favour of the seller and a call option in favour of
\n
the buyer, relating to the residual 40% of the share capital. The option has been exercised in previous years.
\n
In 2020 as part of the option agreement the parties determined an adjustment to the price based on certain milestones
\n
linked to the Relocation Project. The amount is equal to \u20ac 0.3 million.
\n
The liability is expected to be paid in 2023 and is therefore classified under current liabilities.
\n
\n
Accounting treatment of the Chromagen Group Reps & Warranties
\n
On 5 January 2022, Ariston Group acquired 100% of the shares and voting rights of Chromagen Group that operates in
\n
Israel, Australia and Spain.
\n
The agreement set forth a series of representation and warranty clauses to cover Ariston Group against previous undis-
\n
closed liabilities not known at the date of the agreement. Ariston Group has withheld from the Purchase Price an amount
\n
to cover those risks which will be paid to the seller as per the agreement.
\n
The present value of this amount is equal to \u20ac 2.1 million and it is classified under current liabilities given that the expiry
\n
date is in 2023.
\n
The following table summarizes the fair value of financial liabilities described above:
\n
Company
\n
Type
\n
% Owner-
\n
ship
\n
Execution
\n
Date
\n
Local
\n
Currency
\n
\u20ac
\n
Atmor Industries Group
\n
Relocation Project
\n
n.a.
\n
2023
\n
0.3 USD
\n
0.3
\n
Chromagen Group
\n
Reps and Warranties
\n
n.a.
\n
2023
\n
6.9 ILS
\n
2.1
\n
Financial liabilities related to Invest-
\n
ments in Subsidiaries
\n
2.4
\n
Haas Heating BV
\n
Earn out
\n
n.a.
\n
2023
\n
1.5 EUR
\n
1.5
\n
Financial liabilities related to Investe-
\n
ments in Third Parties
\n
1.5
\n
\n \n
\n
Note 2.1.1 \u2013 Business combinations
\n
As mentioned in paragraph \u20182 - Significant events of the year\u2019, Ariston Group completed the acquisition of Chromagen
\n
group comprehensive of the total net assets and liabilities of the legal entities in Israel and Spain and the 51% of the
\n
Australian entity. The percentage is the same for both ownership and voting rights.
\n
On the date that these Consolidated Financial Statements were approved, based on the process of recognising and re-
\n
stating the information necessary for allocating the purchase prices of the various transactions at the fair value of the
\n
respective net assets acquired, the Group performed the purchase price allocation with the support of independent ex-
\n
ternal expert and it was finalized in a period not exceeding 12 months from the closing date of each transactions, in
\n
compliance with applicable accounting standards. The definitive purchase price allocation at the fair values of the assets
\n
acquired is shown in the table below. The values shown here are explained in the following notes to the financial state-
\n
ments, where they are highlighted as changes in the basis of consolidation for the purposes of the financial statements.
\n
All the values are expressed in Euro, converted using the exchange rate at the closing date, 5 January 2022.
\n
\n \n
\n \n
\n \n
\n
Value at acquisition date
\n
Book value at
\n
acquisition date
\n
Fair value at
\n
31 December 2022
\n
ASSETS
\n
Non-current assets
\n
Goodwill
\n
6.9
\n
0.0
\n
Other intangible assets
\n
0.1
\n
8.4
\n
Lands and buildings
\n
9.4
\n
9.4
\n
Plant and machinery
\n
2.4
\n
2.4
\n
Other property, plant and equipment
\n
1.8
\n
1.8
\n
Deferred tax assets
\n
0.6
\n
0.6
\n
Financial assets
\n
0.2
\n
0.2
\n
Other non-current assets
\n
1.4
\n
1.4
\n
Total non-current assets
\n
22.8
\n
24.2
\n
Current assets
\n
Inventories
\n
23.7
\n
22.6
\n
Trade receivables
\n
26.6
\n
26.5
\n
Tax receivables
\n
0.2
\n
0.2
\n
Current financial assets
\n
0.3
\n
0.3
\n
Other current assets
\n
1.8
\n
1.8
\n
Cash and cash equivalents
\n
1.1
\n
1.1
\n
Total current assets
\n
53.7
\n
52.5
\n
TOTAL ASSETS
\n
76.5
\n
76.8
\n
LIABILITIES
\n
Non-current liabilities
\n
Non-current provisions
\n
0.7
\n
0.7
\n
Post-employment benefits
\n
0.0
\n
0.0
\n
Non-current financing
\n
15.0
\n
15.0
\n
Other non-current liabilities
\n
0.4
\n
0.4
\n
Total non-current liabilities
\n
16.1
\n
16.1
\n
Current liabilities
\n
Trade payables
\n
21.1
\n
21.1
\n
Tax payables
\n
1.3
\n
1.3
\n
Current provisions
\n
0.6
\n
0.5
\n
Current financial liabilities
\n
15.4
\n
15.4
\n
Current loans
\n
2.9
\n
2.9
\n
Other current liabilities
\n
4.2
\n
4.2
\n
Total current liabilities
\n
45.5
\n
45.4
\n
Total Liabilities
\n
61.6
\n
61.5
\n
NET EQUITY ACQUIRED
\n
14.9
\n
15.2
\n
Group Equity
\n
9.0
\n
12.8
\n
Minority Equity
\n
5.9
\n
2.4
\n
TOTAL LIABILITIES AND EQUITY
\n
76.5
\n
76.8
\n
Total cost, of which:
\n
a
\n
25.8
\n
Price paid in cash, excluding ancillary costs
\n
23.9
\n
Present value of future payments
\n
2.0
\n
Net financial indebtedness acquired, of which:
\n
b
\n
(31.7)
\n
Cash, cash equivalent and financial assets
\n
1.6
\n
Financial debt acquired
\n
(33.3)
\n
Enterprise Value (a-b)
\n
57.5
\n \n
\n
Purchase price to be allocated
\n
25.8
\n
Price paid in cash, excluding ancillary costs
\n
23.9
\n
Present value of future payments
\n
2.0
\n
Allocation to:
\n
Net assets acquired
\n
12.8
\n
Goodwill generated by acquisition
\n
13.0
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
With the acquisition, Ariston Group further strengthens its competitive position in the renewable energy segment, ac-
\n
quiring a player with a leading position in Israel and a solid footprint in Australia. The Group separately recognized Good-
\n
will arising from the Chromagen acquisition (\u20ac 13.0 million) given that it represents the future economic benefits consid-
\n
ered arising from the business combination performed by the Group. Goodwill is not tax-deductible based on the relevant
\n
local regulations.
\n
\n \n
From the acquisition date of 5 January 2022, Chromagen contributed to Ariston Group's results in the amount of \u20ac 135.4
\n
million to net revenue.
\n
\n \n
\n \n
\n
3.
\n
Basis of accounting preparation
\n
The consolidated financial statements have been prepared in compliance with the International Financial Reporting
\n
Standards (\u201cIFRS\u201d), which include all International Accounting Standards in force as well as all interpretations provided
\n
by the IFRS Interpretation Committee previously known as International Financial Reporting Interpretations Committee
\n
(\u201cIFRIC\u201d) and in accordance with title 9 book 2 Dutch civil code.
\n
\n \n
The Parent Company prepares the separate financial statements in compliance with the \u201caccounting standards\u201d under
\n
the Section 2:362 (8) of the Dutch Civil Code, pursuant to Part 9 of Book 2. These accounting policies are applied in the
\n
consolidated IFRS financial statements and in the separate financial statements.
\n
The financial statements were prepared based on the going concern principle, on the cost basis and taking any value
\n
adjustments into account where appropriate, this is with the exception of statement of financial position items, such as
\n
financial instruments, that, under the IFRS, must be recognized at fair value and except in cases in which the IFRS allow a
\n
different valuation criterion to be used. The carrying amount of assets and liabilities subject to fair value hedging trans-
\n
actions, which would otherwise be recorded at cost, has been adjusted to take account of the changes in fair value at-
\n
tributable to the risk being hedged.
\n
The recognized financial statements provide comparative information in respect of previous period.
\n \n
\n
i.
\n
Going concern
\n
December 2022, for the sake of business that Ariston Group carried out among countries, cannot be considered
\n
anymore characterized by Covid-19 pandemic.
\n
Having the Group still in place a series of counter actions, learned by experience, mitigating risks brought by the
\n
virus, management does not consider at the moment an issue for the going concern.
\n
In compliance with IAS 38 and IAS 36, on a yearly basis, the Group verifies the recoverable value of intangible assets
\n
with indefinite life, the values were tested at aggregate level based on the values allocated to the three cash-gen-
\n
erating units (CGUs), identified as the lowest level at which the Goodwill is monitored by the Group and is considered
\n
appropriate, given the synergies and efficiencies obtained.
\n
The financials and economics prospective had been therefore not affected by the pandemic, the Group continues
\n
to be very sound, in all the economic and financial ratios, protecting its operations, revamping the investment plans
\n
and not exposed to any going concern issues.
\n
\n \n \n
\n
ii.
\n
Segment reporting
\n
For management purposes, the Group is organized into 3 business divisions (representing the three CGUs Thermal
\n
Comfort, Burners and Components), however from a segment reporting perspective, the Group discloses a unique
\n
reportable segment, in accordance with what provides the principle IFRS 8 \u2013 Operating Segments.
\n
\n \n
\n \n
\n \n
\n
In assessing performance, the management reviews financial information on an integrated basis for the Group as a
\n
whole, substantially in the form of, and on the same basis as, the Group\u2019s IFRS Financial Statements.
\n
The information required as per IFRS 8.31-34 have been disclosed within the Section \u20186. Disclosure to the Financial
\n
Statements\u2019.
\n
\n \n \n
\n
ii.
\n
Principles and basis of consolidation
\n
The consolidated financial statements include the financial statements of the Parent Company and of the Italian and
\n
foreign subsidiaries.
\n
For the purposes of preparing the IFRS-compliant consolidated financial statements, all consolidated companies
\n
have prepared a specific reporting package, at the same reference date, based on the IFRS standards that the Group
\n
has adopted and which are described below, entailing the reclassification and/or rectification of their accounting
\n
data prepared for disclosure purposes on a local level.
\n
The consolidated financial statements reflect the financial position and economic result of the Parent Company and
\n
of its subsidiaries, both directly and indirectly controlled. In particular, the consolidated entities are those under the
\n
control of Ariston Holding N.V. either through a direct or indirect equity ownership, with the majority of voting rights
\n
at the General Meeting, or through the exercise of a dominant influence over the financial and operating policies of
\n
the companies/entities, thus obtaining the related benefits, even without regard to equity ownership.
\n
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the
\n
investee and has the ability to affect those returns through its power over the investee. Specifically, the Group
\n
controls an investee if, and only if, the Group has:
\n
\u2022
\n
Power over the investee (i.e., existing rights that give it the current ability to direct the significant activities of
\n
the investee);
\n
\u2022
\n
Exposure, or rights, to variable returns from its involvement with the investee;
\n
\u2022
\n
The ability to use its power over the investee to affect its returns. Generally, there is a presumption that a ma-
\n
jority of voting rights results in control. To support this presumption and when the Group has less than a majority
\n
of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing
\n
whether it has power over an investee, including: the contractual arrangement(s) with the other vote holders of the
\n
investee; rights arising from other contractual arrangements and the Group\u2019s voting rights and potential voting
\n
rights.
\n
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
\n
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group
\n
obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
\n
income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated finan-
\n
cial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.
\n
All subsidiaries are consolidated from the date when the Group acquired their control. The entities are excluded
\n
from the consolidation area from the date when the Group ceases or loses control of them.
\n
Income statement and each component of OCI are attributed to the equity holders of the parent of the Group and
\n
to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
\n
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies
\n
in line with the Group\u2019s accounting policies.
\n
All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between mem-
\n
bers of the Group are eliminated in full on consolidation.
\n
Compared to 31 December 2021, the scope of consolidation changed due to the following transactions:
\n
\u2022
\n
On 5 January 2022, Ariston Group completed the acquisition of Chromagen group. Refer to \u2018Note 2.1.1 \u2013 Busi-
\n
ness combinations\u2019 for further details. Chromagen group is included in the Ariston Group\u2019s perimeter starting from
\n
January 2022;
\n
\u2022
\n
In November 2022, the French subsidiary STV France merged by incorporation into Ariston France with retroac-
\n
tive accounting effects as from 1 January 2022.
\n
\u2022
\n
In December 2022, the Spanish subsidiary Chromagen Espana S.L. merged by incorporation into Ariston Iberica
\n
SL with retroactive accounting effects as from 9 February 2022.
\n
\n \n
\n \n
\n \n
\n \n
\n
For further details on transactions that occurred in the year, reference should be made to the following section
\n
\u201cConsolidation and translation principles\u201d.
\n
The list of the companies included in the basis of consolidation at 31 December 2022 is presented in the \u201cList of
\n
companies at 31 December 2022\u201d.
\n \n
\n
Subsidiaries
\n
A subsidiary is a company where the financial and operating policies are determined by the Parent Company which aims
\n
to benefit from their activities.
\n
The economic result of the subsidiaries, whether acquired or transferred during the period, are included in the consoli-
\n
dated income statement from the actual acquisition date to the actual transfer date.
\n
The share of non-controlling interests in the net assets of the consolidated subsidiaries is identified separately from the
\n
equity attributable to owners of the Parent. This share is determined based on their percentage of interest held:
\n
a.
\n
in the fair values of the assets and liabilities recognized at the date of business combination. As regards the symmetric
\n
put and call contracts connected to the new acquisitions, they have been represented by recognizing under financial
\n
liabilities in the statement of financial position the fair value of the payable arising from the purchase and sale options
\n
signed at the moment of the acquisition on all the shares held by the minority shareholders, and without the recog-
\n
nition of the residual equity attributable to non-controlling interests (see the subsequent section: \u201cBusiness combi-
\n
nations\u201d);
\n
b.
\n
in the changes in equity after that date. Subsequently, the losses attributable to non-controlling interests exceeding
\n
the equity attributable to them, are recognized under non-controlling interests.
\n
\n \n \n
\n \n
\n \n
\n
Associates and joint ventures
\n
The consolidated financial statements include the portion of associates\u2019 economic results attributable to the Group. As-
\n
sociates are companies over which the Group has a significant influence, in terms of financial and operating policies,
\n
although not holding a control or joint control. The portion of these companies\u2019 economic results attributable to the
\n
Group is recognized according to the equity method, from the date when the significant influence starts until it ceases to
\n
exist. If the portion of losses of an associate attributable to the Group exceeds the carrying value of the investment
\n
recognized in the financial statements, the amount of this investment is waived and the portion of exceeding losses is
\n
not recognized, except and to the extent of the obligations assumed by the Group.
\n
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights
\n
to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which
\n
exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
\n
The considerations made in determining significant influence or joint control are similar to those necessary to determine
\n
control over subsidiaries. The Group\u2019s investment in its associate and joint venture are accounted for using the equity
\n
method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost.
\n
The carrying amount of the investment is adjusted to recognize changes in the Group\u2019s share of net assets of the associate
\n
or joint venture since the acquisition date.
\n
The income statement reflects the Group\u2019s share of the results of operations of the associate or joint venture. Any change
\n
in OCI of those investees is presented as part of the Group\u2019s OCI. In addition, when there has been a change recognized
\n
directly in the equity of the associate or joint venture, the Group recognized its share of any changes, when applicable,
\n
in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and
\n
the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.
\n
The aggregate of the Group\u2019s share of income statement of an associate and a joint venture is shown on the face of the
\n
income statement outside operating profit and represents profit or loss after tax and non-controlling interests in the
\n
subsidiaries of the associate or joint venture.
\n
The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. When
\n
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
\n
After application of the equity method, the Group determines whether it is necessary to recognize an impairment loss
\n
on its investment in its associate or joint venture. At each reporting date, the Group determines whether there is objective
\n
evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group calculates
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its
\n
carrying value, and then recognizes the loss within \u2018Share of profit of an associate and a joint venture\u2019 in the income
\n
statement.
\n
Upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and
\n
recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint
\n
venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from
\n
disposal is recognized in income statement.
\n
\n \n
\n \n
\n \n
Transactions excluded from the consolidation process
\n
All significant intra-group balances and transactions arising from intra-group transactions are eliminated in preparing the
\n
Consolidated Financial Statements.
\n \n
\n
Consolidation of foreign companies
\n
All assets and liabilities of foreign companies in a functional currency other than the euro, falling within the consolidation
\n
area, are converted using the exchange rates in effect at the reference date of the financial statements (method of the
\n
current exchange rates). Income and expenses are converted at the average exchange rate for the period. Should it be
\n
possible to identify the specific exchange rate for individual transactions, these items are converted at the related spot
\n
rate.
\n
The differences in the exchange rates on assets and liabilities of foreign companies in currencies other than the euro
\n
arising from application of this method are recognized in OCI and under equity until the shareholding is transferred.
\n
Goodwill and adjustments to the fair values generated by the acquisition of a foreign company, are recognized in their
\n
currency and converted using the exchange rate at the end of the reporting period.
\n
The following table contains the exchange rates against the euro applied in the translation of financial statements ex-
\n
pressed in another currency: (exchange rate = euro/currency).
\n
Currency
\n
2022
\n
2021
\n
Average exch. Rate
\n
Exch. Rate at
\n
31.12
\n
Average exch.
\n
Rate
\n
Exch. Rate at
\n
31.12
\n
EMIRATI DIRHAM
\n
AED
\n
3.8903
\n
3.9171
\n
4.3419
\n
4.1595
\n
ARGENTIN PESO
\n
ARS
\n
188.5033
\n
188.5033
\n
116.3622
\n
116.3622
\n
CANADIAN DOLLAR
\n
CAD
\n
1.3674
\n
1.4440
\n
1.4831
\n
1.4393
\n
SWISS FRANC
\n
CHF
\n
1.0034
\n
0.9847
\n
1.0815
\n
1.0331
\n
CHINESE RENMINBI
\n
CNY
\n
7.0931
\n
7.3582
\n
7.5688
\n
7.1947
\n
CZECH KORUNA
\n
CZK
\n
24.5718
\n
24.1160
\n
25.6498
\n
24.8580
\n
DANISH CROWN
\n
DKK
\n
7.4394
\n
7.4365
\n
7.4371
\n
7.4364
\n
EGYPTIAN POUND
\n
EGP
\n
20.0382
\n
26.3990
\n
18.4796
\n
17.8012
\n
ENGLISH STERLING
\n
GBP
\n
0.8526
\n
0.8869
\n
0.8603
\n
0.8403
\n
CROATIAN KUNA
\n
HRK
\n
7.5357
\n
7.5365
\n
7.5277
\n
7.5156
\n
HUNGARIAN FORINT
\n
HUF
\n
392.4311
\n
400.8700
\n
358.5748
\n
369.1900
\n
INDONESIAN RUPIAH
\n
IDR
\n
15,608.3120
\n
16,519.8200
\n
16,922.4258
\n
16,100.4200
\n
INDIAN RUPIAH
\n
INR
\n
82.4618
\n
88.1710
\n
87.2112
\n
84.2292
\n
KAZAKHSTANI TENGE
\n
KZT
\n
481.4668
\n
492.9000
\n
502.3916
\n
492.7500
\n
MOROCCO DIRHAM
\n
MAD
\n
10.6757
\n
11.1580
\n
10.6354
\n
10.4830
\n
MEXICAN PESO
\n
MXN
\n
20.9434
\n
20.8560
\n
23.9546
\n
23.1438
\n
NIGERIAN NAIRA
\n
NGN
\n
596.1000
\n
653.8300
\n
533.6500
\n
484.9200
\n
POLISH ZLOTY
\n
PLN
\n
4.6931
\n
4.6808
\n
4.5673
\n
4.5969
\n
ROMANIAN NEW LEU
\n
RON
\n
4.9299
\n
4.9495
\n
4.9256
\n
4.9490
\n
RUSSIAN RUBLE
\n
RUB
\n
69.6963
\n
77.8998
\n
86.8960
\n
85.3004
\n
SINGAPORE DOLLAR
\n
SGD
\n
1.4534
\n
1.4300
\n
1.5868
\n
1.5279
\n
TUNISIAN DINAR
\n
TND
\n
3.2514
\n
3.3221
\n
3.2883
\n
3.2603
\n
TURKISH NEW LIRA
\n
TRY
\n
16.5058
\n
19.9649
\n
10.5850
\n
15.2335
\n
UKRAINIAN HRYVNIA
\n
UAH
\n
34.5027
\n
39.0370
\n
32.0743
\n
30.9219
\n
US DOLLAR
\n
USD
\n
1.0536
\n
1.0666
\n
1.1802
\n
1.1326
\n
VIETNAM DONG
\n
VND
\n
24,497.4172
\n
25,183.0000
\n
26,702.7754
\n
25,819.0000
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
ISRAELI NEW SHEKEL
\n
ILS
\n
3.5400
\n
3.7554
\n
3.8242
\n
3.5159
\n
SERBIAN DINAR
\n
RSD
\n
117.4202
\n
117.3246
\n
117.5512
\n
117.6165
\n
AUSTRALIAD DOLLAR
\n
AUD
\n
1.5156
\n
1.5693
\n
1.5747
\n
1.5615
\n
SOUTH AFRICAN RAND
\n
ZAR
\n
17.1696
\n
18.0986
\n
17.4094
\n
18.0625
\n
The exchange rate used for the translation of the Nigerian naira into the presentation currency is that at which future
\n
cash flows would be realized, in accordance with IAS 21.
\n
\n \n \n
\n
Hyperinflation
\n
If a subsidiary operates in a hyperinflationary economy, the related economic and financial results are adjusted in accord-
\n
ance with the method established by IFRS, before being translated into the functional currency of the Group. The eco-
\n
nomic and financial data are restated in local currency, taking into account the current purchasing power of the currency
\n
on the financial statements date.
\n
Argentina and Turkey fulfilled the conditions which determine the presence of hyperinflation in accordance with the IFRS
\n
(International Financial Reporting Standards). Consequently, as of 1 July 2018, all the companies operating in Argentina
\n
have been required to apply IAS 29
\n
Financial Reporting in Hyperinflationary Economies
\n
in preparing the financial reports.
\n
With reference to the Group, the consolidated financial results at 31 December 2022 include the effects from the appli-
\n
cation of the aforementioned accounting standard as in the prior year.
\n
In accordance with the provisions of IAS 29, the remeasurement of the values in the financial statements overall requires
\n
the application of specific procedures and a measurement process which the Group had already started in the final part
\n
of 2018 for Argentina and of 2022 for Turkey. In particular:
\n
\u2022
\n
in relation to the income statement, costs and revenue were restated applying the change in the general consumer
\n
price index, in order to reflect the fall in purchasing power experienced by the local currency at 31 December 2022.
\n
For the purposes of the translation into euro of the income statement thus restated, the spot exchange rate at 31
\n
December 2022 was consistently applied rather than the average exchange rate for the period. With reference to
\n
consolidated net revenue in the period, the effect from the application of the standard entailed a negative change of
\n
Argentine peso 260.5 million equal to \u20ac 1.4 million in 2022. The effect of the hyperinflation for the Turkish entity has
\n
not been considered in the income statement given that the impact is not material and the entity has been in liqui-
\n
dation since July 2022;
\n
\u2022
\n
as regards the statement of financial position, the monetary elements were not restated, since they are already ex-
\n
pressed in the current unit of measurement at the end date of the period; the non-monetary assets and liabilities
\n
were instead restated to reflect the fall in purchasing power of the local currency that occurred from the date on
\n
which the assets and liabilities were initially recorded, at the end of the period.
\n
\n \n \n
\n \n
\n
Business combinations
\n
Business combinations are accounted for using the acquisition method.
\n
The Group verifies that a business combination falls within the definition of the IFRS guidance hence only if it is an inte-
\n
grated set of activities and assets that with the input and process, contribute to the output creation.
\n
The cost of acquisition is calculated as the sum of payments transferred as part of a business combination, measured at
\n
fair value, on the acquisition date and at the value of the portion of the shareholders\u2019 equity relating to non-controlling
\n
interests, measured at fair value of the net interest recognized for the acquired entity.
\n
Ancillary costs related to the transactions are recorded in the income statement at the time they are incurred. The Group
\n
determines that it has acquired a business when the acquired set of activities and assets include an input and a substan-
\n
tive process that together significantly contribute to the ability to create outputs.
\n
The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs
\n
acquired include an organized workforce with the necessary skills, knowledge, or experience to perform that process or
\n
it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be
\n
replaced without significant cost, effort, or delay in the ability to continue producing outputs.
\n
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification
\n
and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the
\n
acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Should the business combination be done in instalments, the interest previously held by the Group in the acquired busi-
\n
ness is revealed at fair value on the date control is acquired, and any resulting gains or losses are recognized in the income
\n
statement.
\n
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date.
\n
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
\n
equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of
\n \n
\n
IFRS 9
\n
Financial Instruments
\n
, is measured at fair value with the changes in fair value recognized in the income statement
\n
\n \n
in accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is remeasured at fair
\n
value at each reporting date with changes in fair value recognized in income statement.
\n
Any changes in the fair value of the net assets acquired, occurring once further information is available during the meas-
\n
urement period \u2013 12 months from the acquisition date \u2013 are included retrospectively in goodwill.
\n \n
\n \n
\n
Goodwill acquired in business combinations is initially measured at cost, as the excess of the sum of payments transferred,
\n
the value of the portion of shareholders\u2019 equity relating to non-controlling interests and the fair value of any interest
\n
previously held in the acquired business over the Group\u2019s portion of the net fair value of the identifiable assets, liabilities
\n
and contingent liabilities of the acquired company. If the value of the net assets acquired and liabilities assumed on the
\n
acquisition date exceeds the sum of the transferred payments, the value of the non-controlling interests\u2019 portion of
\n
shareholders\u2019 equity and the fair value of any interest previously held in the acquired business, this excess value is ac-
\n
counted for in profit and loss as income from the transaction.
\n
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impair-
\n
ment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s
\n
cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities
\n
of the acquiree are assigned to those units.
\n
\n \n
\n \n
\n \n
\n \n \n
\n
Recognition of non-controlling interests
\n
Non-controlling interests relate to the portion of a subsidiary\u2019s shareholders\u2019 equity that is not directly or indirectly at-
\n
tributable to the Group.
\n
Should cross-mechanisms, which give the Group the right to acquire the non-controlling interests (call option agreement)
\n
or rights to sell the same to the Group (put option agreement) or a combination of both (put and call option agreements)
\n
be in place, an analysis is made as to whether the risks and benefits connected with the share of legal ownership of the
\n
business to which the non-controlling interests pertain are broadly attributable to the latter or to the Group. These rights
\n
to purchase or sell the non-controlling interests may be set at a fixed price, a variable price or a fair value, and may be
\n
exercisable on a fixed date or at any time in the future. Each of these variables is examined to determine the effects on
\n
the presentation of the accounts.
\n
If the non-controlling interests have an effective involvement in the conduct of the business, those interest must continue
\n
to be represented in addition to the Group\u2019s shareholders\u2019 equity and, at the same time, the financial liability relating to
\n
the put and/or call option agreements must be recorded.
\n
\n \n \n
\n
Accounting treatment of the Atmor Industries Group option agreement clause \u2013 Relocation Project
\n
As a result of (i) the consideration of the characteristics of the control exercised due to the contractual commitments and
\n
(ii) the specific accounting policy adopted by the Group, the acquisition of 60% of the Atmor Group, which occurred on 7
\n
September 2017, with the simultaneous subscription of a put option in favour of the seller and a call option in favour of
\n
the buyer, relating to the residual 40% of the share capital. The option has been exercised in previous years.
\n
In 2020 as part of the option agreement the parties determined an adjustment to the price based on certain milestones
\n
linked to the Relocation Project. The amount is equal to \u20ac 0.3 million.
\n
The liability is expected to be paid in 2023 and is therefore classified under current liabilities.
\n
\n \n \n
\n
Accounting treatment of the Haas Heating BV earn out
\n
On 10 June 2021, 24.5% of the shares of the Dutch company Haas Heating B.V. were acquired by the Group through
\n
ATAG Heating B.V.
\n
The acquisition agreement sets forth a mechanism for a subsequent adjustment of the purchase price (earn-out) based
\n
on a sales scheme at specific dates falling under IAS 28
\n
Investment in Associates and Joint Ventures
\n
.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Therefore, a liability equal to the current value of the estimated obligation as at the date of its eventual future exercise,
\n
was recognized in the financial statements against the equity participation value.
\n
A Shares Purchase Agreement defined the purchase price at \u20ac 0.8 million and a liability for \u20ac 1.5 million is related to the
\n
earn-out program.
\n
For the remaining shares the agreement foresees a series of call options until December 2023 that are not reflected in
\n
the Financial Statements and are not material in terms of the amount.
\n
The company is treated as a joint venture due to the fact that the shareholder has a right of veto on important business
\n
decisions, thus valuing the participation with the equity method with the existence of a financial liability to be paid for
\n
acquiring the entity.
\n
\n \n \n
\n
Accounting treatment of the Chromagen Group Reps & Warranties
\n
On 5 January 2022, Ariston Group acquired 100% of the shares and voting rights of Chromagen Group that operates in
\n
Israel, Australia and Spain.
\n
The agreement set forth a series of representation and warranty clauses to cover Ariston Group against previous undis-
\n
closed liabilities not known at the date of the agreement. Ariston Group has withheld from the Purchase Price an amount
\n
to cover those risks which will be paid to the seller as per the agreement.
\n
The present value of this amount is equal to \u20ac 2.1 million and it is classified under current liabilities given that the expiry
\n
date is in 2023.
\n
The following table summarizes the fair value of financial liabilities described above:
\n
Company
\n
Type
\n
% Owner-
\n
ship
\n
Execution
\n
Date
\n
Local
\n
Currency
\n
\u20ac
\n
Atmor Industries Group
\n
Relocation Project
\n
n.a.
\n
2023
\n
0.3 USD
\n
0.3
\n
Chromagen Group
\n
Reps and Warranties
\n
n.a.
\n
2023
\n
6.9 ILS
\n
2.1
\n
Financial liabilities related to Invest-
\n
ments in Subsidiaries
\n
2.4
\n
Haas Heating BV
\n
Earn out
\n
n.a.
\n
2023
\n
1.5 EUR
\n
1.5
\n
Financial liabilities related to Investe-
\n
ments in Third Parties
\n
1.5
\n
\n \n
\n \n
\n
3.
\n
Basis of accounting preparation
\n
The consolidated financial statements have been prepared in compliance with the International Financial Reporting
\n
Standards (\u201cIFRS\u201d), which include all International Accounting Standards in force as well as all interpretations provided
\n
by the IFRS Interpretation Committee previously known as International Financial Reporting Interpretations Committee
\n
(\u201cIFRIC\u201d) and in accordance with title 9 book 2 Dutch civil code.
\n
\n
i.
\n
Going concern
\n
December 2022, for the sake of business that Ariston Group carried out among countries, cannot be considered
\n
anymore characterized by Covid-19 pandemic.
\n
Having the Group still in place a series of counter actions, learned by experience, mitigating risks brought by the
\n
virus, management does not consider at the moment an issue for the going concern.
\n
In compliance with IAS 38 and IAS 36, on a yearly basis, the Group verifies the recoverable value of intangible assets
\n
with indefinite life, the values were tested at aggregate level based on the values allocated to the three cash-gen-
\n
erating units (CGUs), identified as the lowest level at which the Goodwill is monitored by the Group and is considered
\n
appropriate, given the synergies and efficiencies obtained.
\n
The financials and economics prospective had been therefore not affected by the pandemic, the Group continues
\n
to be very sound, in all the economic and financial ratios, protecting its operations, revamping the investment plans
\n
and not exposed to any going concern issues.
\n
\n
ii.
\n
Segment reporting
\n
For management purposes, the Group is organized into 3 business divisions (representing the three CGUs Thermal
\n
Comfort, Burners and Components), however from a segment reporting perspective, the Group discloses a unique
\n
reportable segment, in accordance with what provides the principle IFRS 8 \u2013 Operating Segments.
\n
\n
In assessing performance, the management reviews financial information on an integrated basis for the Group as a
\n
whole, substantially in the form of, and on the same basis as, the Group\u2019s IFRS Financial Statements.
\n
The information required as per IFRS 8.31-34 have been disclosed within the Section \u20186. Disclosure to the Financial
\n
Statements\u2019.
\n
\n
ii.
\n
Principles and basis of consolidation
\n
The consolidated financial statements include the financial statements of the Parent Company and of the Italian and
\n
foreign subsidiaries.
\n
For the purposes of preparing the IFRS-compliant consolidated financial statements, all consolidated companies
\n
have prepared a specific reporting package, at the same reference date, based on the IFRS standards that the Group
\n
has adopted and which are described below, entailing the reclassification and/or rectification of their accounting
\n
data prepared for disclosure purposes on a local level.
\n
The consolidated financial statements reflect the financial position and economic result of the Parent Company and
\n
of its subsidiaries, both directly and indirectly controlled. In particular, the consolidated entities are those under the
\n
control of Ariston Holding N.V. either through a direct or indirect equity ownership, with the majority of voting rights
\n
at the General Meeting, or through the exercise of a dominant influence over the financial and operating policies of
\n
the companies/entities, thus obtaining the related benefits, even without regard to equity ownership.
\n
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the
\n
investee and has the ability to affect those returns through its power over the investee. Specifically, the Group
\n
controls an investee if, and only if, the Group has:
\n
\u2022
\n
Power over the investee (i.e., existing rights that give it the current ability to direct the significant activities of
\n
the investee);
\n
\u2022
\n
Exposure, or rights, to variable returns from its involvement with the investee;
\n
\u2022
\n
The ability to use its power over the investee to affect its returns. Generally, there is a presumption that a ma-
\n
jority of voting rights results in control. To support this presumption and when the Group has less than a majority
\n
of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing
\n
whether it has power over an investee, including: the contractual arrangement(s) with the other vote holders of the
\n
investee; rights arising from other contractual arrangements and the Group\u2019s voting rights and potential voting
\n
rights.
\n
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are
\n
changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group
\n
obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities,
\n
income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated finan-
\n
cial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.
\n
All subsidiaries are consolidated from the date when the Group acquired their control. The entities are excluded
\n
from the consolidation area from the date when the Group ceases or loses control of them.
\n
Income statement and each component of OCI are attributed to the equity holders of the parent of the Group and
\n
to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
\n
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies
\n
in line with the Group\u2019s accounting policies.
\n
All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between mem-
\n
bers of the Group are eliminated in full on consolidation.
\n
Compared to 31 December 2021, the scope of consolidation changed due to the following transactions:
\n
\u2022
\n
On 5 January 2022, Ariston Group completed the acquisition of Chromagen group. Refer to \u2018Note 2.1.1 \u2013 Busi-
\n
ness combinations\u2019 for further details. Chromagen group is included in the Ariston Group\u2019s perimeter starting from
\n
January 2022;
\n
\u2022
\n
In November 2022, the French subsidiary STV France merged by incorporation into Ariston France with retroac-
\n
tive accounting effects as from 1 January 2022.
\n
\u2022
\n
In December 2022, the Spanish subsidiary Chromagen Espana S.L. merged by incorporation into Ariston Iberica
\n
SL with retroactive accounting effects as from 9 February 2022.
\n
\n \n
\n
For further details on transactions that occurred in the year, reference should be made to the following section
\n
\u201cConsolidation and translation principles\u201d.
\n
The list of the companies included in the basis of consolidation at 31 December 2022 is presented in the \u201cList of
\n
companies at 31 December 2022\u201d.
\n \n
\n
Subsidiaries
\n
A subsidiary is a company where the financial and operating policies are determined by the Parent Company which aims
\n
to benefit from their activities.
\n
The economic result of the subsidiaries, whether acquired or transferred during the period, are included in the consoli-
\n
dated income statement from the actual acquisition date to the actual transfer date.
\n
The share of non-controlling interests in the net assets of the consolidated subsidiaries is identified separately from the
\n
equity attributable to owners of the Parent. This share is determined based on their percentage of interest held:
\n
a.
\n
in the fair values of the assets and liabilities recognized at the date of business combination. As regards the symmetric
\n
put and call contracts connected to the new acquisitions, they have been represented by recognizing under financial
\n
liabilities in the statement of financial position the fair value of the payable arising from the purchase and sale options
\n
signed at the moment of the acquisition on all the shares held by the minority shareholders, and without the recog-
\n
nition of the residual equity attributable to non-controlling interests (see the subsequent section: \u201cBusiness combi-
\n
nations\u201d);
\n
b.
\n
in the changes in equity after that date. Subsequently, the losses attributable to non-controlling interests exceeding
\n
the equity attributable to them, are recognized under non-controlling interests.
\n
\n \n \n
\n \n
\n \n
\n
Associates and joint ventures
\n
The consolidated financial statements include the portion of associates\u2019 economic results attributable to the Group. As-
\n
sociates are companies over which the Group has a significant influence, in terms of financial and operating policies,
\n
although not holding a control or joint control. The portion of these companies\u2019 economic results attributable to the
\n
Group is recognized according to the equity method, from the date when the significant influence starts until it ceases to
\n
exist. If the portion of losses of an associate attributable to the Group exceeds the carrying value of the investment
\n
recognized in the financial statements, the amount of this investment is waived and the portion of exceeding losses is
\n
not recognized, except and to the extent of the obligations assumed by the Group.
\n
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights
\n
to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which
\n
exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
\n
The considerations made in determining significant influence or joint control are similar to those necessary to determine
\n
control over subsidiaries. The Group\u2019s investment in its associate and joint venture are accounted for using the equity
\n
method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost.
\n
The carrying amount of the investment is adjusted to recognize changes in the Group\u2019s share of net assets of the associate
\n
or joint venture since the acquisition date.
\n
The income statement reflects the Group\u2019s share of the results of operations of the associate or joint venture. Any change
\n
in OCI of those investees is presented as part of the Group\u2019s OCI. In addition, when there has been a change recognized
\n
directly in the equity of the associate or joint venture, the Group recognized its share of any changes, when applicable,
\n
in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and
\n
the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.
\n
The aggregate of the Group\u2019s share of income statement of an associate and a joint venture is shown on the face of the
\n
income statement outside operating profit and represents profit or loss after tax and non-controlling interests in the
\n
subsidiaries of the associate or joint venture.
\n
The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. When
\n
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
\n
After application of the equity method, the Group determines whether it is necessary to recognize an impairment loss
\n
on its investment in its associate or joint venture. At each reporting date, the Group determines whether there is objective
\n
evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group calculates
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its
\n
carrying value, and then recognizes the loss within \u2018Share of profit of an associate and a joint venture\u2019 in the income
\n
statement.
\n
Upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and
\n
recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint
\n
venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from
\n
disposal is recognized in income statement.
\n
\n \n
\n \n
\n \n
Transactions excluded from the consolidation process
\n
All significant intra-group balances and transactions arising from intra-group transactions are eliminated in preparing the
\n
Consolidated Financial Statements.
\n \n
\n
Consolidation of foreign companies
\n
All assets and liabilities of foreign companies in a functional currency other than the euro, falling within the consolidation
\n
area, are converted using the exchange rates in effect at the reference date of the financial statements (method of the
\n
current exchange rates). Income and expenses are converted at the average exchange rate for the period. Should it be
\n
possible to identify the specific exchange rate for individual transactions, these items are converted at the related spot
\n
rate.
\n
The differences in the exchange rates on assets and liabilities of foreign companies in currencies other than the euro
\n
arising from application of this method are recognized in OCI and under equity until the shareholding is transferred.
\n
Goodwill and adjustments to the fair values generated by the acquisition of a foreign company, are recognized in their
\n
currency and converted using the exchange rate at the end of the reporting period.
\n
The following table contains the exchange rates against the euro applied in the translation of financial statements ex-
\n
pressed in another currency: (exchange rate = euro/currency).
\n
Currency
\n
2022
\n
2021
\n
Average exch. Rate
\n
Exch. Rate at
\n
31.12
\n
Average exch.
\n
Rate
\n
Exch. Rate at
\n
31.12
\n
EMIRATI DIRHAM
\n
AED
\n
3.8903
\n
3.9171
\n
4.3419
\n
4.1595
\n
ARGENTIN PESO
\n
ARS
\n
188.5033
\n
188.5033
\n
116.3622
\n
116.3622
\n
CANADIAN DOLLAR
\n
CAD
\n
1.3674
\n
1.4440
\n
1.4831
\n
1.4393
\n
SWISS FRANC
\n
CHF
\n
1.0034
\n
0.9847
\n
1.0815
\n
1.0331
\n
CHINESE RENMINBI
\n
CNY
\n
7.0931
\n
7.3582
\n
7.5688
\n
7.1947
\n
CZECH KORUNA
\n
CZK
\n
24.5718
\n
24.1160
\n
25.6498
\n
24.8580
\n
DANISH CROWN
\n
DKK
\n
7.4394
\n
7.4365
\n
7.4371
\n
7.4364
\n
EGYPTIAN POUND
\n
EGP
\n
20.0382
\n
26.3990
\n
18.4796
\n
17.8012
\n
ENGLISH STERLING
\n
GBP
\n
0.8526
\n
0.8869
\n
0.8603
\n
0.8403
\n
CROATIAN KUNA
\n
HRK
\n
7.5357
\n
7.5365
\n
7.5277
\n
7.5156
\n
HUNGARIAN FORINT
\n
HUF
\n
392.4311
\n
400.8700
\n
358.5748
\n
369.1900
\n
INDONESIAN RUPIAH
\n
IDR
\n
15,608.3120
\n
16,519.8200
\n
16,922.4258
\n
16,100.4200
\n
INDIAN RUPIAH
\n
INR
\n
82.4618
\n
88.1710
\n
87.2112
\n
84.2292
\n
KAZAKHSTANI TENGE
\n
KZT
\n
481.4668
\n
492.9000
\n
502.3916
\n
492.7500
\n
MOROCCO DIRHAM
\n
MAD
\n
10.6757
\n
11.1580
\n
10.6354
\n
10.4830
\n
MEXICAN PESO
\n
MXN
\n
20.9434
\n
20.8560
\n
23.9546
\n
23.1438
\n
NIGERIAN NAIRA
\n
NGN
\n
596.1000
\n
653.8300
\n
533.6500
\n
484.9200
\n
POLISH ZLOTY
\n
PLN
\n
4.6931
\n
4.6808
\n
4.5673
\n
4.5969
\n
ROMANIAN NEW LEU
\n
RON
\n
4.9299
\n
4.9495
\n
4.9256
\n
4.9490
\n
RUSSIAN RUBLE
\n
RUB
\n
69.6963
\n
77.8998
\n
86.8960
\n
85.3004
\n
SINGAPORE DOLLAR
\n
SGD
\n
1.4534
\n
1.4300
\n
1.5868
\n
1.5279
\n
TUNISIAN DINAR
\n
TND
\n
3.2514
\n
3.3221
\n
3.2883
\n
3.2603
\n
TURKISH NEW LIRA
\n
TRY
\n
16.5058
\n
19.9649
\n
10.5850
\n
15.2335
\n
UKRAINIAN HRYVNIA
\n
UAH
\n
34.5027
\n
39.0370
\n
32.0743
\n
30.9219
\n
US DOLLAR
\n
USD
\n
1.0536
\n
1.0666
\n
1.1802
\n
1.1326
\n
VIETNAM DONG
\n
VND
\n
24,497.4172
\n
25,183.0000
\n
26,702.7754
\n
25,819.0000
\n
\n \n
\n \n
\n \n
\n \n
\n
ISRAELI NEW SHEKEL
\n
ILS
\n
3.5400
\n
3.7554
\n
3.8242
\n
3.5159
\n
SERBIAN DINAR
\n
RSD
\n
117.4202
\n
117.3246
\n
117.5512
\n
117.6165
\n
AUSTRALIAD DOLLAR
\n
AUD
\n
1.5156
\n
1.5693
\n
1.5747
\n
1.5615
\n
SOUTH AFRICAN RAND
\n
ZAR
\n
17.1696
\n
18.0986
\n
17.4094
\n
18.0625
\n
The exchange rate used for the translation of the Nigerian naira into the presentation currency is that at which future
\n
cash flows would be realized, in accordance with IAS 21.
\n
\n \n \n
\n
Hyperinflation
\n
If a subsidiary operates in a hyperinflationary economy, the related economic and financial results are adjusted in accord-
\n
ance with the method established by IFRS, before being translated into the functional currency of the Group. The eco-
\n
nomic and financial data are restated in local currency, taking into account the current purchasing power of the currency
\n
on the financial statements date.
\n
Argentina and Turkey fulfilled the conditions which determine the presence of hyperinflation in accordance with the IFRS
\n
(International Financial Reporting Standards). Consequently, as of 1 July 2018, all the companies operating in Argentina
\n
have been required to apply IAS 29
\n
Financial Reporting in Hyperinflationary Economies
\n
in preparing the financial reports.
\n
With reference to the Group, the consolidated financial results at 31 December 2022 include the effects from the appli-
\n
cation of the aforementioned accounting standard as in the prior year.
\n
In accordance with the provisions of IAS 29, the remeasurement of the values in the financial statements overall requires
\n
the application of specific procedures and a measurement process which the Group had already started in the final part
\n
of 2018 for Argentina and of 2022 for Turkey. In particular:
\n
\u2022
\n
in relation to the income statement, costs and revenue were restated applying the change in the general consumer
\n
price index, in order to reflect the fall in purchasing power experienced by the local currency at 31 December 2022.
\n
For the purposes of the translation into euro of the income statement thus restated, the spot exchange rate at 31
\n
December 2022 was consistently applied rather than the average exchange rate for the period. With reference to
\n
consolidated net revenue in the period, the effect from the application of the standard entailed a negative change of
\n
Argentine peso 260.5 million equal to \u20ac 1.4 million in 2022. The effect of the hyperinflation for the Turkish entity has
\n
not been considered in the income statement given that the impact is not material and the entity has been in liqui-
\n
dation since July 2022;
\n
\u2022
\n
as regards the statement of financial position, the monetary elements were not restated, since they are already ex-
\n
pressed in the current unit of measurement at the end date of the period; the non-monetary assets and liabilities
\n
were instead restated to reflect the fall in purchasing power of the local currency that occurred from the date on
\n
which the assets and liabilities were initially recorded, at the end of the period.
\n
\n \n \n
\n \n
\n
Business combinations
\n
Business combinations are accounted for using the acquisition method.
\n
The Group verifies that a business combination falls within the definition of the IFRS guidance hence only if it is an inte-
\n
grated set of activities and assets that with the input and process, contribute to the output creation.
\n
The cost of acquisition is calculated as the sum of payments transferred as part of a business combination, measured at
\n
fair value, on the acquisition date and at the value of the portion of the shareholders\u2019 equity relating to non-controlling
\n
interests, measured at fair value of the net interest recognized for the acquired entity.
\n
Ancillary costs related to the transactions are recorded in the income statement at the time they are incurred. The Group
\n
determines that it has acquired a business when the acquired set of activities and assets include an input and a substan-
\n
tive process that together significantly contribute to the ability to create outputs.
\n
The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs
\n
acquired include an organized workforce with the necessary skills, knowledge, or experience to perform that process or
\n
it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be
\n
replaced without significant cost, effort, or delay in the ability to continue producing outputs.
\n
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification
\n
and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the
\n
acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Should the business combination be done in instalments, the interest previously held by the Group in the acquired busi-
\n
ness is revealed at fair value on the date control is acquired, and any resulting gains or losses are recognized in the income
\n
statement.
\n
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date.
\n
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
\n
equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of
\n \n
\n
IFRS 9
\n
Financial Instruments
\n
, is measured at fair value with the changes in fair value recognized in the income statement
\n
\n \n
in accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is remeasured at fair
\n
value at each reporting date with changes in fair value recognized in income statement.
\n
Any changes in the fair value of the net assets acquired, occurring once further information is available during the meas-
\n
urement period \u2013 12 months from the acquisition date \u2013 are included retrospectively in goodwill.
\n \n
\n \n
\n
Goodwill acquired in business combinations is initially measured at cost, as the excess of the sum of payments transferred,
\n
the value of the portion of shareholders\u2019 equity relating to non-controlling interests and the fair value of any interest
\n
previously held in the acquired business over the Group\u2019s portion of the net fair value of the identifiable assets, liabilities
\n
and contingent liabilities of the acquired company. If the value of the net assets acquired and liabilities assumed on the
\n
acquisition date exceeds the sum of the transferred payments, the value of the non-controlling interests\u2019 portion of
\n
shareholders\u2019 equity and the fair value of any interest previously held in the acquired business, this excess value is ac-
\n
counted for in profit and loss as income from the transaction.
\n
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impair-
\n
ment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s
\n
cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities
\n
of the acquiree are assigned to those units.
\n
\n \n
\n \n
\n \n
\n \n \n
\n
Recognition of non-controlling interests
\n
Non-controlling interests relate to the portion of a subsidiary\u2019s shareholders\u2019 equity that is not directly or indirectly at-
\n
tributable to the Group.
\n
Should cross-mechanisms, which give the Group the right to acquire the non-controlling interests (call option agreement)
\n
or rights to sell the same to the Group (put option agreement) or a combination of both (put and call option agreements)
\n
be in place, an analysis is made as to whether the risks and benefits connected with the share of legal ownership of the
\n
business to which the non-controlling interests pertain are broadly attributable to the latter or to the Group. These rights
\n
to purchase or sell the non-controlling interests may be set at a fixed price, a variable price or a fair value, and may be
\n
exercisable on a fixed date or at any time in the future. Each of these variables is examined to determine the effects on
\n
the presentation of the accounts.
\n
If the non-controlling interests have an effective involvement in the conduct of the business, those interest must continue
\n
to be represented in addition to the Group\u2019s shareholders\u2019 equity and, at the same time, the financial liability relating to
\n
the put and/or call option agreements must be recorded.
\n
\n \n \n
\n
Accounting treatment of the Atmor Industries Group option agreement clause \u2013 Relocation Project
\n
As a result of (i) the consideration of the characteristics of the control exercised due to the contractual commitments and
\n
(ii) the specific accounting policy adopted by the Group, the acquisition of 60% of the Atmor Group, which occurred on 7
\n
September 2017, with the simultaneous subscription of a put option in favour of the seller and a call option in favour of
\n
the buyer, relating to the residual 40% of the share capital. The option has been exercised in previous years.
\n
In 2020 as part of the option agreement the parties determined an adjustment to the price based on certain milestones
\n
linked to the Relocation Project. The amount is equal to \u20ac 0.3 million.
\n
The liability is expected to be paid in 2023 and is therefore classified under current liabilities.
\n
\n \n \n
\n
Accounting treatment of the Haas Heating BV earn out
\n
On 10 June 2021, 24.5% of the shares of the Dutch company Haas Heating B.V. were acquired by the Group through
\n
ATAG Heating B.V.
\n
The acquisition agreement sets forth a mechanism for a subsequent adjustment of the purchase price (earn-out) based
\n
on a sales scheme at specific dates falling under IAS 28
\n
Investment in Associates and Joint Ventures
\n
.
\n
\n \n
\n \n
\n \n
\n
Therefore, a liability equal to the current value of the estimated obligation as at the date of its eventual future exercise,
\n
was recognized in the financial statements against the equity participation value.
\n
A Shares Purchase Agreement defined the purchase price at \u20ac 0.8 million and a liability for \u20ac 1.5 million is related to the
\n
earn-out program.
\n
For the remaining shares the agreement foresees a series of call options until December 2023 that are not reflected in
\n
the Financial Statements and are not material in terms of the amount.
\n
The company is treated as a joint venture due to the fact that the shareholder has a right of veto on important business
\n
decisions, thus valuing the participation with the equity method with the existence of a financial liability to be paid for
\n
acquiring the entity.
\n
\n \n \n
\n
Accounting treatment of the Chromagen Group Reps & Warranties
\n
On 5 January 2022, Ariston Group acquired 100% of the shares and voting rights of Chromagen Group that operates in
\n
Israel, Australia and Spain.
\n
The agreement set forth a series of representation and warranty clauses to cover Ariston Group against previous undis-
\n
closed liabilities not known at the date of the agreement. Ariston Group has withheld from the Purchase Price an amount
\n
to cover those risks which will be paid to the seller as per the agreement.
\n
The present value of this amount is equal to \u20ac 2.1 million and it is classified under current liabilities given that the expiry
\n
date is in 2023.
\n
The following table summarizes the fair value of financial liabilities described above:
\n
Company
\n
Type
\n
% Owner-
\n
ship
\n
Execution
\n
Date
\n
Local
\n
Currency
\n
\u20ac
\n
Atmor Industries Group
\n
Relocation Project
\n
n.a.
\n
2023
\n
0.3 USD
\n
0.3
\n
Chromagen Group
\n
Reps and Warranties
\n
n.a.
\n
2023
\n
6.9 ILS
\n
2.1
\n
Financial liabilities related to Invest-
\n
ments in Subsidiaries
\n
2.4
\n
Haas Heating BV
\n
Earn out
\n
n.a.
\n
2023
\n
1.5 EUR
\n
1.5
\n
Financial liabilities related to Investe-
\n
ments in Third Parties
\n
1.5
\n
\n \n
\n \n
\n \n
\n
Note 2.1.1 \u2013 Business combinations
\n
As mentioned in paragraph \u20182 - Significant events of the year\u2019, Ariston Group completed the acquisition of Chromagen
\n
group comprehensive of the total net assets and liabilities of the legal entities in Israel and Spain and the 51% of the
\n
Australian entity. The percentage is the same for both ownership and voting rights.
\n
On the date that these Consolidated Financial Statements were approved, based on the process of recognising and re-
\n
stating the information necessary for allocating the purchase prices of the various transactions at the fair value of the
\n
respective net assets acquired, the Group performed the purchase price allocation with the support of independent ex-
\n
ternal expert and it was finalized in a period not exceeding 12 months from the closing date of each transactions, in
\n
compliance with applicable accounting standards. The definitive purchase price allocation at the fair values of the assets
\n
acquired is shown in the table below. The values shown here are explained in the following notes to the financial state-
\n
ments, where they are highlighted as changes in the basis of consolidation for the purposes of the financial statements.
\n
All the values are expressed in Euro, converted using the exchange rate at the closing date, 5 January 2022.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Value at acquisition date
\n
Book value at
\n
acquisition date
\n
Fair value at
\n
31 December 2022
\n
ASSETS
\n
Non-current assets
\n
Goodwill
\n
6.9
\n
0.0
\n
Other intangible assets
\n
0.1
\n
8.4
\n
Lands and buildings
\n
9.4
\n
9.4
\n
Plant and machinery
\n
2.4
\n
2.4
\n
Other property, plant and equipment
\n
1.8
\n
1.8
\n
Deferred tax assets
\n
0.6
\n
0.6
\n
Financial assets
\n
0.2
\n
0.2
\n
Other non-current assets
\n
1.4
\n
1.4
\n
Total non-current assets
\n
22.8
\n
24.2
\n
Current assets
\n
Inventories
\n
23.7
\n
22.6
\n
Trade receivables
\n
26.6
\n
26.5
\n
Tax receivables
\n
0.2
\n
0.2
\n
Current financial assets
\n
0.3
\n
0.3
\n
Other current assets
\n
1.8
\n
1.8
\n
Cash and cash equivalents
\n
1.1
\n
1.1
\n
Total current assets
\n
53.7
\n
52.5
\n
TOTAL ASSETS
\n
76.5
\n
76.8
\n
LIABILITIES
\n
Non-current liabilities
\n
Non-current provisions
\n
0.7
\n
0.7
\n
Post-employment benefits
\n
0.0
\n
0.0
\n
Non-current financing
\n
15.0
\n
15.0
\n
Other non-current liabilities
\n
0.4
\n
0.4
\n
Total non-current liabilities
\n
16.1
\n
16.1
\n
Current liabilities
\n
Trade payables
\n
21.1
\n
21.1
\n
Tax payables
\n
1.3
\n
1.3
\n
Current provisions
\n
0.6
\n
0.5
\n
Current financial liabilities
\n
15.4
\n
15.4
\n
Current loans
\n
2.9
\n
2.9
\n
Other current liabilities
\n
4.2
\n
4.2
\n
Total current liabilities
\n
45.5
\n
45.4
\n
Total Liabilities
\n
61.6
\n
61.5
\n
NET EQUITY ACQUIRED
\n
14.9
\n
15.2
\n
Group Equity
\n
9.0
\n
12.8
\n
Minority Equity
\n
5.9
\n
2.4
\n
TOTAL LIABILITIES AND EQUITY
\n
76.5
\n
76.8
\n
Total cost, of which:
\n
a
\n
25.8
\n
Price paid in cash, excluding ancillary costs
\n
23.9
\n
Present value of future payments
\n
2.0
\n
Net financial indebtedness acquired, of which:
\n
b
\n
(31.7)
\n
Cash, cash equivalent and financial assets
\n
1.6
\n
Financial debt acquired
\n
(33.3)
\n
Enterprise Value (a-b)
\n
57.5
\n \n
\n
Purchase price to be allocated
\n
25.8
\n
Price paid in cash, excluding ancillary costs
\n
23.9
\n
Present value of future payments
\n
2.0
\n
Allocation to:
\n
Net assets acquired
\n
12.8
\n
Goodwill generated by acquisition
\n
13.0
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
With the acquisition, Ariston Group further strengthens its competitive position in the renewable energy segment, ac-
\n
quiring a player with a leading position in Israel and a solid footprint in Australia. The Group separately recognized Good-
\n
will arising from the Chromagen acquisition (\u20ac 13.0 million) given that it represents the future economic benefits consid-
\n
ered arising from the business combination performed by the Group. Goodwill is not tax-deductible based on the relevant
\n
local regulations.
\n
\n \n
From the acquisition date of 5 January 2022, Chromagen contributed to Ariston Group's results in the amount of \u20ac 135.4
\n
million to net revenue.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
LIST OF COMPANIES AT 31 DECEMBER 2022
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Ariston Holding N.V.
\n
Netherlands
\n
EUR
\n
46,061,835.32
\n
TC
\n
parent
\n
company
\n
2
\n
AR1 S.r.l.
\n
Italy
\n
EUR
\n
200,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
3
\n
Ariston Benelux S.A./N.V.
\n
Belgium
\n
EUR
\n
15,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
4
\n
Ariston Deutschland GmbH
\n
Germany
\n
EUR
\n
255,700
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
5
\n
Ariston Egypt LLC
\n
Egypt
\n
EGP
\n
10,900,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
6
\n
Ariston France sas
\n
France
\n
EUR
\n
54,682,110
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Elco International GmbH
\n
0.01
\n
7
\n
Ariston Heating Technology
\n
Nigeria Ltd
\n
Nigeria
\n
NGN
\n
10,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
8
\n
Ariston Holding Egypt LLC
\n
Egypt
\n
EGP
\n
100,000
\n
TC
\n
100.00
\n
ATAG Heating B.V.
\n
99.00
\n
Ariston Holding N.V.
\n
0.01
\n
9
\n
Ariston Hung\u00e1ria kft
\n
Hungary
\n
HUF
\n
131,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
10
\n
Ariston Iberica S.L.
\n
Spain
\n
EUR
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
11
\n
Ariston Kazakhstan LLP
\n
Kazakhstan
\n
KZT
\n
212,100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
12
\n
Ariston Polska Sp. z o.o.
\n
Poland
\n
PLN
\n
12,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
13
\n
Ariston Pte Ltd
\n
Singapore
\n
SGD
\n
100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
14
\n
Ariston S.p.A.
\n
Italy
\n
EUR
\n
30,100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
15
\n
Ariston Sales Mexico S.A. de
\n
C.V.
\n
Mexico
\n
MXN
\n
302,188,920
\n
TC
\n
100.00
\n
Ariston Thermo Mexico
\n
S.A. de C.V
\n
0.03
\n
Calentadores de America
\n
S.A. de C.V.
\n
99.97
\n
16
\n
Ariston South Africa (Pty) Ltd
\n
South Africa
\n
ZAR
\n
100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
17
\n
Ariston
\n
Thermo (China) Co.,
\n
Ltd
\n
China
\n
CNY
\n
145,885,010
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
18
\n
Ariston Thermo Argentina
\n
S.r.l.
\n
Argentina
\n
ARS
\n
16,705,269
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.63
\n
Thermowatt S.p.A.
\n
0.37
\n
19
\n
Ariston Thermo Croatia Ltd
\n
Croatia
\n
HRK
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
20
\n
Ariston Thermo CZ sro
\n
Czech Republic
\n
CZK
\n
30,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
21
\n
Ariston Thermo Gulf Water
\n
Heating LLC
\n
UAE
\n
AED
\n
400,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
49.00
\n
Third parties
\n
51.00
\n
22
\n
Ariston Thermo Holding USA
\n
LLC
\n
USA
\n
USD
\n
63,037,687
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
23
\n
Ariston Thermo India Private
\n
Ltd
\n
India
\n
INR
\n
220,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
24
\n
Ariston Thermo Industrial Vi-
\n
etnam Ltd
\n
Vietnam
\n
VND
\n
41,600,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
25
\n
Ariston Thermo Isitma ve So-
\n
gutma Sistemleri Ithalat,
\n
Ihracat ve Dagitim Ltd Sirketi
\n
Turkey
\n
TRY
\n
66,157,500
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
26
\n
Ariston Thermo Maroc sa
\n
Morocco
\n
MAD
\n
3,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
27
\n
Ariston Thermo MEA SPC
\n
Bahrain
\n
USD
\n
12,338,306
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
28
\n
Ariston Thermo Mexico S.A.
\n
de C.V
\n
Mexico
\n
MXN
\n
2,350,000,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
99.99
\n
Ariston Thermo Holding
\n
USA LLC
\n
0.01
\n
29
\n
Ariston Thermo Parts & Ser-
\n
vices S.A.
\n
Switzerland
\n
EUR
\n
940.551
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
30
\n
Ariston Thermo Romania
\n
S.r.l.
\n
Romania
\n
RON
\n
29,041,740
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
31
\n
Ariston Thermo Rus LLC
\n
Russia
\n
RUB
\n
1,403,787,727
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
32
\n
Ariston Thermo Tunisie SA
\n
Tunisia
\n
EUR
\n
500,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
66.70
\n
Third parties
\n
33.30
\n
33
\n
Ariston Thermo UK Ltd
\n
UK
\n
GBP
\n
7,500,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
34
\n
Ariston Thermo USA LLC
\n
USA
\n
USD
\n
10,275,184
\n
TC
\n
100.00
\n
Ariston Thermo Holding
\n
USA LLC
\n
100.00
\n
35
\n
Ariston Thermo Vietnam Ltd
\n
Vietnam
\n
VND
\n
31,471,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
36
\n
Ariston Ukraine LLC
\n
Ukraine
\n
UAH
\n
38,705,753
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
37
\n
Atag Construction B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
38
\n
Atag Electronics
\n
B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
39
\n
Atag Engineering B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
40
\n
Atag Heating
\n
B.V.
\n
Netherlands
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
41
\n
Atag Heizungstechnik Gmbh
\n
Germany
\n
EUR
\n
512,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
42
\n
Atag Verwarming Belgie
\n
B.V.BA
\n
Belgium
\n
EUR
\n
18,600
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
43
\n
Atag Verwarming Nederland
\n
B.V.
\n
Netherlands
\n
EUR
\n
18,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
44
\n
ATM1 HR S.A. de C.V.
\n
Mexico
\n
MXN
\n
50,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
99.99
\n
Elcotherm AG
\n
0.01
\n
45
\n
Atmor (Dongguan) Electronic
\n
Technology Co. Ltd
\n
China
\n
USD
\n
1,000,000
\n
TC
\n
100.00
\n
Atmor Electronic Tech-
\n
nology Company Ltd
\n
100.00
\n
46
\n
Atmor Electronic Technology
\n
Company Ltd
\n
Hong Kong
\n
HKD
\n
10,000
\n
TC
\n
100.00
\n
Atmor Industries LTD
\n
100.00
\n
47
\n
Atmor Industries Ltd
\n
Israel
\n
USD
\n
1,790,409
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
48
\n
BCE S.r.l.
\n
Italy
\n
EUR
\n
10,400
\n
BUR
\n
100.00
\n
Ecoflam Bruciatori S.p.A.
\n
100.00
\n
49
\n
Calentadores de America S.A.
\n
de C.V.
\n
Mexico
\n
MXN
\n
1,226,593,637
\n
TC
\n
100.00
\n
Ariston
\n
Thermo Mexico
\n
S.A. de C.V
\n
99.99
\n
Atag Heating B.V.
\n
0.01
\n
50
\n
Chromagen Australia PTY LTD
\n
Australia
\n
AUD
\n
10,358,995
\n
TC
\n
100.00
\n
Elcotherm AG
\n
51.00
\n
Third parties
\n
49.00
\n
51
\n
Chromagen Israel Ltd
\n
Israel
\n
ILS
\n
10.901
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
52
\n
Cuenod sas
\n
France
\n
EUR
\n
15,422,390
\n
BUR
\n
100.00
\n
Ariston France sas
\n
100.00
\n
53
\n
Domotec AG
\n
Switzerland
\n
CHF
\n
50,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
54
\n
Ecoflam Bruciatori S.p.A.
\n
Italy
\n
EUR
\n
3,690,000
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
55
\n
Elco Austria GmbH
\n
Austria
\n
EUR
\n
35,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
56
\n
Elco B.V.
\n
Netherlands
\n
EUR
\n
2,046,004
\n
TC
\n
100.00
\n
Elco Burners B.V.
\n
100.00
\n
57
\n
Elco Belgium N.V./S.A.
\n
Belgium
\n
EUR
\n
2,650,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
99.99
\n
Elco B.V.
\n
0.01
\n
58
\n
Elco Burners B.V.
\n
Netherlands
\n
EUR
\n
22.734
\n
BUR
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
59
\n
Elco Burners GmbH
\n
Germany
\n
EUR
\n
25,000
\n
BUR
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
60
\n
Elco GmbH
\n
Germany
\n
EUR
\n
50,000
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
61
\n
Elco Heating Solutions Limi-
\n
ted
\n
UK
\n
GBP
\n
3,001,750
\n
TC
\n
100.00
\n
Ariston Themo UK Ltd
\n
100.00
\n
62
\n
Elco International GmbH
\n
Germany
\n
EUR
\n
8,691,962
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
63
\n
Elco Italia S.p.A.
\n
Italy
\n
EUR
\n
3,500,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
64
\n
Elcotherm AG
\n
Switzerland
\n
CHF
\n
1,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
65
\n
Gastech-Energi A/S
\n
Denmark
\n
DKK
\n
7,554,935
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
66
\n
Ingrado S.r.l.
\n
Italy
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
67
\n
Kesselheld Gmbh
\n
Germany
\n
EUR
\n
83,333
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
68
\n
NTI Boilers Inc
\n
Canada
\n
CAD
\n
43,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
69
\n
NTI-USA Inc
\n
USA
\n
USD
\n
100
\n
TC
\n
100.00
\n
NTI Boilers Inc
\n
100.00
\n
70
\n
PT Ariston Thermo Indonesia
\n
Indonesia
\n
IDR
\n
16,260,750,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston Pte Ltd.
\n
0.01
\n
71
\n
Racold
\n
Thermo Private Ltd
\n
India
\n
INR
\n
262,134,750
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
72
\n
S.H.E. d.o.o. Svilajnac
\n
Serbia
\n
RSD
\n
35,432,220
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
73
\n
SPM Innovation
\n
sas
\n
France
\n
EUR
\n
750,020
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
74
\n
Thermowatt (Wuxi) Electric
\n
Co., Ltd
\n
China
\n
CNY
\n
82,769,200
\n
COM
\n
100.00
\n
Ariston Thermo (China)
\n
Co., Ltd
\n
70.00
\n
Ariston Holding N.V.
\n
30.00
\n
75
\n
Thermowatt Professional
\n
S.r.l.
\n
Italy
\n
EUR
\n
100,000
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
76
\n
Thermowatt S.p.A.
\n
Italy
\n
EUR
\n
7,700,000
\n
COM
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
(*)
\n
Refers to the main Division
\n
LIST OF COMPANIES NOT INCLUDED IN THE SCOPE OF CONSOLIDATION
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct con-
\n
trolling in-
\n
terest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Joint venture \"Ariston
\n
Thermo - UTG LLC\" (**)
\n
Uzbekistan
\n
EUR
\n
1,000,000
\n
TC
\n
51.00
\n
Ariston Holding N.V.
\n
51.00
\n
49.00
\n
2
\n
Haas Heating B.V.
\n
Netherlands
\n
EUR
\n
100
\n
TC
\n
24.50
\n
Atag Heating B.V.
\n
24.50
\n
(**)
\n
The company was not included in the scope of consolidation because of its limited area of operation and little significance.
\n
\n \n
\n \n
\n \n
\n \n
\n
Subsidiaries
\n
A subsidiary is a company where the financial and operating policies are determined by the Parent Company which aims
\n
to benefit from their activities.
\n
The economic result of the subsidiaries, whether acquired or transferred during the period, are included in the consoli-
\n
dated income statement from the actual acquisition date to the actual transfer date.
\n
The share of non-controlling interests in the net assets of the consolidated subsidiaries is identified separately from the
\n
equity attributable to owners of the Parent. This share is determined based on their percentage of interest held:
\n
a.
\n
in the fair values of the assets and liabilities recognized at the date of business combination. As regards the symmetric
\n
put and call contracts connected to the new acquisitions, they have been represented by recognizing under financial
\n
liabilities in the statement of financial position the fair value of the payable arising from the purchase and sale options
\n
signed at the moment of the acquisition on all the shares held by the minority shareholders, and without the recog-
\n
nition of the residual equity attributable to non-controlling interests (see the subsequent section: \u201cBusiness combi-
\n
nations\u201d);
\n
b.
\n
in the changes in equity after that date. Subsequently, the losses attributable to non-controlling interests exceeding
\n
the equity attributable to them, are recognized under non-controlling interests.
\n
\n \n
\n \n
\n
Associates and joint ventures
\n
The consolidated financial statements include the portion of associates\u2019 economic results attributable to the Group. As-
\n
sociates are companies over which the Group has a significant influence, in terms of financial and operating policies,
\n
although not holding a control or joint control. The portion of these companies\u2019 economic results attributable to the
\n
Group is recognized according to the equity method, from the date when the significant influence starts until it ceases to
\n
exist. If the portion of losses of an associate attributable to the Group exceeds the carrying value of the investment
\n
recognized in the financial statements, the amount of this investment is waived and the portion of exceeding losses is
\n
not recognized, except and to the extent of the obligations assumed by the Group.
\n
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights
\n
to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which
\n
exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
\n
The considerations made in determining significant influence or joint control are similar to those necessary to determine
\n
control over subsidiaries. The Group\u2019s investment in its associate and joint venture are accounted for using the equity
\n
method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost.
\n
The carrying amount of the investment is adjusted to recognize changes in the Group\u2019s share of net assets of the associate
\n
or joint venture since the acquisition date.
\n
The income statement reflects the Group\u2019s share of the results of operations of the associate or joint venture. Any change
\n
in OCI of those investees is presented as part of the Group\u2019s OCI. In addition, when there has been a change recognized
\n
directly in the equity of the associate or joint venture, the Group recognized its share of any changes, when applicable,
\n
in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and
\n
the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.
\n
The aggregate of the Group\u2019s share of income statement of an associate and a joint venture is shown on the face of the
\n
income statement outside operating profit and represents profit or loss after tax and non-controlling interests in the
\n
subsidiaries of the associate or joint venture.
\n
The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. When
\n
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
\n
After application of the equity method, the Group determines whether it is necessary to recognize an impairment loss
\n
on its investment in its associate or joint venture. At each reporting date, the Group determines whether there is objective
\n
evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group calculates
\n
\n \n
\n \n
\n \n
\n \n
\n
the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its
\n
carrying value, and then recognizes the loss within \u2018Share of profit of an associate and a joint venture\u2019 in the income
\n
statement.
\n
Upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and
\n
recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint
\n
venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from
\n
disposal is recognized in income statement.
\n
\n \n
\n \n
\n
viii.
\n
Investments in associates
\n
Investments in associates are recognized according to the equity method, starting from the date of the significant influ-
\n
ence by the Group up to the time when this influence ceases to exist, as described in the previous paragraph \u201cConsolida-
\n
tion and translation principles\u201d.
\n
\n \n
\n
Associates and joint ventures
\n
The consolidated financial statements include the portion of associates\u2019 economic results attributable to the Group. As-
\n
sociates are companies over which the Group has a significant influence, in terms of financial and operating policies,
\n
although not holding a control or joint control. The portion of these companies\u2019 economic results attributable to the
\n
Group is recognized according to the equity method, from the date when the significant influence starts until it ceases to
\n
exist. If the portion of losses of an associate attributable to the Group exceeds the carrying value of the investment
\n
recognized in the financial statements, the amount of this investment is waived and the portion of exceeding losses is
\n
not recognized, except and to the extent of the obligations assumed by the Group.
\n
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights
\n
to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which
\n
exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
\n
The considerations made in determining significant influence or joint control are similar to those necessary to determine
\n
control over subsidiaries. The Group\u2019s investment in its associate and joint venture are accounted for using the equity
\n
method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost.
\n
The carrying amount of the investment is adjusted to recognize changes in the Group\u2019s share of net assets of the associate
\n
or joint venture since the acquisition date.
\n
The income statement reflects the Group\u2019s share of the results of operations of the associate or joint venture. Any change
\n
in OCI of those investees is presented as part of the Group\u2019s OCI. In addition, when there has been a change recognized
\n
directly in the equity of the associate or joint venture, the Group recognized its share of any changes, when applicable,
\n
in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and
\n
the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.
\n
The aggregate of the Group\u2019s share of income statement of an associate and a joint venture is shown on the face of the
\n
income statement outside operating profit and represents profit or loss after tax and non-controlling interests in the
\n
subsidiaries of the associate or joint venture.
\n
The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. When
\n
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
\n
After application of the equity method, the Group determines whether it is necessary to recognize an impairment loss
\n
on its investment in its associate or joint venture. At each reporting date, the Group determines whether there is objective
\n
evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group calculates
\n
\n \n
\n \n
\n
the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its
\n
carrying value, and then recognizes the loss within \u2018Share of profit of an associate and a joint venture\u2019 in the income
\n
statement.
\n
Upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and
\n
recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint
\n
venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from
\n
disposal is recognized in income statement.
\n
\n \n
\n \n
\n
viii.
\n
Investments in associates
\n
Investments in associates are recognized according to the equity method, starting from the date of the significant influ-
\n
ence by the Group up to the time when this influence ceases to exist, as described in the previous paragraph \u201cConsolida-
\n
tion and translation principles\u201d.
\n
\n \n
\n
Associates and joint ventures
\n
The consolidated financial statements include the portion of associates\u2019 economic results attributable to the Group. As-
\n
sociates are companies over which the Group has a significant influence, in terms of financial and operating policies,
\n
although not holding a control or joint control. The portion of these companies\u2019 economic results attributable to the
\n
Group is recognized according to the equity method, from the date when the significant influence starts until it ceases to
\n
exist. If the portion of losses of an associate attributable to the Group exceeds the carrying value of the investment
\n
recognized in the financial statements, the amount of this investment is waived and the portion of exceeding losses is
\n
not recognized, except and to the extent of the obligations assumed by the Group.
\n
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights
\n
to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which
\n
exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
\n
The considerations made in determining significant influence or joint control are similar to those necessary to determine
\n
control over subsidiaries. The Group\u2019s investment in its associate and joint venture are accounted for using the equity
\n
method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost.
\n
The carrying amount of the investment is adjusted to recognize changes in the Group\u2019s share of net assets of the associate
\n
or joint venture since the acquisition date.
\n
The income statement reflects the Group\u2019s share of the results of operations of the associate or joint venture. Any change
\n
in OCI of those investees is presented as part of the Group\u2019s OCI. In addition, when there has been a change recognized
\n
directly in the equity of the associate or joint venture, the Group recognized its share of any changes, when applicable,
\n
in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and
\n
the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.
\n
The aggregate of the Group\u2019s share of income statement of an associate and a joint venture is shown on the face of the
\n
income statement outside operating profit and represents profit or loss after tax and non-controlling interests in the
\n
subsidiaries of the associate or joint venture.
\n
The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. When
\n
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
\n
After application of the equity method, the Group determines whether it is necessary to recognize an impairment loss
\n
on its investment in its associate or joint venture. At each reporting date, the Group determines whether there is objective
\n
evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group calculates
\n
\n
the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its
\n
carrying value, and then recognizes the loss within \u2018Share of profit of an associate and a joint venture\u2019 in the income
\n
statement.
\n
Upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and
\n
recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint
\n
venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from
\n
disposal is recognized in income statement.
\n
\n
Consolidation of foreign companies
\n
All assets and liabilities of foreign companies in a functional currency other than the euro, falling within the consolidation
\n
area, are converted using the exchange rates in effect at the reference date of the financial statements (method of the
\n
current exchange rates). Income and expenses are converted at the average exchange rate for the period. Should it be
\n
possible to identify the specific exchange rate for individual transactions, these items are converted at the related spot
\n
rate.
\n
The differences in the exchange rates on assets and liabilities of foreign companies in currencies other than the euro
\n
arising from application of this method are recognized in OCI and under equity until the shareholding is transferred.
\n
Goodwill and adjustments to the fair values generated by the acquisition of a foreign company, are recognized in their
\n
currency and converted using the exchange rate at the end of the reporting period.
\n
The following table contains the exchange rates against the euro applied in the translation of financial statements ex-
\n
pressed in another currency: (exchange rate = euro/currency).
\n
Currency
\n
2022
\n
2021
\n
Average exch. Rate
\n
Exch. Rate at
\n
31.12
\n
Average exch.
\n
Rate
\n
Exch. Rate at
\n
31.12
\n
EMIRATI DIRHAM
\n
AED
\n
3.8903
\n
3.9171
\n
4.3419
\n
4.1595
\n
ARGENTIN PESO
\n
ARS
\n
188.5033
\n
188.5033
\n
116.3622
\n
116.3622
\n
CANADIAN DOLLAR
\n
CAD
\n
1.3674
\n
1.4440
\n
1.4831
\n
1.4393
\n
SWISS FRANC
\n
CHF
\n
1.0034
\n
0.9847
\n
1.0815
\n
1.0331
\n
CHINESE RENMINBI
\n
CNY
\n
7.0931
\n
7.3582
\n
7.5688
\n
7.1947
\n
CZECH KORUNA
\n
CZK
\n
24.5718
\n
24.1160
\n
25.6498
\n
24.8580
\n
DANISH CROWN
\n
DKK
\n
7.4394
\n
7.4365
\n
7.4371
\n
7.4364
\n
EGYPTIAN POUND
\n
EGP
\n
20.0382
\n
26.3990
\n
18.4796
\n
17.8012
\n
ENGLISH STERLING
\n
GBP
\n
0.8526
\n
0.8869
\n
0.8603
\n
0.8403
\n
CROATIAN KUNA
\n
HRK
\n
7.5357
\n
7.5365
\n
7.5277
\n
7.5156
\n
HUNGARIAN FORINT
\n
HUF
\n
392.4311
\n
400.8700
\n
358.5748
\n
369.1900
\n
INDONESIAN RUPIAH
\n
IDR
\n
15,608.3120
\n
16,519.8200
\n
16,922.4258
\n
16,100.4200
\n
INDIAN RUPIAH
\n
INR
\n
82.4618
\n
88.1710
\n
87.2112
\n
84.2292
\n
KAZAKHSTANI TENGE
\n
KZT
\n
481.4668
\n
492.9000
\n
502.3916
\n
492.7500
\n
MOROCCO DIRHAM
\n
MAD
\n
10.6757
\n
11.1580
\n
10.6354
\n
10.4830
\n
MEXICAN PESO
\n
MXN
\n
20.9434
\n
20.8560
\n
23.9546
\n
23.1438
\n
NIGERIAN NAIRA
\n
NGN
\n
596.1000
\n
653.8300
\n
533.6500
\n
484.9200
\n
POLISH ZLOTY
\n
PLN
\n
4.6931
\n
4.6808
\n
4.5673
\n
4.5969
\n
ROMANIAN NEW LEU
\n
RON
\n
4.9299
\n
4.9495
\n
4.9256
\n
4.9490
\n
RUSSIAN RUBLE
\n
RUB
\n
69.6963
\n
77.8998
\n
86.8960
\n
85.3004
\n
SINGAPORE DOLLAR
\n
SGD
\n
1.4534
\n
1.4300
\n
1.5868
\n
1.5279
\n
TUNISIAN DINAR
\n
TND
\n
3.2514
\n
3.3221
\n
3.2883
\n
3.2603
\n
TURKISH NEW LIRA
\n
TRY
\n
16.5058
\n
19.9649
\n
10.5850
\n
15.2335
\n
UKRAINIAN HRYVNIA
\n
UAH
\n
34.5027
\n
39.0370
\n
32.0743
\n
30.9219
\n
US DOLLAR
\n
USD
\n
1.0536
\n
1.0666
\n
1.1802
\n
1.1326
\n
VIETNAM DONG
\n
VND
\n
24,497.4172
\n
25,183.0000
\n
26,702.7754
\n
25,819.0000
\n
\n
ISRAELI NEW SHEKEL
\n
ILS
\n
3.5400
\n
3.7554
\n
3.8242
\n
3.5159
\n
SERBIAN DINAR
\n
RSD
\n
117.4202
\n
117.3246
\n
117.5512
\n
117.6165
\n
AUSTRALIAD DOLLAR
\n
AUD
\n
1.5156
\n
1.5693
\n
1.5747
\n
1.5615
\n
SOUTH AFRICAN RAND
\n
ZAR
\n
17.1696
\n
18.0986
\n
17.4094
\n
18.0625
\n
The exchange rate used for the translation of the Nigerian naira into the presentation currency is that at which future
\n
cash flows would be realized, in accordance with IAS 21.
\n
\n
xx.
\n
Transactions in a foreign currency
\n
Should a company in the Group have a monetary item to be received or to be paid in regard to another foreign subsidiary,
\n
for which settlement is not planned nor is it likely that it may occur in the foreseeable future and is substantially part of
\n
the entity\u2019s net investment in this foreign operation, it is recognised in accordance with the provisions of IAS 21 (para-
\n
graphs 32 and 33). This envisages the treatment of the related differences in exchange rates recognised under the items
\n
of the statement of comprehensive income in the consolidated financial statements which include this foreign operation.
\n
\n
Hyperinflation
\n
If a subsidiary operates in a hyperinflationary economy, the related economic and financial results are adjusted in accord-
\n
ance with the method established by IFRS, before being translated into the functional currency of the Group. The eco-
\n
nomic and financial data are restated in local currency, taking into account the current purchasing power of the currency
\n
on the financial statements date.
\n
Argentina and Turkey fulfilled the conditions which determine the presence of hyperinflation in accordance with the IFRS
\n
(International Financial Reporting Standards). Consequently, as of 1 July 2018, all the companies operating in Argentina
\n
have been required to apply IAS 29
\n
Financial Reporting in Hyperinflationary Economies
\n
in preparing the financial reports.
\n
With reference to the Group, the consolidated financial results at 31 December 2022 include the effects from the appli-
\n
cation of the aforementioned accounting standard as in the prior year.
\n
In accordance with the provisions of IAS 29, the remeasurement of the values in the financial statements overall requires
\n
the application of specific procedures and a measurement process which the Group had already started in the final part
\n
of 2018 for Argentina and of 2022 for Turkey. In particular:
\n
\u2022
\n
in relation to the income statement, costs and revenue were restated applying the change in the general consumer
\n
price index, in order to reflect the fall in purchasing power experienced by the local currency at 31 December 2022.
\n
For the purposes of the translation into euro of the income statement thus restated, the spot exchange rate at 31
\n
December 2022 was consistently applied rather than the average exchange rate for the period. With reference to
\n
consolidated net revenue in the period, the effect from the application of the standard entailed a negative change of
\n
Argentine peso 260.5 million equal to \u20ac 1.4 million in 2022. The effect of the hyperinflation for the Turkish entity has
\n
not been considered in the income statement given that the impact is not material and the entity has been in liqui-
\n
dation since July 2022;
\n
\u2022
\n
as regards the statement of financial position, the monetary elements were not restated, since they are already ex-
\n
pressed in the current unit of measurement at the end date of the period; the non-monetary assets and liabilities
\n
were instead restated to reflect the fall in purchasing power of the local currency that occurred from the date on
\n
which the assets and liabilities were initially recorded, at the end of the period.
\n
\n \n
\n
Business combinations
\n
Business combinations are accounted for using the acquisition method.
\n
The Group verifies that a business combination falls within the definition of the IFRS guidance hence only if it is an inte-
\n
grated set of activities and assets that with the input and process, contribute to the output creation.
\n
The cost of acquisition is calculated as the sum of payments transferred as part of a business combination, measured at
\n
fair value, on the acquisition date and at the value of the portion of the shareholders\u2019 equity relating to non-controlling
\n
interests, measured at fair value of the net interest recognized for the acquired entity.
\n
Ancillary costs related to the transactions are recorded in the income statement at the time they are incurred. The Group
\n
determines that it has acquired a business when the acquired set of activities and assets include an input and a substan-
\n
tive process that together significantly contribute to the ability to create outputs.
\n
The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs
\n
acquired include an organized workforce with the necessary skills, knowledge, or experience to perform that process or
\n
it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be
\n
replaced without significant cost, effort, or delay in the ability to continue producing outputs.
\n
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification
\n
and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the
\n
acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.
\n
\n \n
\n \n
\n
Should the business combination be done in instalments, the interest previously held by the Group in the acquired busi-
\n
ness is revealed at fair value on the date control is acquired, and any resulting gains or losses are recognized in the income
\n
statement.
\n
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date.
\n
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
\n
equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of
\n \n
\n
IFRS 9
\n
Financial Instruments
\n
, is measured at fair value with the changes in fair value recognized in the income statement
\n
\n \n
in accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is remeasured at fair
\n
value at each reporting date with changes in fair value recognized in income statement.
\n
Any changes in the fair value of the net assets acquired, occurring once further information is available during the meas-
\n
urement period \u2013 12 months from the acquisition date \u2013 are included retrospectively in goodwill.
\n \n
\n \n
\n
Goodwill acquired in business combinations is initially measured at cost, as the excess of the sum of payments transferred,
\n
the value of the portion of shareholders\u2019 equity relating to non-controlling interests and the fair value of any interest
\n
previously held in the acquired business over the Group\u2019s portion of the net fair value of the identifiable assets, liabilities
\n
and contingent liabilities of the acquired company. If the value of the net assets acquired and liabilities assumed on the
\n
acquisition date exceeds the sum of the transferred payments, the value of the non-controlling interests\u2019 portion of
\n
shareholders\u2019 equity and the fair value of any interest previously held in the acquired business, this excess value is ac-
\n
counted for in profit and loss as income from the transaction.
\n
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impair-
\n
ment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s
\n
cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities
\n
of the acquiree are assigned to those units.
\n
\n \n
\n \n
\n \n
\n
Business combinations
\n
Business combinations are accounted for using the acquisition method.
\n
The Group verifies that a business combination falls within the definition of the IFRS guidance hence only if it is an inte-
\n
grated set of activities and assets that with the input and process, contribute to the output creation.
\n
The cost of acquisition is calculated as the sum of payments transferred as part of a business combination, measured at
\n
fair value, on the acquisition date and at the value of the portion of the shareholders\u2019 equity relating to non-controlling
\n
interests, measured at fair value of the net interest recognized for the acquired entity.
\n
Ancillary costs related to the transactions are recorded in the income statement at the time they are incurred. The Group
\n
determines that it has acquired a business when the acquired set of activities and assets include an input and a substan-
\n
tive process that together significantly contribute to the ability to create outputs.
\n
The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs
\n
acquired include an organized workforce with the necessary skills, knowledge, or experience to perform that process or
\n
it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be
\n
replaced without significant cost, effort, or delay in the ability to continue producing outputs.
\n
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification
\n
and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the
\n
acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.
\n
\n
Should the business combination be done in instalments, the interest previously held by the Group in the acquired busi-
\n
ness is revealed at fair value on the date control is acquired, and any resulting gains or losses are recognized in the income
\n
statement.
\n
Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date.
\n
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
\n
equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of
\n \n
\n
IFRS 9
\n
Financial Instruments
\n
, is measured at fair value with the changes in fair value recognized in the income statement
\n
\n \n
in accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is remeasured at fair
\n
value at each reporting date with changes in fair value recognized in income statement.
\n
Any changes in the fair value of the net assets acquired, occurring once further information is available during the meas-
\n
urement period \u2013 12 months from the acquisition date \u2013 are included retrospectively in goodwill.
\n \n
\n \n
\n
Goodwill acquired in business combinations is initially measured at cost, as the excess of the sum of payments transferred,
\n
the value of the portion of shareholders\u2019 equity relating to non-controlling interests and the fair value of any interest
\n
previously held in the acquired business over the Group\u2019s portion of the net fair value of the identifiable assets, liabilities
\n
and contingent liabilities of the acquired company. If the value of the net assets acquired and liabilities assumed on the
\n
acquisition date exceeds the sum of the transferred payments, the value of the non-controlling interests\u2019 portion of
\n
shareholders\u2019 equity and the fair value of any interest previously held in the acquired business, this excess value is ac-
\n
counted for in profit and loss as income from the transaction.
\n
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impair-
\n
ment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s
\n
cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities
\n
of the acquiree are assigned to those units.
\n
\n \n
\n \n
\n
IFRS 9
\n
Financial Instruments
\n
, is measured at fair value with the changes in fair value recognized in the income statement
\n
\n
ix.
\n
Financial instruments - initial recognition and subsequent measurement
\n
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
\n
instrument of another entity.
\n
\n \n
\n \n
\n \n
\n \n
\n
Financial assets
\n
Initial recognition and measurement
\n
\n \n
Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other
\n
comprehensive income (OCI), and fair value through profit or loss.
\n
In line with IFRS 9, financial assets, which are represented by debt instruments (trade receivables, financial receivables,
\n
etc.), are classified on the basis of the business model (the way the Group manages financial assets in order to generate
\n
cash flows) and the contractual characteristics of the cash flows (the so-called SPPI test, \u201csolely payment of principal and
\n
interest\u201d), in one of the following categories:
\n
\u2022
\n
amortized cost, for the financial assets held with the aim of receiving the contractual cash flows which pass the SPPI
\n
test, since the cash flows represent solely payment of principal and interest; this category includes trade receivables,
\n
other operational receivables included in other current and non-current assets, and financial receivables included in
\n
other current and non-current financial assets;
\n
\n \n
\u2022
\n
fair value through shareholders\u2019 equity (FVOCI), for financial assets held with the aim of collecting cash flows, both
\n
contractual, which represent solely payments of principal and interest, and from sales. The changes in fair value sub-
\n
sequent to initial recognition are offset under OCI and are recycled to the income statement upon de-recognition;
\n
\u2022
\n \n
\n
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
\n
net changes in fair value recognised in the Income statement. This category mainly includes derivative instruments.
\n
\n \n
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow charac-
\n
teristics and the Group\u2019s business model for managing them.
\n \n
\n
With the exception of trade receivables that do not contain a significant financing component or for which the Group has
\n
applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial
\n
asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing
\n
component or for which the Group has applied the practical expedient are measured at the transaction price as disclosed
\n
in section (e) Revenue from contracts with customers.
\n
\n \n
The Group envisages, as per the provisions of the new IFRS 9, the treatment of non-strategic investments and investment
\n
funds shares at FVTPL; while other investments, which are considered strategic, are treated individually and, at the mo-
\n
ment, are all valued at FVTOCI.
\n \n
\n
Contingent consideration classified as an asset (or liability) that is a financial instrument and within the scope of IFRS 9
\n
Financial Instruments
\n
, is measured at fair value with the changes in fair value recognized in the income statement in
\n
accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is measured at fair value at
\n
each reporting date with changes in fair value recognized in income statement.
\n
\n \n \n
\n
Subsequent measurement
\n
\n \n
For purposes of subsequent measurement, financial assets are classified in four categories:
\n
\u2022
\n
Financial assets at amortized cost (debt instruments)
\n
\u2022
\n
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
\n
\u2022
\n
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon de-recog-
\n
nition (equity instruments)
\n
\u2022
\n
Financial assets at fair value through profit or loss
\n \n
\n
-
\n
Financial assets at amortized cost (debt instruments)
\n
Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are sub-
\n
ject to impairment. Gains and losses are recognized in income statement when the asset is derecognized, modified
\n
or impaired. The Group\u2019s financial assets at amortized cost includes trade receivables, loan to an associate and loan
\n
to a director included under other non-current financial assets. Trade receivables are originated in the ordinary course
\n
of business and held within a business model with the objective to hold the receivables in order to collect contractual
\n
cash flows that meet the \u2018solely payments of principal and interest\u2019 criterion under IFRS 9, therefore they are meas-
\n
ured at amortized cost using the effective interest rate method. The Group applies the amortized cost only for trade
\n
receivables with maturities greater than one year are discounted to present value.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
-
\n
Financial assets at fair value through OCI (debt instruments)
\n
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses
\n
or reversals are recognized in the income statement and computed in the same manner as for financial assets meas-
\n
ured at amortized cost. The remaining fair value changes are recognized in OCI. Upon de-recognition, the cumulative
\n
fair value change recognized in OCI is recycled to income statement. The Group\u2019s debt instruments at fair value
\n
through OCI includes investments in quoted debt instruments included under other non-current financial assets.
\n
\n
-
\n
Financial assets designated at fair value through OCI (equity instruments)
\n
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments des-
\n
ignated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presen-
\n
tation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and
\n
losses on these financial assets are never recycled to income statement. Dividends are recognized as other income in
\n
the income statement when the right of payment has been established, except when the Group benefits from such
\n
proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
\n
instruments designated at fair value through OCI are not subject to impairment assessment. The Group elected to
\n
classify irrevocably its non-listed equity investments under this category.
