Method used to determine fair value | ||||||
Note | Type of financial instrument | Measurement principle | Level in fair value hierarchy | Valuation technique | Valuation model | Market data |
Long-term loans and advances, and other non-current receivables and payables | Amortized cost | N/A | N/A | The amortized cost of long-term loans and advances, and other non-current receivables and payables, is not materially different from their fair value at the end of the reporting period. | ||
5.8/5.14 | Trade receivables and payables | Amortized cost | N/A | N/A | Trade receivables and payables are measured at fair value (which equates to face value) on initial recognition, and subsequently at amortized cost. | |
5.13 | Financial assets measured at fair value held to meet obligations under post-employment benefit plans | Fair value | 1 | Market value | Quoted market | |
5.12 | Lease liabilities | Amortized cost | N/A | N/A | The liability for future lease payments is discounted using the incremental borrowing rate. | |
5.17 | Debt | Amortized cost | N/A | N/A | Amortized cost is regarded as an acceptable approximation of fair value as reported in the notes to the consolidated financial statements. | |
5.16 | Forward currency contracts | Fair value | 2 | Present value of future cash flows | Maturity < 1 year: Mark-to-market |
Method used to determine fair value | ||||||
Note | Type of financial instrument | Measurement principle | Level in fair value hierarchy | Valuation technique | Valuation model | Market data |
Long-term loans and advances, and other non-current receivables and payables | Amortized cost | N/A | N/A | The amortized cost of long-term loans and advances, and other non-current receivables and payables, is not materially different from their fair value at the end of the reporting period. | ||
5.8/5.14 | Trade receivables and payables | Amortized cost | N/A | N/A | Trade receivables and payables are measured at fair value (which equates to face value) on initial recognition, and subsequently at amortized cost. | |
5.13 | Financial assets measured at fair value held to meet obligations under post-employment benefit plans | Fair value | 1 | Market value | Quoted market | |
5.12 | Lease liabilities | Amortized cost | N/A | N/A | The liability for future lease payments is discounted using the incremental borrowing rate. | |
5.17 | Debt | Amortized cost | N/A | N/A | Amortized cost is regarded as an acceptable approximation of fair value as reported in the notes to the consolidated financial statements. | |
5.16 | Forward currency contracts | Fair value | 2 | Present value of future cash flows | Maturity < 1 year: Mark-to-market |
ACCOUNTING PRINCIPLES Scope of consolidation EUROAPI\u2019s Group\u2019s consolidated financial statements include all companies over which EUROAPI has control, joint control or significant influence. Consolidation method The consolidation method is based on the degree of control exercised by the Group. \u25e6 Control: full consolidation. The Group controls an entity when the three following conditions are fulfilled: \u25e6 it holds power over the entity; \u25e6 it is exposed, or has rights, to variable returns from its involvement with the entity; \u25e6 it has the ability to use its power to affect the amount of the investor\u2019s returns. \u25e6 Joint control and significant influence: equity-method accounting. Joint control exists where operating, strategic and financial decisions require unanimous agreement between the partners. Influence is defined as the power to contribute to a company\u2019s financial and operating policy decisions, rather than to exercise control over those policies. Significant influence is presumed where the Group directly or indirectly holds 20% or more of an entity\u2019s voting rights. \u25e6 No influence: the Company is not consolidated. | ||
ACCOUNTING PRINCIPLE Property, plant and equipment is initially measured and recognized at acquisition cost, including any directly attributable cost of preparing the asset for its intended use. The component-based approach to accounting for property, plant and equipment is applied. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the asset to which they relate. After initial measurement as indicated above (representing the gross value), property, plant and equipment is carried at cost less accumulated depreciation and impairment, except for land which is carried at cost less impairment. The gross value of items of property, plant and equipment, net of any residual value (estimated disposal value at the end of the asset\u2019s useful life), is depreciated on a straight-line basis over the useful life of the asset. The useful life of an asset is usually equivalent to its economic life. The useful lives applied to property, plant and equipment are as follows: | |||
Buildings | 15 to 40 years | ||
Fixtures | 10 to 20 years | ||
Machinery and equipment | 5 to 15 years | ||
Other | 3 to 15 years | ||
Useful lives and residual values of property, plant and equipment are reviewed regularly. The effect of any adjustment to useful lives or residual values is recognized prospectively as a change in accounting estimate. Depreciation charged against items of property, plant and equipment is incorporated into the cost of inventories or expensed when incurred. Depreciation expense is presented within the income statement line item that corresponds to the function for which the asset is used. Property, plant and equipment that is under construction and unavailable for use is depreciated from the date on which it is brought into service, defined as the date of acceptance of the asset for operational use. | |||
(in \u20ac millions) | December 31, 2022 | Acquisitions and other increases | Depreciatio n expense | Impairment losses, net of reversals (a) | Disposals and other decreases | Currency translation differences | Transfers | December\u00a0 31, 2023 |
Land | 15.9 | \u2014 | \u2014 | \u2014 | \u2014 | 0.3 | 0.1 | 16.3 |
Buildings | 301.6 | \u2014 | \u2014 | \u2014 | (1.1) | 4.3 | 16.6 | 321.4 |
Machinery and equipment | 1,555.6 | \u2014 | \u2014 | \u2014 | (15.0) | 9.0 | 79.2 | 1,628.9 |
Fixtures, fittings and other | 156.3 | \u2014 | \u2014 | \u2014 | (1.5) | 0.7 | 18.8 | 174.2 |
Property, plant and equipment in progress | 164.7 | 151.7 | \u2014 | \u2014 | \u2014 | 2.3 | (112.5) | 206.2 |
Gross value | 2,194.0 | 151.7 | \u2014 | \u2014 | (17.6) | 16.6 | 2.1 | 2,346.8 |
Land | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Buildings | (201.5) | \u2014 | (8.4) | \u2014 | 1.1 | (3.0) | \u2014 | (211.8) |
Machinery and equipment | (1,268.3) | \u2014 | (46.1) | (221.1) | 14.9 | (6.6) | (0.6) | (1,527.9) |
Fixtures, fittings and other | (126.5) | \u2014 | (9.0) | \u2014 | 1.6 | (0.7) | \u2014 | (134.7) |
Property, plant and equipment in progress | (0.6) | \u2014 | \u2014 | (3.5) | \u2014 | \u2014 | 0.6 | (3.5) |
Accumulated depreciation and impairment | (1,597.0) | \u2014 | (63.5) | (224.7) | 17.6 | (10.3) | \u2014 | (1,877.9) |
Land | 15.9 | \u2014 | \u2014 | \u2014 | \u2014 | 0.3 | 0.1 | 16.3 |
Buildings | 100.1 | \u2014 | (8.4) | \u2014 | \u2014 | 1.3 | 16.6 | 109.6 |
Machinery and equipment | 287.3 | \u2014 | (46.1) | (221.1) | \u2014 | 2.4 | 78.5 | 101.0 |
Fixtures, fittings and other | 29.7 | \u2014 | (9.0) | \u2014 | \u2014 | \u2014 | 18.8 | 39.4 |
Property, plant and equipment in progress | 164.1 | 151.7 | \u2014 | (3.5) | \u2014 | 2.3 | (111.9) | 202.7 |
Net value | 597.1 | 151.7 | (63.5) | (224.7) | \u2014 | 6.3 | 2.1 | 468.9 |
ACCOUNTING PRINCIPLE Under IFRS 16 \u201cLeases\u201d, a contract or part of a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. EUROAPI recognizes a right-of-use asset and a lease liability at the commencement date of the lease. Right- of-use assets are initially measured at cost, and then at cost less accumulated depreciation and impairment; the amount may also be adjusted to reflect certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments not yet paid at the commencement date. The discount rate used is the interest rate implicit in the lease or, if that cannot be readily determined, the lessee\u2019s incremental borrowing rate (based on the lease term, not maturities). EUROAPI generally uses the latter rate as a discount rate; it corresponds to the risk-free rate for the currency in which the lease is denominated, plus an uplift for credit risk over the duration of the payments. Subsequently, the lease liability is increased to reflect interest on the liability, and reduced by the amount of the lease payments made. It is remeasured if future lease payments are modified following changes in an index or rate, or if the Group reassesses whether to exercise an option to purchase or a termination option. EUROAPI has elected to use the exemptions permitted under IFRS 16 relating to leases with a term of 12 months or less and leases of low-value assets (less than \u20ac5,000). Lease payments on such leases are recognized when incurred as an operating expense, within the relevant income statement line item for the use of the leased asset. | ||
(in \u20ac millions) | December 31, 2022 | Acquisitions and other increases | Depreciation expense | Disposals and other decreases | Transfers | December 31, 2023 |
Land and buildings | 53.5 | 3.3 | \u2014 | (6.1) | 0.1 | 50.6 |
Machinery and equipment | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other property, plant and equipment | 6.8 | 2.3 | \u2014 | (0.1) | (0.2) | 8.8 |
Gross value | 60.3 | 5.6 | \u2014 | (6.3) | (0.1) | 59.4 |
Land and buildings | (15.0) | \u2014 | (4.5) | 2.0 | \u2014 | (17.6) |
Machinery and equipment | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other property, plant and equipment | (3.1) | \u2014 | (2.0) | 0.1 | 0.2 | (4.7) |
Accumulated depreciation and impairment | (18.1) | \u2014 | (6.5) | 2.1 | 0.2 | (22.3) |
Land and buildings | 38.5 | 3.3 | (4.5) | (4.2) | 0.1 | 33.1 |
Machinery and equipment | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other property, plant and equipment | 3.7 | 2.3 | (2.0) | \u2014 | \u2014 | 4.1 |
Net value | 42.2 | 5.6 | (6.5) | (4.2) | 0.1 | 37.2 |
ACCOUNTING PRINCIPLE Acquired software Intangible assets, which mainly comprise acquired or internally-developed computer software, are amortized on a straight line basis over their useful lives, ranging between three and five years. The useful lives of intangible assets are reviewed regularly at the end of each reporting period. In the event of a change in estimate of the amortization period, the amortization charge is adjusted prospectively. Amortization charged against intangible assets is recognized in the income statement according to the nature and use of each intangible asset taken individually. Intangible assets are carried at cost, minus (i) accumulated amortization and (ii) any accumulated impairment losses recognized in accordance with IAS 36 \u201cImpairment of Assets\u201d. Software licenses are capitalized at acquisition cost, including any directly attributable cost of preparing the software for its intended use. Software licenses are amortized on a straight-line basis over their useful lives as determined by EUROAPI (three to five years). Internally generated costs incurred to develop or upgrade software are capitalized if the criteria specified in IAS 38 \u201cIntangible Assets\u201d are satisfied and are amortized on a straight-line basis over the useful life of the software. Internally generated research and development Research expenditure is systematically recognized as an expense when incurred. Development expenditure comprises expenditure incurred in relation to in-house programs to develop or improve industrial manufacturing processes prior to their operational and industrial use. Because such developments are subject to risks and uncertainties inherent to EUROAPI\u2019s activities, the criteria for capitalization are considered by program. Considering risks and uncertainties about the technical feasibility of development projects, internally generated development expenditure (mainly comprising primary costs of development platforms) is generally expensed as incurred within \u201cResearch and development expenses\u201d. Conversely, where the six IAS 38 criteria are considered to have been met, such expenditures are recognized as an asset in the statement of financial position within \u201cIntangible assets\u201d as incurred. Intangible assets derived from in-house development projects are amortized over their useful lives. If the asset contributes to the inventory production cycle, the related amortization expense is incorporated in the cost of inventories; otherwise, it is recognized as a component of operating income within the appropriate income statement line item. | ||
(in \u20ac millions) | December 31, 2022 | Acquisitions and other increases | Depreciation expense | Currency translation differences | Transfers | December 31, 2023 |
Software | 41.3 | 9.7 | \u2014 | 0.3 | 0.6 | 51.9 |
Other intangible assets | 1.8 | 4.2 | \u2014 | \u2014 | (0.1) | 5.9 |
Other rights | 1.2 | \u2014 | \u2014 | \u2014 | 0.1 | 1.3 |
Gross value | 44.3 | 13.9 | \u2014 | 0.3 | 0.6 | 59.1 |
Software | (15.5) | \u2014 | (8.0) | (0.2) | \u2014 | (23.7) |
Other intangible assets | \u2014 | \u2014 | \u2014 | \u2014 | ||
Other rights | (0.1) | \u2014 | (1.1) | \u2014 | \u2014 | (1.2) |
Accumulated amortization and impairment | (15.7) | \u2014 | (9.1) | (0.2) | \u2014 | (24.9) |
Software | 25.8 | 9.7 | (8.0) | 0.1 | 0.6 | 28.2 |
Other intangible assets | 1.8 | 4.2 | \u2014 | \u2014 | (0.1) | 5.9 |
Other rights | 1.1 | \u2014 | (1.1) | \u2014 | 0.1 | 0.1 |
Net value | 28.7 | 13.9 | (9.1) | 0.1 | 0.6 | 34.2 |
ACCOUNTING PRINCIPLE In accordance with IAS 36 \u201cImpairment of Assets\u201d, property, plant and equipment, right of use assets, amortized intangible assets and goodwill are tested for impairment when there is an indication that they may have become impaired, and at least once a year for goodwill. Indications of impairment are assessed using quantitative and qualitative criteria. The qualitative criteria used relate mainly to risks of non-compliance with pharmaceutical industry regulations and good manufacturing practices, and technological advances. The quantitative criteria used relate to commercial and manufacturing activity levels that could have lasting negative effects on EUROAPI\u2019s operating results. If there is an indication that an individual asset may have become impaired, the recoverable amount of the asset is determined separately if possible, or at the level of the cash-generating unit (CGU) to which the asset belongs. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Identifying such asset groups requires management to exercise judgment, based on how operations are managed. Cash\u2011generating units are identified consistently from period to period unless a change is justified. The recoverable amount of a CGU is also measured if there is an indication that the CGU itself may have become impaired. Recoverable amount is the higher of (i) fair value less cost of disposal (ii) value in use. If impairment tests show that a CGU is impaired, the impairment loss is allocated first to any goodwill corresponding to that CGU and then pro rata to all the other assets of the CGU based on the carrying amount of each asset, without however reducing the carrying amount of an asset below the higher of (i) fair value less costs to sell (if measurable) and (ii) its value in use (if determinable). The CGUs of the EUROAPI Group mainly comprise depreciable items of property, plant and equipment and inventories measured at cost. Impairment losses taken against non current assets are presented in a dedicated income statement line. Key assumptions underlying the determination of recoverable amounts. The recoverable amount determined by the Group is generally equal to the present value of the future cash flows expected to be derived from a CGU and based on the following: \u25e6 cash flow projections are taken from the Long-Term Plan prepared each year and reflect changes in volumes, prices, direct costs and investment in the period, determined based on contracts and activities and in line with past data and expected changes over the period covered by the Long-Term Plan; \u25e6 this plan covers the year in progress and the next four years, with an extrapolation period of cash flow estimates. This period is representative of the average duration of the Group\u2019s long-term industrial projects and its short-term activities; \u25e6 terminal values are calculated based on discounted forecast flows for the last year of a long-term plan after extrapolation. These flows are determined for each CGU based on a perpetual growth rate mainly founded on long-term inflation; \u25e6 these terminal values are calculated based on discount rates and perpetual growth rates reflecting the country or the geographic area of the CGU; \u25e6 a discount rate (weighted average cost of capital) is determined corresponding to Consumer Healthcare index: it is equal to the risk-free rate plus a risk premium weighted for country-specific risks. A risk premium is included in the calculation of the weighted average cost of capital of entities located in countries outside the euro zone. The discount rates estimated by management for each CGU therefore reflect current market assessments of the time value of money and the country specific risks to which the CGU is exposed, with the other risks reflected in the expected future cash flows from the assets. These rates were updated by an independent expert once a year. | ||
CGU | Discount rate | Perpetual growth rate |
France | 8.3% | 2.0% |
Germany | 8.3% | 2.8% |
Italy | 8.3% | \u2014% |
Hungary | 9.9% | 3.0% |
United Kingdom | 9.3% | \u2014% |
(in \u20ac millions) | ||||||
CGU | Increase of discount rate +0.5% | Decrease of discount rate -0.5% | Increase of Perpetual growth rate +0.5% | Decrease of\u00a0 Perpetual growth rate -0.5% | Increase of EBITDA rate +0.5% | Decrease of EBITDA rate -0.5% |
France | (53,4) | +62,8 | +43,7 | (37,3) | +25,0 | (25,0) |
Germany | (30,0) | +37,3 | +29,1 | (23,5) | +15,1 | (15,1) |
Italy | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
United Kingdom | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
ACCOUNTING PRINCIPLE Inventories are measured at the lower of cost and net realizable value. Cost is calculated using weighted average cost or the first in, first out (FIFO) method. The cost of inventories mainly comprises: the purchase cost of materials used in the manufacture of products; direct and indirect labor costs; depreciation charged during the period against production lines used to manufacture inventories; other expenses such as the operating costs of the industrial facilities where inventories are manufactured; and other costs incurred to bring inventories to their present location and condition. EUROAPI assesses inventory levels relative to sales at each reporting date. Production and inventory levels of active ingredients manufactured to meet contractual obligations under supply contracts entered into by EUROAPI are calibrated to meet the needs of the customer. When items produced for a customer cannot be sold or reallocated for alternative commercial use, an allowance for their destruction is recognized. At each reporting date, EUROAPI applies impairment criteria that take account of inventory turnover, obsolescence, net realizable value, and non-compliant production outputs. Decisions on impairment allowances are made for each product identified as being within one of those categories. Inventories are measured at the lower of cost and net realizable value. Chemical raw materials and work in process are only written down by reference to the recoverable amount of the corresponding finished products, in accordance with paragraph 32 of IAS 2. However, they may also be written down if they are intended for a single customer which terminates its supply contract or decides to suspend manufacture of the product. Raw materials and in-process active ingredients are subject to a lesser risk of becoming time-expired than pharmaceutical products, which are subject to fixed use-by dates. At the end of the manufacturing process, finished products are checked for compliance with quality standards appropriate for their intended use, and with customer specifications. At that stage, the only inventories that can be written down are batches that have failed compliance checks and cannot be returned to production. The recoverable amount of finished products that have cleared compliance checks is measured in accordance with paragraph 9 of IAS 2 at each reporting date by reference to market or contract price, and an impairment allowance is recognized if said price is lower than the carrying amount of the inventories in the statement of financial position. Consequently, EUROAPI may make adjustments to the carrying amount of inventories in the statement of financial position to allow for excess, obsolete or slow-moving inventories in line with changes in customer demand; stricter quality requirements arising from technological or regulatory developments; or other economic factors. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. If net realizable value is less than the carrying amount recognized in the statement of financial position, an impairment allowance is recognized to cover the difference, applying the principles described above. | ||