\n
\n
-
\n \n
\n
Financial assets at fair value through profit or loss
\n
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
\n
net changes in fair value recognized in the income statement. This category includes derivative instruments and listed
\n
equity investments which the Group had not irrevocably elected to classify at fair value through OCI. Dividends on
\n
listed equity investments are recognized as other income in the income statement when the right of payment has
\n
been established.
\n
\n \n \n
\n
De-recognition
\n
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
\n
derecognized (i.e., removed from the Group\u2019s consolidated statement of financial position) when:
\n
\u2022
\n
The rights to receive cash flows from the asset have expired
\n
Or
\n
\u2022
\n
The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
\n
received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement\u037e and either (a)
\n
the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred
\n
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
\n
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrange-
\n
ment, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither trans-
\n
ferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group
\n
continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Group also
\n
recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects
\n
the rights and obligations that the Group has retained.
\n
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
\n
original carrying amount of the asset and the maximum amount of consideration that the Group could be required to
\n
repay.
\n
\n \n \n
\n \n
\n \n
\n
Impairment
\n
Further disclosures relating to impairment of financial assets are also provided in the following notes:
\n
\u2022
\n
Disclosures for significant assumptions \u2013 refer to sub-paragraph \u2018xxi. - Significant accounting judgements, estimates
\n
and assumptions\u2019
\n
\u2022
\n
Trade receivables, including contract assets as described below
\n
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
\n
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract
\n
and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest
\n
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that
\n
are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default
\n
events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has
\n
been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected
\n
over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
\n
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the
\n
Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each re-
\n
porting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted
\n
for forward-looking factors specific to the debtors and the economic environment.
\n
\n \n
\n \n
\n \n
\n \n \n
\n \n
\n
Financial liabilities
\n
Initial recognition and measurement
\n
\n \n \n
\n
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
\n
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All fi-
\n
nancial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly
\n
attributable transaction costs. The Group\u2019s financial liabilities include trade and other payables, loans and borrowings
\n
including bank overdrafts and derivative financial instruments.
\n
\n \n \n
\n
Subsequent measurement
\n
\n \n
For purposes of subsequent measurement, financial liabilities are classified in two categories:
\n
\u2022
\n
Financial liabilities at fair value through profit or loss
\n
\u2022
\n
Financial liabilities at amortized cost (loans and borrowings)
\n
-
\n \n
\n
Financial liabilities at fair value through profit or loss
\n
Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as
\n
at fair value through profit or loss. Financial liabilities as at fair value through profit or loss also include derivative
\n
financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships
\n
as defined by IFRS 9. Financial liabilities designated upon initial recognition at fair value through profit or loss are
\n
designated at the initial date of recognition and only if the criteria in IFRS 9 are satisfied.
\n
\n \n \n
\n
-
\n
Financial liabilities at amortized cost (loans and borrowings)
\n
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\n
subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in income statement
\n
when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by
\n
taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The
\n
EIR amortization is included as finance costs in the income statement. This category generally applies to interest-
\n
bearing loans and borrowings.
\n
\n \n \n
\n
De-recognition
\n
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an
\n
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
\n
existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the orig-
\n
inal liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the
\n
income statement.
\n
\n \n
\n \n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Derivatives
\n
If derivative instruments are held for trading, they are measured at fair value while offset in the income statement; if the
\n
same are classified as effective hedging instruments against changes in the fair value of assets, liabilities, obligations
\n
assumed by the Group or related future cash flows, the Group applies hedge accounting.
\n
The Group, consistent with its internal policies, does not use financial instruments of a speculative nature (i.e. for trading).
\n
The Group uses financial derivative instruments mainly to hedge its exposure to exchange rate risk, interest rate risk and
\n
commodity price fluctuation risk.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
With reference to the classification of hedging transactions, the provisions of IFRS 9 require that:
\n
\u2022
\n
there is an economic relationship between the hedged item and the hedging instrument, such as to offset the related
\n
changes in value;
\n
\u2022
\n
this ability to offset is not undermined by the counterparty\u2019s credit risk level;
\n
a ratio between the hedged object and the hedging instrument (the so-called hedge ratio) is defined, in line with the
\n
derivatives risk management objectives, as part of the established derivatives risk management strategy, rebalancing
\n
where necessary. Changes in the derivatives risk management objectives, the termination of the above conditions to
\n
classify hedging transactions or rebalancing lead to the future, total or partial, discontinuation of the hedge.
\n
Financial instruments are recognized according to hedge accounting rules when:
\n
\u2022
\n
at the beginning of the hedging, the formal designation and documentation of the hedging exist;
\n
\u2022
\n
the hedging is assumed to be effective;
\n
\u2022
\n
the efficacy can be accurately measured and the hedging itself is highly effective during the relevant periods.
\n
The Group applies the cash flow hedge (IFRS 9), if the hedging relationship of changes in the cash flows originating from
\n
an asset or liability or a future transaction (hedged underlying element), that is deemed as likely to occur and that could
\n
have an impact on other comprehensive income and equity (cash flow hedge reserve), is formally documented.
\n
Changes in the value of the derivatives designated as fair value hedge and that are qualified as such, are recognized in
\n
the income statement, consistent with the changes in the fair value of the hedged assets and liabilities. If the derivative,
\n
even if created with non-speculative intent, does not meet all the formal requirements necessary to be designated in
\n
hedge accounting, the changes in fair value are recognized in the income statement, under the same line of the changes
\n
in hedged item.
\n
\n \n
\n \n
\n \n
\n \n
\n
xi.
\n
Cash and cash equivalents
\n
Cash and cash equivalents are recognized at their nominal value and include numeric values, i.e. those values that meet
\n
the requirement of on demand or very short-term availability, positive outcome and no costs of disposal with a maturity
\n
of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of
\n
changes in value. This item also includes the collection and payment instruments that have been subject to an account
\n
recording at the servicing financial institution as at the closing date of the period notwithstanding any subsequent differ-
\n
ent accounting records.
\n
\n \n
\n \n
\n \n
\n
Provision for expected credit losses of trade receivables and contract assets
\n
The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
\n
based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography,
\n
and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group\u2019s
\n
historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with
\n
forward-looking information. For instance, if forecast economic conditions are expected to deteriorate over the next year
\n
which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted.
\n
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
\n
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
\n
The Group\u2019s historical credit loss experience and forecast of economic conditions may also not be representative of cus-
\n
tomer\u2019s actual default in the future. The information about the ECLs on the Group\u2019s trade receivables and contract assets
\n
is disclosed in \u2018Credit Risk\u2019 included in section \u20186.4 - Other information\u2019.
\n
\n \n
\n \n
\n \n
\n
Goodwill acquired in business combinations is initially measured at cost, as the excess of the sum of payments transferred,
\n
the value of the portion of shareholders\u2019 equity relating to non-controlling interests and the fair value of any interest
\n
previously held in the acquired business over the Group\u2019s portion of the net fair value of the identifiable assets, liabilities
\n
and contingent liabilities of the acquired company. If the value of the net assets acquired and liabilities assumed on the
\n
acquisition date exceeds the sum of the transferred payments, the value of the non-controlling interests\u2019 portion of
\n
shareholders\u2019 equity and the fair value of any interest previously held in the acquired business, this excess value is ac-
\n
counted for in profit and loss as income from the transaction.
\n
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impair-
\n
ment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s
\n
cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities
\n
of the acquiree are assigned to those units.
\n
\n \n
\n
iii.
\n
Intangible assets
\n
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
\n
in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are
\n
carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles,
\n
excluding capitalized development costs, are not capitalized and the related expenditure is reflected in income statement
\n
in the period in which the expenditure is incurred.
\n
The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amor-
\n
tized over the useful economic life and assessed for impairment
\n
whenever there is an indication that the intangible asset
\n
may be impaired. The amortization period and the
\n
amortization method for an intangible asset with a finite useful life
\n
are reviewed at least at the end of each
\n
reporting period. Changes in the expected useful life or the expected pattern of
\n
consumption of future
\n
economic benefits embodied in the asset are considered to modify the amortization period or
\n
\n
method, as
\n
appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible
\n
assets with finite lives is recognized in the income statement in the expense category that is
\n
consistent with the function
\n
of the intangible assets.
\n
Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually
\n
or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the
\n
indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospec-
\n
tive basis.
\n
An intangible asset is derecognized upon disposal (i.e., at the date the recipient obtains control) or when no future eco-
\n
nomic benefits are expected from its use or disposal. Any gain or loss arising upon de-recognition of the asset (calculated
\n
as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income
\n
statement.
\n
\n \n
\n
Goodwill
\n
Goodwill arising from the acquisition of a subsidiary reflects the excess of the acquisition cost over the percentage at-
\n
tributable to the Group, of the fair value of the subsidiary\u2019s identifiable assets, liabilities and potential liabilities at the
\n
acquisition date (IAS
\n
36). The goodwill is recognized as an asset and undergoes an impairment test on an annual basis, or
\n
more frequently if there are events or changes in the circumstances that may result in impairment losses.
\n
For this purpose, the goodwill, if any, resulting at the acquisition date is allocated to each of the cash generating units
\n
(CGU), which are expected to benefit from the synergy effects deriving from the acquisition. Any loss in value is identified
\n
through valuations that are based on the capacity of each unit to produce financial flows capable of recovering the part
\n
of goodwill allocated to it, according to the methods described hereinafter, in the section \u201cImpairment of assets\u201d. If the
\n
value recoverable by the cash generating unit is below the attributed carrying value, the related impairment loss is rec-
\n
ognized. This impairment loss is not restored if the reasons that have generated it cease to exist.
\n
If in a subsidiary the control is lost, the portion of goodwill attributable to it at the date of the sale is included in the
\n
calculation of the gain or loss on disposal.
\n
\n \n
\n \n
\n
Internally generated intangible assets \u2013 Research and development costs
\n
Research costs are recognized in the income statement for the period in which they are incurred.
\n
Internally generated intangible assets deriving from the development of the Group\u2019s products are recognized under as-
\n
sets, only if all of the following conditions are met:
\n
\u2022
\n
The technical feasibility of completing the intangible asset so that the asset will be available for use or sale
\n
\u2022
\n
Its intention to complete and its ability and intention to use or sell the asset
\n
\u2022
\n
How the asset will generate future economic benefits
\n
\u2022
\n
The availability of resources to complete the asset
\n
\u2022
\n
The ability to measure reliably the expenditure during development
\n
The capitalized development costs include only the expense incurred which may be attributed directly to the develop-
\n
ment process.
\n
These intangible assets with definite useful life are amortized on a straight-line basis over the respective useful life of the
\n
product, which is normally 5 years. Any impairment losses, and any restatement, are based on the same methods de-
\n
scribed in the section \u201cImpairment of assets\u201d.
\n
If the internally generated assets cannot be recognized in the financial statements, the development costs are recognized
\n
in the income statement for the period in which they are incurred.
\n
\n \n
Other intangible assets
\n
Other intangible assets, whether purchased or internally produced, are recognized under assets in compliance with IAS
\n
38
\n
Intangible Assets
\n
, if it is likely that the use of the assets will generate future economic benefits and when the cost of
\n
the asset can be accurately measured.
\n
These assets (such as concessions, licenses, trademarks and software) with a definite useful life are recognized at pur-
\n
chase or production cost and amortized on a straight-line basis over their estimated useful life. Any impairment losses,
\n
and any restatement, are based on the same methods described in the section \u201cImpairment of assets\u201d
\n
\n
Intangible assets with indefinite useful life are not amortized but are subject to evaluation in order to identify any impair-
\n
ment loss, yearly or more frequently, at any time there is an indication that the asset may have been impaired.
\n
The other intangible assets recognized following the acquisition of a company are recognized separately from the good-
\n
will, if their current value can be accurately measured.
\n
Here below are the principles applied by the Group for intangible assets (IAS 38.118) (a) (b):
\n
Licenses
\n
Trademarks
\n
Development costs
\n
Software
\n
Useful life
\n
Definite (5 years)
\n
Indefinite
\n
Definite (5 years)
\n
Definite (4 years)
\n
Amortisation
\n
method used
\n
Amortised on a straight-
\n
line basis over the period
\n
of the license itself
\n
No amortisation
\n
Amortised on a straight-
\n
line basis over the pe-
\n
riod of expected future
\n
sales resulting from the
\n
related project
\n
Amortised on a
\n
straight-line basis
\n
over the period of
\n
the usage of the
\n
software itself
\n
Produced in-house
\n
or purchased
\n
Purchased
\n
Purchased
\n
Produced in-house
\n
Purchased
\n
\n
Goodwill acquired in business combinations is initially measured at cost, as the excess of the sum of payments transferred,
\n
the value of the portion of shareholders\u2019 equity relating to non-controlling interests and the fair value of any interest
\n
previously held in the acquired business over the Group\u2019s portion of the net fair value of the identifiable assets, liabilities
\n
and contingent liabilities of the acquired company. If the value of the net assets acquired and liabilities assumed on the
\n
acquisition date exceeds the sum of the transferred payments, the value of the non-controlling interests\u2019 portion of
\n
shareholders\u2019 equity and the fair value of any interest previously held in the acquired business, this excess value is ac-
\n
counted for in profit and loss as income from the transaction.
\n
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impair-
\n
ment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s
\n
cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities
\n
of the acquiree are assigned to those units.
\n
\n
Goodwill
\n
Goodwill arising from the acquisition of a subsidiary reflects the excess of the acquisition cost over the percentage at-
\n
tributable to the Group, of the fair value of the subsidiary\u2019s identifiable assets, liabilities and potential liabilities at the
\n
acquisition date (IAS
\n
36). The goodwill is recognized as an asset and undergoes an impairment test on an annual basis, or
\n
more frequently if there are events or changes in the circumstances that may result in impairment losses.
\n
For this purpose, the goodwill, if any, resulting at the acquisition date is allocated to each of the cash generating units
\n
(CGU), which are expected to benefit from the synergy effects deriving from the acquisition. Any loss in value is identified
\n
through valuations that are based on the capacity of each unit to produce financial flows capable of recovering the part
\n
of goodwill allocated to it, according to the methods described hereinafter, in the section \u201cImpairment of assets\u201d. If the
\n
value recoverable by the cash generating unit is below the attributed carrying value, the related impairment loss is rec-
\n
ognized. This impairment loss is not restored if the reasons that have generated it cease to exist.
\n
If in a subsidiary the control is lost, the portion of goodwill attributable to it at the date of the sale is included in the
\n
calculation of the gain or loss on disposal.
\n
\n
Recognition of non-controlling interests
\n
Non-controlling interests relate to the portion of a subsidiary\u2019s shareholders\u2019 equity that is not directly or indirectly at-
\n
tributable to the Group.
\n
Should cross-mechanisms, which give the Group the right to acquire the non-controlling interests (call option agreement)
\n
or rights to sell the same to the Group (put option agreement) or a combination of both (put and call option agreements)
\n
be in place, an analysis is made as to whether the risks and benefits connected with the share of legal ownership of the
\n
business to which the non-controlling interests pertain are broadly attributable to the latter or to the Group. These rights
\n
to purchase or sell the non-controlling interests may be set at a fixed price, a variable price or a fair value, and may be
\n
exercisable on a fixed date or at any time in the future. Each of these variables is examined to determine the effects on
\n
the presentation of the accounts.
\n
If the non-controlling interests have an effective involvement in the conduct of the business, those interest must continue
\n
to be represented in addition to the Group\u2019s shareholders\u2019 equity and, at the same time, the financial liability relating to
\n
the put and/or call option agreements must be recorded.
\n
\n
Accounting treatment of the Haas Heating BV earn out
\n
On 10 June 2021, 24.5% of the shares of the Dutch company Haas Heating B.V. were acquired by the Group through
\n
ATAG Heating B.V.
\n
The acquisition agreement sets forth a mechanism for a subsequent adjustment of the purchase price (earn-out) based
\n
on a sales scheme at specific dates falling under IAS 28
\n
Investment in Associates and Joint Ventures
\n
.
\n
\n
Therefore, a liability equal to the current value of the estimated obligation as at the date of its eventual future exercise,
\n
was recognized in the financial statements against the equity participation value.
\n
A Shares Purchase Agreement defined the purchase price at \u20ac 0.8 million and a liability for \u20ac 1.5 million is related to the
\n
earn-out program.
\n
For the remaining shares the agreement foresees a series of call options until December 2023 that are not reflected in
\n
the Financial Statements and are not material in terms of the amount.
\n
The company is treated as a joint venture due to the fact that the shareholder has a right of veto on important business
\n
decisions, thus valuing the participation with the equity method with the existence of a financial liability to be paid for
\n
acquiring the entity.
\n
\n
Joint ventures
\n
From June 2021 Ariston Group holds 24.5% of the shares of the Dutch company Haas Heating B.V. which was acquired
\n
by the Group through ATAG Heating B.V.
\n
The company is treated as a joint venture, thus valuing the participation with the equity method with the existence of a
\n
financial liability to be paid for acquiring the associate.
\n
The acquisition agreement sets forth a mechanism for a subsequent adjustment of the purchase price (earn-out) based
\n
on a sales scheme at specific dates falling under IAS 28
\n
Investment in Associates and Joint Ventures
\n
.
\n
Therefore, a liability equal to the current value of the estimated obligation as at the date of its eventual future exercise,
\n
was recognised in the financial statements against the equity method.
\n
By Shares Purchase Agreement defined the purchase price at \u20ac 0.8 million and a liability for \u20ac 1.5 million is related to the
\n
earn-out program.
\n
For the remaining shares the agreement foresees a series of call options until December 2023.
\n
\n \n
\n \n
\n \n
\n
LIST OF COMPANIES AT 31 DECEMBER 2022
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Ariston Holding N.V.
\n
Netherlands
\n
EUR
\n
46,061,835.32
\n
TC
\n
parent
\n
company
\n
2
\n
AR1 S.r.l.
\n
Italy
\n
EUR
\n
200,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
3
\n
Ariston Benelux S.A./N.V.
\n
Belgium
\n
EUR
\n
15,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
4
\n
Ariston Deutschland GmbH
\n
Germany
\n
EUR
\n
255,700
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
5
\n
Ariston Egypt LLC
\n
Egypt
\n
EGP
\n
10,900,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
6
\n
Ariston France sas
\n
France
\n
EUR
\n
54,682,110
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Elco International GmbH
\n
0.01
\n
7
\n
Ariston Heating Technology
\n
Nigeria Ltd
\n
Nigeria
\n
NGN
\n
10,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
8
\n
Ariston Holding Egypt LLC
\n
Egypt
\n
EGP
\n
100,000
\n
TC
\n
100.00
\n
ATAG Heating B.V.
\n
99.00
\n
Ariston Holding N.V.
\n
0.01
\n
9
\n
Ariston Hung\u00e1ria kft
\n
Hungary
\n
HUF
\n
131,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
10
\n
Ariston Iberica S.L.
\n
Spain
\n
EUR
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
11
\n
Ariston Kazakhstan LLP
\n
Kazakhstan
\n
KZT
\n
212,100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
12
\n
Ariston Polska Sp. z o.o.
\n
Poland
\n
PLN
\n
12,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
13
\n
Ariston Pte Ltd
\n
Singapore
\n
SGD
\n
100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
14
\n
Ariston S.p.A.
\n
Italy
\n
EUR
\n
30,100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
15
\n
Ariston Sales Mexico S.A. de
\n
C.V.
\n
Mexico
\n
MXN
\n
302,188,920
\n
TC
\n
100.00
\n
Ariston Thermo Mexico
\n
S.A. de C.V
\n
0.03
\n
Calentadores de America
\n
S.A. de C.V.
\n
99.97
\n
16
\n
Ariston South Africa (Pty) Ltd
\n
South Africa
\n
ZAR
\n
100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
17
\n
Ariston
\n
Thermo (China) Co.,
\n
Ltd
\n
China
\n
CNY
\n
145,885,010
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
18
\n
Ariston Thermo Argentina
\n
S.r.l.
\n
Argentina
\n
ARS
\n
16,705,269
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.63
\n
Thermowatt S.p.A.
\n
0.37
\n
19
\n
Ariston Thermo Croatia Ltd
\n
Croatia
\n
HRK
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
20
\n
Ariston Thermo CZ sro
\n
Czech Republic
\n
CZK
\n
30,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
21
\n
Ariston Thermo Gulf Water
\n
Heating LLC
\n
UAE
\n
AED
\n
400,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
49.00
\n
Third parties
\n
51.00
\n
22
\n
Ariston Thermo Holding USA
\n
LLC
\n
USA
\n
USD
\n
63,037,687
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
23
\n
Ariston Thermo India Private
\n
Ltd
\n
India
\n
INR
\n
220,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
24
\n
Ariston Thermo Industrial Vi-
\n
etnam Ltd
\n
Vietnam
\n
VND
\n
41,600,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
25
\n
Ariston Thermo Isitma ve So-
\n
gutma Sistemleri Ithalat,
\n
Ihracat ve Dagitim Ltd Sirketi
\n
Turkey
\n
TRY
\n
66,157,500
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
26
\n
Ariston Thermo Maroc sa
\n
Morocco
\n
MAD
\n
3,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
27
\n
Ariston Thermo MEA SPC
\n
Bahrain
\n
USD
\n
12,338,306
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
28
\n
Ariston Thermo Mexico S.A.
\n
de C.V
\n
Mexico
\n
MXN
\n
2,350,000,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
99.99
\n
Ariston Thermo Holding
\n
USA LLC
\n
0.01
\n
29
\n
Ariston Thermo Parts & Ser-
\n
vices S.A.
\n
Switzerland
\n
EUR
\n
940.551
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
30
\n
Ariston Thermo Romania
\n
S.r.l.
\n
Romania
\n
RON
\n
29,041,740
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
31
\n
Ariston Thermo Rus LLC
\n
Russia
\n
RUB
\n
1,403,787,727
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
32
\n
Ariston Thermo Tunisie SA
\n
Tunisia
\n
EUR
\n
500,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
66.70
\n
Third parties
\n
33.30
\n
33
\n
Ariston Thermo UK Ltd
\n
UK
\n
GBP
\n
7,500,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
34
\n
Ariston Thermo USA LLC
\n
USA
\n
USD
\n
10,275,184
\n
TC
\n
100.00
\n
Ariston Thermo Holding
\n
USA LLC
\n
100.00
\n
35
\n
Ariston Thermo Vietnam Ltd
\n
Vietnam
\n
VND
\n
31,471,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
36
\n
Ariston Ukraine LLC
\n
Ukraine
\n
UAH
\n
38,705,753
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
37
\n
Atag Construction B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
38
\n
Atag Electronics
\n
B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
39
\n
Atag Engineering B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
40
\n
Atag Heating
\n
B.V.
\n
Netherlands
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
41
\n
Atag Heizungstechnik Gmbh
\n
Germany
\n
EUR
\n
512,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
42
\n
Atag Verwarming Belgie
\n
B.V.BA
\n
Belgium
\n
EUR
\n
18,600
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
43
\n
Atag Verwarming Nederland
\n
B.V.
\n
Netherlands
\n
EUR
\n
18,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
44
\n
ATM1 HR S.A. de C.V.
\n
Mexico
\n
MXN
\n
50,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
99.99
\n
Elcotherm AG
\n
0.01
\n
45
\n
Atmor (Dongguan) Electronic
\n
Technology Co. Ltd
\n
China
\n
USD
\n
1,000,000
\n
TC
\n
100.00
\n
Atmor Electronic Tech-
\n
nology Company Ltd
\n
100.00
\n
46
\n
Atmor Electronic Technology
\n
Company Ltd
\n
Hong Kong
\n
HKD
\n
10,000
\n
TC
\n
100.00
\n
Atmor Industries LTD
\n
100.00
\n
47
\n
Atmor Industries Ltd
\n
Israel
\n
USD
\n
1,790,409
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
48
\n
BCE S.r.l.
\n
Italy
\n
EUR
\n
10,400
\n
BUR
\n
100.00
\n
Ecoflam Bruciatori S.p.A.
\n
100.00
\n
49
\n
Calentadores de America S.A.
\n
de C.V.
\n
Mexico
\n
MXN
\n
1,226,593,637
\n
TC
\n
100.00
\n
Ariston
\n
Thermo Mexico
\n
S.A. de C.V
\n
99.99
\n
Atag Heating B.V.
\n
0.01
\n
50
\n
Chromagen Australia PTY LTD
\n
Australia
\n
AUD
\n
10,358,995
\n
TC
\n
100.00
\n
Elcotherm AG
\n
51.00
\n
Third parties
\n
49.00
\n
51
\n
Chromagen Israel Ltd
\n
Israel
\n
ILS
\n
10.901
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
52
\n
Cuenod sas
\n
France
\n
EUR
\n
15,422,390
\n
BUR
\n
100.00
\n
Ariston France sas
\n
100.00
\n
53
\n
Domotec AG
\n
Switzerland
\n
CHF
\n
50,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
54
\n
Ecoflam Bruciatori S.p.A.
\n
Italy
\n
EUR
\n
3,690,000
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
55
\n
Elco Austria GmbH
\n
Austria
\n
EUR
\n
35,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
56
\n
Elco B.V.
\n
Netherlands
\n
EUR
\n
2,046,004
\n
TC
\n
100.00
\n
Elco Burners B.V.
\n
100.00
\n
57
\n
Elco Belgium N.V./S.A.
\n
Belgium
\n
EUR
\n
2,650,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
99.99
\n
Elco B.V.
\n
0.01
\n
58
\n
Elco Burners B.V.
\n
Netherlands
\n
EUR
\n
22.734
\n
BUR
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
59
\n
Elco Burners GmbH
\n
Germany
\n
EUR
\n
25,000
\n
BUR
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
60
\n
Elco GmbH
\n
Germany
\n
EUR
\n
50,000
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
61
\n
Elco Heating Solutions Limi-
\n
ted
\n
UK
\n
GBP
\n
3,001,750
\n
TC
\n
100.00
\n
Ariston Themo UK Ltd
\n
100.00
\n
62
\n
Elco International GmbH
\n
Germany
\n
EUR
\n
8,691,962
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
63
\n
Elco Italia S.p.A.
\n
Italy
\n
EUR
\n
3,500,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
64
\n
Elcotherm AG
\n
Switzerland
\n
CHF
\n
1,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
65
\n
Gastech-Energi A/S
\n
Denmark
\n
DKK
\n
7,554,935
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
66
\n
Ingrado S.r.l.
\n
Italy
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
67
\n
Kesselheld Gmbh
\n
Germany
\n
EUR
\n
83,333
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
68
\n
NTI Boilers Inc
\n
Canada
\n
CAD
\n
43,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
69
\n
NTI-USA Inc
\n
USA
\n
USD
\n
100
\n
TC
\n
100.00
\n
NTI Boilers Inc
\n
100.00
\n
70
\n
PT Ariston Thermo Indonesia
\n
Indonesia
\n
IDR
\n
16,260,750,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston Pte Ltd.
\n
0.01
\n
71
\n
Racold
\n
Thermo Private Ltd
\n
India
\n
INR
\n
262,134,750
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
72
\n
S.H.E. d.o.o. Svilajnac
\n
Serbia
\n
RSD
\n
35,432,220
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
73
\n
SPM Innovation
\n
sas
\n
France
\n
EUR
\n
750,020
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
74
\n
Thermowatt (Wuxi) Electric
\n
Co., Ltd
\n
China
\n
CNY
\n
82,769,200
\n
COM
\n
100.00
\n
Ariston Thermo (China)
\n
Co., Ltd
\n
70.00
\n
Ariston Holding N.V.
\n
30.00
\n
75
\n
Thermowatt Professional
\n
S.r.l.
\n
Italy
\n
EUR
\n
100,000
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
76
\n
Thermowatt S.p.A.
\n
Italy
\n
EUR
\n
7,700,000
\n
COM
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
(*)
\n
Refers to the main Division
\n
LIST OF COMPANIES NOT INCLUDED IN THE SCOPE OF CONSOLIDATION
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct con-
\n
trolling in-
\n
terest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Joint venture \"Ariston
\n
Thermo - UTG LLC\" (**)
\n
Uzbekistan
\n
EUR
\n
1,000,000
\n
TC
\n
51.00
\n
Ariston Holding N.V.
\n
51.00
\n
49.00
\n
2
\n
Haas Heating B.V.
\n
Netherlands
\n
EUR
\n
100
\n
TC
\n
24.50
\n
Atag Heating B.V.
\n
24.50
\n
(**)
\n
The company was not included in the scope of consolidation because of its limited area of operation and little significance.
\n
\n \n
\n \n
\n \n
\n
4.
\n
Significant accounting policies
\n
i.
\n
Current versus non-current classification
\n
The Group presents assets and liabilities in the statement of financial position based on current/non-current classifica-
\n
tion. An asset is current when it is:
\n
\u2022
\n
Expected to be realized or intended to be sold or consumed in the normal operating cycle
\n
\u2022
\n
Held primarily for the purpose of trading
\n
\u2022
\n
Expected to be realized within twelve months after the reporting period
\n
Or
\n
\u2022
\n
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
\n
after the reporting period.
\n
All other assets are classified as non-current.
\n
A liability is current when:
\n
\u2022
\n
It is expected to be settled in the normal operating cycle
\n
\u2022
\n
It is held primarily for the purpose of trading
\n
\u2022
\n
It is due to be settled within twelve months after the reporting period
\n
Or
\n
\u2022
\n
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
\n
period
\n
The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity
\n
instruments do not affect its classification.
\n
The Group classifies all other liabilities as non-current.
\n
\n \n
\n
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
\n \n
\n
ii.
\n
Fair value measurement
\n
The Group measures financial instruments such as derivatives, and non-financial assets at fair value at each balance sheet
\n
date.
\n
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
\n
market participants at the measurement date. The fair value measurement is based on the presumption that the trans-
\n
action to sell the asset or transfer the liability takes place either:
\n
\u2022
\n
In the principal market for the asset or liability
\n
Or
\n
\u2022
\n
In the absence of a principal market, in the most advantageous market for the asset or liability, the principal or the
\n
most advantageous market must be accessible by the Group.
\n
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
\n
the asset or liability, assuming that market participants act in their economic best interest.
\n
A fair value measurement of a non-financial asset takes into account a market participant\u2019s ability to generate economic
\n
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
\n
asset in its highest and best use.
\n
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
\n
to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
\n
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within
\n
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measure-
\n
ment as a whole:
\n
\u2022
\n
Level 1 \u2013 Quoted (unadjusted) market prices in active markets for identical assets or liabilities
\n
\u2022
\n
Level 2 \u2013 Valuation techniques for which the lowest level input that is significant to the fair value measurement is
\n
directly or indirectly observable
\n
\u2022
\n
Level 3 \u2013 Valuation techniques for which the lowest level input that is significant to the fair value measurement is
\n
unobservable
\n
For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Group de-
\n
termines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the
\n
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
\n
The Group determines the policies and procedures for both recurring fair value measurement, such as investment prop-
\n
erties and unquoted financial assets, and for non-recurring measurement, such as assets held for sale in discontinued
\n
operations.
\n
External valuators are involved for valuation of significant assets, such as investment properties and unquoted financial
\n
assets, and significant liabilities, such as contingent consideration.
\n
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the
\n
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above.
\n
\n \n \n
\n \n
\n
iii.
\n
Intangible assets
\n
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
\n
in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are
\n
carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles,
\n
excluding capitalized development costs, are not capitalized and the related expenditure is reflected in income statement
\n
in the period in which the expenditure is incurred.
\n
The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amor-
\n
tized over the useful economic life and assessed for impairment
\n
whenever there is an indication that the intangible asset
\n
may be impaired. The amortization period and the
\n
amortization method for an intangible asset with a finite useful life
\n
are reviewed at least at the end of each
\n
reporting period. Changes in the expected useful life or the expected pattern of
\n
consumption of future
\n
economic benefits embodied in the asset are considered to modify the amortization period or
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
method, as
\n
appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible
\n
assets with finite lives is recognized in the income statement in the expense category that is
\n
consistent with the function
\n
of the intangible assets.
\n
Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually
\n
or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the
\n
indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospec-
\n
tive basis.
\n
An intangible asset is derecognized upon disposal (i.e., at the date the recipient obtains control) or when no future eco-
\n
nomic benefits are expected from its use or disposal. Any gain or loss arising upon de-recognition of the asset (calculated
\n
as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income
\n
statement.
\n
\n \n
\n \n \n
\n \n
\n
Goodwill
\n
Goodwill arising from the acquisition of a subsidiary reflects the excess of the acquisition cost over the percentage at-
\n
tributable to the Group, of the fair value of the subsidiary\u2019s identifiable assets, liabilities and potential liabilities at the
\n
acquisition date (IAS
\n
36). The goodwill is recognized as an asset and undergoes an impairment test on an annual basis, or
\n
more frequently if there are events or changes in the circumstances that may result in impairment losses.
\n
For this purpose, the goodwill, if any, resulting at the acquisition date is allocated to each of the cash generating units
\n
(CGU), which are expected to benefit from the synergy effects deriving from the acquisition. Any loss in value is identified
\n
through valuations that are based on the capacity of each unit to produce financial flows capable of recovering the part
\n
of goodwill allocated to it, according to the methods described hereinafter, in the section \u201cImpairment of assets\u201d. If the
\n
value recoverable by the cash generating unit is below the attributed carrying value, the related impairment loss is rec-
\n
ognized. This impairment loss is not restored if the reasons that have generated it cease to exist.
\n
If in a subsidiary the control is lost, the portion of goodwill attributable to it at the date of the sale is included in the
\n
calculation of the gain or loss on disposal.
\n
\n \n
\n \n \n
\n \n
\n \n
\n
Internally generated intangible assets \u2013 Research and development costs
\n
Research costs are recognized in the income statement for the period in which they are incurred.
\n
Internally generated intangible assets deriving from the development of the Group\u2019s products are recognized under as-
\n
sets, only if all of the following conditions are met:
\n
\u2022
\n
The technical feasibility of completing the intangible asset so that the asset will be available for use or sale
\n
\u2022
\n
Its intention to complete and its ability and intention to use or sell the asset
\n
\u2022
\n
How the asset will generate future economic benefits
\n
\u2022
\n
The availability of resources to complete the asset
\n
\u2022
\n
The ability to measure reliably the expenditure during development
\n
The capitalized development costs include only the expense incurred which may be attributed directly to the develop-
\n
ment process.
\n
These intangible assets with definite useful life are amortized on a straight-line basis over the respective useful life of the
\n
product, which is normally 5 years. Any impairment losses, and any restatement, are based on the same methods de-
\n
scribed in the section \u201cImpairment of assets\u201d.
\n
If the internally generated assets cannot be recognized in the financial statements, the development costs are recognized
\n
in the income statement for the period in which they are incurred.
\n
\n \n
Other intangible assets
\n
Other intangible assets, whether purchased or internally produced, are recognized under assets in compliance with IAS
\n
38
\n
Intangible Assets
\n
, if it is likely that the use of the assets will generate future economic benefits and when the cost of
\n
the asset can be accurately measured.
\n
These assets (such as concessions, licenses, trademarks and software) with a definite useful life are recognized at pur-
\n
chase or production cost and amortized on a straight-line basis over their estimated useful life. Any impairment losses,
\n
and any restatement, are based on the same methods described in the section \u201cImpairment of assets\u201d
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Intangible assets with indefinite useful life are not amortized but are subject to evaluation in order to identify any impair-
\n
ment loss, yearly or more frequently, at any time there is an indication that the asset may have been impaired.
\n
The other intangible assets recognized following the acquisition of a company are recognized separately from the good-
\n
will, if their current value can be accurately measured.
\n
Here below are the principles applied by the Group for intangible assets (IAS 38.118) (a) (b):
\n
Licenses
\n
Trademarks
\n
Development costs
\n
Software
\n
Useful life
\n
Definite (5 years)
\n
Indefinite
\n
Definite (5 years)
\n
Definite (4 years)
\n
Amortisation
\n
method used
\n
Amortised on a straight-
\n
line basis over the period
\n
of the license itself
\n
No amortisation
\n
Amortised on a straight-
\n
line basis over the pe-
\n
riod of expected future
\n
sales resulting from the
\n
related project
\n
Amortised on a
\n
straight-line basis
\n
over the period of
\n
the usage of the
\n
software itself
\n
Produced in-house
\n
or purchased
\n
Purchased
\n
Purchased
\n
Produced in-house
\n
Purchased
\n
\n \n
\n \n \n
\n \n
\n \n
\n
iv.
\n
Property, plant and equipment
\n
\n \n
\n \n
Property, plant and equipment are recognized at cost, net of accumulated depreciation and impairment losses, if any.
\n
Construction in progress is stated at cost, net of accumulated impairment losses, if any.
\n
The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the
\n
respective asset if the recognition criteria for a provision are met.
\n
Assets with components of a significant value and with a different useful life are recognized separately when depreciated.
\n
Under IAS 16 Property, Plant and Equipment an entity has a policy choice for the measurement of property, plant and
\n
equipment after initial recognition. An entity may choose either the cost model or the revaluation model for entire classes
\n
of property, plant and equipment. The Group has elected to use the cost model for all class of assets.
\n \n
\n
The depreciation is calculated on a straight-line basis, according to the cost of the asset net of all residual values, on its
\n
estimated useful economic-technical life through the use of depreciation rates that accurately represent it. If significant
\n
parts of these tangible assets have a different useful life, they will be stated separately. The depreciation will be based
\n
on the following percentage rates:
\n
Buildings and light constructions
\n
from 1.8 to 3.0
\n
Plant and machinery
\n
from 6.0 to 15.5
\n
Industrial and commercial equipment
\n
from 10.0 to 25.0
\n
Cars and internal transport vehicles
\n
from 20.0 to 25.0
\n
Furniture, office equipment, data processing systems
\n
from 12.0 to 20.0
\n
The Group reviews the estimated residual values and expected useful lives of assets at least annually.
\n
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
\n
financial year end and adjusted prospectively, if appropriate.
\n
Land with no construction or annexed to residential and industrial buildings, is not depreciated since it has an unlimited
\n
useful life.
\n
\n \n
An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal (i.e.,
\n
at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal.
\n
Gains and losses arising from the sale or disposal of assets are calculated as the difference between revenue from sales
\n
and the net carrying value of the asset, and are recognized in the income statement for the year.
\n
\n \n
\n \n
\n \n
\n \n
\n
v.
\n
Leases
\n
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the
\n
right to control the use of an identified asset for a period of time in exchange for consideration.
\n
The rights of use relating to leases are recognized in a single accounting model to recognize the lease. In accordance with
\n
this model, the entity recognizes: (1) assets and liabilities for all leases with a duration of over twelve months; (2) sepa-
\n
rately in the income statement, the amortization/depreciation of the recognized asset and the interest on the financial
\n
payable recorded.
\n
More specifically, in order to determine the value of the assets with \u201cright of use\u201d, the value of the related discounted
\n
liabilities, any payments made to the lessor before signing the contract, net of the incentives received, the initial direct
\n
costs incurred by the lessee as well as the provisions for removal and dismantling, if any, were taken into account.
\n
Lease agreements in place within the Group ranges from offices, warehouses, plants, machinery and vehicles and low
\n
value assets belonging to third parties.
\n
Lease terms are generally ranging from 1-10 years but may contains options to extend them. Terms of lease may also
\n
contain wide range of different conditions.
\n
Falling under the IFRS 16 guidelines, the rights of use are valued at cost, net of accumulated amortization and impairment
\n
losses and adjusted after any remeasurement of the lease liabilities. The value assigned to the rights of use corresponds
\n
to the amount of the lease liabilities recognized, plus initial direct costs incurred, lease payments settled on the start date
\n
of the agreement or previously, and restoration costs, net of any lease incentives received.
\n
The value of the liability, discounted to present value, as determined above, increases the right of use of the underlying
\n
asset, and a dedicated liablity is created as a contra-entry. The rights of use are amortized on a straight-line basis over its
\n
estimated useful life or the term of the agreement, whichever is the shorter. The financial liability for leases is recognized
\n
on the start date of the agreement at a total value equal to the present value of the lease payments to be made during
\n
the term of the agreement, discounted to present value using incremental borrowing rates (IBR) when the implicit inter-
\n
est rate in the lease agreement cannot easily be determined. Variable lease payments which are not linked to an index
\n
or rate continue to be charged to the income statement as costs for the period.
\n
After the start date, the amount recorded for the liabilities relating to lease contracts increases to reflect the accrual of
\n
interest and reduces to reflect the payments made. Each lease payment is divided into a repayment of the capital portion
\n
of the liability and a financial cost. The financial cost is charged to the income statement over the term of the agreement
\n
to reflect a constant interest rate on the remaining debt portion of the liability for each period.
\n
The term of the lease is calculated taking into account the non-cancellable period of the lease together with the periods
\n
covered by an option to extend the agreement if it is reasonably certain that it will be exercised, or any period covered
\n
by an option to terminate the lease contract, if it is reasonably certain it will not be exercised. The Group assesses whether
\n
it is reasonably certain that it will exercise the options to extend or will terminate the agreements taking into account all
\n
the relevant factors that create a financial incentive for such decisions.
\n
On the basis of the practical expedients, recognition exemptions for low-value and short-term leases, equal to \u20ac 14.6
\n
million for 2022 (\u20ac 11.2 million for 2021) was not considered and \u20ac 5.2 million for 2022 (\u20ac 4.7 million for 2021) out of
\n
scope IFRS 16 which are comprise mainly away tolls and rent contracts for IT equipment.
\n
The agreements are either included or excluded from the application of the standard based on detailed analysis carried
\n
out for each agreement and in line with the rules laid down by IFRS standards.
\n
Financial liabilities relating to IFRS 16 leases are initially measured at the present value of the lease payments still to be
\n
paid.
\n
With respect to some of its leases, the Group has the option to extend or terminate them. The Group applies judgement
\n
when assessing whether it is reasonably certain to exercise renewal options. That said, the Group considers all relevant
\n
factors that may create an economic incentive to exercise the options to renew or terminate the lease. After the com-
\n
mencement date, the Group reassesses the lease term upon the occurrence of a significant event or a significant change
\n
in circumstances that are within its control and affect whether it can exercise (or not exercise) an option to renew or
\n
terminate the lease (e.g. investments in leasehold improvements or specific material changes to the leased asset). In
\n
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a
\n
change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to de-
\n
termine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
\n
\n \n
\n \n
\n \n
\n \n
\n
The exercise price for the underlying asset, in the presence of purchase options, and/or the contractual value of the
\n
penalties, in the case of early termination of the lease, are included in the value of the financial liability only if their
\n
exercise is reasonably certain.
\n
Following initial recognition, financial liabilities relating to IFRS 16 leases are valued using the amortized cost method.
\n
The discount rate at which the lease payments that are still to be paid are discounted is called lessee\u2019s incremental bor-
\n
rowing rate and is equal to the interest rate the lessor would have paid if they had borrowed money to the value of the
\n
right of use, with payment terms similar to the contractual duration of the lease in a similar economic environment.
\n
Management estimated the discount rate by individual country, on the basis of the contractual duration and the total
\n
amount of the current \u201clease portfolios with similar characteristics\u201d.
\n
\n \n \n
\n \n
\n
vi.
\n
Impairment of assets
\n
At each reporting date, the Group reviews the carrying value of its tangible and intangible assets to verify whether there
\n
is any indication that they were subject to an impairment loss. If there are indications of impairment, the Group estimates
\n
the recoverable amount of the assets to calculate the related impairment loss. If it is not possible to estimate individually
\n
the recoverable amount of an asset, the Group estimates the recoverable value of the cash generating unit to which the
\n
asset belongs.
\n
Intangible assets with an indefinite useful life, including goodwill, are assessed on an annual basis or more frequently if
\n
there is an indication of possible impairment losses.
\n
Recoverable amount is the higher of fair value less costs of disposal and value in use. In calculating the value in use, the
\n
estimated future cash flows are discounted to their current value using a discount rate that reflects the current market
\n
values relating to money and the risks associated with the asset.
\n
If the recoverable amount of an asset (or of the CGU) is estimated to be lower than its carrying value, it is reduced to the
\n
lower recoverable amount. Impairment losses are immediately recognized in the income statement.
\n
If a depreciation has no longer a reason to exist, the carrying value of the asset (or of the CGU), excluding the goodwill, is
\n
increased to the new amount resulting from the estimate of its recoverable value, but not above the net carrying value
\n
that the asset would have had if the loss had not occurred. The restored value is recognized in the income statement.
\n
\n \n
\n \n \n
\n \n
\n \n
\n
vii.
\n
Non-current assets held for sale and discontinued operations
\n
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying
\n
value and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an
\n
asset (disposal group), excluding finance costs and income tax expense.
\n
Non-current assets (and disposal groups) are classified as held for sale when the Group expects that their carrying value
\n
will be recovered through sale rather than used in its operating activities. This condition is met only when the sale is
\n
highly probable, the asset (or group of assets) is held for immediate sale in its current condition, and Management has
\n
committed to the sale, which should occur within 12 months from the date of classification of this item.
\n
Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
\n
Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial
\n
position.
\n
Financial activities related to ceased or discontinued operations, net of tax effects, are recognized under one single item
\n
in the consolidated income statement, including the comparative data of the relevant period.
\n
\n \n
\n \n
\n \n \n
\n \n
\n
viii.
\n
Investments in associates
\n
Investments in associates are recognized according to the equity method, starting from the date of the significant influ-
\n
ence by the Group up to the time when this influence ceases to exist, as described in the previous paragraph \u201cConsolida-
\n
tion and translation principles\u201d.
\n
\n \n
\n \n \n
\n
ix.
\n
Financial instruments - initial recognition and subsequent measurement
\n
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
\n
instrument of another entity.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Financial assets
\n
Initial recognition and measurement
\n
\n \n
Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other
\n
comprehensive income (OCI), and fair value through profit or loss.
\n
In line with IFRS 9, financial assets, which are represented by debt instruments (trade receivables, financial receivables,
\n
etc.), are classified on the basis of the business model (the way the Group manages financial assets in order to generate
\n
cash flows) and the contractual characteristics of the cash flows (the so-called SPPI test, \u201csolely payment of principal and
\n
interest\u201d), in one of the following categories:
\n
\u2022
\n
amortized cost, for the financial assets held with the aim of receiving the contractual cash flows which pass the SPPI
\n
test, since the cash flows represent solely payment of principal and interest; this category includes trade receivables,
\n
other operational receivables included in other current and non-current assets, and financial receivables included in
\n
other current and non-current financial assets;
\n
\n \n
\u2022
\n
fair value through shareholders\u2019 equity (FVOCI), for financial assets held with the aim of collecting cash flows, both
\n
contractual, which represent solely payments of principal and interest, and from sales. The changes in fair value sub-
\n
sequent to initial recognition are offset under OCI and are recycled to the income statement upon de-recognition;
\n
\u2022
\n \n
\n
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
\n
net changes in fair value recognised in the Income statement. This category mainly includes derivative instruments.
\n
\n \n
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow charac-
\n
teristics and the Group\u2019s business model for managing them.
\n \n
\n
With the exception of trade receivables that do not contain a significant financing component or for which the Group has
\n
applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial
\n
asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing
\n
component or for which the Group has applied the practical expedient are measured at the transaction price as disclosed
\n
in section (e) Revenue from contracts with customers.
\n
\n \n
The Group envisages, as per the provisions of the new IFRS 9, the treatment of non-strategic investments and investment
\n
funds shares at FVTPL; while other investments, which are considered strategic, are treated individually and, at the mo-
\n
ment, are all valued at FVTOCI.
\n \n
\n
Contingent consideration classified as an asset (or liability) that is a financial instrument and within the scope of IFRS 9
\n
Financial Instruments
\n
, is measured at fair value with the changes in fair value recognized in the income statement in
\n
accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is measured at fair value at
\n
each reporting date with changes in fair value recognized in income statement.
\n
\n \n \n
\n
Subsequent measurement
\n
\n \n
For purposes of subsequent measurement, financial assets are classified in four categories:
\n
\u2022
\n
Financial assets at amortized cost (debt instruments)
\n
\u2022
\n
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
\n
\u2022
\n
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon de-recog-
\n
nition (equity instruments)
\n
\u2022
\n
Financial assets at fair value through profit or loss
\n \n
\n
-
\n
Financial assets at amortized cost (debt instruments)
\n
Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are sub-
\n
ject to impairment. Gains and losses are recognized in income statement when the asset is derecognized, modified
\n
or impaired. The Group\u2019s financial assets at amortized cost includes trade receivables, loan to an associate and loan
\n
to a director included under other non-current financial assets. Trade receivables are originated in the ordinary course
\n
of business and held within a business model with the objective to hold the receivables in order to collect contractual
\n
cash flows that meet the \u2018solely payments of principal and interest\u2019 criterion under IFRS 9, therefore they are meas-
\n
ured at amortized cost using the effective interest rate method. The Group applies the amortized cost only for trade
\n
receivables with maturities greater than one year are discounted to present value.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
-
\n
Financial assets at fair value through OCI (debt instruments)
\n
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses
\n
or reversals are recognized in the income statement and computed in the same manner as for financial assets meas-
\n
ured at amortized cost. The remaining fair value changes are recognized in OCI. Upon de-recognition, the cumulative
\n
fair value change recognized in OCI is recycled to income statement. The Group\u2019s debt instruments at fair value
\n
through OCI includes investments in quoted debt instruments included under other non-current financial assets.
\n
\n
-
\n
Financial assets designated at fair value through OCI (equity instruments)
\n
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments des-
\n
ignated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presen-
\n
tation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and
\n
losses on these financial assets are never recycled to income statement. Dividends are recognized as other income in
\n
the income statement when the right of payment has been established, except when the Group benefits from such
\n
proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
\n
instruments designated at fair value through OCI are not subject to impairment assessment. The Group elected to
\n
classify irrevocably its non-listed equity investments under this category.
\n
\n
-
\n \n
\n
Financial assets at fair value through profit or loss
\n
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
\n
net changes in fair value recognized in the income statement. This category includes derivative instruments and listed
\n
equity investments which the Group had not irrevocably elected to classify at fair value through OCI. Dividends on
\n
listed equity investments are recognized as other income in the income statement when the right of payment has
\n
been established.
\n
\n \n \n
\n
De-recognition
\n
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
\n
derecognized (i.e., removed from the Group\u2019s consolidated statement of financial position) when:
\n
\u2022
\n
The rights to receive cash flows from the asset have expired
\n
Or
\n
\u2022
\n
The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
\n
received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement\u037e and either (a)
\n
the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred
\n
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
\n
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrange-
\n
ment, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither trans-
\n
ferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group
\n
continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Group also
\n
recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects
\n
the rights and obligations that the Group has retained.
\n
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
\n
original carrying amount of the asset and the maximum amount of consideration that the Group could be required to
\n
repay.
\n
\n \n \n
\n \n
\n \n
\n
Impairment
\n
Further disclosures relating to impairment of financial assets are also provided in the following notes:
\n
\u2022
\n
Disclosures for significant assumptions \u2013 refer to sub-paragraph \u2018xxi. - Significant accounting judgements, estimates
\n
and assumptions\u2019
\n
\u2022
\n
Trade receivables, including contract assets as described below
\n
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
\n
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract
\n
and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest
\n
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that
\n
are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default
\n
events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has
\n
been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected
\n
over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
\n
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the
\n
Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each re-
\n
porting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted
\n
for forward-looking factors specific to the debtors and the economic environment.
\n
\n \n
\n \n
\n \n
\n \n \n
\n \n
\n
Financial liabilities
\n
Initial recognition and measurement
\n
\n \n \n
\n
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
\n
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All fi-
\n
nancial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly
\n
attributable transaction costs. The Group\u2019s financial liabilities include trade and other payables, loans and borrowings
\n
including bank overdrafts and derivative financial instruments.
\n
\n \n \n
\n
Subsequent measurement
\n
\n \n
For purposes of subsequent measurement, financial liabilities are classified in two categories:
\n
\u2022
\n
Financial liabilities at fair value through profit or loss
\n
\u2022
\n
Financial liabilities at amortized cost (loans and borrowings)
\n
-
\n \n
\n
Financial liabilities at fair value through profit or loss
\n
Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as
\n
at fair value through profit or loss. Financial liabilities as at fair value through profit or loss also include derivative
\n
financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships
\n
as defined by IFRS 9. Financial liabilities designated upon initial recognition at fair value through profit or loss are
\n
designated at the initial date of recognition and only if the criteria in IFRS 9 are satisfied.
\n
\n \n \n
\n
-
\n
Financial liabilities at amortized cost (loans and borrowings)
\n
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\n
subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in income statement
\n
when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by
\n
taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The
\n
EIR amortization is included as finance costs in the income statement. This category generally applies to interest-
\n
bearing loans and borrowings.
\n
\n \n \n
\n
De-recognition
\n
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an
\n
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
\n
existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the orig-
\n
inal liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the
\n
income statement.
\n
\n \n
\n \n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Derivatives
\n
If derivative instruments are held for trading, they are measured at fair value while offset in the income statement; if the
\n
same are classified as effective hedging instruments against changes in the fair value of assets, liabilities, obligations
\n
assumed by the Group or related future cash flows, the Group applies hedge accounting.
\n
The Group, consistent with its internal policies, does not use financial instruments of a speculative nature (i.e. for trading).
\n
The Group uses financial derivative instruments mainly to hedge its exposure to exchange rate risk, interest rate risk and
\n
commodity price fluctuation risk.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
With reference to the classification of hedging transactions, the provisions of IFRS 9 require that:
\n
\u2022
\n
there is an economic relationship between the hedged item and the hedging instrument, such as to offset the related
\n
changes in value;
\n
\u2022
\n
this ability to offset is not undermined by the counterparty\u2019s credit risk level;
\n
a ratio between the hedged object and the hedging instrument (the so-called hedge ratio) is defined, in line with the
\n
derivatives risk management objectives, as part of the established derivatives risk management strategy, rebalancing
\n
where necessary. Changes in the derivatives risk management objectives, the termination of the above conditions to
\n
classify hedging transactions or rebalancing lead to the future, total or partial, discontinuation of the hedge.
\n
Financial instruments are recognized according to hedge accounting rules when:
\n
\u2022
\n
at the beginning of the hedging, the formal designation and documentation of the hedging exist;
\n
\u2022
\n
the hedging is assumed to be effective;
\n
\u2022
\n
the efficacy can be accurately measured and the hedging itself is highly effective during the relevant periods.
\n
The Group applies the cash flow hedge (IFRS 9), if the hedging relationship of changes in the cash flows originating from
\n
an asset or liability or a future transaction (hedged underlying element), that is deemed as likely to occur and that could
\n
have an impact on other comprehensive income and equity (cash flow hedge reserve), is formally documented.
\n
Changes in the value of the derivatives designated as fair value hedge and that are qualified as such, are recognized in
\n
the income statement, consistent with the changes in the fair value of the hedged assets and liabilities. If the derivative,
\n
even if created with non-speculative intent, does not meet all the formal requirements necessary to be designated in
\n
hedge accounting, the changes in fair value are recognized in the income statement, under the same line of the changes
\n
in hedged item.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n \n
\n
x.
\n
Inventories
\n
Inventories are recognized at the lesser value between purchase and production cost, according to the weighted average
\n
cost method and their net realizable value.
\n
Cost includes direct materials and direct labour general production costs and other costs incurred to bring inventories to
\n
their current location and condition.
\n
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
\n
and the estimated costs necessary to make the sale.
\n
Lastly, some obsolete stock provisions are calculated for materials, finished goods and spare parts that are considered
\n
obsolete or slow moving, keeping into account their expected future use and realizable value.
\n
\n \n \n
\n \n
\n \n
\n
xi.
\n
Cash and cash equivalents
\n
Cash and cash equivalents are recognized at their nominal value and include numeric values, i.e. those values that meet
\n
the requirement of on demand or very short-term availability, positive outcome and no costs of disposal with a maturity
\n
of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of
\n
changes in value. This item also includes the collection and payment instruments that have been subject to an account
\n
recording at the servicing financial institution as at the closing date of the period notwithstanding any subsequent differ-
\n
ent accounting records.
\n
\n \n
\n \n
\n \n \n
\n
xii.
\n
Treasury shares
\n
Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain
\n
or loss is recognised in Income statement on the purchase, sale, issue or cancellation of the Group\u2019s own equity instru-
\n
ments. Any gain or loss resulting from subsequent sales is recognised in equity.
\n
\n \n \n
\n
xiii.
\n
Provisions for risks and charges
\n
General
\n
The Group recognizes provisions for risks and charges when it has a present obligation, either legal or constructive, to-
\n
ward third parties arising from a past event, and it is likely that it will be necessary to use the resources of the Group to
\n
meet the obligation, and when it is possible to make an accurate estimate of the amount of the obligation itself.
\n
\n \n
\n \n
\n \n
\n \n
\n
When the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the
\n
reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense
\n
relating to a provision is presented in the income statement net of any reimbursement. If the effect of the time value of
\n
money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific
\n
to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a
\n
finance cost.
\n
Changes in estimates are reflected in the income statement of the period when the change has occurred.
\n
Disclosures about provisions follow IAS 37 (paragraph 92) which regulates and limits these indications when they might
\n
prejudice the company\u2019s position in any disputes.
\n \n
\n \n
\n \n
\n \n
\n
Uncertain tax position
\n
According to IFRIC23 \u2018Uncertainty over Income Tax Treatments\u2019 to clarify the accounting for uncertainties in income tax
\n
is applied.
\n
The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused
\n
tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12.
\n
In the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, an entity
\n
has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treat-
\n
ments, that it is used or plans to use in its income tax filling.
\n
If the entity concludes that it is probable that a particular tax treatment is accepted, the entity has to determine taxable
\n
profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment included
\n
in its income tax filings.
\n
If the entity concludes that it is not probable that a particular tax treatment is accepted, the entity has to use the most
\n
likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused
\n
tax losses, unused tax credits and tax rates. The decision should be based on which method provides better predictions
\n
of the resolution of the uncertainty.
\n
In case facts and circumstances changes, the entity shall reassess its judgements and estimates.
\n
\n \n
\n \n
\n \n
\n \n
Warranty provisions
\n
The Group provides warranties for general repairs of defects that existed at the time of sale, as required by law. Provisions
\n
related to these assurance-type warranties are recognized when the product is sold, or the service is provided to the
\n
customer. Initial recognition is based on historical experience. The estimate of warranty-related costs is revised annually.
\n
Restructuring provisions
\n
Restructuring provisions are recognized only when the Group has a constructive obligation, which is when: (i) there is a
\n
detailed formal plan that identifies the business or part of the business concerned, the location and number of employees
\n
affected, the detailed estimate of the associated costs, and the timeline; and (ii) the employees affected have been noti-
\n
fied of the plan\u2019s main features.
\n
\n \n \n
\n
xiv.
\n
Employment benefits
\n
Group companies provide post-employment benefits to staff, both directly and by contributing to external funds.
\n
The procedures for providing these benefits vary depending to the legal, fiscal and economic conditions in each country
\n
in which the Group operates.
\n
Employee benefits are accounted under the IAS 19 and IFRS 2.
\n
Group companies provide post-employment benefits through defined contribution and/or defined benefit plans.
\n
\n \n
\n \n
\n \n
\n \n
\n
Post-employment benefits
\n
i. Defined benefit plans
\n
The Group\u2019s obligations and the annual cost reported in the income statement are determined by independent actuaries
\n
using the projected unit credit method.
\n
The net cumulative value of actuarial gains and losses is recorded directly in the statement of other comprehensive in-
\n
come and is not subsequently recognized in the income statement. The costs associated with an increase in the present
\n
value of the obligation, as the time for payment of the benefits draws nearer, are included under financial expenses.
\n
Service costs are posted to the income statement.
\n
The liability recognized represents the present value of the defined benefit obligation, less the present value of plan
\n
assets. If an amendment to the plan changes the benefits accruing from past service, the costs arising from past service
\n
are recognized in the income statement at the time the change to the plan is made. The same treatment is applied if
\n
there is a change to the plan that reduces the number of employees or that amends the terms and conditions of the plan
\n
(the treatment is the same, regardless of whether the final result is a profit or a loss).
\n
For defined benefit plans, remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, ex-
\n
cluding amounts included in net interest on the net defined benefit/contribution liability and the return on plan assets
\n
(excluding amounts included in net interest on the net defined benefit/contribution liability), are recognized immediately
\n
in the statement of financial position with a corresponding debit or credit to retained earnings through OCI in the period
\n
in which they occur. Remeasurements are not reclassified to income statement in subsequent periods.
\n
Past service costs are recognized in income statement on the earlier of:
\n
\u2022
\n
The date of the plan amendment or curtailment, and
\n
\u2022
\n
The date that the Group recognizes related restructuring costs
\n
Net interest is calculated by applying the discount rate to the net defined benefit/contribution liability or asset. The Group
\n
recognizes the following changes in the net defined benefit/contribution obligation under \u2018cost of sales\u2019, \u2018administration
\n
expenses\u2019 and \u2018selling and distribution expenses\u2019 in the consolidated income statement (by nature):
\n
\u2022
\n
Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
\n
settlements
\n
\u2022
\n
Net interest expense or income
\n
ii. Defined contribution plans
\n
Since the Group fulfils its obligations by paying contributions to a separate entity (a fund), with no further obligations,
\n
the company records its contributions to the fund in respect of employees\u2019 service, without making any actuarial calcu-
\n
lation.
\n
Where these contributions have already been paid at the reporting date, no liabilities are recorded in the financial state-
\n
ments.
\n \n
\n
Share-based payments
\n
Employees (including senior executives) of the Group receive remuneration in the form of share-based payments,
\n
whereby employees render services as consideration for equity instruments (equity-settled transactions).
\n
Equity-settled transactions
\n
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an ap-
\n
propriate valuation model.
\n
That cost is recognized in employee benefits expense, together with a corresponding increase in equity (other capital
\n
reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting
\n
period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date
\n
reflects the extent to which the vesting period has expired and the Group\u2019s best estimate of the number of equity instru-
\n
ments that will ultimately vest. The expense or credit in the income statement for a period represents the movement in
\n
cumulative expense recognized as at the beginning and end of that period. Service and non-market performance condi-
\n
tions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions
\n
being met is assessed as part of the Group\u2019s best estimate of the number of equity instruments that will ultimately vest.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award,
\n
but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are
\n
reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service
\n
and/or performance conditions.
\n
No expense is recognized for awards that do not ultimately vest because non-market performance and/or service condi-
\n
tions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested
\n
irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or ser-
\n
vice conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized
\n
is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An addi-
\n
tional expense, measured as at the date of modification, is recognized for any modification that increases the total fair
\n
value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled
\n
by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately
\n
through profit or loss. The dilutive effect of outstanding options is reflected as additional share dilution in the computa-
\n
tion of diluted earnings per share.
\n
\n \n
\n \n \n
\n
xv.
\n
Grants
\n
Government grants, obtained against investments, are recognized in the income statement when the conditions for
\n
recognition are met (i.e. when there is reasonable certainty of recognition) as deferred income, over the period required
\n
to relate them to their respective costs.
\n
When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related
\n
asset.
\n
When the Group receives grants of non-monetary assets, the asset and the grant are recorded at nominal amounts and
\n
released to income statement over the expected useful life of the asset, based on the pattern of consumption of the
\n
benefits of the underlying asset by equal annual instalments.
\n
\n \n \n
\n \n
\n
xvi.
\n
Revenue and income
\n
\n \n
In order to recognize and measure revenue so as to faithfully represent the process of transferring goods and services to
\n
customers for an amount which reflects the expected consideration from the goods and services supplied, the Group
\n
applies a model consisting of five essential stages, as envisaged by IFRS 15: to identify the contract with the customer
\n
(stage 1); to identify the contractual obligations recognizing the goods or services which can be separated as separate
\n
obligations (stage 2); to determine the transaction price, i.e. the expected consideration (stage 3); to allocate the trans-
\n
action price to each obligation identified in the contract on the basis of the stand-alone sale price of each separable good
\n
or service (stage 4); to recognize revenue when the related performance obligation is satisfied, i.e. upon transfer of the
\n
good or service promised to the customer (stage 5). The transfer is considered completed when the customer obtains
\n
control of the good or service, which can happen at a point in time. The Group has generally concluded that it is the
\n
principal in its revenue arrangements, because it typically controls the goods or services before transferring them to the
\n
customer.
\n
In applying the aforementioned model, Ariston Group took into consideration the specific facts and circumstances mainly
\n
arising from the regulations in place in the various jurisdictions where the Group companies operate. The most important
\n
situations for the purposes of the consolidated financial statements refer mainly to the following revenue streams (stand-
\n
ard categories for contractual terms and conditions (T&C) with customers, which describe the nature, amount, timing
\n
and cash flows):
\n
\n \n
\n \n
\n \n
\n \n
\n
Revenue stream
\n
\"Revenue stream\" description
\n
% Revenues
\n
2022
\n
% Revenues
\n
2021
\n
Professional
\n
Customers are mainly installers, medium-large distribu-
\n
tors and professionals in the field of Thermal Comfort.
\n
Standard T&Cs apply and the main performance obliga-
\n
tion is characterized by the sale of finished products in-
\n
cluding variable considerations too.
\n
The Group acts as principal.
\n
73%
\n
70%
\n
DIY (Do it yourself)
\n
Customers are large retailers. The main performance obli-
\n
gation is characterized by the sale of finished products
\n
and the variable considerations are significant.
\n
T&Cs are decided by the customer by means
\n
of annual framework agreements.
\n
The Group acts as principal.
\n
7%
\n
7%
\n
Business-to-business
\n
(B2B)
\n
The main performance obligation is characterized by the
\n
sale of components, burners and heating only for specific
\n
projects: e.g., for institutions (schools, hospitals, etc.).
\n
The Group acts as principal.
\n
8%
\n
9%
\n
Service
\n
Indirect service
\n
: maintenance and repair services offered
\n
through Technical Support to the end customer.
\n
Direct service
\n
: maintenance and repair services offered di-
\n
rectly to the end customer.
\n
Spare Parts
\n
: Related to Service activities (in PL reported as
\n
Net Revenue from Sales).
\n
The Group acts as principal.
\n
12%
\n
14%
\n
Total
\n
100%
\n
100%
\n
The revenue from the sale of goods under the IFRS15 follow the here listed paragraphs:
\n
\u2022
\n
Cut off: revenue is recognized at a point in time on the basis of the means of delivery agreed with the customer;
\n \n
\n
\u2022
\n
Cash discount: cash discount is considered as a net of revenue;
\n
\n \n
\u2022
\n
Rights of Return: the Group uses the expected value method to estimate the variable consideration given the large
\n
number of contracts that have similar characteristics. A refund liability is recognized for the goods that are expected
\n
to be returned. A right of return asset (and corresponding adjustment to cost of sales) is also recognized for the right
\n
to recover the goods from the customer;
\n \n
\n
\u2022
\n
Volume rebate: volume rebate is calculated on actual basis and accounted balancing the accounts receivable;
\n
\n \n
\u2022
\n
Payables to Customers: Payable to customers includes cash amounts that the Group pays or expects to pay to the
\n
customers. Payables to customers are recognized as net of revenue;
\n
\u2022
\n
Warranties: the Group typically provides warranties for general repairs of defects that existed at the time of sale, as
\n
required by law. These assurance-type warranties are accounted for as warranty provisions. The Group also provides
\n
a warranty beyond fixing defects that existed at the time of sale. These service-type warranties are sold either sepa-
\n
rately or bundled together with the sale of products. Revenue for bundled sales and service-type warranty comprise
\n
two performance obligations due to the fact that products and service-type warranty are both sold on a stand-alone
\n
basis and are distinct within the context of the contract or the business practice of the market where the Group
\n
operates. Using the relative stand-alone selling price method, a portion of the transaction price is allocated to the
\n
service-type warranty and recognized as a contract liability. Revenue for service-type warranties is recognized over
\n
the period in which the service is provided based on the time elapsed.
\n
The revenue from service under the IFRS15 are accounted at point in time as well as over the time. The former is accom-
\n
plished not under service maintenance contracts but for pure repair once not covered by warranty.
\n
Under service mainte-
\n
nance contracts, the Group offers customers the opportunity to sign either a one-year or multi-years service contracts,
\n
under which the Group undertakes to perform maintenance service and remedy certain defects that are not covered by
\n
the warranty provided. Service contracts are separate performance obligations and are met over time in accordance with
\n
IFRS 15. The amount received is therefore taken up as revenue over the term of the service contract.
\n
\n \n
\n \n
\n \n
\n \n
\n
Assets and liabilities arising from rights of return
\n
Right of return assets
\n
A right-of-return asset is recognized for the right to recover the goods expected to be returned by customers. The asset
\n
is measured at the former carrying amount of the inventory, less any expected costs to recover the goods and any po-
\n
tential decreases in value. The Group updates the measurement of the asset for any revisions to the expected level of
\n
returns and any additional decreases in the value of the returned products.
\n
Refund liabilities
\n
A refund liability is recognized for the obligation to refund some or all of the consideration received (or receivable) from
\n
a customer. The Group\u2019s refund liabilities arise from customers\u2019 right of return. The liability is measured at the amount
\n
the Group ultimately expects it will have to return to the customer. The Group updates its estimates of refund liabilities
\n
(and the corresponding change in the transaction price) at the end of each reporting period.
\n
Regarding the use of significant assumptions to be referred to sub-paragraph \u2018
\n
Revenue recognition\u2019
\n
included in the para-
\n
graph \u2018
\n
Significant assumptions\u2019.
\n
\n \n \n
\n
xvii.
\n
Taxes
\n
Current income tax
\n
Current taxes are based on the taxable income for the year. The taxable income is different from the profit/loss recog-
\n
nized in the income statement since it excludes positive and negative items which are taxable or deductible in other years
\n
and it also excludes items that will never be taxable or deductible.
\n
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxa-
\n
tion authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
\n
enacted at the reporting date in the countries where the Group operates and generates taxable income.
\n
Current income tax relating to items recognized directly in equity is recognized in equity and not in the income statement.
\n
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
\n
regulations are subject to interpretation and establishes provisions where appropriate.
\n \n
\n
Deferred tax
\n
Deferred taxes are those that the Group expects to settle or recover based on the temporary differences between the
\n
carrying value of assets and liabilities and their corresponding tax values used for calculating taxable income. They are
\n
recognized using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable tem-
\n
porary differences, whereas deferred tax assets are recognized only if it is probable that there will be future taxable
\n
income against which deductible temporary differences can be used. Deferred tax assets and liabilities are not recognized
\n
if the temporary differences derive from goodwill or the initial recognition (not in business combinations) of other assets
\n
or liabilities in transactions that do not affect the profit (loss) for the year or the taxable income.
\n
In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint
\n
arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the
\n
temporary differences will not reverse in the foreseeable future.
\n
The carrying value of deferred tax assets is reviewed at each reporting date and impaired, if it is no longer probable that
\n
sufficient taxable income exists that can enable recovery of all or part of the assets.
\n
In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in
\n
joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differ-
\n
ences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences
\n
can be utilized.
\n
Deferred taxes are calculated at the tax rate that is expected to be applied when the asset is realized or the liability
\n
extinguished. Deferred taxes are recognized directly in the income statement, except for those related to items recog-
\n
nized directly under equity, in which case the deferred taxes are also recognized under equity.
\n
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off
\n
current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
\n
levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in
\n
each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recov-
\n
ered.
\n
\n \n
\n \n \n
\n
xviii.
\n
Earnings per share
\n
The basic earnings per share are calculated by dividing the portion of profit/loss attributable to the Group by the weighted
\n
average of the outstanding shares of the year.
\n
The diluted earnings per share are calculated keeping into account, both as regards the portion of profit/loss attributable
\n
to the Group and the above-mentioned weighted average, the impact deriving from the total subscription/conversion of
\n
all potential shares that may be issued through the exercise of outstanding options.
\n
\n \n \n
\n
xix.
\n
Dividends
\n
Dividends are recognised as changes in equity in the year when the Group\u2019s unconditional right to receive payment arises,
\n
that is when the shareholders\u2019 meeting approves the distribution of dividends.
\n
\n \n \n
\n
xx.
\n
Transactions in a foreign currency
\n
Should a company in the Group have a monetary item to be received or to be paid in regard to another foreign subsidiary,
\n
for which settlement is not planned nor is it likely that it may occur in the foreseeable future and is substantially part of
\n
the entity\u2019s net investment in this foreign operation, it is recognised in accordance with the provisions of IAS 21 (para-
\n
graphs 32 and 33). This envisages the treatment of the related differences in exchange rates recognised under the items
\n
of the statement of comprehensive income in the consolidated financial statements which include this foreign operation.
\n
\n \n \n
\n \n
\n \n
\n
xxi.
\n
Significant accounting judgements, estimates and assumptions
\n
The preparation of the Group\u2019s consolidated financial statements requires management to make judgements, estimates
\n
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
\n
disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjust-
\n
ment to the carrying amount of assets or liabilities affected in future periods.
\n
Judgements
\n \n
\n
Determining the lease term of contracts with renewal and termination options
\n
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
\n
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
\n
the lease, if it is reasonably certain not to be exercised. The Group has several lease contracts that include extension and
\n
termination options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exer-
\n
cise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive
\n
for it to exercise either the renewal or termination. After the commencement date, the Group reassesses the lease term
\n
if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not
\n
to exercise the option to renew or to terminate. The Group included the renewal period as part of the lease term for
\n
leases of plant and machinery with shorter non-cancellable period. Furthermore, the periods covered by termination
\n
options are included as part of the lease term only when they are reasonably certain not to be exercised.
\n
\n \n
Estimates and assumptions
\n
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
\n
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
\n
financial year, are described below. The Group based its assumptions and estimates on parameters available when the
\n
consolidated financial statements were prepared. Existing circumstances and assumptions about future developments,
\n
however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such
\n
changes are reflected in the assumptions when they occur.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Impairment of non-financial assets
\n
When the carrying amount of property, plant and equipment, investment property, intangible assets, right-of-use assets,
\n
goodwill and investments in associates/joint ventures exceeds its recoverable amount, which is the higher of the fair
\n
value less costs of disposal and the value in use, the assets are impaired. Such impairments are carried out in accordance
\n
with the provisions of IAS 36, as described in greater detail in note 2.1. In order to determine the recoverable amount,
\n
the Group generally adopts the value in use criterion. Value in use is based on the estimated future cash flows generated
\n
by the asset, discounted to their present value using a pre-tax discount rate that reflects the current market assessment
\n
of the time value of money and of the specific risks of the asset. Future cash flows used to determine value in use are
\n
based on the most recent business plan, approved by the management, containing forecasts for volumes, revenue, op-
\n
erating costs. These projections cover the next three years. For subsequent years, the assumption is the perpetual in-
\n
come. Nevertheless, possible changes in the underlying assumptions on which the calculation of such amounts is based
\n
could generate different recoverable amounts. The analysis of each group of non-financial assets is unique and requires
\n
management to use estimates and assumptions considered prudent and reasonable in the specific circumstances.
\n
\n \n \n
\n \n
\n \n
\n \n
\n
Provision for expected credit losses of trade receivables and contract assets
\n
The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
\n
based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography,
\n
and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group\u2019s
\n
historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with
\n
forward-looking information. For instance, if forecast economic conditions are expected to deteriorate over the next year
\n
which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted.
\n
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
\n
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
\n
The Group\u2019s historical credit loss experience and forecast of economic conditions may also not be representative of cus-
\n
tomer\u2019s actual default in the future. The information about the ECLs on the Group\u2019s trade receivables and contract assets
\n
is disclosed in \u2018Credit Risk\u2019 included in section \u20186.4 - Other information\u2019.
\n
\n \n
\n \n
\n \n
\n \n
\n \n \n
\n \n
\n \n
\n \n
Income taxes include all taxes based upon the taxable profits of the Group. Taxes on income are recognized in income
\n
statement except to the extent they relate to items recognized directly in equity or in other comprehensive income, in
\n
which case the related tax effects are recognized directly in equity or in other comprehensive income. Deferred taxes are
\n
calculated on temporary differences between the tax base of an asset or liability and the carrying amounts in the Consol-
\n
idated Financial Statements, Deferred tax assets relating to the carry-forward of unused tax losses are recognized to the
\n
extent it is probable future profits will be available against which they can be utilized. Current and deferred income tax
\n
assets and liabilities are offset when the income taxes are levied by the same taxation authority and where there is a
\n
legally enforceable right of offset. Deferred tax assets and liabilities are measured at the enacted or substantively enacted
\n
tax rates of the relevant tax jurisdictions that are expected to apply to taxable income during the period or periods in
\n
which the temporary differences reverse. Other taxes not based on taxable profits, such as property taxes and taxes on
\n
capital, are included in operating expenses.
\n
\n \n
\n \n \n
\n
Defined benefit plans (pension benefits)
\n
The cost of the defined benefit pension plan and other post-employment medical benefits and the present value of the
\n
pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions
\n
that may differ from actual developments in the future. These include the determination of the discount rate, future
\n
salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its
\n
long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
\n
reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appro-
\n
priate discount rate, management considers the interest rates of corporate bonds in currencies consistent with the cur-
\n
rencies of the post-employment benefit obligation with at least an \u2018AA\u2019 rating or above, as set by an internationally
\n
acknowledged rating agency, and extrapolated as needed along the yield curve to correspond with the expected term of
\n
the defined benefit obligation. The underlying bonds are further reviewed for quality. Those having excessive credit
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
spreads are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not rep-
\n
resent high quality corporate bonds. The mortality rate is based on publicly available mortality tables for the specific
\n
countries. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary
\n
increases and pension increases are based on expected future inflation rates for the respective countries.
\n
\n \n \n
\n
Fair value measurement of financial instruments
\n
When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be
\n
measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the
\n
discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but
\n
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations
\n
of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the
\n
reported fair value of financial instruments. Contingent consideration, resulting from business combinations, is valued at
\n
fair value at the acquisition date as part of the business combination. When the contingent consideration meets the
\n
definition of a financial liability, it is subsequently remeasured to fair value at each reporting date. The determination of
\n
the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting
\n
each performance target and the discount factor.
\n
\n \n \n
\n
Development costs
\n
The Group capitalises costs for product development projects. Initial capitalisation of costs is based on management\u2019s
\n
judgement that technological and economic feasibility is confirmed, usually when a product development project has
\n
reached a defined milestone according to an established project management model. In determining the amounts to be
\n
capitalised, management makes assumptions regarding the expected future cash generation of the project, discount
\n
rates to be applied and the expected period of benefits.
\n
\n \n \n
\n \n
\n
Revenue recognition - Estimating variable consideration for returns and volume rebates
\n
The Group estimates variable considerations to be included in the transaction price for the sale of goods with rights of
\n
return and volume rebates.
\n
The Group has developed a statistical model for forecasting sales returns. The model uses the historical return data of
\n
each product to come up with expected return percentages. These percentages are applied to determine the expected
\n
value of the variable consideration. Any significant changes in experience as compared to historical return pattern will
\n
impact the expected return percentages estimated by the Group.
\n
The Group\u2019s expected volume rebates are analysed on a per customer basis for contracts that are subject to a single
\n
volume threshold. Determining whether a customer will be likely entitled to rebate will depend on the customer\u2019s histor-
\n
ical rebates entitlement and accumulated purchases to date.
\n
The Group applied the statistical model for estimating expected volume rebates for contracts. The model uses the his-
\n
torical purchasing patterns and rebates entitlement of customers to determine the expected rebate percentages and the
\n
expected value of the variable consideration. Any significant changes in experience as compared to historical purchasing
\n
patterns and rebate entitlements of customers will impact the expected rebate percentages estimated by the Group.
\n
\n \n
\n \n \n
\n
Leases - Estimating the incremental borrowing rate
\n
The Incremental Borrowing Rate (IBR) is defined as the interest rate the lessee would incur to borrow under a secured
\n
loan with terms similar to those of the lease, with a similar security and in a similar economic environment. Such interest
\n
rate is identified through the Bloomberg database by applying the following relevant criteria to enhance the comparabil-
\n
ity:
\n
\u2022
\n
The credit rating;
\n
\u2022
\n
The term of the loan;
\n
\u2022
\n
The currency of denomination;
\n
\u2022
\n
The geographies (depending on the cases, countries or regions);
\n
\u2022
\n
The industry of the borrowing entity.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
In order to obtain statistically significant samples of comparable transactions, a flexibility in the above criteria shall be
\n
preserved and specific adjustments can be made to account for particular comparability factors. When the base rate is
\n
negative, a zero floor to the base rate is applied.
\n
For more information on leases, please see note 2.2 and 3.5.
\n
\n \n \n
\n
Contingent liabilities
\n
The Group trigger provisions once pending or threatened disputes or legal proceedings are considered as a probable
\n
event, for which there could be an outflow of funds with the amount reasonably estimated. If an outflow of funds be-
\n
comes possible but the amount cannot be estimated, the matter is disclosed in the notes to the Consolidated Financial
\n
Statements. The Group could be subject of legal and tax proceedings from various jurisdictions and for complex issues
\n
therefore eventually monitoring the status of pending legal proceedings consulting with matters\u2019 experts on regular basis.
\n
Due to the uncertainty inherent to in matters, it is difficult to predict the outflow of funds that could result from such
\n
disputes with any certainty.
\n
\n \n
Climate change
\n
In preparing the Consolidated Financial Statements the Group has considered the impact of climate change as requested
\n
by ESMA in its ECEP published in October 2021. Ariston Group pursues the definition of paradigms related to energy
\n
efficiency and to minimizing the environmental footprints. The Group is constantly evolving in order to be a forerunner
\n
about the negative environmental impacts.
\n
In the Consolidated Financial Statements, the Group does not have a material climate change impacts given that the
\n
Group has embraced a day-by-day handling dedicated to technological progress.
\n
In applying the Accounting Standards, the Group has considered the impacts arising from climate change. In particular,
\n
the Group, in performing the impairment activities of non-financial assets, has considered the economic and financial
\n
impacts resulting from the actions carried out by the Group in order to be in compliance with climate changes regulations.
\n
In performing the analysis on Inventory, the Group has considered for materials and products in stock the technological
\n
obsolescence which can arise from climate changes.
\n
\n \n
\n \n
\n \n
\n
ii.
\n
Fair value measurement
\n
The Group measures financial instruments such as derivatives, and non-financial assets at fair value at each balance sheet
\n
date.
\n
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
\n
market participants at the measurement date. The fair value measurement is based on the presumption that the trans-
\n
action to sell the asset or transfer the liability takes place either:
\n
\u2022
\n
In the principal market for the asset or liability
\n
Or
\n
\u2022
\n
In the absence of a principal market, in the most advantageous market for the asset or liability, the principal or the
\n
most advantageous market must be accessible by the Group.
\n
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
\n
the asset or liability, assuming that market participants act in their economic best interest.
\n
A fair value measurement of a non-financial asset takes into account a market participant\u2019s ability to generate economic
\n
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
\n
asset in its highest and best use.
\n
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
\n
to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
\n
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within
\n
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measure-
\n
ment as a whole:
\n
\u2022
\n
Level 1 \u2013 Quoted (unadjusted) market prices in active markets for identical assets or liabilities
\n
\u2022
\n
Level 2 \u2013 Valuation techniques for which the lowest level input that is significant to the fair value measurement is
\n
directly or indirectly observable
\n
\u2022
\n
Level 3 \u2013 Valuation techniques for which the lowest level input that is significant to the fair value measurement is
\n
unobservable
\n
For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Group de-
\n
termines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the
\n
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
\n
The Group determines the policies and procedures for both recurring fair value measurement, such as investment prop-
\n
erties and unquoted financial assets, and for non-recurring measurement, such as assets held for sale in discontinued
\n
operations.
\n
External valuators are involved for valuation of significant assets, such as investment properties and unquoted financial
\n
assets, and significant liabilities, such as contingent consideration.
\n
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the
\n
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above.
\n
\n
Fair value measurement of financial instruments
\n
When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be
\n
measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the
\n
discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but
\n
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations
\n
of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the
\n
reported fair value of financial instruments. Contingent consideration, resulting from business combinations, is valued at
\n
fair value at the acquisition date as part of the business combination. When the contingent consideration meets the
\n
definition of a financial liability, it is subsequently remeasured to fair value at each reporting date. The determination of
\n
the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting
\n
each performance target and the discount factor.
\n
\n \n
\n
iii.
\n
Intangible assets
\n
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
\n
in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are
\n
carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles,
\n
excluding capitalized development costs, are not capitalized and the related expenditure is reflected in income statement
\n
in the period in which the expenditure is incurred.
\n
The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amor-
\n
tized over the useful economic life and assessed for impairment
\n
whenever there is an indication that the intangible asset
\n
may be impaired. The amortization period and the
\n
amortization method for an intangible asset with a finite useful life
\n
are reviewed at least at the end of each
\n
reporting period. Changes in the expected useful life or the expected pattern of
\n
consumption of future
\n
economic benefits embodied in the asset are considered to modify the amortization period or
\n
\n \n
\n \n
\n
method, as
\n
appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible
\n
assets with finite lives is recognized in the income statement in the expense category that is
\n
consistent with the function
\n
of the intangible assets.
\n
Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually
\n
or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the
\n
indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospec-
\n
tive basis.
\n
An intangible asset is derecognized upon disposal (i.e., at the date the recipient obtains control) or when no future eco-
\n
nomic benefits are expected from its use or disposal. Any gain or loss arising upon de-recognition of the asset (calculated
\n
as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income
\n
statement.
\n
\n \n
\n \n
\n \n
\n
Internally generated intangible assets \u2013 Research and development costs
\n
Research costs are recognized in the income statement for the period in which they are incurred.
\n
Internally generated intangible assets deriving from the development of the Group\u2019s products are recognized under as-
\n
sets, only if all of the following conditions are met:
\n
\u2022
\n
The technical feasibility of completing the intangible asset so that the asset will be available for use or sale
\n
\u2022
\n
Its intention to complete and its ability and intention to use or sell the asset
\n
\u2022
\n
How the asset will generate future economic benefits
\n
\u2022
\n
The availability of resources to complete the asset
\n
\u2022
\n
The ability to measure reliably the expenditure during development
\n
The capitalized development costs include only the expense incurred which may be attributed directly to the develop-
\n
ment process.
\n
These intangible assets with definite useful life are amortized on a straight-line basis over the respective useful life of the
\n
product, which is normally 5 years. Any impairment losses, and any restatement, are based on the same methods de-
\n
scribed in the section \u201cImpairment of assets\u201d.
\n
If the internally generated assets cannot be recognized in the financial statements, the development costs are recognized
\n
in the income statement for the period in which they are incurred.
\n
\n \n
Other intangible assets
\n
Other intangible assets, whether purchased or internally produced, are recognized under assets in compliance with IAS
\n
38
\n
Intangible Assets
\n
, if it is likely that the use of the assets will generate future economic benefits and when the cost of
\n
the asset can be accurately measured.
\n
These assets (such as concessions, licenses, trademarks and software) with a definite useful life are recognized at pur-
\n
chase or production cost and amortized on a straight-line basis over their estimated useful life. Any impairment losses,
\n
and any restatement, are based on the same methods described in the section \u201cImpairment of assets\u201d
\n
\n \n
\n \n
\n
Intangible assets with indefinite useful life are not amortized but are subject to evaluation in order to identify any impair-
\n
ment loss, yearly or more frequently, at any time there is an indication that the asset may have been impaired.
\n
The other intangible assets recognized following the acquisition of a company are recognized separately from the good-
\n
will, if their current value can be accurately measured.
\n
Here below are the principles applied by the Group for intangible assets (IAS 38.118) (a) (b):
\n
Licenses
\n
Trademarks
\n
Development costs
\n
Software
\n
Useful life
\n
Definite (5 years)
\n
Indefinite
\n
Definite (5 years)
\n
Definite (4 years)
\n
Amortisation
\n
method used
\n
Amortised on a straight-
\n
line basis over the period
\n
of the license itself
\n
No amortisation
\n
Amortised on a straight-
\n
line basis over the pe-
\n
riod of expected future
\n
sales resulting from the
\n
related project
\n
Amortised on a
\n
straight-line basis
\n
over the period of
\n
the usage of the
\n
software itself
\n
Produced in-house
\n
or purchased
\n
Purchased
\n
Purchased
\n
Produced in-house
\n
Purchased
\n
\n \n
\n
Internally generated intangible assets \u2013 Research and development costs
\n
Research costs are recognized in the income statement for the period in which they are incurred.
\n
Internally generated intangible assets deriving from the development of the Group\u2019s products are recognized under as-
\n
sets, only if all of the following conditions are met:
\n
\u2022
\n
The technical feasibility of completing the intangible asset so that the asset will be available for use or sale
\n
\u2022
\n
Its intention to complete and its ability and intention to use or sell the asset
\n
\u2022
\n
How the asset will generate future economic benefits
\n
\u2022
\n
The availability of resources to complete the asset
\n
\u2022
\n
The ability to measure reliably the expenditure during development
\n
The capitalized development costs include only the expense incurred which may be attributed directly to the develop-
\n
ment process.
\n
These intangible assets with definite useful life are amortized on a straight-line basis over the respective useful life of the
\n
product, which is normally 5 years. Any impairment losses, and any restatement, are based on the same methods de-
\n
scribed in the section \u201cImpairment of assets\u201d.
\n
If the internally generated assets cannot be recognized in the financial statements, the development costs are recognized
\n
in the income statement for the period in which they are incurred.
\n
\n
Development costs
\n
The Group capitalises costs for product development projects. Initial capitalisation of costs is based on management\u2019s
\n
judgement that technological and economic feasibility is confirmed, usually when a product development project has
\n
reached a defined milestone according to an established project management model. In determining the amounts to be
\n
capitalised, management makes assumptions regarding the expected future cash generation of the project, discount
\n
rates to be applied and the expected period of benefits.
\n
\n \n
\n \n
\n
iv.
\n
Property, plant and equipment
\n
\n \n
\n \n
Property, plant and equipment are recognized at cost, net of accumulated depreciation and impairment losses, if any.
\n
Construction in progress is stated at cost, net of accumulated impairment losses, if any.
\n
The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the
\n
respective asset if the recognition criteria for a provision are met.
\n
Assets with components of a significant value and with a different useful life are recognized separately when depreciated.
\n
Under IAS 16 Property, Plant and Equipment an entity has a policy choice for the measurement of property, plant and
\n
equipment after initial recognition. An entity may choose either the cost model or the revaluation model for entire classes
\n
of property, plant and equipment. The Group has elected to use the cost model for all class of assets.
\n \n
\n
The depreciation is calculated on a straight-line basis, according to the cost of the asset net of all residual values, on its
\n
estimated useful economic-technical life through the use of depreciation rates that accurately represent it. If significant
\n
parts of these tangible assets have a different useful life, they will be stated separately. The depreciation will be based
\n
on the following percentage rates:
\n
Buildings and light constructions
\n
from 1.8 to 3.0
\n
Plant and machinery
\n
from 6.0 to 15.5
\n
Industrial and commercial equipment
\n
from 10.0 to 25.0
\n
Cars and internal transport vehicles
\n
from 20.0 to 25.0
\n
Furniture, office equipment, data processing systems
\n
from 12.0 to 20.0
\n
The Group reviews the estimated residual values and expected useful lives of assets at least annually.
\n
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
\n
financial year end and adjusted prospectively, if appropriate.
\n
Land with no construction or annexed to residential and industrial buildings, is not depreciated since it has an unlimited
\n
useful life.
\n
\n \n
An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal (i.e.,
\n
at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal.
\n
Gains and losses arising from the sale or disposal of assets are calculated as the difference between revenue from sales
\n
and the net carrying value of the asset, and are recognized in the income statement for the year.
\n
\n \n
\n
iv.
\n
Property, plant and equipment
\n
\n \n
\n
The depreciation is calculated on a straight-line basis, according to the cost of the asset net of all residual values, on its
\n
estimated useful economic-technical life through the use of depreciation rates that accurately represent it. If significant
\n
parts of these tangible assets have a different useful life, they will be stated separately. The depreciation will be based
\n
on the following percentage rates:
\n
Buildings and light constructions
\n
from 1.8 to 3.0
\n
Plant and machinery
\n
from 6.0 to 15.5
\n
Industrial and commercial equipment
\n
from 10.0 to 25.0
\n
Cars and internal transport vehicles
\n
from 20.0 to 25.0
\n
Furniture, office equipment, data processing systems
\n
from 12.0 to 20.0
\n
The Group reviews the estimated residual values and expected useful lives of assets at least annually.
\n
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
\n
financial year end and adjusted prospectively, if appropriate.
\n
Land with no construction or annexed to residential and industrial buildings, is not depreciated since it has an unlimited
\n
useful life.
\n
\n
iv.
\n
Property, plant and equipment
\n
\n \n
\n
v.
\n
Leases
\n
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the
\n
right to control the use of an identified asset for a period of time in exchange for consideration.
\n
The rights of use relating to leases are recognized in a single accounting model to recognize the lease. In accordance with
\n
this model, the entity recognizes: (1) assets and liabilities for all leases with a duration of over twelve months; (2) sepa-
\n
rately in the income statement, the amortization/depreciation of the recognized asset and the interest on the financial
\n
payable recorded.
\n
More specifically, in order to determine the value of the assets with \u201cright of use\u201d, the value of the related discounted
\n
liabilities, any payments made to the lessor before signing the contract, net of the incentives received, the initial direct
\n
costs incurred by the lessee as well as the provisions for removal and dismantling, if any, were taken into account.
\n
Lease agreements in place within the Group ranges from offices, warehouses, plants, machinery and vehicles and low
\n
value assets belonging to third parties.
\n
Lease terms are generally ranging from 1-10 years but may contains options to extend them. Terms of lease may also
\n
contain wide range of different conditions.