December 31, 2023 | December 31, 2022 | |||||
(in \u20ac millions) | Gross value | Allowances | Carrying amount | Gross value | Allowances | Carrying amount |
Raw materials | 104.6 | (3.7) | 100.9 | 104.0 | (2.1) | 102.0 |
Work in progress | 334.0 | (7.7) | 326.3 | 303.2 | (18.5) | 284.8 |
Finished goods | 238.4 | (20.8) | 217.6 | 219.6 | (11.7) | 208.0 |
Total | 677.0 | (32.2) | 644.8 | 626.9 | (32.2) | 594.7 |
ACCOUNTING PRINCIPLE Trade receivables are recognized and measured at face value minus allowances for non-recoverable amounts, in accordance with IFRS 9, as described in Note 2 \u201cFinancial instruments\u201d. Impairment is based on the simplified approach provided under the standard. Expected credit losses are calculated based on lifetime losses, using the Group\u2019s historical credit loss experience and forward-looking projections. Impairment losses on trade receivables are recognized within \u201cCommercial and distribution expenses\u201d in the income statement. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Gross value | 220.3 | 265.8 |
Allowances | (4.1) | (1.6) |
Carrying amount | 216.3 | 264.2 |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Trade receivables - third parties | 127.3 | 114.6 |
Trade receivables - related parties | 89.0 | 149.6 |
Carrying amount | 216.3 | 264.2 |
(in \u20ac millions) | Not due -\u00a0 gross value | <1 month past due | 1 to 3 months past due | 3 to 6 months past due | 6 to 12 months past due | > 12 months past due | Total past due -\u00a0 gross value |
December\u00a031, 2023 | 197.5 | 12.9 | 4.0 | 1.3 | 1.9 | 2.8 | 22.9 |
December 31, 2022 | 233.1 | 9.9 | 9.2 | 7.7 | 5.3 | 0.6 | 32.7 |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Customer contract assets(a) | 0.6 | 6.4 |
Tax receivables(b) | 50.2 | 45.7 |
Other receivables(c) | 17.2 | 30.0 |
Prepaid expenses | 7.2 | 3.3 |
Other current financial assets(d) | 8.4 | 4.8 |
Total | 83.7 | 90.3 |
ACCOUNTING PRINCIPLE EUROAPI recognizes customer contract assets and liabilities in accordance with IFRS 15. Customer contract assets comprise costs incurred in the pre-production phase and also capitalized and unbilled receivables representing performance obligations satisfied but not yet billed, for which an unconditional right to consideration can be demonstrated. Customer contract liabilities represent upfront payments made by EUROAPI customers under technology and development service contracts (CDMO contracts) to finance the initial operations necessary for the fulfillment of contractual obligations. Such payments are advance payments for future services rendered, and are recognized as revenue with the same pattern as the delivery of the services. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Customer contract assets (a) | 0.6 | 6.4 |
Customer contract liabilities (b) | 16.3 | 6.6 |
Number of shares | % of share capital for the period | |
December\u00a031, 2023 | 95,053,684 | 100 |
December 31, 2022 | 94,549,488 | 100 |
ACCOUNTING PRINCIPLE All treasury shares held by the Group are deducted from equity. Any gain arising on the disposal of treasury shares is recognized immediately as equity, such that disposal gains or losses do not impact net income for the fiscal year. | ||
2023 | |
Number of shares purchased during the year | 1,407,849 |
Number of shares sold during the year | 1,208,256 |
ACCOUNTING PRINCIPLE Earnings per share is calculated by dividing net income for the period attributable to ordinary shareholders by the weighted average number of shares outstanding, excluding treasury shares. Diluted earnings per share is calculated by dividing net income for the period attributable to ordinary shareholders by the weighted average number of shares outstanding, excluding treasury shares, adjusted to reflect the dilutive effects of any share-based payments. | ||
(in millions) | December 31, 2023 | December 31, 2022 |
Average number of shares outstanding | 94.2 | 93.7 |
Adjustment for share-based payments with dilutive effect | 1.7 | 1.3 |
Average number of shares used to compute diluted earnings per share | 95.9 | 95.0 |
ACCOUNTING PRINCIPLE Share-based payments are accounted for in accordance with IFRS 2. Share-based payment expense is recognized as a component of operating income, in the relevant expense category as classified by function. In measuring the expense, the expected level of attainment of any performance conditions is taken into account. The new plans implemented by the Group during the period are equity-settled plans and have been valued by an independent expert. The valuation model complies with the basic assumptions of the Monte-Carlo and Black-Scholes models, adapted to the specific features of the plans concerned. The IFRS 2 expense was recognized within administrative and general expenses in the consolidated income statement. | ||
Employee free share plan | Special Management Incentive share plan | Executive Committee matching performance share plan (c) | CEO matching performance share plan | Performance share plan 2022(d) | Stock option plan 2022 | Performance share plan 2023 (e) | Stock option plan 2023 | |
Date granted by the Board | June 3, 2022 | June 3, 2022 | May 30, 2022 | June 3, 2022 | June 3, 2022 | June 3, 2022 | June 5, 2023 | June 5, 2023 |
Total number of shares or options\u00a0 granted (in\u00a0thousands) | 474.1 | 122.3 | 461.2 | 181.2 | 216.3 | 327.1 | 357.9 | 405.4 |
Vesting period | 2 years | 2 years | 3 years | 3 years | 3 years | 4 years | 3 years | 1 to 4 years |
Exercise period | NA | NA | NA | NA | NA | June 3, 2026 to June 3, 2031 | NA | June 5, 2024 to June 3, 2032 |
Exercise price | NA | NA | NA | NA | NA | 13.91 | NA | 10.30 |
Shares or options delivered or canceled | 55,2 | 28,1 | 146,9 | 181,2 | 37,5 | 103,5 | 38,0 | 90,0 |
Outstanding shares or options at December 31, 2023 | 418.9 | 94.2 | 314.3 | \u2014 | 178.8 | 223.6 | 319.9 | 315.4 |
Share price at grant date in euros\u00a0(a) | 14.20 | 14.20 | 13.45 | 14.20 | 14.20 | 14.20 | 10.18 | 10.18 |
Fair value per share or\u00a0option in euros (b) | 14.06 | 14.06 | 13.18 | 13.92 | 13.99 | 4.51 | 10.02 | 3.25 |
ACCOUNTING PRINCIPLE As explained in Note 5.3, under IFRS 16 \u201cLeases\u201d, a contract or part of a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. EUROAPI recognizes a right-of-use asset and a lease liability at the commencement date of the lease. The lease liability is initially measured at the present value of the lease payments not yet paid at the commencement date. The discount rate used is the interest rate implicit in the lease or, if that cannot be readily determined, the lessee\u2019s incremental borrowing rate (based on the lease term, not maturities). The EUROAPI Group generally uses the latter rate as a discount rate; it corresponds to the risk-free rate for the currency in which the lease is denominated, plus an uplift for credit risk over the duration of the payments. Subsequently, the lease liability is increased to reflect interest on the liability and reduced by the amount of the lease payments made. It is remeasured if future lease payments are modified following changes in an index or rate, or if the Group reassesses whether to exercise an option to purchase or a termination option. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Non-current lease liabilities | 15.5 | 16.2 |
Current lease liabilities | 4.5 | 4.5 |
Total lease liabilities | 20.1 | 20.7 |
Future minimum lease payments | |||||
(in \u20ac millions) | Total | Less than 1 year | From 1 to 3 years | From 3 to 5 years | More than 5 years |
Total lease liabilities as of December 31, 2023 | 20.1 | 4.5 | 6.3 | 3.4 | 5.7 |
Total lease liabilities as of December 31, 2022 | 20.7 | 4.5 | 7.2 | 3.5 | 5.5 |
ACCOUNTING PRINCIPLE In accordance with IAS 37 \u201cProvisions, Contingent Liabilities and Contingent Assets\u201d, EUROAPI records a provision when it has a present obligation, whether legal or constructive, as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the outflow of resources. Provisions are measured at the present value of the costs necessary to meet the obligation. If part of the obligation may be met through compensation from a third party, such compensation is recognized as a separate asset if it is certain to be received. A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence of an uncertain future event outside the control of the EUROAPI Group. A contingent liability that does not lead to a probable outflow of resources, or the amount of which cannot be reliably measured, is disclosed in the notes to the consolidated financial statements, unless the probability of an outflow of resources is remote. EUROAPI estimates provisions on the basis of events and circumstances related to present obligations and of past experience of similar situations, and to the best of management\u2019s knowledge. | ||
(in \u20ac millions) | Provisions for environmental risks (a) | Provisions for pensions and other post- employment benefits | Provisions for other long-term benefits (b) | Other provisions (c) | Total |
Balance at December 31, 2022 | 32.8 | 61.6 | 22.7 | 29.9 | 146.9 |
Additions to provisions | 1.8 | 3.1 | 8.4 | 1.1 | 14.4 |
Reversals of provisions (utilizations) | \u2014 | (1.0) | (1.6) | (0.2) | (2.9) |
Reversals of surplus provisions | \u2014 | (1.0) | \u2014 | (4.5) | (5.4) |
Transfers (d) | (4.8) | (0.6) | 1.9 | (1.0) | (4.5) |
Net interest related to employee benefits, and unwinding of discount | (0.8) | 2.3 | 0.5 | 0.8 | 2.9 |
Currency translation differences | 0.2 | 0.1 | \u2014 | \u2014 | 0.3 |
Actuarial gains and losses on defined- benefit plans | \u2014 | 7.0 | \u2014 | \u2014 | 7.0 |
Balance at December 31, 2023 | 29.3 | 71.4 | 31.8 | 26.1 | 158.6 |
ACCOUNTING PRINCIPLE For environmental risks, EUROAPI recognizes a provision where there is a legal or constructive obligation to remediate harm to human health or the environment resulting from contamination at a site, and the cost can be reliably measured. The amount of the provision is a best estimate of future expenditures on environmental remediation plans, based on the costs that EUROAPI believes it will have to incur over an average period not exceeding (other than in exceptional circumstances) ten years. Sites identified as exposed to environmental risks are permanently monitored. Existing provisions are judged to be adequate based on available information. However, given the uncertainties as to the amount and timing of future expenditures and regulatory changes, provisions for environmental risks may require significant adjustment in future periods. Provisions for environmental liabilities are recognized in \u201cCost of sales\u201d if the provision relates to operational sites, and in \u201cOther operating expenses\u201d if the provision relates to non-operational sites. Where the effect of the time value of money is material, provisions are measured at the present value of the outflow of resources expected to be required to settle the obligation, calculated using a discount rate that reflects an estimate of the time value of money and the risks specific to the obligation. Increases in provisions to reflect the effects of the passage of time are recognized within \u201cFinancial income/ expense\u201d. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Balance at beginning of period | 45.4 | 52.7 |
Of which: | \u2014 | |
\u00b7 Classified in non-current liabilities | 32.8 | 47.8 |
\u00b7 Classified in current liabilities | 12.6 | 4.9 |
Additions to provisions | 1.8 | 6.5 |
Reversals of provisions (utilizations) | (3.5) | (5.2) |
Reversals of surplus provisions | (1.1) | (0.1) |
Unwinding of discount | (0.8) | (8.1) |
Currency translation differences | 0.2 | (0.5) |
Balance at end of period | 42.1 | 45.4 |
Of which : | ||
\u00b7 Classified in non-current liabilities | 29.3 | 32.8 |
\u00b7 Classified in current liabilities | 12.8 | 12.6 |
ACCOUNTING PRINCIPLE Pension plans and other post-employment benefits (and their respective portions of plan liabilities and assets, interest and service cost) have been accounted for on the basis of an actuarial valuation of the rights vested or currently vesting in EUROAPI employees and retirees, using the projected unit credit method in accordance with IAS 19 \u201cEmployee Benefits\u201d. Benefits are provided in the form of either defined contribution plans or defined benefit plans. In the case of defined contribution plans, the cost is recognized immediately in the period in which it is incurred, and equates to the amount of the contributions paid by EUROAPI. For defined benefit plans, EUROAPI recognizes its obligations to pay pensions and similar benefits to employees as a liability, based on an actuarial estimate of the rights vested or currently vesting in employees, using the projected unit credit method. Estimates are performed at the end of each reporting period, and are based on financial assumptions (such as discount rates and the rate of salary increases) and demographic assumptions (such as life expectancy, retirement age, employee turnover). In the case of multi-employer defined benefit plans where plan assets cannot be allocated to each participating employer with sufficient reliability, the plan is accounted for as a defined contribution plan, in accordance with paragraph 34 of IAS 19. Obligations relating to other post-employment benefits (healthcare and life insurance) offered by to EUROAPI employees are also recognized as a liability based on an actuarial estimate of the rights vested or currently vesting in EUROAPI employees at the end of the reporting period. Employee benefit obligations are recognized net of the fair value of plan assets. The benefit cost for the period consists primarily of current service cost, past service cost, net interest cost, gains or losses arising from plan settlements not specified in the terms of the plan, and actuarial gains or losses arising from plan curtailments. Net interest cost for the period is determined by applying the discount rate specified in IAS 19 to the net liability (i.e., the amount of the obligation, net of plan assets) recognized in respect of defined benefit plans. Past service cost is recognized immediately in profit or loss in the period in which it is incurred, regardless of whether or not the rights have vested at the time of adoption (in the case of a new plan) or of amendment (in the case of an existing plan). Actuarial gains and losses on defined benefit plans (pensions and other post-employment benefits), also referred to as \"Remeasurements of the net defined benefit liability (asset)\", arise as a result of changes in financial and demographic assumptions, experience adjustments, and the difference between the actual return and interest cost on plan assets. The impacts of those remeasurements are recognized in \u201cOther comprehensive income\u201d, net of deferred taxes; they may not subsequently be reclassified to profit or loss. | ||
2023 | 2022 | |||
France | Germany | France | Germany | |
Discount rate (a)/(b) | 3.15% | 3.10% to 3.15% | 3.72% | 3.45% to 3.85% |
General inflation rate (c) | 2.10% | 2.10% | 2.20% | 2.20% |
Retirement benefit indexation | 3.20% | 2.85% | 3.20% | 2.95% |
Retirement age | 63 to 67 | 63 | 62 to 67 | 63 |
Mortality table | TGH-THF 05 | Heubeck RT 2018 G | INSEE 2016-2018 | Heubeck RT 2018 G |
(in \u20ac millions) | Pensions and other post-employment benefits, by principal country - 2023 | ||||
Measurement of defined benefit obligation | Change in assumption | France | Germany | Hungary | Italy |
Value of defined benefit obligation | 19.5 | 49.1 | 3.0 | 0.4 | |
Discount rate | -0.5% | 20.5 | 54.1 | 3.1 | 0.5 |
General inflation rate | +0.5% | 19.3 | 57.6 | 3.0 | 0.4 |
Pension benefit indexation | +0.5% | 19.3 | 57.5 | 3.0 | 0.4 |
Mortality table | + 1 an | 19.3 | 49.1 | 3.0 | 0.4 |
(in \u20ac millions) | Pensions and other post-employment benefits, by principal country - 2022 | ||||
Measurement of defined benefit obligation | Change in assumption | France | Germany | Hungary | Italy |
Value of defined benefit obligation | 19.5 | 41.2 | 2.2 | 0.5 | |
Discount rate | -0.5% | 20.5 | 45.3 | 2.3 | 0.5 |
General inflation rate | +0.5% | 19.5 | 47.5 | 2.3 | 0.5 |
Pension benefit indexation | +0.5% | 19.5 | 47.5 | 2.2 | 0.5 |
Mortality table | + 1 an | 19.5 | 41.5 | 2.2 | 0.5 |
Pensions and other post- employment benefits | ||
(in \u20ac millions) | 2023 | 2022 |
Measurement of the obligation: | ||
Beginning of period | 63.4 | 90.8 |
Service cost | 3.1 | 5.0 |
Interest cost | 2.3 | 1.0 |
Actuarial losses/(gains) due to changes in financial assumptions | 6.9 | (34.7) |
Actuarial losses/(gains) due to experience adjustments | 0.1 | (1.6) |
Plan amendments, curtailments or settlements not specified in the terms of the plan | (1.0) | (0.3) |
Benefits paid | (1.0) | (1.1) |
Transfers | (1.9) | 4.6 |
Currency translation differences | 0.1 | (0.3) |
Obligation at end of period | 72.0 | 63.4 |
Fair value of plan assets: | ||
Beginning of period | 1.9 | 0.0 |
Transfers | (1.3) | 1.9 |
Currency translation differences | 0.0 | 0.0 |
Fair value of plan assets at end of period | 0.6 | 1.9 |
Net amount shown in the balance sheet | ||
Net obligation | 71.4 | 61.6 |
Effect of asset ceiling | 0.0 | 0.0 |
Net amount shown in the balance sheet at end of period | 71.4 | 61.6 |
(in \u20ac millions) | Pensions and other post-employment benefits by geographical region | ||||
December 31, 2023 | France | Germany | Hungary | Italy | Total |
Measurement of obligation | 19.5 | 49.1 | 3.0 | 0.4 | 72.0 |
Fair value of plan assets | 0.6 | 0.0 | 0.0 | 0.0 | 0.6 |
Net amount shown in the balance sheet at end of period | 18.9 | 49.1 | 3.0 | 0.4 | 71.4 |
(in \u20ac millions) | Pensions and other post-employment benefits by geographical region | ||||
December 31, 2022 | France | Germany | Hungary | Italy | Total |
Measurement of obligation | 19.5 | 41.2 | 2.2 | 0.5 | 63.4 |
Fair value of plan assets | 1.9 | 0.0 | 0.0 | 0.0 | 1.9 |
Net amount shown in the balance sheet at end of period | 17.6 | 41.2 | 2.2 | 0.5 | 61.6 |
(in \u20ac millions) | Pensions and other post-employment benefits by geographical region | ||||
Service cost for 2023 | France | Germany | Hungary | Other | Total |
Current service cost | 1.5 | 1.9 | (0.3) | 0.0 | 3.1 |
Net interest cost/(income) including administration costs and taxes paid during the period | 0.6 | 1.6 | 0.2 | 0.0 | 2.3 |
(Gains)/losses related to plan amendments, curtailments or settlements not specified in the terms of the plan | (1.0) | 0.0 | 0.0 | 0.0 | (1.0) |
Expense/(gain) recognized directly in profit or loss | 1.1 | 3.5 | (0.2) | 0.0 | 4.4 |
(in \u20ac millions) | Pensions and other post-employment benefits by geographical region | ||||
Service cost for 2022 | France | Germany | Hungary | Other | Total |
Current service cost | 1.9 | 3.0 | 0.2 | 0.0 | 5.0 |
Net interest cost/(income) including administration costs and taxes paid during the period | 0.2 | 0.7 | 0.1 | 0.0 | 1.0 |
(Gains)/losses related to plan amendments, curtailments or settlements not specified in the terms of the plan | (0.3) | 0.0 | 0.0 | 0.0 | (0.3) |
Expense/(gain) recognized directly in profit or loss | 1.8 | 3.6 | 0.3 | 0.0 | 5.7 |
(in \u20ac millions) | France | Germany | Hungary | Other | Total |
Employer\u2019s contributions (estimate) | |||||
2024 | 0.0 | 0.5 | 0.2 | 0.1 | 0.8 |
(in \u20ac millions) | France | Germany | Hungary | Other | Total |
Estimated benefit payments | |||||
2024 | 0.2 | 0.5 | 0.2 | 0.1 | 0.9 |
2025 | 0.2 | 0.9 | 0.1 | 0.0 | 1.2 |
2026 | 0.2 | 1.4 | 0.2 | 0.0 | 1.8 |
2027 | 0.5 | 1.3 | 0.3 | 0.0 | 2.2 |
2028 | 0.5 | 0.0 | 0.2 | 0.0 | 0.7 |
2029 to 2033 | 8.7 | 4.3 | 1.7 | 0.2 | 14.9 |
ACCOUNTING PRINCIPLE Restructuring provisions are recognized on the date the obligation arises, i.e., when the EUROAPI Group (i) has a detailed, formal restructuring plan and (ii) has raised a valid expectation in those affected that it will carry out the restructuring. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Balance at beginning of period | 4.0 | 2.7 |
Of which: | ||
\u00b7 Classified in non-current liabilities | \u2014 | 0.2 |
\u00b7 Classified in current liabilities | 4.0 | 2.5 |
Change in provisions recognized in profit or loss for the period | (0.9) | 2.9 |
Provisions utilized | (1.7) | (1.6) |
Currency translation differences | \u2014 | \u2014 |
Balance at end of period | 1.4 | 4.0 |
Of which : | ||
\u00b7 Classified in non-current liabilities | \u2014 | \u2014 |
\u00b7 Classified in current liabilities | 1.4 | 4.0 |
At December 31, 2023 | Total | Benefit payments by period | |||
(in \u20ac millions) | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |
Total provisions | 1.4 | 1.4 | \u2014 | \u2014 | \u2014 |
Germany | 1.3 | 1.3 | \u2014 | \u2014 | \u2014 |
United Kingdom | 0.1 | 0.1 | \u2014 | \u2014 | \u2014 |