\n
Falling under the IFRS 16 guidelines, the rights of use are valued at cost, net of accumulated amortization and impairment
\n
losses and adjusted after any remeasurement of the lease liabilities. The value assigned to the rights of use corresponds
\n
to the amount of the lease liabilities recognized, plus initial direct costs incurred, lease payments settled on the start date
\n
of the agreement or previously, and restoration costs, net of any lease incentives received.
\n
The value of the liability, discounted to present value, as determined above, increases the right of use of the underlying
\n
asset, and a dedicated liablity is created as a contra-entry. The rights of use are amortized on a straight-line basis over its
\n
estimated useful life or the term of the agreement, whichever is the shorter. The financial liability for leases is recognized
\n
on the start date of the agreement at a total value equal to the present value of the lease payments to be made during
\n
the term of the agreement, discounted to present value using incremental borrowing rates (IBR) when the implicit inter-
\n
est rate in the lease agreement cannot easily be determined. Variable lease payments which are not linked to an index
\n
or rate continue to be charged to the income statement as costs for the period.
\n
After the start date, the amount recorded for the liabilities relating to lease contracts increases to reflect the accrual of
\n
interest and reduces to reflect the payments made. Each lease payment is divided into a repayment of the capital portion
\n
of the liability and a financial cost. The financial cost is charged to the income statement over the term of the agreement
\n
to reflect a constant interest rate on the remaining debt portion of the liability for each period.
\n
The term of the lease is calculated taking into account the non-cancellable period of the lease together with the periods
\n
covered by an option to extend the agreement if it is reasonably certain that it will be exercised, or any period covered
\n
by an option to terminate the lease contract, if it is reasonably certain it will not be exercised. The Group assesses whether
\n
it is reasonably certain that it will exercise the options to extend or will terminate the agreements taking into account all
\n
the relevant factors that create a financial incentive for such decisions.
\n
On the basis of the practical expedients, recognition exemptions for low-value and short-term leases, equal to \u20ac 14.6
\n
million for 2022 (\u20ac 11.2 million for 2021) was not considered and \u20ac 5.2 million for 2022 (\u20ac 4.7 million for 2021) out of
\n
scope IFRS 16 which are comprise mainly away tolls and rent contracts for IT equipment.
\n
The agreements are either included or excluded from the application of the standard based on detailed analysis carried
\n
out for each agreement and in line with the rules laid down by IFRS standards.
\n
Financial liabilities relating to IFRS 16 leases are initially measured at the present value of the lease payments still to be
\n
paid.
\n
With respect to some of its leases, the Group has the option to extend or terminate them. The Group applies judgement
\n
when assessing whether it is reasonably certain to exercise renewal options. That said, the Group considers all relevant
\n
factors that may create an economic incentive to exercise the options to renew or terminate the lease. After the com-
\n
mencement date, the Group reassesses the lease term upon the occurrence of a significant event or a significant change
\n
in circumstances that are within its control and affect whether it can exercise (or not exercise) an option to renew or
\n
terminate the lease (e.g. investments in leasehold improvements or specific material changes to the leased asset). In
\n
addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a
\n
change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to de-
\n
termine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
\n
\n \n
\n
The exercise price for the underlying asset, in the presence of purchase options, and/or the contractual value of the
\n
penalties, in the case of early termination of the lease, are included in the value of the financial liability only if their
\n
exercise is reasonably certain.
\n
Following initial recognition, financial liabilities relating to IFRS 16 leases are valued using the amortized cost method.
\n
The discount rate at which the lease payments that are still to be paid are discounted is called lessee\u2019s incremental bor-
\n
rowing rate and is equal to the interest rate the lessor would have paid if they had borrowed money to the value of the
\n
right of use, with payment terms similar to the contractual duration of the lease in a similar economic environment.
\n
Management estimated the discount rate by individual country, on the basis of the contractual duration and the total
\n
amount of the current \u201clease portfolios with similar characteristics\u201d.
\n
\n
Determining the lease term of contracts with renewal and termination options
\n
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
\n
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
\n
the lease, if it is reasonably certain not to be exercised. The Group has several lease contracts that include extension and
\n
termination options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exer-
\n
cise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive
\n
for it to exercise either the renewal or termination. After the commencement date, the Group reassesses the lease term
\n
if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not
\n
to exercise the option to renew or to terminate. The Group included the renewal period as part of the lease term for
\n
leases of plant and machinery with shorter non-cancellable period. Furthermore, the periods covered by termination
\n
options are included as part of the lease term only when they are reasonably certain not to be exercised.
\n
\n
Leases - Estimating the incremental borrowing rate
\n
The Incremental Borrowing Rate (IBR) is defined as the interest rate the lessee would incur to borrow under a secured
\n
loan with terms similar to those of the lease, with a similar security and in a similar economic environment. Such interest
\n
rate is identified through the Bloomberg database by applying the following relevant criteria to enhance the comparabil-
\n
ity:
\n
\u2022
\n
The credit rating;
\n
\u2022
\n
The term of the loan;
\n
\u2022
\n
The currency of denomination;
\n
\u2022
\n
The geographies (depending on the cases, countries or regions);
\n
\u2022
\n
The industry of the borrowing entity.
\n
\n
In order to obtain statistically significant samples of comparable transactions, a flexibility in the above criteria shall be
\n
preserved and specific adjustments can be made to account for particular comparability factors. When the base rate is
\n
negative, a zero floor to the base rate is applied.
\n
For more information on leases, please see note 2.2 and 3.5.
\n
\n \n
\n
vi.
\n
Impairment of assets
\n
At each reporting date, the Group reviews the carrying value of its tangible and intangible assets to verify whether there
\n
is any indication that they were subject to an impairment loss. If there are indications of impairment, the Group estimates
\n
the recoverable amount of the assets to calculate the related impairment loss. If it is not possible to estimate individually
\n
the recoverable amount of an asset, the Group estimates the recoverable value of the cash generating unit to which the
\n
asset belongs.
\n
Intangible assets with an indefinite useful life, including goodwill, are assessed on an annual basis or more frequently if
\n
there is an indication of possible impairment losses.
\n
Recoverable amount is the higher of fair value less costs of disposal and value in use. In calculating the value in use, the
\n
estimated future cash flows are discounted to their current value using a discount rate that reflects the current market
\n
values relating to money and the risks associated with the asset.
\n
If the recoverable amount of an asset (or of the CGU) is estimated to be lower than its carrying value, it is reduced to the
\n
lower recoverable amount. Impairment losses are immediately recognized in the income statement.
\n
If a depreciation has no longer a reason to exist, the carrying value of the asset (or of the CGU), excluding the goodwill, is
\n
increased to the new amount resulting from the estimate of its recoverable value, but not above the net carrying value
\n
that the asset would have had if the loss had not occurred. The restored value is recognized in the income statement.
\n
\n \n
\n
Impairment of non-financial assets
\n
When the carrying amount of property, plant and equipment, investment property, intangible assets, right-of-use assets,
\n
goodwill and investments in associates/joint ventures exceeds its recoverable amount, which is the higher of the fair
\n
value less costs of disposal and the value in use, the assets are impaired. Such impairments are carried out in accordance
\n
with the provisions of IAS 36, as described in greater detail in note 2.1. In order to determine the recoverable amount,
\n
the Group generally adopts the value in use criterion. Value in use is based on the estimated future cash flows generated
\n
by the asset, discounted to their present value using a pre-tax discount rate that reflects the current market assessment
\n
of the time value of money and of the specific risks of the asset. Future cash flows used to determine value in use are
\n
based on the most recent business plan, approved by the management, containing forecasts for volumes, revenue, op-
\n
erating costs. These projections cover the next three years. For subsequent years, the assumption is the perpetual in-
\n
come. Nevertheless, possible changes in the underlying assumptions on which the calculation of such amounts is based
\n
could generate different recoverable amounts. The analysis of each group of non-financial assets is unique and requires
\n
management to use estimates and assumptions considered prudent and reasonable in the specific circumstances.
\n
\n
vi.
\n
Impairment of assets
\n
At each reporting date, the Group reviews the carrying value of its tangible and intangible assets to verify whether there
\n
is any indication that they were subject to an impairment loss. If there are indications of impairment, the Group estimates
\n
the recoverable amount of the assets to calculate the related impairment loss. If it is not possible to estimate individually
\n
the recoverable amount of an asset, the Group estimates the recoverable value of the cash generating unit to which the
\n
asset belongs.
\n
Intangible assets with an indefinite useful life, including goodwill, are assessed on an annual basis or more frequently if
\n
there is an indication of possible impairment losses.
\n
Recoverable amount is the higher of fair value less costs of disposal and value in use. In calculating the value in use, the
\n
estimated future cash flows are discounted to their current value using a discount rate that reflects the current market
\n
values relating to money and the risks associated with the asset.
\n
If the recoverable amount of an asset (or of the CGU) is estimated to be lower than its carrying value, it is reduced to the
\n
lower recoverable amount. Impairment losses are immediately recognized in the income statement.
\n
If a depreciation has no longer a reason to exist, the carrying value of the asset (or of the CGU), excluding the goodwill, is
\n
increased to the new amount resulting from the estimate of its recoverable value, but not above the net carrying value
\n
that the asset would have had if the loss had not occurred. The restored value is recognized in the income statement.
\n
\n \n
\n
Impairment
\n
Further disclosures relating to impairment of financial assets are also provided in the following notes:
\n
\u2022
\n
Disclosures for significant assumptions \u2013 refer to sub-paragraph \u2018xxi. - Significant accounting judgements, estimates
\n
and assumptions\u2019
\n
\u2022
\n
Trade receivables, including contract assets as described below
\n
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
\n
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract
\n
and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest
\n
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that
\n
are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not
\n
\n \n
\n \n
\n \n
\n
been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default
\n
events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has
\n
been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected
\n
over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
\n
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the
\n
Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each re-
\n
porting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted
\n
for forward-looking factors specific to the debtors and the economic environment.
\n
\n \n
\n \n
\n \n
\n
Impairment of non-financial assets
\n
When the carrying amount of property, plant and equipment, investment property, intangible assets, right-of-use assets,
\n
goodwill and investments in associates/joint ventures exceeds its recoverable amount, which is the higher of the fair
\n
value less costs of disposal and the value in use, the assets are impaired. Such impairments are carried out in accordance
\n
with the provisions of IAS 36, as described in greater detail in note 2.1. In order to determine the recoverable amount,
\n
the Group generally adopts the value in use criterion. Value in use is based on the estimated future cash flows generated
\n
by the asset, discounted to their present value using a pre-tax discount rate that reflects the current market assessment
\n
of the time value of money and of the specific risks of the asset. Future cash flows used to determine value in use are
\n
based on the most recent business plan, approved by the management, containing forecasts for volumes, revenue, op-
\n
erating costs. These projections cover the next three years. For subsequent years, the assumption is the perpetual in-
\n
come. Nevertheless, possible changes in the underlying assumptions on which the calculation of such amounts is based
\n
could generate different recoverable amounts. The analysis of each group of non-financial assets is unique and requires
\n
management to use estimates and assumptions considered prudent and reasonable in the specific circumstances.
\n
\n \n \n
\n \n
\n \n
\n \n
\n
Provision for expected credit losses of trade receivables and contract assets
\n
The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
\n
based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography,
\n
and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group\u2019s
\n
historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with
\n
forward-looking information. For instance, if forecast economic conditions are expected to deteriorate over the next year
\n
which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted.
\n
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
\n
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
\n
The Group\u2019s historical credit loss experience and forecast of economic conditions may also not be representative of cus-
\n
tomer\u2019s actual default in the future. The information about the ECLs on the Group\u2019s trade receivables and contract assets
\n
is disclosed in \u2018Credit Risk\u2019 included in section \u20186.4 - Other information\u2019.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
vii.
\n
Non-current assets held for sale and discontinued operations
\n
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying
\n
value and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an
\n
asset (disposal group), excluding finance costs and income tax expense.
\n
Non-current assets (and disposal groups) are classified as held for sale when the Group expects that their carrying value
\n
will be recovered through sale rather than used in its operating activities. This condition is met only when the sale is
\n
highly probable, the asset (or group of assets) is held for immediate sale in its current condition, and Management has
\n
committed to the sale, which should occur within 12 months from the date of classification of this item.
\n
Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
\n
Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial
\n
position.
\n
Financial activities related to ceased or discontinued operations, net of tax effects, are recognized under one single item
\n
in the consolidated income statement, including the comparative data of the relevant period.
\n
\n \n
\n \n
\n \n
\n
vii.
\n
Non-current assets held for sale and discontinued operations
\n
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying
\n
value and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an
\n
asset (disposal group), excluding finance costs and income tax expense.
\n
Non-current assets (and disposal groups) are classified as held for sale when the Group expects that their carrying value
\n
will be recovered through sale rather than used in its operating activities. This condition is met only when the sale is
\n
highly probable, the asset (or group of assets) is held for immediate sale in its current condition, and Management has
\n
committed to the sale, which should occur within 12 months from the date of classification of this item.
\n
Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
\n
Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial
\n
position.
\n
Financial activities related to ceased or discontinued operations, net of tax effects, are recognized under one single item
\n
in the consolidated income statement, including the comparative data of the relevant period.
\n
\n \n
\n
vii.
\n
Non-current assets held for sale and discontinued operations
\n
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying
\n
value and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an
\n
asset (disposal group), excluding finance costs and income tax expense.
\n
Non-current assets (and disposal groups) are classified as held for sale when the Group expects that their carrying value
\n
will be recovered through sale rather than used in its operating activities. This condition is met only when the sale is
\n
highly probable, the asset (or group of assets) is held for immediate sale in its current condition, and Management has
\n
committed to the sale, which should occur within 12 months from the date of classification of this item.
\n
Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
\n
Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial
\n
position.
\n
Financial activities related to ceased or discontinued operations, net of tax effects, are recognized under one single item
\n
in the consolidated income statement, including the comparative data of the relevant period.
\n
\n \n
\n \n
\n \n
\n
Financial assets
\n
Initial recognition and measurement
\n
\n \n
Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other
\n
comprehensive income (OCI), and fair value through profit or loss.
\n
In line with IFRS 9, financial assets, which are represented by debt instruments (trade receivables, financial receivables,
\n
etc.), are classified on the basis of the business model (the way the Group manages financial assets in order to generate
\n
cash flows) and the contractual characteristics of the cash flows (the so-called SPPI test, \u201csolely payment of principal and
\n
interest\u201d), in one of the following categories:
\n
\u2022
\n
amortized cost, for the financial assets held with the aim of receiving the contractual cash flows which pass the SPPI
\n
test, since the cash flows represent solely payment of principal and interest; this category includes trade receivables,
\n
other operational receivables included in other current and non-current assets, and financial receivables included in
\n
other current and non-current financial assets;
\n
\n \n
\u2022
\n
fair value through shareholders\u2019 equity (FVOCI), for financial assets held with the aim of collecting cash flows, both
\n
contractual, which represent solely payments of principal and interest, and from sales. The changes in fair value sub-
\n
sequent to initial recognition are offset under OCI and are recycled to the income statement upon de-recognition;
\n
\u2022
\n \n
\n
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
\n
net changes in fair value recognised in the Income statement. This category mainly includes derivative instruments.
\n
\n \n
The classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow charac-
\n
teristics and the Group\u2019s business model for managing them.
\n \n
\n
With the exception of trade receivables that do not contain a significant financing component or for which the Group has
\n
applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial
\n
asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing
\n
component or for which the Group has applied the practical expedient are measured at the transaction price as disclosed
\n
in section (e) Revenue from contracts with customers.
\n
\n \n
The Group envisages, as per the provisions of the new IFRS 9, the treatment of non-strategic investments and investment
\n
funds shares at FVTPL; while other investments, which are considered strategic, are treated individually and, at the mo-
\n
ment, are all valued at FVTOCI.
\n \n
\n
Contingent consideration classified as an asset (or liability) that is a financial instrument and within the scope of IFRS 9
\n
Financial Instruments
\n
, is measured at fair value with the changes in fair value recognized in the income statement in
\n
accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is measured at fair value at
\n
each reporting date with changes in fair value recognized in income statement.
\n
\n \n \n
\n
Subsequent measurement
\n
\n \n
For purposes of subsequent measurement, financial assets are classified in four categories:
\n
\u2022
\n
Financial assets at amortized cost (debt instruments)
\n
\u2022
\n
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
\n
\u2022
\n
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon de-recog-
\n
nition (equity instruments)
\n
\u2022
\n
Financial assets at fair value through profit or loss
\n \n
\n
-
\n
Financial assets at amortized cost (debt instruments)
\n
Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are sub-
\n
ject to impairment. Gains and losses are recognized in income statement when the asset is derecognized, modified
\n
or impaired. The Group\u2019s financial assets at amortized cost includes trade receivables, loan to an associate and loan
\n
to a director included under other non-current financial assets. Trade receivables are originated in the ordinary course
\n
of business and held within a business model with the objective to hold the receivables in order to collect contractual
\n
cash flows that meet the \u2018solely payments of principal and interest\u2019 criterion under IFRS 9, therefore they are meas-
\n
ured at amortized cost using the effective interest rate method. The Group applies the amortized cost only for trade
\n
receivables with maturities greater than one year are discounted to present value.
\n
\n \n
\n \n
\n \n
\n
-
\n
Financial assets at fair value through OCI (debt instruments)
\n
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses
\n
or reversals are recognized in the income statement and computed in the same manner as for financial assets meas-
\n
ured at amortized cost. The remaining fair value changes are recognized in OCI. Upon de-recognition, the cumulative
\n
fair value change recognized in OCI is recycled to income statement. The Group\u2019s debt instruments at fair value
\n
through OCI includes investments in quoted debt instruments included under other non-current financial assets.
\n
\n
-
\n
Financial assets designated at fair value through OCI (equity instruments)
\n
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments des-
\n
ignated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presen-
\n
tation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and
\n
losses on these financial assets are never recycled to income statement. Dividends are recognized as other income in
\n
the income statement when the right of payment has been established, except when the Group benefits from such
\n
proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
\n
instruments designated at fair value through OCI are not subject to impairment assessment. The Group elected to
\n
classify irrevocably its non-listed equity investments under this category.
\n
\n
-
\n \n
\n
Financial assets at fair value through profit or loss
\n
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
\n
net changes in fair value recognized in the income statement. This category includes derivative instruments and listed
\n
equity investments which the Group had not irrevocably elected to classify at fair value through OCI. Dividends on
\n
listed equity investments are recognized as other income in the income statement when the right of payment has
\n
been established.
\n
\n \n \n
\n
De-recognition
\n
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
\n
derecognized (i.e., removed from the Group\u2019s consolidated statement of financial position) when:
\n
\u2022
\n
The rights to receive cash flows from the asset have expired
\n
Or
\n
\u2022
\n
The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
\n
received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement\u037e and either (a)
\n
the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred
\n
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
\n
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrange-
\n
ment, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither trans-
\n
ferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group
\n
continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Group also
\n
recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects
\n
the rights and obligations that the Group has retained.
\n
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
\n
original carrying amount of the asset and the maximum amount of consideration that the Group could be required to
\n
repay.
\n
\n \n \n
\n \n
\n \n
\n
Impairment
\n
Further disclosures relating to impairment of financial assets are also provided in the following notes:
\n
\u2022
\n
Disclosures for significant assumptions \u2013 refer to sub-paragraph \u2018xxi. - Significant accounting judgements, estimates
\n
and assumptions\u2019
\n
\u2022
\n
Trade receivables, including contract assets as described below
\n
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
\n
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract
\n
and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest
\n
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that
\n
are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default
\n
events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has
\n
been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected
\n
over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
\n
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the
\n
Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each re-
\n
porting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted
\n
for forward-looking factors specific to the debtors and the economic environment.
\n
\n \n
\n \n
\n \n
\n
Derivatives
\n
If derivative instruments are held for trading, they are measured at fair value while offset in the income statement; if the
\n
same are classified as effective hedging instruments against changes in the fair value of assets, liabilities, obligations
\n
assumed by the Group or related future cash flows, the Group applies hedge accounting.
\n
The Group, consistent with its internal policies, does not use financial instruments of a speculative nature (i.e. for trading).
\n
The Group uses financial derivative instruments mainly to hedge its exposure to exchange rate risk, interest rate risk and
\n
commodity price fluctuation risk.
\n
\n \n
\n \n
\n \n
\n \n
\n
With reference to the classification of hedging transactions, the provisions of IFRS 9 require that:
\n
\u2022
\n
there is an economic relationship between the hedged item and the hedging instrument, such as to offset the related
\n
changes in value;
\n
\u2022
\n
this ability to offset is not undermined by the counterparty\u2019s credit risk level;
\n
a ratio between the hedged object and the hedging instrument (the so-called hedge ratio) is defined, in line with the
\n
derivatives risk management objectives, as part of the established derivatives risk management strategy, rebalancing
\n
where necessary. Changes in the derivatives risk management objectives, the termination of the above conditions to
\n
classify hedging transactions or rebalancing lead to the future, total or partial, discontinuation of the hedge.
\n
Financial instruments are recognized according to hedge accounting rules when:
\n
\u2022
\n
at the beginning of the hedging, the formal designation and documentation of the hedging exist;
\n
\u2022
\n
the hedging is assumed to be effective;
\n
\u2022
\n
the efficacy can be accurately measured and the hedging itself is highly effective during the relevant periods.
\n
The Group applies the cash flow hedge (IFRS 9), if the hedging relationship of changes in the cash flows originating from
\n
an asset or liability or a future transaction (hedged underlying element), that is deemed as likely to occur and that could
\n
have an impact on other comprehensive income and equity (cash flow hedge reserve), is formally documented.
\n
Changes in the value of the derivatives designated as fair value hedge and that are qualified as such, are recognized in
\n
the income statement, consistent with the changes in the fair value of the hedged assets and liabilities. If the derivative,
\n
even if created with non-speculative intent, does not meet all the formal requirements necessary to be designated in
\n
hedge accounting, the changes in fair value are recognized in the income statement, under the same line of the changes
\n
in hedged item.
\n
\n \n
\n \n
\n
xi.
\n
Cash and cash equivalents
\n
Cash and cash equivalents are recognized at their nominal value and include numeric values, i.e. those values that meet
\n
the requirement of on demand or very short-term availability, positive outcome and no costs of disposal with a maturity
\n
of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of
\n
changes in value. This item also includes the collection and payment instruments that have been subject to an account
\n
recording at the servicing financial institution as at the closing date of the period notwithstanding any subsequent differ-
\n
ent accounting records.
\n
\n \n
\n
Provision for expected credit losses of trade receivables and contract assets
\n
The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
\n
based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography,
\n
and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group\u2019s
\n
historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with
\n
forward-looking information. For instance, if forecast economic conditions are expected to deteriorate over the next year
\n
which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted.
\n
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
\n
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
\n
The Group\u2019s historical credit loss experience and forecast of economic conditions may also not be representative of cus-
\n
tomer\u2019s actual default in the future. The information about the ECLs on the Group\u2019s trade receivables and contract assets
\n
is disclosed in \u2018Credit Risk\u2019 included in section \u20186.4 - Other information\u2019.
\n
\n \n
\n \n
\n
Financial assets
\n
Initial recognition and measurement
\n
\n \n
Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other
\n
comprehensive income (OCI), and fair value through profit or loss.
\n
In line with IFRS 9, financial assets, which are represented by debt instruments (trade receivables, financial receivables,
\n
etc.), are classified on the basis of the business model (the way the Group manages financial assets in order to generate
\n
cash flows) and the contractual characteristics of the cash flows (the so-called SPPI test, \u201csolely payment of principal and
\n
interest\u201d), in one of the following categories:
\n
\u2022
\n
amortized cost, for the financial assets held with the aim of receiving the contractual cash flows which pass the SPPI
\n
test, since the cash flows represent solely payment of principal and interest; this category includes trade receivables,
\n
other operational receivables included in other current and non-current assets, and financial receivables included in
\n
other current and non-current financial assets;
\n
\n
With the exception of trade receivables that do not contain a significant financing component or for which the Group has
\n
applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial
\n
asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing
\n
component or for which the Group has applied the practical expedient are measured at the transaction price as disclosed
\n
in section (e) Revenue from contracts with customers.
\n
\n
-
\n
Financial assets at amortized cost (debt instruments)
\n
Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are sub-
\n
ject to impairment. Gains and losses are recognized in income statement when the asset is derecognized, modified
\n
or impaired. The Group\u2019s financial assets at amortized cost includes trade receivables, loan to an associate and loan
\n
to a director included under other non-current financial assets. Trade receivables are originated in the ordinary course
\n
of business and held within a business model with the objective to hold the receivables in order to collect contractual
\n
cash flows that meet the \u2018solely payments of principal and interest\u2019 criterion under IFRS 9, therefore they are meas-
\n
ured at amortized cost using the effective interest rate method. The Group applies the amortized cost only for trade
\n
receivables with maturities greater than one year are discounted to present value.
\n
\n
Impairment
\n
Further disclosures relating to impairment of financial assets are also provided in the following notes:
\n
\u2022
\n
Disclosures for significant assumptions \u2013 refer to sub-paragraph \u2018xxi. - Significant accounting judgements, estimates
\n
and assumptions\u2019
\n
\u2022
\n
Trade receivables, including contract assets as described below
\n
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
\n
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract
\n
and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest
\n
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that
\n
are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not
\n
\n
been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default
\n
events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has
\n
been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected
\n
over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
\n
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the
\n
Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each re-
\n
porting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted
\n
for forward-looking factors specific to the debtors and the economic environment.
\n
\n
Provision for expected credit losses of trade receivables and contract assets
\n
The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
\n
based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography,
\n
and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group\u2019s
\n
historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with
\n
forward-looking information. For instance, if forecast economic conditions are expected to deteriorate over the next year
\n
which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted.
\n
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
\n
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
\n
The Group\u2019s historical credit loss experience and forecast of economic conditions may also not be representative of cus-
\n
tomer\u2019s actual default in the future. The information about the ECLs on the Group\u2019s trade receivables and contract assets
\n
is disclosed in \u2018Credit Risk\u2019 included in section \u20186.4 - Other information\u2019.
\n
\n
For trade receivables, the Group uses the \u201c12-month ECL\u201d methodology to determine the lifetime of the expected losses
\n
associated with the probability of default over the next 12 months, using a forward-looking approach. The calculation of
\n
the expected credit loss, which is made on the residual life of the receivables at the date of their recognition in the
\n
financial statements and the subsequent reporting dates, considers a 12-month time horizon, since at the closing date of
\n
the period there was no significant increase in credit risk.
\n
In particular, the Group applies an approach defined as a \u201cprovision matrix\u201d, based on the division of trade receivables
\n
into clusters on the basis of type (ordinary/legal), ageing (past-due ranges) and country rating. For the purposes of deter-
\n
mining expected losses, the Group applies a definition of the default threshold for ordinary receivables of 120 days past
\n
due and 100% for receivables which have moved to legal default, since this is considered an effective indication of the
\n
threshold beyond which the receivable is considered unrecoverable. The calculation of the probability of default is there-
\n
fore based on the effective number of days the payment is overdue. In the same perimeter, for a percentage of 31% in
\n
terms of newly recalculated bad debt fund, the Group is applying a new impairment criteria based on the probability of
\n
default (PD) obtained from external sources and historical loss rates.
\n
As regards the write-off criteria, these are clearly based on the specific statutory and tax rules in force in the various
\n
countries where the Group companies are present.
\n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n
Financial assets
\n
Initial recognition and measurement
\n
\n
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
\n
net changes in fair value recognised in the Income statement. This category mainly includes derivative instruments.
\n
\n
Contingent consideration classified as an asset (or liability) that is a financial instrument and within the scope of IFRS 9
\n
Financial Instruments
\n
, is measured at fair value with the changes in fair value recognized in the income statement in
\n
accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is measured at fair value at
\n
each reporting date with changes in fair value recognized in income statement.
\n
\n
Subsequent measurement
\n
\n
Financial assets at fair value through profit or loss
\n
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
\n
net changes in fair value recognized in the income statement. This category includes derivative instruments and listed
\n
equity investments which the Group had not irrevocably elected to classify at fair value through OCI. Dividends on
\n
listed equity investments are recognized as other income in the income statement when the right of payment has
\n
been established.
\n
\n
Financial liabilities
\n
Initial recognition and measurement
\n
\n
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
\n
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All fi-
\n
nancial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly
\n
attributable transaction costs. The Group\u2019s financial liabilities include trade and other payables, loans and borrowings
\n
including bank overdrafts and derivative financial instruments.
\n
\n
Subsequent measurement
\n
\n
Financial liabilities at fair value through profit or loss
\n
Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as
\n
at fair value through profit or loss. Financial liabilities as at fair value through profit or loss also include derivative
\n
financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships
\n
as defined by IFRS 9. Financial liabilities designated upon initial recognition at fair value through profit or loss are
\n
designated at the initial date of recognition and only if the criteria in IFRS 9 are satisfied.
\n
\n
Derivatives
\n
If derivative instruments are held for trading, they are measured at fair value while offset in the income statement; if the
\n
same are classified as effective hedging instruments against changes in the fair value of assets, liabilities, obligations
\n
assumed by the Group or related future cash flows, the Group applies hedge accounting.
\n
The Group, consistent with its internal policies, does not use financial instruments of a speculative nature (i.e. for trading).
\n
The Group uses financial derivative instruments mainly to hedge its exposure to exchange rate risk, interest rate risk and
\n
commodity price fluctuation risk.
\n
\n
With reference to the classification of hedging transactions, the provisions of IFRS 9 require that:
\n
\u2022
\n
there is an economic relationship between the hedged item and the hedging instrument, such as to offset the related
\n
changes in value;
\n
\u2022
\n
this ability to offset is not undermined by the counterparty\u2019s credit risk level;
\n
a ratio between the hedged object and the hedging instrument (the so-called hedge ratio) is defined, in line with the
\n
derivatives risk management objectives, as part of the established derivatives risk management strategy, rebalancing
\n
where necessary. Changes in the derivatives risk management objectives, the termination of the above conditions to
\n
classify hedging transactions or rebalancing lead to the future, total or partial, discontinuation of the hedge.
\n
Financial instruments are recognized according to hedge accounting rules when:
\n
\u2022
\n
at the beginning of the hedging, the formal designation and documentation of the hedging exist;
\n
\u2022
\n
the hedging is assumed to be effective;
\n
\u2022
\n
the efficacy can be accurately measured and the hedging itself is highly effective during the relevant periods.
\n
The Group applies the cash flow hedge (IFRS 9), if the hedging relationship of changes in the cash flows originating from
\n
an asset or liability or a future transaction (hedged underlying element), that is deemed as likely to occur and that could
\n
have an impact on other comprehensive income and equity (cash flow hedge reserve), is formally documented.
\n
Changes in the value of the derivatives designated as fair value hedge and that are qualified as such, are recognized in
\n
the income statement, consistent with the changes in the fair value of the hedged assets and liabilities. If the derivative,
\n
even if created with non-speculative intent, does not meet all the formal requirements necessary to be designated in
\n
hedge accounting, the changes in fair value are recognized in the income statement, under the same line of the changes
\n
in hedged item.
\n
\n
De-recognition
\n
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
\n
derecognized (i.e., removed from the Group\u2019s consolidated statement of financial position) when:
\n
\u2022
\n
The rights to receive cash flows from the asset have expired
\n
Or
\n
\u2022
\n
The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
\n
received cash flows in full without material delay to a third party under a \u2018pass-through\u2019 arrangement\u037e and either (a)
\n
the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred
\n
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
\n
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrange-
\n
ment, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither trans-
\n
ferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group
\n
continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Group also
\n
recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects
\n
the rights and obligations that the Group has retained.
\n
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
\n
original carrying amount of the asset and the maximum amount of consideration that the Group could be required to
\n
repay.
\n
\n
De-recognition
\n
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an
\n
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
\n
existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the orig-
\n
inal liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the
\n
income statement.
\n
\n \n
\n \n
\n
Impairment
\n
Further disclosures relating to impairment of financial assets are also provided in the following notes:
\n
\u2022
\n
Disclosures for significant assumptions \u2013 refer to sub-paragraph \u2018xxi. - Significant accounting judgements, estimates
\n
and assumptions\u2019
\n
\u2022
\n
Trade receivables, including contract assets as described below
\n
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
\n
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract
\n
and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest
\n
rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that
\n
are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default
\n
events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has
\n
been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected
\n
over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
\n
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the
\n
Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each re-
\n
porting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted
\n
for forward-looking factors specific to the debtors and the economic environment.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Provision for expected credit losses of trade receivables and contract assets
\n
The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
\n
based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography,
\n
and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group\u2019s
\n
historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with
\n
forward-looking information. For instance, if forecast economic conditions are expected to deteriorate over the next year
\n
which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted.
\n
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
\n
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
\n
The Group\u2019s historical credit loss experience and forecast of economic conditions may also not be representative of cus-
\n
tomer\u2019s actual default in the future. The information about the ECLs on the Group\u2019s trade receivables and contract assets
\n
is disclosed in \u2018Credit Risk\u2019 included in section \u20186.4 - Other information\u2019.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
Credit risk is the Group\u2019s exposure to potential losses from failure by commercial counterparties to fulfil obligations they
\n
have entered into. Failure to collect or late collection of trade receivables could impact negatively on the Group\u2019s eco-
\n
nomic results and financial equilibrium.
\n
The Group\u2019s policy for managing credit risk from commercial activities envisages the preliminary assessment of counter-
\n
parties\u2019 creditworthiness, the management of credit limits and the adoption of risk mitigation instruments, such as the
\n
acquisition of bank guarantees, letters of credit and the external transfer of part of the insolvency risk through a global
\n
program of credit insurance.
\n
The portion of insured receivables, at 31 December 2022, was 64.2% of the total exposure.
\n
In order to mitigate credit risk, the Group has also adopted a policy which defines the strategic guidelines and operating
\n
rules for an effective system to control each company\u2019s credit.
\n
In addition, the policy defines the means for estimating expected losses, in accordance with the means set out hereafter
\n
and taking account of the mitigating factor represented by the aforementioned instruments for insured credit.
\n \n
\n \n
\n \n
\n \n
\n
For trade receivables, the Group uses the \u201c12-month ECL\u201d methodology to determine the lifetime of the expected losses
\n
associated with the probability of default over the next 12 months, using a forward-looking approach. The calculation of
\n
the expected credit loss, which is made on the residual life of the receivables at the date of their recognition in the
\n
financial statements and the subsequent reporting dates, considers a 12-month time horizon, since at the closing date of
\n
the period there was no significant increase in credit risk.
\n
In particular, the Group applies an approach defined as a \u201cprovision matrix\u201d, based on the division of trade receivables
\n
into clusters on the basis of type (ordinary/legal), ageing (past-due ranges) and country rating. For the purposes of deter-
\n
mining expected losses, the Group applies a definition of the default threshold for ordinary receivables of 120 days past
\n
due and 100% for receivables which have moved to legal default, since this is considered an effective indication of the
\n
threshold beyond which the receivable is considered unrecoverable. The calculation of the probability of default is there-
\n
fore based on the effective number of days the payment is overdue. In the same perimeter, for a percentage of 31% in
\n
terms of newly recalculated bad debt fund, the Group is applying a new impairment criteria based on the probability of
\n
default (PD) obtained from external sources and historical loss rates.
\n
As regards the write-off criteria, these are clearly based on the specific statutory and tax rules in force in the various
\n
countries where the Group companies are present.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Financial liabilities
\n
Initial recognition and measurement
\n
\n \n \n
\n
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
\n
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All fi-
\n
nancial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly
\n
attributable transaction costs. The Group\u2019s financial liabilities include trade and other payables, loans and borrowings
\n
including bank overdrafts and derivative financial instruments.
\n
\n \n \n
\n
Subsequent measurement
\n
\n \n
For purposes of subsequent measurement, financial liabilities are classified in two categories:
\n
\u2022
\n
Financial liabilities at fair value through profit or loss
\n
\u2022
\n
Financial liabilities at amortized cost (loans and borrowings)
\n
-
\n \n
\n
Financial liabilities at fair value through profit or loss
\n
Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as
\n
at fair value through profit or loss. Financial liabilities as at fair value through profit or loss also include derivative
\n
financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships
\n
as defined by IFRS 9. Financial liabilities designated upon initial recognition at fair value through profit or loss are
\n
designated at the initial date of recognition and only if the criteria in IFRS 9 are satisfied.
\n
\n \n \n
\n
-
\n
Financial liabilities at amortized cost (loans and borrowings)
\n
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\n
subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in income statement
\n
when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by
\n
taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The
\n
EIR amortization is included as finance costs in the income statement. This category generally applies to interest-
\n
bearing loans and borrowings.
\n
\n \n \n
\n
De-recognition
\n
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an
\n
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
\n
existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the orig-
\n
inal liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the
\n
income statement.
\n
\n \n
\n \n
\n
Derivatives
\n
If derivative instruments are held for trading, they are measured at fair value while offset in the income statement; if the
\n
same are classified as effective hedging instruments against changes in the fair value of assets, liabilities, obligations
\n
assumed by the Group or related future cash flows, the Group applies hedge accounting.
\n
The Group, consistent with its internal policies, does not use financial instruments of a speculative nature (i.e. for trading).
\n
The Group uses financial derivative instruments mainly to hedge its exposure to exchange rate risk, interest rate risk and
\n
commodity price fluctuation risk.
\n
\n \n
\n \n
\n
With reference to the classification of hedging transactions, the provisions of IFRS 9 require that:
\n
\u2022
\n
there is an economic relationship between the hedged item and the hedging instrument, such as to offset the related
\n
changes in value;
\n
\u2022
\n
this ability to offset is not undermined by the counterparty\u2019s credit risk level;
\n
a ratio between the hedged object and the hedging instrument (the so-called hedge ratio) is defined, in line with the
\n
derivatives risk management objectives, as part of the established derivatives risk management strategy, rebalancing
\n
where necessary. Changes in the derivatives risk management objectives, the termination of the above conditions to
\n
classify hedging transactions or rebalancing lead to the future, total or partial, discontinuation of the hedge.
\n
Financial instruments are recognized according to hedge accounting rules when:
\n
\u2022
\n
at the beginning of the hedging, the formal designation and documentation of the hedging exist;
\n
\u2022
\n
the hedging is assumed to be effective;
\n
\u2022
\n
the efficacy can be accurately measured and the hedging itself is highly effective during the relevant periods.
\n
The Group applies the cash flow hedge (IFRS 9), if the hedging relationship of changes in the cash flows originating from
\n
an asset or liability or a future transaction (hedged underlying element), that is deemed as likely to occur and that could
\n
have an impact on other comprehensive income and equity (cash flow hedge reserve), is formally documented.
\n
Changes in the value of the derivatives designated as fair value hedge and that are qualified as such, are recognized in
\n
the income statement, consistent with the changes in the fair value of the hedged assets and liabilities. If the derivative,
\n
even if created with non-speculative intent, does not meet all the formal requirements necessary to be designated in
\n
hedge accounting, the changes in fair value are recognized in the income statement, under the same line of the changes
\n
in hedged item.
\n
\n \n
\n
-
\n
Financial liabilities at amortized cost (loans and borrowings)
\n
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\n
subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in income statement
\n
when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by
\n
taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The
\n
EIR amortization is included as finance costs in the income statement. This category generally applies to interest-
\n
bearing loans and borrowings.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Derivatives
\n
If derivative instruments are held for trading, they are measured at fair value while offset in the income statement; if the
\n
same are classified as effective hedging instruments against changes in the fair value of assets, liabilities, obligations
\n
assumed by the Group or related future cash flows, the Group applies hedge accounting.
\n
The Group, consistent with its internal policies, does not use financial instruments of a speculative nature (i.e. for trading).
\n
The Group uses financial derivative instruments mainly to hedge its exposure to exchange rate risk, interest rate risk and
\n
commodity price fluctuation risk.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
With reference to the classification of hedging transactions, the provisions of IFRS 9 require that:
\n
\u2022
\n
there is an economic relationship between the hedged item and the hedging instrument, such as to offset the related
\n
changes in value;
\n
\u2022
\n
this ability to offset is not undermined by the counterparty\u2019s credit risk level;
\n
a ratio between the hedged object and the hedging instrument (the so-called hedge ratio) is defined, in line with the
\n
derivatives risk management objectives, as part of the established derivatives risk management strategy, rebalancing
\n
where necessary. Changes in the derivatives risk management objectives, the termination of the above conditions to
\n
classify hedging transactions or rebalancing lead to the future, total or partial, discontinuation of the hedge.
\n
Financial instruments are recognized according to hedge accounting rules when:
\n
\u2022
\n
at the beginning of the hedging, the formal designation and documentation of the hedging exist;
\n
\u2022
\n
the hedging is assumed to be effective;
\n
\u2022
\n
the efficacy can be accurately measured and the hedging itself is highly effective during the relevant periods.
\n
The Group applies the cash flow hedge (IFRS 9), if the hedging relationship of changes in the cash flows originating from
\n
an asset or liability or a future transaction (hedged underlying element), that is deemed as likely to occur and that could
\n
have an impact on other comprehensive income and equity (cash flow hedge reserve), is formally documented.
\n
Changes in the value of the derivatives designated as fair value hedge and that are qualified as such, are recognized in
\n
the income statement, consistent with the changes in the fair value of the hedged assets and liabilities. If the derivative,
\n
even if created with non-speculative intent, does not meet all the formal requirements necessary to be designated in
\n
hedge accounting, the changes in fair value are recognized in the income statement, under the same line of the changes
\n
in hedged item.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Derivatives
\n
If derivative instruments are held for trading, they are measured at fair value while offset in the income statement; if the
\n
same are classified as effective hedging instruments against changes in the fair value of assets, liabilities, obligations
\n
assumed by the Group or related future cash flows, the Group applies hedge accounting.
\n
The Group, consistent with its internal policies, does not use financial instruments of a speculative nature (i.e. for trading).
\n
The Group uses financial derivative instruments mainly to hedge its exposure to exchange rate risk, interest rate risk and
\n
commodity price fluctuation risk.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
With reference to the classification of hedging transactions, the provisions of IFRS 9 require that:
\n
\u2022
\n
there is an economic relationship between the hedged item and the hedging instrument, such as to offset the related
\n
changes in value;
\n
\u2022
\n
this ability to offset is not undermined by the counterparty\u2019s credit risk level;
\n
a ratio between the hedged object and the hedging instrument (the so-called hedge ratio) is defined, in line with the
\n
derivatives risk management objectives, as part of the established derivatives risk management strategy, rebalancing
\n
where necessary. Changes in the derivatives risk management objectives, the termination of the above conditions to
\n
classify hedging transactions or rebalancing lead to the future, total or partial, discontinuation of the hedge.
\n
Financial instruments are recognized according to hedge accounting rules when:
\n
\u2022
\n
at the beginning of the hedging, the formal designation and documentation of the hedging exist;
\n
\u2022
\n
the hedging is assumed to be effective;
\n
\u2022
\n
the efficacy can be accurately measured and the hedging itself is highly effective during the relevant periods.
\n
The Group applies the cash flow hedge (IFRS 9), if the hedging relationship of changes in the cash flows originating from
\n
an asset or liability or a future transaction (hedged underlying element), that is deemed as likely to occur and that could
\n
have an impact on other comprehensive income and equity (cash flow hedge reserve), is formally documented.
\n
Changes in the value of the derivatives designated as fair value hedge and that are qualified as such, are recognized in
\n
the income statement, consistent with the changes in the fair value of the hedged assets and liabilities. If the derivative,
\n
even if created with non-speculative intent, does not meet all the formal requirements necessary to be designated in
\n
hedge accounting, the changes in fair value are recognized in the income statement, under the same line of the changes
\n
in hedged item.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Derivatives
\n
If derivative instruments are held for trading, they are measured at fair value while offset in the income statement; if the
\n
same are classified as effective hedging instruments against changes in the fair value of assets, liabilities, obligations
\n
assumed by the Group or related future cash flows, the Group applies hedge accounting.
\n
The Group, consistent with its internal policies, does not use financial instruments of a speculative nature (i.e. for trading).
\n
The Group uses financial derivative instruments mainly to hedge its exposure to exchange rate risk, interest rate risk and
\n
commodity price fluctuation risk.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
With reference to the classification of hedging transactions, the provisions of IFRS 9 require that:
\n
\u2022
\n
there is an economic relationship between the hedged item and the hedging instrument, such as to offset the related
\n
changes in value;
\n
\u2022
\n
this ability to offset is not undermined by the counterparty\u2019s credit risk level;
\n
a ratio between the hedged object and the hedging instrument (the so-called hedge ratio) is defined, in line with the
\n
derivatives risk management objectives, as part of the established derivatives risk management strategy, rebalancing
\n
where necessary. Changes in the derivatives risk management objectives, the termination of the above conditions to
\n
classify hedging transactions or rebalancing lead to the future, total or partial, discontinuation of the hedge.
\n
Financial instruments are recognized according to hedge accounting rules when:
\n
\u2022
\n
at the beginning of the hedging, the formal designation and documentation of the hedging exist;
\n
\u2022
\n
the hedging is assumed to be effective;
\n
\u2022
\n
the efficacy can be accurately measured and the hedging itself is highly effective during the relevant periods.
\n
The Group applies the cash flow hedge (IFRS 9), if the hedging relationship of changes in the cash flows originating from
\n
an asset or liability or a future transaction (hedged underlying element), that is deemed as likely to occur and that could
\n
have an impact on other comprehensive income and equity (cash flow hedge reserve), is formally documented.
\n
Changes in the value of the derivatives designated as fair value hedge and that are qualified as such, are recognized in
\n
the income statement, consistent with the changes in the fair value of the hedged assets and liabilities. If the derivative,
\n
even if created with non-speculative intent, does not meet all the formal requirements necessary to be designated in
\n
hedge accounting, the changes in fair value are recognized in the income statement, under the same line of the changes
\n
in hedged item.
\n
\n \n
\n \n
\n \n
\n \n
\n
x.
\n
Inventories
\n
Inventories are recognized at the lesser value between purchase and production cost, according to the weighted average
\n
cost method and their net realizable value.
\n
Cost includes direct materials and direct labour general production costs and other costs incurred to bring inventories to
\n
their current location and condition.
\n
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
\n
and the estimated costs necessary to make the sale.
\n
Lastly, some obsolete stock provisions are calculated for materials, finished goods and spare parts that are considered
\n
obsolete or slow moving, keeping into account their expected future use and realizable value.
\n
\n \n
\n \n
\n
xi.
\n
Cash and cash equivalents
\n
Cash and cash equivalents are recognized at their nominal value and include numeric values, i.e. those values that meet
\n
the requirement of on demand or very short-term availability, positive outcome and no costs of disposal with a maturity
\n
of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of
\n
changes in value. This item also includes the collection and payment instruments that have been subject to an account
\n
recording at the servicing financial institution as at the closing date of the period notwithstanding any subsequent differ-
\n
ent accounting records.
\n
\n \n
\n \n
\n
xii.
\n
Treasury shares
\n
Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain
\n
or loss is recognised in Income statement on the purchase, sale, issue or cancellation of the Group\u2019s own equity instru-
\n
ments. Any gain or loss resulting from subsequent sales is recognised in equity.
\n
\n
xiii.
\n
Provisions for risks and charges
\n
General
\n
The Group recognizes provisions for risks and charges when it has a present obligation, either legal or constructive, to-
\n
ward third parties arising from a past event, and it is likely that it will be necessary to use the resources of the Group to
\n
meet the obligation, and when it is possible to make an accurate estimate of the amount of the obligation itself.
\n
\n
When the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the
\n
reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense
\n
relating to a provision is presented in the income statement net of any reimbursement. If the effect of the time value of
\n
money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific
\n
to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a
\n
finance cost.
\n
Changes in estimates are reflected in the income statement of the period when the change has occurred.
\n
Disclosures about provisions follow IAS 37 (paragraph 92) which regulates and limits these indications when they might
\n
prejudice the company\u2019s position in any disputes.
\n \n
\n \n
\n \n
\n \n
\n
Uncertain tax position
\n
According to IFRIC23 \u2018Uncertainty over Income Tax Treatments\u2019 to clarify the accounting for uncertainties in income tax
\n
is applied.
\n
The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused
\n
tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12.
\n
In the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, an entity
\n
has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treat-
\n
ments, that it is used or plans to use in its income tax filling.
\n
If the entity concludes that it is probable that a particular tax treatment is accepted, the entity has to determine taxable
\n
profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment included
\n
in its income tax filings.
\n
If the entity concludes that it is not probable that a particular tax treatment is accepted, the entity has to use the most
\n
likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused
\n
tax losses, unused tax credits and tax rates. The decision should be based on which method provides better predictions
\n
of the resolution of the uncertainty.
\n
In case facts and circumstances changes, the entity shall reassess its judgements and estimates.
\n
\n \n
\n \n
\n \n
\n \n
Warranty provisions
\n
The Group provides warranties for general repairs of defects that existed at the time of sale, as required by law. Provisions
\n
related to these assurance-type warranties are recognized when the product is sold, or the service is provided to the
\n
customer. Initial recognition is based on historical experience. The estimate of warranty-related costs is revised annually.
\n
Restructuring provisions
\n
Restructuring provisions are recognized only when the Group has a constructive obligation, which is when: (i) there is a
\n
detailed formal plan that identifies the business or part of the business concerned, the location and number of employees
\n
affected, the detailed estimate of the associated costs, and the timeline; and (ii) the employees affected have been noti-
\n
fied of the plan\u2019s main features.
\n
\n \n
\n \n
\n \n
\n
Uncertain tax position
\n
According to IFRIC23 \u2018Uncertainty over Income Tax Treatments\u2019 to clarify the accounting for uncertainties in income tax
\n
is applied.
\n
The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused
\n
tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12.
\n
In the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, an entity
\n
has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treat-
\n
ments, that it is used or plans to use in its income tax filling.
\n
If the entity concludes that it is probable that a particular tax treatment is accepted, the entity has to determine taxable
\n
profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment included
\n
in its income tax filings.
\n
If the entity concludes that it is not probable that a particular tax treatment is accepted, the entity has to use the most
\n
likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused
\n
tax losses, unused tax credits and tax rates. The decision should be based on which method provides better predictions
\n
of the resolution of the uncertainty.
\n
In case facts and circumstances changes, the entity shall reassess its judgements and estimates.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
xxi.
\n
Significant accounting judgements, estimates and assumptions
\n
The preparation of the Group\u2019s consolidated financial statements requires management to make judgements, estimates
\n
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
\n
disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjust-
\n
ment to the carrying amount of assets or liabilities affected in future periods.
\n
Judgements
\n \n
\n
Determining the lease term of contracts with renewal and termination options
\n
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
\n
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
\n
the lease, if it is reasonably certain not to be exercised. The Group has several lease contracts that include extension and
\n
termination options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exer-
\n
cise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive
\n
for it to exercise either the renewal or termination. After the commencement date, the Group reassesses the lease term
\n
if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not
\n
to exercise the option to renew or to terminate. The Group included the renewal period as part of the lease term for
\n
leases of plant and machinery with shorter non-cancellable period. Furthermore, the periods covered by termination
\n
options are included as part of the lease term only when they are reasonably certain not to be exercised.
\n
\n \n
Estimates and assumptions
\n
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
\n
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
\n
financial year, are described below. The Group based its assumptions and estimates on parameters available when the
\n
consolidated financial statements were prepared. Existing circumstances and assumptions about future developments,
\n
however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such
\n
changes are reflected in the assumptions when they occur.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Impairment of non-financial assets
\n
When the carrying amount of property, plant and equipment, investment property, intangible assets, right-of-use assets,
\n
goodwill and investments in associates/joint ventures exceeds its recoverable amount, which is the higher of the fair
\n
value less costs of disposal and the value in use, the assets are impaired. Such impairments are carried out in accordance
\n
with the provisions of IAS 36, as described in greater detail in note 2.1. In order to determine the recoverable amount,
\n
the Group generally adopts the value in use criterion. Value in use is based on the estimated future cash flows generated
\n
by the asset, discounted to their present value using a pre-tax discount rate that reflects the current market assessment
\n
of the time value of money and of the specific risks of the asset. Future cash flows used to determine value in use are
\n
based on the most recent business plan, approved by the management, containing forecasts for volumes, revenue, op-
\n
erating costs. These projections cover the next three years. For subsequent years, the assumption is the perpetual in-
\n
come. Nevertheless, possible changes in the underlying assumptions on which the calculation of such amounts is based
\n
could generate different recoverable amounts. The analysis of each group of non-financial assets is unique and requires
\n
management to use estimates and assumptions considered prudent and reasonable in the specific circumstances.
\n
\n \n \n
\n \n
\n \n
\n \n
\n
Provision for expected credit losses of trade receivables and contract assets
\n
The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
\n
based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography,
\n
and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group\u2019s
\n
historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with
\n
forward-looking information. For instance, if forecast economic conditions are expected to deteriorate over the next year
\n
which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted.
\n
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
\n
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
\n
The Group\u2019s historical credit loss experience and forecast of economic conditions may also not be representative of cus-
\n
tomer\u2019s actual default in the future. The information about the ECLs on the Group\u2019s trade receivables and contract assets
\n
is disclosed in \u2018Credit Risk\u2019 included in section \u20186.4 - Other information\u2019.
\n
\n \n
\n \n
\n \n
\n \n
\n \n \n
\n \n
\n \n
\n \n
Income taxes include all taxes based upon the taxable profits of the Group. Taxes on income are recognized in income
\n
statement except to the extent they relate to items recognized directly in equity or in other comprehensive income, in
\n
which case the related tax effects are recognized directly in equity or in other comprehensive income. Deferred taxes are
\n
calculated on temporary differences between the tax base of an asset or liability and the carrying amounts in the Consol-
\n
idated Financial Statements, Deferred tax assets relating to the carry-forward of unused tax losses are recognized to the
\n
extent it is probable future profits will be available against which they can be utilized. Current and deferred income tax
\n
assets and liabilities are offset when the income taxes are levied by the same taxation authority and where there is a
\n
legally enforceable right of offset. Deferred tax assets and liabilities are measured at the enacted or substantively enacted
\n
tax rates of the relevant tax jurisdictions that are expected to apply to taxable income during the period or periods in
\n
which the temporary differences reverse. Other taxes not based on taxable profits, such as property taxes and taxes on
\n
capital, are included in operating expenses.
\n
\n \n
\n \n \n
\n
Defined benefit plans (pension benefits)
\n
The cost of the defined benefit pension plan and other post-employment medical benefits and the present value of the
\n
pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions
\n
that may differ from actual developments in the future. These include the determination of the discount rate, future
\n
salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its
\n
long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
\n
reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appro-
\n
priate discount rate, management considers the interest rates of corporate bonds in currencies consistent with the cur-
\n
rencies of the post-employment benefit obligation with at least an \u2018AA\u2019 rating or above, as set by an internationally
\n
acknowledged rating agency, and extrapolated as needed along the yield curve to correspond with the expected term of
\n
the defined benefit obligation. The underlying bonds are further reviewed for quality. Those having excessive credit
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
spreads are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not rep-
\n
resent high quality corporate bonds. The mortality rate is based on publicly available mortality tables for the specific
\n
countries. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary
\n
increases and pension increases are based on expected future inflation rates for the respective countries.
\n
\n \n \n
\n
Fair value measurement of financial instruments
\n
When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be
\n
measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the
\n
discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but
\n
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations
\n
of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the
\n
reported fair value of financial instruments. Contingent consideration, resulting from business combinations, is valued at
\n
fair value at the acquisition date as part of the business combination. When the contingent consideration meets the
\n
definition of a financial liability, it is subsequently remeasured to fair value at each reporting date. The determination of
\n
the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting
\n
each performance target and the discount factor.
\n
\n \n \n
\n
Development costs
\n
The Group capitalises costs for product development projects. Initial capitalisation of costs is based on management\u2019s
\n
judgement that technological and economic feasibility is confirmed, usually when a product development project has
\n
reached a defined milestone according to an established project management model. In determining the amounts to be
\n
capitalised, management makes assumptions regarding the expected future cash generation of the project, discount
\n
rates to be applied and the expected period of benefits.
\n
\n \n \n
\n \n
\n
Revenue recognition - Estimating variable consideration for returns and volume rebates
\n
The Group estimates variable considerations to be included in the transaction price for the sale of goods with rights of
\n
return and volume rebates.
\n
The Group has developed a statistical model for forecasting sales returns. The model uses the historical return data of
\n
each product to come up with expected return percentages. These percentages are applied to determine the expected
\n
value of the variable consideration. Any significant changes in experience as compared to historical return pattern will
\n
impact the expected return percentages estimated by the Group.
\n
The Group\u2019s expected volume rebates are analysed on a per customer basis for contracts that are subject to a single
\n
volume threshold. Determining whether a customer will be likely entitled to rebate will depend on the customer\u2019s histor-
\n
ical rebates entitlement and accumulated purchases to date.
\n
The Group applied the statistical model for estimating expected volume rebates for contracts. The model uses the his-
\n
torical purchasing patterns and rebates entitlement of customers to determine the expected rebate percentages and the
\n
expected value of the variable consideration. Any significant changes in experience as compared to historical purchasing
\n
patterns and rebate entitlements of customers will impact the expected rebate percentages estimated by the Group.
\n
\n \n
\n \n \n
\n
Leases - Estimating the incremental borrowing rate
\n
The Incremental Borrowing Rate (IBR) is defined as the interest rate the lessee would incur to borrow under a secured
\n
loan with terms similar to those of the lease, with a similar security and in a similar economic environment. Such interest
\n
rate is identified through the Bloomberg database by applying the following relevant criteria to enhance the comparabil-
\n
ity:
\n
\u2022
\n
The credit rating;
\n
\u2022
\n
The term of the loan;
\n
\u2022
\n
The currency of denomination;
\n
\u2022
\n
The geographies (depending on the cases, countries or regions);
\n
\u2022
\n
The industry of the borrowing entity.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
In order to obtain statistically significant samples of comparable transactions, a flexibility in the above criteria shall be
\n
preserved and specific adjustments can be made to account for particular comparability factors. When the base rate is
\n
negative, a zero floor to the base rate is applied.
\n
For more information on leases, please see note 2.2 and 3.5.
\n
\n \n \n
\n
Contingent liabilities
\n
The Group trigger provisions once pending or threatened disputes or legal proceedings are considered as a probable
\n
event, for which there could be an outflow of funds with the amount reasonably estimated. If an outflow of funds be-
\n
comes possible but the amount cannot be estimated, the matter is disclosed in the notes to the Consolidated Financial
\n
Statements. The Group could be subject of legal and tax proceedings from various jurisdictions and for complex issues
\n
therefore eventually monitoring the status of pending legal proceedings consulting with matters\u2019 experts on regular basis.
\n
Due to the uncertainty inherent to in matters, it is difficult to predict the outflow of funds that could result from such
\n
disputes with any certainty.
\n
\n \n
Climate change
\n
In preparing the Consolidated Financial Statements the Group has considered the impact of climate change as requested
\n
by ESMA in its ECEP published in October 2021. Ariston Group pursues the definition of paradigms related to energy
\n
efficiency and to minimizing the environmental footprints. The Group is constantly evolving in order to be a forerunner
\n
about the negative environmental impacts.
\n
In the Consolidated Financial Statements, the Group does not have a material climate change impacts given that the
\n
Group has embraced a day-by-day handling dedicated to technological progress.
\n
In applying the Accounting Standards, the Group has considered the impacts arising from climate change. In particular,
\n
the Group, in performing the impairment activities of non-financial assets, has considered the economic and financial
\n
impacts resulting from the actions carried out by the Group in order to be in compliance with climate changes regulations.
\n
In performing the analysis on Inventory, the Group has considered for materials and products in stock the technological
\n
obsolescence which can arise from climate changes.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
For trade receivables, the Group uses the \u201c12-month ECL\u201d methodology to determine the lifetime of the expected losses
\n
associated with the probability of default over the next 12 months, using a forward-looking approach. The calculation of
\n
the expected credit loss, which is made on the residual life of the receivables at the date of their recognition in the
\n
financial statements and the subsequent reporting dates, considers a 12-month time horizon, since at the closing date of
\n
the period there was no significant increase in credit risk.
\n
In particular, the Group applies an approach defined as a \u201cprovision matrix\u201d, based on the division of trade receivables
\n
into clusters on the basis of type (ordinary/legal), ageing (past-due ranges) and country rating. For the purposes of deter-
\n
mining expected losses, the Group applies a definition of the default threshold for ordinary receivables of 120 days past
\n
due and 100% for receivables which have moved to legal default, since this is considered an effective indication of the
\n
threshold beyond which the receivable is considered unrecoverable. The calculation of the probability of default is there-
\n
fore based on the effective number of days the payment is overdue. In the same perimeter, for a percentage of 31% in
\n
terms of newly recalculated bad debt fund, the Group is applying a new impairment criteria based on the probability of
\n
default (PD) obtained from external sources and historical loss rates.
\n
As regards the write-off criteria, these are clearly based on the specific statutory and tax rules in force in the various
\n
countries where the Group companies are present.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Depreciation grid
\n
Trade receivables aging
\n
Country risk A
\n
Country risk B
\n
Country risk C
\n
Country risk D
\n
Overdue > 360 days
\n
70%
\n
80%
\n
90%
\n
100%
\n
Overdue 271- 360
\n
50%
\n
60%
\n
70%
\n
90%
\n
Overdue 181- 270
\n
35%
\n
40%
\n
50%
\n
70%
\n
Overdue 121-180
\n
20%
\n
25%
\n
35%
\n
50%
\n
Overdue 91-120
\n
12.5%
\n
15%
\n
20%
\n
30%
\n
Overdue 61-90
\n
7.5%
\n
10%
\n
12.5%
\n
20%
\n
Overdue 31-60
\n
2.5%
\n
5%
\n
7.5%
\n
10%
\n
Overdue 0-30
\n
1.25%
\n
1.5%
\n
2.5%
\n
5%
\n
Current (not overdue)
\n
0.5%
\n
0.75%
\n
1%
\n
1.5%
\n
Following is the summary of the specific and simplified ECLs assessments used to determine the bad debt provision:
\n
Analysis of bad debt provision
\n
31.12.2022
\n
31.12.2021
\n
Total receivables
\n
Gross
\n
325.4
\n
267.3
\n
Provision
\n
17.0
\n
19.0
\n
Net
\n
308.4
\n
248.3
\n
Receivables impaired on a specific basis
\n
Gross
\n
5.2
\n
6.7
\n
Provision
\n
4.7
\n
6.0
\n
Net
\n
0.5
\n
0.7
\n
Receivables impaired on a simplified ECLs
\n
Gross
\n
320.2
\n
260.6
\n
Provision
\n
12.3
\n
13.0
\n
Net
\n
307.9
\n
247.6
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Uncertain tax position
\n
According to IFRIC23 \u2018Uncertainty over Income Tax Treatments\u2019 to clarify the accounting for uncertainties in income tax
\n
is applied.
\n
The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused
\n
tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12.
\n
In the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, an entity
\n
has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treat-
\n
ments, that it is used or plans to use in its income tax filling.
\n
If the entity concludes that it is probable that a particular tax treatment is accepted, the entity has to determine taxable
\n
profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment included
\n
in its income tax filings.
\n
If the entity concludes that it is not probable that a particular tax treatment is accepted, the entity has to use the most
\n
likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused
\n
tax losses, unused tax credits and tax rates. The decision should be based on which method provides better predictions
\n
of the resolution of the uncertainty.
\n
In case facts and circumstances changes, the entity shall reassess its judgements and estimates.
\n
\n \n
\n \n
\n \n
\n
xxi.
\n
Significant accounting judgements, estimates and assumptions
\n
The preparation of the Group\u2019s consolidated financial statements requires management to make judgements, estimates
\n
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
\n
disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjust-
\n
ment to the carrying amount of assets or liabilities affected in future periods.
\n
Judgements
\n \n
\n
Determining the lease term of contracts with renewal and termination options
\n
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
\n
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
\n
the lease, if it is reasonably certain not to be exercised. The Group has several lease contracts that include extension and
\n
termination options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exer-
\n
cise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive
\n
for it to exercise either the renewal or termination. After the commencement date, the Group reassesses the lease term
\n
if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not
\n
to exercise the option to renew or to terminate. The Group included the renewal period as part of the lease term for
\n
leases of plant and machinery with shorter non-cancellable period. Furthermore, the periods covered by termination
\n
options are included as part of the lease term only when they are reasonably certain not to be exercised.
\n
\n \n
Estimates and assumptions
\n
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
\n
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
\n
financial year, are described below. The Group based its assumptions and estimates on parameters available when the
\n
consolidated financial statements were prepared. Existing circumstances and assumptions about future developments,
\n
however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such
\n
changes are reflected in the assumptions when they occur.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Impairment of non-financial assets
\n
When the carrying amount of property, plant and equipment, investment property, intangible assets, right-of-use assets,
\n
goodwill and investments in associates/joint ventures exceeds its recoverable amount, which is the higher of the fair
\n
value less costs of disposal and the value in use, the assets are impaired. Such impairments are carried out in accordance
\n
with the provisions of IAS 36, as described in greater detail in note 2.1. In order to determine the recoverable amount,
\n
the Group generally adopts the value in use criterion. Value in use is based on the estimated future cash flows generated
\n
by the asset, discounted to their present value using a pre-tax discount rate that reflects the current market assessment
\n
of the time value of money and of the specific risks of the asset. Future cash flows used to determine value in use are
\n
based on the most recent business plan, approved by the management, containing forecasts for volumes, revenue, op-
\n
erating costs. These projections cover the next three years. For subsequent years, the assumption is the perpetual in-
\n
come. Nevertheless, possible changes in the underlying assumptions on which the calculation of such amounts is based
\n
could generate different recoverable amounts. The analysis of each group of non-financial assets is unique and requires
\n
management to use estimates and assumptions considered prudent and reasonable in the specific circumstances.
\n
\n \n \n
\n \n
\n \n
\n \n
\n
Provision for expected credit losses of trade receivables and contract assets
\n
The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
\n
based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography,
\n
and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group\u2019s
\n
historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with
\n
forward-looking information. For instance, if forecast economic conditions are expected to deteriorate over the next year
\n
which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted.
\n
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
\n
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
\n
The Group\u2019s historical credit loss experience and forecast of economic conditions may also not be representative of cus-
\n
tomer\u2019s actual default in the future. The information about the ECLs on the Group\u2019s trade receivables and contract assets
\n
is disclosed in \u2018Credit Risk\u2019 included in section \u20186.4 - Other information\u2019.
\n
\n \n
\n \n
\n \n
\n \n
\n \n \n
\n \n
\n \n
\n \n
Income taxes include all taxes based upon the taxable profits of the Group. Taxes on income are recognized in income
\n
statement except to the extent they relate to items recognized directly in equity or in other comprehensive income, in
\n
which case the related tax effects are recognized directly in equity or in other comprehensive income. Deferred taxes are
\n
calculated on temporary differences between the tax base of an asset or liability and the carrying amounts in the Consol-
\n
idated Financial Statements, Deferred tax assets relating to the carry-forward of unused tax losses are recognized to the
\n
extent it is probable future profits will be available against which they can be utilized. Current and deferred income tax
\n
assets and liabilities are offset when the income taxes are levied by the same taxation authority and where there is a
\n
legally enforceable right of offset. Deferred tax assets and liabilities are measured at the enacted or substantively enacted
\n
tax rates of the relevant tax jurisdictions that are expected to apply to taxable income during the period or periods in
\n
which the temporary differences reverse. Other taxes not based on taxable profits, such as property taxes and taxes on
\n
capital, are included in operating expenses.
\n
\n \n
\n \n \n
\n
Defined benefit plans (pension benefits)
\n
The cost of the defined benefit pension plan and other post-employment medical benefits and the present value of the
\n
pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions
\n
that may differ from actual developments in the future. These include the determination of the discount rate, future
\n
salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its
\n
long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
\n
reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appro-
\n
priate discount rate, management considers the interest rates of corporate bonds in currencies consistent with the cur-
\n
rencies of the post-employment benefit obligation with at least an \u2018AA\u2019 rating or above, as set by an internationally
\n
acknowledged rating agency, and extrapolated as needed along the yield curve to correspond with the expected term of
\n
the defined benefit obligation. The underlying bonds are further reviewed for quality. Those having excessive credit
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
spreads are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not rep-
\n
resent high quality corporate bonds. The mortality rate is based on publicly available mortality tables for the specific
\n
countries. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary
\n
increases and pension increases are based on expected future inflation rates for the respective countries.
\n
\n \n \n
\n
Fair value measurement of financial instruments
\n
When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be
\n
measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the
\n
discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but
\n
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations
\n
of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the
\n
reported fair value of financial instruments. Contingent consideration, resulting from business combinations, is valued at
\n
fair value at the acquisition date as part of the business combination. When the contingent consideration meets the
\n
definition of a financial liability, it is subsequently remeasured to fair value at each reporting date. The determination of
\n
the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting
\n
each performance target and the discount factor.
\n
\n \n \n
\n
Development costs
\n
The Group capitalises costs for product development projects. Initial capitalisation of costs is based on management\u2019s
\n
judgement that technological and economic feasibility is confirmed, usually when a product development project has
\n
reached a defined milestone according to an established project management model. In determining the amounts to be
\n
capitalised, management makes assumptions regarding the expected future cash generation of the project, discount
\n
rates to be applied and the expected period of benefits.
\n
\n \n \n
\n \n
\n
Revenue recognition - Estimating variable consideration for returns and volume rebates
\n
The Group estimates variable considerations to be included in the transaction price for the sale of goods with rights of
\n
return and volume rebates.
\n
The Group has developed a statistical model for forecasting sales returns. The model uses the historical return data of
\n
each product to come up with expected return percentages. These percentages are applied to determine the expected
\n
value of the variable consideration. Any significant changes in experience as compared to historical return pattern will
\n
impact the expected return percentages estimated by the Group.
\n
The Group\u2019s expected volume rebates are analysed on a per customer basis for contracts that are subject to a single
\n
volume threshold. Determining whether a customer will be likely entitled to rebate will depend on the customer\u2019s histor-
\n
ical rebates entitlement and accumulated purchases to date.
\n
The Group applied the statistical model for estimating expected volume rebates for contracts. The model uses the his-
\n
torical purchasing patterns and rebates entitlement of customers to determine the expected rebate percentages and the
\n
expected value of the variable consideration. Any significant changes in experience as compared to historical purchasing
\n
patterns and rebate entitlements of customers will impact the expected rebate percentages estimated by the Group.
\n
\n \n
\n \n \n
\n
Leases - Estimating the incremental borrowing rate
\n
The Incremental Borrowing Rate (IBR) is defined as the interest rate the lessee would incur to borrow under a secured
\n
loan with terms similar to those of the lease, with a similar security and in a similar economic environment. Such interest
\n
rate is identified through the Bloomberg database by applying the following relevant criteria to enhance the comparabil-
\n
ity:
\n
\u2022
\n
The credit rating;
\n
\u2022
\n
The term of the loan;
\n
\u2022
\n
The currency of denomination;
\n
\u2022
\n
The geographies (depending on the cases, countries or regions);
\n
\u2022
\n
The industry of the borrowing entity.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
In order to obtain statistically significant samples of comparable transactions, a flexibility in the above criteria shall be
\n
preserved and specific adjustments can be made to account for particular comparability factors. When the base rate is
\n
negative, a zero floor to the base rate is applied.
\n
For more information on leases, please see note 2.2 and 3.5.
\n
\n \n \n
\n
Contingent liabilities
\n
The Group trigger provisions once pending or threatened disputes or legal proceedings are considered as a probable
\n
event, for which there could be an outflow of funds with the amount reasonably estimated. If an outflow of funds be-
\n
comes possible but the amount cannot be estimated, the matter is disclosed in the notes to the Consolidated Financial
\n
Statements. The Group could be subject of legal and tax proceedings from various jurisdictions and for complex issues
\n
therefore eventually monitoring the status of pending legal proceedings consulting with matters\u2019 experts on regular basis.
\n
Due to the uncertainty inherent to in matters, it is difficult to predict the outflow of funds that could result from such
\n
disputes with any certainty.
\n
\n \n
Climate change
\n
In preparing the Consolidated Financial Statements the Group has considered the impact of climate change as requested
\n
by ESMA in its ECEP published in October 2021. Ariston Group pursues the definition of paradigms related to energy
\n
efficiency and to minimizing the environmental footprints. The Group is constantly evolving in order to be a forerunner
\n
about the negative environmental impacts.
\n
In the Consolidated Financial Statements, the Group does not have a material climate change impacts given that the
\n
Group has embraced a day-by-day handling dedicated to technological progress.
\n
In applying the Accounting Standards, the Group has considered the impacts arising from climate change. In particular,
\n
the Group, in performing the impairment activities of non-financial assets, has considered the economic and financial
\n
impacts resulting from the actions carried out by the Group in order to be in compliance with climate changes regulations.
\n
In performing the analysis on Inventory, the Group has considered for materials and products in stock the technological
\n
obsolescence which can arise from climate changes.
\n
\n \n
\n \n
\n \n
\n
For trade receivables, the Group uses the \u201c12-month ECL\u201d methodology to determine the lifetime of the expected losses
\n
associated with the probability of default over the next 12 months, using a forward-looking approach. The calculation of
\n
the expected credit loss, which is made on the residual life of the receivables at the date of their recognition in the
\n
financial statements and the subsequent reporting dates, considers a 12-month time horizon, since at the closing date of
\n
the period there was no significant increase in credit risk.
\n
In particular, the Group applies an approach defined as a \u201cprovision matrix\u201d, based on the division of trade receivables
\n
into clusters on the basis of type (ordinary/legal), ageing (past-due ranges) and country rating. For the purposes of deter-
\n
mining expected losses, the Group applies a definition of the default threshold for ordinary receivables of 120 days past
\n
due and 100% for receivables which have moved to legal default, since this is considered an effective indication of the
\n
threshold beyond which the receivable is considered unrecoverable. The calculation of the probability of default is there-
\n
fore based on the effective number of days the payment is overdue. In the same perimeter, for a percentage of 31% in
\n
terms of newly recalculated bad debt fund, the Group is applying a new impairment criteria based on the probability of
\n
default (PD) obtained from external sources and historical loss rates.
\n
As regards the write-off criteria, these are clearly based on the specific statutory and tax rules in force in the various
\n
countries where the Group companies are present.
\n
\n \n
\n \n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n \n
\n \n
\n
Depreciation grid
\n
Trade receivables aging
\n
Country risk A
\n
Country risk B
\n
Country risk C
\n
Country risk D
\n
Overdue > 360 days
\n
70%
\n
80%
\n
90%
\n
100%
\n
Overdue 271- 360
\n
50%
\n
60%
\n
70%
\n
90%
\n
Overdue 181- 270
\n
35%
\n
40%
\n
50%
\n
70%
\n
Overdue 121-180
\n
20%
\n
25%
\n
35%
\n
50%
\n
Overdue 91-120
\n
12.5%
\n
15%
\n
20%
\n
30%
\n
Overdue 61-90
\n
7.5%
\n
10%
\n
12.5%
\n
20%
\n
Overdue 31-60
\n
2.5%
\n
5%
\n
7.5%
\n
10%
\n
Overdue 0-30
\n
1.25%
\n
1.5%
\n
2.5%
\n
5%
\n
Current (not overdue)
\n
0.5%
\n
0.75%
\n
1%
\n
1.5%
\n
Following is the summary of the specific and simplified ECLs assessments used to determine the bad debt provision:
\n
Analysis of bad debt provision
\n
31.12.2022
\n
31.12.2021
\n
Total receivables
\n
Gross
\n
325.4
\n
267.3
\n
Provision
\n
17.0
\n
19.0
\n
Net
\n
308.4
\n
248.3
\n
Receivables impaired on a specific basis
\n
Gross
\n
5.2
\n
6.7
\n
Provision
\n
4.7
\n
6.0
\n
Net
\n
0.5
\n
0.7
\n
Receivables impaired on a simplified ECLs
\n
Gross
\n
320.2
\n
260.6
\n
Provision
\n
12.3
\n
13.0
\n
Net
\n
307.9
\n
247.6
\n
\n \n
\n \n
\n \n
\n
Uncertain tax position
\n
According to IFRIC23 \u2018Uncertainty over Income Tax Treatments\u2019 to clarify the accounting for uncertainties in income tax
\n
is applied.
\n
The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused
\n
tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12.
\n
In the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, an entity
\n
has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treat-
\n
ments, that it is used or plans to use in its income tax filling.
\n
If the entity concludes that it is probable that a particular tax treatment is accepted, the entity has to determine taxable
\n
profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment included
\n
in its income tax filings.
\n
If the entity concludes that it is not probable that a particular tax treatment is accepted, the entity has to use the most
\n
likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused
\n
tax losses, unused tax credits and tax rates. The decision should be based on which method provides better predictions
\n
of the resolution of the uncertainty.
\n
In case facts and circumstances changes, the entity shall reassess its judgements and estimates.
\n
\n \n
\n
xxi.
\n
Significant accounting judgements, estimates and assumptions
\n
The preparation of the Group\u2019s consolidated financial statements requires management to make judgements, estimates
\n
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
\n
disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjust-
\n
ment to the carrying amount of assets or liabilities affected in future periods.
\n
Judgements
\n \n
\n
Determining the lease term of contracts with renewal and termination options
\n
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
\n
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
\n
the lease, if it is reasonably certain not to be exercised. The Group has several lease contracts that include extension and
\n
termination options. The Group applies judgement in evaluating whether it is reasonably certain whether or not to exer-
\n
cise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive
\n
for it to exercise either the renewal or termination. After the commencement date, the Group reassesses the lease term
\n
if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not
\n
to exercise the option to renew or to terminate. The Group included the renewal period as part of the lease term for
\n
leases of plant and machinery with shorter non-cancellable period. Furthermore, the periods covered by termination
\n
options are included as part of the lease term only when they are reasonably certain not to be exercised.
\n
\n \n
Estimates and assumptions
\n
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
\n
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
\n
financial year, are described below. The Group based its assumptions and estimates on parameters available when the
\n
consolidated financial statements were prepared. Existing circumstances and assumptions about future developments,
\n
however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such
\n
changes are reflected in the assumptions when they occur.
\n
\n \n
\n \n
\n \n
\n
Impairment of non-financial assets
\n
When the carrying amount of property, plant and equipment, investment property, intangible assets, right-of-use assets,
\n
goodwill and investments in associates/joint ventures exceeds its recoverable amount, which is the higher of the fair
\n
value less costs of disposal and the value in use, the assets are impaired. Such impairments are carried out in accordance
\n
with the provisions of IAS 36, as described in greater detail in note 2.1. In order to determine the recoverable amount,
\n
the Group generally adopts the value in use criterion. Value in use is based on the estimated future cash flows generated
\n
by the asset, discounted to their present value using a pre-tax discount rate that reflects the current market assessment
\n
of the time value of money and of the specific risks of the asset. Future cash flows used to determine value in use are
\n
based on the most recent business plan, approved by the management, containing forecasts for volumes, revenue, op-
\n
erating costs. These projections cover the next three years. For subsequent years, the assumption is the perpetual in-
\n
come. Nevertheless, possible changes in the underlying assumptions on which the calculation of such amounts is based
\n
could generate different recoverable amounts. The analysis of each group of non-financial assets is unique and requires
\n
management to use estimates and assumptions considered prudent and reasonable in the specific circumstances.
\n
\n \n \n
\n \n
\n \n
\n \n
\n
Provision for expected credit losses of trade receivables and contract assets
\n
The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
\n
based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography,
\n
and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group\u2019s
\n
historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with
\n
forward-looking information. For instance, if forecast economic conditions are expected to deteriorate over the next year
\n
which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted.
\n
The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
\n
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
\n
The Group\u2019s historical credit loss experience and forecast of economic conditions may also not be representative of cus-
\n
tomer\u2019s actual default in the future. The information about the ECLs on the Group\u2019s trade receivables and contract assets
\n
is disclosed in \u2018Credit Risk\u2019 included in section \u20186.4 - Other information\u2019.
\n
\n \n
\n \n
\n \n
\n \n
\n \n \n
\n \n
\n \n
\n \n
Income taxes include all taxes based upon the taxable profits of the Group. Taxes on income are recognized in income
\n
statement except to the extent they relate to items recognized directly in equity or in other comprehensive income, in
\n
which case the related tax effects are recognized directly in equity or in other comprehensive income. Deferred taxes are
\n
calculated on temporary differences between the tax base of an asset or liability and the carrying amounts in the Consol-
\n
idated Financial Statements, Deferred tax assets relating to the carry-forward of unused tax losses are recognized to the
\n
extent it is probable future profits will be available against which they can be utilized. Current and deferred income tax
\n
assets and liabilities are offset when the income taxes are levied by the same taxation authority and where there is a
\n
legally enforceable right of offset. Deferred tax assets and liabilities are measured at the enacted or substantively enacted
\n
tax rates of the relevant tax jurisdictions that are expected to apply to taxable income during the period or periods in
\n
which the temporary differences reverse. Other taxes not based on taxable profits, such as property taxes and taxes on
\n
capital, are included in operating expenses.
\n
\n \n
\n \n \n
\n
Defined benefit plans (pension benefits)
\n
The cost of the defined benefit pension plan and other post-employment medical benefits and the present value of the
\n
pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions
\n
that may differ from actual developments in the future. These include the determination of the discount rate, future
\n
salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its
\n
long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
\n
reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appro-
\n
priate discount rate, management considers the interest rates of corporate bonds in currencies consistent with the cur-
\n
rencies of the post-employment benefit obligation with at least an \u2018AA\u2019 rating or above, as set by an internationally
\n
acknowledged rating agency, and extrapolated as needed along the yield curve to correspond with the expected term of
\n
the defined benefit obligation. The underlying bonds are further reviewed for quality. Those having excessive credit
\n
\n \n
\n \n
\n \n
\n \n
\n
spreads are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not rep-
\n
resent high quality corporate bonds. The mortality rate is based on publicly available mortality tables for the specific
\n
countries. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary
\n
increases and pension increases are based on expected future inflation rates for the respective countries.
\n
\n \n \n
\n
Fair value measurement of financial instruments
\n
When the fair values of financial assets and financial liabilities recorded in the statement of financial position cannot be
\n
measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the
\n
discounted cash flow (DCF) model. The inputs to these models are taken from observable markets where possible, but
\n
where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations
\n
of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the
\n
reported fair value of financial instruments. Contingent consideration, resulting from business combinations, is valued at
\n
fair value at the acquisition date as part of the business combination. When the contingent consideration meets the
\n
definition of a financial liability, it is subsequently remeasured to fair value at each reporting date. The determination of
\n
the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting
\n
each performance target and the discount factor.
\n
\n \n \n
\n
Development costs
\n
The Group capitalises costs for product development projects. Initial capitalisation of costs is based on management\u2019s
\n
judgement that technological and economic feasibility is confirmed, usually when a product development project has
\n
reached a defined milestone according to an established project management model. In determining the amounts to be
\n
capitalised, management makes assumptions regarding the expected future cash generation of the project, discount
\n
rates to be applied and the expected period of benefits.
\n
\n \n \n
\n \n
\n
Revenue recognition - Estimating variable consideration for returns and volume rebates
\n
The Group estimates variable considerations to be included in the transaction price for the sale of goods with rights of
\n
return and volume rebates.
\n
The Group has developed a statistical model for forecasting sales returns. The model uses the historical return data of
\n
each product to come up with expected return percentages. These percentages are applied to determine the expected
\n
value of the variable consideration. Any significant changes in experience as compared to historical return pattern will
\n
impact the expected return percentages estimated by the Group.
\n
The Group\u2019s expected volume rebates are analysed on a per customer basis for contracts that are subject to a single
\n
volume threshold. Determining whether a customer will be likely entitled to rebate will depend on the customer\u2019s histor-
\n
ical rebates entitlement and accumulated purchases to date.
\n
The Group applied the statistical model for estimating expected volume rebates for contracts. The model uses the his-
\n
torical purchasing patterns and rebates entitlement of customers to determine the expected rebate percentages and the
\n
expected value of the variable consideration. Any significant changes in experience as compared to historical purchasing
\n
patterns and rebate entitlements of customers will impact the expected rebate percentages estimated by the Group.
\n
\n \n
\n \n \n
\n
Leases - Estimating the incremental borrowing rate
\n
The Incremental Borrowing Rate (IBR) is defined as the interest rate the lessee would incur to borrow under a secured
\n
loan with terms similar to those of the lease, with a similar security and in a similar economic environment. Such interest
\n
rate is identified through the Bloomberg database by applying the following relevant criteria to enhance the comparabil-
\n
ity:
\n
\u2022
\n
The credit rating;
\n
\u2022
\n
The term of the loan;
\n
\u2022
\n
The currency of denomination;
\n
\u2022
\n
The geographies (depending on the cases, countries or regions);
\n
\u2022
\n
The industry of the borrowing entity.
\n
\n \n
\n \n
\n \n
\n
In order to obtain statistically significant samples of comparable transactions, a flexibility in the above criteria shall be
\n
preserved and specific adjustments can be made to account for particular comparability factors. When the base rate is
\n
negative, a zero floor to the base rate is applied.
\n
For more information on leases, please see note 2.2 and 3.5.
\n
\n \n \n
\n
Contingent liabilities
\n
The Group trigger provisions once pending or threatened disputes or legal proceedings are considered as a probable
\n
event, for which there could be an outflow of funds with the amount reasonably estimated. If an outflow of funds be-
\n
comes possible but the amount cannot be estimated, the matter is disclosed in the notes to the Consolidated Financial
\n
Statements. The Group could be subject of legal and tax proceedings from various jurisdictions and for complex issues
\n
therefore eventually monitoring the status of pending legal proceedings consulting with matters\u2019 experts on regular basis.
\n
Due to the uncertainty inherent to in matters, it is difficult to predict the outflow of funds that could result from such
\n
disputes with any certainty.
\n
\n \n
Climate change
\n
In preparing the Consolidated Financial Statements the Group has considered the impact of climate change as requested
\n
by ESMA in its ECEP published in October 2021. Ariston Group pursues the definition of paradigms related to energy
\n
efficiency and to minimizing the environmental footprints. The Group is constantly evolving in order to be a forerunner
\n
about the negative environmental impacts.
\n
In the Consolidated Financial Statements, the Group does not have a material climate change impacts given that the
\n
Group has embraced a day-by-day handling dedicated to technological progress.
\n
In applying the Accounting Standards, the Group has considered the impacts arising from climate change. In particular,
\n
the Group, in performing the impairment activities of non-financial assets, has considered the economic and financial
\n
impacts resulting from the actions carried out by the Group in order to be in compliance with climate changes regulations.
\n
In performing the analysis on Inventory, the Group has considered for materials and products in stock the technological
\n
obsolescence which can arise from climate changes.
\n
\n \n
\n
For trade receivables, the Group uses the \u201c12-month ECL\u201d methodology to determine the lifetime of the expected losses
\n
associated with the probability of default over the next 12 months, using a forward-looking approach. The calculation of
\n
the expected credit loss, which is made on the residual life of the receivables at the date of their recognition in the
\n
financial statements and the subsequent reporting dates, considers a 12-month time horizon, since at the closing date of
\n
the period there was no significant increase in credit risk.
\n
In particular, the Group applies an approach defined as a \u201cprovision matrix\u201d, based on the division of trade receivables
\n
into clusters on the basis of type (ordinary/legal), ageing (past-due ranges) and country rating. For the purposes of deter-
\n
mining expected losses, the Group applies a definition of the default threshold for ordinary receivables of 120 days past
\n
due and 100% for receivables which have moved to legal default, since this is considered an effective indication of the
\n
threshold beyond which the receivable is considered unrecoverable. The calculation of the probability of default is there-
\n
fore based on the effective number of days the payment is overdue. In the same perimeter, for a percentage of 31% in
\n
terms of newly recalculated bad debt fund, the Group is applying a new impairment criteria based on the probability of
\n
default (PD) obtained from external sources and historical loss rates.
\n
As regards the write-off criteria, these are clearly based on the specific statutory and tax rules in force in the various
\n
countries where the Group companies are present.
\n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n
Depreciation grid
\n
Trade receivables aging
\n
Country risk A
\n
Country risk B
\n
Country risk C
\n
Country risk D
\n
Overdue > 360 days
\n
70%
\n
80%
\n
90%
\n
100%
\n
Overdue 271- 360
\n
50%
\n
60%
\n
70%
\n
90%
\n
Overdue 181- 270
\n
35%
\n
40%
\n
50%
\n
70%
\n
Overdue 121-180
\n
20%
\n
25%
\n
35%
\n
50%
\n
Overdue 91-120
\n
12.5%
\n
15%
\n
20%
\n
30%
\n
Overdue 61-90
\n
7.5%
\n
10%
\n
12.5%
\n
20%
\n
Overdue 31-60
\n
2.5%
\n
5%
\n
7.5%
\n
10%
\n
Overdue 0-30
\n
1.25%
\n
1.5%
\n
2.5%
\n
5%
\n
Current (not overdue)
\n
0.5%
\n
0.75%
\n
1%
\n
1.5%
\n
Following is the summary of the specific and simplified ECLs assessments used to determine the bad debt provision:
\n
Analysis of bad debt provision
\n
31.12.2022
\n
31.12.2021
\n
Total receivables
\n
Gross
\n
325.4
\n
267.3
\n
Provision
\n
17.0
\n
19.0
\n
Net
\n
308.4
\n
248.3
\n
Receivables impaired on a specific basis
\n
Gross
\n
5.2
\n
6.7
\n
Provision
\n
4.7
\n
6.0
\n
Net
\n
0.5
\n
0.7
\n
Receivables impaired on a simplified ECLs
\n
Gross
\n
320.2
\n
260.6
\n
Provision
\n
12.3
\n
13.0
\n
Net
\n
307.9
\n
247.6
\n
\n \n
\n
Uncertain tax position
\n
According to IFRIC23 \u2018Uncertainty over Income Tax Treatments\u2019 to clarify the accounting for uncertainties in income tax
\n
is applied.
\n
The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused
\n
tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12.
\n
In the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, an entity
\n
has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treat-
\n
ments, that it is used or plans to use in its income tax filling.
\n
If the entity concludes that it is probable that a particular tax treatment is accepted, the entity has to determine taxable
\n
profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment included
\n
in its income tax filings.
\n
If the entity concludes that it is not probable that a particular tax treatment is accepted, the entity has to use the most
\n
likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused
\n
tax losses, unused tax credits and tax rates. The decision should be based on which method provides better predictions
\n
of the resolution of the uncertainty.
\n
In case facts and circumstances changes, the entity shall reassess its judgements and estimates.
\n
\n
xvii.
\n
Taxes
\n
Current income tax
\n
Current taxes are based on the taxable income for the year. The taxable income is different from the profit/loss recog-
\n
nized in the income statement since it excludes positive and negative items which are taxable or deductible in other years
\n
and it also excludes items that will never be taxable or deductible.
\n
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxa-
\n
tion authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
\n
enacted at the reporting date in the countries where the Group operates and generates taxable income.
\n
Current income tax relating to items recognized directly in equity is recognized in equity and not in the income statement.
\n
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
\n
regulations are subject to interpretation and establishes provisions where appropriate.
\n \n
\n
Deferred tax
\n
Deferred taxes are those that the Group expects to settle or recover based on the temporary differences between the
\n
carrying value of assets and liabilities and their corresponding tax values used for calculating taxable income. They are
\n
recognized using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable tem-
\n
porary differences, whereas deferred tax assets are recognized only if it is probable that there will be future taxable
\n
income against which deductible temporary differences can be used. Deferred tax assets and liabilities are not recognized
\n
if the temporary differences derive from goodwill or the initial recognition (not in business combinations) of other assets
\n
or liabilities in transactions that do not affect the profit (loss) for the year or the taxable income.
\n
In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint
\n
arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the
\n
temporary differences will not reverse in the foreseeable future.
\n
The carrying value of deferred tax assets is reviewed at each reporting date and impaired, if it is no longer probable that
\n
sufficient taxable income exists that can enable recovery of all or part of the assets.
\n
In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in
\n
joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differ-
\n
ences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences
\n
can be utilized.
\n
Deferred taxes are calculated at the tax rate that is expected to be applied when the asset is realized or the liability
\n
extinguished. Deferred taxes are recognized directly in the income statement, except for those related to items recog-
\n
nized directly under equity, in which case the deferred taxes are also recognized under equity.
\n
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off
\n
current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
\n
levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either
\n
\n \n
\n \n
\n
to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in
\n
each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recov-
\n
ered.
\n
\n \n
\n \n
\n \n
\n \n
Income taxes include all taxes based upon the taxable profits of the Group. Taxes on income are recognized in income
\n
statement except to the extent they relate to items recognized directly in equity or in other comprehensive income, in
\n
which case the related tax effects are recognized directly in equity or in other comprehensive income. Deferred taxes are
\n
calculated on temporary differences between the tax base of an asset or liability and the carrying amounts in the Consol-
\n
idated Financial Statements, Deferred tax assets relating to the carry-forward of unused tax losses are recognized to the
\n
extent it is probable future profits will be available against which they can be utilized. Current and deferred income tax
\n
assets and liabilities are offset when the income taxes are levied by the same taxation authority and where there is a
\n
legally enforceable right of offset. Deferred tax assets and liabilities are measured at the enacted or substantively enacted
\n
tax rates of the relevant tax jurisdictions that are expected to apply to taxable income during the period or periods in
\n
which the temporary differences reverse. Other taxes not based on taxable profits, such as property taxes and taxes on
\n
capital, are included in operating expenses.
\n
\n \n
\n
xiv.
\n
Employment benefits
\n
Group companies provide post-employment benefits to staff, both directly and by contributing to external funds.
\n
The procedures for providing these benefits vary depending to the legal, fiscal and economic conditions in each country
\n
in which the Group operates.
\n
Employee benefits are accounted under the IAS 19 and IFRS 2.
\n
Group companies provide post-employment benefits through defined contribution and/or defined benefit plans.
\n
\n \n
\n
Post-employment benefits
\n
i. Defined benefit plans
\n
The Group\u2019s obligations and the annual cost reported in the income statement are determined by independent actuaries
\n
using the projected unit credit method.
\n
The net cumulative value of actuarial gains and losses is recorded directly in the statement of other comprehensive in-
\n
come and is not subsequently recognized in the income statement. The costs associated with an increase in the present
\n
value of the obligation, as the time for payment of the benefits draws nearer, are included under financial expenses.
\n
Service costs are posted to the income statement.
\n
The liability recognized represents the present value of the defined benefit obligation, less the present value of plan
\n
assets. If an amendment to the plan changes the benefits accruing from past service, the costs arising from past service
\n
are recognized in the income statement at the time the change to the plan is made. The same treatment is applied if
\n
there is a change to the plan that reduces the number of employees or that amends the terms and conditions of the plan
\n
(the treatment is the same, regardless of whether the final result is a profit or a loss).
\n
For defined benefit plans, remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, ex-
\n
cluding amounts included in net interest on the net defined benefit/contribution liability and the return on plan assets
\n
(excluding amounts included in net interest on the net defined benefit/contribution liability), are recognized immediately
\n
in the statement of financial position with a corresponding debit or credit to retained earnings through OCI in the period
\n
in which they occur. Remeasurements are not reclassified to income statement in subsequent periods.
\n
Past service costs are recognized in income statement on the earlier of:
\n
\u2022
\n
The date of the plan amendment or curtailment, and
\n
\u2022
\n
The date that the Group recognizes related restructuring costs
\n
Net interest is calculated by applying the discount rate to the net defined benefit/contribution liability or asset. The Group
\n
recognizes the following changes in the net defined benefit/contribution obligation under \u2018cost of sales\u2019, \u2018administration
\n
expenses\u2019 and \u2018selling and distribution expenses\u2019 in the consolidated income statement (by nature):
\n
\u2022
\n
Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
\n
settlements
\n
\u2022
\n
Net interest expense or income
\n
ii. Defined contribution plans
\n
Since the Group fulfils its obligations by paying contributions to a separate entity (a fund), with no further obligations,
\n
the company records its contributions to the fund in respect of employees\u2019 service, without making any actuarial calcu-
\n
lation.
\n
Where these contributions have already been paid at the reporting date, no liabilities are recorded in the financial state-
\n
ments.
\n \n
\n
Share-based payments
\n
Employees (including senior executives) of the Group receive remuneration in the form of share-based payments,
\n
whereby employees render services as consideration for equity instruments (equity-settled transactions).
\n
Equity-settled transactions
\n
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an ap-
\n
propriate valuation model.
\n
That cost is recognized in employee benefits expense, together with a corresponding increase in equity (other capital
\n
reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting
\n
period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date
\n
reflects the extent to which the vesting period has expired and the Group\u2019s best estimate of the number of equity instru-
\n
ments that will ultimately vest. The expense or credit in the income statement for a period represents the movement in
\n
cumulative expense recognized as at the beginning and end of that period. Service and non-market performance condi-
\n
tions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions
\n
being met is assessed as part of the Group\u2019s best estimate of the number of equity instruments that will ultimately vest.
\n
\n \n
\n \n
\n \n
\n
Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award,
\n
but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are
\n
reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service
\n
and/or performance conditions.
\n
No expense is recognized for awards that do not ultimately vest because non-market performance and/or service condi-
\n
tions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested
\n
irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or ser-
\n
vice conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized
\n
is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An addi-
\n
tional expense, measured as at the date of modification, is recognized for any modification that increases the total fair
\n
value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled
\n
by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately
\n
through profit or loss. The dilutive effect of outstanding options is reflected as additional share dilution in the computa-
\n
tion of diluted earnings per share.
\n
\n \n
\n
Defined benefit plans (pension benefits)
\n
The cost of the defined benefit pension plan and other post-employment medical benefits and the present value of the
\n
pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions
\n
that may differ from actual developments in the future. These include the determination of the discount rate, future
\n
salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its
\n
long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
\n
reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appro-
\n
priate discount rate, management considers the interest rates of corporate bonds in currencies consistent with the cur-
\n
rencies of the post-employment benefit obligation with at least an \u2018AA\u2019 rating or above, as set by an internationally
\n
acknowledged rating agency, and extrapolated as needed along the yield curve to correspond with the expected term of
\n
the defined benefit obligation. The underlying bonds are further reviewed for quality. Those having excessive credit
\n
\n
spreads are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not rep-
\n
resent high quality corporate bonds. The mortality rate is based on publicly available mortality tables for the specific
\n
countries. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary
\n
increases and pension increases are based on expected future inflation rates for the respective countries.
\n
\n
Share-based payments
\n
Employees (including senior executives) of the Group receive remuneration in the form of share-based payments,
\n
whereby employees render services as consideration for equity instruments (equity-settled transactions).
\n
Equity-settled transactions
\n
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an ap-
\n
propriate valuation model.
\n
That cost is recognized in employee benefits expense, together with a corresponding increase in equity (other capital
\n
reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting
\n
period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date
\n
reflects the extent to which the vesting period has expired and the Group\u2019s best estimate of the number of equity instru-
\n
ments that will ultimately vest. The expense or credit in the income statement for a period represents the movement in
\n
cumulative expense recognized as at the beginning and end of that period. Service and non-market performance condi-
\n
tions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions
\n
being met is assessed as part of the Group\u2019s best estimate of the number of equity instruments that will ultimately vest.
\n
\n
Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award,
\n
but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are
\n
reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service
\n
and/or performance conditions.
\n
No expense is recognized for awards that do not ultimately vest because non-market performance and/or service condi-
\n
tions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested
\n
irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or ser-
\n
vice conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized
\n
is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An addi-
\n
tional expense, measured as at the date of modification, is recognized for any modification that increases the total fair
\n
value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled
\n
by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately
\n
through profit or loss. The dilutive effect of outstanding options is reflected as additional share dilution in the computa-
\n
tion of diluted earnings per share.
\n
\n
xv.
\n
Grants
\n
Government grants, obtained against investments, are recognized in the income statement when the conditions for
\n
recognition are met (i.e. when there is reasonable certainty of recognition) as deferred income, over the period required
\n
to relate them to their respective costs.
\n
When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related
\n
asset.
\n
When the Group receives grants of non-monetary assets, the asset and the grant are recorded at nominal amounts and
\n
released to income statement over the expected useful life of the asset, based on the pattern of consumption of the
\n
benefits of the underlying asset by equal annual instalments.
\n
\n \n
\n
xvi.
\n
Revenue and income
\n
\n \n
In order to recognize and measure revenue so as to faithfully represent the process of transferring goods and services to
\n
customers for an amount which reflects the expected consideration from the goods and services supplied, the Group
\n
applies a model consisting of five essential stages, as envisaged by IFRS 15: to identify the contract with the customer
\n
(stage 1); to identify the contractual obligations recognizing the goods or services which can be separated as separate
\n
obligations (stage 2); to determine the transaction price, i.e. the expected consideration (stage 3); to allocate the trans-
\n
action price to each obligation identified in the contract on the basis of the stand-alone sale price of each separable good
\n
or service (stage 4); to recognize revenue when the related performance obligation is satisfied, i.e. upon transfer of the
\n
good or service promised to the customer (stage 5). The transfer is considered completed when the customer obtains
\n
control of the good or service, which can happen at a point in time. The Group has generally concluded that it is the
\n
principal in its revenue arrangements, because it typically controls the goods or services before transferring them to the
\n
customer.
\n
In applying the aforementioned model, Ariston Group took into consideration the specific facts and circumstances mainly
\n
arising from the regulations in place in the various jurisdictions where the Group companies operate. The most important
\n
situations for the purposes of the consolidated financial statements refer mainly to the following revenue streams (stand-
\n
ard categories for contractual terms and conditions (T&C) with customers, which describe the nature, amount, timing
\n
and cash flows):
\n
\n \n
\n
Revenue stream
\n
\"Revenue stream\" description
\n
% Revenues
\n
2022
\n
% Revenues
\n
2021
\n
Professional
\n
Customers are mainly installers, medium-large distribu-
\n
tors and professionals in the field of Thermal Comfort.
\n
Standard T&Cs apply and the main performance obliga-
\n
tion is characterized by the sale of finished products in-
\n
cluding variable considerations too.
\n
The Group acts as principal.
\n
73%
\n
70%
\n
DIY (Do it yourself)
\n
Customers are large retailers. The main performance obli-
\n
gation is characterized by the sale of finished products
\n
and the variable considerations are significant.
\n
T&Cs are decided by the customer by means
\n
of annual framework agreements.
\n
The Group acts as principal.
\n
7%
\n
7%
\n
Business-to-business
\n
(B2B)
\n
The main performance obligation is characterized by the
\n
sale of components, burners and heating only for specific
\n
projects: e.g., for institutions (schools, hospitals, etc.).
\n
The Group acts as principal.
\n
8%
\n
9%
\n
Service
\n
Indirect service
\n
: maintenance and repair services offered
\n
through Technical Support to the end customer.
\n
Direct service
\n
: maintenance and repair services offered di-
\n
rectly to the end customer.
\n
Spare Parts
\n
: Related to Service activities (in PL reported as
\n
Net Revenue from Sales).
\n
The Group acts as principal.
\n
12%
\n
14%
\n
Total
\n
100%
\n
100%
\n
The revenue from the sale of goods under the IFRS15 follow the here listed paragraphs:
\n
\u2022
\n
Cut off: revenue is recognized at a point in time on the basis of the means of delivery agreed with the customer;
\n \n
\n
\u2022
\n
Cash discount: cash discount is considered as a net of revenue;
\n
\n \n
\u2022
\n
Rights of Return: the Group uses the expected value method to estimate the variable consideration given the large
\n
number of contracts that have similar characteristics. A refund liability is recognized for the goods that are expected
\n
to be returned. A right of return asset (and corresponding adjustment to cost of sales) is also recognized for the right
\n
to recover the goods from the customer;
\n \n
\n
\u2022
\n
Volume rebate: volume rebate is calculated on actual basis and accounted balancing the accounts receivable;
\n
\n \n
\u2022
\n
Payables to Customers: Payable to customers includes cash amounts that the Group pays or expects to pay to the
\n
customers. Payables to customers are recognized as net of revenue;
\n
\u2022
\n
Warranties: the Group typically provides warranties for general repairs of defects that existed at the time of sale, as
\n
required by law. These assurance-type warranties are accounted for as warranty provisions. The Group also provides
\n
a warranty beyond fixing defects that existed at the time of sale. These service-type warranties are sold either sepa-
\n
rately or bundled together with the sale of products. Revenue for bundled sales and service-type warranty comprise
\n
two performance obligations due to the fact that products and service-type warranty are both sold on a stand-alone
\n
basis and are distinct within the context of the contract or the business practice of the market where the Group
\n
operates. Using the relative stand-alone selling price method, a portion of the transaction price is allocated to the
\n
service-type warranty and recognized as a contract liability. Revenue for service-type warranties is recognized over
\n
the period in which the service is provided based on the time elapsed.
\n
The revenue from service under the IFRS15 are accounted at point in time as well as over the time. The former is accom-
\n
plished not under service maintenance contracts but for pure repair once not covered by warranty.
\n
Under service mainte-
\n
nance contracts, the Group offers customers the opportunity to sign either a one-year or multi-years service contracts,
\n
under which the Group undertakes to perform maintenance service and remedy certain defects that are not covered by
\n
the warranty provided. Service contracts are separate performance obligations and are met over time in accordance with
\n
IFRS 15. The amount received is therefore taken up as revenue over the term of the service contract.
\n
\n \n
\n
Assets and liabilities arising from rights of return
\n
Right of return assets
\n
A right-of-return asset is recognized for the right to recover the goods expected to be returned by customers. The asset
\n
is measured at the former carrying amount of the inventory, less any expected costs to recover the goods and any po-
\n
tential decreases in value. The Group updates the measurement of the asset for any revisions to the expected level of
\n
returns and any additional decreases in the value of the returned products.
\n
Refund liabilities
\n
A refund liability is recognized for the obligation to refund some or all of the consideration received (or receivable) from
\n
a customer. The Group\u2019s refund liabilities arise from customers\u2019 right of return. The liability is measured at the amount
\n
the Group ultimately expects it will have to return to the customer. The Group updates its estimates of refund liabilities
\n
(and the corresponding change in the transaction price) at the end of each reporting period.
\n
Regarding the use of significant assumptions to be referred to sub-paragraph \u2018
\n
Revenue recognition\u2019
\n
included in the para-
\n
graph \u2018
\n
Significant assumptions\u2019.
\n
\n \n
\n
Revenue recognition - Estimating variable consideration for returns and volume rebates
\n
The Group estimates variable considerations to be included in the transaction price for the sale of goods with rights of
\n
return and volume rebates.
\n
The Group has developed a statistical model for forecasting sales returns. The model uses the historical return data of
\n
each product to come up with expected return percentages. These percentages are applied to determine the expected
\n
value of the variable consideration. Any significant changes in experience as compared to historical return pattern will
\n
impact the expected return percentages estimated by the Group.
\n
The Group\u2019s expected volume rebates are analysed on a per customer basis for contracts that are subject to a single
\n
volume threshold. Determining whether a customer will be likely entitled to rebate will depend on the customer\u2019s histor-
\n
ical rebates entitlement and accumulated purchases to date.
\n
The Group applied the statistical model for estimating expected volume rebates for contracts. The model uses the his-
\n
torical purchasing patterns and rebates entitlement of customers to determine the expected rebate percentages and the
\n
expected value of the variable consideration. Any significant changes in experience as compared to historical purchasing
\n
patterns and rebate entitlements of customers will impact the expected rebate percentages estimated by the Group.
\n
\n \n
\n
xvi.
\n
Revenue and income
\n
\n
\u2022
\n
Cash discount: cash discount is considered as a net of revenue;
\n
\n
\u2022
\n
Volume rebate: volume rebate is calculated on actual basis and accounted balancing the accounts receivable;
\n
\n
Revenue recognition - Estimating variable consideration for returns and volume rebates
\n
The Group estimates variable considerations to be included in the transaction price for the sale of goods with rights of
\n
return and volume rebates.
\n
The Group has developed a statistical model for forecasting sales returns. The model uses the historical return data of
\n
each product to come up with expected return percentages. These percentages are applied to determine the expected
\n
value of the variable consideration. Any significant changes in experience as compared to historical return pattern will
\n
impact the expected return percentages estimated by the Group.
\n
The Group\u2019s expected volume rebates are analysed on a per customer basis for contracts that are subject to a single
\n
volume threshold. Determining whether a customer will be likely entitled to rebate will depend on the customer\u2019s histor-
\n
ical rebates entitlement and accumulated purchases to date.
\n
The Group applied the statistical model for estimating expected volume rebates for contracts. The model uses the his-
\n
torical purchasing patterns and rebates entitlement of customers to determine the expected rebate percentages and the
\n
expected value of the variable consideration. Any significant changes in experience as compared to historical purchasing
\n
patterns and rebate entitlements of customers will impact the expected rebate percentages estimated by the Group.
\n
\n
Deferred tax
\n
Deferred taxes are those that the Group expects to settle or recover based on the temporary differences between the
\n
carrying value of assets and liabilities and their corresponding tax values used for calculating taxable income. They are
\n
recognized using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable tem-
\n
porary differences, whereas deferred tax assets are recognized only if it is probable that there will be future taxable
\n
income against which deductible temporary differences can be used. Deferred tax assets and liabilities are not recognized
\n
if the temporary differences derive from goodwill or the initial recognition (not in business combinations) of other assets
\n
or liabilities in transactions that do not affect the profit (loss) for the year or the taxable income.
\n
In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint
\n
arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the
\n
temporary differences will not reverse in the foreseeable future.
\n
The carrying value of deferred tax assets is reviewed at each reporting date and impaired, if it is no longer probable that
\n
sufficient taxable income exists that can enable recovery of all or part of the assets.
\n
In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in
\n
joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differ-
\n
ences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences
\n
can be utilized.
\n
Deferred taxes are calculated at the tax rate that is expected to be applied when the asset is realized or the liability
\n
extinguished. Deferred taxes are recognized directly in the income statement, except for those related to items recog-
\n
nized directly under equity, in which case the deferred taxes are also recognized under equity.
\n
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off
\n
current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
\n
levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either
\n
\n
to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in
\n
each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recov-
\n
ered.
\n
\n \n
\n \n
Income taxes include all taxes based upon the taxable profits of the Group. Taxes on income are recognized in income
\n
statement except to the extent they relate to items recognized directly in equity or in other comprehensive income, in
\n
which case the related tax effects are recognized directly in equity or in other comprehensive income. Deferred taxes are
\n
calculated on temporary differences between the tax base of an asset or liability and the carrying amounts in the Consol-
\n
idated Financial Statements, Deferred tax assets relating to the carry-forward of unused tax losses are recognized to the
\n
extent it is probable future profits will be available against which they can be utilized. Current and deferred income tax
\n
assets and liabilities are offset when the income taxes are levied by the same taxation authority and where there is a
\n
legally enforceable right of offset. Deferred tax assets and liabilities are measured at the enacted or substantively enacted
\n
tax rates of the relevant tax jurisdictions that are expected to apply to taxable income during the period or periods in
\n
which the temporary differences reverse. Other taxes not based on taxable profits, such as property taxes and taxes on
\n
capital, are included in operating expenses.
\n
\n
xviii.
\n
Earnings per share
\n
The basic earnings per share are calculated by dividing the portion of profit/loss attributable to the Group by the weighted
\n
average of the outstanding shares of the year.
\n
The diluted earnings per share are calculated keeping into account, both as regards the portion of profit/loss attributable
\n
to the Group and the above-mentioned weighted average, the impact deriving from the total subscription/conversion of
\n
all potential shares that may be issued through the exercise of outstanding options.
\n
\n
xix.
\n
Dividends
\n
Dividends are recognised as changes in equity in the year when the Group\u2019s unconditional right to receive payment arises,
\n
that is when the shareholders\u2019 meeting approves the distribution of dividends.
\n
\n
Contingent liabilities
\n
The Group trigger provisions once pending or threatened disputes or legal proceedings are considered as a probable
\n
event, for which there could be an outflow of funds with the amount reasonably estimated. If an outflow of funds be-
\n
comes possible but the amount cannot be estimated, the matter is disclosed in the notes to the Consolidated Financial
\n
Statements. The Group could be subject of legal and tax proceedings from various jurisdictions and for complex issues
\n
therefore eventually monitoring the status of pending legal proceedings consulting with matters\u2019 experts on regular basis.
\n
Due to the uncertainty inherent to in matters, it is difficult to predict the outflow of funds that could result from such
\n
disputes with any certainty.
\n
\n \n
\n
5.
\n
Changes in accounting standards
\n
The accounting policies adopted in the preparation of the Consolidated Financial Statements as of 31 December 2022
\n
are consistent with those followed in the preparation of the Group\u2019s annual consolidated financial statements for the
\n
year ended 31 December 2021, except for the adoption of new standards effective as of 1 January 2022. The Group has
\n
not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
\n
Several amendments apply for the first time in 2022, but do not have an impact on the Consolidated Financial Statements
\n
of the Group.
\n
i.
\n
Summary of the new accounting standards adopted by the Group from 1 January 2022
\n
As from 1 January 2022 the following amendments of accounting standards have become applicable to the Group:
\n
\u2022
\n
Reference to the Conceptual Framework \u2013 Amendments to IFRS 3
\n
.
\n
The amendments replace a reference to a previous version of the IASB\u2019s
\n
Conceptual Framework
\n
with a reference to
\n
the current version issued in March 2018 without significantly changing its requirements. The amendments add an
\n
exception to the recognition principle of IFRS 3
\n
Business Combinations
\n
to avoid the issue of potential \u2018day 2\u2019 gains or
\n
losses arising for liabilities and contingent liabilities that would be within the scope of
\n
IAS 37 Provisions, Contingent
\n
Liabilities and Contingent Assets
\n
or IFRIC 21
\n
Levies
\n
, if incurred separately. The exception requires entities to apply the
\n
criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present
\n
obligation exists at the acquisition date. The amendments also add a new paragraph to IFRS 3 to clarify that contingent
\n
assets do not qualify for recognition at the acquisition date.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
\n \n
\n \n
\n \n
\n
\u2022
\n
Property, Plant and Equipment: Proceeds before Intended Use \u2013 Amendments to IAS 16
\n
.
\n
The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any
\n
proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be
\n
capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling
\n
such items, and the costs of producing those items, in income statement.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
\u2022
\n
IFRS 9 Financial Instruments \u2013 Fees in the \u201910 per cent\u2019 test for derecognition of financial liabilities.
\n
The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified
\n
financial liability are substantially different from the terms of the original financial liability. These fees include only
\n
those paid or received between the borrower and the lender, including fees paid or received by either the borrower
\n
or lender on the other\u2019s behalf. There is no similar amendment proposed for IAS 39
\n
Financial Instruments: Recognition
\n
and Measurement
\n
.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group
\n
.
\n
\u2022
\n
IFRS 1 First-time Adoption of International Financial Reporting Standards \u2013 Subsidiary as a first-time adopter.
\n
The amendment permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure cumulative transla-
\n
tion differences using the amounts reported in the parent\u2019s consolidated financial statements, based on the parent\u2019s
\n
date of transition to IFRS if no adjustments were made for consolidation procedures and for the effects of the business
\n
combination in which the parent acquired the subsidiary. This amendment is also applied to an associate or joint
\n
venture that elects to apply paragraph D16(a) of IFRS 1.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
\u2022
\n
IAS 41 Agriculture \u2013 Taxation in fair value measurements
\n
.
\n
The amendment removes the requirement in paragraph 22 of IAS 41 that entities exclude cash flows for taxation
\n
when measuring the fair value of assets within the scope of IAS 41.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group as it did not have assets in
\n
scope of IAS 41 as at the reporting date.
\n
\u2022
\n
Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013 Amendments to IAS 37
\n
.
\n
The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include
\n
costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation
\n
of costs directly related to contract activities. General and administrative costs do not relate directly to a contract and
\n
are excluded unless they are explicitly chargeable to the counterparty under the contract.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
ii.
\n
Accounting standards, amendments and interpretations issued but not yet effective
\n
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of
\n
the Group\u2019s Consolidated Financial Statements are disclosed below. The Group intends to adopt these new and amended
\n
standards and interpretations, if applicable, when they become effective.
\n
\u2022
\n
Amendments to IAS 1: Classification of Liabilities as Current or Non-current
\n
The IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as
\n
current or non-current by clarifying:
\n
-
\n
What is meant by a right to defer settlement
\n
-
\n
That a right to defer must exist at the end of the reporting period
\n
-
\n
That classification is unaffected by the likelihood that an entity will exercise its deferral right
\n
-
\n
That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a
\n
liability not impact its classification.
\n
These amendments are effective on or after 1 January 2023. The amendments are not expected to have a material
\n
impact on the Group.
\n
\u2022
\n
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2
\n
\n \n
\n \n
\n \n
\n \n
\n
In February 2021 the IASB issued amendments to IAS 1
\n
Presentation of Financial Statements
\n
and IFRS
\n
Practice State-
\n
ment 2: Disclosure of Accounting policies
\n
which require companies to disclose their material accounting policy infor-
\n
mation rather than their significant accounting policies and provide guidance on how to apply the concept of materi-
\n
ality to accounting policy disclosures.
\n
These amendments are effective on or after 1 January 2023. The amendments are not expected to have a material
\n
impact on the Group.
\n
\u2022
\n
Definition of Accounting Estimates - Amendments to IAS 8
\n
In February 2021 the IASB issued amendments to IAS 8
\n
Accounting Policies, Changes in Accounting Estimates and
\n
Errors: Definition of Accounting Estimates
\n
which clarify how companies should distinguish changes in accounting pol-
\n
icies from changes in accounting estimates.
\n
These amendments are effective on or after 1 January 2023. The amendments are not expected to have a material
\n
impact on the Group.
\n
\u2022
\n
IFRS 17 - Insurance Contracts
\n
In May 2017 the IASB issued IFRS 17
\n
Insurance Contracts
\n
, which establishes principles for the recognition, measure-
\n
ment, presentation and disclosure of insurance contracts issued as well as guidance relating to reinsurance contracts
\n
held and investment contracts with discretionary participation features issued. In June 2020 the IASB issued amend-
\n
ments to IFRS 17 aimed at helping companies implement IFRS 17 and make it easier for companies to explain their
\n
financial performance.
\n
The new standard and amendments are effective on or after 1 January 2023. This accounting standard does not apply
\n
to the Group.
\n
\u2022
\n
Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12
\n
In May 2021, the Board issued amendments to IAS 12, which narrow the scope of the initial recognition exception
\n
under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary
\n
differences.
\n
The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative
\n
period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset
\n
(provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all de-
\n
ductible and taxable temporary differences associated with leases and decommissioning obligations.
\n
The Group is currently assessing the impact of the amendments.
\n
\u2022
\n
Lease Liability in a Sale and Leaseback \u2013 Amendments to IFRS 16
\n
In September 2022, the International Accounting Standards Board (IASB) has issued 'Lease Liability in a Sale and Lease-
\n
back (Amendments to IFRS 16)' with amendments that clarify how a seller-lessee subsequently measures sale and
\n
leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale.
\n
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) requires a seller-lessee to subsequently measure
\n
lease liabilities arising from a leaseback in a way that it does not recognise any amount of the gain or loss that relates
\n
to the right of use it retains. The new requirements do not prevent a seller-lessee from recognising in income state-
\n
ment any gain or loss relating to the partial or full termination of a lease.
\n
The new standard and amendments are effective on or after 1 January 2024. The amendments are not expected to
\n
have a material impact on the Group.
\n
\n \n
\n \n
\n
5.
\n
Changes in accounting standards
\n
The accounting policies adopted in the preparation of the Consolidated Financial Statements as of 31 December 2022
\n
are consistent with those followed in the preparation of the Group\u2019s annual consolidated financial statements for the
\n
year ended 31 December 2021, except for the adoption of new standards effective as of 1 January 2022. The Group has
\n
not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
\n
Several amendments apply for the first time in 2022, but do not have an impact on the Consolidated Financial Statements
\n
of the Group.
\n
i.
\n
Summary of the new accounting standards adopted by the Group from 1 January 2022
\n
As from 1 January 2022 the following amendments of accounting standards have become applicable to the Group:
\n
\u2022
\n
Reference to the Conceptual Framework \u2013 Amendments to IFRS 3
\n
.
\n
The amendments replace a reference to a previous version of the IASB\u2019s
\n
Conceptual Framework
\n
with a reference to
\n
the current version issued in March 2018 without significantly changing its requirements. The amendments add an
\n
exception to the recognition principle of IFRS 3
\n
Business Combinations
\n
to avoid the issue of potential \u2018day 2\u2019 gains or
\n
losses arising for liabilities and contingent liabilities that would be within the scope of
\n
IAS 37 Provisions, Contingent
\n
Liabilities and Contingent Assets
\n
or IFRIC 21
\n
Levies
\n
, if incurred separately. The exception requires entities to apply the
\n
criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present
\n
obligation exists at the acquisition date. The amendments also add a new paragraph to IFRS 3 to clarify that contingent
\n
assets do not qualify for recognition at the acquisition date.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
\n \n
\n
\u2022
\n
Property, Plant and Equipment: Proceeds before Intended Use \u2013 Amendments to IAS 16
\n
.
\n
The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any
\n
proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be
\n
capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling
\n
such items, and the costs of producing those items, in income statement.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
\u2022
\n
IFRS 9 Financial Instruments \u2013 Fees in the \u201910 per cent\u2019 test for derecognition of financial liabilities.
\n
The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified
\n
financial liability are substantially different from the terms of the original financial liability. These fees include only
\n
those paid or received between the borrower and the lender, including fees paid or received by either the borrower
\n
or lender on the other\u2019s behalf. There is no similar amendment proposed for IAS 39
\n
Financial Instruments: Recognition
\n
and Measurement
\n
.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group
\n
.
\n
\u2022
\n
IFRS 1 First-time Adoption of International Financial Reporting Standards \u2013 Subsidiary as a first-time adopter.
\n
The amendment permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure cumulative transla-
\n
tion differences using the amounts reported in the parent\u2019s consolidated financial statements, based on the parent\u2019s
\n
date of transition to IFRS if no adjustments were made for consolidation procedures and for the effects of the business
\n
combination in which the parent acquired the subsidiary. This amendment is also applied to an associate or joint
\n
venture that elects to apply paragraph D16(a) of IFRS 1.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
\u2022
\n
IAS 41 Agriculture \u2013 Taxation in fair value measurements
\n
.
\n
The amendment removes the requirement in paragraph 22 of IAS 41 that entities exclude cash flows for taxation
\n
when measuring the fair value of assets within the scope of IAS 41.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group as it did not have assets in
\n
scope of IAS 41 as at the reporting date.
\n
\u2022
\n
Onerous Contracts \u2013 Costs of Fulfilling a Contract \u2013 Amendments to IAS 37
\n
.
\n
The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include
\n
costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation
\n
of costs directly related to contract activities. General and administrative costs do not relate directly to a contract and
\n
are excluded unless they are explicitly chargeable to the counterparty under the contract.
\n
These amendments had no impact on the Consolidated Financial Statements of the Group.
\n
ii.
\n
Accounting standards, amendments and interpretations issued but not yet effective
\n
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of
\n
the Group\u2019s Consolidated Financial Statements are disclosed below. The Group intends to adopt these new and amended
\n
standards and interpretations, if applicable, when they become effective.
\n
\u2022
\n
Amendments to IAS 1: Classification of Liabilities as Current or Non-current
\n
The IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as
\n
current or non-current by clarifying:
\n
-
\n
What is meant by a right to defer settlement
\n
-
\n
That a right to defer must exist at the end of the reporting period
\n
-
\n
That classification is unaffected by the likelihood that an entity will exercise its deferral right
\n
-
\n
That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a
\n
liability not impact its classification.
\n
These amendments are effective on or after 1 January 2023. The amendments are not expected to have a material
\n
impact on the Group.
\n
\u2022
\n
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2
\n
\n \n
\n \n
\n
In February 2021 the IASB issued amendments to IAS 1
\n
Presentation of Financial Statements
\n
and IFRS
\n
Practice State-
\n
ment 2: Disclosure of Accounting policies
\n
which require companies to disclose their material accounting policy infor-
\n
mation rather than their significant accounting policies and provide guidance on how to apply the concept of materi-
\n
ality to accounting policy disclosures.
\n
These amendments are effective on or after 1 January 2023. The amendments are not expected to have a material
\n
impact on the Group.
\n
\u2022
\n
Definition of Accounting Estimates - Amendments to IAS 8
\n
In February 2021 the IASB issued amendments to IAS 8
\n
Accounting Policies, Changes in Accounting Estimates and
\n
Errors: Definition of Accounting Estimates
\n
which clarify how companies should distinguish changes in accounting pol-
\n
icies from changes in accounting estimates.
\n
These amendments are effective on or after 1 January 2023. The amendments are not expected to have a material
\n
impact on the Group.
\n
\u2022
\n
IFRS 17 - Insurance Contracts
\n
In May 2017 the IASB issued IFRS 17
\n
Insurance Contracts
\n
, which establishes principles for the recognition, measure-
\n
ment, presentation and disclosure of insurance contracts issued as well as guidance relating to reinsurance contracts
\n
held and investment contracts with discretionary participation features issued. In June 2020 the IASB issued amend-
\n
ments to IFRS 17 aimed at helping companies implement IFRS 17 and make it easier for companies to explain their
\n
financial performance.
\n
The new standard and amendments are effective on or after 1 January 2023. This accounting standard does not apply
\n
to the Group.
\n
\u2022
\n
Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12
\n
In May 2021, the Board issued amendments to IAS 12, which narrow the scope of the initial recognition exception
\n
under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary
\n
differences.
\n
The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative
\n
period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset
\n
(provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all de-
\n
ductible and taxable temporary differences associated with leases and decommissioning obligations.
\n
The Group is currently assessing the impact of the amendments.
\n
\u2022
\n
Lease Liability in a Sale and Leaseback \u2013 Amendments to IFRS 16
\n
In September 2022, the International Accounting Standards Board (IASB) has issued 'Lease Liability in a Sale and Lease-
\n
back (Amendments to IFRS 16)' with amendments that clarify how a seller-lessee subsequently measures sale and
\n
leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale.
\n
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) requires a seller-lessee to subsequently measure
\n
lease liabilities arising from a leaseback in a way that it does not recognise any amount of the gain or loss that relates
\n
to the right of use it retains. The new requirements do not prevent a seller-lessee from recognising in income state-
\n
ment any gain or loss relating to the partial or full termination of a lease.
\n
The new standard and amendments are effective on or after 1 January 2024. The amendments are not expected to
\n
have a material impact on the Group.
\n
\n \n
\n \n
\n
Note 1.1 \u2013 Revenue and Income
\n
During 2022, the Group recorded revenue of \u20ac 2,378.8 million, compared to \u20ac 1,987.3 million in the previous year, with
\n
an increase of \u20ac 391.5 million (+19.7%).
\n
The increase arises from organic growth of the Group (+9.0%) and from a perimeter variation related to the business
\n
combination with Chromagen group concluded in January 2022.
\n
The Revenue item can be broken down as follows:
\n
Revenue and Income
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Revenue from sales
\n
2,223.7
\n
1,848.0
\n
Revenue from services
\n
140.5
\n
126.9
\n
Other revenue
\n
14.6
\n
12.5
\n
Net revenue
\n
2,378.8
\n
1,987.3
\n
Other revenue and income
\n
42.7
\n
34.1
\n
Total
\n
2,421.5
\n
2,021.5
\n \n
\n \n
\n
\u201cOther revenue and income\u201d totalled \u20ac 42.7 million at 31 December 2022 and \u20ac 34.1 million at 31 December 2021.
\n
\u201cOther revenue and income\u201d is represented by items that do not directly refer to the production activities of the Group
\n
but are all the same connected to the core business.
\n
They included income related to no longer due payables, the gains on the disposal of fixed assets and other income.
\n
At 31 December 2022, they totalled \u20ac 42.7 million, an increase of \u20ac 8.6 million compared to the same period of previous
\n
year, mainly due to contingent gains for differences between accrual made in previous periods and the costs actually
\n
occurred.
\n
\n \n
\n \n \n
\n
Revenue by business line
\n
Thermal Comfort
\n
. Serves the Group's two main business categories, Hot Water and Heating, and represents the Group's
\n
largest division, recording net revenue of \u20ac 2,187.4 million, or 92.0% of total revenue, in 2022 compared to \u20ac 1,807.0
\n
million, or 90.9%, in 2021, up \u20ac 380.4 million or 21.1% (of which 13.6% organic and foreign exchange impact). The Thermal
\n
Comfort division stood out for the steady growth of its European markets and all the key markets of the other geograph-
\n
ical areas.
\n
Components
\n
. Recorded net revenue of \u20ac 95.5 million for 2022, or 4.0% of total net revenue, compared to \u20ac 85.8 million,
\n
or 4.3%, in 2021. The increase in net revenue by \u20ac 9.7 million or 11.3% was driven by the professional business and the
\n
price increase on domestic business.
\n
Burners
\n
. Recorded net revenue of \u20ac 95.9 million for 2022, or 4.0% of total revenue, compared to \u20ac 94.6 million, or 4.8%
\n
of total revenue, for 2021, up \u20ac 1.3 million or 1.4%. The substantial stability is due to the growth in some key markets
\n
such as Germany and Netherlands that balanced the reduction in Russia and China.
\n
\n \n
Net revenue by geographical area
\n
Europe
\n
. Represents the Group's largest market, recording net revenue of \u20ac 1,537 million for 2022, or 64.6% of total
\n
revenue, compared to \u20ac 1,323 million, or 66.5%, in 2021, up \u20ac 214 million or 16.2% (of which 15.8% organic and foreign
\n
exchange impact). The increase was mainly driven by the growth in renewable and high-efficiency products in some im-
\n
portant markets such as Poland, Italy, and others Eastern European markets.
\n
\n \n
\n
Asia, Pacific & MEA
\n
. Represents the second largest market for the Group, recording net revenue of \u20ac 542 million for
\n
2022, or 22.8% of total revenue, compared to \u20ac 385 million, or 19.4%, in 2021, up \u20ac 157 million or 40.6% (of which 7.5%
\n
organic and foreign exchange impact). The organic increase was mainly driven by a good performance on the water
\n
heater market in Indonesia, Vietnam and India.
\n
Americas
\n
. Represents the Group's third largest market and reported net revenue of \u20ac 300 million for 2022, or 12.6% of
\n
total revenue, compared to \u20ac 280 million, or 14.1%, in 2021, up \u20ac 20 million, or 7.4% (of which 6,7% organic and foreign
\n
exchange impact). The increase was mainly due to a good performance on the heating market (US and Canada).
\n
\n
Note 1.1 \u2013 Revenue and Income
\n
During 2022, the Group recorded revenue of \u20ac 2,378.8 million, compared to \u20ac 1,987.3 million in the previous year, with
\n
an increase of \u20ac 391.5 million (+19.7%).
\n
The increase arises from organic growth of the Group (+9.0%) and from a perimeter variation related to the business
\n
combination with Chromagen group concluded in January 2022.
\n
The Revenue item can be broken down as follows:
\n
Revenue and Income
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Revenue from sales
\n
2,223.7
\n
1,848.0
\n
Revenue from services
\n
140.5
\n
126.9
\n
Other revenue
\n
14.6
\n
12.5
\n
Net revenue
\n
2,378.8
\n
1,987.3
\n
Other revenue and income
\n
42.7
\n
34.1
\n
Total
\n
2,421.5
\n
2,021.5
\n \n
\n \n
\n
\u201cOther revenue and income\u201d totalled \u20ac 42.7 million at 31 December 2022 and \u20ac 34.1 million at 31 December 2021.
\n
\u201cOther revenue and income\u201d is represented by items that do not directly refer to the production activities of the Group
\n
but are all the same connected to the core business.
\n
They included income related to no longer due payables, the gains on the disposal of fixed assets and other income.
\n
At 31 December 2022, they totalled \u20ac 42.7 million, an increase of \u20ac 8.6 million compared to the same period of previous
\n
year, mainly due to contingent gains for differences between accrual made in previous periods and the costs actually
\n
occurred.
\n
\n \n
\n \n \n
\n
Revenue by business line
\n
Thermal Comfort
\n
. Serves the Group's two main business categories, Hot Water and Heating, and represents the Group's
\n
largest division, recording net revenue of \u20ac 2,187.4 million, or 92.0% of total revenue, in 2022 compared to \u20ac 1,807.0
\n
million, or 90.9%, in 2021, up \u20ac 380.4 million or 21.1% (of which 13.6% organic and foreign exchange impact). The Thermal
\n
Comfort division stood out for the steady growth of its European markets and all the key markets of the other geograph-
\n
ical areas.
\n
Components
\n
. Recorded net revenue of \u20ac 95.5 million for 2022, or 4.0% of total net revenue, compared to \u20ac 85.8 million,
\n
or 4.3%, in 2021. The increase in net revenue by \u20ac 9.7 million or 11.3% was driven by the professional business and the
\n
price increase on domestic business.
\n
Burners
\n
. Recorded net revenue of \u20ac 95.9 million for 2022, or 4.0% of total revenue, compared to \u20ac 94.6 million, or 4.8%
\n
of total revenue, for 2021, up \u20ac 1.3 million or 1.4%. The substantial stability is due to the growth in some key markets
\n
such as Germany and Netherlands that balanced the reduction in Russia and China.
\n
\n \n
Net revenue by geographical area
\n
Europe
\n
. Represents the Group's largest market, recording net revenue of \u20ac 1,537 million for 2022, or 64.6% of total
\n
revenue, compared to \u20ac 1,323 million, or 66.5%, in 2021, up \u20ac 214 million or 16.2% (of which 15.8% organic and foreign
\n
exchange impact). The increase was mainly driven by the growth in renewable and high-efficiency products in some im-
\n
portant markets such as Poland, Italy, and others Eastern European markets.
\n
\n \n
\n
Asia, Pacific & MEA
\n
. Represents the second largest market for the Group, recording net revenue of \u20ac 542 million for
\n
2022, or 22.8% of total revenue, compared to \u20ac 385 million, or 19.4%, in 2021, up \u20ac 157 million or 40.6% (of which 7.5%
\n
organic and foreign exchange impact). The organic increase was mainly driven by a good performance on the water
\n
heater market in Indonesia, Vietnam and India.
\n
Americas
\n
. Represents the Group's third largest market and reported net revenue of \u20ac 300 million for 2022, or 12.6% of
\n
total revenue, compared to \u20ac 280 million, or 14.1%, in 2021, up \u20ac 20 million, or 7.4% (of which 6,7% organic and foreign
\n
exchange impact). The increase was mainly due to a good performance on the heating market (US and Canada).
\n
\n \n
\n
In accordance with IFRS 15, performance obligations to customers at contract level are presented as contract liabilities.
\n
Contract liabilities include:
\n
\u2022
\n
Rights of Return
\n
\u2022
\n
After-sales service, which include Service maintenance contracts and Service type warranties
\n
31.12.2022
\n
31.12.2021
\n
Up to 1
\n
year
\n
From 1 to
\n
5 years
\n
Over 5
\n
years
\n
Total
\n
Up to 1
\n
year
\n
From 1 to 5
\n
years
\n
Over 5
\n
years
\n
Total
\n
Right of returns
\n
2.7
\n
0.0
\n
0.0
\n
2.7
\n
1.4
\n
0.0
\n
0.0
\n
1.4
\n
After-sales services
\n
39.1
\n
3.7
\n
7.8
\n
50.6
\n
33.2
\n
2.1
\n
7.0
\n
42.3
\n
Total
\n
41.9
\n
3.7
\n
7.8
\n
53.4
\n
34.6
\n
2.1
\n
7.0
\n
43.7
\n
\n \n
\n
The table below presents the opening and closing balances of contract liabilities as well as movements during the years:
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2021
\n
0.0
\n
35.5
\n
35.5
\n
Increase recognized during the period
\n
0.0
\n
85.6
\n
85.6
\n
Revenue recognized during the period
\n
0.0
\n
-82.9
\n
-82.9
\n
Contracts cancelled during the period
\n
0.0
\n
-0.4
\n
-0.4
\n
Net variation invoicing
\n
0.0
\n
4.0
\n
4.0
\n
Other changes to contract balances
\n
1.4
\n
0.5
\n
1.9
\n
Closing balance 31.12.2021
\n
1.4
\n
42.3
\n
43.7
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2022
\n
1.4
\n
42.3
\n
43.7
\n
Increase recognized during the period
\n
0.0
\n
103.7
\n
103.7
\n
Revenue recognized during the period
\n
0.0
\n
-92.7
\n
-92.7
\n
Contracts cancelled during the period
\n
0.0
\n
-2.1
\n
-2.1
\n
Net variation invoicing
\n
0.0
\n
-1.4
\n
-1.4
\n
Other changes to contract balances
\n
1.3
\n
0.9
\n
2.2
\n
Closing balance 31.12.2022
\n
2.7
\n
50.6
\n
53.4
\n
\n \n
\n \n
\n
\u201cOther revenue and income\u201d totalled \u20ac 42.7 million at 31 December 2022 and \u20ac 34.1 million at 31 December 2021.
\n
\u201cOther revenue and income\u201d is represented by items that do not directly refer to the production activities of the Group
\n
but are all the same connected to the core business.
\n
They included income related to no longer due payables, the gains on the disposal of fixed assets and other income.
\n
At 31 December 2022, they totalled \u20ac 42.7 million, an increase of \u20ac 8.6 million compared to the same period of previous
\n
year, mainly due to contingent gains for differences between accrual made in previous periods and the costs actually
\n
occurred.
\n
\n \n
\n
\u201cOther revenue and income\u201d totalled \u20ac 42.7 million at 31 December 2022 and \u20ac 34.1 million at 31 December 2021.
\n
\u201cOther revenue and income\u201d is represented by items that do not directly refer to the production activities of the Group
\n
but are all the same connected to the core business.
\n
They included income related to no longer due payables, the gains on the disposal of fixed assets and other income.
\n
At 31 December 2022, they totalled \u20ac 42.7 million, an increase of \u20ac 8.6 million compared to the same period of previous
\n
year, mainly due to contingent gains for differences between accrual made in previous periods and the costs actually
\n
occurred.
\n
\n \n
\n
Note 1.6 \u2013 Other operating expenses
\n
\u201cOther operating expenses\u201d amounted to \u20ac 30.4 million, versus \u20ac 27.3 million of the same period of the previous year,
\n
and can be detailed as follows:
\n
Other operating expenses
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Non-income tax and other levies
\n
10.8
\n
8.5
\n
Non periodic losses
\n
8.6
\n
8.0
\n
Concession rights and other
\n
2.6
\n
2.9
\n
Office supplies and printing
\n
1.9
\n
2.0
\n
Subsidies and contributions
\n
0.9
\n
0.7
\n
Losses on receivables
\n
0.9
\n
1.6
\n
Losses on assets
\n
0.9
\n
0.4
\n
Other operating expenses
\n
3.9
\n
3.4
\n
Total
\n
30.4
\n
27.3
\n
This item includes all ordinary operating expenses that cannot be recognised under other items and in the \u201cNon periodic
\n
losses\u201d the difference between accruals made in previous periods and the costs actually incurred.
\n
\n \n
\n
Revenue by business line
\n
Thermal Comfort
\n
. Serves the Group's two main business categories, Hot Water and Heating, and represents the Group's
\n
largest division, recording net revenue of \u20ac 2,187.4 million, or 92.0% of total revenue, in 2022 compared to \u20ac 1,807.0
\n
million, or 90.9%, in 2021, up \u20ac 380.4 million or 21.1% (of which 13.6% organic and foreign exchange impact). The Thermal
\n
Comfort division stood out for the steady growth of its European markets and all the key markets of the other geograph-
\n
ical areas.
\n
Components
\n
. Recorded net revenue of \u20ac 95.5 million for 2022, or 4.0% of total net revenue, compared to \u20ac 85.8 million,
\n
or 4.3%, in 2021. The increase in net revenue by \u20ac 9.7 million or 11.3% was driven by the professional business and the
\n
price increase on domestic business.
\n
Burners
\n
. Recorded net revenue of \u20ac 95.9 million for 2022, or 4.0% of total revenue, compared to \u20ac 94.6 million, or 4.8%
\n
of total revenue, for 2021, up \u20ac 1.3 million or 1.4%. The substantial stability is due to the growth in some key markets
\n
such as Germany and Netherlands that balanced the reduction in Russia and China.
\n
\n \n
\n
Note 1.2 \u2013 Raw materials, consumables and goods for resale
\n
At 31 December 2022, the purchase cost of \u201cRaw materials, consumables and goods for resale\u201d amounted to \u20ac 1,243.3
\n
million, increased by \u20ac 255.3 million compared with the same period of the previous year.
\n
The trend in purchases and the change in inventories highlight an increase in the average percentage of raw materials
\n
consumed to revenue, a percentage which, from 44.3% in December 2021, to 48.4%, where with the decrease in prices
\n
for steel, polypropylene, copper, polyurethane, the Group suffers a counter effect with the price increase on electric and
\n
electronic components.
\n
Note 1.3 \u2013 Services
\n
\u201cServices\u201d amounted to \u20ac 481.3 million versus \u20ac 433.1 million at December 2021, increased by \u20ac 48.2 million, and can be
\n
detailed as follows:
\n
Services
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Logistics and transport
\n
158.1
\n
121.7
\n
Sub-contracted work and maintenance
\n
77.3
\n
108.2
\n
Advertising and promotion
\n
41.2
\n
37.4
\n
Technical support
\n
34.1
\n
18.4
\n
Bonuses and commissions
\n
31.7
\n
28.3
\n
Utilities
\n
29.6
\n
20.9
\n
Consulting services
\n
28.6
\n
29.8
\n
Rental and lease expenses
\n
19.8
\n
15.9
\n
Travel expenses
\n
14.8
\n
9.6
\n
Interoffice services
\n
12.5
\n
11.3
\n
Insurance
\n
10.0
\n
7.5
\n
Directors and Statutory Auditors' Fees
\n
7.6
\n
8.1
\n
Other services
\n
16.0
\n
15.8
\n
Total
\n
481.3
\n
433.1
\n
During 2022 the Group\u2019s ongoing growth in the various sectors of Climate Solutions impacted the variable costs con-
\n
nected to sales and production, with an increase mainly in \u201cLogistics and transport\u201d of \u20ac 36.4 million and \u201cUtilities\u201d of \u20ac
\n
8.7 million, both effects are driven by price increases.
\n
The acquired Chromagen Group added service costs for \u20ac 25.1 million.
\n
\n \n
\n \n
\n \n
\n \n
\n
Note 1.4 \u2013 Personnel
\n
A breakdown of personnel costs by nature is shown in the table below:
\n
Personnel
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Wages and salaries
\n
362.5
\n
322.7
\n
Social security costs
\n
77.2
\n
71.5
\n
Provision for Employees severance indemnity
\n
7.2
\n
6.4
\n
Provision for retirement benefits and other funds
\n
-1.0
\n
-0.4
\n
Other personnel costs
\n
13.2
\n
12.1
\n
Total
\n
459.0
\n
412.3
\n
In December 2022, \u201cPersonnel\u201d amounted to \u20ac 459.0 million, up by \u20ac 46.7 million compared with the same period of the
\n
previous year, due to the normal trend in salary inflation (fixed and variable components) in the various countries where
\n
the Group operates, also following the organisational changes and perimeter variation.
\n
\u201cWages and salaries\u201d totalled \u20ac 362.5 million at 31 December 2022 and \u20ac 322.7 million at 31 December 2021.
\n
\u201cProvision for Employees severance indemnity\u201d and \u201cProvision for retirement benefits and other funds\u201d include the net
\n
impact of accruals and releases for the period.
\n \n
\n
At 31 December 2022, the Group\u2019s workforce increased from 7,858 (workforce 2021 restated owing to a different calcu-
\n
lation method used in 2022) at 31 December 2021 to 7,975.
\n
The headcount by category of employee as follow:
\n
Headcount
\n
31.12.2022
\n
31.12.2021
\n
Average
\n
Delta
\n
(number of people)
\n
Managers and white collars
\n
4,059
\n
3,849
\n
3,954
\n
210
\n
Blue collars
\n
3,916
\n
4,009
\n
3,963
\n
-93
\n
Total
\n
7,975
\n
7,858
\n
7,917
\n
117
\n
At 31 December 2022, the number of employees was 7,975 of whom 1,847 were based in Italy, 5,834 were based all
\n
around the world and 294 were based in the Netherlands.
\n
\n \n
\n \n \n
\n \n
\n
Note 1.5 \u2013 Provisions
\n
During 2022, \u201cProvisions\u201d were recognised for \u20ac 14.0 million versus \u20ac 19.7 million in the same period of 2021. In detail,
\n
the provisions were as follow:
\n
Provisions
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Product warranty provision
\n
11.1
\n
10.5
\n
Provision for installation
\n
3.4
\n
3.0
\n
Provision for restructuring
\n
0.6
\n
1.6
\n
Provision for legal disputes
\n
-0.4
\n
2.2
\n
Bad debt provision
\n
-0.6
\n
0.6
\n
Other provisions
\n
-0.1
\n
1.7
\n
Total
\n
14.0
\n
19.7
\n
The total amount is basically in line with the same period of the previous year.
\n
For further details about movements in the period, refer to \u2018Note 2.9 \u2013 Trade Receivables\u2019 for \u2018Bad Debt provision\u2019 and
\n
\u2018Note 3.3 - Non-Current Provisions\u2019.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Note 1.6 \u2013 Other operating expenses
\n
\u201cOther operating expenses\u201d amounted to \u20ac 30.4 million, versus \u20ac 27.3 million of the same period of the previous year,
\n
and can be detailed as follows:
\n
Other operating expenses
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Non-income tax and other levies
\n
10.8
\n
8.5
\n
Non periodic losses
\n
8.6
\n
8.0
\n
Concession rights and other
\n
2.6
\n
2.9
\n
Office supplies and printing
\n
1.9
\n
2.0
\n
Subsidies and contributions
\n
0.9
\n
0.7
\n
Losses on receivables
\n
0.9
\n
1.6
\n
Losses on assets
\n
0.9
\n
0.4
\n
Other operating expenses
\n
3.9
\n
3.4
\n
Total
\n
30.4
\n
27.3
\n
This item includes all ordinary operating expenses that cannot be recognised under other items and in the \u201cNon periodic
\n
losses\u201d the difference between accruals made in previous periods and the costs actually incurred.
\n
\n \n
\n \n
\n \n
\n
Note 1.2 \u2013 Raw materials, consumables and goods for resale
\n
At 31 December 2022, the purchase cost of \u201cRaw materials, consumables and goods for resale\u201d amounted to \u20ac 1,243.3
\n
million, increased by \u20ac 255.3 million compared with the same period of the previous year.
\n
The trend in purchases and the change in inventories highlight an increase in the average percentage of raw materials
\n
consumed to revenue, a percentage which, from 44.3% in December 2021, to 48.4%, where with the decrease in prices
\n
for steel, polypropylene, copper, polyurethane, the Group suffers a counter effect with the price increase on electric and
\n
electronic components.
\n
Note 1.3 \u2013 Services
\n
\u201cServices\u201d amounted to \u20ac 481.3 million versus \u20ac 433.1 million at December 2021, increased by \u20ac 48.2 million, and can be
\n
detailed as follows:
\n
Services
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Logistics and transport
\n
158.1
\n
121.7
\n
Sub-contracted work and maintenance
\n
77.3
\n
108.2
\n
Advertising and promotion
\n
41.2
\n
37.4
\n
Technical support
\n
34.1
\n
18.4
\n
Bonuses and commissions
\n
31.7
\n
28.3
\n
Utilities
\n
29.6
\n
20.9
\n
Consulting services
\n
28.6
\n
29.8
\n
Rental and lease expenses
\n
19.8
\n
15.9
\n
Travel expenses
\n
14.8
\n
9.6
\n
Interoffice services
\n
12.5
\n
11.3
\n
Insurance
\n
10.0
\n
7.5
\n
Directors and Statutory Auditors' Fees
\n
7.6
\n
8.1
\n
Other services
\n
16.0
\n
15.8
\n
Total
\n
481.3
\n
433.1
\n
During 2022 the Group\u2019s ongoing growth in the various sectors of Climate Solutions impacted the variable costs con-
\n
nected to sales and production, with an increase mainly in \u201cLogistics and transport\u201d of \u20ac 36.4 million and \u201cUtilities\u201d of \u20ac
\n
8.7 million, both effects are driven by price increases.
\n
The acquired Chromagen Group added service costs for \u20ac 25.1 million.
\n
\n \n
\n \n
\n
Note 1.4 \u2013 Personnel
\n
A breakdown of personnel costs by nature is shown in the table below:
\n
Personnel
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Wages and salaries
\n
362.5
\n
322.7
\n
Social security costs
\n
77.2
\n
71.5
\n
Provision for Employees severance indemnity
\n
7.2
\n
6.4
\n
Provision for retirement benefits and other funds
\n
-1.0
\n
-0.4
\n
Other personnel costs
\n
13.2
\n
12.1
\n
Total
\n
459.0
\n
412.3
\n
In December 2022, \u201cPersonnel\u201d amounted to \u20ac 459.0 million, up by \u20ac 46.7 million compared with the same period of the
\n
previous year, due to the normal trend in salary inflation (fixed and variable components) in the various countries where
\n
the Group operates, also following the organisational changes and perimeter variation.
\n
\u201cWages and salaries\u201d totalled \u20ac 362.5 million at 31 December 2022 and \u20ac 322.7 million at 31 December 2021.
\n
\u201cProvision for Employees severance indemnity\u201d and \u201cProvision for retirement benefits and other funds\u201d include the net
\n
impact of accruals and releases for the period.
\n \n
\n
At 31 December 2022, the Group\u2019s workforce increased from 7,858 (workforce 2021 restated owing to a different calcu-
\n
lation method used in 2022) at 31 December 2021 to 7,975.
\n
The headcount by category of employee as follow:
\n
Headcount
\n
31.12.2022
\n
31.12.2021
\n
Average
\n
Delta
\n
(number of people)
\n
Managers and white collars
\n
4,059
\n
3,849
\n
3,954
\n
210
\n
Blue collars
\n
3,916
\n
4,009
\n
3,963
\n
-93
\n
Total
\n
7,975
\n
7,858
\n
7,917
\n
117
\n
At 31 December 2022, the number of employees was 7,975 of whom 1,847 were based in Italy, 5,834 were based all
\n
around the world and 294 were based in the Netherlands.
\n
\n \n
\n \n \n
\n \n
\n
Note 1.5 \u2013 Provisions
\n
During 2022, \u201cProvisions\u201d were recognised for \u20ac 14.0 million versus \u20ac 19.7 million in the same period of 2021. In detail,
\n
the provisions were as follow:
\n
Provisions
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Product warranty provision
\n
11.1
\n
10.5
\n
Provision for installation
\n
3.4
\n
3.0
\n
Provision for restructuring
\n
0.6
\n
1.6
\n
Provision for legal disputes
\n
-0.4
\n
2.2
\n
Bad debt provision
\n
-0.6
\n
0.6
\n
Other provisions
\n
-0.1
\n
1.7
\n
Total
\n
14.0
\n
19.7
\n
The total amount is basically in line with the same period of the previous year.
\n
For further details about movements in the period, refer to \u2018Note 2.9 \u2013 Trade Receivables\u2019 for \u2018Bad Debt provision\u2019 and
\n
\u2018Note 3.3 - Non-Current Provisions\u2019.
\n
\n \n
\n \n
\n \n
\n
Note 1.6 \u2013 Other operating expenses
\n
\u201cOther operating expenses\u201d amounted to \u20ac 30.4 million, versus \u20ac 27.3 million of the same period of the previous year,
\n
and can be detailed as follows:
\n
Other operating expenses
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Non-income tax and other levies
\n
10.8
\n
8.5
\n
Non periodic losses
\n
8.6
\n
8.0
\n
Concession rights and other
\n
2.6
\n
2.9
\n
Office supplies and printing
\n
1.9
\n
2.0
\n
Subsidies and contributions
\n
0.9
\n
0.7
\n
Losses on receivables
\n
0.9
\n
1.6
\n
Losses on assets
\n
0.9
\n
0.4
\n
Other operating expenses
\n
3.9
\n
3.4
\n
Total
\n
30.4
\n
27.3
\n
This item includes all ordinary operating expenses that cannot be recognised under other items and in the \u201cNon periodic
\n
losses\u201d the difference between accruals made in previous periods and the costs actually incurred.
\n
\n
Note 1.4 \u2013 Personnel
\n
A breakdown of personnel costs by nature is shown in the table below:
\n
Personnel
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Wages and salaries
\n
362.5
\n
322.7
\n
Social security costs
\n
77.2
\n
71.5
\n
Provision for Employees severance indemnity
\n
7.2
\n
6.4
\n
Provision for retirement benefits and other funds
\n
-1.0
\n
-0.4
\n
Other personnel costs
\n
13.2
\n
12.1
\n
Total
\n
459.0
\n
412.3
\n
In December 2022, \u201cPersonnel\u201d amounted to \u20ac 459.0 million, up by \u20ac 46.7 million compared with the same period of the
\n
previous year, due to the normal trend in salary inflation (fixed and variable components) in the various countries where
\n
the Group operates, also following the organisational changes and perimeter variation.
\n
\u201cWages and salaries\u201d totalled \u20ac 362.5 million at 31 December 2022 and \u20ac 322.7 million at 31 December 2021.
\n
\u201cProvision for Employees severance indemnity\u201d and \u201cProvision for retirement benefits and other funds\u201d include the net
\n
impact of accruals and releases for the period.
\n \n
\n
At 31 December 2022, the Group\u2019s workforce increased from 7,858 (workforce 2021 restated owing to a different calcu-
\n
lation method used in 2022) at 31 December 2021 to 7,975.
\n
The headcount by category of employee as follow:
\n
Headcount
\n
31.12.2022
\n
31.12.2021
\n
Average
\n
Delta
\n
(number of people)
\n
Managers and white collars
\n
4,059
\n
3,849
\n
3,954
\n
210
\n
Blue collars
\n
3,916
\n
4,009
\n
3,963
\n
-93
\n
Total
\n
7,975
\n
7,858
\n
7,917
\n
117
\n
At 31 December 2022, the number of employees was 7,975 of whom 1,847 were based in Italy, 5,834 were based all
\n
around the world and 294 were based in the Netherlands.
\n
\n \n
\n
Note 3.4 \u2013 Post-employment benefits
\n
The Group has two defined benefit plans for employees, the first one is the employee severance indemnity, due by Italian
\n
companies to their employees in compliance with laws in force until 31 December 2015, and other current pension plans
\n
mostly in Switzerland and Germany.
\n
Until 31 December 2006, in Italy, the employee severance indemnity provision (
\n
Trattamento di fine rapporto
\n
, TFR) was
\n
considered a defined benefit plan. The regulation of this provision was amended by Law no. 296 of 27 December 2006
\n
(\u201c2007 Financial Law\u201d) and subsequent Decrees and Regulations issued in the first few months of 2007. Given these
\n
amendments and in particular in reference to companies with at least 50 employees, this is now considered a defined
\n
benefit plan only for the portions of benefits accrued before 1 January 2007 (and not yet paid as at the end of the report-
\n
ing period, while subsequent to this date, it is comparable to a defined contribution plan).
\n
IAS 19 expressly envisages the adoption of the \u201cprojected unit credit method\u201d, which is based on quantifying the actuarial
\n
liability by considering only the service accrued at the evaluation date, in accordance with the actuarial approach of so-
\n
called \u201caccrued benefits\u201d. In particular, in the projected unit credit method, this characteristic is integrated with the
\n
forecast of the salary trend up to the time that the TFR will probably be paid; the consequent liability is then re-propor-
\n
tioned on the basis of the ratio between the years worked up to the assessment period and the total service at the
\n
probable date of payment of the TFR (should the right be already completely accrued at the evaluation date, there will
\n
be then no re-proportioning of the liability).
\n
Since as from 1 January 2007, for employees belonging to companies with at least 50 employees, no amount is any longer
\n
internally provisioned, but the amounts of TFR accrued subsequent to that period are assigned to the Complementary
\n
Pension Fund or to the INPS (Italian National Social Security Institute) Treasury Fund and the company remains solely
\n
responsible for the duty of re-evaluating the amount accrued at 31 December 2006, the actuarial calculation must esti-
\n
mate, in correspondence to every possible event which leads to the payment of TFR to the worker, the associated prob-
\n
ability, the consequent amount paid and the years of service corresponding to the payment date. The latter, in particular,
\n
is a random variable that can take on any value between initial service and the maximum service that the worker can
\n
perform in correspondence with retirement, with probabilities that can be deduced from the economic and demographic
\n
technical bases used in the evaluation.
\n
For the related actuarial assessments, the demographic and economic-financial assumptions set out in the attached table
\n
have been adopted.
\n
The pension funds of the German companies are regulated on a pension system based on three pillars.
\n
The \u201cfirst pillar\u201d (state and obligatory RV-Beitrag) is a defined contribution pension plan, established by the social pension
\n
insurance, based on the pay-as-you-go principle and related to the income limit. It covers employees in the public and
\n
private sector and some categories of self-employed workers and is mainly financed through social security contributions
\n
paid by workers and employers in equal measure and by taxes.
\n
The \u201csecond pillar\u201d (BAV:
\n
Betriebliche Altersvorsorge
\n
) is represented by voluntary supplementary pensions on a pay-as-
\n
you-go basis, and thus with defined benefits falling on both the worker and the company.
\n
The \u201cthird pillar\u201d is a voluntary, private savings plan in funds or insurance companies which is encouraged through tax
\n
incentives and subsidies.
\n
There are different types of BAV pension plans that qualify as defined benefit plans (mainly: BVO 74/79, based on em-
\n
ployees\u2019 pension commitments; BVO 79, based on one-off payments; BASIS Versorgung, based on direct insurance; and
\n
ZUSATZ Versorgung, based on employee pension commitments), and the measurement is split between pensioners, early
\n
leavers, and active employees.
\n
Pension plans have developed differently in the Group\u2019s companies in Germany and there are currently two different
\n
pension plans considered as defined benefits plans:
\n
\u2022
\n
the so-called BVO 74/79 which covers all the people who were working on 1 March 1979 and up to 31 December
\n
1994;
\n
\u2022
\n
the so-called \u201c1995 Pension\u201d which was applied for all employees, including those who benefited from the BVO 74/79,
\n
as from 1 January 1995 to date.
\n
\n \n
\n
For all employees who started to work in the period March 1979-December 1994 a different defined contribution pension
\n
plan (OLS 79) was applied until December 1994.
\n
For the related actuarial assessments, the demographic and economic-financial assumptions set out in the attached table
\n
have been adopted.
\n
The pension funds of the Swiss companies are regulated on the basis on three pillars:
\n
\u2022
\n
Public Pillar (AHV/IV): defined benefits, based on the pay-as-you-go principle, regulated at federal level and managed
\n
by a public fund (AVS-Fund), obligatory and aimed at covering basic needs;
\n
\u2022
\n
Occupational Pillar (BVG): based on the funded principle, regulated at federal level, quasi-obligatory, with the collec-
\n
tive financing principle, but with private cover and management risk;
\n
\u2022
\n
Private Savings: at the discretion of each resident, in various forms (cash, securities, real estate, personal pension
\n
plans, life insurance).
\n
The pension funds set up pursuant to the second pillar and which affect the Group more directly must be legally inde-
\n
pendent from the sponsor company, segregated in terms of equity and independently managed in the legal form of
\n
cooperative foundations or associations registered with a regulatory authority. The administrative bodies of such associ-
\n
ations consist of an equal number of representatives from the sponsor companies and employees with equal voting
\n
rights, are supported by a management consultant recognised by the law and by qualified actuarial experts, and are
\n
subject to supervision by the regional authorities.
\n
The funds are financed through the contribution of the employee\u2019s sponsor company. The sponsor\u2019s contribution must
\n
be at least 50% (obligatory minimum by law) and the contributions vary from pension fund to pension fund.
\n
The contributions and the return on the market of the invested capital contribute to defining the benefits. A guarantee
\n
is envisaged for a minimum nominal return and a minimum interest rate on the amount paid in. Should it be underfunded,
\n
which is not the case of the Group\u2019s pension funds in Switzerland, it is the responsibility of the sponsor company which
\n
is obligated by law to recapitalise within a reasonable timeframe, not exceeding 10 years.
\n
In the current situation of the Group\u2019s pension funds in Switzerland, the investment risks are met by fluctuation reserves
\n
(i.e. by assets which exceed the actuarial liabilities) and the level of actuarial cover is over 100%; therefore, there is
\n
currently no need for recapitalisation measures.
\n
For the related actuarial assessments, the demographic and economic-financial assumptions set out in the attached table
\n
have been adopted.
\n
In relation to the recognition of the Group\u2019s pension funds:
\n
\u2022
\n
current employment-related costs have been recognised in the income statement, under Personnel costs;
\n
\u2022
\n
financial charges on the assumed obligations and the financial gains expected on the plan assets are recognised under
\n
financial income and expense;
\n
\u2022
\n
actuarial gains and losses are recognised in a specific valuation reserve under equity.
\n
The plan assets do not include the Group\u2019s Treasury shares, nor property occupied or used by the Group. The expected
\n
return on plan assets is defined on the basis of the current market conditions.
\n
At December 2022, the remeasurement of net liabilities emerging in the period amounted to a positive \u20ac 12.1 million
\n
against the positive \u20ac 0.9 million of December 2021. This trend was affected mainly by the change in the financial and
\n
demographic assumptions used, especially at the Swiss subsidiaries, compensate by the Asset ceiling booked in Swiss and
\n
Germany companies as shown in the description below. Finally, a Swiss subsidiary recognised a surplus on the pension
\n
fund under \u201cother non-current assets\u201d totalling \u20ac 0.6 million.
\n
This was mainly the result of the trend in rates and the returns on investments.
\n
The item \u201cForeign exchange gains (losses)\u201d shows the differences in exchange rates due to the translation of the Swiss
\n
franc in the consolidation currency.
\n
The following table shows the changes in the provisions for employee benefits that occurred during the period:
\n
\n \n
\n \n
\n
Employee Benefits
\n
Switzerland
\n
Germany
\n
Italy
\n
Other
\n
Total
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
31.12.2022
\n
31.12.2021
\n
31.12.2022
\n
31.12.2021
\n
31.12.2022
\n
31.12.2021
\n
31.12.2022
\n
31.12.2021
\n
Amounts recognised
\n
in the income statement
\n
Current service cost
\n
-5.0
\n
-5.3
\n
-0.1
\n
-0.1
\n
0.0
\n
0.0
\n
-0.9
\n
-0.9
\n
-5.9
\n
-6.3
\n
Past service cost
\n
0.1
\n
0.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.2
\n
0.1
\n
0.7
\n
Financial expense for obliga-
\n
tions
\n
-0.6
\n
-0.2
\n
-0.3
\n
-0.2
\n
-0.1
\n
0.0
\n
-0.4
\n
-0.1
\n
-1.4
\n
-0.6
\n
Financial income on plan as-
\n
sets
\n
0.7
\n
0.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
0.0
\n
0.8
\n
0.3
\n
Net actuarial losses for the
\n
year
\n
3.0
\n
-1.9
\n
6.1
\n
1.8
\n
1.1
\n
0.0
\n
1.1
\n
0.2
\n
11.4
\n
0.1
\n
Curtailment, settlement, plan
\n
amendment
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Other pension cost
\n
0.0
\n
0.0
\n
0.2
\n
0.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.2
\n
0.1
\n
Net periodical cost
\n
-1.7
\n
-6.9
\n
5.9
\n
1.6
\n
1.0
\n
0.0
\n
0.0
\n
-0.5
\n
5.1
\n
-5.8
\n
Group obligations
\n
Current value of defined ben-
\n
efit plans
\n
-184.6
\n
-213.8
\n
-19.4
\n
-26.9
\n
-12.0
\n
-13.9
\n
-11.2
\n
-12.0
\n
-227.2
\n
-266.6
\n
Fair value of plan assets
\n
207.3
\n
232.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
4.4
\n
4.8
\n
211.7
\n
237.1
\n
Total
\n
22.8
\n
18.5
\n
-19.4
\n
-26.9
\n
-12.0
\n
-13.9
\n
-6.8
\n
-7.2
\n
-15.5
\n
-29.5
\n
Unrecognised plan assets
\n
-22.5
\n
-21.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-22.5
\n
-21.7
\n
Unrecognised current and
\n
past service cost
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Unrecognised actuarial gains
\n
and losses
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.3
\n
-3.1
\n
-19.4
\n
-26.9
\n
-12.0
\n
-13.9
\n
-6.8
\n
-7.2
\n
-38.0
\n
-51.1
\n
of which:
\n
Post-employee benefits
\n
-0.3
\n
-3.7
\n
-19.4
\n
-26.9
\n
-12.0
\n
-13.9
\n
-6.8
\n
-7.2
\n
-38.6
\n
-51.7
\n
Other non-current assets
\n
0.6
\n
0.6
\n
0.6
\n
0.6
\n
Changes in obligations dur-
\n
ing the year
\n
BEGINNING OF THE PERIOD
\n
-213.8
\n
-219.8
\n
-26.9
\n
-30.2
\n
-13.9
\n
-15.0
\n
-12.0
\n
-8.2
\n
-266.6
\n
-273.2
\n
Change in the scope
\n
of consolidation
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current service
\n
-5.0
\n
-5.3
\n
-0.1
\n
-0.1
\n
0.0
\n
0.0
\n
-0.9
\n
-0.9
\n
-5.9
\n
-6.3
\n
Past service
\n
0.1
\n
0.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.2
\n
0.1
\n
0.7
\n
Financial expense
\n
-0.6
\n
-0.2
\n
-0.3
\n
-0.2
\n
-0.1
\n
0.0
\n
-0.4
\n
-0.1
\n
-1.4
\n
-0.6
\n
Curtailment, settlement,
\n
plan amendment
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Gains (losses) resulting from
\n
experience
\n
-3.0
\n
-2.6
\n
0.2
\n
0.0
\n
-0.7
\n
-0.2
\n
-0.4
\n
-0.2
\n
-4.0
\n
-3.0
\n
Actuarial gains (losses)
\n
Resulting from changes in
\n
demographic assumptions
\n
0.0
\n
10.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
10.8
\n
Actuarial gains (losses) result-
\n
ing from changes in financial
\n
assumptions
\n
42.1
\n
6.3
\n
5.9
\n
1.8
\n
1.8
\n
0.4
\n
1.7
\n
0.5
\n
51.6
\n
9.0
\n
Foreign exchange gains
\n
(losses)
\n
-10.6
\n
-10.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.2
\n
-0.1
\n
-10.9
\n
-10.5
\n
Paid benefits
\n
10.7
\n
13.4
\n
1.5
\n
1.8
\n
0.9
\n
1.0
\n
0.9
\n
0.8
\n
14.0
\n
17.0
\n
IFRIC
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
0.3
\n
0.1
\n
0.3
\n
Other
\n
-4.5
\n
-6.4
\n
0.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-4.4
\n
-4.3
\n
-10.8
\n
Total change
\n
29.2
\n
6.0
\n
7.4
\n
3.3
\n
1.9
\n
1.1
\n
0.8
\n
-3.8
\n
39.4
\n
6.6
\n
END OF THE PERIOD
\n
-184.6
\n
-213.8
\n
-19.4
\n
-26.9
\n
-12.0
\n
-13.9
\n
-11.2
\n
-11.9
\n
-227.2
\n
-266.6
\n
\n \n
\n \n
\n
Changes in assets during the
\n
year
\n
BEGINNING OF THE PERIOD
\n
232.3
\n
218.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
4.8
\n
0.4
\n
237.1
\n
219.0
\n
Financial income on plan
\n
assets
\n
0.7
\n
0.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
0.0
\n
0.8
\n
0.3
\n
Company\u2019s contributions
\n
5.7
\n
5.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.2
\n
0.2
\n
5.9
\n
5.6
\n
Employees\u2019 contributions
\n
4.5
\n
4.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
0.1
\n
4.6
\n
4.3
\n
Curtailment, settlement,
\n
plan amendment
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Payments
\n
-10.7
\n
-13.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.5
\n
-0.4
\n
-11.2
\n
-13.8
\n
Actuarial gains (losses) from
\n
plan assets
\n
-36.4
\n
5.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.1
\n
0.1
\n
-36.5
\n
5.3
\n
Foreign exchange gains
\n
(losses)
\n
11.4
\n
10.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
11.4
\n
10.1
\n
Asset ceiling
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Other
\n
-0.3
\n
1.9
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
4.4
\n
-0.3
\n
6.4
\n
Total change
\n
-25.0
\n
13.6
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.4
\n
4.4
\n
-25.4
\n
18.1
\n
END OF THE PERIOD
\n
207.3
\n
232.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
4.4
\n
4.8
\n
211.7
\n
237.1
\n
Remeasurements
\n
recognized in OCI
\n
BEGINNING OF THE PERIOD
\n
\u2013
\n
-21.0
\n
-19.0
\n
-10.1
\n
-12.0
\n
-3.9
\n
-4.1
\n
-2.6
\n
-2.9
\n
-37.6
\n
-38.0
\n
Other Comprehensive
\n
Income (OCI)
\n
Other changes
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Actuarial gains (losses) fol-
\n
lowing adoption of IAS 19R
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Actuarial gains (losses)
\n
resulting from changes in
\n
demographic assumptions
\n
0.0
\n
10.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
10.8
\n
Actuarial gains (losses)
\n
resulting from changes in
\n
financial assumptions
\n
42.1
\n
6.3
\n
5.9
\n
1.8
\n
1.8
\n
0.4
\n
1.7
\n
0.5
\n
51.6
\n
9.0
\n
Gains (losses) resulting from
\n
experience
\n
-3.0
\n
-2.6
\n
0.2
\n
0.0
\n
-0.7
\n
-0.2
\n
-0.4
\n
-0.2
\n
-4.0
\n
-3.0
\n
Actuarial gains (losses) from
\n
plan assets
\n
-36.4
\n
5.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.1
\n
0.0
\n
-36.5
\n
5.2
\n
Asset ceiling
\n
0.3
\n
-21.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.3
\n
-21.7
\n
Total change
\n
3.0
\n
-1.9
\n
6.1
\n
1.8
\n
1.1
\n
0.2
\n
1.1
\n
0.3
\n
11.4
\n
0.4
\n
END OF THE PERIOD
\n
-17.9
\n
-21.0
\n
-4.0
\n
-10.1
\n
-2.7
\n
-3.9
\n
-1.5
\n
-2.6
\n
-26.2
\n
-37.6
\n
Plan assets structure
\n
Shares
\n
6.5%
\n
6.5%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
6.5%
\n
6.5%
\n
Securities
\n
14.1%
\n
14.4%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
14.1%
\n
14.4%
\n
Cash
\n
0.2%
\n
0.3%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.2%
\n
0.3%
\n
Other assets
\n
79.3%
\n
78.8%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
79.3%
\n
78.8%
\n
END OF THE PERIOD
\n
100.0%
\n
100.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
100.0%
\n
100.0%
\n
Assumptions used
\n
Discount rate
\n
2.2%
\n
0.3%
\n
3.9%
\n
1.3%
\n
3.3%
\n
0.8%
\n
6.1%
\n
2.0%
\n
Inflation rate
\n
2.0%
\n
0.8%
\n
1.5%
\n
1.5%
\n
3.4%
\n
1.2%
\n
3.0%
\n
2.7%
\n
Future salary raises
\n
2.0%
\n
0.8%
\n
2.0%
\n
2.0%
\n
1.0%
\n
2.2%
\n
4.7%
\n
3.3%
\n
Future pension raises
\n
0.0%
\n
0.0%
\n
1.5%
\n
1.5%
\n
4.1%
\n
2.4%
\n
2.5%
\n
2.0%
\n
\n \n
\n
The liability recognised under the \u201cProvision for employee benefits\u201d, at 31 December 2022, stood at \u20ac 38.6 million, out
\n
of which \u20ac 38.0 million unfunded, with a decrease of \u20ac 13.1 million compared with the net liability of \u20ac 51.7 million at 31
\n
December 2021.
\n
A quantitative sensitivity analysis of the significant assumptions used at 31 December 2022 is provided below. Specifically,
\n
it shows the effects on the final net obligation arising from a positive or negative percentage change in the key assumption
\n
used.
\n
Switzerland
\n
Germany
\n
Italy
\n
Other
\n
Total
\n
+0.5%
\n
-0.5%
\n
+0.5%
\n
-0.5%
\n
+0.5%
\n
-0.5%
\n
+0.5%
\n
-0.5%
\n
+0.5%
\n
-0.5%
\n
Discount rate
\n
-5.7%
\n
6.4%
\n
-4.4%
\n
4.8%
\n
-3.3%
\n
3.7%
\n
-2.6%
\n
2.7%
\n
-5.3%
\n
5.9%
\n
Future salary
\n
0.8%
\n
-0.8%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.7%
\n
-0.6%
\n
0.7%
\n
-0.7%
\n
Future pension
\n
3.6%
\n
0.0%
\n
4.4%
\n
-4.1%
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
3.3%
\n
-0.4%
\n
Future inflation rate
\n
0.0%
\n
0.0%
\n
0.0%
\n
0.0%
\n
2.0%
\n
-2.1%
\n
0.1%
\n
-0.1%
\n
0.1%
\n
-0.1%
\n
The sensitivity analysis shown above is based on a method involving extrapolation of the impact on the net obligation for
\n
defined benefit plans of reasonable changes to the key assumptions made at the end of the financial year.
\n
The following payments are the expected contributions that will be made in future years to provide for the obligations of
\n
the defined benefit plans.
\n
Switzerland
\n
Germany
\n
Italy
\n
Other
\n
Total
\n
Within 12 months
\n
-11.6
\n
-1.5
\n
-1.1
\n
-0.5
\n
-14.6
\n
From 1 to 5 years
\n
-61.9
\n
-5.5
\n
-3.0
\n
-2.8
\n
-73.2
\n
From 5 to 10 years
\n
-62.3
\n
-6.0
\n
-5.9
\n
-5.8
\n
-80.0
\n
Total
\n
-135.8
\n
-13.0
\n
-10.0
\n
-9.1
\n
-167.8
\n
Average plan duration (years)
\n
12.3
\n
13.8
\n
10.8
\n
9.1
\n
11.5
\n
\n
At 31 December 2022, the Group\u2019s workforce increased from 7,858 (workforce 2021 restated owing to a different calcu-
\n
lation method used in 2022) at 31 December 2021 to 7,975.
\n
The headcount by category of employee as follow:
\n
Headcount
\n
31.12.2022
\n
31.12.2021
\n
Average
\n
Delta
\n
(number of people)
\n
Managers and white collars
\n
4,059
\n
3,849
\n
3,954
\n
210
\n
Blue collars
\n
3,916
\n
4,009
\n
3,963
\n
-93
\n
Total
\n
7,975
\n
7,858
\n
7,917
\n
117
\n
At 31 December 2022, the number of employees was 7,975 of whom 1,847 were based in Italy, 5,834 were based all
\n
around the world and 294 were based in the Netherlands.
\n
\n \n
\n
Note 1.5 \u2013 Provisions
\n
During 2022, \u201cProvisions\u201d were recognised for \u20ac 14.0 million versus \u20ac 19.7 million in the same period of 2021. In detail,
\n
the provisions were as follow:
\n
Provisions
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Product warranty provision
\n
11.1
\n
10.5
\n
Provision for installation
\n
3.4
\n
3.0
\n
Provision for restructuring
\n
0.6
\n
1.6
\n
Provision for legal disputes
\n
-0.4
\n
2.2
\n
Bad debt provision
\n
-0.6
\n
0.6
\n
Other provisions
\n
-0.1
\n
1.7
\n
Total
\n
14.0
\n
19.7
\n
The total amount is basically in line with the same period of the previous year.
\n
For further details about movements in the period, refer to \u2018Note 2.9 \u2013 Trade Receivables\u2019 for \u2018Bad Debt provision\u2019 and
\n
\u2018Note 3.3 - Non-Current Provisions\u2019.
\n
\n \n
\n \n
\n \n
\n
The bad debt provision of \u20ac 17.0 million shows a net decrease by \u20ac 2.0 million compared with 31 December 2021. The
\n
decrease is partly attributable to the utilization for ending with a loss of non-performing and non-recoverable items and
\n
partly attributable to the reduction of credit risk evaluation. For Trade Receivables, the Group applies two approaches in
\n
the calculation of expected losses. The Group applies a matrix-based model. The Policy defines a percentage of statistical
\n
devaluation based on the division of trade receivables into clusters of ageing and country risk. For companies with a credit
\n
insurance contract, percentages applied on the category insured customers is reduced by approximately half of it. In the
\n
same perimeter, for a percentage of 31% in terms of newly recalculated bad debt fund, the Group is applying a new
\n
impairment criteria based on the probability of default (PD) obtained from external sources and historical loss rates.
\n
A specific fund is provided for legal and specific devaluation by single clients\u2019 situation and their economic environment.
\n
At 31 December 2022, the provision was deemed to be appropriate for the estimated losses from unsecured or disputed
\n
receivables.
\n
Following are the changes in the bad debt provision:
\n
Bad debt provision
\n
Short-term
\n
Medium/
\n
Total
\n
(in \u20ac million)
\n
long-term
\n
As at 31.12.2021
\n
13.0
\n
6.0
\n
19.0
\n
Perimeter variation
\n
1.4
\n
0.0
\n
1.4
\n
Increases
\n
1.2
\n
0.3
\n
1.6
\n
Decreases
\n
-0.9
\n
-1.7
\n
-2.6
\n
Release
\n
-2.0
\n
-0.3
\n
-2.2
\n
Exchange rate effect
\n
0.0
\n
0.0
\n
0.0
\n
Other
\n
-0.5
\n
0.4
\n
-0.1
\n
Total changes
\n
-0.7
\n
-1.3
\n
-1.9
\n
As at 31.12.2022
\n
12.3
\n
4.7
\n
17.0
\n
\n \n
\n \n
\n \n
\n
Note 3.3 \u2013 Non-current provisions
\n
Current and non-current \u201cProvisions for risks and charges\u201d totalled \u20ac 95.8 million, up by \u20ac 5.4 million compared with the
\n
previous year.
\n
The following table shows the composition of this item and the changes occurring during the year:
\n
\n \n
\n \n
\n \n
\n
Non-current
\n
and current provisions
\n
Agent
\n
supplementary
\n
indemnity provi-
\n
sion
\n
Product
\n
warranty
\n
provision
\n
First
\n
installation
\n
provisions
\n
Other
\n
provisions
\n
Total
\n
(in \u20ac million)
\n
As at 31.12.2021
\n
2.9
\n
57.0
\n
7.0
\n
23.5
\n
90.4
\n
of which:
\n
Current
\n
0.0
\n
15.9
\n
2.3
\n
15.3
\n
33.5
\n
Non-current
\n
2.9
\n
41.1
\n
4.7
\n
8.1
\n
56.9
\n
Perimeter variation
\n
0.0
\n
1.5
\n
0.0
\n
0.0
\n
1.5
\n
Increases
\n
0.2
\n
18.9
\n
3.5
\n
4.1
\n
26.6
\n
Decreases
\n
-0.2
\n
-5.3
\n
-2.9
\n
-4.2
\n
-12.6
\n
Releases
\n
-0.1
\n
-7.8
\n
0.0
\n
-4.0
\n
-11.9
\n
Other
\n
0.1
\n
0.9
\n
-0.1
\n
1.1
\n
1.9
\n
Total changes
\n
-0.1
\n
8.1
\n
0.4
\n
-3.0
\n
5.4
\n
As at 31.12.2022
\n
2.8
\n
65.1
\n
7.5
\n
20.4
\n
95.8
\n
of which:
\n
Current
\n
0.0
\n
21.2
\n
2.4
\n
12.7
\n
36.2
\n
Non-current
\n
2.8
\n
43.9
\n
5.1
\n
7.8
\n
59.6
\n
Details of and changes in \u201cother provisions\u201d are the following:
\n
Other provisions
\n
Legal disputes
\n
provision
\n
Restructuring
\n
provision
\n
Other risk
\n
provision
\n
Total
\n
(in \u20ac million)
\n
As at 31.12.2021
\n
6.9
\n
2.0
\n
14.6
\n
23.5
\n
of which:
\n
Current
\n
5.7
\n
1.4
\n
8.3
\n
15.3
\n
Non-current
\n
1.3
\n
0.6
\n
6.3
\n
8.1
\n
Increases
\n
0.3
\n
1.5
\n
2.3
\n
4.1
\n
Decreases
\n
-1.0
\n
-1.0
\n
-2.2
\n
-4.2
\n
Releases
\n
-0.7
\n
-0.9
\n
-2.4
\n
-4.0
\n
Other
\n
0.1
\n
0.2
\n
0.8
\n
1.1
\n
Total changes
\n
-1.4
\n
-0.1
\n
-1.6
\n
-3.0
\n
As at 31.12.2022
\n
5.5
\n
1.9
\n
13.0
\n
20.4
\n
of which:
\n
Current
\n
5.1
\n
1.9
\n
5.7
\n
12.7
\n
Non-current
\n
0.5
\n
0.0
\n
7.3
\n
7.8
\n
\u201cCurrent provisions for risks and charges\u201d amounted to \u20ac 36.2 million versus \u20ac 33.5 million at 31 December 2021, whereas
\n
\u201cNon-current provisions for risks and charges\u201d amounted to \u20ac 59.6 million versus \u20ac 56.9 million in the previous year.
\n
More specifically, the \u201cAgent supplementary indemnity provision\u201d recognises the accruals for covering indemnities that
\n
may be due to agents on their employment termination. The provision shows a limited decrease of \u20ac 0.1 million compared
\n
to the previous year.
\n
The \u201cProduct warranty provision\u201d, which represents estimated costs to be borne for technical support of products sold
\n
under warranty, is appropriate in order to hedge the related risk.
\n
The method used to determine this provision is based on historical/statistical data concerning warranty work performed,
\n
costs incurred for such work and products sold on the market which are still under warranty at the evaluation date.
\n
The provision had a net \u20ac 8.1 million increase mainly due to increases and decreases recognised in the period related to
\n
normal management activities of the warranty on manufactured and sold products.
\n
The \u201cFirst installation provision\u201d represents the estimated expense that the Group must bear for interventions of this
\n
type on products. This has not substantially changed compared with December 2021.
\n
The item \u201cOther provisions\u201d includes estimated future charges for corporate restructuring, pending legal disputes and
\n
other risks that it was deemed necessary to cover with appropriate provisions which were estimated based on the avail-
\n
able information.
\n
This has not substantially changed compared with December 2021.
\n
\n \n
\n \n
\n \n
\n
Note 3.10 \u2013 Current provisions
\n
This item amounts to \u20ac 36.2 million and is described in the note \u20183.3 - Non-current provisions for risks and charges\u2019, to
\n
which reference should be made.
\n
\n \n
\n \n
\n
Overdue financial assets
\n
The instrument used for the classification and monitoring of credit is ageing, according to which the accounts payables
\n
are divided by their expiry dates, starting from the most recent (1-30 days) to the oldest (beyond 120 days).
\n
The amount of receivables past-due within 60 days is \u20ac 26 million (versus \u20ac 19.6 million at December 2021) whereas the
\n
amount of receivables past-due beyond 60 days is \u20ac 16.2 million (versus \u20ac 13.8 million at December 2021).
\n
For the purposes of representing trade receivables for issued invoices by past-due ranges, the following table is provided:
\n
Overdue ageing
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Overdue 0-30
\n
19.3
\n
5.1%
\n
14.2
\n
6.0%
\n
Overdue 31-60
\n
6.7
\n
2.2%
\n
5.4
\n
2.0%
\n
Overdue 61-120
\n
3.9
\n
1.2%
\n
1.8
\n
1.0%
\n
Due after 120 and legal
\n
12.3
\n
4.0%
\n
12.0
\n
4.0%
\n
The credit policy defines the depreciation grid for the statistical part differentiating percentage by aging and country risk
\n
class where the trade receivable amount is allocated.
\n
The current (not overdue) receivables amounted to \u20ac 266.2 million. Also these amounts are allocated to their country
\n
risk class and subject to depreciation according to the assigned percentage of devaluation. The related provision for bad
\n
debt amounted to \u20ac 3.2 million.
\n
For Companies with a credit insurance contract, percentages applied on the category insured customers will be lower by
\n
60% up to overdue below 180 days, while over 180 days the percentages remain the same.
\n
As at 31 December 2022 the Group did not measure trade receivables at amortized cost because there are no trade
\n
receivables with maturities greater than one year.
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Depreciation grid
\n
Trade receivables aging
\n
Country risk A
\n
Country risk B
\n
Country risk C
\n
Country risk D
\n
Overdue > 360 days
\n
70%
\n
80%
\n
90%
\n
100%
\n
Overdue 271- 360
\n
50%
\n
60%
\n
70%
\n
90%
\n
Overdue 181- 270
\n
35%
\n
40%
\n
50%
\n
70%
\n
Overdue 121-180
\n
20%
\n
25%
\n
35%
\n
50%
\n
Overdue 91-120
\n
12.5%
\n
15%
\n
20%
\n
30%
\n
Overdue 61-90
\n
7.5%
\n
10%
\n
12.5%
\n
20%
\n
Overdue 31-60
\n
2.5%
\n
5%
\n
7.5%
\n
10%
\n
Overdue 0-30
\n
1.25%
\n
1.5%
\n
2.5%
\n
5%
\n
Current (not overdue)
\n
0.5%
\n
0.75%
\n
1%
\n
1.5%
\n
Following is the summary of the specific and simplified ECLs assessments used to determine the bad debt provision:
\n
Analysis of bad debt provision
\n
31.12.2022
\n
31.12.2021
\n
Total receivables
\n
Gross
\n
325.4
\n
267.3
\n
Provision
\n
17.0
\n
19.0
\n
Net
\n
308.4
\n
248.3
\n
Receivables impaired on a specific basis
\n
Gross
\n
5.2
\n
6.7
\n
Provision
\n
4.7
\n
6.0
\n
Net
\n
0.5
\n
0.7
\n
Receivables impaired on a simplified ECLs
\n
Gross
\n
320.2
\n
260.6
\n
Provision
\n
12.3
\n
13.0
\n
Net
\n
307.9
\n
247.6
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Note 1.5 \u2013 Provisions
\n
During 2022, \u201cProvisions\u201d were recognised for \u20ac 14.0 million versus \u20ac 19.7 million in the same period of 2021. In detail,
\n
the provisions were as follow:
\n
Provisions
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Product warranty provision
\n
11.1
\n
10.5
\n
Provision for installation
\n
3.4
\n
3.0
\n
Provision for restructuring
\n
0.6
\n
1.6
\n
Provision for legal disputes
\n
-0.4
\n
2.2
\n
Bad debt provision
\n
-0.6
\n
0.6
\n
Other provisions
\n
-0.1
\n
1.7
\n
Total
\n
14.0
\n
19.7
\n
The total amount is basically in line with the same period of the previous year.
\n
For further details about movements in the period, refer to \u2018Note 2.9 \u2013 Trade Receivables\u2019 for \u2018Bad Debt provision\u2019 and
\n
\u2018Note 3.3 - Non-Current Provisions\u2019.