ACCOUNTING PRINCIPLE Accounts payable are measured at fair value (which equates to face value) on initial recognition, and subsequently at amortized cost. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Trade payables - third parties | 129.0 | 183.1 |
Trade payables - related parties | 30.6 | 36.6 |
Carrying amount | 159.6 | 219.6 |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Customer contract liabilities (a) | 16.3 | 6.6 |
Current income tax liabilities | 0.3 | 11.7 |
Taxes payable, other than corporate income taxes | 1.9 | 9.7 |
Employee-related liabilities | 52.0 | 60.3 |
Provisions (b) | 17.2 | 24.8 |
Amounts payable for acquisitions of non-current assets (c) | 41.9 | 9.1 |
Other current liabilities | 9.8 | 10.0 |
Total | 139.3 | 132.2 |
(in \u20ac millions) | Non- current assets | Current assets | Total assets | Non- current liabilities | Current liabilities | Total liabilities | Market value at December 31, 2023 (net) | Market value at December 31, 2022 (net) |
Currency derivatives | ||||||||
Operating | \u2014 | 0.2 | 0.2 | \u2014 | 0.1 | 0.1 | 0.1 | 0.4 |
Financial | \u2014 | \u2014 | \u2014 | \u2014 | 0.1 | 0.1 | (0.1) | 0.1 |
Total | \u2014 | 0.2 | 0.2 | \u2014 | 0.2 | 0.2 | \u2014 | 0.5 |
December\u00a031, 2023 | ||
(in \u20ac millions) | Notional amount | Mark-to-market |
Forward currency sales | 27.7 | 0.2 |
Of which USD | 24.2 | 0.2 |
Of which GBP | 3.5 | \u2014 |
Forward currency purchases | 12.5 | (0.1) |
Of which GBP | 3.5 | \u2014 |
Of which HUF | 9.0 | (0.1) |
Total | 40.1 | 0.1 |
December\u00a031, 2023 | ||
(in \u20ac million) | Notional amount | Mark-to-market |
Forward currency sales | 7.4 | (0.1) |
Of which USD | 0.9 | \u2014 |
Of which GBP | 4.0 | \u2014 |
Of which JPY | 2.5 | (0.1) |
Forward currency purchases | 11.3 | \u2014 |
Of which USD | 0.9 | \u2014 |
Of which HUF | 10.4 | \u2014 |
Total | 18.7 | (0.1) |
ACCOUNTING PRINCIPLE Cash and cash equivalents as shown in the statement of financial position and statement of cash flows comprise cash, plus liquid short-term investments that are readily convertible into cash and are subject to an insignificant risk of changes in value in the event of movements in interest rates. The components of cash and cash equivalents shown in the statement of financial position and statement of cash flows reflect the cash held by the EUROAPI Group, which had no cash equivalents as of December 31, 2023. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Long-term debt | \u2014 | \u2014 |
Short-term debt and current portion of long-term debt | 205.4 | 100.1 |
Interest rate and currency derivative used to manage debt | 0.1 | (0.1) |
Total debt | 205.4 | 100.1 |
Cash and cash equivalents | (34.5) | (74.5) |
Net debt/(Net cash)(a) | 171.0 | 25.6 |
December 31, 2023 | December 31, 2022 | |||||
(in \u20ac millions) | Non-current | Current | Total | Non-current | Current | Total |
Bond issues | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other borrowings | \u2014 | 205.4 | 205.4 | \u2014 | 100.1 | 100.1 |
Bank credit balances | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Interest rate and currency derivative used to manage debt | \u2014 | 0.1 | 0.1 | \u2014 | (0.1) | (0.1) |
Total debt | \u2014 | 205.4 | 205.4 | \u2014 | 100.1 | 100.1 |
Cash and cash equivalents | \u2014 | (34.5) | (34.5) | \u2014 | (74.5) | (74.5) |
Net debt/(Net cash) | \u2014 | 171.0 | 171.0 | \u2014 | 25.6 | 25.6 |
(in \u20ac millions) | Current | Non-current | |||||
Total | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 and later | |
Floating-rate debt | 205.4 | 205.4 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
of which EUR | 205.4 | 205.4 | |||||
% floating-rate | 100% | ||||||
Debt | 205.4 | 205.4 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Cash and cash equivalents | 34.5 | 34.5 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
of which EUR | 20.3 | 20.3 | |||||
of which USD | 8.2 | 8.2 | |||||
of which HUF | 2.2 | 2.2 | |||||
of which GBP | 1.0 | 1.0 | |||||
of which JPY | 2.5 | 2.5 | |||||
of which CNY | 0.2 | 0.2 | |||||
of which RUB | 0.1 | 0.1 | |||||
% floating-rate | 100% | ||||||
Net debt/(Net cash) | (171.0) | (171.0) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
ACCOUNTING PRINCIPLE EUROAPI derives a substantial proportion of its revenues from the supply of manufactured or distributed active pharmaceutical ingredients, in particular via its API Solutions business; it also derives revenues (albeit to a lesser extent) from the contract manufacturing of active pharmaceutical ingredients, which involves supplying certain third-party customers with high added value industrial services under CDMO contracts. Revenue from sales of manufactured or distributed active pharmaceutical ingredients The bulk of EUROAPI\u2019s revenue derives from sales of manufactured or distributed active pharmaceutical ingredients. Sales are presented within \u201cNet sales\u201d in the income statement in an amount that reflects the consideration received in exchange for satisfying performance obligations, when it is highly probable that there will be no revenue reversal. Revenue is recognized when the API product promised under the contract is delivered to the customer. EUROAPI does not recognize sales returns for any reason other than non-compliance, supported by analyses carried out by the customer on receipt of the product. Products declared as non-compliant by customers are not returned to inventories and recognized in the statement of financial position unless the active ingredients returned can be reprocessed and ultimately resold. Volume-based incentives are estimated on the basis of firm customer orders. Revenue from CDMO EUROAPI also supplies high added value industrial services under service contracts. Those services include formulation, galenic and analytical development, quality control, regulatory support, and product life cycle management. Financial consideration received from those activities are recognized as revenue, once the performance obligations defined at contract inception are satisfied (i.e., when control over the goods and services promised under the contract is transferred to the customer). At the inception of each contract, management determines what goods and services are promised under the contract, and the pattern of transfer to the customer. Revenue from CDMO is recognized on milestones achieved when they are distinct performance obligations in the contacts. Where control is transferred over time, management determines a method for measuring the progress towards transfer, which may be based on inputs (such as costs incurred) or on outputs (by reference to units produced or shipped). If it is not possible to measure progress reliably, EUROAPI recognizes revenue equal to the amount of costs incurred and rebillable to the customer. If a contract is for the supply of active pharmaceutical ingredients, the sale is recognized when the products are physically delivered. Where a contract includes a \u201cstand-ready\u201d performance obligation, EUROAPI recognizes the associated revenue on a straight-line basis over the total duration of the contract. If a contract includes a significant financing component due to the payment terms exceeding 12 months, that component is taken into account when determining the transaction price and reflected in the amount of revenue recognized. Accordingly, a financial expense is recognized where EUROAPI receives financing, and financial income where EUROAPI grants financing. Recognizing revenue from contracts with customers in accordance with the IFRS 15 revenue recognition model may require management assumptions and judgments, mainly relating to: \u25e6 measurement of progress towards meeting a performance obligation in contracts where the obligation is transferred to the customer over time, and determination of the amount of revenue to be recognized; \u25e6 determination of the duration of the contract and transaction price in cases where the contract allows the customer an extension option or an option to acquire additional goods or services, and the assessment, measurement and recognition of such option rights where material; and \u25e6 determination of the quantities specified in the contract, where the contract includes variable or optional quantities. | ||
Advance payments received in respect of industrial services contracts Payments received from customers in the pre-production phase that represent future revenues are recognized within \u201cOther current liabilities\u201d; they are then released to profit or loss once performance of the contract starts, following the same pattern as for the transfer of performance obligations to the customer in line with the approach described above in the \u201cRevenue from the supply of industrial services\u201d section. Customer contract assets and liabilities are presented in Note 5.10. Other revenues Other revenues include activities and services that are not EUROAPI core activities (i.e., not related to the manufacturing and/or distribution of APIs). | ||
ACCOUNTING PRINCIPLE Industrial services contract costs Costs incurred on industrial services contracts with customers are recognized as an asset within \u201cOther current assets\u201d in the statement of financial position when they meet the IFRS 15 capitalization criteria for contract costs, i.e., when they (i) are directly attributable to the contract; (ii) generate resources that will be used in satisfying the performance obligation defined in the contract; and (iii) are recoverable but do not relate to satisfied performance obligations. Such costs essentially comprise expenditure incurred by EUROAPI in the pre-production phase that is necessary for bringing the industrial plant and manufacturing facilities into line with the customer\u2019s specifications, and for transferring the technology to the customer. These incurred costs, which are necessary for performing the contract but do not relate to satisfied performance obligations, are recognized in the EUROAPI statement of financial position. Contract costs are systematically capitalized when they meet the criteria specified above. When production and performance of the service specified in the contract starts, the contract costs are taken to profit or loss within \u201cCost of sales\u201d over the contract performance period, following the same pattern as for revenue recognition in line with the approach described above. Cost of active pharmaceutical ingredients sold Cost of sales mainly comprises the direct and indirect manufacturing costs of active ingredients sold by EUROAPI. The manufacturing cost of active ingredients sold includes (i) direct costs of materials and solvents used in the manufacturing process; (ii) depreciation expenses corresponding to the normal use of property, plant and equipment and software for manufacturing purposes; and (iii) personnel and other costs directly attributable to production and to site operation. Capitalized contract costs recognized in profit or loss over the contract performance period Costs incurred by EUROAPI in the pre-production phase of service and industrial development contracts with customers are capitalized when (i) they do not represent a performance obligation and (ii) they are necessary for fulfillment of the contract. Those costs are then taken to profit or loss within \u201cCost of sales\u201d once the contract performance phase starts, following the same pattern as for the transfer of performance obligations to the customer and for recognizing the associated revenue. | ||
ACCOUNTING PRINCIPLE Research and development (R&D) expenses mainly comprise primary expenditures incurred by EUROAPI development platforms relating to in-house projects to develop new products and services or to improve existing products and services before they move into industrial operation. Government grants relating to research and development projects are recognized in profit and loss to offset the corresponding cost incurred. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Research and development | (29.6) | (21.8) |
Total | (29.6) | (21.8) |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Salaries | (201.6) | (187.0) |
Social security charges and defined contribution plan (a) | (66.3) | (65.0) |
Defined benefit plans, and voluntary and statutory profit-sharing schemes | (11.2) | (20.9) |
Stock options and other share-based payment expense (b) | (7.9) | (12.9) |
Other employee benefits | (16.5) | (14.0) |
Total | (303.6) | (299.8) |
ACCOUNTING PRINCIPLE Other operating income and Other operating expenses mainly include realized and unrealized foreign exchange gains and losses on operating activities and gains and losses on disposals of non-financial assets. | ||
ACCOUNTING PRINCIPLE Restructuring costs correspond to expenses incurred in connection with the transformation or reorganization of the EUROAPI Group\u2019s operations and support functions. These costs include collective redundancy plans, compensation awarded to third parties for the early termination of contracts, commitments made in connection with transformation and reorganization decisions, and costs related to the temporary shutdown of sites or production lines associated with such programs. They also include accelerated depreciation charges arising from closures of production facilities (including leased facilities), and losses on any resulting asset disposals. In addition, restructuring costs and similar items comprise expenses incurred in connection with the Company\u2019s transformation plan announced in March 2023, which is intended to streamline and simplify processes and accelerate both the operational excellence strategy, and the CDMO roadmap. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Employee-related expenses | \u2014 | (3.1) |
Charges, gains or losses on assets | \u2014 | \u2014 |
Transformation programs and other costs | (13.2) | (3.0) |
Total | (13.2) | (6.1) |
ACCOUNTING PRINCIPLE Provisions for litigation are presented within the relevant line item for the nature of the litigation. The impacts of litigation regarded as unusual in terms of its nature, history or amount are recognized within \u201cOther gains and losses, and litigation\u201d. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Cost of debt(a) | (7.9) | (1.3) |
Interest income | 0.8 | 0.1 |
Cost of net debt | (7.1) | (1.2) |
Non-operating foreign exchange gains/(losses) | 1.5 | (1.3) |
Borrowing costs capitalized on tangible & intangible assets | 0.3 | \u2014 |
Unwinding of discounting of provisions (b) | (0.1) | 8.1 |
Net interest cost related to employee benefits | (2.8) | (1.2) |
Net interest expense on lease liabilities | (0.3) | (0.4) |
Net financial income/(expense) | (8.5) | 4.0 |
Of which financial expenses | (10.9) | (4.2) |
Of which financial income | 2.5 | 8.2 |
ACCOUNTING PRINCIPLE Income tax receivables and liabilities are presented within the line items \u201cOther non-current assets\u201d, \u201cOther current assets\u201d, \u201cOther non-current liabilities\u201d and \u201cOther current liabilities\u201d in the EUROAPI statement of financial position. Income taxes Current tax for the period includes amounts expected to be payable on taxable income in the period together with any adjustments to taxes payable in respect of previous periods, and is determined based on the tax laws enacted or substantively enacted at the reporting date in the countries in which the Group operates and generates taxable income. Deferred taxes and tax liabilities Deferred tax is determined by identifying the temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax for the period includes origination and reversal of temporary differences, remeasurements of deferred tax balances and adjustments in respect of prior periods. Deferred tax assets are recognized for all deductible temporary differences, carry forwards of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which they can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it is probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxation authority, on either the same taxable entity or on different taxable entities where there is an intention to settle the balances on a net basis. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Current taxes | (1.4) | (9.2) |
Deferred taxes | 54.4 | (9.0) |
Total | 53.0 | (18.2) |
Income/(loss) before tax | (242.8) | 3.1 |
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Income before taxes | (242.8) | 3.1 |
Standard tax rate applicable in France | 25.83% | 25.83% |
Theoretical tax income/(expense) | 62.7 | (0.8) |
Impact of permanent differences (a) | 49.4 | (5.0) |
Research tax credit | 1.0 | 0.6 |
Differences in tax rates | 4.2 | 2.7 |
Impact of non-recognized deferred tax assets | (65.6) | (16.0) |
Other | 1.3 | 0.3 |
Effective tax income/(expense) | 53.0 | (18.2) |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Deferred tax assets | 79.2 | 29.6 |
Deferred tax liabilities | (1.6) | (6.3) |
Net deferred tax asset/(liability) | 77.6 | 23.3 |
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Deferred taxes on: | ||
Consolidation adjustments (intragroup margin in inventory) | 0.1 | (0.2) |
Provisions for pensions and other employee benefits | 5.2 | 13.4 |
Accrued expenses and provisions deductible at the time of payment | 1.4 | 8.8 |
Temporary differences on PP&E and intangible assets | 60.6 | 1.7 |
Tax losses available for carry-forward | 8.4 | 2.8 |
Other | 1.8 | (3.2) |
Net deferred tax asset/(liability) | 77.6 | 23.3 |
ACCOUNTING PRINCIPLE Segment information is prepared on the basis of information communicated to the Chief Executive Officer (CEO). The CEO, who has been designated as the chief operating decision-maker (CODM) of EUROAPI in accordance with IFRS 8 \u201cOperating Segments\u201d, makes decisions on EUROAPI\u2019s strategy and on the allocation of resources. EUROAPI has identified a single operating segment that meets the IFRS 8 criteria. Reporting a single segment is consistent with the EUROAPI Group\u2019s cross-functional structure and governance arrangements; it reflects the level at which strategic and operational decisions are made, budgetary planning and resource allocations carried out, and performance measured on the basis of information provided regularly to the CODM. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 | |
Operating income/(loss) (EBIT) | (234.3) | (0.8) | |
(+) | Depreciation, amortization and impairment | 302.9 | 94.5 |
Operating income/(loss) before depreciation, amortization and impairment (EBITDA) | 68.6 | 93.7 | |
(+) | Restructuring costs and similar items excluding depreciation, amortization and impairment | 12.3 | 6.1 |
(+) | Increase in provisions for environmental risks, net of reversals of surplus provisions | 0.8 | 6.3 |
(+) | Other (a) | 11.5 | 13.9 |
Core EBITDA | 93.1 | 120.0 |
(In \u20ac million) | December\u00a031, 2023 | December 31, 2022 |
API Solutions | 727.5 | 709.1 |
CDMO | 285.8 | 267.5 |
Total net sales | 1,013.2 | 976.6 |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Large molecules | 76.5 | 98.4 |
Highly potent molecules | 96.4 | 82.2 |
Biochemistry molecules derived from fermentation | 184.1 | 148.3 |
Complex chemical synthesis molecules | 656.2 | 647.7 |
Total net sales | 1,013.2 | 976.6 |
December 31, 2023 | |||||||
(in \u20ac millions) | Total EUROAPI | Europe | of which France | of which rest of Europe | North America | Asia- Pacific | Rest of the World |
Non-current assets, excluding DTA and other non-current assets : | |||||||
- property, plant and equipment owned | 468.9 | 468.9 | 277.1 | 191.8 | \u2014 | \u2014 | 0.0 |
- property, plant and equipment Right of use | 37.2 | 36.2 | 8.1 | 28.0 | 0.2 | 0.8 | 0.0 |
- Goodwill | 4.6 | 4.6 | \u2014 | 4.6 | \u2014 | \u2014 | 0.0 |
- intangible assets | 34.2 | 34.2 | 29.4 | 4.8 | \u2014 | \u2014 | 0.0 |
December 31, 2022 | |||||||
(in \u20ac millions) | Total EUROAPI | Europe | of which France | of which rest of Europe | North America | Asia- Pacific | Rest of the World |
Non-current assets, excluding DTA and other non-current assets : | |||||||
- property, plant and equipment owned | 597.1 | 597.0 | 308.2 | 288.9 | \u2014 | \u2014 | 0.0 |
- property, plant and equipment Right of use | 42.2 | 41.3 | 6.4 | 34.8 | 0.1 | 0.9 | 0.0 |
- Goodwill | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 0.0 |
- intangible assets | 28.7 | 28.7 | 25.6 | 3.1 | \u2014 | \u2014 | 0.0 |
At December 31, 2023 | Initial amount | Drawn amount | Net amount |
(in \u20ac millions) | |||
RCF Loan | 451.0 | 205.0 | 246.0 |
At December 31, 2023 | Total | Payments due by period | |||
(in \u20ac millions) | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |
Leases \u207d\u00aa\u207e | 0.4 | 0.1 | 0.1 | \u2014 | 0.1 |
Irrevocable purchase commitments | |||||
-\u00a0 given \u207d\u1d47\u207e | 264.4 | 137.5 | 57.4 | 13.1 | 56.5 |
-\u00a0 received \u207d\u1d9c\u207e | (91.1) | (91.1) | \u2014 | \u2014 | \u2014 |
Total - net commitments given | 173.7 | 46.5 | 57.5 | 13.1 | 56.6 |
December\u00a031, 2023 | |
France | 1,212 |
Germany | 801 |
Hungary | 981 |
Italy | 217 |