\n
\n \n
\n
The bad debt provision of \u20ac 17.0 million shows a net decrease by \u20ac 2.0 million compared with 31 December 2021. The
\n
decrease is partly attributable to the utilization for ending with a loss of non-performing and non-recoverable items and
\n
partly attributable to the reduction of credit risk evaluation. For Trade Receivables, the Group applies two approaches in
\n
the calculation of expected losses. The Group applies a matrix-based model. The Policy defines a percentage of statistical
\n
devaluation based on the division of trade receivables into clusters of ageing and country risk. For companies with a credit
\n
insurance contract, percentages applied on the category insured customers is reduced by approximately half of it. In the
\n
same perimeter, for a percentage of 31% in terms of newly recalculated bad debt fund, the Group is applying a new
\n
impairment criteria based on the probability of default (PD) obtained from external sources and historical loss rates.
\n
A specific fund is provided for legal and specific devaluation by single clients\u2019 situation and their economic environment.
\n
At 31 December 2022, the provision was deemed to be appropriate for the estimated losses from unsecured or disputed
\n
receivables.
\n
Following are the changes in the bad debt provision:
\n
Bad debt provision
\n
Short-term
\n
Medium/
\n
Total
\n
(in \u20ac million)
\n
long-term
\n
As at 31.12.2021
\n
13.0
\n
6.0
\n
19.0
\n
Perimeter variation
\n
1.4
\n
0.0
\n
1.4
\n
Increases
\n
1.2
\n
0.3
\n
1.6
\n
Decreases
\n
-0.9
\n
-1.7
\n
-2.6
\n
Release
\n
-2.0
\n
-0.3
\n
-2.2
\n
Exchange rate effect
\n
0.0
\n
0.0
\n
0.0
\n
Other
\n
-0.5
\n
0.4
\n
-0.1
\n
Total changes
\n
-0.7
\n
-1.3
\n
-1.9
\n
As at 31.12.2022
\n
12.3
\n
4.7
\n
17.0
\n
\n \n
\n
Note 3.3 \u2013 Non-current provisions
\n
Current and non-current \u201cProvisions for risks and charges\u201d totalled \u20ac 95.8 million, up by \u20ac 5.4 million compared with the
\n
previous year.
\n
The following table shows the composition of this item and the changes occurring during the year:
\n
\n
Non-current
\n
and current provisions
\n
Agent
\n
supplementary
\n
indemnity provi-
\n
sion
\n
Product
\n
warranty
\n
provision
\n
First
\n
installation
\n
provisions
\n
Other
\n
provisions
\n
Total
\n
(in \u20ac million)
\n
As at 31.12.2021
\n
2.9
\n
57.0
\n
7.0
\n
23.5
\n
90.4
\n
of which:
\n
Current
\n
0.0
\n
15.9
\n
2.3
\n
15.3
\n
33.5
\n
Non-current
\n
2.9
\n
41.1
\n
4.7
\n
8.1
\n
56.9
\n
Perimeter variation
\n
0.0
\n
1.5
\n
0.0
\n
0.0
\n
1.5
\n
Increases
\n
0.2
\n
18.9
\n
3.5
\n
4.1
\n
26.6
\n
Decreases
\n
-0.2
\n
-5.3
\n
-2.9
\n
-4.2
\n
-12.6
\n
Releases
\n
-0.1
\n
-7.8
\n
0.0
\n
-4.0
\n
-11.9
\n
Other
\n
0.1
\n
0.9
\n
-0.1
\n
1.1
\n
1.9
\n
Total changes
\n
-0.1
\n
8.1
\n
0.4
\n
-3.0
\n
5.4
\n
As at 31.12.2022
\n
2.8
\n
65.1
\n
7.5
\n
20.4
\n
95.8
\n
of which:
\n
Current
\n
0.0
\n
21.2
\n
2.4
\n
12.7
\n
36.2
\n
Non-current
\n
2.8
\n
43.9
\n
5.1
\n
7.8
\n
59.6
\n
Details of and changes in \u201cother provisions\u201d are the following:
\n
Other provisions
\n
Legal disputes
\n
provision
\n
Restructuring
\n
provision
\n
Other risk
\n
provision
\n
Total
\n
(in \u20ac million)
\n
As at 31.12.2021
\n
6.9
\n
2.0
\n
14.6
\n
23.5
\n
of which:
\n
Current
\n
5.7
\n
1.4
\n
8.3
\n
15.3
\n
Non-current
\n
1.3
\n
0.6
\n
6.3
\n
8.1
\n
Increases
\n
0.3
\n
1.5
\n
2.3
\n
4.1
\n
Decreases
\n
-1.0
\n
-1.0
\n
-2.2
\n
-4.2
\n
Releases
\n
-0.7
\n
-0.9
\n
-2.4
\n
-4.0
\n
Other
\n
0.1
\n
0.2
\n
0.8
\n
1.1
\n
Total changes
\n
-1.4
\n
-0.1
\n
-1.6
\n
-3.0
\n
As at 31.12.2022
\n
5.5
\n
1.9
\n
13.0
\n
20.4
\n
of which:
\n
Current
\n
5.1
\n
1.9
\n
5.7
\n
12.7
\n
Non-current
\n
0.5
\n
0.0
\n
7.3
\n
7.8
\n
\u201cCurrent provisions for risks and charges\u201d amounted to \u20ac 36.2 million versus \u20ac 33.5 million at 31 December 2021, whereas
\n
\u201cNon-current provisions for risks and charges\u201d amounted to \u20ac 59.6 million versus \u20ac 56.9 million in the previous year.
\n
More specifically, the \u201cAgent supplementary indemnity provision\u201d recognises the accruals for covering indemnities that
\n
may be due to agents on their employment termination. The provision shows a limited decrease of \u20ac 0.1 million compared
\n
to the previous year.
\n
The \u201cProduct warranty provision\u201d, which represents estimated costs to be borne for technical support of products sold
\n
under warranty, is appropriate in order to hedge the related risk.
\n
The method used to determine this provision is based on historical/statistical data concerning warranty work performed,
\n
costs incurred for such work and products sold on the market which are still under warranty at the evaluation date.
\n
The provision had a net \u20ac 8.1 million increase mainly due to increases and decreases recognised in the period related to
\n
normal management activities of the warranty on manufactured and sold products.
\n
The \u201cFirst installation provision\u201d represents the estimated expense that the Group must bear for interventions of this
\n
type on products. This has not substantially changed compared with December 2021.
\n
The item \u201cOther provisions\u201d includes estimated future charges for corporate restructuring, pending legal disputes and
\n
other risks that it was deemed necessary to cover with appropriate provisions which were estimated based on the avail-
\n
able information.
\n
This has not substantially changed compared with December 2021.
\n
\n
Note 3.10 \u2013 Current provisions
\n
This item amounts to \u20ac 36.2 million and is described in the note \u20183.3 - Non-current provisions for risks and charges\u2019, to
\n
which reference should be made.
\n
\n
Overdue financial assets
\n
The instrument used for the classification and monitoring of credit is ageing, according to which the accounts payables
\n
are divided by their expiry dates, starting from the most recent (1-30 days) to the oldest (beyond 120 days).
\n
The amount of receivables past-due within 60 days is \u20ac 26 million (versus \u20ac 19.6 million at December 2021) whereas the
\n
amount of receivables past-due beyond 60 days is \u20ac 16.2 million (versus \u20ac 13.8 million at December 2021).
\n
For the purposes of representing trade receivables for issued invoices by past-due ranges, the following table is provided:
\n
Overdue ageing
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Overdue 0-30
\n
19.3
\n
5.1%
\n
14.2
\n
6.0%
\n
Overdue 31-60
\n
6.7
\n
2.2%
\n
5.4
\n
2.0%
\n
Overdue 61-120
\n
3.9
\n
1.2%
\n
1.8
\n
1.0%
\n
Due after 120 and legal
\n
12.3
\n
4.0%
\n
12.0
\n
4.0%
\n
The credit policy defines the depreciation grid for the statistical part differentiating percentage by aging and country risk
\n
class where the trade receivable amount is allocated.
\n
The current (not overdue) receivables amounted to \u20ac 266.2 million. Also these amounts are allocated to their country
\n
risk class and subject to depreciation according to the assigned percentage of devaluation. The related provision for bad
\n
debt amounted to \u20ac 3.2 million.
\n
For Companies with a credit insurance contract, percentages applied on the category insured customers will be lower by
\n
60% up to overdue below 180 days, while over 180 days the percentages remain the same.
\n
As at 31 December 2022 the Group did not measure trade receivables at amortized cost because there are no trade
\n
receivables with maturities greater than one year.
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Depreciation grid
\n
Trade receivables aging
\n
Country risk A
\n
Country risk B
\n
Country risk C
\n
Country risk D
\n
Overdue > 360 days
\n
70%
\n
80%
\n
90%
\n
100%
\n
Overdue 271- 360
\n
50%
\n
60%
\n
70%
\n
90%
\n
Overdue 181- 270
\n
35%
\n
40%
\n
50%
\n
70%
\n
Overdue 121-180
\n
20%
\n
25%
\n
35%
\n
50%
\n
Overdue 91-120
\n
12.5%
\n
15%
\n
20%
\n
30%
\n
Overdue 61-90
\n
7.5%
\n
10%
\n
12.5%
\n
20%
\n
Overdue 31-60
\n
2.5%
\n
5%
\n
7.5%
\n
10%
\n
Overdue 0-30
\n
1.25%
\n
1.5%
\n
2.5%
\n
5%
\n
Current (not overdue)
\n
0.5%
\n
0.75%
\n
1%
\n
1.5%
\n
Following is the summary of the specific and simplified ECLs assessments used to determine the bad debt provision:
\n
Analysis of bad debt provision
\n
31.12.2022
\n
31.12.2021
\n
Total receivables
\n
Gross
\n
325.4
\n
267.3
\n
Provision
\n
17.0
\n
19.0
\n
Net
\n
308.4
\n
248.3
\n
Receivables impaired on a specific basis
\n
Gross
\n
5.2
\n
6.7
\n
Provision
\n
4.7
\n
6.0
\n
Net
\n
0.5
\n
0.7
\n
Receivables impaired on a simplified ECLs
\n
Gross
\n
320.2
\n
260.6
\n
Provision
\n
12.3
\n
13.0
\n
Net
\n
307.9
\n
247.6
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Note 1.6 \u2013 Other operating expenses
\n
\u201cOther operating expenses\u201d amounted to \u20ac 30.4 million, versus \u20ac 27.3 million of the same period of the previous year,
\n
and can be detailed as follows:
\n
Other operating expenses
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Non-income tax and other levies
\n
10.8
\n
8.5
\n
Non periodic losses
\n
8.6
\n
8.0
\n
Concession rights and other
\n
2.6
\n
2.9
\n
Office supplies and printing
\n
1.9
\n
2.0
\n
Subsidies and contributions
\n
0.9
\n
0.7
\n
Losses on receivables
\n
0.9
\n
1.6
\n
Losses on assets
\n
0.9
\n
0.4
\n
Other operating expenses
\n
3.9
\n
3.4
\n
Total
\n
30.4
\n
27.3
\n
This item includes all ordinary operating expenses that cannot be recognised under other items and in the \u201cNon periodic
\n
losses\u201d the difference between accruals made in previous periods and the costs actually incurred.
\n
\n \n
\n \n
\n
Note 1.7 \u2013 Operating profit
\n
In December 2022 \u201cOperating profit\u201d, amounted to \u20ac 193.7 million compared to \u20ac 171.2 million as of December 2021.
\n
The significant increase is explained by the above detailed variances.
\n
\n \n
\n \n
\n \n
\n
Note 1.8 \u2013 Financial income
\n
In 2022, \u201cFinancial income\u201d amounted to \u20ac 6.0 million, which is a better result than the previous year, when the same
\n
item amounted to \u20ac 4.5 million. The item is as follows:
\n
Financial income
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Interest income from bank
\n
2.9
\n
1.6
\n
State Green Programmes
\n
2.2
\n
2.3
\n
Employee benefits
\n
0.6
\n
0.3
\n
Other financial income
\n
0.3
\n
0.2
\n
Total
\n
6.0
\n
4.5
\n
The year-on-year change was largely attributable to the item \u201cInterest income from bank\u201d, resulting from an increase in
\n
short-term liquidity investment. The other items making up the total were largely unchanged.
\n
\n \n
\n \n \n
\n \n
\n
Note 1.9 \u2013 Financial expense
\n
\u201cFinancial Expense\u201d amounted to \u20ac 15.7 million at the end December 2022 versus \u20ac 12.4 million realized in 2021. This
\n
line item can be detailed as follows:
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Financial expense
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Interest and other expenses due to bank
\n
10.3
\n
7.7
\n
Leases
\n
1.9
\n
1.4
\n
Put and Call
\n
1.4
\n
2.4
\n
Employee benefits
\n
1.4
\n
0.6
\n
Other financial expense
\n
0.7
\n
0.3
\n
Total
\n
15.7
\n
12.4
\n
Compared to the previous year, \u201cFinancial Expense\u201d increased by \u20ac 3.3 million, mainly due to \u201cInterest and other expenses
\n
due to bank\u201d which are also reflecting the impact generated by the new debt loan signed in 2022.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Note 1.8 \u2013 Financial income
\n
In 2022, \u201cFinancial income\u201d amounted to \u20ac 6.0 million, which is a better result than the previous year, when the same
\n
item amounted to \u20ac 4.5 million. The item is as follows:
\n
Financial income
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Interest income from bank
\n
2.9
\n
1.6
\n
State Green Programmes
\n
2.2
\n
2.3
\n
Employee benefits
\n
0.6
\n
0.3
\n
Other financial income
\n
0.3
\n
0.2
\n
Total
\n
6.0
\n
4.5
\n
The year-on-year change was largely attributable to the item \u201cInterest income from bank\u201d, resulting from an increase in
\n
short-term liquidity investment. The other items making up the total were largely unchanged.
\n
\n \n
\n \n \n
\n \n
\n
Note 1.9 \u2013 Financial expense
\n
\u201cFinancial Expense\u201d amounted to \u20ac 15.7 million at the end December 2022 versus \u20ac 12.4 million realized in 2021. This
\n
line item can be detailed as follows:
\n
\n \n
\n \n
\n \n
\n
Financial expense
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Interest and other expenses due to bank
\n
10.3
\n
7.7
\n
Leases
\n
1.9
\n
1.4
\n
Put and Call
\n
1.4
\n
2.4
\n
Employee benefits
\n
1.4
\n
0.6
\n
Other financial expense
\n
0.7
\n
0.3
\n
Total
\n
15.7
\n
12.4
\n
Compared to the previous year, \u201cFinancial Expense\u201d increased by \u20ac 3.3 million, mainly due to \u201cInterest and other expenses
\n
due to bank\u201d which are also reflecting the impact generated by the new debt loan signed in 2022.
\n
\n \n
\n \n
\n
Note 1.8 \u2013 Financial income
\n
In 2022, \u201cFinancial income\u201d amounted to \u20ac 6.0 million, which is a better result than the previous year, when the same
\n
item amounted to \u20ac 4.5 million. The item is as follows:
\n
Financial income
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Interest income from bank
\n
2.9
\n
1.6
\n
State Green Programmes
\n
2.2
\n
2.3
\n
Employee benefits
\n
0.6
\n
0.3
\n
Other financial income
\n
0.3
\n
0.2
\n
Total
\n
6.0
\n
4.5
\n
The year-on-year change was largely attributable to the item \u201cInterest income from bank\u201d, resulting from an increase in
\n
short-term liquidity investment. The other items making up the total were largely unchanged.
\n
\n \n
\n
Note 1.8 \u2013 Financial income
\n
In 2022, \u201cFinancial income\u201d amounted to \u20ac 6.0 million, which is a better result than the previous year, when the same
\n
item amounted to \u20ac 4.5 million. The item is as follows:
\n
Financial income
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Interest income from bank
\n
2.9
\n
1.6
\n
State Green Programmes
\n
2.2
\n
2.3
\n
Employee benefits
\n
0.6
\n
0.3
\n
Other financial income
\n
0.3
\n
0.2
\n
Total
\n
6.0
\n
4.5
\n
The year-on-year change was largely attributable to the item \u201cInterest income from bank\u201d, resulting from an increase in
\n
short-term liquidity investment. The other items making up the total were largely unchanged.
\n
\n \n
\n
Note 1.9 \u2013 Financial expense
\n
\u201cFinancial Expense\u201d amounted to \u20ac 15.7 million at the end December 2022 versus \u20ac 12.4 million realized in 2021. This
\n
line item can be detailed as follows:
\n
\n \n
\n \n
\n \n
\n
Financial expense
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Interest and other expenses due to bank
\n
10.3
\n
7.7
\n
Leases
\n
1.9
\n
1.4
\n
Put and Call
\n
1.4
\n
2.4
\n
Employee benefits
\n
1.4
\n
0.6
\n
Other financial expense
\n
0.7
\n
0.3
\n
Total
\n
15.7
\n
12.4
\n
Compared to the previous year, \u201cFinancial Expense\u201d increased by \u20ac 3.3 million, mainly due to \u201cInterest and other expenses
\n
due to bank\u201d which are also reflecting the impact generated by the new debt loan signed in 2022.
\n
\n \n
\n \n
\n
Note 1.9 \u2013 Financial expense
\n
\u201cFinancial Expense\u201d amounted to \u20ac 15.7 million at the end December 2022 versus \u20ac 12.4 million realized in 2021. This
\n
line item can be detailed as follows:
\n
\n
Financial expense
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Interest and other expenses due to bank
\n
10.3
\n
7.7
\n
Leases
\n
1.9
\n
1.4
\n
Put and Call
\n
1.4
\n
2.4
\n
Employee benefits
\n
1.4
\n
0.6
\n
Other financial expense
\n
0.7
\n
0.3
\n
Total
\n
15.7
\n
12.4
\n
Compared to the previous year, \u201cFinancial Expense\u201d increased by \u20ac 3.3 million, mainly due to \u201cInterest and other expenses
\n
due to bank\u201d which are also reflecting the impact generated by the new debt loan signed in 2022.
\n
\n
Note 1.10 \u2013 Exchange rate gains/losses
\n
\u201cExchange rate gains/losses\u201d showed a negative result of \u20ac 8.9 million, which can be broken down as follows:
\n
Exchange rate gains/losses
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Exchange rate gains
\n
43.2
\n
24.5
\n
Exchange rate losses
\n
-52.1
\n
-34.7
\n
Unrealised exchange rate gains
\n
7.5
\n
17.0
\n
Unrealised exchange rate losses
\n
-7.5
\n
-2.7
\n
Total
\n
-8.9
\n
4.1
\n
\u201cExchange rate gains/losses\u201d include the monetary changes on the accounting entries that were realised at the end of
\n
the reporting period; \u201cUnrealised exchange rate gains\u201d and \u201cUnrealised exchange rate losses\u201d include the monetary
\n
changes that are not yet realised because they refer to transactions that were not closed at the end of the reporting
\n
period.
\n
The result for the period relating to realised and unrealised exchange differences was mostly negatively affected by the
\n
devaluation of Argentine peso and Nigerian naira against US dollar and Mexican peso against the Euro.
\n
\n \n
\n
\u00a0
\n \n
\n
Note 1.11 \u2013 Profit (loss) on investments
\n
The item \u201cProfit (loss) on investments\u201d was positive for \u20ac 4.7 million, up by \u20ac 6.6 million compared with the previous year,
\n
mainly due to the remeasuring of the value of obligations relating to Put and Call options connected to acquisitions, with
\n
the recognition in the income statement of any valuation differences.
\n
As at 31 December 2022, the amount equal to \u20ac 4.9 million is mainly due to the Put and Call option execution of HTP
\n
Comfort Solutions LLC, now known as Ariston Thermo USA LLC. Refer to \u2018Note 3.13 - Other current liabilities\u2019 for further
\n
explanation.
\n
\n \n
\u00a0
\n
\n \n
\n \n
\n \n
\n
Note 2.5 \u2013 Financial assets
\n
\u201cFinancial assets\u201d amounted to \u20ac 6.1 million at 31 December 2022, up by \u20ac 0.9 million compared to December 2021.
\n
This item mainly consists of the value of \u201cOther investments\u201d held for the medium/long-term, measured at fair value,
\n
since they are largely classified as \u201cFinancial instruments at fair value through profit or loss (FVTPL)\u201d.
\n
The increase during the period is mainly related to the investment in ThermoVault, held by Ariston Holding, for 12.22%
\n
of the entity\u2019s shares equal to \u20ac 1.1 million. The operation took place in November 2022. ThermoVault is a Belgian energy
\n
start-up that helps electricity consumers and utilities save money while allowing for the integration of more renewables.
\n
The company has developed an all-in software and hardware solution for energy services that retrofits residential cus-
\n
tomers\u2019 existing electric water and space heaters into energy-saving and lucrative grid-responsive energy storage devices.
\n
The other movements in the balance are due to the remeasurement, in accordance with IFRS 9, of the equity investment
\n
in an \u201cInvestment company in risk capital (SICAR) provision\u201d specialising in interventions in sectors where the Group
\n
operates, by the parent company Ariston Holding N.V.
\n
\n \n
\n \n
\n
Note 2.6 \u2013 Other non-current assets
\n
\u201cOther non-current assets\u201d includes primarily the security deposits due beyond the year and other assets with a financial
\n
impact spreading beyond one year.
\n
At 31 December 2022, the item amounted to \u20ac 7.0 million, up compared with \u20ac 6.4 million in 2021
\n
\n \n
\n
Note 2.9 \u2013 Trade receivables
\n
Trade receivables amounted to \u20ac 308.4 million, net of a bad debt provision of \u20ac 17.0 million.
\n
Compared with 31 December 2021, the net balance shows a \u20ac 60.2 million increase in absolute values. This increase is
\n
attributable to the strong growth in turnover, specifically in the markets with higher days outstanding sales, partially
\n
compensated by the strong collection performance and reduction in payment terms.
\n
The percentage of trade receivables on the turnover of the last 12 months was equal to 13.0% compared with 12.5%
\n
recorded at 31 December 2021.
\n \n
\n \n
\n \n
\n
The bad debt provision of \u20ac 17.0 million shows a net decrease by \u20ac 2.0 million compared with 31 December 2021. The
\n
decrease is partly attributable to the utilization for ending with a loss of non-performing and non-recoverable items and
\n
partly attributable to the reduction of credit risk evaluation. For Trade Receivables, the Group applies two approaches in
\n
the calculation of expected losses. The Group applies a matrix-based model. The Policy defines a percentage of statistical
\n
devaluation based on the division of trade receivables into clusters of ageing and country risk. For companies with a credit
\n
insurance contract, percentages applied on the category insured customers is reduced by approximately half of it. In the
\n
same perimeter, for a percentage of 31% in terms of newly recalculated bad debt fund, the Group is applying a new
\n
impairment criteria based on the probability of default (PD) obtained from external sources and historical loss rates.
\n
A specific fund is provided for legal and specific devaluation by single clients\u2019 situation and their economic environment.
\n
At 31 December 2022, the provision was deemed to be appropriate for the estimated losses from unsecured or disputed
\n
receivables.
\n
Following are the changes in the bad debt provision:
\n
Bad debt provision
\n
Short-term
\n
Medium/
\n
Total
\n
(in \u20ac million)
\n
long-term
\n
As at 31.12.2021
\n
13.0
\n
6.0
\n
19.0
\n
Perimeter variation
\n
1.4
\n
0.0
\n
1.4
\n
Increases
\n
1.2
\n
0.3
\n
1.6
\n
Decreases
\n
-0.9
\n
-1.7
\n
-2.6
\n
Release
\n
-2.0
\n
-0.3
\n
-2.2
\n
Exchange rate effect
\n
0.0
\n
0.0
\n
0.0
\n
Other
\n
-0.5
\n
0.4
\n
-0.1
\n
Total changes
\n
-0.7
\n
-1.3
\n
-1.9
\n
As at 31.12.2022
\n
12.3
\n
4.7
\n
17.0
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
The item \u201cOther\u201d includes primarily the reclassifications made for the period in order to ensure the correct recognition
\n
of receivables subject to special valuation, such as those in legal proceedings or in litigation.
\n
Please refer to paragraph \u2018Credit Risk\u2019 for further details on ageing and the related Bad Debt Provision.
\n
\n \n
\n
Note 2.11 \u2013 Current financial assets
\n
As at 31 December 2022, the item \u201cCurrent financial assets\u201d amounted to \u20ac 47.1 million, up from the \u20ac 10.8 million
\n
reported at the end of 2021.
\n
The item includes:
\n
\u2022
\n
\u201cShort-term financial receivables\u201d, including primarily security deposits, which amounted to \u20ac 2.2 million as at 31
\n
December 2022 (\u20ac 5.5 million as at 31 December 2021);
\n \n
\n
\u2022
\n
the positive impact of \u201cFinancial derivative assets\u201d for \u20ac 34.8 million (\u20ac 0.8 million as at 31 December 2021) is gener-
\n
ated by fair value measurement on derivative financial instruments. The fair value of financial derivatives included
\n
hedges on commodities for \u20ac 0.7 million, on interest rates for \u20ac 32.6 million and on foreign exchange for \u20ac 1.5 million.
\n
The amount of derivatives closed but not yet collected amounted to \u20ac 2.0 million (\u20ac 1.0 million as at 31 December
\n
2021);
\n
\n \n
\u2022
\n
the short-term bank notes or similar tradable instruments held by subsidiaries in China, issued and backed up by
\n
leading domestic banks and used in commercial transactions with customers and suppliers in order to settle supply
\n
agreements.
\n \n
\n \n
\n
Note 2.12 \u2013 Other current assets
\n
\u201cOther current assets\u201d amounted to \u20ac 50.8 million versus \u20ac 56.4 million at 31 December 2021. The main items are:
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Other current assets
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Indirect tax receivables
\n
25.0
\n
29.2
\n
Prepaid expenses
\n
8.8
\n
7.1
\n
Advances to suppliers
\n
8.2
\n
6.5
\n
Credits from government
\n
3.8
\n
3.5
\n
Receivables from employees
\n
1.2
\n
0.6
\n
State Green Programmes
\n
1.2
\n
8.3
\n
Other receivables
\n
2.5
\n
1.1
\n
Total
\n
50.8
\n
56.4
\n
During the period, the \u201cOther current assets\u201d did not record significant variations compared to the previous period ending
\n
at 31 December 2021.
\n
The significant decrease in the \u201cState Green Programmes\u201d equal to \u20ac 7.1 million is due to the receivables collection which
\n
occurred in December 2022, while at 31 December 2021, these receivables had been transferred to banks only partially.
\n
The residual balance as at 31 December 2022 is mainly related to the subsidiary Ingrado S.r.l., an Italian entity, that was
\n
unable to collect the receivables in the second part of 2022 due to contractual constraints.
\n
\n \n
\n \n \n
\n
Note 2.13 \u2013 Cash and cash equivalents
\n
\u201cCash and cash equivalents\u201d, amounting to \u20ac 999.3 million as at the end of December 2022, are represented almost
\n
entirely by cash in bank, as shown in the following table:
\n
Cash and cash equivalents
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Bank and postal deposits
\n
961.2
\n
653.3
\n
Short-term Investments
\n
38.0
\n
30.9
\n
Cash on hand
\n
0.2
\n
5.5
\n
Total
\n
999.3
\n
689.7
\n
The amount shown in the line \u201cBank and postal deposits\u201d primarily consists of credit balances on current accounts and
\n
compared to 31 December 2021, it increased by \u20ac 307.9 million mainly due to new medium/long-term syndicated line
\n
entered in 2022. \u201cShort-term Investments\u201d increased by \u20ac 7.1 million compared to 31 December 2021.
\n
The amount of cash on hand with a pre-determined use is not significant.
\n
The reconciliation among Cash & Cash Equivalent and Consolidated statement of cash flows is provided below:
\n
Cash & Cash Equivalent reconciliation
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Cash and cash equivalents
\n
(as included in the Consolidated statement of finan-
\n
cial position)
\n
999.3
\n
689.7
\n
Short-term bank notes or similar tradable instruments and others
\n
3.3
\n
3.5
\n
Bank overdrafts
\n
-7.4
\n
-21.8
\n
Notes payable
\n
-17.6
\n
-15.8
\n
Cash and cash equivalents (as included in the Consolidated statement of cash
\n
flows)
\n
977.5
\n
655.5
\n
\n \n
\n \n
\n
Note 3.5 \u2013 Non-current financing
\n
As at 31 December 2022, \u201cNon-current financing\u201d amounted to \u20ac 865.2 million versus \u20ac 446.4 million in the previous
\n
year, and was as follows:
\n
31.12.2022
\n
31.12.2021
\n
< 1 year
\n
< 5 years
\n
> 5 years
\n
Total
\n
< 1 year
\n
< 5 years
\n
> 5 years
\n
Total
\n
Fair value of Current and
\n
Non-current Financing
\n
32.7
\n
704.9
\n
160.2
\n
897.8
\n
23.1
\n
240.0
\n
206.4
\n
469.5
\n
The \u201cCurrent financing\u201d debt for loans was up \u20ac 9.6 million on the previous year; this is essentially attributable to the
\n
normal amortization plan of medium/long-term debt. Meanwhile the \u201cNon-current financing\u201d compared to 31 December
\n
2021 was up \u20ac 418.7 million mainly due to new refinancing taken out in 2022.
\n \n
\n
In accordance with IFRS 16, below are the carrying amounts of financial liabilities arising from right-of-use assets broken
\n
down by maturity at 31 December 2022:
\n
Expiry dates 31.12.2022
\n
(in \u20ac million)
\n
0-12 months
\n
2-5 years
\n
>5 years
\n
Total
\n
Financial payables
\n
- non-current loans
\n
40.4
\n
10.2
\n
50.6
\n
- current loans
\n
20.8
\n
20.8
\n
Financial payables
\n
20.8
\n
40.4
\n
10.2
\n
71.4
\n
\n \n
\n \n
\n
Net financial indebtedness
\n
The reconciliation with the Net Financial Indebtedness adjusted is set out below.
\n
2022
\n
2021
\n
Net Financial Indebtedness
\n
(million \u20ac)
\n
A
\n
Cash
\n
999.2
\n
689.3
\n
B
\n
Cash equivalents including the current financial assets
\n
0.1
\n
0.4
\n
C
\n
Other current financial assets
\n
12.3
\n
4.5
\n
D
\n
Liquidity (A+B+C)
\n
1,011.6
\n
694.2
\n
E
\n
Current financial liabilities
\n
-53.5
\n
-71.1
\n
F
\n
Current portion of non-current financial liabilities
\n
-32.7
\n
-23.1
\n
G
\n
Current Financial Indebtedness (E+F)
\n
-86.2
\n
-94.2
\n
H
\n
Net Current Financial Indebtedness (G-D)
\n
925.4
\n
599.9
\n
I
\n
Non-current financial liabilities
\n
-865.2
\n
-446.4
\n
J
\n
Non-current financing (Debt instruments)
\n
0.0
\n
0.0
\n
K
\n
Non-current Trade and Other Payables
\n
0.0
\n
-4.5
\n
L
\n
Non-Current Financial Indebtedness (I+J+K)
\n
-865.2
\n
-450.9
\n
M
\n
Total Financial Indebtedness (H+L) (*)
\n
60.2
\n
149.0
\n
N
\n
Group Net Financial Indebtedness
\n
98.9
\n
184.8
\n
\u2206 M-N
\n
-38.6
\n
-35.8
\n
(*) ESMA 32-382-1138 guideline
\n
In preparing the statement of Net Financial Indebtedness, which is a non-IFRS measure, the Group considered the provi-
\n
sions set out in Consob Communication DEM/6064293 of 28 July 2006 and the ESMA Guidelines issued in May 2021, with
\n
the exception that it included non-current financial assets consisting of financial receivables and excluded outstanding
\n
debts associated with purchases of equity interest and positive MTM on derivatives.
\n
At 31 December 2022, the Group recorded a positive Net Financial Indebtedness adjusted of \u20ac 98.9 million compared
\n
with the positive balance of \u20ac 184.8 million at 31 December 2021.
\n \n
\n
A reconciliation of the changes in financial assets and liabilities used in financing activities indicated in the cash flow
\n
statement and the balances shown on the financial statements is provided below:
\n
Non
\n
-
\n
current
\n
financing
\n
Current financial
\n
liabilities
\n
Current loans
\n
Current
\n
financial assets
\n
Total
\n
Net impact
\n
31.12.2021
\n
446.4
\n
46.1
\n
23.1
\n
-10.8
\n
504.8
\n
Increase/decrease in short
\n
-
\n
term
\n
financial payables
\n
(1)
\n
0.0
\n
8.5
\n
-0.3
\n
-1.8
\n
6.4
\n
New loans
\n
(1)
\n
450.5
\n
0.0
\n
0.0
\n
-0.0
\n
450.5
\n
Loans repayment
\n
(1)
\n
-62.8
\n
0.0
\n
0.0
\n
-0.0
\n
-62.8
\n
New lease contracts
\n
22.5
\n
0.0
\n
0.0
\n
-0.0
\n
22.5
\n
Reclassification
\n
-6.7
\n
0.0
\n
6.7
\n
-0.0
\n
0.0
\n
Exchange rate effects
\n
0.1
\n
-1.3
\n
0.1
\n
-0.3
\n
-1.4
\n
Perimeter variation
\n
15.1
\n
15.5
\n
2.9
\n
-0.3
\n
33.2
\n
Net variation positive MTM
\n
0.0
\n
0.0
\n
0.0
\n
-34.0
\n
-34.0
\n
Other movements
\n
0.0
\n
-19.0
\n
0.0
\n
0.1
\n
-18.9
\n
31.12.2022
\n
865.2
\n
49.7
\n
32.7
\n
-47.1
\n
900.4
\n
(1): Included in the Cash flows Statement.
\n
\n \n
\n \n
\n
Note 3.6 \u2013 Other non-current liabilities
\n
\u201cOther non-current liabilities\u201d amounted to \u20ac 12.0 million versus \u20ac 14.0 million in the previous year. These liabilities are
\n
represented primarily by debts to be extinguished beyond the year and non-current contract liabilities. For the disclosure
\n
about contract liabilities, refer to \u2018Note 3.13 \u2013 Other current liabilities\u2019.
\n
\u201cOther non-current liabilities\u201d largely reflected the fair value of the debt resulting from the measurement of the individual
\n
obligations associated with Put and Call options on non-controlling interests in the recently acquired entities, primarily
\n
the newly acquired Chromagen group and the Dutch entity Haas Heating B.V. acquired in 2021.
\n
During the year, \u201cOther non-current liabilities\u201d did not record a significant variation but some transactions took place in
\n
the account.
\n
During the year, Ariston Group paid the remaining liability related to the representations and warranties foreseen in the
\n
Shares Purchase Agreement for the acquisition of the Danish entity Gastech-Energi A/S after the Danish Court Decision.
\n
The amount paid during the 2022 is equal to \u20ac 1.2 million. The payment of the liability generated a positive impact in
\n
income statement for \u20ac 1.3 million which compensates the Group for the fine imposed by the Danish Court.
\n
The shares of Gastech-Energi A/S owned by Ariston Group are now equal to 100%.
\n
As at 31 December 2021 the liability was classified in non-current liabilities because it was not possible to reliably deter-
\n
mine when the Danish Court would have issued the judgement.
\n
In June 2022, Ariston Group paid the remaining liability, related to the acquisition of the German company Kesselheld
\n
GmbH, to the sellers after agreement between the parties. The liability was not paid for the total amount because the
\n
parties offset the tax risks, arising before the Ariston Group acquisition, as stated in the agreement executed by the
\n
parties. The amount was already paid into an Escrow Account at the acquisition date and therefore in June 2022 there
\n
was not a cash out for Ariston Group. The event described above generated a positive impact in income statement for \u20ac
\n
0.3 million.
\n
\n
As at 31 December 2021 the liability was classified in non-current liabilities because the expiration of the execution was
\n
in 2023, as stated in the Shares Purchase Agreement, but the parties agreed to bring forward the agreement closing in
\n
June 2022.
\n
\n
Note 3.8 \u2013 Trade payables
\n
\u201cTrade payables\u201d at 31 December 2022 amounted to \u20ac 481.4 million showing an increase of \u20ac 4.2 million, compared with
\n
31 December 2021. They are not subject to interests and their carrying value is believed to be close to the fair value at
\n
the end of the reporting period.
\n
Trade payables in terms of the average number of days for payment, amounted to 96 days in 2022 and 97 days in 2021.
\n
\n \n
\n
Note 3.11 \u2013 Current financial liabilities
\n
\n \n \n
\n \n
\n
As at 31 December 2022, \u201cCurrent financial liabilities\u201d amounted to \u20ac 49.7 million versus \u20ac 46.1 million in the previous
\n
year.
\n
\n \n \n
\n
Liabilities are the following:
\n
Current financial liabilities
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
Short-term debt due to bank
\n
21.6
\n
22.8
\n
Financial derivative liabilities
\n
10.5
\n
7.4
\n
Other current financial liabilities
\n
17.6
\n
15.8
\n
Total
\n
49.7
\n
46.1
\n
\n \n
\n \n \n
\n
Short-term debt due to banks showed a \u20ac 1.3 million decrease as a result of a lower draw-down of short-term lines.
\n
Short-term uncommitted credit lines amounted to approximately \u20ac 395.0 million and consisted almost entirely of current
\n
account credit lines and advances utilized as at 31 December 2022 for \u20ac 49.0 million (\u20ac 34.0 as at 31 December 2021).
\n
\n \n \n
\n
As at 31 December 2022, \u201cFinancial derivate liabilities\u201d amounted to \u20ac 10.5 million and included the negative fair value
\n
and derivatives closed but not yet paid of financial derivatives instruments.
\n
The fair value of financial derivatives included hedges on foreign exchange for \u20ac 3.5 million (\u20ac 1.2 million as at 31 Decem-
\n
ber 2021) and on commodities for \u20ac 1.3 million (\u20ac 0.1 million as at 31 December 2021).
\n
The negative accruals to financial derivatives closed but not yet paid at the reporting date amounted to \u20ac 5.6 million.
\n
The change in commodity, foreign exchange and interest rates hedges was offset by the change in the underlying hedged
\n
items. The fair value measurement of the derivative instruments has a direct contra-entry in the equity reserve related
\n
to the cash flow hedge for a total of \u20ac 22.8 million. For a more detailed explanation of hedging instruments, see the
\n
section on the instruments for financial risk management.
\n
\n \n \n
\n
The item \u201cOther current financial liabilities\u201d amounted to \u20ac 17.6 million (\u20ac 15.8 million as at 31 December 2021) and
\n
consisted for \u20ac 13.0 million of the short-term debt for bank notes or similar tradable instruments issued, held by subsid-
\n
iaries in China, and used in commercial transactions with customers and suppliers in order to settle supply agreements.
\n
\n \n
\n
Note 3.12 \u2013 Current loans
\n
The balance of \u201cCurrent loans\u201d amounted to \u20ac 32.7 million versus \u20ac 23.1 million at 31 December 2021.
\n
The item consists primarily of the short-term portion of the medium/long-term bank loans, the details of which are an-
\n
nexed to the \u2018Note 3.5 - Non-current financing\u2019.
\n
\n
\u201cOther current liabilities\u201d amounted to \u20ac 174.5 million, increased by \u20ac 16.2 million with the \u20ac 186.3 million at 31 Decem-
\n
ber 2021.
\n
Other current liabilities
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
Current payables due to personnel
\n
51.7
\n
50.9
\n
Contract liabilities
\n
41.9
\n
34.6
\n
Indirect tax payables
\n
29.2
\n
20.2
\n
Current payables for social security contributions
\n
19.1
\n
17.9
\n
Customers credit balance
\n
13.1
\n
9.0
\n
Advances from customers
\n
5.6
\n
7.2
\n
Deferred income
\n
4.8
\n
5.6
\n
Short-term put/call debts
\n
3.8
\n
25.1
\n
Long-term employees incentive scheme (current)
\n
0.3
\n
2.2
\n
State Green Programmes
\n
0.0
\n
7.5
\n
Other current payables
\n
5.1
\n
6.1
\n
Total
\n
174.5
\n
186.3
\n
\n
The \u201cShort-term put/call debts\u201d arises from purchase agreements that are to be settled in the near future. The item
\n
showed a decrease, discussed below, of \u20ac 21.3 million.
\n
In May 2022, the Group exercised the Put and Call option for HTP Comfort Solutions LLC, now known as Ariston Thermo
\n
USA LLC. Starting from 31 May 2022, the Ariston Thermo USA LLC\u2019s shares owned by Ariston Group are now equal to
\n
100%. The amount paid during the 2022 is equal to $ 23.4 million (\u20ac 21.9 million). The liability related to the earn out has
\n
been not paid to the seller after agreed between the parties. This event has generated a positive financial impact in
\n
income statement for \u20ac 4.9 million.
\n
In January 2022, Ariston Group completed the acquisition of Chromagen group. From the Asset Purchase Agreement is
\n
stated a representation and warranties clause covered by an escrow account (\u20ac 2.2 million) as guarantee for the seller.
\n
The present value of the outstanding amount that will be paid to the seller is considered as financial liabilities
\n
The balance as at 31 December 2022 includes the liability for the Put and Call on HAAS B.V., Atmor Industries and Chro-
\n
magen group.
\n
\n \n
\n \n
\n \n
\n \n
\n
FINANCIAL INSTRUMENTS
\n
Below are the Group's financial instruments recognised by category and level of confidence of their fair value measure-
\n
ments at 31 December 2022:
\n
31.12.2022
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Available for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
liabil-
\n
ities at
\n
amortised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measured at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Finan
\n
cial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0.0
\n
0.0
\n
0.0
\n
999.3
\n
0.0
\n
999.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade re
\n
ceivables
\n
2.9
\n
0.0
\n
0.0
\n
0.0
\n
308.4
\n
0.0
\n
308.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current
\n
financial
\n
assets
\n
2.11
\n
0.0
\n
34.8
\n
0.0
\n
10.2
\n
2.0
\n
47.1
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial assets
\n
2.5
\n
0.0
\n
0.0
\n
0.0
\n
6.1
\n
0.0
\n
6.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
34.8
\n
0.0
\n
1,324.0
\n
2.0
\n
1,360
\n
.
\n
8
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial liabilities
\n
Trade
\n
payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
481.4
\n
481.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial lia-
\n
bilities
\n
3.11
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
44.8
\n
49.7
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Current
\n
loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
32.7
\n
32.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current
\n
financing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
865.2
\n
865.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
1,424.0
\n
1,428.8
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Financial instruments
\n
balance
\n
0.0
\n
30.0
\n
0.0
\n
1,324.0
\n
-1,422.0
\n
-68.0
\n
0.0
\n
30.0
\n
0.0
\n
30.0
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
The financial instruments of the Group, recognised in the financial statements with a similar breakdown at 31 December
\n
2021, are shown in the table below:
\n
31.12.2021
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Availa-
\n
ble for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
lia-
\n
bilities
\n
at
\n
amor-
\n
tised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measu
\n
red at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair
\n
value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Financial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
689.7
\n
0.0
\n
689.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade receivables
\n
2.9
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
248.3
\n
0.0
\n
248.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial
\n
assets
\n
2.11
\n
0
\n
.0
\n
0.8
\n
0.0
\n
9.0
\n
1.0
\n
10.8
\n
0
\n
.0
\n
0.8
\n
0
\n
.0
\n
0.8
\n
Financial assets
\n
2.5
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
5.2
\n
0
\n
.0
\n
5.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
0.8
\n
0.
\n
0
\n
952.1
\n
1.0
\n
95
\n
3.9
\n
0
\n
0.8
\n
0.0
\n
0.8
\n
Financial liabilities
\n
Trade payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
477.2
\n
477.2
\n
0.0
\n
0.0
\n
0.0
\n
0
\n
.0
\n
Current financial
\n
liabilities
\n
3.11
\n
0.0
\n
2.5
\n
0.0
\n
0.0
\n
43.6
\n
46.1
\n
0.0
\n
2.5
\n
0.0
\n
2.5
\n
Current loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
23.1
\n
23.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current financ-
\n
ing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
446.4
\n
446.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.
\n
0
\n
2.5
\n
0.0
\n
0.0
\n
990.3
\n
992.8
\n
0.
\n
0
\n
2.5
\n
0.0
\n
2.5
\n
Financial
\n
instruments balance
\n
0.0
\n
-
\n
1.7
\n
0
\n
952.1
\n
-
\n
989.3
\n
-
\n
38.9
\n
0
\n
-
\n
1.7
\n
0.0
\n
-1.7
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Notes:
\n
Level 1: quoted prices on an active market for the asset or liability being measured.
\n
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived
\n
from prices).
\n
Level 3: unobservable inputs for the asset or liability.
\n
As the above table shows, at the reporting date, there were no differences between the carrying amounts of financial
\n
instruments and the corresponding fair value. In particular, among the non-current financial assets, obligations are mainly
\n
stated at fair value.
\n
Current and non-current loans are at both fixed and floating rates and are recognised at their amortised cost.
\n
As already described in \u2018Note 3.11 \u2013 Current financial liabilities\u2019 and in \u2018Note 2.11 \u2013 Current financial assets\u2019 of these
\n
notes, current financial assets/liabilities include the fair value, at the end of the reporting period, of the derivative finan-
\n
cial instruments used to hedge the purchase of commodities (negative for \u20ac 0.6 million), exchange rates (negative for \u20ac
\n
2.0 million) and interest rates (positive for \u20ac 32.5 million).
\n
For details on these transactions, see the section \u201cHedging instruments\u201d.
\n
\n \n
\n \n \n
\n
The Group is exposed to operations related financial risks, including credit risk, liquidity risk and market risk, and con-
\n
stantly monitors them.
\n
The following section provides qualitative and quantitative information about the impact of these risks on the Group.
\n
\n \n
Financial instruments at fair value through OCI include fair value of derivatives mainly on interest rates, exchange rates
\n
and commodities for which the Group has applied the IFRS 9 Hedge Accounting
\n
\n \n
\n \n
.
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
Credit risk is the Group\u2019s exposure to potential losses from failure by commercial counterparties to fulfil obligations they
\n
have entered into. Failure to collect or late collection of trade receivables could impact negatively on the Group\u2019s eco-
\n
nomic results and financial equilibrium.
\n
The Group\u2019s policy for managing credit risk from commercial activities envisages the preliminary assessment of counter-
\n
parties\u2019 creditworthiness, the management of credit limits and the adoption of risk mitigation instruments, such as the
\n
acquisition of bank guarantees, letters of credit and the external transfer of part of the insolvency risk through a global
\n
program of credit insurance.
\n
The portion of insured receivables, at 31 December 2022, was 64.2% of the total exposure.
\n
In order to mitigate credit risk, the Group has also adopted a policy which defines the strategic guidelines and operating
\n
rules for an effective system to control each company\u2019s credit.
\n
In addition, the policy defines the means for estimating expected losses, in accordance with the means set out hereafter
\n
and taking account of the mitigating factor represented by the aforementioned instruments for insured credit.
\n \n
\n \n
\n \n
\n \n
\n
For trade receivables, the Group uses the \u201c12-month ECL\u201d methodology to determine the lifetime of the expected losses
\n
associated with the probability of default over the next 12 months, using a forward-looking approach. The calculation of
\n
the expected credit loss, which is made on the residual life of the receivables at the date of their recognition in the
\n
financial statements and the subsequent reporting dates, considers a 12-month time horizon, since at the closing date of
\n
the period there was no significant increase in credit risk.
\n
In particular, the Group applies an approach defined as a \u201cprovision matrix\u201d, based on the division of trade receivables
\n
into clusters on the basis of type (ordinary/legal), ageing (past-due ranges) and country rating. For the purposes of deter-
\n
mining expected losses, the Group applies a definition of the default threshold for ordinary receivables of 120 days past
\n
due and 100% for receivables which have moved to legal default, since this is considered an effective indication of the
\n
threshold beyond which the receivable is considered unrecoverable. The calculation of the probability of default is there-
\n
fore based on the effective number of days the payment is overdue. In the same perimeter, for a percentage of 31% in
\n
terms of newly recalculated bad debt fund, the Group is applying a new impairment criteria based on the probability of
\n
default (PD) obtained from external sources and historical loss rates.
\n
As regards the write-off criteria, these are clearly based on the specific statutory and tax rules in force in the various
\n
countries where the Group companies are present.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Maximum risk exposure
\n
The maximum exposure to risk, net of guarantees, at 31 December 2022 was \u20ac 110.3 million. The Group has not identified
\n
any concentration risk on customers and on its trade receivables as the Group has a very diversified customers risk port-
\n
folio without any significant increase in a risky customer share. The Group seeks to mitigate the credit risk by depositing
\n
its liquidity in leading bank and corporate counterparties selected according to their credit quality.
\n
The table below summarises the types of instruments protecting against credit risk used by the Group:
\n
Type
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Receivables under insurance policies
\n
192.4
\n
62.4%
\n
156.6
\n
63.0%
\n
Other
\n
5.7
\n
1.9%
\n
9.6
\n
4.0%
\n
Total insured receivables
\n
198.1
\n
64.2%
\n
166.2
\n
67.0%
\n
Non-insured receivables
\n
103.3
\n
35.8%
\n
82.1
\n
33.0%
\n
Total receivables
\n
308.4
\n
100.0%
\n
248.3
\n
100.0%
\n
\u201cOther\u201d mainly includes receivables insured through letters of credit and bank guarantees.
\n \n
\n \n
\n
Overdue financial assets
\n
The instrument used for the classification and monitoring of credit is ageing, according to which the accounts payables
\n
are divided by their expiry dates, starting from the most recent (1-30 days) to the oldest (beyond 120 days).
\n
The amount of receivables past-due within 60 days is \u20ac 26 million (versus \u20ac 19.6 million at December 2021) whereas the
\n
amount of receivables past-due beyond 60 days is \u20ac 16.2 million (versus \u20ac 13.8 million at December 2021).
\n
For the purposes of representing trade receivables for issued invoices by past-due ranges, the following table is provided:
\n
Overdue ageing
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Overdue 0-30
\n
19.3
\n
5.1%
\n
14.2
\n
6.0%
\n
Overdue 31-60
\n
6.7
\n
2.2%
\n
5.4
\n
2.0%
\n
Overdue 61-120
\n
3.9
\n
1.2%
\n
1.8
\n
1.0%
\n
Due after 120 and legal
\n
12.3
\n
4.0%
\n
12.0
\n
4.0%
\n
The credit policy defines the depreciation grid for the statistical part differentiating percentage by aging and country risk
\n
class where the trade receivable amount is allocated.
\n
The current (not overdue) receivables amounted to \u20ac 266.2 million. Also these amounts are allocated to their country
\n
risk class and subject to depreciation according to the assigned percentage of devaluation. The related provision for bad
\n
debt amounted to \u20ac 3.2 million.
\n
For Companies with a credit insurance contract, percentages applied on the category insured customers will be lower by
\n
60% up to overdue below 180 days, while over 180 days the percentages remain the same.
\n
As at 31 December 2022 the Group did not measure trade receivables at amortized cost because there are no trade
\n
receivables with maturities greater than one year.
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Depreciation grid
\n
Trade receivables aging
\n
Country risk A
\n
Country risk B
\n
Country risk C
\n
Country risk D
\n
Overdue > 360 days
\n
70%
\n
80%
\n
90%
\n
100%
\n
Overdue 271- 360
\n
50%
\n
60%
\n
70%
\n
90%
\n
Overdue 181- 270
\n
35%
\n
40%
\n
50%
\n
70%
\n
Overdue 121-180
\n
20%
\n
25%
\n
35%
\n
50%
\n
Overdue 91-120
\n
12.5%
\n
15%
\n
20%
\n
30%
\n
Overdue 61-90
\n
7.5%
\n
10%
\n
12.5%
\n
20%
\n
Overdue 31-60
\n
2.5%
\n
5%
\n
7.5%
\n
10%
\n
Overdue 0-30
\n
1.25%
\n
1.5%
\n
2.5%
\n
5%
\n
Current (not overdue)
\n
0.5%
\n
0.75%
\n
1%
\n
1.5%
\n
Following is the summary of the specific and simplified ECLs assessments used to determine the bad debt provision:
\n
Analysis of bad debt provision
\n
31.12.2022
\n
31.12.2021
\n
Total receivables
\n
Gross
\n
325.4
\n
267.3
\n
Provision
\n
17.0
\n
19.0
\n
Net
\n
308.4
\n
248.3
\n
Receivables impaired on a specific basis
\n
Gross
\n
5.2
\n
6.7
\n
Provision
\n
4.7
\n
6.0
\n
Net
\n
0.5
\n
0.7
\n
Receivables impaired on a simplified ECLs
\n
Gross
\n
320.2
\n
260.6
\n
Provision
\n
12.3
\n
13.0
\n
Net
\n
307.9
\n
247.6
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n \n
\n
LIQUIDITY RISK
\n
As at 31 December 2022, the Group\u2019s \u201cOverall available liquidity\u201d, defined as the sum of cash and cash equivalents and
\n
the unused portion of committed credit lines (equal to \u20ac 430 million at December month-end) amounted to approxi-
\n
mately \u20ac 1,429 million.
\n
As at 31 December 2022, the Group's overall bank credit lines, including the used and unused credit lines (both committed
\n
and uncommitted) totalled approximately \u20ac1.7 billion, of which approximately 53% was drawn.
\n
The primary sources of liquidity for its business comprise cash generated from operations and bank financing.
\n
The Group periodically assesses its financial needs, in order to act in a timely manner to find the necessary additional
\n
resources and implements actions in response to its findings. The Group seeks to maintain an adequate mix of resources
\n
in terms of maturities, financial instruments and available amounts.
\n
The following table shows the contractual expiry dates for the financial liabilities other than derivatives. These figures are
\n
based on the non-discounted cash flows, including financial charges, as at the next closest date when the Group may be
\n
asked for the payment.
\n
Expiry dates 2022
\n
(in \u20ac million)
\n
< 1
\n
month
\n
2-6
\n
months
\n
6-12
\n
months
\n
1-5
\n
years
\n
> 5
\n
years
\n
Total
\n
Trade payables
\n
121.1
\n
359.9
\n
0.0
\n
0.4
\n
481.4
\n
Financial payables
\n
-
\n
Current financial liabilities
\n
10.7
\n
18.0
\n
20.9
\n
49.6
\n
-
\n
Current loans
\n
4.1
\n
28.6
\n
32.7
\n
-
\n
Non-current financial liabilities
\n
0.0
\n
-
\n
Non-current loans
\n
5.4
\n
5.0
\n
736.4
\n
169.9
\n
916.7
\n
Total financial payables
\n
10.7
\n
27.5
\n
54.5
\n
736.4
\n
169.9
\n
999.0
\n
Expiry dates
\n
131.8
\n
387.4
\n
54.5
\n
736.8
\n
169.9
\n
1,480.4
\n
\n \n
\n \n
\n \n
\n \n
\n
The details for the expiry dates of financial and trade payables as at 31 December 2021 are shown in the table below:
\n
Expiry dates 2021
\n
(in \u20ac million)
\n
< 1
\n
month
\n
2-6
\n
months
\n
6-12
\n
months
\n
1-5
\n
years
\n
> 5
\n
years
\n
Total
\n
Trade payables
\n
120.0
\n
355.8
\n
0.3
\n
1.1
\n
477.2
\n
Financial payables
\n
-
\n
Current financial liabilities
\n
24.2
\n
20.8
\n
1.0
\n
46.1
\n
-
\n
Current loans
\n
2.0
\n
21.1
\n
23.2
\n
-
\n
Non-current financial liabilities
\n
-
\n
Non-current loans
\n
2.4
\n
2.4
\n
257.1
\n
207.8
\n
469.6
\n
Total financial payables
\n
24.2
\n
25.2
\n
24.5
\n
257.1
\n
207.8
\n
538.8
\n
Expiry dates
\n
144.2
\n
381.0
\n
24.8
\n
258.2
\n
207.8
\n
1,016.0
\n
\n \n \n
\n
MARKET RISK
\n
The Group is exposed to several market risks and, in particular, to the possibility that fluctuation in exchange rates, inter-
\n
est rates and commodity prices may affect the value of assets, liabilities and the expected cash flows.
\n
The market risk management policies applied to interest rates, exchange rates and commodities, are centrally defined to
\n
mitigate the above risks in a structured and proactive manner in the advancement of the Group's objectives.
\n
The three types of market risk can be characterized as described here below.
\n
Exchange rate risk
\n
The international context where the Group operates exposes the Group to the risk that changes in exchange rates may
\n
affect its financial results.
\n
The exposure to exchange rate risk determines:
\n
a)
\n
impacts on the operating result due to the different valuation of income and expense in another currency compared
\n
to the time when the price conditions were agreed upon (economic risk);
\n
b)
\n
impacts on the operating result due to the translation of trade or financial receivables/payables denominated in
\n
another currency (transaction risk);
\n
c)
\n
impacts on the consolidated financial statements due to the translation of assets and liabilities held by companies
\n
that prepare their financial statements in a currency other than the euro (translation risk).
\n
The most significant exposure in other currencies of the Group concerns the exchange rate of the euro against the US
\n
dollar, Chinese renminbi, Swiss franc and several other currencies for lower amounts.
\n
The economic risk is hedged through average rate forward financial instruments, i.e. hedging agreements against the
\n
volatility that characterises the currency markets, using as a reference the monthly average exchange rates, and that
\n
allow the Group to achieve the goals set out in its market risk management policy. In order to pursue these goals, the
\n
Group entered into derivatives hedging a set proportion of net exposure in currencies other than the Group's currency.
\n
At each reporting date, the exposure is presented in the financial statements using hedge accounting, which requires
\n
recognising derivatives at their fair value in the statement of financial position. The Group considered it possible to use
\n
hedge accounting since the hedging relationship is effective in accordance with IFRS 9.
\n
In order to minimise the exposure to the transaction risk, the Group uses derivative forward instruments which allow for
\n
protection against revaluations/write-downs at the due date of the credit and debit positions of a financial and commer-
\n
cial nature.
\n
The Group does not hedge the translation risk except for any distribution of intergroup dividends.
\n
As at the reporting date, the notional amount of forward currency contracts (sale and purchase) entered into by the
\n
Group, can be summarised as follows:
\n
\n \n
\n \n
\n \n
\n
(in \u20ac million)
\n
Notional amount in
\n
Currency
\n
Notional amount in \u20ac
\n
CHF
\n
91.8
\n
93.2
\n
GBP
\n
10.8
\n
12.1
\n
AUD
\n
0.3
\n
0.2
\n
CNY
\n
-276.0
\n
-37.5
\n
USD
\n
44.1
\n
41.3
\n
At the same date, the fair value of the foreign exchange derivatives was overall negative, standing at \u20ac 2.0 million.
\n
In relation to exchange rate risk, the Group performed sensitivity analysis to measure how exchange rates fluctuations
\n
against the euro may affect pre-tax profitability. The sensitivity analysis was performed on the currencies to which the
\n
Group is exposed. The hypothesised scenario envisages a general variation in exchange rates of 2% and the following
\n
table shows the sensitivity, while keeping all the other variables fixed, in terms of the profit before tax and equity, gross
\n
of the tax effect:
\n
(in \u20ac million)
\n
Effect on profit
\n
before tax
\n
Effect on equity
\n
31.12.2022
\n
Foreign currency revaluation
\n
1.8
\n
1.8
\n
Foreign currency devaluation
\n
-1.8
\n
-1.8
\n
Commodity price fluctuation risk
\n
Profit and loss are affected by the performance of prices of raw materials, in particular as regards non-ferrous metals
\n
such as copper, nickel and aluminium, as well as precious metals like silver, which represent one of the primary compo-
\n
nents of the majority of products traded by the Group.
\n
For hedging purposes against the risk of fluctuating prices for copper, silver and nickel, the Group provided, through the
\n
parent company Ariston Holding N.V., for the necessary hedging measures in line with the procedures already adopted
\n
in the previous years aimed at reducing the impact of price volatility in purchases over coming years.
\n
Thus, the Group partly hedged purchases also for the years 2022, 2023 and 2024.
\n
In order to achieve the goals set out in the market risk management policy, the Group entered into derivatives hedging a
\n
set proportion of raw material purchases. At each reporting date, the exposure is presented in the financial statements
\n
using hedge accounting, which requires recognising derivatives at their fair value in the statement of financial position.
\n
The Group considered it possible to use hedge accounting since the hedging relationship is effective in accordance with
\n
IFRS 9.
\n
When these instruments no longer qualify for hedge accounting, they are recognised as trading instruments.
\n
At the reporting date, the notional amount of forward commodity contracts entered into by the Group, can be summa-
\n
rised as follows:
\n
Commodity
\n
Financial
\n
instruments
\n
Quantity/ton
\n
Total price
\n
(in \u20ac million)
\n
Copper
\n
Forward
\n
2,220.0
\n
18.0
\n
Nickel
\n
Average Forward
\n
26.0
\n
0.6
\n
Silver
\n
Average Forward
\n
2.4
\n
1.5
\n
Aluminium
\n
Forward
\n
1,265.0
\n
3.1
\n
Steel
\n
Average Forward
\n
6,600.0
\n
5.2
\n
At the same date, the fair value measurement of the derivatives on commodities showed a net negative amount of \u20ac 0.6
\n
million.
\n
Derivatives contracts entered into and closed during the year realized a positive result amounting to approximately \u20ac 0.3
\n
million which impacted the purchase cost of commodities.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Interest rate risk
\n
Interest rate risk refers to the possible impact on the income statement deriving from fluctuations in the interest rates
\n
applied to the Group\u2019s loans.
\n
The amount of the Group\u2019s variable rate debt exposure, not hedged against interest rate risk, represents the main ele-
\n
ment of risk for the negative impact from an increase in market interest rates. The interest rate risk to which the Group
\n
is exposed originates primarily from bank financing.
\n
The Group's policy for managing this risk seeks to strike a balance between fixed and variable rate debts, taking into
\n
account the maturity profile, the short-term market outlook and with the purpose of containing funding costs.
\n
As at 31 December 2022, the Group had, for hedging purposes, interest rate swap (IRS) transactions for a total notional
\n
amount of \u20ac 418.4 million.
\n
At the same date, 51% of bank financing was hedged and 49% was at a variable rate, consistent with the Group policy.
\n
The sensitivity analysis of interest rate risk is conducted under the delta margin approach and is aimed at measuring how
\n
a given change in interest rates would affect financial expense associated with variable rate debt over the next 12 months.
\n
The sensitivity of the interest spread, assuming a generalised +/- 50 basis point change in interest rates, amounted to \u20ac
\n
+2.0 million and \u20ac -2.0 million, respectively, at the end of December 2022.
\n
\n \n \n
\n \n
\n
HEDGING INSTRUMENTS
\n
In summary, at 31 December 2022, the following financial hedging instruments are in place:
\n
\u2022
\n
against exchange rates \u2013 Swiss franc, British pound sterling, US dollar and Chinese renminbi;
\n
\u2022
\n
against commodities \u2013 copper, nickel, silver, aluminium and steel;
\n
\u2022
\n
against interest rates \u2013 medium/long-term floating rate loans.
\n
The hedging instruments applied to exchange rates were set up in order to reduce the Group\u2019s economic and transac-
\n
tional risk, and they meet all the formal requirements set out in the IAS/IFRSs and are therefore recognised in hedge
\n
accounting.
\n
The following table shows the details of hedging instruments in use as at 31 December 2022. The amounts are expressed
\n
in millions of euro:
\n
Hedging instruments
\n
31.12.2022
\n
(in \u20ac million)
\n
Nature of
\n
risk
\n
covered
\n
Fair value
\n
31.12.2022
\n
Non-current
\n
financial
\n
assets
\n
Current
\n
financial
\n
assets
\n
Non-
\n
current
\n
financial
\n
liabili-
\n
ties
\n
Current fi-
\n
nancial
\n
liabilities
\n
Total
\n
Interest Rate Swap
\n
Interest
\n
rate
\n
32.5
\n
32.5
\n
32.5
\n
Average Forward
\n
FX
\n
-2.0
\n
1.5
\n
-3.5
\n
-2.0
\n
Forward
\n
Commodity
\n
-1.1
\n
0.2
\n
-1.3
\n
-1.1
\n
Average Forward
\n
Commodity
\n
0.5
\n
0.5
\n
0.0
\n
0.5
\n
Hedging instruments
\n
30.0
\n
34.8
\n
-4.8
\n
30.0
\n
The following table shows the details of hedging instruments in use as at 31 December 2022. The amounts are expressed
\n
in millions of euro:
\n
Hedging instruments
\n
31.12.2021
\n
(in \u20ac million)
\n
Nature of
\n
risk covered
\n
Fair value
\n
31.12.2021
\n
Non-current
\n
financial
\n
assets
\n
Current
\n
financial
\n
assets
\n
Non-cur-
\n
rent
\n
financial
\n
liabilities
\n
Current
\n
financial
\n
liabilities
\n
Total
\n
Interest Rate Swap
\n
Interest rate
\n
-1.2
\n
-1.2
\n
-1.2
\n
Average Forward
\n
FX
\n
-1.2
\n
-1.2
\n
-1.2
\n
Forward
\n
Commodity
\n
0.8
\n
0.8
\n
0.8
\n
Average Forward
\n
Commodity
\n
-0.1
\n
-0.1
\n
-0.1
\n
Hedging instruments
\n
-1.7
\n
-1.2
\n
-0.5
\n
-1.7
\n
\n \n
\n \n
\n \n
\n \n
\n
\u00a0
\n \n
\n
Note 1.11 \u2013 Profit (loss) on investments
\n
The item \u201cProfit (loss) on investments\u201d was positive for \u20ac 4.7 million, up by \u20ac 6.6 million compared with the previous year,
\n
mainly due to the remeasuring of the value of obligations relating to Put and Call options connected to acquisitions, with
\n
the recognition in the income statement of any valuation differences.
\n
As at 31 December 2022, the amount equal to \u20ac 4.9 million is mainly due to the Put and Call option execution of HTP
\n
Comfort Solutions LLC, now known as Ariston Thermo USA LLC. Refer to \u2018Note 3.13 - Other current liabilities\u2019 for further
\n
explanation.
\n
\n \n
\u00a0
\n
\n \n
\n
Note 2.5 \u2013 Financial assets
\n
\u201cFinancial assets\u201d amounted to \u20ac 6.1 million at 31 December 2022, up by \u20ac 0.9 million compared to December 2021.
\n
This item mainly consists of the value of \u201cOther investments\u201d held for the medium/long-term, measured at fair value,
\n
since they are largely classified as \u201cFinancial instruments at fair value through profit or loss (FVTPL)\u201d.
\n
The increase during the period is mainly related to the investment in ThermoVault, held by Ariston Holding, for 12.22%
\n
of the entity\u2019s shares equal to \u20ac 1.1 million. The operation took place in November 2022. ThermoVault is a Belgian energy
\n
start-up that helps electricity consumers and utilities save money while allowing for the integration of more renewables.
\n
The company has developed an all-in software and hardware solution for energy services that retrofits residential cus-
\n
tomers\u2019 existing electric water and space heaters into energy-saving and lucrative grid-responsive energy storage devices.
\n
The other movements in the balance are due to the remeasurement, in accordance with IFRS 9, of the equity investment
\n
in an \u201cInvestment company in risk capital (SICAR) provision\u201d specialising in interventions in sectors where the Group
\n
operates, by the parent company Ariston Holding N.V.
\n
\n \n
\n
FINANCIAL INSTRUMENTS
\n
Below are the Group's financial instruments recognised by category and level of confidence of their fair value measure-
\n
ments at 31 December 2022:
\n
31.12.2022
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Available for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
liabil-
\n
ities at
\n
amortised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measured at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Finan
\n
cial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0.0
\n
0.0
\n
0.0
\n
999.3
\n
0.0
\n
999.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade re
\n
ceivables
\n
2.9
\n
0.0
\n
0.0
\n
0.0
\n
308.4
\n
0.0
\n
308.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current
\n
financial
\n
assets
\n
2.11
\n
0.0
\n
34.8
\n
0.0
\n
10.2
\n
2.0
\n
47.1
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial assets
\n
2.5
\n
0.0
\n
0.0
\n
0.0
\n
6.1
\n
0.0
\n
6.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
34.8
\n
0.0
\n
1,324.0
\n
2.0
\n
1,360
\n
.
\n
8
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial liabilities
\n
Trade
\n
payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
481.4
\n
481.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial lia-
\n
bilities
\n
3.11
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
44.8
\n
49.7
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Current
\n
loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
32.7
\n
32.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current
\n
financing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
865.2
\n
865.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
1,424.0
\n
1,428.8
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Financial instruments
\n
balance
\n
0.0
\n
30.0
\n
0.0
\n
1,324.0
\n
-1,422.0
\n
-68.0
\n
0.0
\n
30.0
\n
0.0
\n
30.0
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
The financial instruments of the Group, recognised in the financial statements with a similar breakdown at 31 December
\n
2021, are shown in the table below:
\n
31.12.2021
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Availa-
\n
ble for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
lia-
\n
bilities
\n
at
\n
amor-
\n
tised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measu
\n
red at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair
\n
value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Financial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
689.7
\n
0.0
\n
689.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade receivables
\n
2.9
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
248.3
\n
0.0
\n
248.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial
\n
assets
\n
2.11
\n
0
\n
.0
\n
0.8
\n
0.0
\n
9.0
\n
1.0
\n
10.8
\n
0
\n
.0
\n
0.8
\n
0
\n
.0
\n
0.8
\n
Financial assets
\n
2.5
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
5.2
\n
0
\n
.0
\n
5.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
0.8
\n
0.
\n
0
\n
952.1
\n
1.0
\n
95
\n
3.9
\n
0
\n
0.8
\n
0.0
\n
0.8
\n
Financial liabilities
\n
Trade payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
477.2
\n
477.2
\n
0.0
\n
0.0
\n
0.0
\n
0
\n
.0
\n
Current financial
\n
liabilities
\n
3.11
\n
0.0
\n
2.5
\n
0.0
\n
0.0
\n
43.6
\n
46.1
\n
0.0
\n
2.5
\n
0.0
\n
2.5
\n
Current loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
23.1
\n
23.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current financ-
\n
ing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
446.4
\n
446.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.
\n
0
\n
2.5
\n
0.0
\n
0.0
\n
990.3
\n
992.8
\n
0.
\n
0
\n
2.5
\n
0.0
\n
2.5
\n
Financial
\n
instruments balance
\n
0.0
\n
-
\n
1.7
\n
0
\n
952.1
\n
-
\n
989.3
\n
-
\n
38.9
\n
0
\n
-
\n
1.7
\n
0.0
\n
-1.7
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
\n \n
\n \n
\n
Notes:
\n
Level 1: quoted prices on an active market for the asset or liability being measured.
\n
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived
\n
from prices).
\n
Level 3: unobservable inputs for the asset or liability.
\n
As the above table shows, at the reporting date, there were no differences between the carrying amounts of financial
\n
instruments and the corresponding fair value. In particular, among the non-current financial assets, obligations are mainly
\n
stated at fair value.
\n
Current and non-current loans are at both fixed and floating rates and are recognised at their amortised cost.
\n
As already described in \u2018Note 3.11 \u2013 Current financial liabilities\u2019 and in \u2018Note 2.11 \u2013 Current financial assets\u2019 of these
\n
notes, current financial assets/liabilities include the fair value, at the end of the reporting period, of the derivative finan-
\n
cial instruments used to hedge the purchase of commodities (negative for \u20ac 0.6 million), exchange rates (negative for \u20ac
\n
2.0 million) and interest rates (positive for \u20ac 32.5 million).
\n
For details on these transactions, see the section \u201cHedging instruments\u201d.
\n
\n \n
\n \n \n
\n
The Group is exposed to operations related financial risks, including credit risk, liquidity risk and market risk, and con-
\n
stantly monitors them.
\n
The following section provides qualitative and quantitative information about the impact of these risks on the Group.
\n
\n \n
Financial instruments at fair value through OCI include fair value of derivatives mainly on interest rates, exchange rates
\n
and commodities for which the Group has applied the IFRS 9 Hedge Accounting
\n
\n
Note 1.11 \u2013 Profit (loss) on investments
\n
The item \u201cProfit (loss) on investments\u201d was positive for \u20ac 4.7 million, up by \u20ac 6.6 million compared with the previous year,
\n
mainly due to the remeasuring of the value of obligations relating to Put and Call options connected to acquisitions, with
\n
the recognition in the income statement of any valuation differences.
\n
As at 31 December 2022, the amount equal to \u20ac 4.9 million is mainly due to the Put and Call option execution of HTP
\n
Comfort Solutions LLC, now known as Ariston Thermo USA LLC. Refer to \u2018Note 3.13 - Other current liabilities\u2019 for further
\n
explanation.
\n
\n
Note 2.5 \u2013 Financial assets
\n
\u201cFinancial assets\u201d amounted to \u20ac 6.1 million at 31 December 2022, up by \u20ac 0.9 million compared to December 2021.
\n
This item mainly consists of the value of \u201cOther investments\u201d held for the medium/long-term, measured at fair value,
\n
since they are largely classified as \u201cFinancial instruments at fair value through profit or loss (FVTPL)\u201d.
\n
The increase during the period is mainly related to the investment in ThermoVault, held by Ariston Holding, for 12.22%
\n
of the entity\u2019s shares equal to \u20ac 1.1 million. The operation took place in November 2022. ThermoVault is a Belgian energy
\n
start-up that helps electricity consumers and utilities save money while allowing for the integration of more renewables.
\n
The company has developed an all-in software and hardware solution for energy services that retrofits residential cus-
\n
tomers\u2019 existing electric water and space heaters into energy-saving and lucrative grid-responsive energy storage devices.
\n
The other movements in the balance are due to the remeasurement, in accordance with IFRS 9, of the equity investment
\n
in an \u201cInvestment company in risk capital (SICAR) provision\u201d specialising in interventions in sectors where the Group
\n
operates, by the parent company Ariston Holding N.V.
\n
\n \n
\n
FINANCIAL INSTRUMENTS
\n
Below are the Group's financial instruments recognised by category and level of confidence of their fair value measure-
\n
ments at 31 December 2022:
\n
31.12.2022
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Available for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
liabil-
\n
ities at
\n
amortised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measured at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Finan
\n
cial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0.0
\n
0.0
\n
0.0
\n
999.3
\n
0.0
\n
999.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade re
\n
ceivables
\n
2.9
\n
0.0
\n
0.0
\n
0.0
\n
308.4
\n
0.0
\n
308.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current
\n
financial
\n
assets
\n
2.11
\n
0.0
\n
34.8
\n
0.0
\n
10.2
\n
2.0
\n
47.1
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial assets
\n
2.5
\n
0.0
\n
0.0
\n
0.0
\n
6.1
\n
0.0
\n
6.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
34.8
\n
0.0
\n
1,324.0
\n
2.0
\n
1,360
\n
.
\n
8
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial liabilities
\n
Trade
\n
payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
481.4
\n
481.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial lia-
\n
bilities
\n
3.11
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
44.8
\n
49.7
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Current
\n
loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
32.7
\n
32.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current
\n
financing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
865.2
\n
865.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
1,424.0
\n
1,428.8
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Financial instruments
\n
balance
\n
0.0
\n
30.0
\n
0.0
\n
1,324.0
\n
-1,422.0
\n
-68.0
\n
0.0
\n
30.0
\n
0.0
\n
30.0
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
The financial instruments of the Group, recognised in the financial statements with a similar breakdown at 31 December
\n
2021, are shown in the table below:
\n
31.12.2021
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Availa-
\n
ble for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
lia-
\n
bilities
\n
at
\n
amor-
\n
tised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measu
\n
red at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair
\n
value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Financial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
689.7
\n
0.0
\n
689.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade receivables
\n
2.9
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
248.3
\n
0.0
\n
248.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial
\n
assets
\n
2.11
\n
0
\n
.0
\n
0.8
\n
0.0
\n
9.0
\n
1.0
\n
10.8
\n
0
\n
.0
\n
0.8
\n
0
\n
.0
\n
0.8
\n
Financial assets
\n
2.5
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
5.2
\n
0
\n
.0
\n
5.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
0.8
\n
0.
\n
0
\n
952.1
\n
1.0
\n
95
\n
3.9
\n
0
\n
0.8
\n
0.0
\n
0.8
\n
Financial liabilities
\n
Trade payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
477.2
\n
477.2
\n
0.0
\n
0.0
\n
0.0
\n
0
\n
.0
\n
Current financial
\n
liabilities
\n
3.11
\n
0.0
\n
2.5
\n
0.0
\n
0.0
\n
43.6
\n
46.1
\n
0.0
\n
2.5
\n
0.0
\n
2.5
\n
Current loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
23.1
\n
23.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current financ-
\n
ing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
446.4
\n
446.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.
\n
0
\n
2.5
\n
0.0
\n
0.0
\n
990.3
\n
992.8
\n
0.
\n
0
\n
2.5
\n
0.0
\n
2.5
\n
Financial
\n
instruments balance
\n
0.0
\n
-
\n
1.7
\n
0
\n
952.1
\n
-
\n
989.3
\n
-
\n
38.9
\n
0
\n
-
\n
1.7
\n
0.0
\n
-1.7
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
\n \n
\n \n
\n \n
\n \n
\n
Notes:
\n
Level 1: quoted prices on an active market for the asset or liability being measured.
\n
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived
\n
from prices).
\n
Level 3: unobservable inputs for the asset or liability.
\n
As the above table shows, at the reporting date, there were no differences between the carrying amounts of financial
\n
instruments and the corresponding fair value. In particular, among the non-current financial assets, obligations are mainly
\n
stated at fair value.
\n
Current and non-current loans are at both fixed and floating rates and are recognised at their amortised cost.
\n
As already described in \u2018Note 3.11 \u2013 Current financial liabilities\u2019 and in \u2018Note 2.11 \u2013 Current financial assets\u2019 of these
\n
notes, current financial assets/liabilities include the fair value, at the end of the reporting period, of the derivative finan-
\n
cial instruments used to hedge the purchase of commodities (negative for \u20ac 0.6 million), exchange rates (negative for \u20ac
\n
2.0 million) and interest rates (positive for \u20ac 32.5 million).
\n
For details on these transactions, see the section \u201cHedging instruments\u201d.
\n
\n \n
\n \n \n
\n
The Group is exposed to operations related financial risks, including credit risk, liquidity risk and market risk, and con-
\n
stantly monitors them.
\n
The following section provides qualitative and quantitative information about the impact of these risks on the Group.
\n
\n \n
Financial instruments at fair value through OCI include fair value of derivatives mainly on interest rates, exchange rates
\n
and commodities for which the Group has applied the IFRS 9 Hedge Accounting
\n
\n \n
\n
Note 1.12 \u2013 Taxes
\n
Tax expense (income) and the related profit before tax for the years ended as at 31 December 2022 and 2021 consisted
\n
of the following:
\n
\n \n
\n
Taxes
\n
2022
\n
2021
\n
Delta
\n
(in \u20ac million)
\n
Profit before taxes
\n
179.8
\n
165.4
\n
14.4
\n
Current taxes
\n
41.3
\n
54.7
\n
-13.4
\n
Deferred taxes
\n
-1.7
\n
-25.6
\n
23.9
\n
Total taxes
\n
39.5
\n
29.1
\n
10.4
\n
The 2022 current taxes show a decrease of \u20ac 13.4 million compared to 2021 current taxes. This is due to the fact that
\n
2021 current taxes were negatively impacted by the 3% substitute tax arising from the revaluation of tangible and intan-
\n
gible assets carried out in Italy for Local GAAP and tax purposes pursuant to art. 110 of the Law Decree no. 104/2020,
\n
converted in Law no. 126/2020 equal to \u20ac 19.4 million. Without the 2021 negative impact, current taxes show an increase
\n
of \u20ac 6.0 million mainly due to the increase of the profit before taxes. Current taxes also include an amount of \u20ac 1.1 million
\n
of taxes related to prior years.
\n
The reduction of \u20ac 23.9 million in deferred tax assets is mainly due to the impact of the revaluation of tangible and
\n
intangible assets carried out in Italy for Local GAAP and tax purposes in the 2021 financial statements. The revaluation
\n
and its related tax effects had a positive net impact on deferred taxes equal to \u20ac 29.2 million in 2021. Deferred tax liabil-
\n
ities also include an amount of \u20ac1.2 million related to prior years.
\n
Ariston Holding N.V. is incorporated in the Netherlands but is a tax resident of Italy. The reconciliation of the differences
\n
between the theoretical income taxes at the parent local rate and the total income taxes is presented based on the Italian
\n
local corporation income tax rate in force in 2022 of 24%. A reconciliation of Ariston\u2019s income tax expense for the years
\n
ended as at 31 December 2022 is as follows:
\n
Effective tax rate reconciliation
\n
2022
\n
%
\n
(in \u20ac million)
\n
Taxes at nominal Tax Rate
\n
43.2
\n
24.0%
\n
Foreign income taxed at different rates
\n
-3.5
\n
-1.9%
\n
Deferred taxes not recognized and write down
\n
2.1
\n
1.2%
\n
Italian IRAP
\n
5.5
\n
3.1%
\n
Recognition or use of previously unrecognized DTA
\n
-1.6
\n
-0.9%
\n
Permanent differences
\n
-1.7
\n
-1.0%
\n
Italian revaluation
\n
-7.2
\n
-4.0%
\n
Prior year taxes
\n
2.3
\n
1.3%
\n
Other
\n
0.5
\n
0.3%
\n
Effective Taxes Charge
\n
39.5
\n
22.0%
\n
For comparative purposes, here below is shown a reconciliation of Ariston\u2019s income tax expense for the year ended as at
\n
31 December 2021:
\n
Effective tax rate reconciliation
\n
(in million \u20ac)
\n
2021
\n
%
\n
Taxes at nominal Tax Rate
\n
39.7
\n
24.0%
\n
Revaluation effect
\n
-14.5
\n
-8.8%
\n
IRAP
\n
5.0
\n
3.0%
\n
Tax benefits recorded in Italy
\n
-2.0
\n
-1.2%
\n
Foreign income taxed at different rates
\n
-1.8
\n
-1.1%
\n
Net Deferred taxes not recognized on losses
\n
1.4
\n
0.8%
\n
Other
\n
1.4
\n
0.9%
\n
Effective Taxes
\n
29.1
\n
17.6%
\n
\n \n
\n
The 2022 effective tax rate is positively impacted by the on-going net benefit connected to the revaluation of tangible
\n
and intangible assets carried out for both Local GAAP and tax purposes in Italy in 2021. In addition to the initial positive
\n
impact of the revaluation accrued in the 2021 financial statements and equal to the expected tax benefit for the first five-
\n
year business plan, in the 2022 financial statement the expected benefit for the additional year of the new five-year
\n
business plan period has been recognized positively impacting the tax rate. The on-going net benefit connected to the
\n
revaluation for the 2022 financial year is equal to \u20ac 7.2 million or to 4% in terms of tax rate.
\n
Among the main drivers of the tax rate, IRAP, the Italian local business tax, negatively impacted the tax rate for 3.1% and
\n
the tax rate differential deriving from the nominal differential in the various jurisdiction in which the Group operates
\n
positively impacted the tax rate for 1.9%.
\n
\n
Notes 2.4 \u2013 Deferred tax assets and liabilities
\n
The deferred tax assets and liabilities show a net balance of \u20ac 39.4 million, with a \u20ac 12.2 million decrease in respect to
\n
2021. The decrease in the net balance is driven by the increase of the deferred tax liabilities of \u20ac 10.9 million mainly due
\n
to Chromagen acquisition equal to \u20ac 2.8 million and to the recognition of deferred taxes related to the hedging and
\n
foreign exchange effects equal to \u20ac 8.1 million.
\n
\n
The components of net deferred tax assets as at 31 December 2022 are as follows:
\n
Deferred tax assets
\n
(in \u20ac million)
\n
2021
\n
P&L
\n
Equity
\n
Translation
\n
Differences
\n
2022
\n
Trade & Patents
\n
20.7
\n
-0.2
\n
20.5
\n
R&D/Software
\n
7.6
\n
7.6
\n
Tangible fixed assets
\n
18.7
\n
-1.7
\n
17.0
\n
Provision for warranties
\n
6.6
\n
4.1
\n
-0.1
\n
10.7
\n
Provision for other risks and charges
\n
14.0
\n
-0.6
\n
0.6
\n
14.0
\n
Employees benefits
\n
8.7
\n
-1.0
\n
-1.0
\n
6.8
\n
Inventory write-off
\n
1.8
\n
1.5
\n
-0.1
\n
3.3
\n
Losses
\n
7.2
\n
-3.3
\n
0.2
\n
4.1
\n
Timing differences on costs deduction
\n
4.9
\n
-0.3
\n
0.5
\n
5.1
\n
Other
\n
12.1
\n
-1.9
\n
1.8
\n
0.1
\n
12.1
\n
TOTAL
\n
102.4
\n
-3.3
\n
0.8
\n
1.2
\n
101.2
\n
8
\n
Deferred tax liabilities
\n
(in \u20ac million)
\n
2021
\n
P&L
\n
Equity
\n
Translation
\n
Differences
\n
2022
\n
Provision for warranties
\n
1.2
\n
1.2
\n
Provision for other risks and charges
\n
3.5
\n
0.2
\n
-0.1
\n
3.6
\n
Employees benefits
\n
1.1
\n
0.4
\n
0.1
\n
1.6
\n
Tangible and intangible fixed assets
\n
16.7
\n
-3.7
\n
0.8
\n
13.9
\n
Exchange effects and hedging
\n
2.0
\n
0.4
\n
8.1
\n
10.5
\n
Reversal of timing adjustments
\n
4.1
\n
-0.1
\n
0.1
\n
4.1
\n
Distribution of earnings
\n
16.2
\n
0.6
\n
16.8
\n
Other
\n
5.9
\n
-2.8
\n
6.8
\n
0.2
\n
10.1
\n
TOTAL
\n
50.8
\n
-5.0
\n
14.9
\n
1.1
\n
61.8
\n
The deferred tax assets due to the revaluation is mainly included in the trademarks and patents, software and tangible
\n
assets. The decrease of the deferred tax assets related to the revaluation is equal to \u20ac 1.8 million.
\n
The deferred tax assets on losses carry forward is equal to \u20ac 4.1 million. The decision to recognize deferred tax assets is
\n
made for each legal entity in the Group by critically assessing whether the conditions exist for the future recoverability
\n
of such assets on the basis of actual results, as well as updated plans.
\n
Starting from 2021, a deferred tax liability on the undistributed earnings in Ariston subsidiaries is recorded equal to the
\n
expected tax burden on the remittance of earnings from those jurisdictions The amount of the deferred tax liabilities on
\n
undistributed earnings recorded in 2022 is equal to \u20ac 16.8 million.
\n
Ariston recognizes in its consolidated statement of financial position within Deferred tax assets, the amount of deferred
\n
tax assets less the deferred tax liabilities of the individual consolidated legal entities, where these may be offset.
\n
\n
Note 2.7 \u2013 Non-current tax receivables
\n
\u201cNon-current tax receivables\u201d amounted to \u20ac 2.1 million as 31 December 2022, slightly up on \u20ac 0.9 million in the same
\n
period of 2021. The item includes receivables from tax authorities payable to the Group.
\n
\n
Note 2.10 \u2013 Tax receivables
\n
The item \u201cTax receivables\u201d includes primarily the amounts due to the companies of the Group from the taxation author-
\n
ities in several countries where the Group operates. At 31 December 2022, the item amounted to \u20ac 28.4 million versus \u20ac
\n
29.8 million in 2021, mainly due to:
\n
Tax receivables
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Tax receivables for taxes paid in excess
\n
16.7
\n
13.3
\n
Tax receivables from Parent company
\n
7.1
\n
13.8
\n
Other short-term tax receivables
\n
4.6
\n
2.7
\n
Total
\n
28.4
\n
29.8
\n
Ariston Holding N.V. is incorporated in the Netherlands but is a tax resident of Italy and is controlled by Merloni Holding
\n
S.p.A.. Ariston Holding N.V. and its Italian subsidiaries have adopted the national tax consolidation scheme. At 31 Decem-
\n
ber 2022, the individual Italian companies' income tax receivables and payables were recorded from or to, respectively,
\n
Merloni Holding S.p.A.. These amounts are included in the \u201cTax receivables\u201d from the controlling shareholder for tax
\n
consolidation. The decrease amounts to \u20ac 6.7 million mainly derives from lower tax losses realized in Italy in 2022.
\n
\n \n
\n
Notes 3.2 \u2013 Deferred tax liabilities
\n
Comments on \u201cDeferred tax liabilities\u201d are included in the note 2.4 - \u201cDeferred tax assets and liabilities\u201d, to which refer-
\n
ence should be made.
\n
\n \n
\n \n
\n
Note 3.7 \u2013 Non-current tax liabilities
\n
\u201cNon-current tax liabilities\u201d amounted to \u20ac 1.8 million as 31 December 2022 down by for \u20ac 6.0 million compared to the
\n
amount as at 31 December 2021. The decrease was mainly due to reclassification to \u201cTax payables\u201d of \u20ac 6.5 million related
\n
to the third payment of substitute income tax (overall equal to 3% of the accounting revaluation carried out in the local
\n
financial statements of Italian companies), payment of which shall be made within the deadline for paying the balance of
\n
income taxes for tax period 2023.
\n
\n \n
\n \n
\n
Note 3.9 \u2013 Tax payables
\n
\u201cTax payables\u201d amounted to \u20ac 53.0 million versus \u20ac 45.1 million in 2021.
\n
\n \n
\n \n
\n
Tax payables
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Income tax payables
\n
30.5
\n
27.2
\n
Tax payables due to Parent company
\n
13.6
\n
10.4
\n
Other tax payables
\n
8.8
\n
7.5
\n
Total
\n
53.0
\n
45.1
\n
This item includes the income tax payables related to Italian and foreign companies. The increase in tax payable in 2022
\n
is mainly reflected in the increase in the business performance occurred during the year.
\n
Ariston Holding N.V. is incorporated in the Netherlands but is a tax resident of Italy and is controlled by Merloni Holding
\n
S.p.A.. Ariston Holding N.V. and its Italian subsidiaries have adopted the national tax consolidation scheme. At 31 Decem-
\n
ber 2022, the individual Italian companies' income tax receivables and payables were recorded from or to, respectively,
\n
Merloni Holding S.p.A.. These amounts are included in the \u201cTax payables\u201d due to the controlling shareholder for tax
\n
consolidation.
\n
\n \n
\n
Note 1.13 \u2013 Basic and diluted earnings per share
\n
Basic earnings per share are determined as the ratio of the Group\u2019s portion of net profits for the year to the weighted
\n
average number of ordinary shares outstanding during the year. The Group\u2019s treasury shares are included in this calcula-
\n
tion for year 2022. Diluted earnings per share are determined taking the potential effect resulting from options allocated
\n
to beneficiaries of dilutive stock option plans into account in the calculation of the number of outstanding shares.
\n
Basic earnings per share at 31 December 2022 amounted to \u20ac 0.43 and are calculated by dividing the net profit for the
\n
year attributable to the ordinary shareholders of the Parent Company, of \u20ac 140.3 million, by the number of total shares
\n
\u2013 ordinary and multiple voting \u2013 outstanding during the period, that is
\n
329,827,838.
\n
Diluted earnings per share amounted to \u20ac 0.42 and are calculated by dividing the net profit for the year attributable to
\n
the ordinary shareholders of the Parent Company, of \u20ac 140.3 million, by the number of total shares that is 330,959,027.
\n
Basic and diluted earnings per share are calculated as shown in the table below.
\n
2022
\n
2021
\n
Net profit attributable to ordinary shareholders
\n
\u20ac million
\n
140.3
\n
136.5
\n
Weighted average of ordinary shares outstanding
\n
number
\n
329,827,838
\n
293,140,244
\n
Basic earnings per share
\n
\u20ac
\n
0.43
\n
0.47
\n
Net profit attributable to ordinary shares outstanding net of dilution
\n
\u20ac million
\n
140.3
\n
136.5
\n
Weighted average of ordinary shares outstanding
\n
number
\n
329,827,838
\n
293,140,244
\n
Potential shares to be issued for LTI plan
\n
number
\n
1,131,189
\n
2,329,735
\n
Weighted average of ordinary shares outstanding net of dilution
\n
number
\n
330,959,027
\n
295,469,979
\n
Diluted earnings per share
\n
\u20ac
\n
0.42
\n
0.46
\n
\n \n
\n \n
\n
Note 2.1 \u2013 Intangible assets
\n
At 31 December 2022, \u201cIntangible assets\u201d amounted to \u20ac 442.6 million, increased by a net \u20ac 34.8 million compared to 31
\n
December 2021, net of the amortisation expense for the period of \u20ac 24.2 million, in addition to other changes.
\n \n
\n
The amortisation expense for the period is recognised under the appropriate item in the income statement.
\n
Changes during the period are shown in the table below:
\n
Intangible assets
\n
Goodwill
\n
Other int. assets
\n
Total
\n
(in \u20ac million)
\n
Net value
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
294.8
\n
212.2
\n
-99.2
\n
113.0
\n
507.0
\n
-99.2
\n
407.8
\n
Perimeter variation
\n
13.4
\n
13.6
\n
-2.2
\n
11.4
\n
27.0
\n
-2.2
\n
24.9
\n
Increases
\n
0.0
\n
21.0
\n
0.0
\n
21.0
\n
21.0
\n
0.0
\n
21.0
\n
Decreases
\n
0.0
\n
-0.7
\n
0.0
\n
-0.7
\n
-0.7
\n
0.0
\n
-0.7
\n
Remeasurements and Impairment
\n
0.0
\n
3.8
\n
-3.8
\n
0.0
\n
3.8
\n
-3.8
\n
0.0
\n
Amortisation
\n
0.0
\n
0.0
\n
-24.2
\n
-24.2
\n
0.0
\n
-24.2
\n
-24.2
\n
Exchange rate effect
\n
8.2
\n
3.7
\n
-1.1
\n
2.6
\n
11.9
\n
-1.1
\n
10.8
\n
Other
\n
-3.8
\n
4.1
\n
2.7
\n
6.8
\n
0.3
\n
2.7
\n
3.0
\n
Total changes
\n
17.9
\n
45.5
\n
-28.6
\n
16.9
\n
63.4
\n
-28.6
\n
34.8
\n
As at 31.12.2022
\n
312.7
\n
257.7
\n
-127.8
\n
129.9
\n
570.4
\n
-127.8
\n
442.6
\n
\n \n
The net total amount of the goodwill was \u20ac 312.7 million, versus \u20ac 294.8 million at 2021 year-end, and shows a change
\n
largely due to:
\n
-
\n
Goodwill arising from the business combination with Chromagen. The total is equal to \u20ac 13.4 million. Refer to
\n
\u2018Note 2.1.1 \u2013 Business combinations\u2019 for further details.
\n
\n \n \n
\n
-
\n
Write-down of the \u201cOther intangible assets\u201d for \u20ac 3.8 million is related to the acquisition of Kesselheld GMBH,
\n
acquired by Ariston Group in 2020. The write-down is due to the ceasing of its current core activity of generating,
\n
mediating and approving orders and leads for heating installers and manufacturers. There is a plan to modify
\n
the core activity of the subsidiary. This amount was reclassified from \u201cGoodwill\u201d to \u201cOther intangible assets\u201d.
\n
\n \n \n
\n
-
\n
The changes in exchange rates, positive for \u20ac 8.2 million.
\n
The total amount of goodwill recognised in the statement of financial position is not amortised but is subject at least
\n
annually to an impairment test (together with the other intangible and tangible assets) to assess its recoverability, as
\n
envisaged by IAS 36.
\n
Therefore, the goodwill has been allocated to the cash generating units (CGU) from which future economic benefits re-
\n
lated to the acquisition are expected.
\n
Consequently, at 31 December 2022, the impairment test was carried out as described hereinafter.
\n \n
\n
Impairment test
\n
In compliance with IAS 38 and IAS 36 at least on a yearly basis the Group verifies the recoverable value of intangible assets
\n
with indefinite life (included Trademarks), the values were tested at aggregate level based on the values allocated to the
\n
three cash-generating units (CGUs), identified as the lowest level at which the Goodwill is monitored by the Group and is
\n
considered appropriate, given the synergies and efficiencies obtained.
\n
The reference CGUs are the three divisions within a unique segment unit of reporting: Thermal Comfort (TC), Burners
\n
(BUR), and Components (COM).
\n
In line with previous years, the Group has considered the long-term business plan, that includes the latest available fi-
\n
nancials from 3 years plan 2023 - 2025 which are approved by Board of Directors, as base for the impairment test.
\n
The net book values of the CGUs were determined by allocating, in addition to goodwill, the brand values, the fixed assets
\n
and working capital, allocated on the basis of the relevant sales achieved in each CGU.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
The recoverable amounts of the CGUs were determined based on a \u2018value in use\u2019 methodology, discounting the estimated
\n
future cash flows generated by the use of the assets calculating the Terminal Value with the perpetuity growth method
\n
of discounting.
\n
Procedure of intangibles assets impairment test
\n
The CGUs are three and are denominated as Thermal Comfort, Burners and Components.
\n
The Group, following a prudent approach, has used as discount rate the Weighted Average Cost of Capital (WACC). Such
\n
rate was calculated on the base of observable indicators and market parameters, including a specific risk connected to
\n
the business and the size of the Group (source: Damodaran and Duff & Phelps).
\n
The calculated rate has been compared with a set of comparable peer competitors.
\n
The rates used in the impairment test are reported in \u201cAssumptions related to the impairment plan\u201d.
\n
The Growth rate used to calculate the Terminal Value has been obtained by weighting the GDP growth rate at constant
\n
prices of the market in which the Group operates, to the revenues obtained in such markets.
\n
Such GDP growth rate has been obtained from an international authoritative source (i.e. IMF, October 2022 release).
\n
The Group performed additional stress tests to assess its capacity to resist any further market shock.
\n
The stress tests consisted in a reduction of 5%, 10% and 15% in EBIDA and Capex over the entire test period and for all
\n
markets and brands. Each test was performed on a stand-alone basis.
\n
These tests have been performed in addition to the sensitivity test required by the Standards.
\n
Due to the steep increase in interest rates and inflation in 2022, the Group has decided to increase the WACC by an
\n
absolute maximum of one percent and to decrease the Growth Rate by an absolute maximum of one percent.
\n
Assumptions related to the impairment plan
\n
The main assumptions formulated for the preparation of the impairment test are the following:
\n
\u2022
\n
Net invested capital by CGU (in thousand euro): TC 1,049,988, BUR 50,249, COM 39,293
\n
\u2022
\n
Goodwill by CGU (in thousand euro): TC 294,688, BUR 12,486, COM 5,500
\n
\u2022
\n
Growth rate by CGU: TC 1.9%, BUR 1.1%, COM 1.1%
\n
\u2022
\n
WACC (weighted average cost of capital) by CGU: TC 10.8%, BUR 10.5%, COM 11.4%
\n
Impairment test results
\n
The Group calculated the headroom breakeven point through both the WACC percentage increase and the cash flow
\n
percentage decrease (in order to make it nil).
\n
For the reporting period the results are, within the planned horizon:
\n
\u2022
\n
WACC percentage increase for each division more than 100%;
\n
\u2022
\n
Cash Flow percentage decrease: Thermal Comfort 34.0%, Burners 50.8%, Components 71.4%.
\n
Based on the analyses conducted under the above assumptions considering the economic and financial impacts resulting
\n
from the actions carried out by the Group in order to be in compliance with climate changes regulations, and also a
\n
sensitivity analysis of WACC and the Growth rate beyond the specific planning timeframe. The Group can confirm the
\n
adequacy of the reported amounts.
\n
\n \n
\n \n \n
\n
The item \u201cOther intangible assets\u201d can be detailed as follows:
\n
Other intangible assets
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Concessions, licenses, trademarks
\n
49.2
\n
43.8
\n
Intangible assets in progress
\n
23.7
\n
19.3
\n
Development costs
\n
17.5
\n
18.7
\n
Software
\n
17.5
\n
16.5
\n
Other
\n
22.1
\n
14.6
\n
Total
\n
129.9
\n
113.0
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Details of and changes in \u201cOther intangible assets\u201d are the following:
\n
Other intangible
\n
assets
\n
Development costs
\n
Software
\n
Other Intangible Assets
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
68.0
\n
-49.3
\n
18.7
\n
48.8
\n
-32.3
\n
16.5
\n
95.4
\n
-17.7
\n
77.7
\n
212.2
\n
-99.2
\n
113.0
\n
Perimeter variation
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
-0.1
\n
0.0
\n
13.5
\n
-2.1
\n
11.4
\n
13.6
\n
-2.2
\n
11.4
\n
Increases
\n
2.8
\n
0.0
\n
2.8
\n
0.6
\n
0.0
\n
0.6
\n
17.7
\n
0.0
\n
17.7
\n
21.0
\n
0.0
\n
21.0
\n
Decreases
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.7
\n
0.0
\n
-0.7
\n
-0.7
\n
0.0
\n
-0.7
\n
Amortisation
\n
0.0
\n
-7.3
\n
-7.3
\n
0.0
\n
-8.2
\n
-8.2
\n
0.0
\n
-8.7
\n
-8.7
\n
0.0
\n
-24.2
\n
-24.2
\n
Exchange rate effect
\n
0.2
\n
-0.2
\n
0.1
\n
0.3
\n
-0.2
\n
0.1
\n
3.1
\n
-0.8
\n
2.4
\n
3.7
\n
-1.1
\n
2.6
\n
Other
\n
4.0
\n
-0.9
\n
3.1
\n
5.6
\n
2.9
\n
8.5
\n
-5.5
\n
0.7
\n
-4.8
\n
4.1
\n
2.7
\n
6.8
\n
Total changes
\n
7.1
\n
-8.4
\n
-1.3
\n
6.6
\n
-5.6
\n
1.0
\n
28.1
\n
-10.9
\n
17.2
\n
41.8
\n
-24.8
\n
16.9
\n
As at 31.12.2022
\n
75.1
\n
-57.6
\n
17.5
\n
55.4
\n
-37.8
\n
17.5
\n
123.5
\n
-28.6
\n
95.0
\n
254.0
\n
-124.0
\n
129.9
\n
\n \n
\n \n
Since the trademark has an indefinite useful life, it is subject to impairment test.
\n
The other intangible assets have a definite useful life and are consequently amortised as necessary.
\n
The change in \u201cOther intangible assets\u201d from the start of the period amounted to \u20ac 16.9 million and was primarily due to
\n
the perimeter variation related to Chromagen business combination, investments for the period and exchange rate ef-
\n
fects which were not fully offset by \u20ac 24.2 million in amortisation for the period.
\n \n
\n
Development costs refer to products for which the return on investments occurs within a five-year period, on average.
\n
The capitalised costs for the period, attributable only to product development projects, amounted to \u20ac 7.5 million (\u20ac 7.1
\n
million in 2021) out of a total of \u20ac 17.5 million (\u20ac 18.7 million in 2021) reported in the financial statements.
\n
The Group evaluated the development costs related to products based on the criteria outlined in the Climate Delegated
\n
Act only for objective mitigation to climate change.
\n
As evidence of the commitment to promote a more efficient and
\n
renewable product portfolio, these investments have been capitalized. The Group impaired the depreciation charged to
\n
income statement against the products\u2019 sales.
\n
In order to determine the loss in value of capitalised development costs, in addition to the assessment of the economic
\n
return from each development projects, the Group arranged to allocate them to the Net capital employed of the related
\n
CGUs and assesses their recoverability together with the related tangible assets, determining their value in use with the
\n
discounted cash flow method.
\n
\n \n
\n \n
\n \n
\n
Note 2.1 \u2013 Intangible assets
\n
At 31 December 2022, \u201cIntangible assets\u201d amounted to \u20ac 442.6 million, increased by a net \u20ac 34.8 million compared to 31
\n
December 2021, net of the amortisation expense for the period of \u20ac 24.2 million, in addition to other changes.
\n \n
\n
The amortisation expense for the period is recognised under the appropriate item in the income statement.
\n
Changes during the period are shown in the table below:
\n
Intangible assets
\n
Goodwill
\n
Other int. assets
\n
Total
\n
(in \u20ac million)
\n
Net value
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
294.8
\n
212.2
\n
-99.2
\n
113.0
\n
507.0
\n
-99.2
\n
407.8
\n
Perimeter variation
\n
13.4
\n
13.6
\n
-2.2
\n
11.4
\n
27.0
\n
-2.2
\n
24.9
\n
Increases
\n
0.0
\n
21.0
\n
0.0
\n
21.0
\n
21.0
\n
0.0
\n
21.0
\n
Decreases
\n
0.0
\n
-0.7
\n
0.0
\n
-0.7
\n
-0.7
\n
0.0
\n
-0.7
\n
Remeasurements and Impairment
\n
0.0
\n
3.8
\n
-3.8
\n
0.0
\n
3.8
\n
-3.8
\n
0.0
\n
Amortisation
\n
0.0
\n
0.0
\n
-24.2
\n
-24.2
\n
0.0
\n
-24.2
\n
-24.2
\n
Exchange rate effect
\n
8.2
\n
3.7
\n
-1.1
\n
2.6
\n
11.9
\n
-1.1
\n
10.8
\n
Other
\n
-3.8
\n
4.1
\n
2.7
\n
6.8
\n
0.3
\n
2.7
\n
3.0
\n
Total changes
\n
17.9
\n
45.5
\n
-28.6
\n
16.9
\n
63.4
\n
-28.6
\n
34.8
\n
As at 31.12.2022
\n
312.7
\n
257.7
\n
-127.8
\n
129.9
\n
570.4
\n
-127.8
\n
442.6
\n
\n \n
The net total amount of the goodwill was \u20ac 312.7 million, versus \u20ac 294.8 million at 2021 year-end, and shows a change
\n
largely due to:
\n
-
\n
Goodwill arising from the business combination with Chromagen. The total is equal to \u20ac 13.4 million. Refer to
\n
\u2018Note 2.1.1 \u2013 Business combinations\u2019 for further details.
\n
\n \n \n
\n
-
\n
Write-down of the \u201cOther intangible assets\u201d for \u20ac 3.8 million is related to the acquisition of Kesselheld GMBH,
\n
acquired by Ariston Group in 2020. The write-down is due to the ceasing of its current core activity of generating,
\n
mediating and approving orders and leads for heating installers and manufacturers. There is a plan to modify
\n
the core activity of the subsidiary. This amount was reclassified from \u201cGoodwill\u201d to \u201cOther intangible assets\u201d.
\n
\n \n \n
\n
-
\n
The changes in exchange rates, positive for \u20ac 8.2 million.
\n
The total amount of goodwill recognised in the statement of financial position is not amortised but is subject at least
\n
annually to an impairment test (together with the other intangible and tangible assets) to assess its recoverability, as
\n
envisaged by IAS 36.
\n
Therefore, the goodwill has been allocated to the cash generating units (CGU) from which future economic benefits re-
\n
lated to the acquisition are expected.
\n
Consequently, at 31 December 2022, the impairment test was carried out as described hereinafter.
\n \n
\n
Impairment test
\n
In compliance with IAS 38 and IAS 36 at least on a yearly basis the Group verifies the recoverable value of intangible assets
\n
with indefinite life (included Trademarks), the values were tested at aggregate level based on the values allocated to the
\n
three cash-generating units (CGUs), identified as the lowest level at which the Goodwill is monitored by the Group and is
\n
considered appropriate, given the synergies and efficiencies obtained.
\n
The reference CGUs are the three divisions within a unique segment unit of reporting: Thermal Comfort (TC), Burners
\n
(BUR), and Components (COM).
\n
In line with previous years, the Group has considered the long-term business plan, that includes the latest available fi-
\n
nancials from 3 years plan 2023 - 2025 which are approved by Board of Directors, as base for the impairment test.
\n
The net book values of the CGUs were determined by allocating, in addition to goodwill, the brand values, the fixed assets
\n
and working capital, allocated on the basis of the relevant sales achieved in each CGU.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
The recoverable amounts of the CGUs were determined based on a \u2018value in use\u2019 methodology, discounting the estimated
\n
future cash flows generated by the use of the assets calculating the Terminal Value with the perpetuity growth method
\n
of discounting.
\n
Procedure of intangibles assets impairment test
\n
The CGUs are three and are denominated as Thermal Comfort, Burners and Components.
\n
The Group, following a prudent approach, has used as discount rate the Weighted Average Cost of Capital (WACC). Such
\n
rate was calculated on the base of observable indicators and market parameters, including a specific risk connected to
\n
the business and the size of the Group (source: Damodaran and Duff & Phelps).
\n
The calculated rate has been compared with a set of comparable peer competitors.
\n
The rates used in the impairment test are reported in \u201cAssumptions related to the impairment plan\u201d.
\n
The Growth rate used to calculate the Terminal Value has been obtained by weighting the GDP growth rate at constant
\n
prices of the market in which the Group operates, to the revenues obtained in such markets.
\n
Such GDP growth rate has been obtained from an international authoritative source (i.e. IMF, October 2022 release).
\n
The Group performed additional stress tests to assess its capacity to resist any further market shock.
\n
The stress tests consisted in a reduction of 5%, 10% and 15% in EBIDA and Capex over the entire test period and for all
\n
markets and brands. Each test was performed on a stand-alone basis.
\n
These tests have been performed in addition to the sensitivity test required by the Standards.
\n
Due to the steep increase in interest rates and inflation in 2022, the Group has decided to increase the WACC by an
\n
absolute maximum of one percent and to decrease the Growth Rate by an absolute maximum of one percent.
\n
Assumptions related to the impairment plan
\n
The main assumptions formulated for the preparation of the impairment test are the following:
\n
\u2022
\n
Net invested capital by CGU (in thousand euro): TC 1,049,988, BUR 50,249, COM 39,293
\n
\u2022
\n
Goodwill by CGU (in thousand euro): TC 294,688, BUR 12,486, COM 5,500
\n
\u2022
\n
Growth rate by CGU: TC 1.9%, BUR 1.1%, COM 1.1%
\n
\u2022
\n
WACC (weighted average cost of capital) by CGU: TC 10.8%, BUR 10.5%, COM 11.4%
\n
Impairment test results
\n
The Group calculated the headroom breakeven point through both the WACC percentage increase and the cash flow
\n
percentage decrease (in order to make it nil).
\n
For the reporting period the results are, within the planned horizon:
\n
\u2022
\n
WACC percentage increase for each division more than 100%;
\n
\u2022
\n
Cash Flow percentage decrease: Thermal Comfort 34.0%, Burners 50.8%, Components 71.4%.
\n
Based on the analyses conducted under the above assumptions considering the economic and financial impacts resulting
\n
from the actions carried out by the Group in order to be in compliance with climate changes regulations, and also a
\n
sensitivity analysis of WACC and the Growth rate beyond the specific planning timeframe. The Group can confirm the
\n
adequacy of the reported amounts.
\n
\n \n
\n \n \n
\n
The item \u201cOther intangible assets\u201d can be detailed as follows:
\n
Other intangible assets
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Concessions, licenses, trademarks
\n
49.2
\n
43.8
\n
Intangible assets in progress
\n
23.7
\n
19.3
\n
Development costs
\n
17.5
\n
18.7
\n
Software
\n
17.5
\n
16.5
\n
Other
\n
22.1
\n
14.6
\n
Total
\n
129.9
\n
113.0
\n
\n \n
\n \n
\n \n
\n \n
\n
Details of and changes in \u201cOther intangible assets\u201d are the following:
\n
Other intangible
\n
assets
\n
Development costs
\n
Software
\n
Other Intangible Assets
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
68.0
\n
-49.3
\n
18.7
\n
48.8
\n
-32.3
\n
16.5
\n
95.4
\n
-17.7
\n
77.7
\n
212.2
\n
-99.2
\n
113.0
\n
Perimeter variation
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
-0.1
\n
0.0
\n
13.5
\n
-2.1
\n
11.4
\n
13.6
\n
-2.2
\n
11.4
\n
Increases
\n
2.8
\n
0.0
\n
2.8
\n
0.6
\n
0.0
\n
0.6
\n
17.7
\n
0.0
\n
17.7
\n
21.0
\n
0.0
\n
21.0
\n
Decreases
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.7
\n
0.0
\n
-0.7
\n
-0.7
\n
0.0
\n
-0.7
\n
Amortisation
\n
0.0
\n
-7.3
\n
-7.3
\n
0.0
\n
-8.2
\n
-8.2
\n
0.0
\n
-8.7
\n
-8.7
\n
0.0
\n
-24.2
\n
-24.2
\n
Exchange rate effect
\n
0.2
\n
-0.2
\n
0.1
\n
0.3
\n
-0.2
\n
0.1
\n
3.1
\n
-0.8
\n
2.4
\n
3.7
\n
-1.1
\n
2.6
\n
Other
\n
4.0
\n
-0.9
\n
3.1
\n
5.6
\n
2.9
\n
8.5
\n
-5.5
\n
0.7
\n
-4.8
\n
4.1
\n
2.7
\n
6.8
\n
Total changes
\n
7.1
\n
-8.4
\n
-1.3
\n
6.6
\n
-5.6
\n
1.0
\n
28.1
\n
-10.9
\n
17.2
\n
41.8
\n
-24.8
\n
16.9
\n
As at 31.12.2022
\n
75.1
\n
-57.6
\n
17.5
\n
55.4
\n
-37.8
\n
17.5
\n
123.5
\n
-28.6
\n
95.0
\n
254.0
\n
-124.0
\n
129.9
\n
\n \n
\n \n
Since the trademark has an indefinite useful life, it is subject to impairment test.
\n
The other intangible assets have a definite useful life and are consequently amortised as necessary.
\n
The change in \u201cOther intangible assets\u201d from the start of the period amounted to \u20ac 16.9 million and was primarily due to
\n
the perimeter variation related to Chromagen business combination, investments for the period and exchange rate ef-
\n
fects which were not fully offset by \u20ac 24.2 million in amortisation for the period.
\n \n
\n
Development costs refer to products for which the return on investments occurs within a five-year period, on average.
\n
The capitalised costs for the period, attributable only to product development projects, amounted to \u20ac 7.5 million (\u20ac 7.1
\n
million in 2021) out of a total of \u20ac 17.5 million (\u20ac 18.7 million in 2021) reported in the financial statements.
\n
The Group evaluated the development costs related to products based on the criteria outlined in the Climate Delegated
\n
Act only for objective mitigation to climate change.
\n
As evidence of the commitment to promote a more efficient and
\n
renewable product portfolio, these investments have been capitalized. The Group impaired the depreciation charged to
\n
income statement against the products\u2019 sales.
\n
In order to determine the loss in value of capitalised development costs, in addition to the assessment of the economic
\n
return from each development projects, the Group arranged to allocate them to the Net capital employed of the related
\n
CGUs and assesses their recoverability together with the related tangible assets, determining their value in use with the
\n
discounted cash flow method.
\n
\n \n
\n
Note 2.1 \u2013 Intangible assets
\n
At 31 December 2022, \u201cIntangible assets\u201d amounted to \u20ac 442.6 million, increased by a net \u20ac 34.8 million compared to 31
\n
December 2021, net of the amortisation expense for the period of \u20ac 24.2 million, in addition to other changes.
\n \n
\n
The amortisation expense for the period is recognised under the appropriate item in the income statement.
\n
Changes during the period are shown in the table below:
\n
Intangible assets
\n
Goodwill
\n
Other int. assets
\n
Total
\n
(in \u20ac million)
\n
Net value
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
294.8
\n
212.2
\n
-99.2
\n
113.0
\n
507.0
\n
-99.2
\n
407.8
\n
Perimeter variation
\n
13.4
\n
13.6
\n
-2.2
\n
11.4
\n
27.0
\n
-2.2
\n
24.9
\n
Increases
\n
0.0
\n
21.0
\n
0.0
\n
21.0
\n
21.0
\n
0.0
\n
21.0
\n
Decreases
\n
0.0
\n
-0.7
\n
0.0
\n
-0.7
\n
-0.7
\n
0.0
\n
-0.7
\n
Remeasurements and Impairment
\n
0.0
\n
3.8
\n
-3.8
\n
0.0
\n
3.8
\n
-3.8
\n
0.0
\n
Amortisation
\n
0.0
\n
0.0
\n
-24.2
\n
-24.2
\n
0.0
\n
-24.2
\n
-24.2
\n
Exchange rate effect
\n
8.2
\n
3.7
\n
-1.1
\n
2.6
\n
11.9
\n
-1.1
\n
10.8
\n
Other
\n
-3.8
\n
4.1
\n
2.7
\n
6.8
\n
0.3
\n
2.7
\n
3.0
\n
Total changes
\n
17.9
\n
45.5
\n
-28.6
\n
16.9
\n
63.4
\n
-28.6
\n
34.8
\n
As at 31.12.2022
\n
312.7
\n
257.7
\n
-127.8
\n
129.9
\n
570.4
\n
-127.8
\n
442.6
\n
\n \n
The net total amount of the goodwill was \u20ac 312.7 million, versus \u20ac 294.8 million at 2021 year-end, and shows a change
\n
largely due to:
\n
-
\n
Goodwill arising from the business combination with Chromagen. The total is equal to \u20ac 13.4 million. Refer to
\n
\u2018Note 2.1.1 \u2013 Business combinations\u2019 for further details.
\n
\n
-
\n
The changes in exchange rates, positive for \u20ac 8.2 million.
\n
The total amount of goodwill recognised in the statement of financial position is not amortised but is subject at least
\n
annually to an impairment test (together with the other intangible and tangible assets) to assess its recoverability, as
\n
envisaged by IAS 36.
\n
Therefore, the goodwill has been allocated to the cash generating units (CGU) from which future economic benefits re-
\n
lated to the acquisition are expected.
\n
Consequently, at 31 December 2022, the impairment test was carried out as described hereinafter.
\n \n
\n
Impairment test
\n
In compliance with IAS 38 and IAS 36 at least on a yearly basis the Group verifies the recoverable value of intangible assets
\n
with indefinite life (included Trademarks), the values were tested at aggregate level based on the values allocated to the
\n
three cash-generating units (CGUs), identified as the lowest level at which the Goodwill is monitored by the Group and is
\n
considered appropriate, given the synergies and efficiencies obtained.
\n
The reference CGUs are the three divisions within a unique segment unit of reporting: Thermal Comfort (TC), Burners
\n
(BUR), and Components (COM).
\n
In line with previous years, the Group has considered the long-term business plan, that includes the latest available fi-
\n
nancials from 3 years plan 2023 - 2025 which are approved by Board of Directors, as base for the impairment test.
\n
The net book values of the CGUs were determined by allocating, in addition to goodwill, the brand values, the fixed assets
\n
and working capital, allocated on the basis of the relevant sales achieved in each CGU.
\n
\n \n
\n \n
\n
The recoverable amounts of the CGUs were determined based on a \u2018value in use\u2019 methodology, discounting the estimated
\n
future cash flows generated by the use of the assets calculating the Terminal Value with the perpetuity growth method
\n
of discounting.
\n
Procedure of intangibles assets impairment test
\n
The CGUs are three and are denominated as Thermal Comfort, Burners and Components.
\n
The Group, following a prudent approach, has used as discount rate the Weighted Average Cost of Capital (WACC). Such
\n
rate was calculated on the base of observable indicators and market parameters, including a specific risk connected to
\n
the business and the size of the Group (source: Damodaran and Duff & Phelps).
\n
The calculated rate has been compared with a set of comparable peer competitors.
\n
The rates used in the impairment test are reported in \u201cAssumptions related to the impairment plan\u201d.
\n
The Growth rate used to calculate the Terminal Value has been obtained by weighting the GDP growth rate at constant
\n
prices of the market in which the Group operates, to the revenues obtained in such markets.
\n
Such GDP growth rate has been obtained from an international authoritative source (i.e. IMF, October 2022 release).
\n
The Group performed additional stress tests to assess its capacity to resist any further market shock.
\n
The stress tests consisted in a reduction of 5%, 10% and 15% in EBIDA and Capex over the entire test period and for all
\n
markets and brands. Each test was performed on a stand-alone basis.
\n
These tests have been performed in addition to the sensitivity test required by the Standards.
\n
Due to the steep increase in interest rates and inflation in 2022, the Group has decided to increase the WACC by an
\n
absolute maximum of one percent and to decrease the Growth Rate by an absolute maximum of one percent.
\n
Assumptions related to the impairment plan
\n
The main assumptions formulated for the preparation of the impairment test are the following:
\n
\u2022
\n
Net invested capital by CGU (in thousand euro): TC 1,049,988, BUR 50,249, COM 39,293
\n
\u2022
\n
Goodwill by CGU (in thousand euro): TC 294,688, BUR 12,486, COM 5,500
\n
\u2022
\n
Growth rate by CGU: TC 1.9%, BUR 1.1%, COM 1.1%
\n
\u2022
\n
WACC (weighted average cost of capital) by CGU: TC 10.8%, BUR 10.5%, COM 11.4%
\n
Impairment test results
\n
The Group calculated the headroom breakeven point through both the WACC percentage increase and the cash flow
\n
percentage decrease (in order to make it nil).
\n
For the reporting period the results are, within the planned horizon:
\n
\u2022
\n
WACC percentage increase for each division more than 100%;
\n
\u2022
\n
Cash Flow percentage decrease: Thermal Comfort 34.0%, Burners 50.8%, Components 71.4%.
\n
Based on the analyses conducted under the above assumptions considering the economic and financial impacts resulting
\n
from the actions carried out by the Group in order to be in compliance with climate changes regulations, and also a
\n
sensitivity analysis of WACC and the Growth rate beyond the specific planning timeframe. The Group can confirm the
\n
adequacy of the reported amounts.
\n
\n \n
\n
Purchase price to be allocated
\n
25.8
\n
Price paid in cash, excluding ancillary costs
\n
23.9
\n
Present value of future payments
\n
2.0
\n
Allocation to:
\n
Net assets acquired
\n
12.8
\n
Goodwill generated by acquisition
\n
13.0
\n
\n
With the acquisition, Ariston Group further strengthens its competitive position in the renewable energy segment, ac-
\n
quiring a player with a leading position in Israel and a solid footprint in Australia. The Group separately recognized Good-
\n
will arising from the Chromagen acquisition (\u20ac 13.0 million) given that it represents the future economic benefits consid-
\n
ered arising from the business combination performed by the Group. Goodwill is not tax-deductible based on the relevant
\n
local regulations.
\n
\n
The item \u201cOther intangible assets\u201d can be detailed as follows:
\n
Other intangible assets
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Concessions, licenses, trademarks
\n
49.2
\n
43.8
\n
Intangible assets in progress
\n
23.7
\n
19.3
\n
Development costs
\n
17.5
\n
18.7
\n
Software
\n
17.5
\n
16.5
\n
Other
\n
22.1
\n
14.6
\n
Total
\n
129.9
\n
113.0
\n
\n \n
\n
Details of and changes in \u201cOther intangible assets\u201d are the following:
\n
Other intangible
\n
assets
\n
Development costs
\n
Software
\n
Other Intangible Assets
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
68.0
\n
-49.3
\n
18.7
\n
48.8
\n
-32.3
\n
16.5
\n
95.4
\n
-17.7
\n
77.7
\n
212.2
\n
-99.2
\n
113.0
\n
Perimeter variation
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
-0.1
\n
0.0
\n
13.5
\n
-2.1
\n
11.4
\n
13.6
\n
-2.2
\n
11.4
\n
Increases
\n
2.8
\n
0.0
\n
2.8
\n
0.6
\n
0.0
\n
0.6
\n
17.7
\n
0.0
\n
17.7
\n
21.0
\n
0.0
\n
21.0
\n
Decreases
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.7
\n
0.0
\n
-0.7
\n
-0.7
\n
0.0
\n
-0.7
\n
Amortisation
\n
0.0
\n
-7.3
\n
-7.3
\n
0.0
\n
-8.2
\n
-8.2
\n
0.0
\n
-8.7
\n
-8.7
\n
0.0
\n
-24.2
\n
-24.2
\n
Exchange rate effect
\n
0.2
\n
-0.2
\n
0.1
\n
0.3
\n
-0.2
\n
0.1
\n
3.1
\n
-0.8
\n
2.4
\n
3.7
\n
-1.1
\n
2.6
\n
Other
\n
4.0
\n
-0.9
\n
3.1
\n
5.6
\n
2.9
\n
8.5
\n
-5.5
\n
0.7
\n
-4.8
\n
4.1
\n
2.7
\n
6.8
\n
Total changes
\n
7.1
\n
-8.4
\n
-1.3
\n
6.6
\n
-5.6
\n
1.0
\n
28.1
\n
-10.9
\n
17.2
\n
41.8
\n
-24.8
\n
16.9
\n
As at 31.12.2022
\n
75.1
\n
-57.6
\n
17.5
\n
55.4
\n
-37.8
\n
17.5
\n
123.5
\n
-28.6
\n
95.0
\n
254.0
\n
-124.0
\n
129.9
\n
\n \n
\n
Development costs refer to products for which the return on investments occurs within a five-year period, on average.
\n
The capitalised costs for the period, attributable only to product development projects, amounted to \u20ac 7.5 million (\u20ac 7.1
\n
million in 2021) out of a total of \u20ac 17.5 million (\u20ac 18.7 million in 2021) reported in the financial statements.
\n
The Group evaluated the development costs related to products based on the criteria outlined in the Climate Delegated
\n
Act only for objective mitigation to climate change.
\n
As evidence of the commitment to promote a more efficient and
\n
renewable product portfolio, these investments have been capitalized. The Group impaired the depreciation charged to
\n
income statement against the products\u2019 sales.
\n
In order to determine the loss in value of capitalised development costs, in addition to the assessment of the economic
\n
return from each development projects, the Group arranged to allocate them to the Net capital employed of the related
\n
CGUs and assesses their recoverability together with the related tangible assets, determining their value in use with the
\n
discounted cash flow method.
\n
\n
The amortisation expense for the period is recognised under the appropriate item in the income statement.
\n
Changes during the period are shown in the table below:
\n
Intangible assets
\n
Goodwill
\n
Other int. assets
\n
Total
\n
(in \u20ac million)
\n
Net value
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
294.8
\n
212.2
\n
-99.2
\n
113.0
\n
507.0
\n
-99.2
\n
407.8
\n
Perimeter variation
\n
13.4
\n
13.6
\n
-2.2
\n
11.4
\n
27.0
\n
-2.2
\n
24.9
\n
Increases
\n
0.0
\n
21.0
\n
0.0
\n
21.0
\n
21.0
\n
0.0
\n
21.0
\n
Decreases
\n
0.0
\n
-0.7
\n
0.0
\n
-0.7
\n
-0.7
\n
0.0
\n
-0.7
\n
Remeasurements and Impairment
\n
0.0
\n
3.8
\n
-3.8
\n
0.0
\n
3.8
\n
-3.8
\n
0.0
\n
Amortisation
\n
0.0
\n
0.0
\n
-24.2
\n
-24.2
\n
0.0
\n
-24.2
\n
-24.2
\n
Exchange rate effect
\n
8.2
\n
3.7
\n
-1.1
\n
2.6
\n
11.9
\n
-1.1
\n
10.8
\n
Other
\n
-3.8
\n
4.1
\n
2.7
\n
6.8
\n
0.3
\n
2.7
\n
3.0
\n
Total changes
\n
17.9
\n
45.5
\n
-28.6
\n
16.9
\n
63.4
\n
-28.6
\n
34.8
\n
As at 31.12.2022
\n
312.7
\n
257.7
\n
-127.8
\n
129.9
\n
570.4
\n
-127.8
\n
442.6
\n
\n
Details of and changes in \u201cOther intangible assets\u201d are the following:
\n
Other intangible
\n
assets
\n
Development costs
\n
Software
\n
Other Intangible Assets
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
68.0
\n
-49.3
\n
18.7
\n
48.8
\n
-32.3
\n
16.5
\n
95.4
\n
-17.7
\n
77.7
\n
212.2
\n
-99.2
\n
113.0
\n
Perimeter variation
\n
0.0
\n
0.0
\n
0.0
\n
0.1
\n
-0.1
\n
0.0
\n
13.5
\n
-2.1
\n
11.4
\n
13.6
\n
-2.2
\n
11.4
\n
Increases
\n
2.8
\n
0.0
\n
2.8
\n
0.6
\n
0.0
\n
0.6
\n
17.7
\n
0.0
\n
17.7
\n
21.0
\n
0.0
\n
21.0
\n
Decreases
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-0.7
\n
0.0
\n
-0.7
\n
-0.7
\n
0.0
\n
-0.7
\n
Amortisation
\n
0.0
\n
-7.3
\n
-7.3
\n
0.0
\n
-8.2
\n
-8.2
\n
0.0
\n
-8.7
\n
-8.7
\n
0.0
\n
-24.2
\n
-24.2
\n
Exchange rate effect
\n
0.2
\n
-0.2
\n
0.1
\n
0.3
\n
-0.2
\n
0.1
\n
3.1
\n
-0.8
\n
2.4
\n
3.7
\n
-1.1
\n
2.6
\n
Other
\n
4.0
\n
-0.9
\n
3.1
\n
5.6
\n
2.9
\n
8.5
\n
-5.5
\n
0.7
\n
-4.8
\n
4.1
\n
2.7
\n
6.8
\n
Total changes
\n
7.1
\n
-8.4
\n
-1.3
\n
6.6
\n
-5.6
\n
1.0
\n
28.1
\n
-10.9
\n
17.2
\n
41.8
\n
-24.8
\n
16.9
\n
As at 31.12.2022
\n
75.1
\n
-57.6
\n
17.5
\n
55.4
\n
-37.8
\n
17.5
\n
123.5
\n
-28.6
\n
95.0
\n
254.0
\n
-124.0
\n
129.9
\n
\n
Note 2.2 \u2013 Property, plant and equipment
\n
At 31 December 2022, \u201cProperty, plant and equipment\u201d amounted to \u20ac 405.1 million, up by a net \u20ac 32.7 million compared
\n
to 31 December 2021.
\n
The depreciation expense for the period is recognised under the appropriate item in the income statement and amounted
\n
to \u20ac 65.6 million.
\n
Details of and changes in \u201cProperty, plant and equipment\u201d are the following:
\n
Property, plant
\n
and equipment
\n
Land and buildings
\n
Plant and machinery
\n
Other property, plant
\n
and equipment
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
309.9
\n
-147.9
\n
161.9
\n
413.1
\n
-308.6
\n
104.5
\n
347.9
\n
-241.9
\n
106.0
\n
1,070.8
\n
-698.4
\n
372.4
\n
Perimeter variation
\n
14.8
\n
-5.5
\n
9.4
\n
11.9
\n
-9.4
\n
2.4
\n
4.5
\n
-2.7
\n
1.8
\n
31.2
\n
-17.6
\n
13.6
\n
Increases
\n
17.4
\n
0.0
\n
17.4
\n
9.2
\n
0.0
\n
9.2
\n
54.0
\n
0.0
\n
54.0
\n
80.6
\n
0.0
\n
80.6
\n
of which for right of use
\n
13.4
\n
0.0
\n
13.4
\n
0.6
\n
0.0
\n
0.6
\n
8.4
\n
0.0
\n
8.4
\n
22.4
\n
0.0
\n
22.4
\n
Decreases
\n
-0.3
\n
0.0
\n
-0.3
\n
-0.5
\n
0.0
\n
-0.5
\n
0.2
\n
0.0
\n
0.2
\n
-0.5
\n
0.0
\n
-0.5
\n
Depreciation
\n
0.0
\n
-21.4
\n
-21.4
\n
0.0
\n
-17.3
\n
-17.3
\n
0.0
\n
-26.9
\n
-26.9
\n
0.0
\n
-65.6
\n
-65.6
\n
of which for right of use
\n
0.0
\n
-14.2
\n
-14.2
\n
0.0
\n
-0.3
\n
-0.3
\n
0.0
\n
-10.9
\n
-10.9
\n
0.0
\n
-25.4
\n
-25.4
\n
Exchange rate effect
\n
4.0
\n
-1.1
\n
2.9
\n
2.6
\n
-1.8
\n
0.8
\n
3.2
\n
-1.3
\n
1.9
\n
9.9
\n
-4.3
\n
5.6
\n
Other
\n
-9.5
\n
12.9
\n
3.4
\n
8.3
\n
3.3
\n
11.6
\n
-38.7
\n
22.8
\n
-15.9
\n
-39.8
\n
39.0
\n
-0.9
\n
Total changes
\n
26.5
\n
-15.1
\n
11.3
\n
31.6
\n
-25.2
\n
6.3
\n
23.3
\n
-8.2
\n
15.1
\n
81.4
\n
-48.5
\n
32.7
\n
As at 31.12.2022
\n
336.3
\n
-163.0
\n
173.3
\n
444.6
\n
-333.8
\n
110.8
\n
371.1
\n
-250.1
\n
121.1
\n
1,152.2
\n
-746.9
\n
405.1
\n
The net increase was largely attributable to the capital expenditure for the period, totalling \u20ac 80.6 million, only partly
\n
offset by \u20ac 65.6 million depreciation.
\n \n
\n
In accordance with the standard IFRS 16, below are the carrying amounts of right-of-use assets and the relevant changes
\n
during the period:
\n
Right of use assets
\n
Land and buildings
\n
Plant and machinery
\n
Other property plant
\n
and equip.
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
73.6
\n
-33.1
\n
40.5
\n
1.9
\n
-0.6
\n
1.3
\n
52.4
\n
-34.2
\n
18.2
\n
127.9
\n
-67.9
\n
60.0
\n
Perimeter variation
\n
10.7
\n
-3.1
\n
7.5
\n
0.0
\n
0.0
\n
0.0
\n
1.4
\n
-0.5
\n
0.9
\n
12.1
\n
-3.7
\n
8.4
\n
Increases
\n
13.4
\n
0.0
\n
13.4
\n
0.6
\n
0.0
\n
0.6
\n
8.4
\n
0.0
\n
8.4
\n
22.4
\n
0.0
\n
22.4
\n
Decreases
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Depreciation
\n
0.0
\n
-14.2
\n
-14.2
\n
0.0
\n
-0.3
\n
-0.3
\n
0.0
\n
-10.9
\n
-10.9
\n
0.0
\n
-25.4
\n
-25.4
\n
Exchange rate effect
\n
0.5
\n
-0.3
\n
0.2
\n
0.0
\n
0.0
\n
0.0
\n
0.6
\n
-0.3
\n
0.3
\n
1.2
\n
-0.6
\n
0.5
\n
Other
\n
-13.2
\n
13.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-20.6
\n
25.5
\n
4.9
\n
-33.8
\n
38.7
\n
4.9
\n
Total changes
\n
11.4
\n
-4.5
\n
6.9
\n
0.6
\n
-0.3
\n
0.3
\n
-10.2
\n
13.8
\n
3.7
\n
1.8
\n
9.0
\n
10.8
\n
As at 31.12.2022
\n
85.0
\n
-37.6
\n
47.4
\n
2.4
\n
-0.9
\n
1.6
\n
42.2
\n
-20.4
\n
21.8
\n
129.7
\n
-58.9
\n
70.8
\n
\n \n
\n
-
\n
Write-down of the \u201cOther intangible assets\u201d for \u20ac 3.8 million is related to the acquisition of Kesselheld GMBH,
\n
acquired by Ariston Group in 2020. The write-down is due to the ceasing of its current core activity of generating,
\n
mediating and approving orders and leads for heating installers and manufacturers. There is a plan to modify
\n
the core activity of the subsidiary. This amount was reclassified from \u201cGoodwill\u201d to \u201cOther intangible assets\u201d.
\n
\n
Impairment test
\n
In compliance with IAS 38 and IAS 36 at least on a yearly basis the Group verifies the recoverable value of intangible assets
\n
with indefinite life (included Trademarks), the values were tested at aggregate level based on the values allocated to the
\n
three cash-generating units (CGUs), identified as the lowest level at which the Goodwill is monitored by the Group and is
\n
considered appropriate, given the synergies and efficiencies obtained.
\n
The reference CGUs are the three divisions within a unique segment unit of reporting: Thermal Comfort (TC), Burners
\n
(BUR), and Components (COM).
\n
In line with previous years, the Group has considered the long-term business plan, that includes the latest available fi-
\n
nancials from 3 years plan 2023 - 2025 which are approved by Board of Directors, as base for the impairment test.
\n
The net book values of the CGUs were determined by allocating, in addition to goodwill, the brand values, the fixed assets
\n
and working capital, allocated on the basis of the relevant sales achieved in each CGU.
\n
\n
The recoverable amounts of the CGUs were determined based on a \u2018value in use\u2019 methodology, discounting the estimated
\n
future cash flows generated by the use of the assets calculating the Terminal Value with the perpetuity growth method
\n
of discounting.
\n
Procedure of intangibles assets impairment test
\n
The CGUs are three and are denominated as Thermal Comfort, Burners and Components.
\n
The Group, following a prudent approach, has used as discount rate the Weighted Average Cost of Capital (WACC). Such
\n
rate was calculated on the base of observable indicators and market parameters, including a specific risk connected to
\n
the business and the size of the Group (source: Damodaran and Duff & Phelps).
\n
The calculated rate has been compared with a set of comparable peer competitors.
\n
The rates used in the impairment test are reported in \u201cAssumptions related to the impairment plan\u201d.
\n
The Growth rate used to calculate the Terminal Value has been obtained by weighting the GDP growth rate at constant
\n
prices of the market in which the Group operates, to the revenues obtained in such markets.
\n
Such GDP growth rate has been obtained from an international authoritative source (i.e. IMF, October 2022 release).
\n
The Group performed additional stress tests to assess its capacity to resist any further market shock.
\n
The stress tests consisted in a reduction of 5%, 10% and 15% in EBIDA and Capex over the entire test period and for all
\n
markets and brands. Each test was performed on a stand-alone basis.
\n
These tests have been performed in addition to the sensitivity test required by the Standards.
\n
Due to the steep increase in interest rates and inflation in 2022, the Group has decided to increase the WACC by an
\n
absolute maximum of one percent and to decrease the Growth Rate by an absolute maximum of one percent.
\n
Assumptions related to the impairment plan
\n
The main assumptions formulated for the preparation of the impairment test are the following:
\n
\u2022
\n
Net invested capital by CGU (in thousand euro): TC 1,049,988, BUR 50,249, COM 39,293
\n
\u2022
\n
Goodwill by CGU (in thousand euro): TC 294,688, BUR 12,486, COM 5,500
\n
\u2022
\n
Growth rate by CGU: TC 1.9%, BUR 1.1%, COM 1.1%
\n
\u2022
\n
WACC (weighted average cost of capital) by CGU: TC 10.8%, BUR 10.5%, COM 11.4%
\n
Impairment test results
\n
The Group calculated the headroom breakeven point through both the WACC percentage increase and the cash flow
\n
percentage decrease (in order to make it nil).
\n
For the reporting period the results are, within the planned horizon:
\n
\u2022
\n
WACC percentage increase for each division more than 100%;
\n
\u2022
\n
Cash Flow percentage decrease: Thermal Comfort 34.0%, Burners 50.8%, Components 71.4%.
\n
Based on the analyses conducted under the above assumptions considering the economic and financial impacts resulting
\n
from the actions carried out by the Group in order to be in compliance with climate changes regulations, and also a
\n
sensitivity analysis of WACC and the Growth rate beyond the specific planning timeframe. The Group can confirm the
\n
adequacy of the reported amounts.
\n
\n
Note 2.1.1 \u2013 Business combinations
\n
As mentioned in paragraph \u20182 - Significant events of the year\u2019, Ariston Group completed the acquisition of Chromagen
\n
group comprehensive of the total net assets and liabilities of the legal entities in Israel and Spain and the 51% of the
\n
Australian entity. The percentage is the same for both ownership and voting rights.
\n
On the date that these Consolidated Financial Statements were approved, based on the process of recognising and re-
\n
stating the information necessary for allocating the purchase prices of the various transactions at the fair value of the
\n
respective net assets acquired, the Group performed the purchase price allocation with the support of independent ex-
\n
ternal expert and it was finalized in a period not exceeding 12 months from the closing date of each transactions, in
\n
compliance with applicable accounting standards. The definitive purchase price allocation at the fair values of the assets
\n
acquired is shown in the table below. The values shown here are explained in the following notes to the financial state-
\n
ments, where they are highlighted as changes in the basis of consolidation for the purposes of the financial statements.
\n
All the values are expressed in Euro, converted using the exchange rate at the closing date, 5 January 2022.
\n
\n
Value at acquisition date
\n
Book value at
\n
acquisition date
\n
Fair value at
\n
31 December 2022
\n
ASSETS
\n
Non-current assets
\n
Goodwill
\n
6.9
\n
0.0
\n
Other intangible assets
\n
0.1
\n
8.4
\n
Lands and buildings
\n
9.4
\n
9.4
\n
Plant and machinery
\n
2.4
\n
2.4
\n
Other property, plant and equipment
\n
1.8
\n
1.8
\n
Deferred tax assets
\n
0.6
\n
0.6
\n
Financial assets
\n
0.2
\n
0.2
\n
Other non-current assets
\n
1.4
\n
1.4
\n
Total non-current assets
\n
22.8
\n
24.2
\n
Current assets
\n
Inventories
\n
23.7
\n
22.6
\n
Trade receivables
\n
26.6
\n
26.5
\n
Tax receivables
\n
0.2
\n
0.2
\n
Current financial assets
\n
0.3
\n
0.3
\n
Other current assets
\n
1.8
\n
1.8
\n
Cash and cash equivalents
\n
1.1
\n
1.1
\n
Total current assets
\n
53.7
\n
52.5
\n
TOTAL ASSETS
\n
76.5
\n
76.8
\n
LIABILITIES
\n
Non-current liabilities
\n
Non-current provisions
\n
0.7
\n
0.7
\n
Post-employment benefits
\n
0.0
\n
0.0
\n
Non-current financing
\n
15.0
\n
15.0
\n
Other non-current liabilities
\n
0.4
\n
0.4
\n
Total non-current liabilities
\n
16.1
\n
16.1
\n
Current liabilities
\n
Trade payables
\n
21.1
\n
21.1
\n
Tax payables
\n
1.3
\n
1.3
\n
Current provisions
\n
0.6
\n
0.5
\n
Current financial liabilities
\n
15.4
\n
15.4
\n
Current loans
\n
2.9
\n
2.9
\n
Other current liabilities
\n
4.2
\n
4.2
\n
Total current liabilities
\n
45.5
\n
45.4
\n
Total Liabilities
\n
61.6
\n
61.5
\n
NET EQUITY ACQUIRED
\n
14.9
\n
15.2
\n
Group Equity
\n
9.0
\n
12.8
\n
Minority Equity
\n
5.9
\n
2.4
\n
TOTAL LIABILITIES AND EQUITY
\n
76.5
\n
76.8
\n
Total cost, of which:
\n
a
\n
25.8
\n
Price paid in cash, excluding ancillary costs
\n
23.9
\n
Present value of future payments
\n
2.0
\n
Net financial indebtedness acquired, of which:
\n
b
\n
(31.7)
\n
Cash, cash equivalent and financial assets
\n
1.6
\n
Financial debt acquired
\n
(33.3)
\n
Enterprise Value (a-b)
\n
57.5
\n \n
\n
Purchase price to be allocated
\n
25.8
\n
Price paid in cash, excluding ancillary costs
\n
23.9
\n
Present value of future payments
\n
2.0
\n
Allocation to:
\n
Net assets acquired
\n
12.8
\n
Goodwill generated by acquisition
\n
13.0
\n
\n \n
\n \n
\n
With the acquisition, Ariston Group further strengthens its competitive position in the renewable energy segment, ac-
\n
quiring a player with a leading position in Israel and a solid footprint in Australia. The Group separately recognized Good-
\n
will arising from the Chromagen acquisition (\u20ac 13.0 million) given that it represents the future economic benefits consid-
\n
ered arising from the business combination performed by the Group. Goodwill is not tax-deductible based on the relevant
\n
local regulations.
\n
\n \n
From the acquisition date of 5 January 2022, Chromagen contributed to Ariston Group's results in the amount of \u20ac 135.4
\n
million to net revenue.
\n
\n \n
\n
Note 2.2 \u2013 Property, plant and equipment
\n
At 31 December 2022, \u201cProperty, plant and equipment\u201d amounted to \u20ac 405.1 million, up by a net \u20ac 32.7 million compared
\n
to 31 December 2021.
\n
The depreciation expense for the period is recognised under the appropriate item in the income statement and amounted
\n
to \u20ac 65.6 million.
\n
Details of and changes in \u201cProperty, plant and equipment\u201d are the following:
\n
Property, plant
\n
and equipment
\n
Land and buildings
\n
Plant and machinery
\n
Other property, plant
\n
and equipment
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
309.9
\n
-147.9
\n
161.9
\n
413.1
\n
-308.6
\n
104.5
\n
347.9
\n
-241.9
\n
106.0
\n
1,070.8
\n
-698.4
\n
372.4
\n
Perimeter variation
\n
14.8
\n
-5.5
\n
9.4
\n
11.9
\n
-9.4
\n
2.4
\n
4.5
\n
-2.7
\n
1.8
\n
31.2
\n
-17.6
\n
13.6
\n
Increases
\n
17.4
\n
0.0
\n
17.4
\n
9.2
\n
0.0
\n
9.2
\n
54.0
\n
0.0
\n
54.0
\n
80.6
\n
0.0
\n
80.6
\n
of which for right of use
\n
13.4
\n
0.0
\n
13.4
\n
0.6
\n
0.0
\n
0.6
\n
8.4
\n
0.0
\n
8.4
\n
22.4
\n
0.0
\n
22.4
\n
Decreases
\n
-0.3
\n
0.0
\n
-0.3
\n
-0.5
\n
0.0
\n
-0.5
\n
0.2
\n
0.0
\n
0.2
\n
-0.5
\n
0.0
\n
-0.5
\n
Depreciation
\n
0.0
\n
-21.4
\n
-21.4
\n
0.0
\n
-17.3
\n
-17.3
\n
0.0
\n
-26.9
\n
-26.9
\n
0.0
\n
-65.6
\n
-65.6
\n
of which for right of use
\n
0.0
\n
-14.2
\n
-14.2
\n
0.0
\n
-0.3
\n
-0.3
\n
0.0
\n
-10.9
\n
-10.9
\n
0.0
\n
-25.4
\n
-25.4
\n
Exchange rate effect
\n
4.0
\n
-1.1
\n
2.9
\n
2.6
\n
-1.8
\n
0.8
\n
3.2
\n
-1.3
\n
1.9
\n
9.9
\n
-4.3
\n
5.6
\n
Other
\n
-9.5
\n
12.9
\n
3.4
\n
8.3
\n
3.3
\n
11.6
\n
-38.7
\n
22.8
\n
-15.9
\n
-39.8
\n
39.0
\n
-0.9
\n
Total changes
\n
26.5
\n
-15.1
\n
11.3
\n
31.6
\n
-25.2
\n
6.3
\n
23.3
\n
-8.2
\n
15.1
\n
81.4
\n
-48.5
\n
32.7
\n
As at 31.12.2022
\n
336.3
\n
-163.0
\n
173.3
\n
444.6
\n
-333.8
\n
110.8
\n
371.1
\n
-250.1
\n
121.1
\n
1,152.2
\n
-746.9
\n
405.1
\n
The net increase was largely attributable to the capital expenditure for the period, totalling \u20ac 80.6 million, only partly
\n
offset by \u20ac 65.6 million depreciation.
\n \n
\n
In accordance with the standard IFRS 16, below are the carrying amounts of right-of-use assets and the relevant changes
\n
during the period:
\n
Right of use assets
\n
Land and buildings
\n
Plant and machinery
\n
Other property plant
\n
and equip.
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
73.6
\n
-33.1
\n
40.5
\n
1.9
\n
-0.6
\n
1.3
\n
52.4
\n
-34.2
\n
18.2
\n
127.9
\n
-67.9
\n
60.0
\n
Perimeter variation
\n
10.7
\n
-3.1
\n
7.5
\n
0.0
\n
0.0
\n
0.0
\n
1.4
\n
-0.5
\n
0.9
\n
12.1
\n
-3.7
\n
8.4
\n
Increases
\n
13.4
\n
0.0
\n
13.4
\n
0.6
\n
0.0
\n
0.6
\n
8.4
\n
0.0
\n
8.4
\n
22.4
\n
0.0
\n
22.4
\n
Decreases
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Depreciation
\n
0.0
\n
-14.2
\n
-14.2
\n
0.0
\n
-0.3
\n
-0.3
\n
0.0
\n
-10.9
\n
-10.9
\n
0.0
\n
-25.4
\n
-25.4
\n
Exchange rate effect
\n
0.5
\n
-0.3
\n
0.2
\n
0.0
\n
0.0
\n
0.0
\n
0.6
\n
-0.3
\n
0.3
\n
1.2
\n
-0.6
\n
0.5
\n
Other
\n
-13.2
\n
13.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-20.6
\n
25.5
\n
4.9
\n
-33.8
\n
38.7
\n
4.9
\n
Total changes
\n
11.4
\n
-4.5
\n
6.9
\n
0.6
\n
-0.3
\n
0.3
\n
-10.2
\n
13.8
\n
3.7
\n
1.8
\n
9.0
\n
10.8
\n
As at 31.12.2022
\n
85.0
\n
-37.6
\n
47.4
\n
2.4
\n
-0.9
\n
1.6
\n
42.2
\n
-20.4
\n
21.8
\n
129.7
\n
-58.9
\n
70.8
\n
\n \n
\n \n
In order to recognise any impairment loss of tangible assets, in the presence of impairment indicators, the Group attrib-
\n
utes these assets to the Net invested capital of the related CGUs and assesses their recoverability by determining their
\n
value in use with the discounted cash flow method.
\n
\n
The item \u201cOther property, plant and equipment\u201d amounted to \u20ac 121.1 million, up by \u20ac 15.1 million compared with 31
\n
December 2021.
\n
The breakdown is detailed below:
\n
Other property, plant and equipment
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Industrial and commercial equipment
\n
46.8
\n
45.4
\n
Assets under construction
\n
44.5
\n
31.0
\n
Vehicles & transportation equipment
\n
19.0
\n
18.9
\n
Furniture and office equipment
\n
3.5
\n
3.2
\n
EDP machinery
\n
3.3
\n
3.3
\n
Other
\n
4.0
\n
4.1
\n
Total
\n
121.1
\n
106.0
\n
\n
In accordance with the standard IFRS 16, below are the carrying amounts of right-of-use assets and the relevant changes
\n
during the period:
\n
Right of use assets
\n
Land and buildings
\n
Plant and machinery
\n
Other property plant
\n
and equip.
\n
Total
\n
(in \u20ac million)
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
Gross
\n
Prov.
\n
Net
\n
As at 31.12.2021
\n
73.6
\n
-33.1
\n
40.5
\n
1.9
\n
-0.6
\n
1.3
\n
52.4
\n
-34.2
\n
18.2
\n
127.9
\n
-67.9
\n
60.0
\n
Perimeter variation
\n
10.7
\n
-3.1
\n
7.5
\n
0.0
\n
0.0
\n
0.0
\n
1.4
\n
-0.5
\n
0.9
\n
12.1
\n
-3.7
\n
8.4
\n
Increases
\n
13.4
\n
0.0
\n
13.4
\n
0.6
\n
0.0
\n
0.6
\n
8.4
\n
0.0
\n
8.4
\n
22.4
\n
0.0
\n
22.4
\n
Decreases
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Depreciation
\n
0.0
\n
-14.2
\n
-14.2
\n
0.0
\n
-0.3
\n
-0.3
\n
0.0
\n
-10.9
\n
-10.9
\n
0.0
\n
-25.4
\n
-25.4
\n
Exchange rate effect
\n
0.5
\n
-0.3
\n
0.2
\n
0.0
\n
0.0
\n
0.0
\n
0.6
\n
-0.3
\n
0.3
\n
1.2
\n
-0.6
\n
0.5
\n
Other
\n
-13.2
\n
13.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
-20.6
\n
25.5
\n
4.9
\n
-33.8
\n
38.7
\n
4.9
\n
Total changes
\n
11.4
\n
-4.5
\n
6.9
\n
0.6
\n
-0.3
\n
0.3
\n
-10.2
\n
13.8
\n
3.7
\n
1.8
\n
9.0
\n
10.8
\n
As at 31.12.2022
\n
85.0
\n
-37.6
\n
47.4
\n
2.4
\n
-0.9
\n
1.6
\n
42.2
\n
-20.4
\n
21.8
\n
129.7
\n
-58.9
\n
70.8
\n
\n
In accordance with IFRS 16, below are the carrying amounts of financial liabilities arising from right-of-use assets broken
\n
down by maturity at 31 December 2022:
\n
Expiry dates 31.12.2022
\n
(in \u20ac million)
\n
0-12 months
\n
2-5 years
\n
>5 years
\n
Total
\n
Financial payables
\n
- non-current loans
\n
40.4
\n
10.2
\n
50.6
\n
- current loans
\n
20.8
\n
20.8
\n
Financial payables
\n
20.8
\n
40.4
\n
10.2
\n
71.4
\n
\n \n
\n
Note 2.3 \u2013 Investments in associates & Joint ventures
\n \n
\n
Associates
\n
At 31 December 2022, there were no investments in associates.
\n
\n \n \n
\n
Joint ventures
\n
From June 2021 Ariston Group holds 24.5% of the shares of the Dutch company Haas Heating B.V. which was acquired
\n
by the Group through ATAG Heating B.V.
\n
The company is treated as a joint venture, thus valuing the participation with the equity method with the existence of a
\n
financial liability to be paid for acquiring the associate.
\n
The acquisition agreement sets forth a mechanism for a subsequent adjustment of the purchase price (earn-out) based
\n
on a sales scheme at specific dates falling under IAS 28
\n
Investment in Associates and Joint Ventures
\n
.
\n
Therefore, a liability equal to the current value of the estimated obligation as at the date of its eventual future exercise,
\n
was recognised in the financial statements against the equity method.
\n
By Shares Purchase Agreement defined the purchase price at \u20ac 0.8 million and a liability for \u20ac 1.5 million is related to the
\n
earn-out program.
\n
For the remaining shares the agreement foresees a series of call options until December 2023.
\n
\n \n
\n \n
\n
Note 2.3 \u2013 Investments in associates & Joint ventures
\n \n
\n
Associates
\n
At 31 December 2022, there were no investments in associates.
\n
\n \n \n
\n
Joint ventures
\n
From June 2021 Ariston Group holds 24.5% of the shares of the Dutch company Haas Heating B.V. which was acquired
\n
by the Group through ATAG Heating B.V.
\n
The company is treated as a joint venture, thus valuing the participation with the equity method with the existence of a
\n
financial liability to be paid for acquiring the associate.
\n
The acquisition agreement sets forth a mechanism for a subsequent adjustment of the purchase price (earn-out) based
\n
on a sales scheme at specific dates falling under IAS 28
\n
Investment in Associates and Joint Ventures
\n
.
\n
Therefore, a liability equal to the current value of the estimated obligation as at the date of its eventual future exercise,
\n
was recognised in the financial statements against the equity method.
\n
By Shares Purchase Agreement defined the purchase price at \u20ac 0.8 million and a liability for \u20ac 1.5 million is related to the
\n
earn-out program.
\n
For the remaining shares the agreement foresees a series of call options until December 2023.
\n
\n \n
\n \n
\n
LIST OF COMPANIES AT 31 DECEMBER 2022
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Ariston Holding N.V.
\n
Netherlands
\n
EUR
\n
46,061,835.32
\n
TC
\n
parent
\n
company
\n
2
\n
AR1 S.r.l.
\n
Italy
\n
EUR
\n
200,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
3
\n
Ariston Benelux S.A./N.V.
\n
Belgium
\n
EUR
\n
15,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
4
\n
Ariston Deutschland GmbH
\n
Germany
\n
EUR
\n
255,700
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
5
\n
Ariston Egypt LLC
\n
Egypt
\n
EGP
\n
10,900,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
6
\n
Ariston France sas
\n
France
\n
EUR
\n
54,682,110
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Elco International GmbH
\n
0.01
\n
7
\n
Ariston Heating Technology
\n
Nigeria Ltd
\n
Nigeria
\n
NGN
\n
10,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
8
\n
Ariston Holding Egypt LLC
\n
Egypt
\n
EGP
\n
100,000
\n
TC
\n
100.00
\n
ATAG Heating B.V.
\n
99.00
\n
Ariston Holding N.V.
\n
0.01
\n
9
\n
Ariston Hung\u00e1ria kft
\n
Hungary
\n
HUF
\n
131,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
10
\n
Ariston Iberica S.L.
\n
Spain
\n
EUR
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
11
\n
Ariston Kazakhstan LLP
\n
Kazakhstan
\n
KZT
\n
212,100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
12
\n
Ariston Polska Sp. z o.o.
\n
Poland
\n
PLN
\n
12,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
13
\n
Ariston Pte Ltd
\n
Singapore
\n
SGD
\n
100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
14
\n
Ariston S.p.A.
\n
Italy
\n
EUR
\n
30,100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
15
\n
Ariston Sales Mexico S.A. de
\n
C.V.
\n
Mexico
\n
MXN
\n
302,188,920
\n
TC
\n
100.00
\n
Ariston Thermo Mexico
\n
S.A. de C.V
\n
0.03
\n
Calentadores de America
\n
S.A. de C.V.
\n
99.97
\n
16
\n
Ariston South Africa (Pty) Ltd
\n
South Africa
\n
ZAR
\n
100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
17
\n
Ariston
\n
Thermo (China) Co.,
\n
Ltd
\n
China
\n
CNY
\n
145,885,010
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
18
\n
Ariston Thermo Argentina
\n
S.r.l.
\n
Argentina
\n
ARS
\n
16,705,269
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.63
\n
Thermowatt S.p.A.
\n
0.37
\n
19
\n
Ariston Thermo Croatia Ltd
\n
Croatia
\n
HRK
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
20
\n
Ariston Thermo CZ sro
\n
Czech Republic
\n
CZK
\n
30,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
21
\n
Ariston Thermo Gulf Water
\n
Heating LLC
\n
UAE
\n
AED
\n
400,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
49.00
\n
Third parties
\n
51.00
\n
22
\n
Ariston Thermo Holding USA
\n
LLC
\n
USA
\n
USD
\n
63,037,687
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
23
\n
Ariston Thermo India Private
\n
Ltd
\n
India
\n
INR
\n
220,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
24
\n
Ariston Thermo Industrial Vi-
\n
etnam Ltd
\n
Vietnam
\n
VND
\n
41,600,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
25
\n
Ariston Thermo Isitma ve So-
\n
gutma Sistemleri Ithalat,
\n
Ihracat ve Dagitim Ltd Sirketi
\n
Turkey
\n
TRY
\n
66,157,500
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
26
\n
Ariston Thermo Maroc sa
\n
Morocco
\n
MAD
\n
3,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
27
\n
Ariston Thermo MEA SPC
\n
Bahrain
\n
USD
\n
12,338,306
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
28
\n
Ariston Thermo Mexico S.A.
\n
de C.V
\n
Mexico
\n
MXN
\n
2,350,000,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
99.99
\n
Ariston Thermo Holding
\n
USA LLC
\n
0.01
\n
29
\n
Ariston Thermo Parts & Ser-
\n
vices S.A.
\n
Switzerland
\n
EUR
\n
940.551
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
30
\n
Ariston Thermo Romania
\n
S.r.l.
\n
Romania
\n
RON
\n
29,041,740
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
31
\n
Ariston Thermo Rus LLC
\n
Russia
\n
RUB
\n
1,403,787,727
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n \n
\n \n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
32
\n
Ariston Thermo Tunisie SA
\n
Tunisia
\n
EUR
\n
500,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
66.70
\n
Third parties
\n
33.30
\n
33
\n
Ariston Thermo UK Ltd
\n
UK
\n
GBP
\n
7,500,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
34
\n
Ariston Thermo USA LLC
\n
USA
\n
USD
\n
10,275,184
\n
TC
\n
100.00
\n
Ariston Thermo Holding
\n
USA LLC
\n
100.00
\n
35
\n
Ariston Thermo Vietnam Ltd
\n
Vietnam
\n
VND
\n
31,471,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
36
\n
Ariston Ukraine LLC
\n
Ukraine
\n
UAH
\n
38,705,753
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
37
\n
Atag Construction B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
38
\n
Atag Electronics
\n
B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
39
\n
Atag Engineering B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
40
\n
Atag Heating
\n
B.V.
\n
Netherlands
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
41
\n
Atag Heizungstechnik Gmbh
\n
Germany
\n
EUR
\n
512,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
42
\n
Atag Verwarming Belgie
\n
B.V.BA
\n
Belgium
\n
EUR
\n
18,600
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
43
\n
Atag Verwarming Nederland
\n
B.V.
\n
Netherlands
\n
EUR
\n
18,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
44
\n
ATM1 HR S.A. de C.V.
\n
Mexico
\n
MXN
\n
50,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
99.99
\n
Elcotherm AG
\n
0.01
\n
45
\n
Atmor (Dongguan) Electronic
\n
Technology Co. Ltd
\n
China
\n
USD
\n
1,000,000
\n
TC
\n
100.00
\n
Atmor Electronic Tech-
\n
nology Company Ltd
\n
100.00
\n
46
\n
Atmor Electronic Technology
\n
Company Ltd
\n
Hong Kong
\n
HKD
\n
10,000
\n
TC
\n
100.00
\n
Atmor Industries LTD
\n
100.00
\n
47
\n
Atmor Industries Ltd
\n
Israel
\n
USD
\n
1,790,409
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
48
\n
BCE S.r.l.
\n
Italy
\n
EUR
\n
10,400
\n
BUR
\n
100.00
\n
Ecoflam Bruciatori S.p.A.
\n
100.00
\n
49
\n
Calentadores de America S.A.
\n
de C.V.
\n
Mexico
\n
MXN
\n
1,226,593,637
\n
TC
\n
100.00
\n
Ariston
\n
Thermo Mexico
\n
S.A. de C.V
\n
99.99
\n
Atag Heating B.V.
\n
0.01
\n
50
\n
Chromagen Australia PTY LTD
\n
Australia
\n
AUD
\n
10,358,995
\n
TC
\n
100.00
\n
Elcotherm AG
\n
51.00
\n
Third parties
\n
49.00
\n
51
\n
Chromagen Israel Ltd
\n
Israel
\n
ILS
\n
10.901
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
52
\n
Cuenod sas
\n
France
\n
EUR
\n
15,422,390
\n
BUR
\n
100.00
\n
Ariston France sas
\n
100.00
\n
53
\n
Domotec AG
\n
Switzerland
\n
CHF
\n
50,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
54
\n
Ecoflam Bruciatori S.p.A.
\n
Italy
\n
EUR
\n
3,690,000
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
55
\n
Elco Austria GmbH
\n
Austria
\n
EUR
\n
35,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
56
\n
Elco B.V.
\n
Netherlands
\n
EUR
\n
2,046,004
\n
TC
\n
100.00
\n
Elco Burners B.V.
\n
100.00
\n
57
\n
Elco Belgium N.V./S.A.
\n
Belgium
\n
EUR
\n
2,650,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
99.99
\n
Elco B.V.
\n
0.01
\n
58
\n
Elco Burners B.V.
\n
Netherlands
\n
EUR
\n
22.734
\n
BUR
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
59
\n
Elco Burners GmbH
\n
Germany
\n
EUR
\n
25,000
\n
BUR
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
60
\n
Elco GmbH
\n
Germany
\n
EUR
\n
50,000
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
61
\n
Elco Heating Solutions Limi-
\n
ted
\n
UK
\n
GBP
\n
3,001,750
\n
TC
\n
100.00
\n
Ariston Themo UK Ltd
\n
100.00
\n
62
\n
Elco International GmbH
\n
Germany
\n
EUR
\n
8,691,962
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
63
\n
Elco Italia S.p.A.
\n
Italy
\n
EUR
\n
3,500,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
64
\n
Elcotherm AG
\n
Switzerland
\n
CHF
\n
1,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
65
\n
Gastech-Energi A/S
\n
Denmark
\n
DKK
\n
7,554,935
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
66
\n
Ingrado S.r.l.
\n
Italy
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
67
\n
Kesselheld Gmbh
\n
Germany
\n
EUR
\n
83,333
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
68
\n
NTI Boilers Inc
\n
Canada
\n
CAD
\n
43,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n \n
\n \n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
69
\n
NTI-USA Inc
\n
USA
\n
USD
\n
100
\n
TC
\n
100.00
\n
NTI Boilers Inc
\n
100.00
\n
70
\n
PT Ariston Thermo Indonesia
\n
Indonesia
\n
IDR
\n
16,260,750,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston Pte Ltd.
\n
0.01
\n
71
\n
Racold
\n
Thermo Private Ltd
\n
India
\n
INR
\n
262,134,750
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
72
\n
S.H.E. d.o.o. Svilajnac
\n
Serbia
\n
RSD
\n
35,432,220
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
73
\n
SPM Innovation
\n
sas
\n
France
\n
EUR
\n
750,020
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
74
\n
Thermowatt (Wuxi) Electric
\n
Co., Ltd
\n
China
\n
CNY
\n
82,769,200
\n
COM
\n
100.00
\n
Ariston Thermo (China)
\n
Co., Ltd
\n
70.00
\n
Ariston Holding N.V.
\n
30.00
\n
75
\n
Thermowatt Professional
\n
S.r.l.
\n
Italy
\n
EUR
\n
100,000
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
76
\n
Thermowatt S.p.A.
\n
Italy
\n
EUR
\n
7,700,000
\n
COM
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
(*)
\n
Refers to the main Division
\n
LIST OF COMPANIES NOT INCLUDED IN THE SCOPE OF CONSOLIDATION
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct con-
\n
trolling in-
\n
terest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Joint venture \"Ariston
\n
Thermo - UTG LLC\" (**)
\n
Uzbekistan
\n
EUR
\n
1,000,000
\n
TC
\n
51.00
\n
Ariston Holding N.V.
\n
51.00
\n
49.00
\n
2
\n
Haas Heating B.V.
\n
Netherlands
\n
EUR
\n
100
\n
TC
\n
24.50
\n
Atag Heating B.V.
\n
24.50
\n
(**)
\n
The company was not included in the scope of consolidation because of its limited area of operation and little significance.
\n
\n \n
\n
Associates
\n
At 31 December 2022, there were no investments in associates.
\n
\n \n
\n \n
\n
LIST OF COMPANIES AT 31 DECEMBER 2022
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Ariston Holding N.V.
\n
Netherlands
\n
EUR
\n
46,061,835.32
\n
TC
\n
parent
\n
company
\n
2
\n
AR1 S.r.l.
\n
Italy
\n
EUR
\n
200,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
3
\n
Ariston Benelux S.A./N.V.
\n
Belgium
\n
EUR
\n
15,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
4
\n
Ariston Deutschland GmbH
\n
Germany
\n
EUR
\n
255,700
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
5
\n
Ariston Egypt LLC
\n
Egypt
\n
EGP
\n
10,900,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
6
\n
Ariston France sas
\n
France
\n
EUR
\n
54,682,110
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Elco International GmbH
\n
0.01
\n
7
\n
Ariston Heating Technology
\n
Nigeria Ltd
\n
Nigeria
\n
NGN
\n
10,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
8
\n
Ariston Holding Egypt LLC
\n
Egypt
\n
EGP
\n
100,000
\n
TC
\n
100.00
\n
ATAG Heating B.V.
\n
99.00
\n
Ariston Holding N.V.
\n
0.01
\n
9
\n
Ariston Hung\u00e1ria kft
\n
Hungary
\n
HUF
\n
131,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
10
\n
Ariston Iberica S.L.
\n
Spain
\n
EUR
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
11
\n
Ariston Kazakhstan LLP
\n
Kazakhstan
\n
KZT
\n
212,100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
12
\n
Ariston Polska Sp. z o.o.
\n
Poland
\n
PLN
\n
12,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
13
\n
Ariston Pte Ltd
\n
Singapore
\n
SGD
\n
100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
14
\n
Ariston S.p.A.
\n
Italy
\n
EUR
\n
30,100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
15
\n
Ariston Sales Mexico S.A. de
\n
C.V.
\n
Mexico
\n
MXN
\n
302,188,920
\n
TC
\n
100.00
\n
Ariston Thermo Mexico
\n
S.A. de C.V
\n
0.03
\n
Calentadores de America
\n
S.A. de C.V.
\n
99.97
\n
16
\n
Ariston South Africa (Pty) Ltd
\n
South Africa
\n
ZAR
\n
100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
17
\n
Ariston
\n
Thermo (China) Co.,
\n
Ltd
\n
China
\n
CNY
\n
145,885,010
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
18
\n
Ariston Thermo Argentina
\n
S.r.l.
\n
Argentina
\n
ARS
\n
16,705,269
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.63
\n
Thermowatt S.p.A.
\n
0.37
\n
19
\n
Ariston Thermo Croatia Ltd
\n
Croatia
\n
HRK
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
20
\n
Ariston Thermo CZ sro
\n
Czech Republic
\n
CZK
\n
30,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
21
\n
Ariston Thermo Gulf Water
\n
Heating LLC
\n
UAE
\n
AED
\n
400,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
49.00
\n
Third parties
\n
51.00
\n
22
\n
Ariston Thermo Holding USA
\n
LLC
\n
USA
\n
USD
\n
63,037,687
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
23
\n
Ariston Thermo India Private
\n
Ltd
\n
India
\n
INR
\n
220,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
24
\n
Ariston Thermo Industrial Vi-
\n
etnam Ltd
\n
Vietnam
\n
VND
\n
41,600,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
25
\n
Ariston Thermo Isitma ve So-
\n
gutma Sistemleri Ithalat,
\n
Ihracat ve Dagitim Ltd Sirketi
\n
Turkey
\n
TRY
\n
66,157,500
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
26
\n
Ariston Thermo Maroc sa
\n
Morocco
\n
MAD
\n
3,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
27
\n
Ariston Thermo MEA SPC
\n
Bahrain
\n
USD
\n
12,338,306
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
28
\n
Ariston Thermo Mexico S.A.
\n
de C.V
\n
Mexico
\n
MXN
\n
2,350,000,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
99.99
\n
Ariston Thermo Holding
\n
USA LLC
\n
0.01
\n
29
\n
Ariston Thermo Parts & Ser-
\n
vices S.A.
\n
Switzerland
\n
EUR
\n
940.551
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
30
\n
Ariston Thermo Romania
\n
S.r.l.
\n
Romania
\n
RON
\n
29,041,740
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
31
\n
Ariston Thermo Rus LLC
\n
Russia
\n
RUB
\n
1,403,787,727
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n \n
\n \n
\n \n
\n \n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
32
\n
Ariston Thermo Tunisie SA
\n
Tunisia
\n
EUR
\n
500,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
66.70
\n
Third parties
\n
33.30
\n
33
\n
Ariston Thermo UK Ltd
\n
UK
\n
GBP
\n
7,500,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
34
\n
Ariston Thermo USA LLC
\n
USA
\n
USD
\n
10,275,184
\n
TC
\n
100.00
\n
Ariston Thermo Holding
\n
USA LLC
\n
100.00
\n
35
\n
Ariston Thermo Vietnam Ltd
\n
Vietnam
\n
VND
\n
31,471,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
36
\n
Ariston Ukraine LLC
\n
Ukraine
\n
UAH
\n
38,705,753
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
37
\n
Atag Construction B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
38
\n
Atag Electronics
\n
B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
39
\n
Atag Engineering B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
40
\n
Atag Heating
\n
B.V.
\n
Netherlands
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
41
\n
Atag Heizungstechnik Gmbh
\n
Germany
\n
EUR
\n
512,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
42
\n
Atag Verwarming Belgie
\n
B.V.BA
\n
Belgium
\n
EUR
\n
18,600
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
43
\n
Atag Verwarming Nederland
\n
B.V.
\n
Netherlands
\n
EUR
\n
18,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
44
\n
ATM1 HR S.A. de C.V.
\n
Mexico
\n
MXN
\n
50,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
99.99
\n
Elcotherm AG
\n
0.01
\n
45
\n
Atmor (Dongguan) Electronic
\n
Technology Co. Ltd
\n
China
\n
USD
\n
1,000,000
\n
TC
\n
100.00
\n
Atmor Electronic Tech-
\n
nology Company Ltd
\n
100.00
\n
46
\n
Atmor Electronic Technology
\n
Company Ltd
\n
Hong Kong
\n
HKD
\n
10,000
\n
TC
\n
100.00
\n
Atmor Industries LTD
\n
100.00
\n
47
\n
Atmor Industries Ltd
\n
Israel
\n
USD
\n
1,790,409
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
48
\n
BCE S.r.l.
\n
Italy
\n
EUR
\n
10,400
\n
BUR
\n
100.00
\n
Ecoflam Bruciatori S.p.A.
\n
100.00
\n
49
\n
Calentadores de America S.A.
\n
de C.V.
\n
Mexico
\n
MXN
\n
1,226,593,637
\n
TC
\n
100.00
\n
Ariston
\n
Thermo Mexico
\n
S.A. de C.V
\n
99.99
\n
Atag Heating B.V.
\n
0.01
\n
50
\n
Chromagen Australia PTY LTD
\n
Australia
\n
AUD
\n
10,358,995
\n
TC
\n
100.00
\n
Elcotherm AG
\n
51.00
\n
Third parties
\n
49.00
\n
51
\n
Chromagen Israel Ltd
\n
Israel
\n
ILS
\n
10.901
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
52
\n
Cuenod sas
\n
France
\n
EUR
\n
15,422,390
\n
BUR
\n
100.00
\n
Ariston France sas
\n
100.00
\n
53
\n
Domotec AG
\n
Switzerland
\n
CHF
\n
50,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
54
\n
Ecoflam Bruciatori S.p.A.
\n
Italy
\n
EUR
\n
3,690,000
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
55
\n
Elco Austria GmbH
\n
Austria
\n
EUR
\n
35,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
56
\n
Elco B.V.
\n
Netherlands
\n
EUR
\n
2,046,004
\n
TC
\n
100.00
\n
Elco Burners B.V.
\n
100.00
\n
57
\n
Elco Belgium N.V./S.A.
\n
Belgium
\n
EUR
\n
2,650,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
99.99
\n
Elco B.V.
\n
0.01
\n
58
\n
Elco Burners B.V.
\n
Netherlands
\n
EUR
\n
22.734
\n
BUR
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
59
\n
Elco Burners GmbH
\n
Germany
\n
EUR
\n
25,000
\n
BUR
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
60
\n
Elco GmbH
\n
Germany
\n
EUR
\n
50,000
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
61
\n
Elco Heating Solutions Limi-
\n
ted
\n
UK
\n
GBP
\n
3,001,750
\n
TC
\n
100.00
\n
Ariston Themo UK Ltd
\n
100.00
\n
62
\n
Elco International GmbH
\n
Germany
\n
EUR
\n
8,691,962
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
63
\n
Elco Italia S.p.A.
\n
Italy
\n
EUR
\n
3,500,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
64
\n
Elcotherm AG
\n
Switzerland
\n
CHF
\n
1,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
65
\n
Gastech-Energi A/S
\n
Denmark
\n
DKK
\n
7,554,935
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
66
\n
Ingrado S.r.l.
\n
Italy
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
67
\n
Kesselheld Gmbh
\n
Germany
\n
EUR
\n
83,333
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
68
\n
NTI Boilers Inc
\n
Canada
\n
CAD
\n
43,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n \n
\n \n
\n \n
\n \n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
69
\n
NTI-USA Inc
\n
USA
\n
USD
\n
100
\n
TC
\n
100.00
\n
NTI Boilers Inc
\n
100.00
\n
70
\n
PT Ariston Thermo Indonesia
\n
Indonesia
\n
IDR
\n
16,260,750,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston Pte Ltd.
\n
0.01
\n
71
\n
Racold
\n
Thermo Private Ltd
\n
India
\n
INR
\n
262,134,750
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
72
\n
S.H.E. d.o.o. Svilajnac
\n
Serbia
\n
RSD
\n
35,432,220
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
73
\n
SPM Innovation
\n
sas
\n
France
\n
EUR
\n
750,020
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
74
\n
Thermowatt (Wuxi) Electric
\n
Co., Ltd
\n
China
\n
CNY
\n
82,769,200
\n
COM
\n
100.00
\n
Ariston Thermo (China)
\n
Co., Ltd
\n
70.00
\n
Ariston Holding N.V.
\n
30.00
\n
75
\n
Thermowatt Professional
\n
S.r.l.
\n
Italy
\n
EUR
\n
100,000
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
76
\n
Thermowatt S.p.A.
\n
Italy
\n
EUR
\n
7,700,000
\n
COM
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
(*)
\n
Refers to the main Division
\n
LIST OF COMPANIES NOT INCLUDED IN THE SCOPE OF CONSOLIDATION
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct con-
\n
trolling in-
\n
terest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Joint venture \"Ariston
\n
Thermo - UTG LLC\" (**)
\n
Uzbekistan
\n
EUR
\n
1,000,000
\n
TC
\n
51.00
\n
Ariston Holding N.V.
\n
51.00
\n
49.00
\n
2
\n
Haas Heating B.V.
\n
Netherlands
\n
EUR
\n
100
\n
TC
\n
24.50
\n
Atag Heating B.V.
\n
24.50
\n
(**)
\n
The company was not included in the scope of consolidation because of its limited area of operation and little significance.
\n
\n \n
\n \n
\n \n
\n
Notes 2.4 \u2013 Deferred tax assets and liabilities
\n
The deferred tax assets and liabilities show a net balance of \u20ac 39.4 million, with a \u20ac 12.2 million decrease in respect to
\n
2021. The decrease in the net balance is driven by the increase of the deferred tax liabilities of \u20ac 10.9 million mainly due
\n
to Chromagen acquisition equal to \u20ac 2.8 million and to the recognition of deferred taxes related to the hedging and
\n
foreign exchange effects equal to \u20ac 8.1 million.
\n
\n \n
\n \n
\n
The components of net deferred tax assets as at 31 December 2022 are as follows:
\n
Deferred tax assets
\n
(in \u20ac million)
\n
2021
\n
P&L
\n
Equity
\n
Translation
\n
Differences
\n
2022
\n
Trade & Patents
\n
20.7
\n
-0.2
\n
20.5
\n
R&D/Software
\n
7.6
\n
7.6
\n
Tangible fixed assets
\n
18.7
\n
-1.7
\n
17.0
\n
Provision for warranties
\n
6.6
\n
4.1
\n
-0.1
\n
10.7
\n
Provision for other risks and charges
\n
14.0
\n
-0.6
\n
0.6
\n
14.0
\n
Employees benefits
\n
8.7
\n
-1.0
\n
-1.0
\n
6.8
\n
Inventory write-off
\n
1.8
\n
1.5
\n
-0.1
\n
3.3
\n
Losses
\n
7.2
\n
-3.3
\n
0.2
\n
4.1
\n
Timing differences on costs deduction
\n
4.9
\n
-0.3
\n
0.5
\n
5.1
\n
Other
\n
12.1
\n
-1.9
\n
1.8
\n
0.1
\n
12.1
\n
TOTAL
\n
102.4
\n
-3.3
\n
0.8
\n
1.2
\n
101.2
\n
8
\n
Deferred tax liabilities
\n
(in \u20ac million)
\n
2021
\n
P&L
\n
Equity
\n
Translation
\n
Differences
\n
2022
\n
Provision for warranties
\n
1.2
\n
1.2
\n
Provision for other risks and charges
\n
3.5
\n
0.2
\n
-0.1
\n
3.6
\n
Employees benefits
\n
1.1
\n
0.4
\n
0.1
\n
1.6
\n
Tangible and intangible fixed assets
\n
16.7
\n
-3.7
\n
0.8
\n
13.9
\n
Exchange effects and hedging
\n
2.0
\n
0.4
\n
8.1
\n
10.5
\n
Reversal of timing adjustments
\n
4.1
\n
-0.1
\n
0.1
\n
4.1
\n
Distribution of earnings
\n
16.2
\n
0.6
\n
16.8
\n
Other
\n
5.9
\n
-2.8
\n
6.8
\n
0.2
\n
10.1
\n
TOTAL
\n
50.8
\n
-5.0
\n
14.9
\n
1.1
\n
61.8
\n
The deferred tax assets due to the revaluation is mainly included in the trademarks and patents, software and tangible
\n
assets. The decrease of the deferred tax assets related to the revaluation is equal to \u20ac 1.8 million.
\n
The deferred tax assets on losses carry forward is equal to \u20ac 4.1 million. The decision to recognize deferred tax assets is
\n
made for each legal entity in the Group by critically assessing whether the conditions exist for the future recoverability
\n
of such assets on the basis of actual results, as well as updated plans.
\n
Starting from 2021, a deferred tax liability on the undistributed earnings in Ariston subsidiaries is recorded equal to the
\n
expected tax burden on the remittance of earnings from those jurisdictions The amount of the deferred tax liabilities on
\n
undistributed earnings recorded in 2022 is equal to \u20ac 16.8 million.
\n
Ariston recognizes in its consolidated statement of financial position within Deferred tax assets, the amount of deferred
\n
tax assets less the deferred tax liabilities of the individual consolidated legal entities, where these may be offset.
\n
\n \n
\n
Notes 3.2 \u2013 Deferred tax liabilities
\n
Comments on \u201cDeferred tax liabilities\u201d are included in the note 2.4 - \u201cDeferred tax assets and liabilities\u201d, to which refer-
\n
ence should be made.
\n
\n \n
\n \n
\n
Note 2.6 \u2013 Other non-current assets
\n
\u201cOther non-current assets\u201d includes primarily the security deposits due beyond the year and other assets with a financial
\n
impact spreading beyond one year.
\n
At 31 December 2022, the item amounted to \u20ac 7.0 million, up compared with \u20ac 6.4 million in 2021
\n
\n \n
\n \n
\n \n
\n
Note 2.6 \u2013 Other non-current assets
\n
\u201cOther non-current assets\u201d includes primarily the security deposits due beyond the year and other assets with a financial
\n
impact spreading beyond one year.
\n
At 31 December 2022, the item amounted to \u20ac 7.0 million, up compared with \u20ac 6.4 million in 2021
\n
\n \n
\n
Note 2.12 \u2013 Other current assets
\n
\u201cOther current assets\u201d amounted to \u20ac 50.8 million versus \u20ac 56.4 million at 31 December 2021. The main items are:
\n
\n
Other current assets
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Indirect tax receivables
\n
25.0
\n
29.2
\n
Prepaid expenses
\n
8.8
\n
7.1
\n
Advances to suppliers
\n
8.2
\n
6.5
\n
Credits from government
\n
3.8
\n
3.5
\n
Receivables from employees
\n
1.2
\n
0.6
\n
State Green Programmes
\n
1.2
\n
8.3
\n
Other receivables
\n
2.5
\n
1.1
\n
Total
\n
50.8
\n
56.4
\n
During the period, the \u201cOther current assets\u201d did not record significant variations compared to the previous period ending
\n
at 31 December 2021.
\n
The significant decrease in the \u201cState Green Programmes\u201d equal to \u20ac 7.1 million is due to the receivables collection which
\n
occurred in December 2022, while at 31 December 2021, these receivables had been transferred to banks only partially.
\n
The residual balance as at 31 December 2022 is mainly related to the subsidiary Ingrado S.r.l., an Italian entity, that was
\n
unable to collect the receivables in the second part of 2022 due to contractual constraints.
\n
\n \n
\n
Note 2.7 \u2013 Non-current tax receivables
\n
\u201cNon-current tax receivables\u201d amounted to \u20ac 2.1 million as 31 December 2022, slightly up on \u20ac 0.9 million in the same
\n
period of 2021. The item includes receivables from tax authorities payable to the Group.
\n
\n \n
\n \n
\n
Note 2.10 \u2013 Tax receivables
\n
The item \u201cTax receivables\u201d includes primarily the amounts due to the companies of the Group from the taxation author-
\n
ities in several countries where the Group operates. At 31 December 2022, the item amounted to \u20ac 28.4 million versus \u20ac
\n
29.8 million in 2021, mainly due to:
\n
Tax receivables
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Tax receivables for taxes paid in excess
\n
16.7
\n
13.3
\n
Tax receivables from Parent company
\n
7.1
\n
13.8
\n
Other short-term tax receivables
\n
4.6
\n
2.7
\n
Total
\n
28.4
\n
29.8
\n
Ariston Holding N.V. is incorporated in the Netherlands but is a tax resident of Italy and is controlled by Merloni Holding
\n
S.p.A.. Ariston Holding N.V. and its Italian subsidiaries have adopted the national tax consolidation scheme. At 31 Decem-
\n
ber 2022, the individual Italian companies' income tax receivables and payables were recorded from or to, respectively,
\n
Merloni Holding S.p.A.. These amounts are included in the \u201cTax receivables\u201d from the controlling shareholder for tax
\n
consolidation. The decrease amounts to \u20ac 6.7 million mainly derives from lower tax losses realized in Italy in 2022.
\n
\n \n
\n
Note 3.7 \u2013 Non-current tax liabilities
\n
\u201cNon-current tax liabilities\u201d amounted to \u20ac 1.8 million as 31 December 2022 down by for \u20ac 6.0 million compared to the
\n
amount as at 31 December 2021. The decrease was mainly due to reclassification to \u201cTax payables\u201d of \u20ac 6.5 million related
\n
to the third payment of substitute income tax (overall equal to 3% of the accounting revaluation carried out in the local
\n
financial statements of Italian companies), payment of which shall be made within the deadline for paying the balance of
\n
income taxes for tax period 2023.
\n
\n
Note 3.9 \u2013 Tax payables
\n
\u201cTax payables\u201d amounted to \u20ac 53.0 million versus \u20ac 45.1 million in 2021.
\n
\n
Tax payables
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Income tax payables
\n
30.5
\n
27.2
\n
Tax payables due to Parent company
\n
13.6
\n
10.4
\n
Other tax payables
\n
8.8
\n
7.5
\n
Total
\n
53.0
\n
45.1
\n
This item includes the income tax payables related to Italian and foreign companies. The increase in tax payable in 2022
\n
is mainly reflected in the increase in the business performance occurred during the year.
\n
Ariston Holding N.V. is incorporated in the Netherlands but is a tax resident of Italy and is controlled by Merloni Holding
\n
S.p.A.. Ariston Holding N.V. and its Italian subsidiaries have adopted the national tax consolidation scheme. At 31 Decem-
\n
ber 2022, the individual Italian companies' income tax receivables and payables were recorded from or to, respectively,
\n
Merloni Holding S.p.A.. These amounts are included in the \u201cTax payables\u201d due to the controlling shareholder for tax
\n
consolidation.
\n
\n
Note 2.8 \u2013 Inventories
\n
Following is the composition of \u201cInventories\u201d at 31 December 2022 and at 31 December 2021, net of the obsolete stock
\n
provision.
\n
Inventories
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Raw materials
\n
158.1
\n
125.6
\n
Work in progress and semi-finished goods
\n
20.4
\n
13.4
\n
Finished goods and goods for resale
\n
298.2
\n
243.0
\n
Total
\n
476.8
\n
382.0
\n
Gross value of inventories, at 31 December 2022, amounted to \u20ac 525.6 million (\u20ac 422.4 million at 31 December 2021),
\n
whereas the provision amounted to \u20ac 48.8 million (\u20ac 40.4 million at 31 December 2021).