United Kingdom | 235 |
United States | 19 |
Japan | 15 |
China | 5 |
Total | 3,485 |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Short-term benefits | 7.6 | 8.8 |
Post-employment benefits | 0.3 | 0.5 |
Termination benefits | 3.4 | |
Share-based payment | -0.5 | 2.7 |
Total recognized in profit and loss \u207d\u00aa\u207e | 10.8 | 12.0 |
ACCOUNTING PRINCIPLE Transactions with Sanofi, which has exercised significant influence over EUROAPI since the IPO, or with its subsidiaries, are related party transactions. The detail of these operations is presented in the note below. Key executives also constitute a related party for EUROAPI. The company did not enter into any transactions with them in 2023. Their compensation is detailed in Note 10.5. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Net sales and other revenues (a) | 478.1 | 474.6 |
Purchases and other expenses | (150.6) | (139.8) |
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Trade receivables (Note 5.8) | 89.0 | 149.6 |
Trade payables (Note 5.14) | (30.6) | (36.6) |
Other non-current assets (Note 5.6)\u207d\u00aa\u207e | 6.6 | 13.4 |
Other current assets (Note 5.9)\u207d\u1d47\u207e | 14.1 | 16.5 |
Ernst & Young | BDO | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(in \u20ac millions) | Amount | % | Amount | % | Amount | % | Amount | % |
Audit: statutory audit of separate and consolidated financial statements | 0.9 | 88.5% | 0.7 | 81.9% | 0.4 | 100% | 0.3 | 87.1% |
Services other than statutory audit | 0.1 | 11.5% | 0.1 | 18.1% | 0.0 | 0% | 0.1 | 12.9% |
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Audit-related services | 0.0 | 0.1 | 0.0% | 0.0 | 0.1 | 0% | ||
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Tax | 0.0 | 0.0 | 0.0% | 0.0 | 0.0 | 0% | ||
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Other | 0.1 | 0.1 | 0.0% | 0.0 | 0.0 | 0% | ||
Total | 1.0 | 100% | 0.8 | 100% | 0.4 | 100% | 0.4 | 100% |
Europe | Interest (%) at December 31, 2023 | Interest (%) at December 31, 2022 | |
EUROAPI | France | 100 | 100 |
EUROAPI France SAS | France | 100 | 100 |
EUROAPI H1 | France | 100 | 100 |
EUROAPI H2 | France | 100 | 100 |
EUROAPI H3 | France | 100 | 100 |
EUROAPI Italy S.r.l | Italy | 100 | 100 |
FRANCOPIA | France | 100 | 100 |
EUROAPI Hungary | Hungary | 100 | 100 |
EUROAPI Germany | Germany | 100 | 100 |
BIANO | Germany | 100 | \u2014 |
EUROAPI UK Limited | United Kingdom | 100 | 100 |
North America | Interest (%) at December 31, 2023 | Interest (%) at December 31, 2022 | |
EUROAPI US | United States | 100 | 100 |
Asia | Interest (%) at December 31, 2023 | Interest (%) at December 31, 2022 | |
EUROAPI Japan G. K. | Japan | 100 | 100 |
EUROAPI Shanghai | China | 100 | 100 |
Method used to determine fair value | ||||||
Note | Type of financial instrument | Measurement principle | Level in fair value hierarchy | Valuation technique | Valuation model | Market data |
Long-term loans and advances, and other non-current receivables and payables | Amortized cost | N/A | N/A | The amortized cost of long-term loans and advances, and other non-current receivables and payables, is not materially different from their fair value at the end of the reporting period. | ||
5.8/5.14 | Trade receivables and payables | Amortized cost | N/A | N/A | Trade receivables and payables are measured at fair value (which equates to face value) on initial recognition, and subsequently at amortized cost. | |
5.13 | Financial assets measured at fair value held to meet obligations under post-employment benefit plans | Fair value | 1 | Market value | Quoted market | |
5.12 | Lease liabilities | Amortized cost | N/A | N/A | The liability for future lease payments is discounted using the incremental borrowing rate. | |
5.17 | Debt | Amortized cost | N/A | N/A | Amortized cost is regarded as an acceptable approximation of fair value as reported in the notes to the consolidated financial statements. | |
5.16 | Forward currency contracts | Fair value | 2 | Present value of future cash flows | Maturity < 1 year: Mark-to-market |
Method used to determine fair value | ||||||
Note | Type of financial instrument | Measurement principle | Level in fair value hierarchy | Valuation technique | Valuation model | Market data |
Long-term loans and advances, and other non-current receivables and payables | Amortized cost | N/A | N/A | The amortized cost of long-term loans and advances, and other non-current receivables and payables, is not materially different from their fair value at the end of the reporting period. | ||
5.8/5.14 | Trade receivables and payables | Amortized cost | N/A | N/A | Trade receivables and payables are measured at fair value (which equates to face value) on initial recognition, and subsequently at amortized cost. | |
5.13 | Financial assets measured at fair value held to meet obligations under post-employment benefit plans | Fair value | 1 | Market value | Quoted market | |
5.12 | Lease liabilities | Amortized cost | N/A | N/A | The liability for future lease payments is discounted using the incremental borrowing rate. | |
5.17 | Debt | Amortized cost | N/A | N/A | Amortized cost is regarded as an acceptable approximation of fair value as reported in the notes to the consolidated financial statements. | |
5.16 | Forward currency contracts | Fair value | 2 | Present value of future cash flows | Maturity < 1 year: Mark-to-market |
Method used to determine fair value | ||||||
Note | Type of financial instrument | Measurement principle | Level in fair value hierarchy | Valuation technique | Valuation model | Market data |
Long-term loans and advances, and other non-current receivables and payables | Amortized cost | N/A | N/A | The amortized cost of long-term loans and advances, and other non-current receivables and payables, is not materially different from their fair value at the end of the reporting period. | ||
5.8/5.14 | Trade receivables and payables | Amortized cost | N/A | N/A | Trade receivables and payables are measured at fair value (which equates to face value) on initial recognition, and subsequently at amortized cost. | |
5.13 | Financial assets measured at fair value held to meet obligations under post-employment benefit plans | Fair value | 1 | Market value | Quoted market | |
5.12 | Lease liabilities | Amortized cost | N/A | N/A | The liability for future lease payments is discounted using the incremental borrowing rate. | |
5.17 | Debt | Amortized cost | N/A | N/A | Amortized cost is regarded as an acceptable approximation of fair value as reported in the notes to the consolidated financial statements. | |
5.16 | Forward currency contracts | Fair value | 2 | Present value of future cash flows | Maturity < 1 year: Mark-to-market |
Method used to determine fair value | ||||||
Note | Type of financial instrument | Measurement principle | Level in fair value hierarchy | Valuation technique | Valuation model | Market data |
Long-term loans and advances, and other non-current receivables and payables | Amortized cost | N/A | N/A | The amortized cost of long-term loans and advances, and other non-current receivables and payables, is not materially different from their fair value at the end of the reporting period. | ||
5.8/5.14 | Trade receivables and payables | Amortized cost | N/A | N/A | Trade receivables and payables are measured at fair value (which equates to face value) on initial recognition, and subsequently at amortized cost. | |
5.13 | Financial assets measured at fair value held to meet obligations under post-employment benefit plans | Fair value | 1 | Market value | Quoted market | |
5.12 | Lease liabilities | Amortized cost | N/A | N/A | The liability for future lease payments is discounted using the incremental borrowing rate. | |
5.17 | Debt | Amortized cost | N/A | N/A | Amortized cost is regarded as an acceptable approximation of fair value as reported in the notes to the consolidated financial statements. | |
5.16 | Forward currency contracts | Fair value | 2 | Present value of future cash flows | Maturity < 1 year: Mark-to-market |
ACCOUNTING PRINCIPLE Business combinations are recorded in accordance with the acquisition method as defined in IFRS 3. Under this method, identifiable assets acquired and liabilities assumed of the acquiree are recorded at fair value at the acquisition date. The goodwill arising from the business combination is measured as the excess of the aggregate of the consideration transferred, the amount of any non-controlling interest and, where applicable, the fair value of any previously held interest, over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities and contingent liabilities assumed. Goodwill is measured in the functional currency of the company acquired and is recognized under assets in the consolidated statement of financial position. | |||
Pursuant to IFRS, goodwill is not amortized but is tested for impairment (described in Note 5.5) at least annually or more frequently where there is evidence calling into question the net carrying amount of the asset. The Group recognizes negative goodwill in the event of a bargain purchase, with the corresponding gain recognized in net income at the acquisition date. Acquisition-related costs are expensed in the period in which they are incurred and the services received, within \u201cRestructuring costs and similar items\u201d . Pursuant to the provisions of IFRS 3, the Group may finalize the recognition of the business combination during the measurement period. This period ends when all the necessary information has been obtained and no later than 12 months after the acquisition date. |
ACCOUNTING PRINCIPLES Scope of consolidation EUROAPI\u2019s Group\u2019s consolidated financial statements include all companies over which EUROAPI has control, joint control or significant influence. Consolidation method The consolidation method is based on the degree of control exercised by the Group. \u25e6 Control: full consolidation. The Group controls an entity when the three following conditions are fulfilled: \u25e6 it holds power over the entity; \u25e6 it is exposed, or has rights, to variable returns from its involvement with the entity; \u25e6 it has the ability to use its power to affect the amount of the investor\u2019s returns. \u25e6 Joint control and significant influence: equity-method accounting. Joint control exists where operating, strategic and financial decisions require unanimous agreement between the partners. Influence is defined as the power to contribute to a company\u2019s financial and operating policy decisions, rather than to exercise control over those policies. Significant influence is presumed where the Group directly or indirectly holds 20% or more of an entity\u2019s voting rights. \u25e6 No influence: the Company is not consolidated. | ||
ACCOUNTING PRINCIPLES Scope of consolidation EUROAPI\u2019s Group\u2019s consolidated financial statements include all companies over which EUROAPI has control, joint control or significant influence. Consolidation method The consolidation method is based on the degree of control exercised by the Group. \u25e6 Control: full consolidation. The Group controls an entity when the three following conditions are fulfilled: \u25e6 it holds power over the entity; \u25e6 it is exposed, or has rights, to variable returns from its involvement with the entity; \u25e6 it has the ability to use its power to affect the amount of the investor\u2019s returns. \u25e6 Joint control and significant influence: equity-method accounting. Joint control exists where operating, strategic and financial decisions require unanimous agreement between the partners. Influence is defined as the power to contribute to a company\u2019s financial and operating policy decisions, rather than to exercise control over those policies. Significant influence is presumed where the Group directly or indirectly holds 20% or more of an entity\u2019s voting rights. \u25e6 No influence: the Company is not consolidated. | ||
Europe | Interest (%) at December 31, 2023 | Interest (%) at December 31, 2022 | |
EUROAPI | France | 100 | 100 |
EUROAPI France SAS | France | 100 | 100 |
EUROAPI H1 | France | 100 | 100 |
EUROAPI H2 | France | 100 | 100 |
EUROAPI H3 | France | 100 | 100 |
EUROAPI Italy S.r.l | Italy | 100 | 100 |
FRANCOPIA | France | 100 | 100 |
EUROAPI Hungary | Hungary | 100 | 100 |
EUROAPI Germany | Germany | 100 | 100 |
BIANO | Germany | 100 | \u2014 |
EUROAPI UK Limited | United Kingdom | 100 | 100 |
North America | Interest (%) at December 31, 2023 | Interest (%) at December 31, 2022 | |
EUROAPI US | United States | 100 | 100 |
Asia | Interest (%) at December 31, 2023 | Interest (%) at December 31, 2022 | |
EUROAPI Japan G. K. | Japan | 100 | 100 |
EUROAPI Shanghai | China | 100 | 100 |
ACCOUNTING PRINCIPLE Business combinations are recorded in accordance with the acquisition method as defined in IFRS 3. Under this method, identifiable assets acquired and liabilities assumed of the acquiree are recorded at fair value at the acquisition date. The goodwill arising from the business combination is measured as the excess of the aggregate of the consideration transferred, the amount of any non-controlling interest and, where applicable, the fair value of any previously held interest, over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities and contingent liabilities assumed. Goodwill is measured in the functional currency of the company acquired and is recognized under assets in the consolidated statement of financial position. | |||
Pursuant to IFRS, goodwill is not amortized but is tested for impairment (described in Note 5.5) at least annually or more frequently where there is evidence calling into question the net carrying amount of the asset. The Group recognizes negative goodwill in the event of a bargain purchase, with the corresponding gain recognized in net income at the acquisition date. Acquisition-related costs are expensed in the period in which they are incurred and the services received, within \u201cRestructuring costs and similar items\u201d . Pursuant to the provisions of IFRS 3, the Group may finalize the recognition of the business combination during the measurement period. This period ends when all the necessary information has been obtained and no later than 12 months after the acquisition date. |
ACCOUNTING PRINCIPLE Business combinations are recorded in accordance with the acquisition method as defined in IFRS 3. Under this method, identifiable assets acquired and liabilities assumed of the acquiree are recorded at fair value at the acquisition date. The goodwill arising from the business combination is measured as the excess of the aggregate of the consideration transferred, the amount of any non-controlling interest and, where applicable, the fair value of any previously held interest, over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities and contingent liabilities assumed. Goodwill is measured in the functional currency of the company acquired and is recognized under assets in the consolidated statement of financial position. | |||
Pursuant to IFRS, goodwill is not amortized but is tested for impairment (described in Note 5.5) at least annually or more frequently where there is evidence calling into question the net carrying amount of the asset. The Group recognizes negative goodwill in the event of a bargain purchase, with the corresponding gain recognized in net income at the acquisition date. Acquisition-related costs are expensed in the period in which they are incurred and the services received, within \u201cRestructuring costs and similar items\u201d . Pursuant to the provisions of IFRS 3, the Group may finalize the recognition of the business combination during the measurement period. This period ends when all the necessary information has been obtained and no later than 12 months after the acquisition date. |
ACCOUNTING PRINCIPLE Business combinations are recorded in accordance with the acquisition method as defined in IFRS 3. Under this method, identifiable assets acquired and liabilities assumed of the acquiree are recorded at fair value at the acquisition date. The goodwill arising from the business combination is measured as the excess of the aggregate of the consideration transferred, the amount of any non-controlling interest and, where applicable, the fair value of any previously held interest, over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities and contingent liabilities assumed. Goodwill is measured in the functional currency of the company acquired and is recognized under assets in the consolidated statement of financial position. | |||
Pursuant to IFRS, goodwill is not amortized but is tested for impairment (described in Note 5.5) at least annually or more frequently where there is evidence calling into question the net carrying amount of the asset. The Group recognizes negative goodwill in the event of a bargain purchase, with the corresponding gain recognized in net income at the acquisition date. Acquisition-related costs are expensed in the period in which they are incurred and the services received, within \u201cRestructuring costs and similar items\u201d . Pursuant to the provisions of IFRS 3, the Group may finalize the recognition of the business combination during the measurement period. This period ends when all the necessary information has been obtained and no later than 12 months after the acquisition date. |
ACCOUNTING PRINCIPLE Property, plant and equipment is initially measured and recognized at acquisition cost, including any directly attributable cost of preparing the asset for its intended use. The component-based approach to accounting for property, plant and equipment is applied. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the asset to which they relate. After initial measurement as indicated above (representing the gross value), property, plant and equipment is carried at cost less accumulated depreciation and impairment, except for land which is carried at cost less impairment. The gross value of items of property, plant and equipment, net of any residual value (estimated disposal value at the end of the asset\u2019s useful life), is depreciated on a straight-line basis over the useful life of the asset. The useful life of an asset is usually equivalent to its economic life. The useful lives applied to property, plant and equipment are as follows: | |||
Buildings | 15 to 40 years | ||
Fixtures | 10 to 20 years | ||
Machinery and equipment | 5 to 15 years | ||
Other | 3 to 15 years | ||
Useful lives and residual values of property, plant and equipment are reviewed regularly. The effect of any adjustment to useful lives or residual values is recognized prospectively as a change in accounting estimate. Depreciation charged against items of property, plant and equipment is incorporated into the cost of inventories or expensed when incurred. Depreciation expense is presented within the income statement line item that corresponds to the function for which the asset is used. Property, plant and equipment that is under construction and unavailable for use is depreciated from the date on which it is brought into service, defined as the date of acceptance of the asset for operational use. | |||
(in \u20ac millions) | December 31, 2022 | Acquisitions and other increases | Depreciatio n expense | Impairment losses, net of reversals (a) | Disposals and other decreases | Currency translation differences | Transfers | December\u00a0 31, 2023 |
Land | 15.9 | \u2014 | \u2014 | \u2014 | \u2014 | 0.3 | 0.1 | 16.3 |
Buildings | 301.6 | \u2014 | \u2014 | \u2014 | (1.1) | 4.3 | 16.6 | 321.4 |
Machinery and equipment | 1,555.6 | \u2014 | \u2014 | \u2014 | (15.0) | 9.0 | 79.2 | 1,628.9 |
Fixtures, fittings and other | 156.3 | \u2014 | \u2014 | \u2014 | (1.5) | 0.7 | 18.8 | 174.2 |
Property, plant and equipment in progress | 164.7 | 151.7 | \u2014 | \u2014 | \u2014 | 2.3 | (112.5) | 206.2 |
Gross value | 2,194.0 | 151.7 | \u2014 | \u2014 | (17.6) | 16.6 | 2.1 | 2,346.8 |
Land | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Buildings | (201.5) | \u2014 | (8.4) | \u2014 | 1.1 | (3.0) | \u2014 | (211.8) |
Machinery and equipment | (1,268.3) | \u2014 | (46.1) | (221.1) | 14.9 | (6.6) | (0.6) | (1,527.9) |
Fixtures, fittings and other | (126.5) | \u2014 | (9.0) | \u2014 | 1.6 | (0.7) | \u2014 | (134.7) |
Property, plant and equipment in progress | (0.6) | \u2014 | \u2014 | (3.5) | \u2014 | \u2014 | 0.6 | (3.5) |
Accumulated depreciation and impairment | (1,597.0) | \u2014 | (63.5) | (224.7) | 17.6 | (10.3) | \u2014 | (1,877.9) |
Land | 15.9 | \u2014 | \u2014 | \u2014 | \u2014 | 0.3 | 0.1 | 16.3 |
Buildings | 100.1 | \u2014 | (8.4) | \u2014 | \u2014 | 1.3 | 16.6 | 109.6 |
Machinery and equipment | 287.3 | \u2014 | (46.1) | (221.1) | \u2014 | 2.4 | 78.5 | 101.0 |
Fixtures, fittings and other | 29.7 | \u2014 | (9.0) | \u2014 | \u2014 | \u2014 | 18.8 | 39.4 |
Property, plant and equipment in progress | 164.1 | 151.7 | \u2014 | (3.5) | \u2014 | 2.3 | (111.9) | 202.7 |
Net value | 597.1 | 151.7 | (63.5) | (224.7) | \u2014 | 6.3 | 2.1 | 468.9 |