\n
Inventories totalled \u20ac 476.8 million at 31 December 2022, up by \u20ac 94.8 million on 31 December 2021. This change is
\n
essentially attributable to several factors, as summarised below:
\n
\u2022
\n
Organic increases of \u20ac 72.2 million mainly driven by the finished goods and goods for resale stocking necessary to
\n
maintain sound product availability to customers, in line with the Group\u2019s strategic guidelines, and a net increase in
\n
raw materials weighted average price;
\n
\u2022
\n
Perimeter variation equal to \u20ac 18.4 million;
\n
\u2022
\n
Positive exchange rate effect of \u20ac 4.2 million.
\n
Inventories are recognised at the lesser value between purchase and production cost, according to the weighted average
\n
cost method and their net realisable value which includes cost necessary to sell inventories and based on that the Group
\n
did not have a material impact.
\n
The provision set up for obsolete or slow-moving stock is substantially in line with previous year in terms of incidence of
\n
the percentage on Inventories gross amount meanwhile showing an absolute value equal to \u20ac 8.4 million.
\n
The obsolescence risk is measured taking into account stock rotation, calculated monthly as the ratio of inventories to
\n
consumption over the last twelve months for raw materials (forty-eight months for spare parts with life cycle defined as
\n
\u201cinactive\u201d), and the product life cycle. In the obsolescence risk, the Group has considered for materials and products in
\n
stock the technological obsolescence which can arise from climate change. On the basis of the parameters mentioned
\n
above, impairment percentages are applied which increase in proportion to the estimated risk.
\n
\n
The change in the obsolete stock provision was as follows:
\n
Obsolete stock provision
\n
Raw materials
\n
Work in progress and
\n
semi-finished goods
\n
Finished goods and
\n
goods for resale
\n
Total
\n
(in \u20ac million)
\n
As at 31.12.2021
\n
10.1
\n
1.8
\n
28.5
\n
40.4
\n
Perimeter variation
\n
0.1
\n
0.0
\n
1.1
\n
1.3
\n
Increases
\n
10.6
\n
2.3
\n
17.3
\n
30.1
\n
Decreases
\n
-2.2
\n
-0.5
\n
-3.0
\n
-5.7
\n
Release
\n
-6.7
\n
-1.7
\n
-9.2
\n
-17.5
\n
Exchange rate effect
\n
0.2
\n
0.0
\n
0.1
\n
0.3
\n
Other
\n
-0.7
\n
0.0
\n
0.7
\n
0.0
\n
Total changes
\n
1.3
\n
0.1
\n
7.1
\n
8.4
\n
As at 31.12.2022
\n
11.4
\n
1.9
\n
35.6
\n
48.8
\n
The recognition of inventories according to the weighted average cost method does not show any significant differences
\n
compared with a valuation at current costs.
\n
\n
Note 2.9 \u2013 Trade receivables
\n
Trade receivables amounted to \u20ac 308.4 million, net of a bad debt provision of \u20ac 17.0 million.
\n
Compared with 31 December 2021, the net balance shows a \u20ac 60.2 million increase in absolute values. This increase is
\n
attributable to the strong growth in turnover, specifically in the markets with higher days outstanding sales, partially
\n
compensated by the strong collection performance and reduction in payment terms.
\n
The percentage of trade receivables on the turnover of the last 12 months was equal to 13.0% compared with 12.5%
\n
recorded at 31 December 2021.
\n \n
\n \n
\n \n
\n
The bad debt provision of \u20ac 17.0 million shows a net decrease by \u20ac 2.0 million compared with 31 December 2021. The
\n
decrease is partly attributable to the utilization for ending with a loss of non-performing and non-recoverable items and
\n
partly attributable to the reduction of credit risk evaluation. For Trade Receivables, the Group applies two approaches in
\n
the calculation of expected losses. The Group applies a matrix-based model. The Policy defines a percentage of statistical
\n
devaluation based on the division of trade receivables into clusters of ageing and country risk. For companies with a credit
\n
insurance contract, percentages applied on the category insured customers is reduced by approximately half of it. In the
\n
same perimeter, for a percentage of 31% in terms of newly recalculated bad debt fund, the Group is applying a new
\n
impairment criteria based on the probability of default (PD) obtained from external sources and historical loss rates.
\n
A specific fund is provided for legal and specific devaluation by single clients\u2019 situation and their economic environment.
\n
At 31 December 2022, the provision was deemed to be appropriate for the estimated losses from unsecured or disputed
\n
receivables.
\n
Following are the changes in the bad debt provision:
\n
Bad debt provision
\n
Short-term
\n
Medium/
\n
Total
\n
(in \u20ac million)
\n
long-term
\n
As at 31.12.2021
\n
13.0
\n
6.0
\n
19.0
\n
Perimeter variation
\n
1.4
\n
0.0
\n
1.4
\n
Increases
\n
1.2
\n
0.3
\n
1.6
\n
Decreases
\n
-0.9
\n
-1.7
\n
-2.6
\n
Release
\n
-2.0
\n
-0.3
\n
-2.2
\n
Exchange rate effect
\n
0.0
\n
0.0
\n
0.0
\n
Other
\n
-0.5
\n
0.4
\n
-0.1
\n
Total changes
\n
-0.7
\n
-1.3
\n
-1.9
\n
As at 31.12.2022
\n
12.3
\n
4.7
\n
17.0
\n
\n \n
\n \n
\n \n
\n
The item \u201cOther\u201d includes primarily the reclassifications made for the period in order to ensure the correct recognition
\n
of receivables subject to special valuation, such as those in legal proceedings or in litigation.
\n
Please refer to paragraph \u2018Credit Risk\u2019 for further details on ageing and the related Bad Debt Provision.
\n
\n
Maximum risk exposure
\n
The maximum exposure to risk, net of guarantees, at 31 December 2022 was \u20ac 110.3 million. The Group has not identified
\n
any concentration risk on customers and on its trade receivables as the Group has a very diversified customers risk port-
\n
folio without any significant increase in a risky customer share. The Group seeks to mitigate the credit risk by depositing
\n
its liquidity in leading bank and corporate counterparties selected according to their credit quality.
\n
The table below summarises the types of instruments protecting against credit risk used by the Group:
\n
Type
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Receivables under insurance policies
\n
192.4
\n
62.4%
\n
156.6
\n
63.0%
\n
Other
\n
5.7
\n
1.9%
\n
9.6
\n
4.0%
\n
Total insured receivables
\n
198.1
\n
64.2%
\n
166.2
\n
67.0%
\n
Non-insured receivables
\n
103.3
\n
35.8%
\n
82.1
\n
33.0%
\n
Total receivables
\n
308.4
\n
100.0%
\n
248.3
\n
100.0%
\n
\u201cOther\u201d mainly includes receivables insured through letters of credit and bank guarantees.
\n \n
\n \n
\n
Overdue financial assets
\n
The instrument used for the classification and monitoring of credit is ageing, according to which the accounts payables
\n
are divided by their expiry dates, starting from the most recent (1-30 days) to the oldest (beyond 120 days).
\n
The amount of receivables past-due within 60 days is \u20ac 26 million (versus \u20ac 19.6 million at December 2021) whereas the
\n
amount of receivables past-due beyond 60 days is \u20ac 16.2 million (versus \u20ac 13.8 million at December 2021).
\n
For the purposes of representing trade receivables for issued invoices by past-due ranges, the following table is provided:
\n
Overdue ageing
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Overdue 0-30
\n
19.3
\n
5.1%
\n
14.2
\n
6.0%
\n
Overdue 31-60
\n
6.7
\n
2.2%
\n
5.4
\n
2.0%
\n
Overdue 61-120
\n
3.9
\n
1.2%
\n
1.8
\n
1.0%
\n
Due after 120 and legal
\n
12.3
\n
4.0%
\n
12.0
\n
4.0%
\n
The credit policy defines the depreciation grid for the statistical part differentiating percentage by aging and country risk
\n
class where the trade receivable amount is allocated.
\n
The current (not overdue) receivables amounted to \u20ac 266.2 million. Also these amounts are allocated to their country
\n
risk class and subject to depreciation according to the assigned percentage of devaluation. The related provision for bad
\n
debt amounted to \u20ac 3.2 million.
\n
For Companies with a credit insurance contract, percentages applied on the category insured customers will be lower by
\n
60% up to overdue below 180 days, while over 180 days the percentages remain the same.
\n
As at 31 December 2022 the Group did not measure trade receivables at amortized cost because there are no trade
\n
receivables with maturities greater than one year.
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Depreciation grid
\n
Trade receivables aging
\n
Country risk A
\n
Country risk B
\n
Country risk C
\n
Country risk D
\n
Overdue > 360 days
\n
70%
\n
80%
\n
90%
\n
100%
\n
Overdue 271- 360
\n
50%
\n
60%
\n
70%
\n
90%
\n
Overdue 181- 270
\n
35%
\n
40%
\n
50%
\n
70%
\n
Overdue 121-180
\n
20%
\n
25%
\n
35%
\n
50%
\n
Overdue 91-120
\n
12.5%
\n
15%
\n
20%
\n
30%
\n
Overdue 61-90
\n
7.5%
\n
10%
\n
12.5%
\n
20%
\n
Overdue 31-60
\n
2.5%
\n
5%
\n
7.5%
\n
10%
\n
Overdue 0-30
\n
1.25%
\n
1.5%
\n
2.5%
\n
5%
\n
Current (not overdue)
\n
0.5%
\n
0.75%
\n
1%
\n
1.5%
\n
Following is the summary of the specific and simplified ECLs assessments used to determine the bad debt provision:
\n
Analysis of bad debt provision
\n
31.12.2022
\n
31.12.2021
\n
Total receivables
\n
Gross
\n
325.4
\n
267.3
\n
Provision
\n
17.0
\n
19.0
\n
Net
\n
308.4
\n
248.3
\n
Receivables impaired on a specific basis
\n
Gross
\n
5.2
\n
6.7
\n
Provision
\n
4.7
\n
6.0
\n
Net
\n
0.5
\n
0.7
\n
Receivables impaired on a simplified ECLs
\n
Gross
\n
320.2
\n
260.6
\n
Provision
\n
12.3
\n
13.0
\n
Net
\n
307.9
\n
247.6
\n
\n
The bad debt provision of \u20ac 17.0 million shows a net decrease by \u20ac 2.0 million compared with 31 December 2021. The
\n
decrease is partly attributable to the utilization for ending with a loss of non-performing and non-recoverable items and
\n
partly attributable to the reduction of credit risk evaluation. For Trade Receivables, the Group applies two approaches in
\n
the calculation of expected losses. The Group applies a matrix-based model. The Policy defines a percentage of statistical
\n
devaluation based on the division of trade receivables into clusters of ageing and country risk. For companies with a credit
\n
insurance contract, percentages applied on the category insured customers is reduced by approximately half of it. In the
\n
same perimeter, for a percentage of 31% in terms of newly recalculated bad debt fund, the Group is applying a new
\n
impairment criteria based on the probability of default (PD) obtained from external sources and historical loss rates.
\n
A specific fund is provided for legal and specific devaluation by single clients\u2019 situation and their economic environment.
\n
At 31 December 2022, the provision was deemed to be appropriate for the estimated losses from unsecured or disputed
\n
receivables.
\n
Following are the changes in the bad debt provision:
\n
Bad debt provision
\n
Short-term
\n
Medium/
\n
Total
\n
(in \u20ac million)
\n
long-term
\n
As at 31.12.2021
\n
13.0
\n
6.0
\n
19.0
\n
Perimeter variation
\n
1.4
\n
0.0
\n
1.4
\n
Increases
\n
1.2
\n
0.3
\n
1.6
\n
Decreases
\n
-0.9
\n
-1.7
\n
-2.6
\n
Release
\n
-2.0
\n
-0.3
\n
-2.2
\n
Exchange rate effect
\n
0.0
\n
0.0
\n
0.0
\n
Other
\n
-0.5
\n
0.4
\n
-0.1
\n
Total changes
\n
-0.7
\n
-1.3
\n
-1.9
\n
As at 31.12.2022
\n
12.3
\n
4.7
\n
17.0
\n
\n \n
\n \n
\n
The item \u201cOther\u201d includes primarily the reclassifications made for the period in order to ensure the correct recognition
\n
of receivables subject to special valuation, such as those in legal proceedings or in litigation.
\n
Please refer to paragraph \u2018Credit Risk\u2019 for further details on ageing and the related Bad Debt Provision.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
Credit risk is the Group\u2019s exposure to potential losses from failure by commercial counterparties to fulfil obligations they
\n
have entered into. Failure to collect or late collection of trade receivables could impact negatively on the Group\u2019s eco-
\n
nomic results and financial equilibrium.
\n
The Group\u2019s policy for managing credit risk from commercial activities envisages the preliminary assessment of counter-
\n
parties\u2019 creditworthiness, the management of credit limits and the adoption of risk mitigation instruments, such as the
\n
acquisition of bank guarantees, letters of credit and the external transfer of part of the insolvency risk through a global
\n
program of credit insurance.
\n
The portion of insured receivables, at 31 December 2022, was 64.2% of the total exposure.
\n
In order to mitigate credit risk, the Group has also adopted a policy which defines the strategic guidelines and operating
\n
rules for an effective system to control each company\u2019s credit.
\n
In addition, the policy defines the means for estimating expected losses, in accordance with the means set out hereafter
\n
and taking account of the mitigating factor represented by the aforementioned instruments for insured credit.
\n \n
\n \n
\n \n
\n \n
\n
For trade receivables, the Group uses the \u201c12-month ECL\u201d methodology to determine the lifetime of the expected losses
\n
associated with the probability of default over the next 12 months, using a forward-looking approach. The calculation of
\n
the expected credit loss, which is made on the residual life of the receivables at the date of their recognition in the
\n
financial statements and the subsequent reporting dates, considers a 12-month time horizon, since at the closing date of
\n
the period there was no significant increase in credit risk.
\n
In particular, the Group applies an approach defined as a \u201cprovision matrix\u201d, based on the division of trade receivables
\n
into clusters on the basis of type (ordinary/legal), ageing (past-due ranges) and country rating. For the purposes of deter-
\n
mining expected losses, the Group applies a definition of the default threshold for ordinary receivables of 120 days past
\n
due and 100% for receivables which have moved to legal default, since this is considered an effective indication of the
\n
threshold beyond which the receivable is considered unrecoverable. The calculation of the probability of default is there-
\n
fore based on the effective number of days the payment is overdue. In the same perimeter, for a percentage of 31% in
\n
terms of newly recalculated bad debt fund, the Group is applying a new impairment criteria based on the probability of
\n
default (PD) obtained from external sources and historical loss rates.
\n
As regards the write-off criteria, these are clearly based on the specific statutory and tax rules in force in the various
\n
countries where the Group companies are present.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Maximum risk exposure
\n
The maximum exposure to risk, net of guarantees, at 31 December 2022 was \u20ac 110.3 million. The Group has not identified
\n
any concentration risk on customers and on its trade receivables as the Group has a very diversified customers risk port-
\n
folio without any significant increase in a risky customer share. The Group seeks to mitigate the credit risk by depositing
\n
its liquidity in leading bank and corporate counterparties selected according to their credit quality.
\n
The table below summarises the types of instruments protecting against credit risk used by the Group:
\n
Type
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Receivables under insurance policies
\n
192.4
\n
62.4%
\n
156.6
\n
63.0%
\n
Other
\n
5.7
\n
1.9%
\n
9.6
\n
4.0%
\n
Total insured receivables
\n
198.1
\n
64.2%
\n
166.2
\n
67.0%
\n
Non-insured receivables
\n
103.3
\n
35.8%
\n
82.1
\n
33.0%
\n
Total receivables
\n
308.4
\n
100.0%
\n
248.3
\n
100.0%
\n
\u201cOther\u201d mainly includes receivables insured through letters of credit and bank guarantees.
\n \n
\n \n
\n
Overdue financial assets
\n
The instrument used for the classification and monitoring of credit is ageing, according to which the accounts payables
\n
are divided by their expiry dates, starting from the most recent (1-30 days) to the oldest (beyond 120 days).
\n
The amount of receivables past-due within 60 days is \u20ac 26 million (versus \u20ac 19.6 million at December 2021) whereas the
\n
amount of receivables past-due beyond 60 days is \u20ac 16.2 million (versus \u20ac 13.8 million at December 2021).
\n
For the purposes of representing trade receivables for issued invoices by past-due ranges, the following table is provided:
\n
Overdue ageing
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Overdue 0-30
\n
19.3
\n
5.1%
\n
14.2
\n
6.0%
\n
Overdue 31-60
\n
6.7
\n
2.2%
\n
5.4
\n
2.0%
\n
Overdue 61-120
\n
3.9
\n
1.2%
\n
1.8
\n
1.0%
\n
Due after 120 and legal
\n
12.3
\n
4.0%
\n
12.0
\n
4.0%
\n
The credit policy defines the depreciation grid for the statistical part differentiating percentage by aging and country risk
\n
class where the trade receivable amount is allocated.
\n
The current (not overdue) receivables amounted to \u20ac 266.2 million. Also these amounts are allocated to their country
\n
risk class and subject to depreciation according to the assigned percentage of devaluation. The related provision for bad
\n
debt amounted to \u20ac 3.2 million.
\n
For Companies with a credit insurance contract, percentages applied on the category insured customers will be lower by
\n
60% up to overdue below 180 days, while over 180 days the percentages remain the same.
\n
As at 31 December 2022 the Group did not measure trade receivables at amortized cost because there are no trade
\n
receivables with maturities greater than one year.
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Depreciation grid
\n
Trade receivables aging
\n
Country risk A
\n
Country risk B
\n
Country risk C
\n
Country risk D
\n
Overdue > 360 days
\n
70%
\n
80%
\n
90%
\n
100%
\n
Overdue 271- 360
\n
50%
\n
60%
\n
70%
\n
90%
\n
Overdue 181- 270
\n
35%
\n
40%
\n
50%
\n
70%
\n
Overdue 121-180
\n
20%
\n
25%
\n
35%
\n
50%
\n
Overdue 91-120
\n
12.5%
\n
15%
\n
20%
\n
30%
\n
Overdue 61-90
\n
7.5%
\n
10%
\n
12.5%
\n
20%
\n
Overdue 31-60
\n
2.5%
\n
5%
\n
7.5%
\n
10%
\n
Overdue 0-30
\n
1.25%
\n
1.5%
\n
2.5%
\n
5%
\n
Current (not overdue)
\n
0.5%
\n
0.75%
\n
1%
\n
1.5%
\n
Following is the summary of the specific and simplified ECLs assessments used to determine the bad debt provision:
\n
Analysis of bad debt provision
\n
31.12.2022
\n
31.12.2021
\n
Total receivables
\n
Gross
\n
325.4
\n
267.3
\n
Provision
\n
17.0
\n
19.0
\n
Net
\n
308.4
\n
248.3
\n
Receivables impaired on a specific basis
\n
Gross
\n
5.2
\n
6.7
\n
Provision
\n
4.7
\n
6.0
\n
Net
\n
0.5
\n
0.7
\n
Receivables impaired on a simplified ECLs
\n
Gross
\n
320.2
\n
260.6
\n
Provision
\n
12.3
\n
13.0
\n
Net
\n
307.9
\n
247.6
\n
\n \n
\n \n
\n \n
\n \n
\n
\u2022
\n
the positive impact of \u201cFinancial derivative assets\u201d for \u20ac 34.8 million (\u20ac 0.8 million as at 31 December 2021) is gener-
\n
ated by fair value measurement on derivative financial instruments. The fair value of financial derivatives included
\n
hedges on commodities for \u20ac 0.7 million, on interest rates for \u20ac 32.6 million and on foreign exchange for \u20ac 1.5 million.
\n
The amount of derivatives closed but not yet collected amounted to \u20ac 2.0 million (\u20ac 1.0 million as at 31 December
\n
2021);
\n
\n
As at 31 December 2022, \u201cCurrent financial liabilities\u201d amounted to \u20ac 49.7 million versus \u20ac 46.1 million in the previous
\n
year.
\n
\n
Liabilities are the following:
\n
Current financial liabilities
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
Short-term debt due to bank
\n
21.6
\n
22.8
\n
Financial derivative liabilities
\n
10.5
\n
7.4
\n
Other current financial liabilities
\n
17.6
\n
15.8
\n
Total
\n
49.7
\n
46.1
\n
\n
As at 31 December 2022, \u201cFinancial derivate liabilities\u201d amounted to \u20ac 10.5 million and included the negative fair value
\n
and derivatives closed but not yet paid of financial derivatives instruments.
\n
The fair value of financial derivatives included hedges on foreign exchange for \u20ac 3.5 million (\u20ac 1.2 million as at 31 Decem-
\n
ber 2021) and on commodities for \u20ac 1.3 million (\u20ac 0.1 million as at 31 December 2021).
\n
The negative accruals to financial derivatives closed but not yet paid at the reporting date amounted to \u20ac 5.6 million.
\n
The change in commodity, foreign exchange and interest rates hedges was offset by the change in the underlying hedged
\n
items. The fair value measurement of the derivative instruments has a direct contra-entry in the equity reserve related
\n
to the cash flow hedge for a total of \u20ac 22.8 million. For a more detailed explanation of hedging instruments, see the
\n
section on the instruments for financial risk management.
\n
\n
HEDGING INSTRUMENTS
\n
In summary, at 31 December 2022, the following financial hedging instruments are in place:
\n
\u2022
\n
against exchange rates \u2013 Swiss franc, British pound sterling, US dollar and Chinese renminbi;
\n
\u2022
\n
against commodities \u2013 copper, nickel, silver, aluminium and steel;
\n
\u2022
\n
against interest rates \u2013 medium/long-term floating rate loans.
\n
The hedging instruments applied to exchange rates were set up in order to reduce the Group\u2019s economic and transac-
\n
tional risk, and they meet all the formal requirements set out in the IAS/IFRSs and are therefore recognised in hedge
\n
accounting.
\n
The following table shows the details of hedging instruments in use as at 31 December 2022. The amounts are expressed
\n
in millions of euro:
\n
Hedging instruments
\n
31.12.2022
\n
(in \u20ac million)
\n
Nature of
\n
risk
\n
covered
\n
Fair value
\n
31.12.2022
\n
Non-current
\n
financial
\n
assets
\n
Current
\n
financial
\n
assets
\n
Non-
\n
current
\n
financial
\n
liabili-
\n
ties
\n
Current fi-
\n
nancial
\n
liabilities
\n
Total
\n
Interest Rate Swap
\n
Interest
\n
rate
\n
32.5
\n
32.5
\n
32.5
\n
Average Forward
\n
FX
\n
-2.0
\n
1.5
\n
-3.5
\n
-2.0
\n
Forward
\n
Commodity
\n
-1.1
\n
0.2
\n
-1.3
\n
-1.1
\n
Average Forward
\n
Commodity
\n
0.5
\n
0.5
\n
0.0
\n
0.5
\n
Hedging instruments
\n
30.0
\n
34.8
\n
-4.8
\n
30.0
\n
The following table shows the details of hedging instruments in use as at 31 December 2022. The amounts are expressed
\n
in millions of euro:
\n
Hedging instruments
\n
31.12.2021
\n
(in \u20ac million)
\n
Nature of
\n
risk covered
\n
Fair value
\n
31.12.2021
\n
Non-current
\n
financial
\n
assets
\n
Current
\n
financial
\n
assets
\n
Non-cur-
\n
rent
\n
financial
\n
liabilities
\n
Current
\n
financial
\n
liabilities
\n
Total
\n
Interest Rate Swap
\n
Interest rate
\n
-1.2
\n
-1.2
\n
-1.2
\n
Average Forward
\n
FX
\n
-1.2
\n
-1.2
\n
-1.2
\n
Forward
\n
Commodity
\n
0.8
\n
0.8
\n
0.8
\n
Average Forward
\n
Commodity
\n
-0.1
\n
-0.1
\n
-0.1
\n
Hedging instruments
\n
-1.7
\n
-1.2
\n
-0.5
\n
-1.7
\n
\n \n
\n
Note 2.12 \u2013 Other current assets
\n
\u201cOther current assets\u201d amounted to \u20ac 50.8 million versus \u20ac 56.4 million at 31 December 2021. The main items are:
\n
\n \n
\n \n
\n
Other current assets
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Indirect tax receivables
\n
25.0
\n
29.2
\n
Prepaid expenses
\n
8.8
\n
7.1
\n
Advances to suppliers
\n
8.2
\n
6.5
\n
Credits from government
\n
3.8
\n
3.5
\n
Receivables from employees
\n
1.2
\n
0.6
\n
State Green Programmes
\n
1.2
\n
8.3
\n
Other receivables
\n
2.5
\n
1.1
\n
Total
\n
50.8
\n
56.4
\n
During the period, the \u201cOther current assets\u201d did not record significant variations compared to the previous period ending
\n
at 31 December 2021.
\n
The significant decrease in the \u201cState Green Programmes\u201d equal to \u20ac 7.1 million is due to the receivables collection which
\n
occurred in December 2022, while at 31 December 2021, these receivables had been transferred to banks only partially.
\n
The residual balance as at 31 December 2022 is mainly related to the subsidiary Ingrado S.r.l., an Italian entity, that was
\n
unable to collect the receivables in the second part of 2022 due to contractual constraints.
\n
\n \n
\n
Note 2.13 \u2013 Cash and cash equivalents
\n
\u201cCash and cash equivalents\u201d, amounting to \u20ac 999.3 million as at the end of December 2022, are represented almost
\n
entirely by cash in bank, as shown in the following table:
\n
Cash and cash equivalents
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Bank and postal deposits
\n
961.2
\n
653.3
\n
Short-term Investments
\n
38.0
\n
30.9
\n
Cash on hand
\n
0.2
\n
5.5
\n
Total
\n
999.3
\n
689.7
\n
The amount shown in the line \u201cBank and postal deposits\u201d primarily consists of credit balances on current accounts and
\n
compared to 31 December 2021, it increased by \u20ac 307.9 million mainly due to new medium/long-term syndicated line
\n
entered in 2022. \u201cShort-term Investments\u201d increased by \u20ac 7.1 million compared to 31 December 2021.
\n
The amount of cash on hand with a pre-determined use is not significant.
\n
The reconciliation among Cash & Cash Equivalent and Consolidated statement of cash flows is provided below:
\n
Cash & Cash Equivalent reconciliation
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Cash and cash equivalents
\n
(as included in the Consolidated statement of finan-
\n
cial position)
\n
999.3
\n
689.7
\n
Short-term bank notes or similar tradable instruments and others
\n
3.3
\n
3.5
\n
Bank overdrafts
\n
-7.4
\n
-21.8
\n
Notes payable
\n
-17.6
\n
-15.8
\n
Cash and cash equivalents (as included in the Consolidated statement of cash
\n
flows)
\n
977.5
\n
655.5
\n
\n \n
\n \n
\n
Note 2.14 \u2013 Assets held for sale
\n
At 31 December 2022, the item \u201cAssets held for sale\u201d amounted to \u20ac 1.3 million, down by \u20ac 1.0 million compared with
\n
31 December 2021. The item includes the assets held for sale by the Romanian and the Chinese subsidiaries, recognised,
\n
as stated in IFRS 5, at the lower of the net book value and the fair value (net of sale costs).
\n
During the year, \u2018Assets held for sale\u2019 registered a decrease related to the Follina (Treviso, Italy) plant sold in September
\n
2022 and an increase for a reclassification from \u2018Property, Plant and Equipment\u2019 for the fixed assets held for sale by a
\n
Chinese subsidiary.
\n
\n \n
\n \n
\n \n
\n
Note 2.14 \u2013 Assets held for sale
\n
At 31 December 2022, the item \u201cAssets held for sale\u201d amounted to \u20ac 1.3 million, down by \u20ac 1.0 million compared with
\n
31 December 2021. The item includes the assets held for sale by the Romanian and the Chinese subsidiaries, recognised,
\n
as stated in IFRS 5, at the lower of the net book value and the fair value (net of sale costs).
\n
During the year, \u2018Assets held for sale\u2019 registered a decrease related to the Follina (Treviso, Italy) plant sold in September
\n
2022 and an increase for a reclassification from \u2018Property, Plant and Equipment\u2019 for the fixed assets held for sale by a
\n
Chinese subsidiary.
\n
\n \n
\n \n
\n \n
\n
Note 3.1 \u2013 Equity
\n
At 31 December 2022, the fully paid up share capital of Ariston Holding N.V. was \u20ac 46.1 million, comprising 106,183,532
\n
ordinary shares. The capital structure as at 31 December 2022 for ordinary and special voting shares is reported below.
\n
Shareholders
\n
Ordinary
\n
Shares (1)
\n
% of Ordinary
\n
Shares
\n
Special Voting
\n
Shares A
\n
(2)
\n
Ordinary Shares
\n
and Special
\n
Voting Shares A
\n
% Ordinary Shares
\n
and Special Voting
\n
Shares A
\n
Merloni Holding S.p.A.
\n
19,426,000
\n
18.29%
\n
198,000,000
\n
217,426,000
\n
65.65%
\n
Amaranta S.r.l.
\n
2,649,000
\n
2.49%
\n
27,000,000
\n
29,649,000
\n
8.95%
\n
Treasury shares
\n
1,500,000
\n
1.41%
\n
1,500,000
\n
0.45%
\n
Other shareholders
\n
82,608,532
\n
77.80%
\n
82,608,532
\n
24.94%
\n
Total
\n
106,183,532
\n
100.00%
\n
225,000,000
\n
331,183,532
\n
100.00%
\n
(1) Ordinary shares are listed, freely transferable and each of them confers the right to cast one vote.
\n
(2) Special Voting Shares confer economic rights, are not listed and are not transferable.
\n
\n \n
\n \n \n
\n
The total consolidated equity at 31 December 2022 amounted to \u20ac 1,012.2 million, up compared with \u20ac 878.1 million at
\n
31 December 2021.
\n
The overall change is the result of the sum of positive and negative items, such as:
\n
\u2022
\n
the increase in Group net profit for the period, amounting to \u20ac 140.3 million;
\n
\u2022
\n \n
\n
in August 2022, Ariston Group started a Treasury shares buyback program to serve the Group\u2019s LTI plans with a num-
\n
ber of Ariston shares to be acquired equal to 1,500,000. The Treasury shares buyback program ended on 3 November
\n
2022 and the total amount of Treasury shares at 31 December 2022 was equal to \u20ac 12.5 million;
\n
\n \n
\u2022
\n
the increase of \u201cNon-controlling interest and reserves\u201d related to the perimeter variation for the acquisition of Chro-
\n
magen Australia for 51%;
\n
\u2022
\n
the financial statements conversion reserve into the Group currency, used to recognise the differences in exchange
\n
rates deriving from the translation of the financial statements of foreign subsidiaries, not included in the Euro area,
\n
had a positive impact of \u20ac 11.6 million;
\n
\u2022
\n
the decrease in the \u201cRetained Earnings and other reserves\u201d for the dividends paid in May 2022 for a total amount
\n
equal to \u20ac 46.4 million;
\n
\u2022
\n
the positive change due to the remeasurement of the pension provisions, for \u20ac 7.9 million, mainly following changes
\n
in the financial and demographic assumptions, recognised in equity in compliance with the revised IAS 19;
\n
\u2022
\n
the increase in the \u201cReserve for gains/losses\u201d for a total amount equal to \u20ac 23.7 million due to the positive MTM in
\n
cash flow hedge accounting;
\n
\u2022
\n
Ariston Group has, from 2021, equity incentive plans under which a combination of performance share units (\u201cPSUs\u201d),
\n
which each represent the right to receive one Ariston common share, have been awarded to the Executive Directors
\n
and Non-Executive Directors. The \u201cStock-based incentive plans reserve\u201d, during the year, increases for \u20ac 6.6 million
\n
for the expense of LTI plans for the year 2022 and decrease for \u20ac 19.6 million following the capital increases executed
\n
in 2022 for LTI plans for the years 2016-2019. As at 31 December 2022 the reserve was equal to \u20ac 11.4 million (\u20ac 24.4
\n
million as at 31 December 2021) and it is related to long-term incentive plans of 2020-2022:
\n
-
\n
2020: \u20ac 7.1 million
\n
-
\n
2021: \u20ac 3.3 million
\n
-
\n
2022: \u20ac 1.0 million
\n
For further detail, refer to \u2018Note 3.1.1 - Stock-based incentive plans payments\u2019.
\n
\n \n
\n \n
\n \n
\n
Dividends paid
\n
The table below shows the dividends approved and paid during the year and in the previous years:
\n
DIVIDENDS to the parents
\n
(in thousand \u20ac)
\n
2022
\n
2021
\n
2020
\n
Dividends paid during the period
\n
46,366
\n
48,268
\n
128,621(*)
\n
(*) including \u20ac 28.4 million in regular dividends authorised upon the approval of the 2019 financial statements and \u20ac 100.2 million in special dividends.
\n
As at the reporting date, there were no dividends approved by the Annual General Meeting yet to be paid.
\n
\n \n
\n \n
\n \n
\n
Long-term incentive
\n
Until Admission, the executive directors participated in the long-term incentive plan providing for phantom stock. Upon
\n
Admission this plan was terminated and the outstanding phantom stock options were converted (a) at the option of the
\n
beneficiaries, into ordinary shares at the offer price of the Company's initial public offering or cash (in relation to vested
\n
phantom stock options) and (b) into restricted share units (in relation to unvested phantom stock options), with a vesting
\n
period of three years from the date of the original grant (phantom stock options granted in 2019 vest in 2022, phantom
\n
stock options granted in 2020 vest in 2023). In addition, a new long-term incentive plan has been approved by the general
\n
meeting providing for awards in the form of performance share units for the 2021 LTI.
\n
The executive directors have chosen to convert the vested phantom stock options entirely into ordinary shares.
\n
The table below provides an overview of the conversion result of the phantom stock options granted in 2016, 2017 and
\n
2018 that vested before Admission. Settlement of the conversion of these phantom stock options took place in the first
\n
half of 2022.
\n
Executive director
\n
Number of ordinary shares
\n
Paolo Merloni
\n
483,584
\n
Laurent Jacquemin
\n
347,817
\n
The table below provides an overview of the conversion result for the phantom stock options granted in 2019 and 2020
\n
that were unvested at Admission and converted into restricted share units at the offer price of the Company's initial
\n
public offering and the 2021 and 2022 grant of performance share units.
\n
Director,
\n
position
\n
Main conditions of performance share plans
\n
Information regarding 2022
\n
Opening
\n
balance
\n
During the year
\n
Closing balance
\n
Plan
\n
Perfor-
\n
mance
\n
period
\n
Vesting
\n
start date
\n
Vesting
\n
end date
\n
Perfor-
\n
mance
\n
shares on 1
\n
January
\n
2022
\n
(1)
\n
Perfor-
\n
mance
\n
shares
\n
awarded
\n
Perfor-
\n
mance
\n
shares
\n
vested
\n
Shares
\n
vested
\n
Share
\n
awarded
\n
and un-
\n
vested
\n
Unexer-
\n
cised share
\n
Paolo Merloni
\n
Executive
\n
Chairman
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
176,268
\n
0,000
\n
176,268
\n
176,268
\n
0
\n
176,268
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
104,948
\n
(2)
\n
0
\n
0
\n
104,948
\n
0
\n
Laurent
\n
Jacquemin
\n
Chief Execu-
\n
tive Officer
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
105,761
\n
0
\n
105,761
\n
105,761
\n
0
\n
105,761
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
94,453
\n
(2)
\n
0
\n
0
\n
94,453
\n
0
\n
(1)
\n
Unvested share units.
\n
(2)
\n
The number of PSUs to be granted to the executive directors is determined dividing the individual grant (as resolved by the Board of Direc-
\n
tors on 2 March 2022 on the proposal of the compensation and talent development committee and approved by general meeting of 28
\n
April 2022) by the average closing price of the Company\u2019s shares on the 30 days before the grant. Specifically, for 2022 the average closing
\n
price on 30 days before the grant was \u20ac 9,5285.
\n
\n \n
\n \n
\n
Note 3.1 \u2013 Equity
\n
At 31 December 2022, the fully paid up share capital of Ariston Holding N.V. was \u20ac 46.1 million, comprising 106,183,532
\n
ordinary shares. The capital structure as at 31 December 2022 for ordinary and special voting shares is reported below.
\n
Shareholders
\n
Ordinary
\n
Shares (1)
\n
% of Ordinary
\n
Shares
\n
Special Voting
\n
Shares A
\n
(2)
\n
Ordinary Shares
\n
and Special
\n
Voting Shares A
\n
% Ordinary Shares
\n
and Special Voting
\n
Shares A
\n
Merloni Holding S.p.A.
\n
19,426,000
\n
18.29%
\n
198,000,000
\n
217,426,000
\n
65.65%
\n
Amaranta S.r.l.
\n
2,649,000
\n
2.49%
\n
27,000,000
\n
29,649,000
\n
8.95%
\n
Treasury shares
\n
1,500,000
\n
1.41%
\n
1,500,000
\n
0.45%
\n
Other shareholders
\n
82,608,532
\n
77.80%
\n
82,608,532
\n
24.94%
\n
Total
\n
106,183,532
\n
100.00%
\n
225,000,000
\n
331,183,532
\n
100.00%
\n
(1) Ordinary shares are listed, freely transferable and each of them confers the right to cast one vote.
\n
(2) Special Voting Shares confer economic rights, are not listed and are not transferable.
\n
\n \n
\n
in August 2022, Ariston Group started a Treasury shares buyback program to serve the Group\u2019s LTI plans with a num-
\n
ber of Ariston shares to be acquired equal to 1,500,000. The Treasury shares buyback program ended on 3 November
\n
2022 and the total amount of Treasury shares at 31 December 2022 was equal to \u20ac 12.5 million;
\n
\n
Note 3.1 \u2013 Equity
\n
At 31 December 2022, the fully paid up share capital of Ariston Holding N.V. was \u20ac 46.1 million, comprising 106,183,532
\n
ordinary shares. The capital structure as at 31 December 2022 for ordinary and special voting shares is reported below.
\n
Shareholders
\n
Ordinary
\n
Shares (1)
\n
% of Ordinary
\n
Shares
\n
Special Voting
\n
Shares A
\n
(2)
\n
Ordinary Shares
\n
and Special
\n
Voting Shares A
\n
% Ordinary Shares
\n
and Special Voting
\n
Shares A
\n
Merloni Holding S.p.A.
\n
19,426,000
\n
18.29%
\n
198,000,000
\n
217,426,000
\n
65.65%
\n
Amaranta S.r.l.
\n
2,649,000
\n
2.49%
\n
27,000,000
\n
29,649,000
\n
8.95%
\n
Treasury shares
\n
1,500,000
\n
1.41%
\n
1,500,000
\n
0.45%
\n
Other shareholders
\n
82,608,532
\n
77.80%
\n
82,608,532
\n
24.94%
\n
Total
\n
106,183,532
\n
100.00%
\n
225,000,000
\n
331,183,532
\n
100.00%
\n
(1) Ordinary shares are listed, freely transferable and each of them confers the right to cast one vote.
\n
(2) Special Voting Shares confer economic rights, are not listed and are not transferable.
\n
\n
The total consolidated equity at 31 December 2022 amounted to \u20ac 1,012.2 million, up compared with \u20ac 878.1 million at
\n
31 December 2021.
\n
The overall change is the result of the sum of positive and negative items, such as:
\n
\u2022
\n
the increase in Group net profit for the period, amounting to \u20ac 140.3 million;
\n
\u2022
\n \n
\n
in August 2022, Ariston Group started a Treasury shares buyback program to serve the Group\u2019s LTI plans with a num-
\n
ber of Ariston shares to be acquired equal to 1,500,000. The Treasury shares buyback program ended on 3 November
\n
2022 and the total amount of Treasury shares at 31 December 2022 was equal to \u20ac 12.5 million;
\n
\n \n
\u2022
\n
the increase of \u201cNon-controlling interest and reserves\u201d related to the perimeter variation for the acquisition of Chro-
\n
magen Australia for 51%;
\n
\u2022
\n
the financial statements conversion reserve into the Group currency, used to recognise the differences in exchange
\n
rates deriving from the translation of the financial statements of foreign subsidiaries, not included in the Euro area,
\n
had a positive impact of \u20ac 11.6 million;
\n
\u2022
\n
the decrease in the \u201cRetained Earnings and other reserves\u201d for the dividends paid in May 2022 for a total amount
\n
equal to \u20ac 46.4 million;
\n
\u2022
\n
the positive change due to the remeasurement of the pension provisions, for \u20ac 7.9 million, mainly following changes
\n
in the financial and demographic assumptions, recognised in equity in compliance with the revised IAS 19;
\n
\u2022
\n
the increase in the \u201cReserve for gains/losses\u201d for a total amount equal to \u20ac 23.7 million due to the positive MTM in
\n
cash flow hedge accounting;
\n
\u2022
\n
Ariston Group has, from 2021, equity incentive plans under which a combination of performance share units (\u201cPSUs\u201d),
\n
which each represent the right to receive one Ariston common share, have been awarded to the Executive Directors
\n
and Non-Executive Directors. The \u201cStock-based incentive plans reserve\u201d, during the year, increases for \u20ac 6.6 million
\n
for the expense of LTI plans for the year 2022 and decrease for \u20ac 19.6 million following the capital increases executed
\n
in 2022 for LTI plans for the years 2016-2019. As at 31 December 2022 the reserve was equal to \u20ac 11.4 million (\u20ac 24.4
\n
million as at 31 December 2021) and it is related to long-term incentive plans of 2020-2022:
\n
-
\n
2020: \u20ac 7.1 million
\n
-
\n
2021: \u20ac 3.3 million
\n
-
\n
2022: \u20ac 1.0 million
\n
For further detail, refer to \u2018Note 3.1.1 - Stock-based incentive plans payments\u2019.
\n
\n \n
\n
Dividends paid
\n
The table below shows the dividends approved and paid during the year and in the previous years:
\n
DIVIDENDS to the parents
\n
(in thousand \u20ac)
\n
2022
\n
2021
\n
2020
\n
Dividends paid during the period
\n
46,366
\n
48,268
\n
128,621(*)
\n
(*) including \u20ac 28.4 million in regular dividends authorised upon the approval of the 2019 financial statements and \u20ac 100.2 million in special dividends.
\n
As at the reporting date, there were no dividends approved by the Annual General Meeting yet to be paid.
\n
\n \n
\n
Long-term incentive
\n
Until Admission, the executive directors participated in the long-term incentive plan providing for phantom stock. Upon
\n
Admission this plan was terminated and the outstanding phantom stock options were converted (a) at the option of the
\n
beneficiaries, into ordinary shares at the offer price of the Company's initial public offering or cash (in relation to vested
\n
phantom stock options) and (b) into restricted share units (in relation to unvested phantom stock options), with a vesting
\n
period of three years from the date of the original grant (phantom stock options granted in 2019 vest in 2022, phantom
\n
stock options granted in 2020 vest in 2023). In addition, a new long-term incentive plan has been approved by the general
\n
meeting providing for awards in the form of performance share units for the 2021 LTI.
\n
The executive directors have chosen to convert the vested phantom stock options entirely into ordinary shares.
\n
The table below provides an overview of the conversion result of the phantom stock options granted in 2016, 2017 and
\n
2018 that vested before Admission. Settlement of the conversion of these phantom stock options took place in the first
\n
half of 2022.
\n
Executive director
\n
Number of ordinary shares
\n
Paolo Merloni
\n
483,584
\n
Laurent Jacquemin
\n
347,817
\n
The table below provides an overview of the conversion result for the phantom stock options granted in 2019 and 2020
\n
that were unvested at Admission and converted into restricted share units at the offer price of the Company's initial
\n
public offering and the 2021 and 2022 grant of performance share units.
\n
Director,
\n
position
\n
Main conditions of performance share plans
\n
Information regarding 2022
\n
Opening
\n
balance
\n
During the year
\n
Closing balance
\n
Plan
\n
Perfor-
\n
mance
\n
period
\n
Vesting
\n
start date
\n
Vesting
\n
end date
\n
Perfor-
\n
mance
\n
shares on 1
\n
January
\n
2022
\n
(1)
\n
Perfor-
\n
mance
\n
shares
\n
awarded
\n
Perfor-
\n
mance
\n
shares
\n
vested
\n
Shares
\n
vested
\n
Share
\n
awarded
\n
and un-
\n
vested
\n
Unexer-
\n
cised share
\n
Paolo Merloni
\n
Executive
\n
Chairman
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
176,268
\n
0,000
\n
176,268
\n
176,268
\n
0
\n
176,268
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
104,948
\n
(2)
\n
0
\n
0
\n
104,948
\n
0
\n
Laurent
\n
Jacquemin
\n
Chief Execu-
\n
tive Officer
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
105,761
\n
0
\n
105,761
\n
105,761
\n
0
\n
105,761
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
94,453
\n
(2)
\n
0
\n
0
\n
94,453
\n
0
\n
(1)
\n
Unvested share units.
\n
(2)
\n
The number of PSUs to be granted to the executive directors is determined dividing the individual grant (as resolved by the Board of Direc-
\n
tors on 2 March 2022 on the proposal of the compensation and talent development committee and approved by general meeting of 28
\n
April 2022) by the average closing price of the Company\u2019s shares on the 30 days before the grant. Specifically, for 2022 the average closing
\n
price on 30 days before the grant was \u20ac 9,5285.
\n
\n
Dividends paid
\n
The table below shows the dividends approved and paid during the year and in the previous years:
\n
DIVIDENDS to the parents
\n
(in thousand \u20ac)
\n
2022
\n
2021
\n
2020
\n
Dividends paid during the period
\n
46,366
\n
48,268
\n
128,621(*)
\n
(*) including \u20ac 28.4 million in regular dividends authorised upon the approval of the 2019 financial statements and \u20ac 100.2 million in special dividends.
\n
As at the reporting date, there were no dividends approved by the Annual General Meeting yet to be paid.
\n
\n \n
\n \n
\n
Note 3.1.1 \u2013 Stock-based incentive plans payments
\n
2022 remuneration of the Executive Directors
\n
The remuneration of the executive directors is in accordance with the remuneration policy. There are no loans, advances
\n
or guarantees provided by the Company or any undertaking belonging to the same group of the Company to or on behalf
\n
of an executive director.
\n
The following table summarise the remuneration received by the executive directors for the years ended 31 December
\n
2022 and 2021:
\n
Director, Position, Year
\n
Fixed remuneration
\n
Variable remuneration
\n
Extraordinary
\n
items
\n
Pension
\n
expense
\n
Total
\n
remuneration
\n
Proportion of
\n
fixed and
\n
variable
\n
remuneration
\n
Base
\n
salary
\n
Fees
\n
Benefits and
\n
Perquisites
\n
Short-term
\n
incentive
\n
Long-term
\n
incentive*
\n
Paolo Merloni
\n
2022
\n
1,000
\n
80
\n
38
\n
666
\n
1,696
\n
(1)
\n
-
\n
43
\n
3,523
\n
33% Fixed
\n
67% Variable
\n
Executive
\n
Chairman
\n
2021
\n
900
\n
70
\n
33
\n
720
\n
1,114
\n
(2)
\n
-
\n
42
\n
2,879
\n
36% Fixed
\n
64% Variable
\n
Laurent
\n
Jacquemin
\n
2022
\n
900
\n
50
\n
79
\n
555
\n
1,017
\n
(3)
\n
-
\n
-
\n
2,601
\n
40% Fixed
\n
60% Variable
\n
Chief Executive
\n
Officer
\n
2021
\n
750
\n
48
\n
82
\n
480
\n
668
\n
(4)
\n
100
\n
(5)
\n
-
\n
2,128
\n
41% Fixed
\n
59% Variable
\n
Note
\n
:
\n
\u2022
\n
Base salary represents for the executive chairman the base salary and the executive director fee. The compensation and talent development
\n
committee on 17 February 2022
\n
unanimously resolved, based on the results of the benchmarking carried out on the executive directors\u2019 com-
\n
pensation, to align the base salary to the market
\n
and to rebalance the pay mix. Therefore, the following proposal for the executive directors\u2019
\n
compensation for 2022 was approved to be presented to the Board: executive chairman base salary at \u20ac 1million with a short-term incentive of
\n
\u20ac 600k and CEO base salary at \u20ac 900k and short-term incentive at \u20ac 500k. The Board of Directors of 2 March 2022 unanimously approved the
\n
proposal.
\n
\u2022
\n
Fees represents the Board fee and the committee membership fees.
\n
\u2022
\n
The short-term incentive represents the pay-out for the year of performance
\n
The long-term incentive value is calculated as follows: (i) for 2022, the LTI is valued referring to the share price of 30 December 2022 at close of
\n
trade (\u20ac 9.62) (and it refers to the vesting of the 2019 converted LTI phantom stock option plan) and (ii) for 2021, LTI is valued referring to the
\n
share price of 30 December 2021 at close of trade (\u20ac 10.14) (and it refers to the vesting of the 2018 converted LTI phantom stock option plan).
\n
(1)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,807 thousand
\n
(2)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,125 thousand
\n
(3)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,084 thousand
\n
(4)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 678 thousand
\n
(5)
\n
Extraordinary item refers to a special award, approved by the Board on 2 March 2022 at the recommendation of the compensation and talent
\n
development committee, in accordance with their authority to temporarily deviate from the remuneration policy in case of exceptional circum-
\n
stances. The Company proposed this award to recognise the extraordinary contribution and involvement of the CEO in the very peculiar circum-
\n
stances of the preparation of a listing, successfully leading the Company through the challenges of an IPO.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Long-term incentive
\n
Until Admission, the executive directors participated in the long-term incentive plan providing for phantom stock. Upon
\n
Admission this plan was terminated and the outstanding phantom stock options were converted (a) at the option of the
\n
beneficiaries, into ordinary shares at the offer price of the Company's initial public offering or cash (in relation to vested
\n
phantom stock options) and (b) into restricted share units (in relation to unvested phantom stock options), with a vesting
\n
period of three years from the date of the original grant (phantom stock options granted in 2019 vest in 2022, phantom
\n
stock options granted in 2020 vest in 2023). In addition, a new long-term incentive plan has been approved by the general
\n
meeting providing for awards in the form of performance share units for the 2021 LTI.
\n
The executive directors have chosen to convert the vested phantom stock options entirely into ordinary shares.
\n
The table below provides an overview of the conversion result of the phantom stock options granted in 2016, 2017 and
\n
2018 that vested before Admission. Settlement of the conversion of these phantom stock options took place in the first
\n
half of 2022.
\n
Executive director
\n
Number of ordinary shares
\n
Paolo Merloni
\n
483,584
\n
Laurent Jacquemin
\n
347,817
\n
The table below provides an overview of the conversion result for the phantom stock options granted in 2019 and 2020
\n
that were unvested at Admission and converted into restricted share units at the offer price of the Company's initial
\n
public offering and the 2021 and 2022 grant of performance share units.
\n
Director,
\n
position
\n
Main conditions of performance share plans
\n
Information regarding 2022
\n
Opening
\n
balance
\n
During the year
\n
Closing balance
\n
Plan
\n
Perfor-
\n
mance
\n
period
\n
Vesting
\n
start date
\n
Vesting
\n
end date
\n
Perfor-
\n
mance
\n
shares on 1
\n
January
\n
2022
\n
(1)
\n
Perfor-
\n
mance
\n
shares
\n
awarded
\n
Perfor-
\n
mance
\n
shares
\n
vested
\n
Shares
\n
vested
\n
Share
\n
awarded
\n
and un-
\n
vested
\n
Unexer-
\n
cised share
\n
Paolo Merloni
\n
Executive
\n
Chairman
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
176,268
\n
0,000
\n
176,268
\n
176,268
\n
0
\n
176,268
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
104,948
\n
(2)
\n
0
\n
0
\n
104,948
\n
0
\n
Laurent
\n
Jacquemin
\n
Chief Execu-
\n
tive Officer
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
105,761
\n
0
\n
105,761
\n
105,761
\n
0
\n
105,761
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
94,453
\n
(2)
\n
0
\n
0
\n
94,453
\n
0
\n
(1)
\n
Unvested share units.
\n
(2)
\n
The number of PSUs to be granted to the executive directors is determined dividing the individual grant (as resolved by the Board of Direc-
\n
tors on 2 March 2022 on the proposal of the compensation and talent development committee and approved by general meeting of 28
\n
April 2022) by the average closing price of the Company\u2019s shares on the 30 days before the grant. Specifically, for 2022 the average closing
\n
price on 30 days before the grant was \u20ac 9,5285.
\n
\n \n
\n \n
Change of remuneration of executive directors and Company performance
\n
The requirement in the Dutch Civil Code is to disclose this information over five financial years. However, as the Company
\n
was incorporated in its current structure in November 2021, meaningful total remuneration information is only available
\n
and relevant from 2021 onwards.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
The following table shows a comparison of the fixed remuneration of the executive directors over the last five years who
\n
served as executive director in 2022.
\n
Annual change
\n
2018
\n
2019
\n
2020
\n
2021
\n
2022
\n
Executive director's fixed remuneration
\n
(in \u20ac thousand)
\n
Paolo Merloni
\n
Executive Chairman
\n
992
\n
1,005
\n
995
\n
1,003
\n
1,118
\n
Laurent Jacquemin
\n
Chief Executive Officer
\n
710
\n
718
\n
782
\n
880
\n
1,029
\n
Executive director's total remuneration
\n
(in \u20ac thousand)
\n
Paolo Merloni
\n
Executive Chairman
\n
N.A.
\n
N.A.
\n
N.A.
\n
2,879
\n
3,523
\n
Laurent Jacquemin
\n
Chief Executive Officer
\n
N.A.
\n
N.A.
\n
N.A.
\n
2,128
\n
2,601
\n
Company performance
\n
(in \u20ac million)
\n
EBIT
\n
127
\n
134
\n
149
\n
171
\n
194
\n
EBITDA
\n
195
\n
209
\n
227
\n
247
\n
283
\n
EBIT Adjusted
\n
134
\n
149
\n
164
\n
203
\n
223
\n
EBITDA Adjusted
\n
202
\n
223
\n
239
\n
277
\n
305
\n
Average remuneration on a full-time equivalent basis of employees
\n
(i)
\n
Employees of the Group
\n
N.A.
\n
N.A
\n
N.A
\n
54
\n
59
\n
Internal pay ratio Chief Executive Officer
\n
(i)
\n
Chief Executive Officer vs
\n
employees of the Group
\n
N.A
\n
N.A
\n
N.A
\n
40
\n
44
\n
(i) The population composition changes among the years in terms of FTE, mix and countries.
\n
Internal pay ratio Chief Executive Officer based on fixed remuneration
\n
In accordance with Dutch law and the Dutch corporate governance code, the internal pay ratio is an important factor for
\n
determining the remuneration policy. On 20 December 2022 the DCGC published an updated version that will come into
\n
force as of 1 January 2023. As this version includes a methodology for calculating the pay ratio, Ariston has elected to
\n
follow this methodology from 2022.
\n
The 2022 pay ratio of the Chief Executive Officer versus the employees of the Group
\n
is.
\n
2022 remuneration of the Non-Executive Directors
\n
The remuneration of the non-executive directors is in accordance with the remuneration policy. There are no loans,
\n
advances or guarantees provided by the Company or any undertaking belonging to the same group of the Company to
\n
the non-executive directors.
\n
The following table summarize the remuneration received by the non-executive directors for the years ended 31 Decem-
\n
ber 2022 and 2021.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Non-executive director
\n
(in \u20ac thousand)
\n
Fixed remuneration
\n
2022
\n
Supplementary committee
\n
remuneration 2022
\n
Total remunera-
\n
tion 2022
\n
Total remunera-
\n
tion 2021
\n
Francesco Merloni
\n
50
\n
0
\n
50
\n
48
\n
Marinella Soldi
\n
50
\n
20
\n
70
\n
67
\n
Sabrina Baggioni
\n
42
\n
17
\n
58
\n
(1)
\n
40
\n
Roberto Guidetti
\n
50
\n
40
\n
90
\n
71
\n
Maria Francesca Merloni
\n
50
\n
0
\n
50
\n
48
\n
Lorenzo Pozza
\n
50
\n
20
\n
70
\n
38
\n
(2)
\n
Ignazio Rocco di
\n
Torrepadula
\n
50
\n
10
\n
60
\n
38
\n
(2)
\n
Andrea Silvestri
\n
50
\n
10
\n
60
\n
33
\n
(2)
\n
Paolo Tanoni
\n
50
\n
0
\n
50
\n
50
\n
Enrico Vita
\n
50
\n
10
\n
60
\n
52
\n
(1)
\n
Until 3 November 2022 (resignation).
\n
(2)
\n
As from 15 June 2021.
\n
The following table shows a comparison of the fixed remuneration of non-executive directors over the last five years who
\n
served as non-executive directors in 2022:
\n
Non-executive director
\n
(in \u20ac thousand)
\n
2018
\n
2019
\n
2020
\n
2021
\n
2022
\n
Francesco Merloni
\n
50
\n
50
\n
50
\n
48
\n
50
\n
Marinella Soldi
\n
77
\n
74
\n
74
\n
67
\n
70
\n
Sabrina Baggioni
\n
0
\n
0
\n
0
\n
40
\n
58
\n
(1)
\n
Roberto Guidetti
\n
62
\n
59
\n
59
\n
71
\n
90
\n
Maria Francesca Merloni
\n
50
\n
50
\n
50
\n
48
\n
50
\n
Lorenzo Pozza
\n
0
\n
0
\n
0
\n
38
\n
(2)
\n
70
\n
Ignazio Rocco di
\n
Torrepadula
\n
0
\n
0
\n
0
\n
38
\n
(2)
\n
60
\n
Andrea Silvestri
\n
0
\n
0
\n
0
\n
33
\n
(2)
\n
60
\n
Paolo Tanoni
\n
50
\n
50
\n
50
\n
50
\n
50
\n
Enrico Vita
\n
44,3
\n
56
\n
53
\n
52
\n
60
\n
(1) until 3 November 2022 (resignation).
\n
\n \n
\n \n
\n \n
\n
RELATED PARTY DISCLOSURES
\n
At 31 December 2022 Ariston Holding N.V., controlled by Merloni Holding S.p.A., and its Italian subsidiaries, adopted the
\n
national tax consolidation scheme. At 31 December 2022, the income tax receivables and payables of the individual Italian
\n
companies were recorded from or to, respectively, Merloni Holding S.p.A. At 31 December 2022, the Company and its
\n
Italian subsidiaries had a payable position from Merloni Holding S.p.A. for \u20ac 6.6 million. All tax receivables and payables
\n
are non-interest-bearing.
\n
All transactions with related parties were carried out in the Group\u2019s interest.
\n
Based on the transactions carried out by Ariston Group during 2022, related parties are mainly represented by:
\n
\u2022
\n
companies directly and/or indirectly related to the majority shareholder of Ariston Holding N.V.;
\n
\u2022
\n
Directors and/or companies related to the same.
\n
The following table shows the figures of the main transactions with related parties:
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Receivables
\n
Payables
\n
Revenue
\n
Costs
\n
Receivables
\n
Payables
\n
Revenue
\n
Costs
\n
Fondazione A. Merloni
\n
0.0
\n
0.0
\n
0.0
\n
0.5
\n
0.0
\n
0.0
\n
0.0
\n
0.5
\n
Janus Immobili per l'industria
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
0.5
\n
Merloni Holding S.p.A.
\n
7.2
\n
13.8
\n
0.1
\n
0.1
\n
13.8
\n
10.5
\n
0.0
\n
0.0
\n
Novapower S.r.l.
\n
0.0
\n
0.3
\n
0.0
\n
0.3
\n
0.0
\n
0.4
\n
0.0
\n
0.3
\n
Novacapital S.r.l.
\n
0.1
\n
0.2
\n
0.1
\n
0.2
\n
0.0
\n
0.2
\n
0.0
\n
0.2
\n
Nova Re S.r.l.
\n
0.0
\n
0.3
\n
0.0
\n
0.2
\n
1.6
\n
0.0
\n
1.2
\n
0.0
\n
Total
\n
7.3
\n
14.6
\n
0.2
\n
1.3
\n
15.4
\n
11.1
\n
1.2
\n
1.5
\n
As regards transactions with related parties, it should be noted that they are not to be qualified as atypical or unusual
\n
but should be included in the normal course of operations carried out by Group companies. These transactions are reg-
\n
ulated by market conditions and based on the characteristics of the services provided.
\n
The main transactions with related parties concern Nova Re S.r.l., consisting of recharge of costs related to the structural
\n
investments made at Follina plant.
\n
In addition, members of the Ariston Board of Directors and executives with strategic responsibilities and their families
\n
are also considered related parties.
\n \n
\n
REMUNERATION PAID TO THE PARENT COMPANY\u2019S BOARD OF DIRECTORS
\n
Fees attributable to the year and represented by remuneration to Directors of the Parent Company, at 31 December
\n
2022, are summarised as follow:
\n
Office
\n
(in \u20ac million)
\n
Year
\n
Fixed remuneration
\n
Variable remuneration
\n
Base salary
\n
Fees
\n
Short-term incentive
\n
Directors
\n
2022
\n
1.9
\n
0.7
\n
1.1
\n
Total
\n
1.9
\n
0.7
\n
1.1
\n
Notes:
\n
-
\n
Fixed remuneration does not include Benefits and Perks
\n
-
\n
Variable remuneration does not include the Long-term incentive
\n
-
\n
Base Salary includes: i. for the Executive Chairman, the employee gross salary as well as the Executive Director fee; ii. For the Chief Executive Officer
\n
the Executive Director fee.
\n
-
\n
Fees include the Non-Executive Directors fees as well as the committee remuneration
\n
-
\n
Short-term incentive includes: the pay-out for the year of performance
\n
Both the remuneration of the Executive and the Non-Executive Directors have been included in the \u2018Note 3.1.1 \u2013 Stock-
\n
based incentive plans payments\u2019.
\n
\n \n
\n \n
\n \n
\n
Note 3.1.1 \u2013 Stock-based incentive plans payments
\n
2022 remuneration of the Executive Directors
\n
The remuneration of the executive directors is in accordance with the remuneration policy. There are no loans, advances
\n
or guarantees provided by the Company or any undertaking belonging to the same group of the Company to or on behalf
\n
of an executive director.
\n
The following table summarise the remuneration received by the executive directors for the years ended 31 December
\n
2022 and 2021:
\n
Director, Position, Year
\n
Fixed remuneration
\n
Variable remuneration
\n
Extraordinary
\n
items
\n
Pension
\n
expense
\n
Total
\n
remuneration
\n
Proportion of
\n
fixed and
\n
variable
\n
remuneration
\n
Base
\n
salary
\n
Fees
\n
Benefits and
\n
Perquisites
\n
Short-term
\n
incentive
\n
Long-term
\n
incentive*
\n
Paolo Merloni
\n
2022
\n
1,000
\n
80
\n
38
\n
666
\n
1,696
\n
(1)
\n
-
\n
43
\n
3,523
\n
33% Fixed
\n
67% Variable
\n
Executive
\n
Chairman
\n
2021
\n
900
\n
70
\n
33
\n
720
\n
1,114
\n
(2)
\n
-
\n
42
\n
2,879
\n
36% Fixed
\n
64% Variable
\n
Laurent
\n
Jacquemin
\n
2022
\n
900
\n
50
\n
79
\n
555
\n
1,017
\n
(3)
\n
-
\n
-
\n
2,601
\n
40% Fixed
\n
60% Variable
\n
Chief Executive
\n
Officer
\n
2021
\n
750
\n
48
\n
82
\n
480
\n
668
\n
(4)
\n
100
\n
(5)
\n
-
\n
2,128
\n
41% Fixed
\n
59% Variable
\n
Note
\n
:
\n
\u2022
\n
Base salary represents for the executive chairman the base salary and the executive director fee. The compensation and talent development
\n
committee on 17 February 2022
\n
unanimously resolved, based on the results of the benchmarking carried out on the executive directors\u2019 com-
\n
pensation, to align the base salary to the market
\n
and to rebalance the pay mix. Therefore, the following proposal for the executive directors\u2019
\n
compensation for 2022 was approved to be presented to the Board: executive chairman base salary at \u20ac 1million with a short-term incentive of
\n
\u20ac 600k and CEO base salary at \u20ac 900k and short-term incentive at \u20ac 500k. The Board of Directors of 2 March 2022 unanimously approved the
\n
proposal.
\n
\u2022
\n
Fees represents the Board fee and the committee membership fees.
\n
\u2022
\n
The short-term incentive represents the pay-out for the year of performance
\n
The long-term incentive value is calculated as follows: (i) for 2022, the LTI is valued referring to the share price of 30 December 2022 at close of
\n
trade (\u20ac 9.62) (and it refers to the vesting of the 2019 converted LTI phantom stock option plan) and (ii) for 2021, LTI is valued referring to the
\n
share price of 30 December 2021 at close of trade (\u20ac 10.14) (and it refers to the vesting of the 2018 converted LTI phantom stock option plan).
\n
(1)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,807 thousand
\n
(2)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,125 thousand
\n
(3)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,084 thousand
\n
(4)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 678 thousand
\n
(5)
\n
Extraordinary item refers to a special award, approved by the Board on 2 March 2022 at the recommendation of the compensation and talent
\n
development committee, in accordance with their authority to temporarily deviate from the remuneration policy in case of exceptional circum-
\n
stances. The Company proposed this award to recognise the extraordinary contribution and involvement of the CEO in the very peculiar circum-
\n
stances of the preparation of a listing, successfully leading the Company through the challenges of an IPO.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Long-term incentive
\n
Until Admission, the executive directors participated in the long-term incentive plan providing for phantom stock. Upon
\n
Admission this plan was terminated and the outstanding phantom stock options were converted (a) at the option of the
\n
beneficiaries, into ordinary shares at the offer price of the Company's initial public offering or cash (in relation to vested
\n
phantom stock options) and (b) into restricted share units (in relation to unvested phantom stock options), with a vesting
\n
period of three years from the date of the original grant (phantom stock options granted in 2019 vest in 2022, phantom
\n
stock options granted in 2020 vest in 2023). In addition, a new long-term incentive plan has been approved by the general
\n
meeting providing for awards in the form of performance share units for the 2021 LTI.
\n
The executive directors have chosen to convert the vested phantom stock options entirely into ordinary shares.
\n
The table below provides an overview of the conversion result of the phantom stock options granted in 2016, 2017 and
\n
2018 that vested before Admission. Settlement of the conversion of these phantom stock options took place in the first
\n
half of 2022.
\n
Executive director
\n
Number of ordinary shares
\n
Paolo Merloni
\n
483,584
\n
Laurent Jacquemin
\n
347,817
\n
The table below provides an overview of the conversion result for the phantom stock options granted in 2019 and 2020
\n
that were unvested at Admission and converted into restricted share units at the offer price of the Company's initial
\n
public offering and the 2021 and 2022 grant of performance share units.
\n
Director,
\n
position
\n
Main conditions of performance share plans
\n
Information regarding 2022
\n
Opening
\n
balance
\n
During the year
\n
Closing balance
\n
Plan
\n
Perfor-
\n
mance
\n
period
\n
Vesting
\n
start date
\n
Vesting
\n
end date
\n
Perfor-
\n
mance
\n
shares on 1
\n
January
\n
2022
\n
(1)
\n
Perfor-
\n
mance
\n
shares
\n
awarded
\n
Perfor-
\n
mance
\n
shares
\n
vested
\n
Shares
\n
vested
\n
Share
\n
awarded
\n
and un-
\n
vested
\n
Unexer-
\n
cised share
\n
Paolo Merloni
\n
Executive
\n
Chairman
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
176,268
\n
0,000
\n
176,268
\n
176,268
\n
0
\n
176,268
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
104,948
\n
(2)
\n
0
\n
0
\n
104,948
\n
0
\n
Laurent
\n
Jacquemin
\n
Chief Execu-
\n
tive Officer
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
105,761
\n
0
\n
105,761
\n
105,761
\n
0
\n
105,761
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
94,453
\n
(2)
\n
0
\n
0
\n
94,453
\n
0
\n
(1)
\n
Unvested share units.
\n
(2)
\n
The number of PSUs to be granted to the executive directors is determined dividing the individual grant (as resolved by the Board of Direc-
\n
tors on 2 March 2022 on the proposal of the compensation and talent development committee and approved by general meeting of 28
\n
April 2022) by the average closing price of the Company\u2019s shares on the 30 days before the grant. Specifically, for 2022 the average closing
\n
price on 30 days before the grant was \u20ac 9,5285.
\n
\n \n
\n \n
Change of remuneration of executive directors and Company performance
\n
The requirement in the Dutch Civil Code is to disclose this information over five financial years. However, as the Company
\n
was incorporated in its current structure in November 2021, meaningful total remuneration information is only available
\n
and relevant from 2021 onwards.
\n
\n \n
\n \n
\n \n
\n \n
\n
The following table shows a comparison of the fixed remuneration of the executive directors over the last five years who
\n
served as executive director in 2022.
\n
Annual change
\n
2018
\n
2019
\n
2020
\n
2021
\n
2022
\n
Executive director's fixed remuneration
\n
(in \u20ac thousand)
\n
Paolo Merloni
\n
Executive Chairman
\n
992
\n
1,005
\n
995
\n
1,003
\n
1,118
\n
Laurent Jacquemin
\n
Chief Executive Officer
\n
710
\n
718
\n
782
\n
880
\n
1,029
\n
Executive director's total remuneration
\n
(in \u20ac thousand)
\n
Paolo Merloni
\n
Executive Chairman
\n
N.A.
\n
N.A.
\n
N.A.
\n
2,879
\n
3,523
\n
Laurent Jacquemin
\n
Chief Executive Officer
\n
N.A.
\n
N.A.
\n
N.A.
\n
2,128
\n
2,601
\n
Company performance
\n
(in \u20ac million)
\n
EBIT
\n
127
\n
134
\n
149
\n
171
\n
194
\n
EBITDA
\n
195
\n
209
\n
227
\n
247
\n
283
\n
EBIT Adjusted
\n
134
\n
149
\n
164
\n
203
\n
223
\n
EBITDA Adjusted
\n
202
\n
223
\n
239
\n
277
\n
305
\n
Average remuneration on a full-time equivalent basis of employees
\n
(i)
\n
Employees of the Group
\n
N.A.
\n
N.A
\n
N.A
\n
54
\n
59
\n
Internal pay ratio Chief Executive Officer
\n
(i)
\n
Chief Executive Officer vs
\n
employees of the Group
\n
N.A
\n
N.A
\n
N.A
\n
40
\n
44
\n
(i) The population composition changes among the years in terms of FTE, mix and countries.
\n
Internal pay ratio Chief Executive Officer based on fixed remuneration
\n
In accordance with Dutch law and the Dutch corporate governance code, the internal pay ratio is an important factor for
\n
determining the remuneration policy. On 20 December 2022 the DCGC published an updated version that will come into
\n
force as of 1 January 2023. As this version includes a methodology for calculating the pay ratio, Ariston has elected to
\n
follow this methodology from 2022.
\n
The 2022 pay ratio of the Chief Executive Officer versus the employees of the Group
\n
is.
\n
2022 remuneration of the Non-Executive Directors
\n
The remuneration of the non-executive directors is in accordance with the remuneration policy. There are no loans,
\n
advances or guarantees provided by the Company or any undertaking belonging to the same group of the Company to
\n
the non-executive directors.
\n
The following table summarize the remuneration received by the non-executive directors for the years ended 31 Decem-
\n
ber 2022 and 2021.
\n
\n \n
\n \n
\n \n
\n
Non-executive director
\n
(in \u20ac thousand)
\n
Fixed remuneration
\n
2022
\n
Supplementary committee
\n
remuneration 2022
\n
Total remunera-
\n
tion 2022
\n
Total remunera-
\n
tion 2021
\n
Francesco Merloni
\n
50
\n
0
\n
50
\n
48
\n
Marinella Soldi
\n
50
\n
20
\n
70
\n
67
\n
Sabrina Baggioni
\n
42
\n
17
\n
58
\n
(1)
\n
40
\n
Roberto Guidetti
\n
50
\n
40
\n
90
\n
71
\n
Maria Francesca Merloni
\n
50
\n
0
\n
50
\n
48
\n
Lorenzo Pozza
\n
50
\n
20
\n
70
\n
38
\n
(2)
\n
Ignazio Rocco di
\n
Torrepadula
\n
50
\n
10
\n
60
\n
38
\n
(2)
\n
Andrea Silvestri
\n
50
\n
10
\n
60
\n
33
\n
(2)
\n
Paolo Tanoni
\n
50
\n
0
\n
50
\n
50
\n
Enrico Vita
\n
50
\n
10
\n
60
\n
52
\n
(1)
\n
Until 3 November 2022 (resignation).
\n
(2)
\n
As from 15 June 2021.
\n
The following table shows a comparison of the fixed remuneration of non-executive directors over the last five years who
\n
served as non-executive directors in 2022:
\n
Non-executive director
\n
(in \u20ac thousand)
\n
2018
\n
2019
\n
2020
\n
2021
\n
2022
\n
Francesco Merloni
\n
50
\n
50
\n
50
\n
48
\n
50
\n
Marinella Soldi
\n
77
\n
74
\n
74
\n
67
\n
70
\n
Sabrina Baggioni
\n
0
\n
0
\n
0
\n
40
\n
58
\n
(1)
\n
Roberto Guidetti
\n
62
\n
59
\n
59
\n
71
\n
90
\n
Maria Francesca Merloni
\n
50
\n
50
\n
50
\n
48
\n
50
\n
Lorenzo Pozza
\n
0
\n
0
\n
0
\n
38
\n
(2)
\n
70
\n
Ignazio Rocco di
\n
Torrepadula
\n
0
\n
0
\n
0
\n
38
\n
(2)
\n
60
\n
Andrea Silvestri
\n
0
\n
0
\n
0
\n
33
\n
(2)
\n
60
\n
Paolo Tanoni
\n
50
\n
50
\n
50
\n
50
\n
50
\n
Enrico Vita
\n
44,3
\n
56
\n
53
\n
52
\n
60
\n
(1) until 3 November 2022 (resignation).
\n
\n \n
\n
REMUNERATION PAID TO THE PARENT COMPANY\u2019S BOARD OF DIRECTORS
\n
Fees attributable to the year and represented by remuneration to Directors of the Parent Company, at 31 December
\n
2022, are summarised as follow:
\n
Office
\n
(in \u20ac million)
\n
Year
\n
Fixed remuneration
\n
Variable remuneration
\n
Base salary
\n
Fees
\n
Short-term incentive
\n
Directors
\n
2022
\n
1.9
\n
0.7
\n
1.1
\n
Total
\n
1.9
\n
0.7
\n
1.1
\n
Notes:
\n
-
\n
Fixed remuneration does not include Benefits and Perks
\n
-
\n
Variable remuneration does not include the Long-term incentive
\n
-
\n
Base Salary includes: i. for the Executive Chairman, the employee gross salary as well as the Executive Director fee; ii. For the Chief Executive Officer
\n
the Executive Director fee.
\n
-
\n
Fees include the Non-Executive Directors fees as well as the committee remuneration
\n
-
\n
Short-term incentive includes: the pay-out for the year of performance
\n
Both the remuneration of the Executive and the Non-Executive Directors have been included in the \u2018Note 3.1.1 \u2013 Stock-
\n
based incentive plans payments\u2019.
\n
\n
Note 3.1.1 \u2013 Stock-based incentive plans payments
\n
2022 remuneration of the Executive Directors
\n
The remuneration of the executive directors is in accordance with the remuneration policy. There are no loans, advances
\n
or guarantees provided by the Company or any undertaking belonging to the same group of the Company to or on behalf
\n
of an executive director.
\n
The following table summarise the remuneration received by the executive directors for the years ended 31 December
\n
2022 and 2021:
\n
Director, Position, Year
\n
Fixed remuneration
\n
Variable remuneration
\n
Extraordinary
\n
items
\n
Pension
\n
expense
\n
Total
\n
remuneration
\n
Proportion of
\n
fixed and
\n
variable
\n
remuneration
\n
Base
\n
salary
\n
Fees
\n
Benefits and
\n
Perquisites
\n
Short-term
\n
incentive
\n
Long-term
\n
incentive*
\n
Paolo Merloni
\n
2022
\n
1,000
\n
80
\n
38
\n
666
\n
1,696
\n
(1)
\n
-
\n
43
\n
3,523
\n
33% Fixed
\n
67% Variable
\n
Executive
\n
Chairman
\n
2021
\n
900
\n
70
\n
33
\n
720
\n
1,114
\n
(2)
\n
-
\n
42
\n
2,879
\n
36% Fixed
\n
64% Variable
\n
Laurent
\n
Jacquemin
\n
2022
\n
900
\n
50
\n
79
\n
555
\n
1,017
\n
(3)
\n
-
\n
-
\n
2,601
\n
40% Fixed
\n
60% Variable
\n
Chief Executive
\n
Officer
\n
2021
\n
750
\n
48
\n
82
\n
480
\n
668
\n
(4)
\n
100
\n
(5)
\n
-
\n
2,128
\n
41% Fixed
\n
59% Variable
\n
Note
\n
:
\n
\u2022
\n
Base salary represents for the executive chairman the base salary and the executive director fee. The compensation and talent development
\n
committee on 17 February 2022
\n
unanimously resolved, based on the results of the benchmarking carried out on the executive directors\u2019 com-
\n
pensation, to align the base salary to the market
\n
and to rebalance the pay mix. Therefore, the following proposal for the executive directors\u2019
\n
compensation for 2022 was approved to be presented to the Board: executive chairman base salary at \u20ac 1million with a short-term incentive of
\n
\u20ac 600k and CEO base salary at \u20ac 900k and short-term incentive at \u20ac 500k. The Board of Directors of 2 March 2022 unanimously approved the
\n
proposal.
\n
\u2022
\n
Fees represents the Board fee and the committee membership fees.
\n
\u2022
\n
The short-term incentive represents the pay-out for the year of performance
\n
The long-term incentive value is calculated as follows: (i) for 2022, the LTI is valued referring to the share price of 30 December 2022 at close of
\n
trade (\u20ac 9.62) (and it refers to the vesting of the 2019 converted LTI phantom stock option plan) and (ii) for 2021, LTI is valued referring to the
\n
share price of 30 December 2021 at close of trade (\u20ac 10.14) (and it refers to the vesting of the 2018 converted LTI phantom stock option plan).
\n
(1)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,807 thousand
\n
(2)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,125 thousand
\n
(3)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 1,084 thousand
\n
(4)
\n
LTI accrued value based on IFRS2 expenses is \u20ac 678 thousand
\n
(5)
\n
Extraordinary item refers to a special award, approved by the Board on 2 March 2022 at the recommendation of the compensation and talent
\n
development committee, in accordance with their authority to temporarily deviate from the remuneration policy in case of exceptional circum-
\n
stances. The Company proposed this award to recognise the extraordinary contribution and involvement of the CEO in the very peculiar circum-
\n
stances of the preparation of a listing, successfully leading the Company through the challenges of an IPO.
\n
\n \n
\n \n
\n \n
\n
Long-term incentive
\n
Until Admission, the executive directors participated in the long-term incentive plan providing for phantom stock. Upon
\n
Admission this plan was terminated and the outstanding phantom stock options were converted (a) at the option of the
\n
beneficiaries, into ordinary shares at the offer price of the Company's initial public offering or cash (in relation to vested
\n
phantom stock options) and (b) into restricted share units (in relation to unvested phantom stock options), with a vesting
\n
period of three years from the date of the original grant (phantom stock options granted in 2019 vest in 2022, phantom
\n
stock options granted in 2020 vest in 2023). In addition, a new long-term incentive plan has been approved by the general
\n
meeting providing for awards in the form of performance share units for the 2021 LTI.
\n
The executive directors have chosen to convert the vested phantom stock options entirely into ordinary shares.
\n
The table below provides an overview of the conversion result of the phantom stock options granted in 2016, 2017 and
\n
2018 that vested before Admission. Settlement of the conversion of these phantom stock options took place in the first
\n
half of 2022.
\n
Executive director
\n
Number of ordinary shares
\n
Paolo Merloni
\n
483,584
\n
Laurent Jacquemin
\n
347,817
\n
The table below provides an overview of the conversion result for the phantom stock options granted in 2019 and 2020
\n
that were unvested at Admission and converted into restricted share units at the offer price of the Company's initial
\n
public offering and the 2021 and 2022 grant of performance share units.
\n
Director,
\n
position
\n
Main conditions of performance share plans
\n
Information regarding 2022
\n
Opening
\n
balance
\n
During the year
\n
Closing balance
\n
Plan
\n
Perfor-
\n
mance
\n
period
\n
Vesting
\n
start date
\n
Vesting
\n
end date
\n
Perfor-
\n
mance
\n
shares on 1
\n
January
\n
2022
\n
(1)
\n
Perfor-
\n
mance
\n
shares
\n
awarded
\n
Perfor-
\n
mance
\n
shares
\n
vested
\n
Shares
\n
vested
\n
Share
\n
awarded
\n
and un-
\n
vested
\n
Unexer-
\n
cised share
\n
Paolo Merloni
\n
Executive
\n
Chairman
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
176,268
\n
0,000
\n
176,268
\n
176,268
\n
0
\n
176,268
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
104,948
\n
(2)
\n
0
\n
0
\n
104,948
\n
0
\n
Laurent
\n
Jacquemin
\n
Chief Execu-
\n
tive Officer
\n
2019
\n
2019-2021
\n
31.03.2019
\n
31.03.2022
\n
105,761
\n
0
\n
105,761
\n
105,761
\n
0
\n
105,761
\n
2020
\n
2020-2022
\n
31.03.2020
\n
31.03.2023
\n
156,737
\n
0
\n
0
\n
156,737
\n
0
\n
2021
\n
2021-2023
\n
31.03.2021
\n
31.03.2024
\n
112,000
\n
0
\n
0
\n
112,000
\n
0
\n
2022
\n
2022-2024
\n
28.04.2022
\n
31.03.2025
\n
0
\n
94,453
\n
(2)
\n
0
\n
0
\n
94,453
\n
0
\n
(1)
\n
Unvested share units.
\n
(2)
\n
The number of PSUs to be granted to the executive directors is determined dividing the individual grant (as resolved by the Board of Direc-
\n
tors on 2 March 2022 on the proposal of the compensation and talent development committee and approved by general meeting of 28
\n
April 2022) by the average closing price of the Company\u2019s shares on the 30 days before the grant. Specifically, for 2022 the average closing
\n
price on 30 days before the grant was \u20ac 9,5285.
\n
\n \n
\n \n
Change of remuneration of executive directors and Company performance
\n
The requirement in the Dutch Civil Code is to disclose this information over five financial years. However, as the Company
\n
was incorporated in its current structure in November 2021, meaningful total remuneration information is only available
\n
and relevant from 2021 onwards.
\n
\n \n
\n \n
\n
The following table shows a comparison of the fixed remuneration of the executive directors over the last five years who
\n
served as executive director in 2022.
\n
Annual change
\n
2018
\n
2019
\n
2020
\n
2021
\n
2022
\n
Executive director's fixed remuneration
\n
(in \u20ac thousand)
\n
Paolo Merloni
\n
Executive Chairman
\n
992
\n
1,005
\n
995
\n
1,003
\n
1,118
\n
Laurent Jacquemin
\n
Chief Executive Officer
\n
710
\n
718
\n
782
\n
880
\n
1,029
\n
Executive director's total remuneration
\n
(in \u20ac thousand)
\n
Paolo Merloni
\n
Executive Chairman
\n
N.A.
\n
N.A.
\n
N.A.
\n
2,879
\n
3,523
\n
Laurent Jacquemin
\n
Chief Executive Officer
\n
N.A.
\n
N.A.
\n
N.A.
\n
2,128
\n
2,601
\n
Company performance
\n
(in \u20ac million)
\n
EBIT
\n
127
\n
134
\n
149
\n
171
\n
194
\n
EBITDA
\n
195
\n
209
\n
227
\n
247
\n
283
\n
EBIT Adjusted
\n
134
\n
149
\n
164
\n
203
\n
223
\n
EBITDA Adjusted
\n
202
\n
223
\n
239
\n
277
\n
305
\n
Average remuneration on a full-time equivalent basis of employees
\n
(i)
\n
Employees of the Group
\n
N.A.
\n
N.A
\n
N.A
\n
54
\n
59
\n
Internal pay ratio Chief Executive Officer
\n
(i)
\n
Chief Executive Officer vs
\n
employees of the Group
\n
N.A
\n
N.A
\n
N.A
\n
40
\n
44
\n
(i) The population composition changes among the years in terms of FTE, mix and countries.
\n
Internal pay ratio Chief Executive Officer based on fixed remuneration
\n
In accordance with Dutch law and the Dutch corporate governance code, the internal pay ratio is an important factor for
\n
determining the remuneration policy. On 20 December 2022 the DCGC published an updated version that will come into
\n
force as of 1 January 2023. As this version includes a methodology for calculating the pay ratio, Ariston has elected to
\n
follow this methodology from 2022.
\n
The 2022 pay ratio of the Chief Executive Officer versus the employees of the Group
\n
is.
\n
2022 remuneration of the Non-Executive Directors
\n
The remuneration of the non-executive directors is in accordance with the remuneration policy. There are no loans,
\n
advances or guarantees provided by the Company or any undertaking belonging to the same group of the Company to
\n
the non-executive directors.
\n
The following table summarize the remuneration received by the non-executive directors for the years ended 31 Decem-
\n
ber 2022 and 2021.
\n
\n \n
\n
Non-executive director
\n
(in \u20ac thousand)
\n
Fixed remuneration
\n
2022
\n
Supplementary committee
\n
remuneration 2022
\n
Total remunera-
\n
tion 2022
\n
Total remunera-
\n
tion 2021
\n
Francesco Merloni
\n
50
\n
0
\n
50
\n
48
\n
Marinella Soldi
\n
50
\n
20
\n
70
\n
67
\n
Sabrina Baggioni
\n
42
\n
17
\n
58
\n
(1)
\n
40
\n
Roberto Guidetti
\n
50
\n
40
\n
90
\n
71
\n
Maria Francesca Merloni
\n
50
\n
0
\n
50
\n
48
\n
Lorenzo Pozza
\n
50
\n
20
\n
70
\n
38
\n
(2)
\n
Ignazio Rocco di
\n
Torrepadula
\n
50
\n
10
\n
60
\n
38
\n
(2)
\n
Andrea Silvestri
\n
50
\n
10
\n
60
\n
33
\n
(2)
\n
Paolo Tanoni
\n
50
\n
0
\n
50
\n
50
\n
Enrico Vita
\n
50
\n
10
\n
60
\n
52
\n
(1)
\n
Until 3 November 2022 (resignation).
\n
(2)
\n
As from 15 June 2021.
\n
The following table shows a comparison of the fixed remuneration of non-executive directors over the last five years who
\n
served as non-executive directors in 2022:
\n
Non-executive director
\n
(in \u20ac thousand)
\n
2018
\n
2019
\n
2020
\n
2021
\n
2022
\n
Francesco Merloni
\n
50
\n
50
\n
50
\n
48
\n
50
\n
Marinella Soldi
\n
77
\n
74
\n
74
\n
67
\n
70
\n
Sabrina Baggioni
\n
0
\n
0
\n
0
\n
40
\n
58
\n
(1)
\n
Roberto Guidetti
\n
62
\n
59
\n
59
\n
71
\n
90
\n
Maria Francesca Merloni
\n
50
\n
50
\n
50
\n
48
\n
50
\n
Lorenzo Pozza
\n
0
\n
0
\n
0
\n
38
\n
(2)
\n
70
\n
Ignazio Rocco di
\n
Torrepadula
\n
0
\n
0
\n
0
\n
38
\n
(2)
\n
60
\n
Andrea Silvestri
\n
0
\n
0
\n
0
\n
33
\n
(2)
\n
60
\n
Paolo Tanoni
\n
50
\n
50
\n
50
\n
50
\n
50
\n
Enrico Vita
\n
44,3
\n
56
\n
53
\n
52
\n
60
\n
(1) until 3 November 2022 (resignation).
\n
\n \n
\n
Note 3.5 \u2013 Non-current financing
\n
As at 31 December 2022, \u201cNon-current financing\u201d amounted to \u20ac 865.2 million versus \u20ac 446.4 million in the previous
\n
year, and was as follows:
\n
31.12.2022
\n
31.12.2021
\n
< 1 year
\n
< 5 years
\n
> 5 years
\n
Total
\n
< 1 year
\n
< 5 years
\n
> 5 years
\n
Total
\n
Fair value of Current and
\n
Non-current Financing
\n
32.7
\n
704.9
\n
160.2
\n
897.8
\n
23.1
\n
240.0
\n
206.4
\n
469.5
\n
The \u201cCurrent financing\u201d debt for loans was up \u20ac 9.6 million on the previous year; this is essentially attributable to the
\n
normal amortization plan of medium/long-term debt. Meanwhile the \u201cNon-current financing\u201d compared to 31 December
\n
2021 was up \u20ac 418.7 million mainly due to new refinancing taken out in 2022.
\n \n
\n
In accordance with IFRS 16, below are the carrying amounts of financial liabilities arising from right-of-use assets broken
\n
down by maturity at 31 December 2022:
\n
Expiry dates 31.12.2022
\n
(in \u20ac million)
\n
0-12 months
\n
2-5 years
\n
>5 years
\n
Total
\n
Financial payables
\n
- non-current loans
\n
40.4
\n
10.2
\n
50.6
\n
- current loans
\n
20.8
\n
20.8
\n
Financial payables
\n
20.8
\n
40.4
\n
10.2
\n
71.4
\n
\n \n
\n \n
\n
Note 3.11 \u2013 Current financial liabilities
\n
\n \n
\n
As at 31 December 2022, \u201cCurrent financial liabilities\u201d amounted to \u20ac 49.7 million versus \u20ac 46.1 million in the previous
\n
year.
\n
\n \n \n
\n
Liabilities are the following:
\n
Current financial liabilities
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
Short-term debt due to bank
\n
21.6
\n
22.8
\n
Financial derivative liabilities
\n
10.5
\n
7.4
\n
Other current financial liabilities
\n
17.6
\n
15.8
\n
Total
\n
49.7
\n
46.1
\n
\n \n
\n
Short-term debt due to banks showed a \u20ac 1.3 million decrease as a result of a lower draw-down of short-term lines.
\n
Short-term uncommitted credit lines amounted to approximately \u20ac 395.0 million and consisted almost entirely of current
\n
account credit lines and advances utilized as at 31 December 2022 for \u20ac 49.0 million (\u20ac 34.0 as at 31 December 2021).
\n
\n
The item \u201cOther current financial liabilities\u201d amounted to \u20ac 17.6 million (\u20ac 15.8 million as at 31 December 2021) and
\n
consisted for \u20ac 13.0 million of the short-term debt for bank notes or similar tradable instruments issued, held by subsid-
\n
iaries in China, and used in commercial transactions with customers and suppliers in order to settle supply agreements.
\n
\n \n
\n
Note 3.12 \u2013 Current loans
\n
The balance of \u201cCurrent loans\u201d amounted to \u20ac 32.7 million versus \u20ac 23.1 million at 31 December 2021.
\n
The item consists primarily of the short-term portion of the medium/long-term bank loans, the details of which are an-
\n
nexed to the \u2018Note 3.5 - Non-current financing\u2019.
\n
\n \n
\n
A reconciliation of the changes in financial assets and liabilities used in financing activities indicated in the cash flow
\n
statement and the balances shown on the financial statements is provided below:
\n
Non
\n
-
\n
current
\n
financing
\n
Current financial
\n
liabilities
\n
Current loans
\n
Current
\n
financial assets
\n
Total
\n
Net impact
\n
31.12.2021
\n
446.4
\n
46.1
\n
23.1
\n
-10.8
\n
504.8
\n
Increase/decrease in short
\n
-
\n
term
\n
financial payables
\n
(1)
\n
0.0
\n
8.5
\n
-0.3
\n
-1.8
\n
6.4
\n
New loans
\n
(1)
\n
450.5
\n
0.0
\n
0.0
\n
-0.0
\n
450.5
\n
Loans repayment
\n
(1)
\n
-62.8
\n
0.0
\n
0.0
\n
-0.0
\n
-62.8
\n
New lease contracts
\n
22.5
\n
0.0
\n
0.0
\n
-0.0
\n
22.5
\n
Reclassification
\n
-6.7
\n
0.0
\n
6.7
\n
-0.0
\n
0.0
\n
Exchange rate effects
\n
0.1
\n
-1.3
\n
0.1
\n
-0.3
\n
-1.4
\n
Perimeter variation
\n
15.1
\n
15.5
\n
2.9
\n
-0.3
\n
33.2
\n
Net variation positive MTM
\n
0.0
\n
0.0
\n
0.0
\n
-34.0
\n
-34.0
\n
Other movements
\n
0.0
\n
-19.0
\n
0.0
\n
0.1
\n
-18.9
\n
31.12.2022
\n
865.2
\n
49.7
\n
32.7
\n
-47.1
\n
900.4
\n
(1): Included in the Cash flows Statement.
\n
\n \n
\n \n
\n
Note 3.6 \u2013 Other non-current liabilities
\n
\u201cOther non-current liabilities\u201d amounted to \u20ac 12.0 million versus \u20ac 14.0 million in the previous year. These liabilities are
\n
represented primarily by debts to be extinguished beyond the year and non-current contract liabilities. For the disclosure
\n
about contract liabilities, refer to \u2018Note 3.13 \u2013 Other current liabilities\u2019.
\n
\u201cOther non-current liabilities\u201d largely reflected the fair value of the debt resulting from the measurement of the individual
\n
obligations associated with Put and Call options on non-controlling interests in the recently acquired entities, primarily
\n
the newly acquired Chromagen group and the Dutch entity Haas Heating B.V. acquired in 2021.
\n
During the year, \u201cOther non-current liabilities\u201d did not record a significant variation but some transactions took place in
\n
the account.
\n
During the year, Ariston Group paid the remaining liability related to the representations and warranties foreseen in the
\n
Shares Purchase Agreement for the acquisition of the Danish entity Gastech-Energi A/S after the Danish Court Decision.
\n
The amount paid during the 2022 is equal to \u20ac 1.2 million. The payment of the liability generated a positive impact in
\n
income statement for \u20ac 1.3 million which compensates the Group for the fine imposed by the Danish Court.
\n
The shares of Gastech-Energi A/S owned by Ariston Group are now equal to 100%.
\n
As at 31 December 2021 the liability was classified in non-current liabilities because it was not possible to reliably deter-
\n
mine when the Danish Court would have issued the judgement.
\n
In June 2022, Ariston Group paid the remaining liability, related to the acquisition of the German company Kesselheld
\n
GmbH, to the sellers after agreement between the parties. The liability was not paid for the total amount because the
\n
parties offset the tax risks, arising before the Ariston Group acquisition, as stated in the agreement executed by the
\n
parties. The amount was already paid into an Escrow Account at the acquisition date and therefore in June 2022 there
\n
was not a cash out for Ariston Group. The event described above generated a positive impact in income statement for \u20ac
\n
0.3 million.
\n
\n \n \n
\n
As at 31 December 2021 the liability was classified in non-current liabilities because the expiration of the execution was
\n
in 2023, as stated in the Shares Purchase Agreement, but the parties agreed to bring forward the agreement closing in
\n
June 2022.
\n
\n \n
\n \n
\n \n
\n
Note 3.6 \u2013 Other non-current liabilities
\n
\u201cOther non-current liabilities\u201d amounted to \u20ac 12.0 million versus \u20ac 14.0 million in the previous year. These liabilities are
\n
represented primarily by debts to be extinguished beyond the year and non-current contract liabilities. For the disclosure
\n
about contract liabilities, refer to \u2018Note 3.13 \u2013 Other current liabilities\u2019.
\n
\u201cOther non-current liabilities\u201d largely reflected the fair value of the debt resulting from the measurement of the individual
\n
obligations associated with Put and Call options on non-controlling interests in the recently acquired entities, primarily
\n
the newly acquired Chromagen group and the Dutch entity Haas Heating B.V. acquired in 2021.
\n
During the year, \u201cOther non-current liabilities\u201d did not record a significant variation but some transactions took place in
\n
the account.
\n
During the year, Ariston Group paid the remaining liability related to the representations and warranties foreseen in the
\n
Shares Purchase Agreement for the acquisition of the Danish entity Gastech-Energi A/S after the Danish Court Decision.
\n
The amount paid during the 2022 is equal to \u20ac 1.2 million. The payment of the liability generated a positive impact in
\n
income statement for \u20ac 1.3 million which compensates the Group for the fine imposed by the Danish Court.
\n
The shares of Gastech-Energi A/S owned by Ariston Group are now equal to 100%.
\n
As at 31 December 2021 the liability was classified in non-current liabilities because it was not possible to reliably deter-
\n
mine when the Danish Court would have issued the judgement.
\n
In June 2022, Ariston Group paid the remaining liability, related to the acquisition of the German company Kesselheld
\n
GmbH, to the sellers after agreement between the parties. The liability was not paid for the total amount because the
\n
parties offset the tax risks, arising before the Ariston Group acquisition, as stated in the agreement executed by the
\n
parties. The amount was already paid into an Escrow Account at the acquisition date and therefore in June 2022 there
\n
was not a cash out for Ariston Group. The event described above generated a positive impact in income statement for \u20ac
\n
0.3 million.
\n
\n \n \n
\n
As at 31 December 2021 the liability was classified in non-current liabilities because the expiration of the execution was
\n
in 2023, as stated in the Shares Purchase Agreement, but the parties agreed to bring forward the agreement closing in
\n
June 2022.
\n
\n \n
\n
Note 3.13 \u2013 Other current liabilities
\n \n
\n
\u201cOther current liabilities\u201d amounted to \u20ac 174.5 million, increased by \u20ac 16.2 million with the \u20ac 186.3 million at 31 Decem-
\n
ber 2021.
\n
Other current liabilities
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
Current payables due to personnel
\n
51.7
\n
50.9
\n
Contract liabilities
\n
41.9
\n
34.6
\n
Indirect tax payables
\n
29.2
\n
20.2
\n
Current payables for social security contributions
\n
19.1
\n
17.9
\n
Customers credit balance
\n
13.1
\n
9.0
\n
Advances from customers
\n
5.6
\n
7.2
\n
Deferred income
\n
4.8
\n
5.6
\n
Short-term put/call debts
\n
3.8
\n
25.1
\n
Long-term employees incentive scheme (current)
\n
0.3
\n
2.2
\n
State Green Programmes
\n
0.0
\n
7.5
\n
Other current payables
\n
5.1
\n
6.1
\n
Total
\n
174.5
\n
186.3
\n
\n \n \n
\n
In accordance with IFRS 15, performance obligations to customers at contract level are presented as contract liabilities.
\n
Contract liabilities include:
\n
\u2022
\n
Rights of Return
\n
\u2022
\n
After-sales service, which include Service maintenance contracts and Service type warranties
\n
31.12.2022
\n
31.12.2021
\n
Up to 1
\n
year
\n
From 1 to
\n
5 years
\n
Over 5
\n
years
\n
Total
\n
Up to 1
\n
year
\n
From 1 to 5
\n
years
\n
Over 5
\n
years
\n
Total
\n
Right of returns
\n
2.7
\n
0.0
\n
0.0
\n
2.7
\n
1.4
\n
0.0
\n
0.0
\n
1.4
\n
After-sales services
\n
39.1
\n
3.7
\n
7.8
\n
50.6
\n
33.2
\n
2.1
\n
7.0
\n
42.3
\n
Total
\n
41.9
\n
3.7
\n
7.8
\n
53.4
\n
34.6
\n
2.1
\n
7.0
\n
43.7
\n
\n \n
\n \n
\n \n
\n \n
\n
The table below presents the opening and closing balances of contract liabilities as well as movements during the years:
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2021
\n
0.0
\n
35.5
\n
35.5
\n
Increase recognized during the period
\n
0.0
\n
85.6
\n
85.6
\n
Revenue recognized during the period
\n
0.0
\n
-82.9
\n
-82.9
\n
Contracts cancelled during the period
\n
0.0
\n
-0.4
\n
-0.4
\n
Net variation invoicing
\n
0.0
\n
4.0
\n
4.0
\n
Other changes to contract balances
\n
1.4
\n
0.5
\n
1.9
\n
Closing balance 31.12.2021
\n
1.4
\n
42.3
\n
43.7
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2022
\n
1.4
\n
42.3
\n
43.7
\n
Increase recognized during the period
\n
0.0
\n
103.7
\n
103.7
\n
Revenue recognized during the period
\n
0.0
\n
-92.7
\n
-92.7
\n
Contracts cancelled during the period
\n
0.0
\n
-2.1
\n
-2.1
\n
Net variation invoicing
\n
0.0
\n
-1.4
\n
-1.4
\n
Other changes to contract balances
\n
1.3
\n
0.9
\n
2.2
\n
Closing balance 31.12.2022
\n
2.7
\n
50.6
\n
53.4
\n
\n \n
\n \n
\u201cCurrent payables due to personnel\u201d include the amounts accrued by personnel and not yet disbursed. It increased by \u20ac
\n
0.8 million compared to 31 December 2021.
\n
The item \u201cIndirect tax payables\u201d includes the VAT payables due to tax authorities. The \u20ac 9.0 million increase was linked
\n
to the operative business.
\n
\u201cCurrent payables for social security contributions\u201d included all relationships that the company is required to maintain
\n
with social security and insurance entities for its employees and workers with atypical contracts (
\n
parasubordinati
\n
). It was
\n
up by \u20ac1.2 million compared with 31 December 2021.
\n \n
\n
The \u201cShort-term put/call debts\u201d arises from purchase agreements that are to be settled in the near future. The item
\n
showed a decrease, discussed below, of \u20ac 21.3 million.
\n
In May 2022, the Group exercised the Put and Call option for HTP Comfort Solutions LLC, now known as Ariston Thermo
\n
USA LLC. Starting from 31 May 2022, the Ariston Thermo USA LLC\u2019s shares owned by Ariston Group are now equal to
\n
100%. The amount paid during the 2022 is equal to $ 23.4 million (\u20ac 21.9 million). The liability related to the earn out has
\n
been not paid to the seller after agreed between the parties. This event has generated a positive financial impact in
\n
income statement for \u20ac 4.9 million.
\n
In January 2022, Ariston Group completed the acquisition of Chromagen group. From the Asset Purchase Agreement is
\n
stated a representation and warranties clause covered by an escrow account (\u20ac 2.2 million) as guarantee for the seller.
\n
The present value of the outstanding amount that will be paid to the seller is considered as financial liabilities
\n
The balance as at 31 December 2022 includes the liability for the Put and Call on HAAS B.V., Atmor Industries and Chro-
\n
magen group.
\n
\n \n
The item \u201cAdvances from customers\u201d shows all advances received from customers for supplies not yet delivered. The
\n
item was substantially in line with 31 December 2021.
\n \n
\n
\u201cDeferred income\u201d included adjustments of costs and revenues for the year in order to comply with the competence
\n
principle and the accrual principle (accruals and deferred income, also relating to financial liabilities).
\n
\n \n
The item \u201cLong-term employees incentive scheme\u201d reflects the obligation under a three-year long-term incentive plan
\n
(LTI), to be awarded to the group of senior managers. The reduction is due to the reclassification to equity, according to
\n
IFRS 2 principle, whit most of incentive schemes being shifted to a share-based plan.
\n
The \u201cState Green Programmes\u201d includes the amounts due and not paid to the entities that sold Ariston Group companies
\n
tax credits relating to energy efficiency or energy saving projects falling within the scope of Article 14 of Italian Decree-
\n
Law no. 63/2013 and Article 16 bis of Italian Presidential Decree 917 of 1986 (\u201cEcobonus Projects\u201d), carried out by using
\n
products purchased from a reseller and provided to the latter by the Group's companies. The significant decrease of the
\n
\u201cState Green Programmes\u201d equal to \u20ac 7.5 million is due to the payments to the counterparts after the collection of the
\n
\n \n
\n
receivables during December 2022 while at 31 December 2021 the payment was partial due to in complete collection
\n
from banks as mentioned in \u2018Note 2.12 \u2013 Other current assets\u2019.
\n
\n \n
\n
Note 3.8 \u2013 Trade payables
\n
\u201cTrade payables\u201d at 31 December 2022 amounted to \u20ac 481.4 million showing an increase of \u20ac 4.2 million, compared with
\n
31 December 2021. They are not subject to interests and their carrying value is believed to be close to the fair value at
\n
the end of the reporting period.
\n
Trade payables in terms of the average number of days for payment, amounted to 96 days in 2022 and 97 days in 2021.
\n
\n \n
\n \n
\n \n
\n \n
\n
Note 3.13 \u2013 Other current liabilities
\n \n
\n
\u201cOther current liabilities\u201d amounted to \u20ac 174.5 million, increased by \u20ac 16.2 million with the \u20ac 186.3 million at 31 Decem-
\n
ber 2021.
\n
Other current liabilities
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
Current payables due to personnel
\n
51.7
\n
50.9
\n
Contract liabilities
\n
41.9
\n
34.6
\n
Indirect tax payables
\n
29.2
\n
20.2
\n
Current payables for social security contributions
\n
19.1
\n
17.9
\n
Customers credit balance
\n
13.1
\n
9.0
\n
Advances from customers
\n
5.6
\n
7.2
\n
Deferred income
\n
4.8
\n
5.6
\n
Short-term put/call debts
\n
3.8
\n
25.1
\n
Long-term employees incentive scheme (current)
\n
0.3
\n
2.2
\n
State Green Programmes
\n
0.0
\n
7.5
\n
Other current payables
\n
5.1
\n
6.1
\n
Total
\n
174.5
\n
186.3
\n
\n \n \n
\n
In accordance with IFRS 15, performance obligations to customers at contract level are presented as contract liabilities.
\n
Contract liabilities include:
\n
\u2022
\n
Rights of Return
\n
\u2022
\n
After-sales service, which include Service maintenance contracts and Service type warranties
\n
31.12.2022
\n
31.12.2021
\n
Up to 1
\n
year
\n
From 1 to
\n
5 years
\n
Over 5
\n
years
\n
Total
\n
Up to 1
\n
year
\n
From 1 to 5
\n
years
\n
Over 5
\n
years
\n
Total
\n
Right of returns
\n
2.7
\n
0.0
\n
0.0
\n
2.7
\n
1.4
\n
0.0
\n
0.0
\n
1.4
\n
After-sales services
\n
39.1
\n
3.7
\n
7.8
\n
50.6
\n
33.2
\n
2.1
\n
7.0
\n
42.3
\n
Total
\n
41.9
\n
3.7
\n
7.8
\n
53.4
\n
34.6
\n
2.1
\n
7.0
\n
43.7
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
The table below presents the opening and closing balances of contract liabilities as well as movements during the years:
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2021
\n
0.0
\n
35.5
\n
35.5
\n
Increase recognized during the period
\n
0.0
\n
85.6
\n
85.6
\n
Revenue recognized during the period
\n
0.0
\n
-82.9
\n
-82.9
\n
Contracts cancelled during the period
\n
0.0
\n
-0.4
\n
-0.4
\n
Net variation invoicing
\n
0.0
\n
4.0
\n
4.0
\n
Other changes to contract balances
\n
1.4
\n
0.5
\n
1.9
\n
Closing balance 31.12.2021
\n
1.4
\n
42.3
\n
43.7
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2022
\n
1.4
\n
42.3
\n
43.7
\n
Increase recognized during the period
\n
0.0
\n
103.7
\n
103.7
\n
Revenue recognized during the period
\n
0.0
\n
-92.7
\n
-92.7
\n
Contracts cancelled during the period
\n
0.0
\n
-2.1
\n
-2.1
\n
Net variation invoicing
\n
0.0
\n
-1.4
\n
-1.4
\n
Other changes to contract balances
\n
1.3
\n
0.9
\n
2.2
\n
Closing balance 31.12.2022
\n
2.7
\n
50.6
\n
53.4
\n
\n \n
\n \n
\u201cCurrent payables due to personnel\u201d include the amounts accrued by personnel and not yet disbursed. It increased by \u20ac
\n
0.8 million compared to 31 December 2021.
\n
The item \u201cIndirect tax payables\u201d includes the VAT payables due to tax authorities. The \u20ac 9.0 million increase was linked
\n
to the operative business.
\n
\u201cCurrent payables for social security contributions\u201d included all relationships that the company is required to maintain
\n
with social security and insurance entities for its employees and workers with atypical contracts (
\n
parasubordinati
\n
). It was
\n
up by \u20ac1.2 million compared with 31 December 2021.
\n \n
\n
The \u201cShort-term put/call debts\u201d arises from purchase agreements that are to be settled in the near future. The item
\n
showed a decrease, discussed below, of \u20ac 21.3 million.
\n
In May 2022, the Group exercised the Put and Call option for HTP Comfort Solutions LLC, now known as Ariston Thermo
\n
USA LLC. Starting from 31 May 2022, the Ariston Thermo USA LLC\u2019s shares owned by Ariston Group are now equal to
\n
100%. The amount paid during the 2022 is equal to $ 23.4 million (\u20ac 21.9 million). The liability related to the earn out has
\n
been not paid to the seller after agreed between the parties. This event has generated a positive financial impact in
\n
income statement for \u20ac 4.9 million.
\n
In January 2022, Ariston Group completed the acquisition of Chromagen group. From the Asset Purchase Agreement is
\n
stated a representation and warranties clause covered by an escrow account (\u20ac 2.2 million) as guarantee for the seller.
\n
The present value of the outstanding amount that will be paid to the seller is considered as financial liabilities
\n
The balance as at 31 December 2022 includes the liability for the Put and Call on HAAS B.V., Atmor Industries and Chro-
\n
magen group.
\n
\n \n
The item \u201cAdvances from customers\u201d shows all advances received from customers for supplies not yet delivered. The
\n
item was substantially in line with 31 December 2021.
\n \n
\n
\u201cDeferred income\u201d included adjustments of costs and revenues for the year in order to comply with the competence
\n
principle and the accrual principle (accruals and deferred income, also relating to financial liabilities).
\n
\n \n
The item \u201cLong-term employees incentive scheme\u201d reflects the obligation under a three-year long-term incentive plan
\n
(LTI), to be awarded to the group of senior managers. The reduction is due to the reclassification to equity, according to
\n
IFRS 2 principle, whit most of incentive schemes being shifted to a share-based plan.
\n
The \u201cState Green Programmes\u201d includes the amounts due and not paid to the entities that sold Ariston Group companies
\n
tax credits relating to energy efficiency or energy saving projects falling within the scope of Article 14 of Italian Decree-
\n
Law no. 63/2013 and Article 16 bis of Italian Presidential Decree 917 of 1986 (\u201cEcobonus Projects\u201d), carried out by using
\n
products purchased from a reseller and provided to the latter by the Group's companies. The significant decrease of the
\n
\u201cState Green Programmes\u201d equal to \u20ac 7.5 million is due to the payments to the counterparts after the collection of the
\n
\n \n
\n \n
\n \n
\n
\n \n
\n \n
\n
receivables during December 2022 while at 31 December 2021 the payment was partial due to in complete collection
\n
from banks as mentioned in \u2018Note 2.12 \u2013 Other current assets\u2019.
\n
\n \n
\n \n
\n
\n \n
\n \n
\n
Note 3.13 \u2013 Other current liabilities
\n \n
\n
\u201cOther current liabilities\u201d amounted to \u20ac 174.5 million, increased by \u20ac 16.2 million with the \u20ac 186.3 million at 31 Decem-
\n
ber 2021.
\n
Other current liabilities
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
Current payables due to personnel
\n
51.7
\n
50.9
\n
Contract liabilities
\n
41.9
\n
34.6
\n
Indirect tax payables
\n
29.2
\n
20.2
\n
Current payables for social security contributions
\n
19.1
\n
17.9
\n
Customers credit balance
\n
13.1
\n
9.0
\n
Advances from customers
\n
5.6
\n
7.2
\n
Deferred income
\n
4.8
\n
5.6
\n
Short-term put/call debts
\n
3.8
\n
25.1
\n
Long-term employees incentive scheme (current)
\n
0.3
\n
2.2
\n
State Green Programmes
\n
0.0
\n
7.5
\n
Other current payables
\n
5.1
\n
6.1
\n
Total
\n
174.5
\n
186.3
\n
\n \n \n
\n
In accordance with IFRS 15, performance obligations to customers at contract level are presented as contract liabilities.
\n
Contract liabilities include:
\n
\u2022
\n
Rights of Return
\n
\u2022
\n
After-sales service, which include Service maintenance contracts and Service type warranties
\n
31.12.2022
\n
31.12.2021
\n
Up to 1
\n
year
\n
From 1 to
\n
5 years
\n
Over 5
\n
years
\n
Total
\n
Up to 1
\n
year
\n
From 1 to 5
\n
years
\n
Over 5
\n
years
\n
Total
\n
Right of returns
\n
2.7
\n
0.0
\n
0.0
\n
2.7
\n
1.4
\n
0.0
\n
0.0
\n
1.4
\n
After-sales services
\n
39.1
\n
3.7
\n
7.8
\n
50.6
\n
33.2
\n
2.1
\n
7.0
\n
42.3
\n
Total
\n
41.9
\n
3.7
\n
7.8
\n
53.4
\n
34.6
\n
2.1
\n
7.0
\n
43.7
\n
\n \n
\n \n
\n \n
\n
The table below presents the opening and closing balances of contract liabilities as well as movements during the years:
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2021
\n
0.0
\n
35.5
\n
35.5
\n
Increase recognized during the period
\n
0.0
\n
85.6
\n
85.6
\n
Revenue recognized during the period
\n
0.0
\n
-82.9
\n
-82.9
\n
Contracts cancelled during the period
\n
0.0
\n
-0.4
\n
-0.4
\n
Net variation invoicing
\n
0.0
\n
4.0
\n
4.0
\n
Other changes to contract balances
\n
1.4
\n
0.5
\n
1.9
\n
Closing balance 31.12.2021
\n
1.4
\n
42.3
\n
43.7
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2022
\n
1.4
\n
42.3
\n
43.7
\n
Increase recognized during the period
\n
0.0
\n
103.7
\n
103.7
\n
Revenue recognized during the period
\n
0.0
\n
-92.7
\n
-92.7
\n
Contracts cancelled during the period
\n
0.0
\n
-2.1
\n
-2.1
\n
Net variation invoicing
\n
0.0
\n
-1.4
\n
-1.4
\n
Other changes to contract balances
\n
1.3
\n
0.9
\n
2.2
\n
Closing balance 31.12.2022
\n
2.7
\n
50.6
\n
53.4
\n
\n
\u201cDeferred income\u201d included adjustments of costs and revenues for the year in order to comply with the competence
\n
principle and the accrual principle (accruals and deferred income, also relating to financial liabilities).
\n
\n \n
\n
Note 3.13 \u2013 Other current liabilities
\n \n
\n
\u201cOther current liabilities\u201d amounted to \u20ac 174.5 million, increased by \u20ac 16.2 million with the \u20ac 186.3 million at 31 Decem-
\n
ber 2021.
\n
Other current liabilities
\n
(in \u20ac million)
\n
31.12.2022
\n
31.12.2021
\n
Current payables due to personnel
\n
51.7
\n
50.9
\n
Contract liabilities
\n
41.9
\n
34.6
\n
Indirect tax payables
\n
29.2
\n
20.2
\n
Current payables for social security contributions
\n
19.1
\n
17.9
\n
Customers credit balance
\n
13.1
\n
9.0
\n
Advances from customers
\n
5.6
\n
7.2
\n
Deferred income
\n
4.8
\n
5.6
\n
Short-term put/call debts
\n
3.8
\n
25.1
\n
Long-term employees incentive scheme (current)
\n
0.3
\n
2.2
\n
State Green Programmes
\n
0.0
\n
7.5
\n
Other current payables
\n
5.1
\n
6.1
\n
Total
\n
174.5
\n
186.3
\n
\n \n \n
\n
In accordance with IFRS 15, performance obligations to customers at contract level are presented as contract liabilities.
\n
Contract liabilities include:
\n
\u2022
\n
Rights of Return
\n
\u2022
\n
After-sales service, which include Service maintenance contracts and Service type warranties
\n
31.12.2022
\n
31.12.2021
\n
Up to 1
\n
year
\n
From 1 to
\n
5 years
\n
Over 5
\n
years
\n
Total
\n
Up to 1
\n
year
\n
From 1 to 5
\n
years
\n
Over 5
\n
years
\n
Total
\n
Right of returns
\n
2.7
\n
0.0
\n
0.0
\n
2.7
\n
1.4
\n
0.0
\n
0.0
\n
1.4
\n
After-sales services
\n
39.1
\n
3.7
\n
7.8
\n
50.6
\n
33.2
\n
2.1
\n
7.0
\n
42.3
\n
Total
\n
41.9
\n
3.7
\n
7.8
\n
53.4
\n
34.6
\n
2.1
\n
7.0
\n
43.7
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
The table below presents the opening and closing balances of contract liabilities as well as movements during the years:
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2021
\n
0.0
\n
35.5
\n
35.5
\n
Increase recognized during the period
\n
0.0
\n
85.6
\n
85.6
\n
Revenue recognized during the period
\n
0.0
\n
-82.9
\n
-82.9
\n
Contracts cancelled during the period
\n
0.0
\n
-0.4
\n
-0.4
\n
Net variation invoicing
\n
0.0
\n
4.0
\n
4.0
\n
Other changes to contract balances
\n
1.4
\n
0.5
\n
1.9
\n
Closing balance 31.12.2021
\n
1.4
\n
42.3
\n
43.7
\n
Right of returns
\n
After-sales services
\n
Total
\n
Opening Balance 01.01.2022
\n
1.4
\n
42.3
\n
43.7
\n
Increase recognized during the period
\n
0.0
\n
103.7
\n
103.7
\n
Revenue recognized during the period
\n
0.0
\n
-92.7
\n
-92.7
\n
Contracts cancelled during the period
\n
0.0
\n
-2.1
\n
-2.1
\n
Net variation invoicing
\n
0.0
\n
-1.4
\n
-1.4
\n
Other changes to contract balances
\n
1.3
\n
0.9
\n
2.2
\n
Closing balance 31.12.2022
\n
2.7
\n
50.6
\n
53.4
\n
\n \n
\n \n
\u201cCurrent payables due to personnel\u201d include the amounts accrued by personnel and not yet disbursed. It increased by \u20ac
\n
0.8 million compared to 31 December 2021.
\n
The item \u201cIndirect tax payables\u201d includes the VAT payables due to tax authorities. The \u20ac 9.0 million increase was linked
\n
to the operative business.
\n
\u201cCurrent payables for social security contributions\u201d included all relationships that the company is required to maintain
\n
with social security and insurance entities for its employees and workers with atypical contracts (
\n
parasubordinati
\n
). It was
\n
up by \u20ac1.2 million compared with 31 December 2021.
\n \n
\n
The \u201cShort-term put/call debts\u201d arises from purchase agreements that are to be settled in the near future. The item
\n
showed a decrease, discussed below, of \u20ac 21.3 million.
\n
In May 2022, the Group exercised the Put and Call option for HTP Comfort Solutions LLC, now known as Ariston Thermo
\n
USA LLC. Starting from 31 May 2022, the Ariston Thermo USA LLC\u2019s shares owned by Ariston Group are now equal to
\n
100%. The amount paid during the 2022 is equal to $ 23.4 million (\u20ac 21.9 million). The liability related to the earn out has
\n
been not paid to the seller after agreed between the parties. This event has generated a positive financial impact in
\n
income statement for \u20ac 4.9 million.
\n
In January 2022, Ariston Group completed the acquisition of Chromagen group. From the Asset Purchase Agreement is
\n
stated a representation and warranties clause covered by an escrow account (\u20ac 2.2 million) as guarantee for the seller.
\n
The present value of the outstanding amount that will be paid to the seller is considered as financial liabilities
\n
The balance as at 31 December 2022 includes the liability for the Put and Call on HAAS B.V., Atmor Industries and Chro-
\n
magen group.
\n
\n \n
The item \u201cAdvances from customers\u201d shows all advances received from customers for supplies not yet delivered. The
\n
item was substantially in line with 31 December 2021.
\n \n
\n
\u201cDeferred income\u201d included adjustments of costs and revenues for the year in order to comply with the competence
\n
principle and the accrual principle (accruals and deferred income, also relating to financial liabilities).
\n
\n \n
The item \u201cLong-term employees incentive scheme\u201d reflects the obligation under a three-year long-term incentive plan
\n
(LTI), to be awarded to the group of senior managers. The reduction is due to the reclassification to equity, according to
\n
IFRS 2 principle, whit most of incentive schemes being shifted to a share-based plan.
\n
The \u201cState Green Programmes\u201d includes the amounts due and not paid to the entities that sold Ariston Group companies
\n
tax credits relating to energy efficiency or energy saving projects falling within the scope of Article 14 of Italian Decree-
\n
Law no. 63/2013 and Article 16 bis of Italian Presidential Decree 917 of 1986 (\u201cEcobonus Projects\u201d), carried out by using
\n
products purchased from a reseller and provided to the latter by the Group's companies. The significant decrease of the
\n
\u201cState Green Programmes\u201d equal to \u20ac 7.5 million is due to the payments to the counterparts after the collection of the
\n
\n \n
\n \n
\n \n
\n
receivables during December 2022 while at 31 December 2021 the payment was partial due to in complete collection
\n
from banks as mentioned in \u2018Note 2.12 \u2013 Other current assets\u2019.
\n
\n \n
\n
Note 3.14 \u2013 Liabilities held for sale
\n
There are no \u201cLiabilities held for sale\u201d.
\n
\n
COMMITMENTS
\n \n
\n
Commitments
\n
The commitments outstanding at 31 December 2022, equal to \u20ac 0.1 million, referred to the equivalent value of the pay-
\n
ments (USD 0.1 million) of additional shares in an ''Investment company in risk capital (SICAR) provision'' specializing in
\n
interventions in sectors in which the Group operates, to be carried out when they are called up by the fund managers for
\n
the established commitment.
\n
At 31 December 2022, there were no other commitments to be mentioned except for the ones concerning the call and
\n
put options entered into as part of the recent acquisitions and already accounted for as \u201cOther liabilities\u201d.
\n
\n \n
Guarantees issued
\n
The sureties issued in favour of third parties amounted to \u20ac 0.6 million.
\n
Third-party assets in deposit accounts amounted to \u20ac 14.4 million.
\n
No collateral guarantees are issued by the Group.
\n
\n
Commitments
\n
The commitments outstanding at 31 December 2022, equal to \u20ac 0.1 million, referred to the equivalent value of the pay-
\n
ments (USD 0.1 million) of additional shares in an ''Investment company in risk capital (SICAR) provision'' specializing in
\n
interventions in sectors in which the Group operates, to be carried out when they are called up by the fund managers for
\n
the established commitment.
\n
At 31 December 2022, there were no other commitments to be mentioned except for the ones concerning the call and
\n
put options entered into as part of the recent acquisitions and already accounted for as \u201cOther liabilities\u201d.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
FINANCIAL INSTRUMENTS
\n
Below are the Group's financial instruments recognised by category and level of confidence of their fair value measure-
\n
ments at 31 December 2022:
\n
31.12.2022
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Available for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
liabil-
\n
ities at
\n
amortised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measured at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Finan
\n
cial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0.0
\n
0.0
\n
0.0
\n
999.3
\n
0.0
\n
999.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade re
\n
ceivables
\n
2.9
\n
0.0
\n
0.0
\n
0.0
\n
308.4
\n
0.0
\n
308.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current
\n
financial
\n
assets
\n
2.11
\n
0.0
\n
34.8
\n
0.0
\n
10.2
\n
2.0
\n
47.1
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial assets
\n
2.5
\n
0.0
\n
0.0
\n
0.0
\n
6.1
\n
0.0
\n
6.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
34.8
\n
0.0
\n
1,324.0
\n
2.0
\n
1,360
\n
.
\n
8
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial liabilities
\n
Trade
\n
payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
481.4
\n
481.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial lia-
\n
bilities
\n
3.11
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
44.8
\n
49.7
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Current
\n
loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
32.7
\n
32.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current
\n
financing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
865.2
\n
865.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
1,424.0
\n
1,428.8
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Financial instruments
\n
balance
\n
0.0
\n
30.0
\n
0.0
\n
1,324.0
\n
-1,422.0
\n
-68.0
\n
0.0
\n
30.0
\n
0.0
\n
30.0
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
The financial instruments of the Group, recognised in the financial statements with a similar breakdown at 31 December
\n
2021, are shown in the table below:
\n
31.12.2021
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Availa-
\n
ble for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
lia-
\n
bilities
\n
at
\n
amor-
\n
tised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measu
\n
red at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair
\n
value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Financial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
689.7
\n
0.0
\n
689.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade receivables
\n
2.9
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
248.3
\n
0.0
\n
248.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial
\n
assets
\n
2.11
\n
0
\n
.0
\n
0.8
\n
0.0
\n
9.0
\n
1.0
\n
10.8
\n
0
\n
.0
\n
0.8
\n
0
\n
.0
\n
0.8
\n
Financial assets
\n
2.5
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
5.2
\n
0
\n
.0
\n
5.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
0.8
\n
0.
\n
0
\n
952.1
\n
1.0
\n
95
\n
3.9
\n
0
\n
0.8
\n
0.0
\n
0.8
\n
Financial liabilities
\n
Trade payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
477.2
\n
477.2
\n
0.0
\n
0.0
\n
0.0
\n
0
\n
.0
\n
Current financial
\n
liabilities
\n
3.11
\n
0.0
\n
2.5
\n
0.0
\n
0.0
\n
43.6
\n
46.1
\n
0.0
\n
2.5
\n
0.0
\n
2.5
\n
Current loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
23.1
\n
23.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current financ-
\n
ing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
446.4
\n
446.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.
\n
0
\n
2.5
\n
0.0
\n
0.0
\n
990.3
\n
992.8
\n
0.
\n
0
\n
2.5
\n
0.0
\n
2.5
\n
Financial
\n
instruments balance
\n
0.0
\n
-
\n
1.7
\n
0
\n
952.1
\n
-
\n
989.3
\n
-
\n
38.9
\n
0
\n
-
\n
1.7
\n
0.0
\n
-1.7
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Notes:
\n
Level 1: quoted prices on an active market for the asset or liability being measured.
\n
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived
\n
from prices).
\n
Level 3: unobservable inputs for the asset or liability.
\n
As the above table shows, at the reporting date, there were no differences between the carrying amounts of financial
\n
instruments and the corresponding fair value. In particular, among the non-current financial assets, obligations are mainly
\n
stated at fair value.
\n
Current and non-current loans are at both fixed and floating rates and are recognised at their amortised cost.
\n
As already described in \u2018Note 3.11 \u2013 Current financial liabilities\u2019 and in \u2018Note 2.11 \u2013 Current financial assets\u2019 of these
\n
notes, current financial assets/liabilities include the fair value, at the end of the reporting period, of the derivative finan-
\n
cial instruments used to hedge the purchase of commodities (negative for \u20ac 0.6 million), exchange rates (negative for \u20ac
\n
2.0 million) and interest rates (positive for \u20ac 32.5 million).
\n
For details on these transactions, see the section \u201cHedging instruments\u201d.
\n
\n \n
\n \n
\n
HEDGING INSTRUMENTS
\n
In summary, at 31 December 2022, the following financial hedging instruments are in place:
\n
\u2022
\n
against exchange rates \u2013 Swiss franc, British pound sterling, US dollar and Chinese renminbi;
\n
\u2022
\n
against commodities \u2013 copper, nickel, silver, aluminium and steel;
\n
\u2022
\n
against interest rates \u2013 medium/long-term floating rate loans.
\n
The hedging instruments applied to exchange rates were set up in order to reduce the Group\u2019s economic and transac-
\n
tional risk, and they meet all the formal requirements set out in the IAS/IFRSs and are therefore recognised in hedge
\n
accounting.
\n
The following table shows the details of hedging instruments in use as at 31 December 2022. The amounts are expressed
\n
in millions of euro:
\n
Hedging instruments
\n
31.12.2022
\n
(in \u20ac million)
\n
Nature of
\n
risk
\n
covered
\n
Fair value
\n
31.12.2022
\n
Non-current
\n
financial
\n
assets
\n
Current
\n
financial
\n
assets
\n
Non-
\n
current
\n
financial
\n
liabili-
\n
ties
\n
Current fi-
\n
nancial
\n
liabilities
\n
Total
\n
Interest Rate Swap
\n
Interest
\n
rate
\n
32.5
\n
32.5
\n
32.5
\n
Average Forward
\n
FX
\n
-2.0
\n
1.5
\n
-3.5
\n
-2.0
\n
Forward
\n
Commodity
\n
-1.1
\n
0.2
\n
-1.3
\n
-1.1
\n
Average Forward
\n
Commodity
\n
0.5
\n
0.5
\n
0.0
\n
0.5
\n
Hedging instruments
\n
30.0
\n
34.8
\n
-4.8
\n
30.0
\n
The following table shows the details of hedging instruments in use as at 31 December 2022. The amounts are expressed
\n
in millions of euro:
\n
Hedging instruments
\n
31.12.2021
\n
(in \u20ac million)
\n
Nature of
\n
risk covered
\n
Fair value
\n
31.12.2021
\n
Non-current
\n
financial
\n
assets
\n
Current
\n
financial
\n
assets
\n
Non-cur-
\n
rent
\n
financial
\n
liabilities
\n
Current
\n
financial
\n
liabilities
\n
Total
\n
Interest Rate Swap
\n
Interest rate
\n
-1.2
\n
-1.2
\n
-1.2
\n
Average Forward
\n
FX
\n
-1.2
\n
-1.2
\n
-1.2
\n
Forward
\n
Commodity
\n
0.8
\n
0.8
\n
0.8
\n
Average Forward
\n
Commodity
\n
-0.1
\n
-0.1
\n
-0.1
\n
Hedging instruments
\n
-1.7
\n
-1.2
\n
-0.5
\n
-1.7
\n
\n \n
\n \n
\n \n
\n \n
\n
FINANCIAL INSTRUMENTS
\n
Below are the Group's financial instruments recognised by category and level of confidence of their fair value measure-
\n
ments at 31 December 2022:
\n
31.12.2022
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin. instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Available for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
liabil-
\n
ities at
\n
amortised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measured at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Finan
\n
cial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0.0
\n
0.0
\n
0.0
\n
999.3
\n
0.0
\n
999.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade re
\n
ceivables
\n
2.9
\n
0.0
\n
0.0
\n
0.0
\n
308.4
\n
0.0
\n
308.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current
\n
financial
\n
assets
\n
2.11
\n
0.0
\n
34.8
\n
0.0
\n
10.2
\n
2.0
\n
47.1
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial assets
\n
2.5
\n
0.0
\n
0.0
\n
0.0
\n
6.1
\n
0.0
\n
6.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
34.8
\n
0.0
\n
1,324.0
\n
2.0
\n
1,360
\n
.
\n
8
\n
0.0
\n
34.8
\n
0.0
\n
34.8
\n
Financial liabilities
\n
Trade
\n
payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
481.4
\n
481.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial lia-
\n
bilities
\n
3.11
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
44.8
\n
49.7
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Current
\n
loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
32.7
\n
32.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current
\n
financing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
865.2
\n
865.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
4.8
\n
0.0
\n
0.0
\n
1,424.0
\n
1,428.8
\n
0.0
\n
4.8
\n
0.0
\n
4.8
\n
Financial instruments
\n
balance
\n
0.0
\n
30.0
\n
0.0
\n
1,324.0
\n
-1,422.0
\n
-68.0
\n
0.0
\n
30.0
\n
0.0
\n
30.0
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
The financial instruments of the Group, recognised in the financial statements with a similar breakdown at 31 December
\n
2021, are shown in the table below:
\n
31.12.2021
\n
(in \u20ac million)
\n
Note
\n
Carrying value per type
\n
Fair value
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
P&L
\n
Fin.
\n
instr.
\n
at fair
\n
value
\n
through
\n
OCI
\n
Availa-
\n
ble for
\n
sale
\n
Loans &
\n
receiva-
\n
bles
\n
(*)
\n
Fin.
\n
lia-
\n
bilities
\n
at
\n
amor-
\n
tised
\n
cost
\n
(*)
\n
Total
\n
Level 1
\n
Level 2
\n
Level 3
\n
Total
\n
Measu
\n
red at :
\n
Fair
\n
value
\n
Fair
\n
value
\n
Fair
\n
value
\n
Amor-
\n
tised
\n
cost
\n
Amor-
\n
tised
\n
cost
\n
Financial assets
\n
Cash and cash
\n
equivalents
\n
2.13
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
689.7
\n
0.0
\n
689.7
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Trade receivables
\n
2.9
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
248.3
\n
0.0
\n
248.3
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Current financial
\n
assets
\n
2.11
\n
0
\n
.0
\n
0.8
\n
0.0
\n
9.0
\n
1.0
\n
10.8
\n
0
\n
.0
\n
0.8
\n
0
\n
.0
\n
0.8
\n
Financial assets
\n
2.5
\n
0
\n
.0
\n
0
\n
.0
\n
0.0
\n
5.2
\n
0
\n
.0
\n
5.2
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.0
\n
0.8
\n
0.
\n
0
\n
952.1
\n
1.0
\n
95
\n
3.9
\n
0
\n
0.8
\n
0.0
\n
0.8
\n
Financial liabilities
\n
Trade payables
\n
3.8
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
477.2
\n
477.2
\n
0.0
\n
0.0
\n
0.0
\n
0
\n
.0
\n
Current financial
\n
liabilities
\n
3.11
\n
0.0
\n
2.5
\n
0.0
\n
0.0
\n
43.6
\n
46.1
\n
0.0
\n
2.5
\n
0.0
\n
2.5
\n
Current loans
\n
3.12
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
23.1
\n
23.1
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Non
\n
-
\n
current financ-
\n
ing
\n
3.5
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
446.4
\n
446.4
\n
0.0
\n
0.0
\n
0.0
\n
0.0
\n
Total
\n
0.
\n
0
\n
2.5
\n
0.0
\n
0.0
\n
990.3
\n
992.8
\n
0.
\n
0
\n
2.5
\n
0.0
\n
2.5
\n
Financial
\n
instruments balance
\n
0.0
\n
-
\n
1.7
\n
0
\n
952.1
\n
-
\n
989.3
\n
-
\n
38.9
\n
0
\n
-
\n
1.7
\n
0.0
\n
-1.7
\n
(*)
\n
For such categories the carrying amount approximates the fair value
\n
\n \n
\n \n
\n \n
\n
Notes:
\n
Level 1: quoted prices on an active market for the asset or liability being measured.
\n
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived
\n
from prices).
\n
Level 3: unobservable inputs for the asset or liability.
\n
As the above table shows, at the reporting date, there were no differences between the carrying amounts of financial
\n
instruments and the corresponding fair value. In particular, among the non-current financial assets, obligations are mainly
\n
stated at fair value.
\n
Current and non-current loans are at both fixed and floating rates and are recognised at their amortised cost.
\n
As already described in \u2018Note 3.11 \u2013 Current financial liabilities\u2019 and in \u2018Note 2.11 \u2013 Current financial assets\u2019 of these
\n
notes, current financial assets/liabilities include the fair value, at the end of the reporting period, of the derivative finan-
\n
cial instruments used to hedge the purchase of commodities (negative for \u20ac 0.6 million), exchange rates (negative for \u20ac
\n
2.0 million) and interest rates (positive for \u20ac 32.5 million).
\n
For details on these transactions, see the section \u201cHedging instruments\u201d.
\n
\n
The Group is exposed to operations related financial risks, including credit risk, liquidity risk and market risk, and con-
\n
stantly monitors them.
\n
The following section provides qualitative and quantitative information about the impact of these risks on the Group.
\n
\n \n
\n \n
Credit risk is the Group\u2019s exposure to potential losses from failure by commercial counterparties to fulfil obligations they
\n
have entered into. Failure to collect or late collection of trade receivables could impact negatively on the Group\u2019s eco-
\n
nomic results and financial equilibrium.
\n
The Group\u2019s policy for managing credit risk from commercial activities envisages the preliminary assessment of counter-
\n
parties\u2019 creditworthiness, the management of credit limits and the adoption of risk mitigation instruments, such as the
\n
acquisition of bank guarantees, letters of credit and the external transfer of part of the insolvency risk through a global
\n
program of credit insurance.
\n
The portion of insured receivables, at 31 December 2022, was 64.2% of the total exposure.
\n
In order to mitigate credit risk, the Group has also adopted a policy which defines the strategic guidelines and operating
\n
rules for an effective system to control each company\u2019s credit.
\n
In addition, the policy defines the means for estimating expected losses, in accordance with the means set out hereafter
\n
and taking account of the mitigating factor represented by the aforementioned instruments for insured credit.
\n \n
\n \n
\n \n
\n \n
\n
For trade receivables, the Group uses the \u201c12-month ECL\u201d methodology to determine the lifetime of the expected losses
\n
associated with the probability of default over the next 12 months, using a forward-looking approach. The calculation of
\n
the expected credit loss, which is made on the residual life of the receivables at the date of their recognition in the
\n
financial statements and the subsequent reporting dates, considers a 12-month time horizon, since at the closing date of
\n
the period there was no significant increase in credit risk.
\n
In particular, the Group applies an approach defined as a \u201cprovision matrix\u201d, based on the division of trade receivables
\n
into clusters on the basis of type (ordinary/legal), ageing (past-due ranges) and country rating. For the purposes of deter-
\n
mining expected losses, the Group applies a definition of the default threshold for ordinary receivables of 120 days past
\n
due and 100% for receivables which have moved to legal default, since this is considered an effective indication of the
\n
threshold beyond which the receivable is considered unrecoverable. The calculation of the probability of default is there-
\n
fore based on the effective number of days the payment is overdue. In the same perimeter, for a percentage of 31% in
\n
terms of newly recalculated bad debt fund, the Group is applying a new impairment criteria based on the probability of
\n
default (PD) obtained from external sources and historical loss rates.
\n
As regards the write-off criteria, these are clearly based on the specific statutory and tax rules in force in the various
\n
countries where the Group companies are present.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Maximum risk exposure
\n
The maximum exposure to risk, net of guarantees, at 31 December 2022 was \u20ac 110.3 million. The Group has not identified
\n
any concentration risk on customers and on its trade receivables as the Group has a very diversified customers risk port-
\n
folio without any significant increase in a risky customer share. The Group seeks to mitigate the credit risk by depositing
\n
its liquidity in leading bank and corporate counterparties selected according to their credit quality.
\n
The table below summarises the types of instruments protecting against credit risk used by the Group:
\n
Type
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Receivables under insurance policies
\n
192.4
\n
62.4%
\n
156.6
\n
63.0%
\n
Other
\n
5.7
\n
1.9%
\n
9.6
\n
4.0%
\n
Total insured receivables
\n
198.1
\n
64.2%
\n
166.2
\n
67.0%
\n
Non-insured receivables
\n
103.3
\n
35.8%
\n
82.1
\n
33.0%
\n
Total receivables
\n
308.4
\n
100.0%
\n
248.3
\n
100.0%
\n
\u201cOther\u201d mainly includes receivables insured through letters of credit and bank guarantees.
\n \n
\n \n
\n
Overdue financial assets
\n
The instrument used for the classification and monitoring of credit is ageing, according to which the accounts payables
\n
are divided by their expiry dates, starting from the most recent (1-30 days) to the oldest (beyond 120 days).
\n
The amount of receivables past-due within 60 days is \u20ac 26 million (versus \u20ac 19.6 million at December 2021) whereas the
\n
amount of receivables past-due beyond 60 days is \u20ac 16.2 million (versus \u20ac 13.8 million at December 2021).
\n
For the purposes of representing trade receivables for issued invoices by past-due ranges, the following table is provided:
\n
Overdue ageing
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Overdue 0-30
\n
19.3
\n
5.1%
\n
14.2
\n
6.0%
\n
Overdue 31-60
\n
6.7
\n
2.2%
\n
5.4
\n
2.0%
\n
Overdue 61-120
\n
3.9
\n
1.2%
\n
1.8
\n
1.0%
\n
Due after 120 and legal
\n
12.3
\n
4.0%
\n
12.0
\n
4.0%
\n
The credit policy defines the depreciation grid for the statistical part differentiating percentage by aging and country risk
\n
class where the trade receivable amount is allocated.
\n
The current (not overdue) receivables amounted to \u20ac 266.2 million. Also these amounts are allocated to their country
\n
risk class and subject to depreciation according to the assigned percentage of devaluation. The related provision for bad
\n
debt amounted to \u20ac 3.2 million.
\n
For Companies with a credit insurance contract, percentages applied on the category insured customers will be lower by
\n
60% up to overdue below 180 days, while over 180 days the percentages remain the same.
\n
As at 31 December 2022 the Group did not measure trade receivables at amortized cost because there are no trade
\n
receivables with maturities greater than one year.
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Depreciation grid
\n
Trade receivables aging
\n
Country risk A
\n
Country risk B
\n
Country risk C
\n
Country risk D
\n
Overdue > 360 days
\n
70%
\n
80%
\n
90%
\n
100%
\n
Overdue 271- 360
\n
50%
\n
60%
\n
70%
\n
90%
\n
Overdue 181- 270
\n
35%
\n
40%
\n
50%
\n
70%
\n
Overdue 121-180
\n
20%
\n
25%
\n
35%
\n
50%
\n
Overdue 91-120
\n
12.5%
\n
15%
\n
20%
\n
30%
\n
Overdue 61-90
\n
7.5%
\n
10%
\n
12.5%
\n
20%
\n
Overdue 31-60
\n
2.5%
\n
5%
\n
7.5%
\n
10%
\n
Overdue 0-30
\n
1.25%
\n
1.5%
\n
2.5%
\n
5%
\n
Current (not overdue)
\n
0.5%
\n
0.75%
\n
1%
\n
1.5%
\n
Following is the summary of the specific and simplified ECLs assessments used to determine the bad debt provision:
\n
Analysis of bad debt provision
\n
31.12.2022
\n
31.12.2021
\n
Total receivables
\n
Gross
\n
325.4
\n
267.3
\n
Provision
\n
17.0
\n
19.0
\n
Net
\n
308.4
\n
248.3
\n
Receivables impaired on a specific basis
\n
Gross
\n
5.2
\n
6.7
\n
Provision
\n
4.7
\n
6.0
\n
Net
\n
0.5
\n
0.7
\n
Receivables impaired on a simplified ECLs
\n
Gross
\n
320.2
\n
260.6
\n
Provision
\n
12.3
\n
13.0
\n
Net
\n
307.9
\n
247.6
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n \n
\n
LIQUIDITY RISK
\n
As at 31 December 2022, the Group\u2019s \u201cOverall available liquidity\u201d, defined as the sum of cash and cash equivalents and
\n
the unused portion of committed credit lines (equal to \u20ac 430 million at December month-end) amounted to approxi-
\n
mately \u20ac 1,429 million.
\n
As at 31 December 2022, the Group's overall bank credit lines, including the used and unused credit lines (both committed
\n
and uncommitted) totalled approximately \u20ac1.7 billion, of which approximately 53% was drawn.
\n
The primary sources of liquidity for its business comprise cash generated from operations and bank financing.
\n
The Group periodically assesses its financial needs, in order to act in a timely manner to find the necessary additional
\n
resources and implements actions in response to its findings. The Group seeks to maintain an adequate mix of resources
\n
in terms of maturities, financial instruments and available amounts.
\n
The following table shows the contractual expiry dates for the financial liabilities other than derivatives. These figures are
\n
based on the non-discounted cash flows, including financial charges, as at the next closest date when the Group may be
\n
asked for the payment.
\n
Expiry dates 2022
\n
(in \u20ac million)
\n
< 1
\n
month
\n
2-6
\n
months
\n
6-12
\n
months
\n
1-5
\n
years
\n
> 5
\n
years
\n
Total
\n
Trade payables
\n
121.1
\n
359.9
\n
0.0
\n
0.4
\n
481.4
\n
Financial payables
\n
-
\n
Current financial liabilities
\n
10.7
\n
18.0
\n
20.9
\n
49.6
\n
-
\n
Current loans
\n
4.1
\n
28.6
\n
32.7
\n
-
\n
Non-current financial liabilities
\n
0.0
\n
-
\n
Non-current loans
\n
5.4
\n
5.0
\n
736.4
\n
169.9
\n
916.7
\n
Total financial payables
\n
10.7
\n
27.5
\n
54.5
\n
736.4
\n
169.9
\n
999.0
\n
Expiry dates
\n
131.8
\n
387.4
\n
54.5
\n
736.8
\n
169.9
\n
1,480.4
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
The details for the expiry dates of financial and trade payables as at 31 December 2021 are shown in the table below:
\n
Expiry dates 2021
\n
(in \u20ac million)
\n
< 1
\n
month
\n
2-6
\n
months
\n
6-12
\n
months
\n
1-5
\n
years
\n
> 5
\n
years
\n
Total
\n
Trade payables
\n
120.0
\n
355.8
\n
0.3
\n
1.1
\n
477.2
\n
Financial payables
\n
-
\n
Current financial liabilities
\n
24.2
\n
20.8
\n
1.0
\n
46.1
\n
-
\n
Current loans
\n
2.0
\n
21.1
\n
23.2
\n
-
\n
Non-current financial liabilities
\n
-
\n
Non-current loans
\n
2.4
\n
2.4
\n
257.1
\n
207.8
\n
469.6
\n
Total financial payables
\n
24.2
\n
25.2
\n
24.5
\n
257.1
\n
207.8
\n
538.8
\n
Expiry dates
\n
144.2
\n
381.0
\n
24.8
\n
258.2
\n
207.8
\n
1,016.0
\n
\n \n \n
\n
MARKET RISK
\n
The Group is exposed to several market risks and, in particular, to the possibility that fluctuation in exchange rates, inter-
\n
est rates and commodity prices may affect the value of assets, liabilities and the expected cash flows.
\n
The market risk management policies applied to interest rates, exchange rates and commodities, are centrally defined to
\n
mitigate the above risks in a structured and proactive manner in the advancement of the Group's objectives.
\n
The three types of market risk can be characterized as described here below.
\n
Exchange rate risk
\n
The international context where the Group operates exposes the Group to the risk that changes in exchange rates may
\n
affect its financial results.
\n
The exposure to exchange rate risk determines:
\n
a)
\n
impacts on the operating result due to the different valuation of income and expense in another currency compared
\n
to the time when the price conditions were agreed upon (economic risk);
\n
b)
\n
impacts on the operating result due to the translation of trade or financial receivables/payables denominated in
\n
another currency (transaction risk);
\n
c)
\n
impacts on the consolidated financial statements due to the translation of assets and liabilities held by companies
\n
that prepare their financial statements in a currency other than the euro (translation risk).
\n
The most significant exposure in other currencies of the Group concerns the exchange rate of the euro against the US
\n
dollar, Chinese renminbi, Swiss franc and several other currencies for lower amounts.
\n
The economic risk is hedged through average rate forward financial instruments, i.e. hedging agreements against the
\n
volatility that characterises the currency markets, using as a reference the monthly average exchange rates, and that
\n
allow the Group to achieve the goals set out in its market risk management policy. In order to pursue these goals, the
\n
Group entered into derivatives hedging a set proportion of net exposure in currencies other than the Group's currency.
\n
At each reporting date, the exposure is presented in the financial statements using hedge accounting, which requires
\n
recognising derivatives at their fair value in the statement of financial position. The Group considered it possible to use
\n
hedge accounting since the hedging relationship is effective in accordance with IFRS 9.
\n
In order to minimise the exposure to the transaction risk, the Group uses derivative forward instruments which allow for
\n
protection against revaluations/write-downs at the due date of the credit and debit positions of a financial and commer-
\n
cial nature.
\n
The Group does not hedge the translation risk except for any distribution of intergroup dividends.
\n
As at the reporting date, the notional amount of forward currency contracts (sale and purchase) entered into by the
\n
Group, can be summarised as follows:
\n
\n \n
\n \n
\n \n
\n \n
\n
(in \u20ac million)
\n
Notional amount in
\n
Currency
\n
Notional amount in \u20ac
\n
CHF
\n
91.8
\n
93.2
\n
GBP
\n
10.8
\n
12.1
\n
AUD
\n
0.3
\n
0.2
\n
CNY
\n
-276.0
\n
-37.5
\n
USD
\n
44.1
\n
41.3
\n
At the same date, the fair value of the foreign exchange derivatives was overall negative, standing at \u20ac 2.0 million.
\n
In relation to exchange rate risk, the Group performed sensitivity analysis to measure how exchange rates fluctuations
\n
against the euro may affect pre-tax profitability. The sensitivity analysis was performed on the currencies to which the
\n
Group is exposed. The hypothesised scenario envisages a general variation in exchange rates of 2% and the following
\n
table shows the sensitivity, while keeping all the other variables fixed, in terms of the profit before tax and equity, gross
\n
of the tax effect:
\n
(in \u20ac million)
\n
Effect on profit
\n
before tax
\n
Effect on equity
\n
31.12.2022
\n
Foreign currency revaluation
\n
1.8
\n
1.8
\n
Foreign currency devaluation
\n
-1.8
\n
-1.8
\n
Commodity price fluctuation risk
\n
Profit and loss are affected by the performance of prices of raw materials, in particular as regards non-ferrous metals
\n
such as copper, nickel and aluminium, as well as precious metals like silver, which represent one of the primary compo-
\n
nents of the majority of products traded by the Group.
\n
For hedging purposes against the risk of fluctuating prices for copper, silver and nickel, the Group provided, through the
\n
parent company Ariston Holding N.V., for the necessary hedging measures in line with the procedures already adopted
\n
in the previous years aimed at reducing the impact of price volatility in purchases over coming years.
\n
Thus, the Group partly hedged purchases also for the years 2022, 2023 and 2024.
\n
In order to achieve the goals set out in the market risk management policy, the Group entered into derivatives hedging a
\n
set proportion of raw material purchases. At each reporting date, the exposure is presented in the financial statements
\n
using hedge accounting, which requires recognising derivatives at their fair value in the statement of financial position.
\n
The Group considered it possible to use hedge accounting since the hedging relationship is effective in accordance with
\n
IFRS 9.
\n
When these instruments no longer qualify for hedge accounting, they are recognised as trading instruments.
\n
At the reporting date, the notional amount of forward commodity contracts entered into by the Group, can be summa-
\n
rised as follows:
\n
Commodity
\n
Financial
\n
instruments
\n
Quantity/ton
\n
Total price
\n
(in \u20ac million)
\n
Copper
\n
Forward
\n
2,220.0
\n
18.0
\n
Nickel
\n
Average Forward
\n
26.0
\n
0.6
\n
Silver
\n
Average Forward
\n
2.4
\n
1.5
\n
Aluminium
\n
Forward
\n
1,265.0
\n
3.1
\n
Steel
\n
Average Forward
\n
6,600.0
\n
5.2
\n
At the same date, the fair value measurement of the derivatives on commodities showed a net negative amount of \u20ac 0.6
\n
million.
\n
Derivatives contracts entered into and closed during the year realized a positive result amounting to approximately \u20ac 0.3
\n
million which impacted the purchase cost of commodities.
\n
\n \n
\n \n
\n \n
\n
Interest rate risk
\n
Interest rate risk refers to the possible impact on the income statement deriving from fluctuations in the interest rates
\n
applied to the Group\u2019s loans.
\n
The amount of the Group\u2019s variable rate debt exposure, not hedged against interest rate risk, represents the main ele-
\n
ment of risk for the negative impact from an increase in market interest rates. The interest rate risk to which the Group
\n
is exposed originates primarily from bank financing.
\n
The Group's policy for managing this risk seeks to strike a balance between fixed and variable rate debts, taking into
\n
account the maturity profile, the short-term market outlook and with the purpose of containing funding costs.
\n
As at 31 December 2022, the Group had, for hedging purposes, interest rate swap (IRS) transactions for a total notional
\n
amount of \u20ac 418.4 million.
\n
At the same date, 51% of bank financing was hedged and 49% was at a variable rate, consistent with the Group policy.
\n
The sensitivity analysis of interest rate risk is conducted under the delta margin approach and is aimed at measuring how
\n
a given change in interest rates would affect financial expense associated with variable rate debt over the next 12 months.
\n
The sensitivity of the interest spread, assuming a generalised +/- 50 basis point change in interest rates, amounted to \u20ac
\n
+2.0 million and \u20ac -2.0 million, respectively, at the end of December 2022.
\n
\n \n \n
\n \n
\n
HEDGING INSTRUMENTS
\n
In summary, at 31 December 2022, the following financial hedging instruments are in place:
\n
\u2022
\n
against exchange rates \u2013 Swiss franc, British pound sterling, US dollar and Chinese renminbi;
\n
\u2022
\n
against commodities \u2013 copper, nickel, silver, aluminium and steel;
\n
\u2022
\n
against interest rates \u2013 medium/long-term floating rate loans.
\n
The hedging instruments applied to exchange rates were set up in order to reduce the Group\u2019s economic and transac-
\n
tional risk, and they meet all the formal requirements set out in the IAS/IFRSs and are therefore recognised in hedge
\n
accounting.
\n
The following table shows the details of hedging instruments in use as at 31 December 2022. The amounts are expressed
\n
in millions of euro:
\n
Hedging instruments
\n
31.12.2022
\n
(in \u20ac million)
\n
Nature of
\n
risk
\n
covered
\n
Fair value
\n
31.12.2022
\n
Non-current
\n
financial
\n
assets
\n
Current
\n
financial
\n
assets
\n
Non-
\n
current
\n
financial
\n
liabili-
\n
ties
\n
Current fi-
\n
nancial
\n
liabilities
\n
Total
\n
Interest Rate Swap
\n
Interest
\n
rate
\n
32.5
\n
32.5
\n
32.5
\n
Average Forward
\n
FX
\n
-2.0
\n
1.5
\n
-3.5
\n
-2.0
\n
Forward
\n
Commodity
\n
-1.1
\n
0.2
\n
-1.3
\n
-1.1
\n
Average Forward
\n
Commodity
\n
0.5
\n
0.5
\n
0.0
\n
0.5
\n
Hedging instruments
\n
30.0
\n
34.8
\n
-4.8
\n
30.0
\n
The following table shows the details of hedging instruments in use as at 31 December 2022. The amounts are expressed
\n
in millions of euro:
\n
Hedging instruments
\n
31.12.2021
\n
(in \u20ac million)
\n
Nature of
\n
risk covered
\n
Fair value
\n
31.12.2021
\n
Non-current
\n
financial
\n
assets
\n
Current
\n
financial
\n
assets
\n
Non-cur-
\n
rent
\n
financial
\n
liabilities
\n
Current
\n
financial
\n
liabilities
\n
Total
\n
Interest Rate Swap
\n
Interest rate
\n
-1.2
\n
-1.2
\n
-1.2
\n
Average Forward
\n
FX
\n
-1.2
\n
-1.2
\n
-1.2
\n
Forward
\n
Commodity
\n
0.8
\n
0.8
\n
0.8
\n
Average Forward
\n
Commodity
\n
-0.1
\n
-0.1
\n
-0.1
\n
Hedging instruments
\n
-1.7
\n
-1.2
\n
-0.5
\n
-1.7
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
Credit risk is the Group\u2019s exposure to potential losses from failure by commercial counterparties to fulfil obligations they
\n
have entered into. Failure to collect or late collection of trade receivables could impact negatively on the Group\u2019s eco-
\n
nomic results and financial equilibrium.
\n
The Group\u2019s policy for managing credit risk from commercial activities envisages the preliminary assessment of counter-
\n
parties\u2019 creditworthiness, the management of credit limits and the adoption of risk mitigation instruments, such as the
\n
acquisition of bank guarantees, letters of credit and the external transfer of part of the insolvency risk through a global
\n
program of credit insurance.
\n
The portion of insured receivables, at 31 December 2022, was 64.2% of the total exposure.
\n
In order to mitigate credit risk, the Group has also adopted a policy which defines the strategic guidelines and operating
\n
rules for an effective system to control each company\u2019s credit.
\n
In addition, the policy defines the means for estimating expected losses, in accordance with the means set out hereafter
\n
and taking account of the mitigating factor represented by the aforementioned instruments for insured credit.
\n \n
\n \n
\n \n
\n \n
\n
For trade receivables, the Group uses the \u201c12-month ECL\u201d methodology to determine the lifetime of the expected losses
\n
associated with the probability of default over the next 12 months, using a forward-looking approach. The calculation of
\n
the expected credit loss, which is made on the residual life of the receivables at the date of their recognition in the
\n
financial statements and the subsequent reporting dates, considers a 12-month time horizon, since at the closing date of
\n
the period there was no significant increase in credit risk.
\n
In particular, the Group applies an approach defined as a \u201cprovision matrix\u201d, based on the division of trade receivables
\n
into clusters on the basis of type (ordinary/legal), ageing (past-due ranges) and country rating. For the purposes of deter-
\n
mining expected losses, the Group applies a definition of the default threshold for ordinary receivables of 120 days past
\n
due and 100% for receivables which have moved to legal default, since this is considered an effective indication of the
\n
threshold beyond which the receivable is considered unrecoverable. The calculation of the probability of default is there-
\n
fore based on the effective number of days the payment is overdue. In the same perimeter, for a percentage of 31% in
\n
terms of newly recalculated bad debt fund, the Group is applying a new impairment criteria based on the probability of
\n
default (PD) obtained from external sources and historical loss rates.
\n
As regards the write-off criteria, these are clearly based on the specific statutory and tax rules in force in the various
\n
countries where the Group companies are present.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Maximum risk exposure
\n
The maximum exposure to risk, net of guarantees, at 31 December 2022 was \u20ac 110.3 million. The Group has not identified
\n
any concentration risk on customers and on its trade receivables as the Group has a very diversified customers risk port-
\n
folio without any significant increase in a risky customer share. The Group seeks to mitigate the credit risk by depositing
\n
its liquidity in leading bank and corporate counterparties selected according to their credit quality.
\n
The table below summarises the types of instruments protecting against credit risk used by the Group:
\n
Type
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Receivables under insurance policies
\n
192.4
\n
62.4%
\n
156.6
\n
63.0%
\n
Other
\n
5.7
\n
1.9%
\n
9.6
\n
4.0%
\n
Total insured receivables
\n
198.1
\n
64.2%
\n
166.2
\n
67.0%
\n
Non-insured receivables
\n
103.3
\n
35.8%
\n
82.1
\n
33.0%
\n
Total receivables
\n
308.4
\n
100.0%
\n
248.3
\n
100.0%
\n
\u201cOther\u201d mainly includes receivables insured through letters of credit and bank guarantees.
\n \n
\n \n
\n
Overdue financial assets
\n
The instrument used for the classification and monitoring of credit is ageing, according to which the accounts payables
\n
are divided by their expiry dates, starting from the most recent (1-30 days) to the oldest (beyond 120 days).
\n
The amount of receivables past-due within 60 days is \u20ac 26 million (versus \u20ac 19.6 million at December 2021) whereas the
\n
amount of receivables past-due beyond 60 days is \u20ac 16.2 million (versus \u20ac 13.8 million at December 2021).
\n
For the purposes of representing trade receivables for issued invoices by past-due ranges, the following table is provided:
\n
Overdue ageing
\n
(in \u20ac million)
\n
31.12.2022
\n
%
\n
31.12.2021
\n
%
\n
Overdue 0-30
\n
19.3
\n
5.1%
\n
14.2
\n
6.0%
\n
Overdue 31-60
\n
6.7
\n
2.2%
\n
5.4
\n
2.0%
\n
Overdue 61-120
\n
3.9
\n
1.2%
\n
1.8
\n
1.0%
\n
Due after 120 and legal
\n
12.3
\n
4.0%
\n
12.0
\n
4.0%
\n
The credit policy defines the depreciation grid for the statistical part differentiating percentage by aging and country risk
\n
class where the trade receivable amount is allocated.
\n
The current (not overdue) receivables amounted to \u20ac 266.2 million. Also these amounts are allocated to their country
\n
risk class and subject to depreciation according to the assigned percentage of devaluation. The related provision for bad
\n
debt amounted to \u20ac 3.2 million.
\n
For Companies with a credit insurance contract, percentages applied on the category insured customers will be lower by
\n
60% up to overdue below 180 days, while over 180 days the percentages remain the same.
\n
As at 31 December 2022 the Group did not measure trade receivables at amortized cost because there are no trade
\n
receivables with maturities greater than one year.
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Method used to calculate the bad debt provision
\n
The allocation for the provision is made on the basis of both analytical and generic assessments, as set out below:
\n
Specific write-off: the receivables in litigation or past-due for longer than one year or transferred to an external collection
\n
agency are subject to a specific impairment loss according to the progress of their recovery and the information provided
\n
by the attorneys.
\n
Simplified IFRS 9 model: for receivables that are past-due within the year, assessments are applied based on historic
\n
analyses in relation to the ageing of the receivables, in some cases up to customer level, and the risk grade of each
\n
individual country, market and type of customer. Here below the percentage used for the simplified IFRS 9 (ECL).
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
Depreciation grid
\n
Trade receivables aging
\n
Country risk A
\n
Country risk B
\n
Country risk C
\n
Country risk D
\n
Overdue > 360 days
\n
70%
\n
80%
\n
90%
\n
100%
\n
Overdue 271- 360
\n
50%
\n
60%
\n
70%
\n
90%
\n
Overdue 181- 270
\n
35%
\n
40%
\n
50%
\n
70%
\n
Overdue 121-180
\n
20%
\n
25%
\n
35%
\n
50%
\n
Overdue 91-120
\n
12.5%
\n
15%
\n
20%
\n
30%
\n
Overdue 61-90
\n
7.5%
\n
10%
\n
12.5%
\n
20%
\n
Overdue 31-60
\n
2.5%
\n
5%
\n
7.5%
\n
10%
\n
Overdue 0-30
\n
1.25%
\n
1.5%
\n
2.5%
\n
5%
\n
Current (not overdue)
\n
0.5%
\n
0.75%
\n
1%
\n
1.5%
\n
Following is the summary of the specific and simplified ECLs assessments used to determine the bad debt provision:
\n
Analysis of bad debt provision
\n
31.12.2022
\n
31.12.2021
\n
Total receivables
\n
Gross
\n
325.4
\n
267.3
\n
Provision
\n
17.0
\n
19.0
\n
Net
\n
308.4
\n
248.3
\n
Receivables impaired on a specific basis
\n
Gross
\n
5.2
\n
6.7
\n
Provision
\n
4.7
\n
6.0
\n
Net
\n
0.5
\n
0.7
\n
Receivables impaired on a simplified ECLs
\n
Gross
\n
320.2
\n
260.6
\n
Provision
\n
12.3
\n
13.0
\n
Net
\n
307.9
\n
247.6
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
LIQUIDITY RISK
\n
As at 31 December 2022, the Group\u2019s \u201cOverall available liquidity\u201d, defined as the sum of cash and cash equivalents and
\n
the unused portion of committed credit lines (equal to \u20ac 430 million at December month-end) amounted to approxi-
\n
mately \u20ac 1,429 million.
\n
As at 31 December 2022, the Group's overall bank credit lines, including the used and unused credit lines (both committed
\n
and uncommitted) totalled approximately \u20ac1.7 billion, of which approximately 53% was drawn.
\n
The primary sources of liquidity for its business comprise cash generated from operations and bank financing.
\n
The Group periodically assesses its financial needs, in order to act in a timely manner to find the necessary additional
\n
resources and implements actions in response to its findings. The Group seeks to maintain an adequate mix of resources
\n
in terms of maturities, financial instruments and available amounts.
\n
The following table shows the contractual expiry dates for the financial liabilities other than derivatives. These figures are
\n
based on the non-discounted cash flows, including financial charges, as at the next closest date when the Group may be
\n
asked for the payment.
\n
Expiry dates 2022
\n
(in \u20ac million)
\n
< 1
\n
month
\n
2-6
\n
months
\n
6-12
\n
months
\n
1-5
\n
years
\n
> 5
\n
years
\n
Total
\n
Trade payables
\n
121.1
\n
359.9
\n
0.0
\n
0.4
\n
481.4
\n
Financial payables
\n
-
\n
Current financial liabilities
\n
10.7
\n
18.0
\n
20.9
\n
49.6
\n
-
\n
Current loans
\n
4.1
\n
28.6
\n
32.7
\n
-
\n
Non-current financial liabilities
\n
0.0
\n
-
\n
Non-current loans
\n
5.4
\n
5.0
\n
736.4
\n
169.9
\n
916.7
\n
Total financial payables
\n
10.7
\n
27.5
\n
54.5
\n
736.4
\n
169.9
\n
999.0
\n
Expiry dates
\n
131.8
\n
387.4
\n
54.5
\n
736.8
\n
169.9
\n
1,480.4
\n
\n
The details for the expiry dates of financial and trade payables as at 31 December 2021 are shown in the table below:
\n
Expiry dates 2021
\n
(in \u20ac million)
\n
< 1
\n
month
\n
2-6
\n
months
\n
6-12
\n
months
\n
1-5
\n
years
\n
> 5
\n
years
\n
Total
\n
Trade payables
\n
120.0
\n
355.8
\n
0.3
\n
1.1
\n
477.2
\n
Financial payables
\n
-
\n
Current financial liabilities
\n
24.2
\n
20.8
\n
1.0
\n
46.1
\n
-
\n
Current loans
\n
2.0
\n
21.1
\n
23.2
\n
-
\n
Non-current financial liabilities
\n
-
\n
Non-current loans
\n
2.4
\n
2.4
\n
257.1
\n
207.8
\n
469.6
\n
Total financial payables
\n
24.2
\n
25.2
\n
24.5
\n
257.1
\n
207.8
\n
538.8
\n
Expiry dates
\n
144.2
\n
381.0
\n
24.8
\n
258.2
\n
207.8
\n
1,016.0
\n
\n
MARKET RISK
\n
The Group is exposed to several market risks and, in particular, to the possibility that fluctuation in exchange rates, inter-
\n
est rates and commodity prices may affect the value of assets, liabilities and the expected cash flows.
\n
The market risk management policies applied to interest rates, exchange rates and commodities, are centrally defined to
\n
mitigate the above risks in a structured and proactive manner in the advancement of the Group's objectives.
\n
The three types of market risk can be characterized as described here below.
\n
Exchange rate risk
\n
The international context where the Group operates exposes the Group to the risk that changes in exchange rates may
\n
affect its financial results.
\n
The exposure to exchange rate risk determines:
\n
a)
\n
impacts on the operating result due to the different valuation of income and expense in another currency compared
\n
to the time when the price conditions were agreed upon (economic risk);
\n
b)
\n
impacts on the operating result due to the translation of trade or financial receivables/payables denominated in
\n
another currency (transaction risk);
\n
c)
\n
impacts on the consolidated financial statements due to the translation of assets and liabilities held by companies
\n
that prepare their financial statements in a currency other than the euro (translation risk).
\n
The most significant exposure in other currencies of the Group concerns the exchange rate of the euro against the US
\n
dollar, Chinese renminbi, Swiss franc and several other currencies for lower amounts.
\n
The economic risk is hedged through average rate forward financial instruments, i.e. hedging agreements against the
\n
volatility that characterises the currency markets, using as a reference the monthly average exchange rates, and that
\n
allow the Group to achieve the goals set out in its market risk management policy. In order to pursue these goals, the
\n
Group entered into derivatives hedging a set proportion of net exposure in currencies other than the Group's currency.
\n
At each reporting date, the exposure is presented in the financial statements using hedge accounting, which requires
\n
recognising derivatives at their fair value in the statement of financial position. The Group considered it possible to use
\n
hedge accounting since the hedging relationship is effective in accordance with IFRS 9.
\n
In order to minimise the exposure to the transaction risk, the Group uses derivative forward instruments which allow for
\n
protection against revaluations/write-downs at the due date of the credit and debit positions of a financial and commer-
\n
cial nature.
\n
The Group does not hedge the translation risk except for any distribution of intergroup dividends.
\n
As at the reporting date, the notional amount of forward currency contracts (sale and purchase) entered into by the
\n
Group, can be summarised as follows:
\n
\n \n
\n \n
\n \n
\n
(in \u20ac million)
\n
Notional amount in
\n
Currency
\n
Notional amount in \u20ac
\n
CHF
\n
91.8
\n
93.2
\n
GBP
\n
10.8
\n
12.1
\n
AUD
\n
0.3
\n
0.2
\n
CNY
\n
-276.0
\n
-37.5
\n
USD
\n
44.1
\n
41.3
\n
At the same date, the fair value of the foreign exchange derivatives was overall negative, standing at \u20ac 2.0 million.
\n
In relation to exchange rate risk, the Group performed sensitivity analysis to measure how exchange rates fluctuations
\n
against the euro may affect pre-tax profitability. The sensitivity analysis was performed on the currencies to which the
\n
Group is exposed. The hypothesised scenario envisages a general variation in exchange rates of 2% and the following
\n
table shows the sensitivity, while keeping all the other variables fixed, in terms of the profit before tax and equity, gross
\n
of the tax effect:
\n
(in \u20ac million)
\n
Effect on profit
\n
before tax
\n
Effect on equity
\n
31.12.2022
\n
Foreign currency revaluation
\n
1.8
\n
1.8
\n
Foreign currency devaluation
\n
-1.8
\n
-1.8
\n
Commodity price fluctuation risk
\n
Profit and loss are affected by the performance of prices of raw materials, in particular as regards non-ferrous metals
\n
such as copper, nickel and aluminium, as well as precious metals like silver, which represent one of the primary compo-
\n
nents of the majority of products traded by the Group.
\n
For hedging purposes against the risk of fluctuating prices for copper, silver and nickel, the Group provided, through the
\n
parent company Ariston Holding N.V., for the necessary hedging measures in line with the procedures already adopted
\n
in the previous years aimed at reducing the impact of price volatility in purchases over coming years.
\n
Thus, the Group partly hedged purchases also for the years 2022, 2023 and 2024.
\n
In order to achieve the goals set out in the market risk management policy, the Group entered into derivatives hedging a
\n
set proportion of raw material purchases. At each reporting date, the exposure is presented in the financial statements
\n
using hedge accounting, which requires recognising derivatives at their fair value in the statement of financial position.
\n
The Group considered it possible to use hedge accounting since the hedging relationship is effective in accordance with
\n
IFRS 9.
\n
When these instruments no longer qualify for hedge accounting, they are recognised as trading instruments.
\n
At the reporting date, the notional amount of forward commodity contracts entered into by the Group, can be summa-
\n
rised as follows:
\n
Commodity
\n
Financial
\n
instruments
\n
Quantity/ton
\n
Total price
\n
(in \u20ac million)
\n
Copper
\n
Forward
\n
2,220.0
\n
18.0
\n
Nickel
\n
Average Forward
\n
26.0
\n
0.6
\n
Silver
\n
Average Forward
\n
2.4
\n
1.5
\n
Aluminium
\n
Forward
\n
1,265.0
\n
3.1
\n
Steel
\n
Average Forward
\n
6,600.0
\n
5.2
\n
At the same date, the fair value measurement of the derivatives on commodities showed a net negative amount of \u20ac 0.6
\n
million.
\n
Derivatives contracts entered into and closed during the year realized a positive result amounting to approximately \u20ac 0.3
\n
million which impacted the purchase cost of commodities.
\n
\n \n
\n \n
\n \n
\n
Interest rate risk
\n
Interest rate risk refers to the possible impact on the income statement deriving from fluctuations in the interest rates
\n
applied to the Group\u2019s loans.
\n
The amount of the Group\u2019s variable rate debt exposure, not hedged against interest rate risk, represents the main ele-
\n
ment of risk for the negative impact from an increase in market interest rates. The interest rate risk to which the Group
\n
is exposed originates primarily from bank financing.
\n
The Group's policy for managing this risk seeks to strike a balance between fixed and variable rate debts, taking into
\n
account the maturity profile, the short-term market outlook and with the purpose of containing funding costs.
\n
As at 31 December 2022, the Group had, for hedging purposes, interest rate swap (IRS) transactions for a total notional
\n
amount of \u20ac 418.4 million.
\n
At the same date, 51% of bank financing was hedged and 49% was at a variable rate, consistent with the Group policy.
\n
The sensitivity analysis of interest rate risk is conducted under the delta margin approach and is aimed at measuring how
\n
a given change in interest rates would affect financial expense associated with variable rate debt over the next 12 months.
\n
The sensitivity of the interest spread, assuming a generalised +/- 50 basis point change in interest rates, amounted to \u20ac
\n
+2.0 million and \u20ac -2.0 million, respectively, at the end of December 2022.
\n
\n
AUDIT FEES
\n
The fees for services provided by the Company\u2019s independent auditors, Ernst & Young Accountants LLP, and its
\n
member firms and/or affiliates, to the Company and its subsidiaries are broken down as follows:
\n
Audit fee
\n
31.12.2022
\n
31.12.2021
\n
(in \u20ac million)
\n
Audit fees
\n
1.6
\n
1.8
\n
Other non-audit services
\n
0.4
\n
3.0
\n
Total
\n
2.0
\n
4.8
\n
The fees for audit services provided in 2022 by Ernst & Young Accountants LLP are equal to \u20ac 0.3 million (\u20ac 0.1 million in
\n
2021).
\n
The fees for non-audit services provided in 2022 by Ernst & Young Accountants LLP are equal to \u20ac 0.1 million (\u20ac 0.1 million
\n
in 2021).
\n
\n
EVENTS AFTER THE REPORTING PERIOD
\n
On 2 January 2023, Ariston announced the completion of the acquisition of Centrotec Climate Systems GmbH (CCS) after
\n
all closing conditions were met, including the clearance granted by the competent merger-control authorities of Ger-
\n
many, the Netherlands and Austria.
\n
Ariston Holding N.V. purchased 100% of both ownership and voting rights CCS from its parent company, Centrotec SE,
\n
for \u20ac 635.1 million in cash and approximately 41.42 million Ariston\u2019s shares.
\n
Via its renowned brands Wolf, Brink, Pro-Klima and Ned Air, CCS is a leading player in the supply of heating, ventilation,
\n
air-handling and combined heat & power solutions, with ca. 2,500 people employed and a well-established presence in
\n
Germany, in the Netherlands and a solid exposure to many other European markets. The manufacturing base is mainly
\n
located in Germany, the Netherlands and Croatia. Revenues were \u20ac 599 million in 2021 with an EBITDA adjusted of \u20ac 84.8
\n
million and a robust growth in revenues and profitability in the last years: top line grew at a +11.2% CAGR between 2018
\n
and 2021, and by 16% YoY in H1 2022.
\n
At the date of the approval of this Annual Report 2022, the accounting of the business combination of CCS is not yet
\n
complete given that the Consolidated Financial Statements as at 31 December 2022 of CCS, at the moment of writing,
\n
has not yet been approved by its Board of Directors. For the initial accounting and opening balances of the business
\n
combination, Ariston Group will consider the figures from the Consolidated Financial Statements as at 31 December 2022
\n
given that the Closing Date of the acquisition of Centrotec group is 2 January 2023. No significant variations between the
\n
figures of Centrotec group as at 31 December 2022 and 2 January 2023 have been occurred at the date of the approval
\n
of this Annual Report 2022.
\n
According to IFRS 3, paragraph 64B, the Group disclosed the information for points from a) to e). The other financial
\n
information, from f) onward, is not available.
\n
For the reason explained above, Ariston will start to consolidate CCS in 2023 given that the control of assets has been
\n
obtained after the closing date (2 January 2023) and the business combination will be accounted accordingly in 2023 in
\n
line the standard IFRS 3.
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
LIST OF COMPANIES AT 31 DECEMBER 2022
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Ariston Holding N.V.
\n
Netherlands
\n
EUR
\n
46,061,835.32
\n
TC
\n
parent
\n
company
\n
2
\n
AR1 S.r.l.
\n
Italy
\n
EUR
\n
200,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
3
\n
Ariston Benelux S.A./N.V.
\n
Belgium
\n
EUR
\n
15,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
4
\n
Ariston Deutschland GmbH
\n
Germany
\n
EUR
\n
255,700
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
5
\n
Ariston Egypt LLC
\n
Egypt
\n
EGP
\n
10,900,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
6
\n
Ariston France sas
\n
France
\n
EUR
\n
54,682,110
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Elco International GmbH
\n
0.01
\n
7
\n
Ariston Heating Technology
\n
Nigeria Ltd
\n
Nigeria
\n
NGN
\n
10,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
8
\n
Ariston Holding Egypt LLC
\n
Egypt
\n
EGP
\n
100,000
\n
TC
\n
100.00
\n
ATAG Heating B.V.
\n
99.00
\n
Ariston Holding N.V.
\n
0.01
\n
9
\n
Ariston Hung\u00e1ria kft
\n
Hungary
\n
HUF
\n
131,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
10
\n
Ariston Iberica S.L.
\n
Spain
\n
EUR
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
11
\n
Ariston Kazakhstan LLP
\n
Kazakhstan
\n
KZT
\n
212,100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
12
\n
Ariston Polska Sp. z o.o.
\n
Poland
\n
PLN
\n
12,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
13
\n
Ariston Pte Ltd
\n
Singapore
\n
SGD
\n
100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
14
\n
Ariston S.p.A.
\n
Italy
\n
EUR
\n
30,100,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
15
\n
Ariston Sales Mexico S.A. de
\n
C.V.
\n
Mexico
\n
MXN
\n
302,188,920
\n
TC
\n
100.00
\n
Ariston Thermo Mexico
\n
S.A. de C.V
\n
0.03
\n
Calentadores de America
\n
S.A. de C.V.
\n
99.97
\n
16
\n
Ariston South Africa (Pty) Ltd
\n
South Africa
\n
ZAR
\n
100
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
17
\n
Ariston
\n
Thermo (China) Co.,
\n
Ltd
\n
China
\n
CNY
\n
145,885,010
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
18
\n
Ariston Thermo Argentina
\n
S.r.l.
\n
Argentina
\n
ARS
\n
16,705,269
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.63
\n
Thermowatt S.p.A.
\n
0.37
\n
19
\n
Ariston Thermo Croatia Ltd
\n
Croatia
\n
HRK
\n
800,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
20
\n
Ariston Thermo CZ sro
\n
Czech Republic
\n
CZK
\n
30,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
21
\n
Ariston Thermo Gulf Water
\n
Heating LLC
\n
UAE
\n
AED
\n
400,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
49.00
\n
Third parties
\n
51.00
\n
22
\n
Ariston Thermo Holding USA
\n
LLC
\n
USA
\n
USD
\n
63,037,687
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
23
\n
Ariston Thermo India Private
\n
Ltd
\n
India
\n
INR
\n
220,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
24
\n
Ariston Thermo Industrial Vi-
\n
etnam Ltd
\n
Vietnam
\n
VND
\n
41,600,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
25
\n
Ariston Thermo Isitma ve So-
\n
gutma Sistemleri Ithalat,
\n
Ihracat ve Dagitim Ltd Sirketi
\n
Turkey
\n
TRY
\n
66,157,500
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
26
\n
Ariston Thermo Maroc sa
\n
Morocco
\n
MAD
\n
3,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
27
\n
Ariston Thermo MEA SPC
\n
Bahrain
\n
USD
\n
12,338,306
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
28
\n
Ariston Thermo Mexico S.A.
\n
de C.V
\n
Mexico
\n
MXN
\n
2,350,000,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
99.99
\n
Ariston Thermo Holding
\n
USA LLC
\n
0.01
\n
29
\n
Ariston Thermo Parts & Ser-
\n
vices S.A.
\n
Switzerland
\n
EUR
\n
940.551
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
30
\n
Ariston Thermo Romania
\n
S.r.l.
\n
Romania
\n
RON
\n
29,041,740
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
31
\n
Ariston Thermo Rus LLC
\n
Russia
\n
RUB
\n
1,403,787,727
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
32
\n
Ariston Thermo Tunisie SA
\n
Tunisia
\n
EUR
\n
500,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
66.70
\n
Third parties
\n
33.30
\n
33
\n
Ariston Thermo UK Ltd
\n
UK
\n
GBP
\n
7,500,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
34
\n
Ariston Thermo USA LLC
\n
USA
\n
USD
\n
10,275,184
\n
TC
\n
100.00
\n
Ariston Thermo Holding
\n
USA LLC
\n
100.00
\n
35
\n
Ariston Thermo Vietnam Ltd
\n
Vietnam
\n
VND
\n
31,471,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
36
\n
Ariston Ukraine LLC
\n
Ukraine
\n
UAH
\n
38,705,753
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
37
\n
Atag Construction B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
38
\n
Atag Electronics
\n
B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
39
\n
Atag Engineering B.V.
\n
Netherlands
\n
EUR
\n
1
\n
TC
\n
100.00
\n
Atag Verwarming Neder-
\n
land B.V.
\n
100.00
\n
40
\n
Atag Heating
\n
B.V.
\n
Netherlands
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
41
\n
Atag Heizungstechnik Gmbh
\n
Germany
\n
EUR
\n
512,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
42
\n
Atag Verwarming Belgie
\n
B.V.BA
\n
Belgium
\n
EUR
\n
18,600
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
43
\n
Atag Verwarming Nederland
\n
B.V.
\n
Netherlands
\n
EUR
\n
18,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
100.00
\n
44
\n
ATM1 HR S.A. de C.V.
\n
Mexico
\n
MXN
\n
50,000
\n
TC
\n
100.00
\n
Atag Heating B.V.
\n
99.99
\n
Elcotherm AG
\n
0.01
\n
45
\n
Atmor (Dongguan) Electronic
\n
Technology Co. Ltd
\n
China
\n
USD
\n
1,000,000
\n
TC
\n
100.00
\n
Atmor Electronic Tech-
\n
nology Company Ltd
\n
100.00
\n
46
\n
Atmor Electronic Technology
\n
Company Ltd
\n
Hong Kong
\n
HKD
\n
10,000
\n
TC
\n
100.00
\n
Atmor Industries LTD
\n
100.00
\n
47
\n
Atmor Industries Ltd
\n
Israel
\n
USD
\n
1,790,409
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
48
\n
BCE S.r.l.
\n
Italy
\n
EUR
\n
10,400
\n
BUR
\n
100.00
\n
Ecoflam Bruciatori S.p.A.
\n
100.00
\n
49
\n
Calentadores de America S.A.
\n
de C.V.
\n
Mexico
\n
MXN
\n
1,226,593,637
\n
TC
\n
100.00
\n
Ariston
\n
Thermo Mexico
\n
S.A. de C.V
\n
99.99
\n
Atag Heating B.V.
\n
0.01
\n
50
\n
Chromagen Australia PTY LTD
\n
Australia
\n
AUD
\n
10,358,995
\n
TC
\n
100.00
\n
Elcotherm AG
\n
51.00
\n
Third parties
\n
49.00
\n
51
\n
Chromagen Israel Ltd
\n
Israel
\n
ILS
\n
10.901
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
52
\n
Cuenod sas
\n
France
\n
EUR
\n
15,422,390
\n
BUR
\n
100.00
\n
Ariston France sas
\n
100.00
\n
53
\n
Domotec AG
\n
Switzerland
\n
CHF
\n
50,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
54
\n
Ecoflam Bruciatori S.p.A.
\n
Italy
\n
EUR
\n
3,690,000
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
55
\n
Elco Austria GmbH
\n
Austria
\n
EUR
\n
35,000
\n
TC
\n
100.00
\n
Elcotherm AG
\n
100.00
\n
56
\n
Elco B.V.
\n
Netherlands
\n
EUR
\n
2,046,004
\n
TC
\n
100.00
\n
Elco Burners B.V.
\n
100.00
\n
57
\n
Elco Belgium N.V./S.A.
\n
Belgium
\n
EUR
\n
2,650,000
\n
TC
\n
100.00
\n
Ariston Benelux S.A.
\n
99.99
\n
Elco B.V.
\n
0.01
\n
58
\n
Elco Burners B.V.
\n
Netherlands
\n
EUR
\n
22.734
\n
BUR
\n
100.00
\n
Ariston Benelux S.A.
\n
100.00
\n
59
\n
Elco Burners GmbH
\n
Germany
\n
EUR
\n
25,000
\n
BUR
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
60
\n
Elco GmbH
\n
Germany
\n
EUR
\n
50,000
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
61
\n
Elco Heating Solutions Limi-
\n
ted
\n
UK
\n
GBP
\n
3,001,750
\n
TC
\n
100.00
\n
Ariston Themo UK Ltd
\n
100.00
\n
62
\n
Elco International GmbH
\n
Germany
\n
EUR
\n
8,691,962
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
63
\n
Elco Italia S.p.A.
\n
Italy
\n
EUR
\n
3,500,000
\n
TC
\n
100.00
\n
Ariston S.p.A.
\n
100.00
\n
64
\n
Elcotherm AG
\n
Switzerland
\n
CHF
\n
1,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
65
\n
Gastech-Energi A/S
\n
Denmark
\n
DKK
\n
7,554,935
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
66
\n
Ingrado S.r.l.
\n
Italy
\n
EUR
\n
10,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
67
\n
Kesselheld Gmbh
\n
Germany
\n
EUR
\n
83,333
\n
TC
\n
100.00
\n
Elco International GmbH
\n
100.00
\n
68
\n
NTI Boilers Inc
\n
Canada
\n
CAD
\n
43,000,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n \n
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct
\n
controlling
\n
interest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
69
\n
NTI-USA Inc
\n
USA
\n
USD
\n
100
\n
TC
\n
100.00
\n
NTI Boilers Inc
\n
100.00
\n
70
\n
PT Ariston Thermo Indonesia
\n
Indonesia
\n
IDR
\n
16,260,750,000
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston Pte Ltd.
\n
0.01
\n
71
\n
Racold
\n
Thermo Private Ltd
\n
India
\n
INR
\n
262,134,750
\n
TC
\n
100.00
\n
Ariston Holding N.V.
\n
99.99
\n
Ariston S.p.A.
\n
0.01
\n
72
\n
S.H.E. d.o.o. Svilajnac
\n
Serbia
\n
RSD
\n
35,432,220
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
73
\n
SPM Innovation
\n
sas
\n
France
\n
EUR
\n
750,020
\n
BUR
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
74
\n
Thermowatt (Wuxi) Electric
\n
Co., Ltd
\n
China
\n
CNY
\n
82,769,200
\n
COM
\n
100.00
\n
Ariston Thermo (China)
\n
Co., Ltd
\n
70.00
\n
Ariston Holding N.V.
\n
30.00
\n
75
\n
Thermowatt Professional
\n
S.r.l.
\n
Italy
\n
EUR
\n
100,000
\n
COM
\n
100.00
\n
Thermowatt S.p.A.
\n
100.00
\n
76
\n
Thermowatt S.p.A.
\n
Italy
\n
EUR
\n
7,700,000
\n
COM
\n
100.00
\n
Ariston Holding N.V.
\n
100.00
\n
(*)
\n
Refers to the main Division
\n
LIST OF COMPANIES NOT INCLUDED IN THE SCOPE OF CONSOLIDATION
\n
N\u00b0
\n
Company
\n
Registered office
\n
Curr.
\n
Share capital
\n
Business
\n
unit (*)
\n
Group's
\n
controlling
\n
interest
\n
Investing companies
\n
Direct con-
\n
trolling in-
\n
terest
\n
Subsidiaries'
\n
controlling
\n
interest
\n
Minority
\n
interest
\n
1
\n
Joint venture \"Ariston
\n
Thermo - UTG LLC\" (**)
\n
Uzbekistan
\n
EUR
\n
1,000,000
\n
TC
\n
51.00
\n
Ariston Holding N.V.
\n
51.00
\n
49.00
\n
2
\n
Haas Heating B.V.
\n
Netherlands
\n
EUR
\n
100
\n
TC
\n
24.50
\n
Atag Heating B.V.
\n
24.50
\n
(**)
\n
The company was not included in the scope of consolidation because of its limited area of operation and little significance.
\n
\n \n
\n \n
\n \n
\n \n
\n \n