ACCOUNTING PRINCIPLE Property, plant and equipment is initially measured and recognized at acquisition cost, including any directly attributable cost of preparing the asset for its intended use. The component-based approach to accounting for property, plant and equipment is applied. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the asset to which they relate. After initial measurement as indicated above (representing the gross value), property, plant and equipment is carried at cost less accumulated depreciation and impairment, except for land which is carried at cost less impairment. The gross value of items of property, plant and equipment, net of any residual value (estimated disposal value at the end of the asset\u2019s useful life), is depreciated on a straight-line basis over the useful life of the asset. The useful life of an asset is usually equivalent to its economic life. The useful lives applied to property, plant and equipment are as follows: | |||
Buildings | 15 to 40 years | ||
Fixtures | 10 to 20 years | ||
Machinery and equipment | 5 to 15 years | ||
Other | 3 to 15 years | ||
Useful lives and residual values of property, plant and equipment are reviewed regularly. The effect of any adjustment to useful lives or residual values is recognized prospectively as a change in accounting estimate. Depreciation charged against items of property, plant and equipment is incorporated into the cost of inventories or expensed when incurred. Depreciation expense is presented within the income statement line item that corresponds to the function for which the asset is used. Property, plant and equipment that is under construction and unavailable for use is depreciated from the date on which it is brought into service, defined as the date of acceptance of the asset for operational use. | |||
(in \u20ac millions) | December 31, 2022 | Acquisitions and other increases | Depreciatio n expense | Impairment losses, net of reversals (a) | Disposals and other decreases | Currency translation differences | Transfers | December\u00a0 31, 2023 |
Land | 15.9 | \u2014 | \u2014 | \u2014 | \u2014 | 0.3 | 0.1 | 16.3 |
Buildings | 301.6 | \u2014 | \u2014 | \u2014 | (1.1) | 4.3 | 16.6 | 321.4 |
Machinery and equipment | 1,555.6 | \u2014 | \u2014 | \u2014 | (15.0) | 9.0 | 79.2 | 1,628.9 |
Fixtures, fittings and other | 156.3 | \u2014 | \u2014 | \u2014 | (1.5) | 0.7 | 18.8 | 174.2 |
Property, plant and equipment in progress | 164.7 | 151.7 | \u2014 | \u2014 | \u2014 | 2.3 | (112.5) | 206.2 |
Gross value | 2,194.0 | 151.7 | \u2014 | \u2014 | (17.6) | 16.6 | 2.1 | 2,346.8 |
Land | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Buildings | (201.5) | \u2014 | (8.4) | \u2014 | 1.1 | (3.0) | \u2014 | (211.8) |
Machinery and equipment | (1,268.3) | \u2014 | (46.1) | (221.1) | 14.9 | (6.6) | (0.6) | (1,527.9) |
Fixtures, fittings and other | (126.5) | \u2014 | (9.0) | \u2014 | 1.6 | (0.7) | \u2014 | (134.7) |
Property, plant and equipment in progress | (0.6) | \u2014 | \u2014 | (3.5) | \u2014 | \u2014 | 0.6 | (3.5) |
Accumulated depreciation and impairment | (1,597.0) | \u2014 | (63.5) | (224.7) | 17.6 | (10.3) | \u2014 | (1,877.9) |
Land | 15.9 | \u2014 | \u2014 | \u2014 | \u2014 | 0.3 | 0.1 | 16.3 |
Buildings | 100.1 | \u2014 | (8.4) | \u2014 | \u2014 | 1.3 | 16.6 | 109.6 |
Machinery and equipment | 287.3 | \u2014 | (46.1) | (221.1) | \u2014 | 2.4 | 78.5 | 101.0 |
Fixtures, fittings and other | 29.7 | \u2014 | (9.0) | \u2014 | \u2014 | \u2014 | 18.8 | 39.4 |
Property, plant and equipment in progress | 164.1 | 151.7 | \u2014 | (3.5) | \u2014 | 2.3 | (111.9) | 202.7 |
Net value | 597.1 | 151.7 | (63.5) | (224.7) | \u2014 | 6.3 | 2.1 | 468.9 |
ACCOUNTING PRINCIPLE Property, plant and equipment is initially measured and recognized at acquisition cost, including any directly attributable cost of preparing the asset for its intended use. The component-based approach to accounting for property, plant and equipment is applied. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the asset to which they relate. After initial measurement as indicated above (representing the gross value), property, plant and equipment is carried at cost less accumulated depreciation and impairment, except for land which is carried at cost less impairment. The gross value of items of property, plant and equipment, net of any residual value (estimated disposal value at the end of the asset\u2019s useful life), is depreciated on a straight-line basis over the useful life of the asset. The useful life of an asset is usually equivalent to its economic life. The useful lives applied to property, plant and equipment are as follows: | |||
Buildings | 15 to 40 years | ||
Fixtures | 10 to 20 years | ||
Machinery and equipment | 5 to 15 years | ||
Other | 3 to 15 years | ||
Useful lives and residual values of property, plant and equipment are reviewed regularly. The effect of any adjustment to useful lives or residual values is recognized prospectively as a change in accounting estimate. Depreciation charged against items of property, plant and equipment is incorporated into the cost of inventories or expensed when incurred. Depreciation expense is presented within the income statement line item that corresponds to the function for which the asset is used. Property, plant and equipment that is under construction and unavailable for use is depreciated from the date on which it is brought into service, defined as the date of acceptance of the asset for operational use. | |||
ACCOUNTING PRINCIPLE Property, plant and equipment is initially measured and recognized at acquisition cost, including any directly attributable cost of preparing the asset for its intended use. The component-based approach to accounting for property, plant and equipment is applied. Government grants relating to property, plant and equipment are deducted from the acquisition cost of the asset to which they relate. After initial measurement as indicated above (representing the gross value), property, plant and equipment is carried at cost less accumulated depreciation and impairment, except for land which is carried at cost less impairment. The gross value of items of property, plant and equipment, net of any residual value (estimated disposal value at the end of the asset\u2019s useful life), is depreciated on a straight-line basis over the useful life of the asset. The useful life of an asset is usually equivalent to its economic life. The useful lives applied to property, plant and equipment are as follows: | |||
Buildings | 15 to 40 years | ||
Fixtures | 10 to 20 years | ||
Machinery and equipment | 5 to 15 years | ||
Other | 3 to 15 years | ||
Useful lives and residual values of property, plant and equipment are reviewed regularly. The effect of any adjustment to useful lives or residual values is recognized prospectively as a change in accounting estimate. Depreciation charged against items of property, plant and equipment is incorporated into the cost of inventories or expensed when incurred. Depreciation expense is presented within the income statement line item that corresponds to the function for which the asset is used. Property, plant and equipment that is under construction and unavailable for use is depreciated from the date on which it is brought into service, defined as the date of acceptance of the asset for operational use. | |||
ACCOUNTING PRINCIPLE Under IFRS 16 \u201cLeases\u201d, a contract or part of a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. EUROAPI recognizes a right-of-use asset and a lease liability at the commencement date of the lease. Right- of-use assets are initially measured at cost, and then at cost less accumulated depreciation and impairment; the amount may also be adjusted to reflect certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments not yet paid at the commencement date. The discount rate used is the interest rate implicit in the lease or, if that cannot be readily determined, the lessee\u2019s incremental borrowing rate (based on the lease term, not maturities). EUROAPI generally uses the latter rate as a discount rate; it corresponds to the risk-free rate for the currency in which the lease is denominated, plus an uplift for credit risk over the duration of the payments. Subsequently, the lease liability is increased to reflect interest on the liability, and reduced by the amount of the lease payments made. It is remeasured if future lease payments are modified following changes in an index or rate, or if the Group reassesses whether to exercise an option to purchase or a termination option. EUROAPI has elected to use the exemptions permitted under IFRS 16 relating to leases with a term of 12 months or less and leases of low-value assets (less than \u20ac5,000). Lease payments on such leases are recognized when incurred as an operating expense, within the relevant income statement line item for the use of the leased asset. | ||
(in \u20ac millions) | December 31, 2022 | Acquisitions and other increases | Depreciation expense | Disposals and other decreases | Transfers | December 31, 2023 |
Land and buildings | 53.5 | 3.3 | \u2014 | (6.1) | 0.1 | 50.6 |
Machinery and equipment | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other property, plant and equipment | 6.8 | 2.3 | \u2014 | (0.1) | (0.2) | 8.8 |
Gross value | 60.3 | 5.6 | \u2014 | (6.3) | (0.1) | 59.4 |
Land and buildings | (15.0) | \u2014 | (4.5) | 2.0 | \u2014 | (17.6) |
Machinery and equipment | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other property, plant and equipment | (3.1) | \u2014 | (2.0) | 0.1 | 0.2 | (4.7) |
Accumulated depreciation and impairment | (18.1) | \u2014 | (6.5) | 2.1 | 0.2 | (22.3) |
Land and buildings | 38.5 | 3.3 | (4.5) | (4.2) | 0.1 | 33.1 |
Machinery and equipment | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other property, plant and equipment | 3.7 | 2.3 | (2.0) | \u2014 | \u2014 | 4.1 |
Net value | 42.2 | 5.6 | (6.5) | (4.2) | 0.1 | 37.2 |
ACCOUNTING PRINCIPLE As explained in Note 5.3, under IFRS 16 \u201cLeases\u201d, a contract or part of a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. EUROAPI recognizes a right-of-use asset and a lease liability at the commencement date of the lease. The lease liability is initially measured at the present value of the lease payments not yet paid at the commencement date. The discount rate used is the interest rate implicit in the lease or, if that cannot be readily determined, the lessee\u2019s incremental borrowing rate (based on the lease term, not maturities). The EUROAPI Group generally uses the latter rate as a discount rate; it corresponds to the risk-free rate for the currency in which the lease is denominated, plus an uplift for credit risk over the duration of the payments. Subsequently, the lease liability is increased to reflect interest on the liability and reduced by the amount of the lease payments made. It is remeasured if future lease payments are modified following changes in an index or rate, or if the Group reassesses whether to exercise an option to purchase or a termination option. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Non-current lease liabilities | 15.5 | 16.2 |
Current lease liabilities | 4.5 | 4.5 |
Total lease liabilities | 20.1 | 20.7 |
Future minimum lease payments | |||||
(in \u20ac millions) | Total | Less than 1 year | From 1 to 3 years | From 3 to 5 years | More than 5 years |
Total lease liabilities as of December 31, 2023 | 20.1 | 4.5 | 6.3 | 3.4 | 5.7 |
Total lease liabilities as of December 31, 2022 | 20.7 | 4.5 | 7.2 | 3.5 | 5.5 |
ACCOUNTING PRINCIPLE Under IFRS 16 \u201cLeases\u201d, a contract or part of a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. EUROAPI recognizes a right-of-use asset and a lease liability at the commencement date of the lease. Right- of-use assets are initially measured at cost, and then at cost less accumulated depreciation and impairment; the amount may also be adjusted to reflect certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments not yet paid at the commencement date. The discount rate used is the interest rate implicit in the lease or, if that cannot be readily determined, the lessee\u2019s incremental borrowing rate (based on the lease term, not maturities). EUROAPI generally uses the latter rate as a discount rate; it corresponds to the risk-free rate for the currency in which the lease is denominated, plus an uplift for credit risk over the duration of the payments. Subsequently, the lease liability is increased to reflect interest on the liability, and reduced by the amount of the lease payments made. It is remeasured if future lease payments are modified following changes in an index or rate, or if the Group reassesses whether to exercise an option to purchase or a termination option. EUROAPI has elected to use the exemptions permitted under IFRS 16 relating to leases with a term of 12 months or less and leases of low-value assets (less than \u20ac5,000). Lease payments on such leases are recognized when incurred as an operating expense, within the relevant income statement line item for the use of the leased asset. | ||
ACCOUNTING PRINCIPLE As explained in Note 5.3, under IFRS 16 \u201cLeases\u201d, a contract or part of a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. EUROAPI recognizes a right-of-use asset and a lease liability at the commencement date of the lease. The lease liability is initially measured at the present value of the lease payments not yet paid at the commencement date. The discount rate used is the interest rate implicit in the lease or, if that cannot be readily determined, the lessee\u2019s incremental borrowing rate (based on the lease term, not maturities). The EUROAPI Group generally uses the latter rate as a discount rate; it corresponds to the risk-free rate for the currency in which the lease is denominated, plus an uplift for credit risk over the duration of the payments. Subsequently, the lease liability is increased to reflect interest on the liability and reduced by the amount of the lease payments made. It is remeasured if future lease payments are modified following changes in an index or rate, or if the Group reassesses whether to exercise an option to purchase or a termination option. | ||
ACCOUNTING PRINCIPLE Acquired software Intangible assets, which mainly comprise acquired or internally-developed computer software, are amortized on a straight line basis over their useful lives, ranging between three and five years. The useful lives of intangible assets are reviewed regularly at the end of each reporting period. In the event of a change in estimate of the amortization period, the amortization charge is adjusted prospectively. Amortization charged against intangible assets is recognized in the income statement according to the nature and use of each intangible asset taken individually. Intangible assets are carried at cost, minus (i) accumulated amortization and (ii) any accumulated impairment losses recognized in accordance with IAS 36 \u201cImpairment of Assets\u201d. Software licenses are capitalized at acquisition cost, including any directly attributable cost of preparing the software for its intended use. Software licenses are amortized on a straight-line basis over their useful lives as determined by EUROAPI (three to five years). Internally generated costs incurred to develop or upgrade software are capitalized if the criteria specified in IAS 38 \u201cIntangible Assets\u201d are satisfied and are amortized on a straight-line basis over the useful life of the software. Internally generated research and development Research expenditure is systematically recognized as an expense when incurred. Development expenditure comprises expenditure incurred in relation to in-house programs to develop or improve industrial manufacturing processes prior to their operational and industrial use. Because such developments are subject to risks and uncertainties inherent to EUROAPI\u2019s activities, the criteria for capitalization are considered by program. Considering risks and uncertainties about the technical feasibility of development projects, internally generated development expenditure (mainly comprising primary costs of development platforms) is generally expensed as incurred within \u201cResearch and development expenses\u201d. Conversely, where the six IAS 38 criteria are considered to have been met, such expenditures are recognized as an asset in the statement of financial position within \u201cIntangible assets\u201d as incurred. Intangible assets derived from in-house development projects are amortized over their useful lives. If the asset contributes to the inventory production cycle, the related amortization expense is incorporated in the cost of inventories; otherwise, it is recognized as a component of operating income within the appropriate income statement line item. | ||
(in \u20ac millions) | December 31, 2022 | Acquisitions and other increases | Depreciation expense | Currency translation differences | Transfers | December 31, 2023 |
Software | 41.3 | 9.7 | \u2014 | 0.3 | 0.6 | 51.9 |
Other intangible assets | 1.8 | 4.2 | \u2014 | \u2014 | (0.1) | 5.9 |
Other rights | 1.2 | \u2014 | \u2014 | \u2014 | 0.1 | 1.3 |
Gross value | 44.3 | 13.9 | \u2014 | 0.3 | 0.6 | 59.1 |
Software | (15.5) | \u2014 | (8.0) | (0.2) | \u2014 | (23.7) |
Other intangible assets | \u2014 | \u2014 | \u2014 | \u2014 | ||
Other rights | (0.1) | \u2014 | (1.1) | \u2014 | \u2014 | (1.2) |
Accumulated amortization and impairment | (15.7) | \u2014 | (9.1) | (0.2) | \u2014 | (24.9) |
Software | 25.8 | 9.7 | (8.0) | 0.1 | 0.6 | 28.2 |
Other intangible assets | 1.8 | 4.2 | \u2014 | \u2014 | (0.1) | 5.9 |
Other rights | 1.1 | \u2014 | (1.1) | \u2014 | 0.1 | 0.1 |
Net value | 28.7 | 13.9 | (9.1) | 0.1 | 0.6 | 34.2 |
ACCOUNTING PRINCIPLE Acquired software Intangible assets, which mainly comprise acquired or internally-developed computer software, are amortized on a straight line basis over their useful lives, ranging between three and five years. The useful lives of intangible assets are reviewed regularly at the end of each reporting period. In the event of a change in estimate of the amortization period, the amortization charge is adjusted prospectively. Amortization charged against intangible assets is recognized in the income statement according to the nature and use of each intangible asset taken individually. Intangible assets are carried at cost, minus (i) accumulated amortization and (ii) any accumulated impairment losses recognized in accordance with IAS 36 \u201cImpairment of Assets\u201d. Software licenses are capitalized at acquisition cost, including any directly attributable cost of preparing the software for its intended use. Software licenses are amortized on a straight-line basis over their useful lives as determined by EUROAPI (three to five years). Internally generated costs incurred to develop or upgrade software are capitalized if the criteria specified in IAS 38 \u201cIntangible Assets\u201d are satisfied and are amortized on a straight-line basis over the useful life of the software. Internally generated research and development Research expenditure is systematically recognized as an expense when incurred. Development expenditure comprises expenditure incurred in relation to in-house programs to develop or improve industrial manufacturing processes prior to their operational and industrial use. Because such developments are subject to risks and uncertainties inherent to EUROAPI\u2019s activities, the criteria for capitalization are considered by program. Considering risks and uncertainties about the technical feasibility of development projects, internally generated development expenditure (mainly comprising primary costs of development platforms) is generally expensed as incurred within \u201cResearch and development expenses\u201d. Conversely, where the six IAS 38 criteria are considered to have been met, such expenditures are recognized as an asset in the statement of financial position within \u201cIntangible assets\u201d as incurred. Intangible assets derived from in-house development projects are amortized over their useful lives. If the asset contributes to the inventory production cycle, the related amortization expense is incorporated in the cost of inventories; otherwise, it is recognized as a component of operating income within the appropriate income statement line item. | ||
ACCOUNTING PRINCIPLE Research and development (R&D) expenses mainly comprise primary expenditures incurred by EUROAPI development platforms relating to in-house projects to develop new products and services or to improve existing products and services before they move into industrial operation. Government grants relating to research and development projects are recognized in profit and loss to offset the corresponding cost incurred. | ||
ACCOUNTING PRINCIPLE In accordance with IAS 36 \u201cImpairment of Assets\u201d, property, plant and equipment, right of use assets, amortized intangible assets and goodwill are tested for impairment when there is an indication that they may have become impaired, and at least once a year for goodwill. Indications of impairment are assessed using quantitative and qualitative criteria. The qualitative criteria used relate mainly to risks of non-compliance with pharmaceutical industry regulations and good manufacturing practices, and technological advances. The quantitative criteria used relate to commercial and manufacturing activity levels that could have lasting negative effects on EUROAPI\u2019s operating results. If there is an indication that an individual asset may have become impaired, the recoverable amount of the asset is determined separately if possible, or at the level of the cash-generating unit (CGU) to which the asset belongs. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Identifying such asset groups requires management to exercise judgment, based on how operations are managed. Cash\u2011generating units are identified consistently from period to period unless a change is justified. The recoverable amount of a CGU is also measured if there is an indication that the CGU itself may have become impaired. Recoverable amount is the higher of (i) fair value less cost of disposal (ii) value in use. If impairment tests show that a CGU is impaired, the impairment loss is allocated first to any goodwill corresponding to that CGU and then pro rata to all the other assets of the CGU based on the carrying amount of each asset, without however reducing the carrying amount of an asset below the higher of (i) fair value less costs to sell (if measurable) and (ii) its value in use (if determinable). The CGUs of the EUROAPI Group mainly comprise depreciable items of property, plant and equipment and inventories measured at cost. Impairment losses taken against non current assets are presented in a dedicated income statement line. Key assumptions underlying the determination of recoverable amounts. The recoverable amount determined by the Group is generally equal to the present value of the future cash flows expected to be derived from a CGU and based on the following: \u25e6 cash flow projections are taken from the Long-Term Plan prepared each year and reflect changes in volumes, prices, direct costs and investment in the period, determined based on contracts and activities and in line with past data and expected changes over the period covered by the Long-Term Plan; \u25e6 this plan covers the year in progress and the next four years, with an extrapolation period of cash flow estimates. This period is representative of the average duration of the Group\u2019s long-term industrial projects and its short-term activities; \u25e6 terminal values are calculated based on discounted forecast flows for the last year of a long-term plan after extrapolation. These flows are determined for each CGU based on a perpetual growth rate mainly founded on long-term inflation; \u25e6 these terminal values are calculated based on discount rates and perpetual growth rates reflecting the country or the geographic area of the CGU; \u25e6 a discount rate (weighted average cost of capital) is determined corresponding to Consumer Healthcare index: it is equal to the risk-free rate plus a risk premium weighted for country-specific risks. A risk premium is included in the calculation of the weighted average cost of capital of entities located in countries outside the euro zone. The discount rates estimated by management for each CGU therefore reflect current market assessments of the time value of money and the country specific risks to which the CGU is exposed, with the other risks reflected in the expected future cash flows from the assets. These rates were updated by an independent expert once a year. | ||
CGU | Discount rate | Perpetual growth rate |
France | 8.3% | 2.0% |
Germany | 8.3% | 2.8% |
Italy | 8.3% | \u2014% |
Hungary | 9.9% | 3.0% |
United Kingdom | 9.3% | \u2014% |
(in \u20ac millions) | ||||||
CGU | Increase of discount rate +0.5% | Decrease of discount rate -0.5% | Increase of Perpetual growth rate +0.5% | Decrease of\u00a0 Perpetual growth rate -0.5% | Increase of EBITDA rate +0.5% | Decrease of EBITDA rate -0.5% |
France | (53,4) | +62,8 | +43,7 | (37,3) | +25,0 | (25,0) |
Germany | (30,0) | +37,3 | +29,1 | (23,5) | +15,1 | (15,1) |
Italy | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
United Kingdom | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
ACCOUNTING PRINCIPLE In accordance with IAS 36 \u201cImpairment of Assets\u201d, property, plant and equipment, right of use assets, amortized intangible assets and goodwill are tested for impairment when there is an indication that they may have become impaired, and at least once a year for goodwill. Indications of impairment are assessed using quantitative and qualitative criteria. The qualitative criteria used relate mainly to risks of non-compliance with pharmaceutical industry regulations and good manufacturing practices, and technological advances. The quantitative criteria used relate to commercial and manufacturing activity levels that could have lasting negative effects on EUROAPI\u2019s operating results. If there is an indication that an individual asset may have become impaired, the recoverable amount of the asset is determined separately if possible, or at the level of the cash-generating unit (CGU) to which the asset belongs. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Identifying such asset groups requires management to exercise judgment, based on how operations are managed. Cash\u2011generating units are identified consistently from period to period unless a change is justified. The recoverable amount of a CGU is also measured if there is an indication that the CGU itself may have become impaired. Recoverable amount is the higher of (i) fair value less cost of disposal (ii) value in use. If impairment tests show that a CGU is impaired, the impairment loss is allocated first to any goodwill corresponding to that CGU and then pro rata to all the other assets of the CGU based on the carrying amount of each asset, without however reducing the carrying amount of an asset below the higher of (i) fair value less costs to sell (if measurable) and (ii) its value in use (if determinable). The CGUs of the EUROAPI Group mainly comprise depreciable items of property, plant and equipment and inventories measured at cost. Impairment losses taken against non current assets are presented in a dedicated income statement line. Key assumptions underlying the determination of recoverable amounts. The recoverable amount determined by the Group is generally equal to the present value of the future cash flows expected to be derived from a CGU and based on the following: \u25e6 cash flow projections are taken from the Long-Term Plan prepared each year and reflect changes in volumes, prices, direct costs and investment in the period, determined based on contracts and activities and in line with past data and expected changes over the period covered by the Long-Term Plan; \u25e6 this plan covers the year in progress and the next four years, with an extrapolation period of cash flow estimates. This period is representative of the average duration of the Group\u2019s long-term industrial projects and its short-term activities; \u25e6 terminal values are calculated based on discounted forecast flows for the last year of a long-term plan after extrapolation. These flows are determined for each CGU based on a perpetual growth rate mainly founded on long-term inflation; \u25e6 these terminal values are calculated based on discount rates and perpetual growth rates reflecting the country or the geographic area of the CGU; \u25e6 a discount rate (weighted average cost of capital) is determined corresponding to Consumer Healthcare index: it is equal to the risk-free rate plus a risk premium weighted for country-specific risks. A risk premium is included in the calculation of the weighted average cost of capital of entities located in countries outside the euro zone. The discount rates estimated by management for each CGU therefore reflect current market assessments of the time value of money and the country specific risks to which the CGU is exposed, with the other risks reflected in the expected future cash flows from the assets. These rates were updated by an independent expert once a year. | ||
ACCOUNTING PRINCIPLE Inventories are measured at the lower of cost and net realizable value. Cost is calculated using weighted average cost or the first in, first out (FIFO) method. The cost of inventories mainly comprises: the purchase cost of materials used in the manufacture of products; direct and indirect labor costs; depreciation charged during the period against production lines used to manufacture inventories; other expenses such as the operating costs of the industrial facilities where inventories are manufactured; and other costs incurred to bring inventories to their present location and condition. EUROAPI assesses inventory levels relative to sales at each reporting date. Production and inventory levels of active ingredients manufactured to meet contractual obligations under supply contracts entered into by EUROAPI are calibrated to meet the needs of the customer. When items produced for a customer cannot be sold or reallocated for alternative commercial use, an allowance for their destruction is recognized. At each reporting date, EUROAPI applies impairment criteria that take account of inventory turnover, obsolescence, net realizable value, and non-compliant production outputs. Decisions on impairment allowances are made for each product identified as being within one of those categories. Inventories are measured at the lower of cost and net realizable value. Chemical raw materials and work in process are only written down by reference to the recoverable amount of the corresponding finished products, in accordance with paragraph 32 of IAS 2. However, they may also be written down if they are intended for a single customer which terminates its supply contract or decides to suspend manufacture of the product. Raw materials and in-process active ingredients are subject to a lesser risk of becoming time-expired than pharmaceutical products, which are subject to fixed use-by dates. At the end of the manufacturing process, finished products are checked for compliance with quality standards appropriate for their intended use, and with customer specifications. At that stage, the only inventories that can be written down are batches that have failed compliance checks and cannot be returned to production. The recoverable amount of finished products that have cleared compliance checks is measured in accordance with paragraph 9 of IAS 2 at each reporting date by reference to market or contract price, and an impairment allowance is recognized if said price is lower than the carrying amount of the inventories in the statement of financial position. Consequently, EUROAPI may make adjustments to the carrying amount of inventories in the statement of financial position to allow for excess, obsolete or slow-moving inventories in line with changes in customer demand; stricter quality requirements arising from technological or regulatory developments; or other economic factors. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. If net realizable value is less than the carrying amount recognized in the statement of financial position, an impairment allowance is recognized to cover the difference, applying the principles described above. | ||
December 31, 2023 | December 31, 2022 | |||||
(in \u20ac millions) | Gross value | Allowances | Carrying amount | Gross value | Allowances | Carrying amount |
Raw materials | 104.6 | (3.7) | 100.9 | 104.0 | (2.1) | 102.0 |
Work in progress | 334.0 | (7.7) | 326.3 | 303.2 | (18.5) | 284.8 |
Finished goods | 238.4 | (20.8) | 217.6 | 219.6 | (11.7) | 208.0 |
Total | 677.0 | (32.2) | 644.8 | 626.9 | (32.2) | 594.7 |
ACCOUNTING PRINCIPLE Inventories are measured at the lower of cost and net realizable value. Cost is calculated using weighted average cost or the first in, first out (FIFO) method. The cost of inventories mainly comprises: the purchase cost of materials used in the manufacture of products; direct and indirect labor costs; depreciation charged during the period against production lines used to manufacture inventories; other expenses such as the operating costs of the industrial facilities where inventories are manufactured; and other costs incurred to bring inventories to their present location and condition. EUROAPI assesses inventory levels relative to sales at each reporting date. Production and inventory levels of active ingredients manufactured to meet contractual obligations under supply contracts entered into by EUROAPI are calibrated to meet the needs of the customer. When items produced for a customer cannot be sold or reallocated for alternative commercial use, an allowance for their destruction is recognized. At each reporting date, EUROAPI applies impairment criteria that take account of inventory turnover, obsolescence, net realizable value, and non-compliant production outputs. Decisions on impairment allowances are made for each product identified as being within one of those categories. Inventories are measured at the lower of cost and net realizable value. Chemical raw materials and work in process are only written down by reference to the recoverable amount of the corresponding finished products, in accordance with paragraph 32 of IAS 2. However, they may also be written down if they are intended for a single customer which terminates its supply contract or decides to suspend manufacture of the product. Raw materials and in-process active ingredients are subject to a lesser risk of becoming time-expired than pharmaceutical products, which are subject to fixed use-by dates. At the end of the manufacturing process, finished products are checked for compliance with quality standards appropriate for their intended use, and with customer specifications. At that stage, the only inventories that can be written down are batches that have failed compliance checks and cannot be returned to production. The recoverable amount of finished products that have cleared compliance checks is measured in accordance with paragraph 9 of IAS 2 at each reporting date by reference to market or contract price, and an impairment allowance is recognized if said price is lower than the carrying amount of the inventories in the statement of financial position. Consequently, EUROAPI may make adjustments to the carrying amount of inventories in the statement of financial position to allow for excess, obsolete or slow-moving inventories in line with changes in customer demand; stricter quality requirements arising from technological or regulatory developments; or other economic factors. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. If net realizable value is less than the carrying amount recognized in the statement of financial position, an impairment allowance is recognized to cover the difference, applying the principles described above. | ||
ACCOUNTING PRINCIPLE Trade receivables are recognized and measured at face value minus allowances for non-recoverable amounts, in accordance with IFRS 9, as described in Note 2 \u201cFinancial instruments\u201d. Impairment is based on the simplified approach provided under the standard. Expected credit losses are calculated based on lifetime losses, using the Group\u2019s historical credit loss experience and forward-looking projections. Impairment losses on trade receivables are recognized within \u201cCommercial and distribution expenses\u201d in the income statement. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Gross value | 220.3 | 265.8 |
Allowances | (4.1) | (1.6) |
Carrying amount | 216.3 | 264.2 |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Trade receivables - third parties | 127.3 | 114.6 |
Trade receivables - related parties | 89.0 | 149.6 |
Carrying amount | 216.3 | 264.2 |
(in \u20ac millions) | Not due -\u00a0 gross value | <1 month past due | 1 to 3 months past due | 3 to 6 months past due | 6 to 12 months past due | > 12 months past due | Total past due -\u00a0 gross value |
December\u00a031, 2023 | 197.5 | 12.9 | 4.0 | 1.3 | 1.9 | 2.8 | 22.9 |
December 31, 2022 | 233.1 | 9.9 | 9.2 | 7.7 | 5.3 | 0.6 | 32.7 |
ACCOUNTING PRINCIPLE Trade receivables are recognized and measured at face value minus allowances for non-recoverable amounts, in accordance with IFRS 9, as described in Note 2 \u201cFinancial instruments\u201d. Impairment is based on the simplified approach provided under the standard. Expected credit losses are calculated based on lifetime losses, using the Group\u2019s historical credit loss experience and forward-looking projections. Impairment losses on trade receivables are recognized within \u201cCommercial and distribution expenses\u201d in the income statement. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Customer contract assets(a) | 0.6 | 6.4 |
Tax receivables(b) | 50.2 | 45.7 |
Other receivables(c) | 17.2 | 30.0 |
Prepaid expenses | 7.2 | 3.3 |
Other current financial assets(d) | 8.4 | 4.8 |
Total | 83.7 | 90.3 |
ACCOUNTING PRINCIPLE EUROAPI recognizes customer contract assets and liabilities in accordance with IFRS 15. Customer contract assets comprise costs incurred in the pre-production phase and also capitalized and unbilled receivables representing performance obligations satisfied but not yet billed, for which an unconditional right to consideration can be demonstrated. Customer contract liabilities represent upfront payments made by EUROAPI customers under technology and development service contracts (CDMO contracts) to finance the initial operations necessary for the fulfillment of contractual obligations. Such payments are advance payments for future services rendered, and are recognized as revenue with the same pattern as the delivery of the services. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Customer contract assets (a) | 0.6 | 6.4 |
Customer contract liabilities (b) | 16.3 | 6.6 |
ACCOUNTING PRINCIPLE EUROAPI recognizes customer contract assets and liabilities in accordance with IFRS 15. Customer contract assets comprise costs incurred in the pre-production phase and also capitalized and unbilled receivables representing performance obligations satisfied but not yet billed, for which an unconditional right to consideration can be demonstrated. Customer contract liabilities represent upfront payments made by EUROAPI customers under technology and development service contracts (CDMO contracts) to finance the initial operations necessary for the fulfillment of contractual obligations. Such payments are advance payments for future services rendered, and are recognized as revenue with the same pattern as the delivery of the services. | ||
ACCOUNTING PRINCIPLE EUROAPI derives a substantial proportion of its revenues from the supply of manufactured or distributed active pharmaceutical ingredients, in particular via its API Solutions business; it also derives revenues (albeit to a lesser extent) from the contract manufacturing of active pharmaceutical ingredients, which involves supplying certain third-party customers with high added value industrial services under CDMO contracts. Revenue from sales of manufactured or distributed active pharmaceutical ingredients The bulk of EUROAPI\u2019s revenue derives from sales of manufactured or distributed active pharmaceutical ingredients. Sales are presented within \u201cNet sales\u201d in the income statement in an amount that reflects the consideration received in exchange for satisfying performance obligations, when it is highly probable that there will be no revenue reversal. Revenue is recognized when the API product promised under the contract is delivered to the customer. EUROAPI does not recognize sales returns for any reason other than non-compliance, supported by analyses carried out by the customer on receipt of the product. Products declared as non-compliant by customers are not returned to inventories and recognized in the statement of financial position unless the active ingredients returned can be reprocessed and ultimately resold. Volume-based incentives are estimated on the basis of firm customer orders. Revenue from CDMO EUROAPI also supplies high added value industrial services under service contracts. Those services include formulation, galenic and analytical development, quality control, regulatory support, and product life cycle management. Financial consideration received from those activities are recognized as revenue, once the performance obligations defined at contract inception are satisfied (i.e., when control over the goods and services promised under the contract is transferred to the customer). At the inception of each contract, management determines what goods and services are promised under the contract, and the pattern of transfer to the customer. Revenue from CDMO is recognized on milestones achieved when they are distinct performance obligations in the contacts. Where control is transferred over time, management determines a method for measuring the progress towards transfer, which may be based on inputs (such as costs incurred) or on outputs (by reference to units produced or shipped). If it is not possible to measure progress reliably, EUROAPI recognizes revenue equal to the amount of costs incurred and rebillable to the customer. If a contract is for the supply of active pharmaceutical ingredients, the sale is recognized when the products are physically delivered. Where a contract includes a \u201cstand-ready\u201d performance obligation, EUROAPI recognizes the associated revenue on a straight-line basis over the total duration of the contract. If a contract includes a significant financing component due to the payment terms exceeding 12 months, that component is taken into account when determining the transaction price and reflected in the amount of revenue recognized. Accordingly, a financial expense is recognized where EUROAPI receives financing, and financial income where EUROAPI grants financing. Recognizing revenue from contracts with customers in accordance with the IFRS 15 revenue recognition model may require management assumptions and judgments, mainly relating to: \u25e6 measurement of progress towards meeting a performance obligation in contracts where the obligation is transferred to the customer over time, and determination of the amount of revenue to be recognized; \u25e6 determination of the duration of the contract and transaction price in cases where the contract allows the customer an extension option or an option to acquire additional goods or services, and the assessment, measurement and recognition of such option rights where material; and \u25e6 determination of the quantities specified in the contract, where the contract includes variable or optional quantities. | ||
Advance payments received in respect of industrial services contracts Payments received from customers in the pre-production phase that represent future revenues are recognized within \u201cOther current liabilities\u201d; they are then released to profit or loss once performance of the contract starts, following the same pattern as for the transfer of performance obligations to the customer in line with the approach described above in the \u201cRevenue from the supply of industrial services\u201d section. Customer contract assets and liabilities are presented in Note 5.10. Other revenues Other revenues include activities and services that are not EUROAPI core activities (i.e., not related to the manufacturing and/or distribution of APIs). | ||
ACCOUNTING PRINCIPLE EUROAPI recognizes customer contract assets and liabilities in accordance with IFRS 15. Customer contract assets comprise costs incurred in the pre-production phase and also capitalized and unbilled receivables representing performance obligations satisfied but not yet billed, for which an unconditional right to consideration can be demonstrated. Customer contract liabilities represent upfront payments made by EUROAPI customers under technology and development service contracts (CDMO contracts) to finance the initial operations necessary for the fulfillment of contractual obligations. Such payments are advance payments for future services rendered, and are recognized as revenue with the same pattern as the delivery of the services. | ||
Number of shares | % of share capital for the period | |
December\u00a031, 2023 | 95,053,684 | 100 |
December 31, 2022 | 94,549,488 | 100 |
ACCOUNTING PRINCIPLE All treasury shares held by the Group are deducted from equity. Any gain arising on the disposal of treasury shares is recognized immediately as equity, such that disposal gains or losses do not impact net income for the fiscal year. | ||
2023 | |
Number of shares purchased during the year | 1,407,849 |
Number of shares sold during the year | 1,208,256 |
ACCOUNTING PRINCIPLE Earnings per share is calculated by dividing net income for the period attributable to ordinary shareholders by the weighted average number of shares outstanding, excluding treasury shares. Diluted earnings per share is calculated by dividing net income for the period attributable to ordinary shareholders by the weighted average number of shares outstanding, excluding treasury shares, adjusted to reflect the dilutive effects of any share-based payments. | ||
(in millions) | December 31, 2023 | December 31, 2022 |
Average number of shares outstanding | 94.2 | 93.7 |
Adjustment for share-based payments with dilutive effect | 1.7 | 1.3 |
Average number of shares used to compute diluted earnings per share | 95.9 | 95.0 |
ACCOUNTING PRINCIPLE Share-based payments are accounted for in accordance with IFRS 2. Share-based payment expense is recognized as a component of operating income, in the relevant expense category as classified by function. In measuring the expense, the expected level of attainment of any performance conditions is taken into account. The new plans implemented by the Group during the period are equity-settled plans and have been valued by an independent expert. The valuation model complies with the basic assumptions of the Monte-Carlo and Black-Scholes models, adapted to the specific features of the plans concerned. The IFRS 2 expense was recognized within administrative and general expenses in the consolidated income statement. | ||
Employee free share plan | Special Management Incentive share plan | Executive Committee matching performance share plan (c) | CEO matching performance share plan | Performance share plan 2022(d) | Stock option plan 2022 | Performance share plan 2023 (e) | Stock option plan 2023 | |
Date granted by the Board | June 3, 2022 | June 3, 2022 | May 30, 2022 | June 3, 2022 | June 3, 2022 | June 3, 2022 | June 5, 2023 | June 5, 2023 |
Total number of shares or options\u00a0 granted (in\u00a0thousands) | 474.1 | 122.3 | 461.2 | 181.2 | 216.3 | 327.1 | 357.9 | 405.4 |
Vesting period | 2 years | 2 years | 3 years | 3 years | 3 years | 4 years | 3 years | 1 to 4 years |
Exercise period | NA | NA | NA | NA | NA | June 3, 2026 to June 3, 2031 | NA | June 5, 2024 to June 3, 2032 |
Exercise price | NA | NA | NA | NA | NA | 13.91 | NA | 10.30 |
Shares or options delivered or canceled | 55,2 | 28,1 | 146,9 | 181,2 | 37,5 | 103,5 | 38,0 | 90,0 |
Outstanding shares or options at December 31, 2023 | 418.9 | 94.2 | 314.3 | \u2014 | 178.8 | 223.6 | 319.9 | 315.4 |
Share price at grant date in euros\u00a0(a) | 14.20 | 14.20 | 13.45 | 14.20 | 14.20 | 14.20 | 10.18 | 10.18 |
Fair value per share or\u00a0option in euros (b) | 14.06 | 14.06 | 13.18 | 13.92 | 13.99 | 4.51 | 10.02 | 3.25 |
Number of shares | % of share capital for the period | |
December\u00a031, 2023 | 95,053,684 | 100 |
December 31, 2022 | 94,549,488 | 100 |
ACCOUNTING PRINCIPLE All treasury shares held by the Group are deducted from equity. Any gain arising on the disposal of treasury shares is recognized immediately as equity, such that disposal gains or losses do not impact net income for the fiscal year. | ||
2023 | |
Number of shares purchased during the year | 1,407,849 |
Number of shares sold during the year | 1,208,256 |
ACCOUNTING PRINCIPLE All treasury shares held by the Group are deducted from equity. Any gain arising on the disposal of treasury shares is recognized immediately as equity, such that disposal gains or losses do not impact net income for the fiscal year. | ||
ACCOUNTING PRINCIPLE Earnings per share is calculated by dividing net income for the period attributable to ordinary shareholders by the weighted average number of shares outstanding, excluding treasury shares. Diluted earnings per share is calculated by dividing net income for the period attributable to ordinary shareholders by the weighted average number of shares outstanding, excluding treasury shares, adjusted to reflect the dilutive effects of any share-based payments. | ||
(in millions) | December 31, 2023 | December 31, 2022 |
Average number of shares outstanding | 94.2 | 93.7 |
Adjustment for share-based payments with dilutive effect | 1.7 | 1.3 |
Average number of shares used to compute diluted earnings per share | 95.9 | 95.0 |
ACCOUNTING PRINCIPLE Earnings per share is calculated by dividing net income for the period attributable to ordinary shareholders by the weighted average number of shares outstanding, excluding treasury shares. Diluted earnings per share is calculated by dividing net income for the period attributable to ordinary shareholders by the weighted average number of shares outstanding, excluding treasury shares, adjusted to reflect the dilutive effects of any share-based payments. | ||
ACCOUNTING PRINCIPLE Share-based payments are accounted for in accordance with IFRS 2. Share-based payment expense is recognized as a component of operating income, in the relevant expense category as classified by function. In measuring the expense, the expected level of attainment of any performance conditions is taken into account. The new plans implemented by the Group during the period are equity-settled plans and have been valued by an independent expert. The valuation model complies with the basic assumptions of the Monte-Carlo and Black-Scholes models, adapted to the specific features of the plans concerned. The IFRS 2 expense was recognized within administrative and general expenses in the consolidated income statement. | ||
Employee free share plan | Special Management Incentive share plan | Executive Committee matching performance share plan (c) | CEO matching performance share plan | Performance share plan 2022(d) | Stock option plan 2022 | Performance share plan 2023 (e) | Stock option plan 2023 | |
Date granted by the Board | June 3, 2022 | June 3, 2022 | May 30, 2022 | June 3, 2022 | June 3, 2022 | June 3, 2022 | June 5, 2023 | June 5, 2023 |
Total number of shares or options\u00a0 granted (in\u00a0thousands) | 474.1 | 122.3 | 461.2 | 181.2 | 216.3 | 327.1 | 357.9 | 405.4 |
Vesting period | 2 years | 2 years | 3 years | 3 years | 3 years | 4 years | 3 years | 1 to 4 years |
Exercise period | NA | NA | NA | NA | NA | June 3, 2026 to June 3, 2031 | NA | June 5, 2024 to June 3, 2032 |
Exercise price | NA | NA | NA | NA | NA | 13.91 | NA | 10.30 |
Shares or options delivered or canceled | 55,2 | 28,1 | 146,9 | 181,2 | 37,5 | 103,5 | 38,0 | 90,0 |
Outstanding shares or options at December 31, 2023 | 418.9 | 94.2 | 314.3 | \u2014 | 178.8 | 223.6 | 319.9 | 315.4 |
Share price at grant date in euros\u00a0(a) | 14.20 | 14.20 | 13.45 | 14.20 | 14.20 | 14.20 | 10.18 | 10.18 |
Fair value per share or\u00a0option in euros (b) | 14.06 | 14.06 | 13.18 | 13.92 | 13.99 | 4.51 | 10.02 | 3.25 |
ACCOUNTING PRINCIPLE Share-based payments are accounted for in accordance with IFRS 2. Share-based payment expense is recognized as a component of operating income, in the relevant expense category as classified by function. In measuring the expense, the expected level of attainment of any performance conditions is taken into account. The new plans implemented by the Group during the period are equity-settled plans and have been valued by an independent expert. The valuation model complies with the basic assumptions of the Monte-Carlo and Black-Scholes models, adapted to the specific features of the plans concerned. The IFRS 2 expense was recognized within administrative and general expenses in the consolidated income statement. | ||
ACCOUNTING PRINCIPLE In accordance with IAS 37 \u201cProvisions, Contingent Liabilities and Contingent Assets\u201d, EUROAPI records a provision when it has a present obligation, whether legal or constructive, as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the outflow of resources. Provisions are measured at the present value of the costs necessary to meet the obligation. If part of the obligation may be met through compensation from a third party, such compensation is recognized as a separate asset if it is certain to be received. A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence of an uncertain future event outside the control of the EUROAPI Group. A contingent liability that does not lead to a probable outflow of resources, or the amount of which cannot be reliably measured, is disclosed in the notes to the consolidated financial statements, unless the probability of an outflow of resources is remote. EUROAPI estimates provisions on the basis of events and circumstances related to present obligations and of past experience of similar situations, and to the best of management\u2019s knowledge. | ||
(in \u20ac millions) | Provisions for environmental risks (a) | Provisions for pensions and other post- employment benefits | Provisions for other long-term benefits (b) | Other provisions (c) | Total |
Balance at December 31, 2022 | 32.8 | 61.6 | 22.7 | 29.9 | 146.9 |
Additions to provisions | 1.8 | 3.1 | 8.4 | 1.1 | 14.4 |
Reversals of provisions (utilizations) | \u2014 | (1.0) | (1.6) | (0.2) | (2.9) |
Reversals of surplus provisions | \u2014 | (1.0) | \u2014 | (4.5) | (5.4) |
Transfers (d) | (4.8) | (0.6) | 1.9 | (1.0) | (4.5) |
Net interest related to employee benefits, and unwinding of discount | (0.8) | 2.3 | 0.5 | 0.8 | 2.9 |
Currency translation differences | 0.2 | 0.1 | \u2014 | \u2014 | 0.3 |
Actuarial gains and losses on defined- benefit plans | \u2014 | 7.0 | \u2014 | \u2014 | 7.0 |
Balance at December 31, 2023 | 29.3 | 71.4 | 31.8 | 26.1 | 158.6 |
ACCOUNTING PRINCIPLE For environmental risks, EUROAPI recognizes a provision where there is a legal or constructive obligation to remediate harm to human health or the environment resulting from contamination at a site, and the cost can be reliably measured. The amount of the provision is a best estimate of future expenditures on environmental remediation plans, based on the costs that EUROAPI believes it will have to incur over an average period not exceeding (other than in exceptional circumstances) ten years. Sites identified as exposed to environmental risks are permanently monitored. Existing provisions are judged to be adequate based on available information. However, given the uncertainties as to the amount and timing of future expenditures and regulatory changes, provisions for environmental risks may require significant adjustment in future periods. Provisions for environmental liabilities are recognized in \u201cCost of sales\u201d if the provision relates to operational sites, and in \u201cOther operating expenses\u201d if the provision relates to non-operational sites. Where the effect of the time value of money is material, provisions are measured at the present value of the outflow of resources expected to be required to settle the obligation, calculated using a discount rate that reflects an estimate of the time value of money and the risks specific to the obligation. Increases in provisions to reflect the effects of the passage of time are recognized within \u201cFinancial income/ expense\u201d. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Balance at beginning of period | 45.4 | 52.7 |
Of which: | \u2014 | |
\u00b7 Classified in non-current liabilities | 32.8 | 47.8 |
\u00b7 Classified in current liabilities | 12.6 | 4.9 |
Additions to provisions | 1.8 | 6.5 |
Reversals of provisions (utilizations) | (3.5) | (5.2) |
Reversals of surplus provisions | (1.1) | (0.1) |
Unwinding of discount | (0.8) | (8.1) |
Currency translation differences | 0.2 | (0.5) |
Balance at end of period | 42.1 | 45.4 |
Of which : | ||
\u00b7 Classified in non-current liabilities | 29.3 | 32.8 |
\u00b7 Classified in current liabilities | 12.8 | 12.6 |
ACCOUNTING PRINCIPLE Pension plans and other post-employment benefits (and their respective portions of plan liabilities and assets, interest and service cost) have been accounted for on the basis of an actuarial valuation of the rights vested or currently vesting in EUROAPI employees and retirees, using the projected unit credit method in accordance with IAS 19 \u201cEmployee Benefits\u201d. Benefits are provided in the form of either defined contribution plans or defined benefit plans. In the case of defined contribution plans, the cost is recognized immediately in the period in which it is incurred, and equates to the amount of the contributions paid by EUROAPI. For defined benefit plans, EUROAPI recognizes its obligations to pay pensions and similar benefits to employees as a liability, based on an actuarial estimate of the rights vested or currently vesting in employees, using the projected unit credit method. Estimates are performed at the end of each reporting period, and are based on financial assumptions (such as discount rates and the rate of salary increases) and demographic assumptions (such as life expectancy, retirement age, employee turnover). In the case of multi-employer defined benefit plans where plan assets cannot be allocated to each participating employer with sufficient reliability, the plan is accounted for as a defined contribution plan, in accordance with paragraph 34 of IAS 19. Obligations relating to other post-employment benefits (healthcare and life insurance) offered by to EUROAPI employees are also recognized as a liability based on an actuarial estimate of the rights vested or currently vesting in EUROAPI employees at the end of the reporting period. Employee benefit obligations are recognized net of the fair value of plan assets. The benefit cost for the period consists primarily of current service cost, past service cost, net interest cost, gains or losses arising from plan settlements not specified in the terms of the plan, and actuarial gains or losses arising from plan curtailments. Net interest cost for the period is determined by applying the discount rate specified in IAS 19 to the net liability (i.e., the amount of the obligation, net of plan assets) recognized in respect of defined benefit plans. Past service cost is recognized immediately in profit or loss in the period in which it is incurred, regardless of whether or not the rights have vested at the time of adoption (in the case of a new plan) or of amendment (in the case of an existing plan). Actuarial gains and losses on defined benefit plans (pensions and other post-employment benefits), also referred to as \"Remeasurements of the net defined benefit liability (asset)\", arise as a result of changes in financial and demographic assumptions, experience adjustments, and the difference between the actual return and interest cost on plan assets. The impacts of those remeasurements are recognized in \u201cOther comprehensive income\u201d, net of deferred taxes; they may not subsequently be reclassified to profit or loss. | ||
2023 | 2022 | |||
France | Germany | France | Germany | |
Discount rate (a)/(b) | 3.15% | 3.10% to 3.15% | 3.72% | 3.45% to 3.85% |
General inflation rate (c) | 2.10% | 2.10% | 2.20% | 2.20% |
Retirement benefit indexation | 3.20% | 2.85% | 3.20% | 2.95% |
Retirement age | 63 to 67 | 63 | 62 to 67 | 63 |
Mortality table | TGH-THF 05 | Heubeck RT 2018 G | INSEE 2016-2018 | Heubeck RT 2018 G |
(in \u20ac millions) | Pensions and other post-employment benefits, by principal country - 2023 | ||||
Measurement of defined benefit obligation | Change in assumption | France | Germany | Hungary | Italy |
Value of defined benefit obligation | 19.5 | 49.1 | 3.0 | 0.4 | |
Discount rate | -0.5% | 20.5 | 54.1 | 3.1 | 0.5 |
General inflation rate | +0.5% | 19.3 | 57.6 | 3.0 | 0.4 |
Pension benefit indexation | +0.5% | 19.3 | 57.5 | 3.0 | 0.4 |
Mortality table | + 1 an | 19.3 | 49.1 | 3.0 | 0.4 |
(in \u20ac millions) | Pensions and other post-employment benefits, by principal country - 2022 | ||||
Measurement of defined benefit obligation | Change in assumption | France | Germany | Hungary | Italy |
Value of defined benefit obligation | 19.5 | 41.2 | 2.2 | 0.5 | |
Discount rate | -0.5% | 20.5 | 45.3 | 2.3 | 0.5 |
General inflation rate | +0.5% | 19.5 | 47.5 | 2.3 | 0.5 |
Pension benefit indexation | +0.5% | 19.5 | 47.5 | 2.2 | 0.5 |
Mortality table | + 1 an | 19.5 | 41.5 | 2.2 | 0.5 |
Pensions and other post- employment benefits | ||
(in \u20ac millions) | 2023 | 2022 |
Measurement of the obligation: | ||
Beginning of period | 63.4 | 90.8 |
Service cost | 3.1 | 5.0 |
Interest cost | 2.3 | 1.0 |
Actuarial losses/(gains) due to changes in financial assumptions | 6.9 | (34.7) |
Actuarial losses/(gains) due to experience adjustments | 0.1 | (1.6) |
Plan amendments, curtailments or settlements not specified in the terms of the plan | (1.0) | (0.3) |
Benefits paid | (1.0) | (1.1) |
Transfers | (1.9) | 4.6 |
Currency translation differences | 0.1 | (0.3) |
Obligation at end of period | 72.0 | 63.4 |
Fair value of plan assets: | ||
Beginning of period | 1.9 | 0.0 |
Transfers | (1.3) | 1.9 |
Currency translation differences | 0.0 | 0.0 |
Fair value of plan assets at end of period | 0.6 | 1.9 |
Net amount shown in the balance sheet | ||
Net obligation | 71.4 | 61.6 |
Effect of asset ceiling | 0.0 | 0.0 |
Net amount shown in the balance sheet at end of period | 71.4 | 61.6 |
(in \u20ac millions) | Pensions and other post-employment benefits by geographical region | ||||
December 31, 2023 | France | Germany | Hungary | Italy | Total |
Measurement of obligation | 19.5 | 49.1 | 3.0 | 0.4 | 72.0 |
Fair value of plan assets | 0.6 | 0.0 | 0.0 | 0.0 | 0.6 |
Net amount shown in the balance sheet at end of period | 18.9 | 49.1 | 3.0 | 0.4 | 71.4 |
(in \u20ac millions) | Pensions and other post-employment benefits by geographical region | ||||
December 31, 2022 | France | Germany | Hungary | Italy | Total |
Measurement of obligation | 19.5 | 41.2 | 2.2 | 0.5 | 63.4 |
Fair value of plan assets | 1.9 | 0.0 | 0.0 | 0.0 | 1.9 |
Net amount shown in the balance sheet at end of period | 17.6 | 41.2 | 2.2 | 0.5 | 61.6 |
(in \u20ac millions) | Pensions and other post-employment benefits by geographical region | ||||
Service cost for 2023 | France | Germany | Hungary | Other | Total |
Current service cost | 1.5 | 1.9 | (0.3) | 0.0 | 3.1 |
Net interest cost/(income) including administration costs and taxes paid during the period | 0.6 | 1.6 | 0.2 | 0.0 | 2.3 |
(Gains)/losses related to plan amendments, curtailments or settlements not specified in the terms of the plan | (1.0) | 0.0 | 0.0 | 0.0 | (1.0) |
Expense/(gain) recognized directly in profit or loss | 1.1 | 3.5 | (0.2) | 0.0 | 4.4 |
(in \u20ac millions) | Pensions and other post-employment benefits by geographical region | ||||
Service cost for 2022 | France | Germany | Hungary | Other | Total |
Current service cost | 1.9 | 3.0 | 0.2 | 0.0 | 5.0 |
Net interest cost/(income) including administration costs and taxes paid during the period | 0.2 | 0.7 | 0.1 | 0.0 | 1.0 |
(Gains)/losses related to plan amendments, curtailments or settlements not specified in the terms of the plan | (0.3) | 0.0 | 0.0 | 0.0 | (0.3) |
Expense/(gain) recognized directly in profit or loss | 1.8 | 3.6 | 0.3 | 0.0 | 5.7 |
(in \u20ac millions) | France | Germany | Hungary | Other | Total |
Employer\u2019s contributions (estimate) | |||||
2024 | 0.0 | 0.5 | 0.2 | 0.1 | 0.8 |
(in \u20ac millions) | France | Germany | Hungary | Other | Total |
Estimated benefit payments | |||||
2024 | 0.2 | 0.5 | 0.2 | 0.1 | 0.9 |
2025 | 0.2 | 0.9 | 0.1 | 0.0 | 1.2 |
2026 | 0.2 | 1.4 | 0.2 | 0.0 | 1.8 |
2027 | 0.5 | 1.3 | 0.3 | 0.0 | 2.2 |
2028 | 0.5 | 0.0 | 0.2 | 0.0 | 0.7 |
2029 to 2033 | 8.7 | 4.3 | 1.7 | 0.2 | 14.9 |
ACCOUNTING PRINCIPLE Restructuring provisions are recognized on the date the obligation arises, i.e., when the EUROAPI Group (i) has a detailed, formal restructuring plan and (ii) has raised a valid expectation in those affected that it will carry out the restructuring. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Balance at beginning of period | 4.0 | 2.7 |
Of which: | ||
\u00b7 Classified in non-current liabilities | \u2014 | 0.2 |
\u00b7 Classified in current liabilities | 4.0 | 2.5 |
Change in provisions recognized in profit or loss for the period | (0.9) | 2.9 |
Provisions utilized | (1.7) | (1.6) |
Currency translation differences | \u2014 | \u2014 |
Balance at end of period | 1.4 | 4.0 |
Of which : | ||
\u00b7 Classified in non-current liabilities | \u2014 | \u2014 |
\u00b7 Classified in current liabilities | 1.4 | 4.0 |
At December 31, 2023 | Total | Benefit payments by period | |||
(in \u20ac millions) | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |
Total provisions | 1.4 | 1.4 | \u2014 | \u2014 | \u2014 |
Germany | 1.3 | 1.3 | \u2014 | \u2014 | \u2014 |
United Kingdom | 0.1 | 0.1 | \u2014 | \u2014 | \u2014 |
ACCOUNTING PRINCIPLE In accordance with IAS 37 \u201cProvisions, Contingent Liabilities and Contingent Assets\u201d, EUROAPI records a provision when it has a present obligation, whether legal or constructive, as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the outflow of resources. Provisions are measured at the present value of the costs necessary to meet the obligation. If part of the obligation may be met through compensation from a third party, such compensation is recognized as a separate asset if it is certain to be received. A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence of an uncertain future event outside the control of the EUROAPI Group. A contingent liability that does not lead to a probable outflow of resources, or the amount of which cannot be reliably measured, is disclosed in the notes to the consolidated financial statements, unless the probability of an outflow of resources is remote. EUROAPI estimates provisions on the basis of events and circumstances related to present obligations and of past experience of similar situations, and to the best of management\u2019s knowledge. | ||
(in \u20ac millions) | Provisions for environmental risks (a) | Provisions for pensions and other post- employment benefits | Provisions for other long-term benefits (b) | Other provisions (c) | Total |
Balance at December 31, 2022 | 32.8 | 61.6 | 22.7 | 29.9 | 146.9 |
Additions to provisions | 1.8 | 3.1 | 8.4 | 1.1 | 14.4 |
Reversals of provisions (utilizations) | \u2014 | (1.0) | (1.6) | (0.2) | (2.9) |
Reversals of surplus provisions | \u2014 | (1.0) | \u2014 | (4.5) | (5.4) |
Transfers (d) | (4.8) | (0.6) | 1.9 | (1.0) | (4.5) |
Net interest related to employee benefits, and unwinding of discount | (0.8) | 2.3 | 0.5 | 0.8 | 2.9 |
Currency translation differences | 0.2 | 0.1 | \u2014 | \u2014 | 0.3 |
Actuarial gains and losses on defined- benefit plans | \u2014 | 7.0 | \u2014 | \u2014 | 7.0 |
Balance at December 31, 2023 | 29.3 | 71.4 | 31.8 | 26.1 | 158.6 |
ACCOUNTING PRINCIPLE In accordance with IAS 37 \u201cProvisions, Contingent Liabilities and Contingent Assets\u201d, EUROAPI records a provision when it has a present obligation, whether legal or constructive, as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the outflow of resources. Provisions are measured at the present value of the costs necessary to meet the obligation. If part of the obligation may be met through compensation from a third party, such compensation is recognized as a separate asset if it is certain to be received. A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence of an uncertain future event outside the control of the EUROAPI Group. A contingent liability that does not lead to a probable outflow of resources, or the amount of which cannot be reliably measured, is disclosed in the notes to the consolidated financial statements, unless the probability of an outflow of resources is remote. EUROAPI estimates provisions on the basis of events and circumstances related to present obligations and of past experience of similar situations, and to the best of management\u2019s knowledge. | ||
ACCOUNTING PRINCIPLE Accounts payable are measured at fair value (which equates to face value) on initial recognition, and subsequently at amortized cost. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Trade payables - third parties | 129.0 | 183.1 |
Trade payables - related parties | 30.6 | 36.6 |
Carrying amount | 159.6 | 219.6 |
ACCOUNTING PRINCIPLE Accounts payable are measured at fair value (which equates to face value) on initial recognition, and subsequently at amortized cost. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Customer contract liabilities (a) | 16.3 | 6.6 |
Current income tax liabilities | 0.3 | 11.7 |
Taxes payable, other than corporate income taxes | 1.9 | 9.7 |
Employee-related liabilities | 52.0 | 60.3 |
Provisions (b) | 17.2 | 24.8 |
Amounts payable for acquisitions of non-current assets (c) | 41.9 | 9.1 |
Other current liabilities | 9.8 | 10.0 |
Total | 139.3 | 132.2 |
(in \u20ac millions) | Non- current assets | Current assets | Total assets | Non- current liabilities | Current liabilities | Total liabilities | Market value at December 31, 2023 (net) | Market value at December 31, 2022 (net) |
Currency derivatives | ||||||||
Operating | \u2014 | 0.2 | 0.2 | \u2014 | 0.1 | 0.1 | 0.1 | 0.4 |
Financial | \u2014 | \u2014 | \u2014 | \u2014 | 0.1 | 0.1 | (0.1) | 0.1 |
Total | \u2014 | 0.2 | 0.2 | \u2014 | 0.2 | 0.2 | \u2014 | 0.5 |
December\u00a031, 2023 | ||
(in \u20ac millions) | Notional amount | Mark-to-market |
Forward currency sales | 27.7 | 0.2 |
Of which USD | 24.2 | 0.2 |
Of which GBP | 3.5 | \u2014 |
Forward currency purchases | 12.5 | (0.1) |
Of which GBP | 3.5 | \u2014 |
Of which HUF | 9.0 | (0.1) |
Total | 40.1 | 0.1 |
December\u00a031, 2023 | ||
(in \u20ac million) | Notional amount | Mark-to-market |
Forward currency sales | 7.4 | (0.1) |
Of which USD | 0.9 | \u2014 |
Of which GBP | 4.0 | \u2014 |
Of which JPY | 2.5 | (0.1) |
Forward currency purchases | 11.3 | \u2014 |
Of which USD | 0.9 | \u2014 |
Of which HUF | 10.4 | \u2014 |
Total | 18.7 | (0.1) |
ACCOUNTING PRINCIPLE Cash and cash equivalents as shown in the statement of financial position and statement of cash flows comprise cash, plus liquid short-term investments that are readily convertible into cash and are subject to an insignificant risk of changes in value in the event of movements in interest rates. The components of cash and cash equivalents shown in the statement of financial position and statement of cash flows reflect the cash held by the EUROAPI Group, which had no cash equivalents as of December 31, 2023. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Long-term debt | \u2014 | \u2014 |
Short-term debt and current portion of long-term debt | 205.4 | 100.1 |
Interest rate and currency derivative used to manage debt | 0.1 | (0.1) |
Total debt | 205.4 | 100.1 |
Cash and cash equivalents | (34.5) | (74.5) |
Net debt/(Net cash)(a) | 171.0 | 25.6 |
December 31, 2023 | December 31, 2022 | |||||
(in \u20ac millions) | Non-current | Current | Total | Non-current | Current | Total |
Bond issues | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other borrowings | \u2014 | 205.4 | 205.4 | \u2014 | 100.1 | 100.1 |
Bank credit balances | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Interest rate and currency derivative used to manage debt | \u2014 | 0.1 | 0.1 | \u2014 | (0.1) | (0.1) |
Total debt | \u2014 | 205.4 | 205.4 | \u2014 | 100.1 | 100.1 |
Cash and cash equivalents | \u2014 | (34.5) | (34.5) | \u2014 | (74.5) | (74.5) |
Net debt/(Net cash) | \u2014 | 171.0 | 171.0 | \u2014 | 25.6 | 25.6 |
(in \u20ac millions) | Current | Non-current | |||||
Total | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 and later | |
Floating-rate debt | 205.4 | 205.4 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
of which EUR | 205.4 | 205.4 | |||||
% floating-rate | 100% | ||||||
Debt | 205.4 | 205.4 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Cash and cash equivalents | 34.5 | 34.5 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
of which EUR | 20.3 | 20.3 | |||||
of which USD | 8.2 | 8.2 | |||||
of which HUF | 2.2 | 2.2 | |||||
of which GBP | 1.0 | 1.0 | |||||
of which JPY | 2.5 | 2.5 | |||||
of which CNY | 0.2 | 0.2 | |||||
of which RUB | 0.1 | 0.1 | |||||
% floating-rate | 100% | ||||||
Net debt/(Net cash) | (171.0) | (171.0) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
ACCOUNTING PRINCIPLE Cash and cash equivalents as shown in the statement of financial position and statement of cash flows comprise cash, plus liquid short-term investments that are readily convertible into cash and are subject to an insignificant risk of changes in value in the event of movements in interest rates. The components of cash and cash equivalents shown in the statement of financial position and statement of cash flows reflect the cash held by the EUROAPI Group, which had no cash equivalents as of December 31, 2023. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Long-term debt | \u2014 | \u2014 |
Short-term debt and current portion of long-term debt | 205.4 | 100.1 |
Interest rate and currency derivative used to manage debt | 0.1 | (0.1) |
Total debt | 205.4 | 100.1 |
Cash and cash equivalents | (34.5) | (74.5) |
Net debt/(Net cash)(a) | 171.0 | 25.6 |
December 31, 2023 | December 31, 2022 | |||||
(in \u20ac millions) | Non-current | Current | Total | Non-current | Current | Total |
Bond issues | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Other borrowings | \u2014 | 205.4 | 205.4 | \u2014 | 100.1 | 100.1 |
Bank credit balances | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Interest rate and currency derivative used to manage debt | \u2014 | 0.1 | 0.1 | \u2014 | (0.1) | (0.1) |
Total debt | \u2014 | 205.4 | 205.4 | \u2014 | 100.1 | 100.1 |
Cash and cash equivalents | \u2014 | (34.5) | (34.5) | \u2014 | (74.5) | (74.5) |
Net debt/(Net cash) | \u2014 | 171.0 | 171.0 | \u2014 | 25.6 | 25.6 |
(in \u20ac millions) | Current | Non-current | |||||
Total | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 and later | |
Floating-rate debt | 205.4 | 205.4 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
of which EUR | 205.4 | 205.4 | |||||
% floating-rate | 100% | ||||||
Debt | 205.4 | 205.4 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Cash and cash equivalents | 34.5 | 34.5 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
of which EUR | 20.3 | 20.3 | |||||
of which USD | 8.2 | 8.2 | |||||
of which HUF | 2.2 | 2.2 | |||||
of which GBP | 1.0 | 1.0 | |||||
of which JPY | 2.5 | 2.5 | |||||
of which CNY | 0.2 | 0.2 | |||||
of which RUB | 0.1 | 0.1 | |||||
% floating-rate | 100% | ||||||
Net debt/(Net cash) | (171.0) | (171.0) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
ACCOUNTING PRINCIPLE Cash and cash equivalents as shown in the statement of financial position and statement of cash flows comprise cash, plus liquid short-term investments that are readily convertible into cash and are subject to an insignificant risk of changes in value in the event of movements in interest rates. The components of cash and cash equivalents shown in the statement of financial position and statement of cash flows reflect the cash held by the EUROAPI Group, which had no cash equivalents as of December 31, 2023. | ||
ACCOUNTING PRINCIPLE EUROAPI derives a substantial proportion of its revenues from the supply of manufactured or distributed active pharmaceutical ingredients, in particular via its API Solutions business; it also derives revenues (albeit to a lesser extent) from the contract manufacturing of active pharmaceutical ingredients, which involves supplying certain third-party customers with high added value industrial services under CDMO contracts. Revenue from sales of manufactured or distributed active pharmaceutical ingredients The bulk of EUROAPI\u2019s revenue derives from sales of manufactured or distributed active pharmaceutical ingredients. Sales are presented within \u201cNet sales\u201d in the income statement in an amount that reflects the consideration received in exchange for satisfying performance obligations, when it is highly probable that there will be no revenue reversal. Revenue is recognized when the API product promised under the contract is delivered to the customer. EUROAPI does not recognize sales returns for any reason other than non-compliance, supported by analyses carried out by the customer on receipt of the product. Products declared as non-compliant by customers are not returned to inventories and recognized in the statement of financial position unless the active ingredients returned can be reprocessed and ultimately resold. Volume-based incentives are estimated on the basis of firm customer orders. Revenue from CDMO EUROAPI also supplies high added value industrial services under service contracts. Those services include formulation, galenic and analytical development, quality control, regulatory support, and product life cycle management. Financial consideration received from those activities are recognized as revenue, once the performance obligations defined at contract inception are satisfied (i.e., when control over the goods and services promised under the contract is transferred to the customer). At the inception of each contract, management determines what goods and services are promised under the contract, and the pattern of transfer to the customer. Revenue from CDMO is recognized on milestones achieved when they are distinct performance obligations in the contacts. Where control is transferred over time, management determines a method for measuring the progress towards transfer, which may be based on inputs (such as costs incurred) or on outputs (by reference to units produced or shipped). If it is not possible to measure progress reliably, EUROAPI recognizes revenue equal to the amount of costs incurred and rebillable to the customer. If a contract is for the supply of active pharmaceutical ingredients, the sale is recognized when the products are physically delivered. Where a contract includes a \u201cstand-ready\u201d performance obligation, EUROAPI recognizes the associated revenue on a straight-line basis over the total duration of the contract. If a contract includes a significant financing component due to the payment terms exceeding 12 months, that component is taken into account when determining the transaction price and reflected in the amount of revenue recognized. Accordingly, a financial expense is recognized where EUROAPI receives financing, and financial income where EUROAPI grants financing. Recognizing revenue from contracts with customers in accordance with the IFRS 15 revenue recognition model may require management assumptions and judgments, mainly relating to: \u25e6 measurement of progress towards meeting a performance obligation in contracts where the obligation is transferred to the customer over time, and determination of the amount of revenue to be recognized; \u25e6 determination of the duration of the contract and transaction price in cases where the contract allows the customer an extension option or an option to acquire additional goods or services, and the assessment, measurement and recognition of such option rights where material; and \u25e6 determination of the quantities specified in the contract, where the contract includes variable or optional quantities. | ||
Advance payments received in respect of industrial services contracts Payments received from customers in the pre-production phase that represent future revenues are recognized within \u201cOther current liabilities\u201d; they are then released to profit or loss once performance of the contract starts, following the same pattern as for the transfer of performance obligations to the customer in line with the approach described above in the \u201cRevenue from the supply of industrial services\u201d section. Customer contract assets and liabilities are presented in Note 5.10. Other revenues Other revenues include activities and services that are not EUROAPI core activities (i.e., not related to the manufacturing and/or distribution of APIs). | ||
ACCOUNTING PRINCIPLE Industrial services contract costs Costs incurred on industrial services contracts with customers are recognized as an asset within \u201cOther current assets\u201d in the statement of financial position when they meet the IFRS 15 capitalization criteria for contract costs, i.e., when they (i) are directly attributable to the contract; (ii) generate resources that will be used in satisfying the performance obligation defined in the contract; and (iii) are recoverable but do not relate to satisfied performance obligations. Such costs essentially comprise expenditure incurred by EUROAPI in the pre-production phase that is necessary for bringing the industrial plant and manufacturing facilities into line with the customer\u2019s specifications, and for transferring the technology to the customer. These incurred costs, which are necessary for performing the contract but do not relate to satisfied performance obligations, are recognized in the EUROAPI statement of financial position. Contract costs are systematically capitalized when they meet the criteria specified above. When production and performance of the service specified in the contract starts, the contract costs are taken to profit or loss within \u201cCost of sales\u201d over the contract performance period, following the same pattern as for revenue recognition in line with the approach described above. Cost of active pharmaceutical ingredients sold Cost of sales mainly comprises the direct and indirect manufacturing costs of active ingredients sold by EUROAPI. The manufacturing cost of active ingredients sold includes (i) direct costs of materials and solvents used in the manufacturing process; (ii) depreciation expenses corresponding to the normal use of property, plant and equipment and software for manufacturing purposes; and (iii) personnel and other costs directly attributable to production and to site operation. Capitalized contract costs recognized in profit or loss over the contract performance period Costs incurred by EUROAPI in the pre-production phase of service and industrial development contracts with customers are capitalized when (i) they do not represent a performance obligation and (ii) they are necessary for fulfillment of the contract. Those costs are then taken to profit or loss within \u201cCost of sales\u201d once the contract performance phase starts, following the same pattern as for the transfer of performance obligations to the customer and for recognizing the associated revenue. | ||
ACCOUNTING PRINCIPLE Research and development (R&D) expenses mainly comprise primary expenditures incurred by EUROAPI development platforms relating to in-house projects to develop new products and services or to improve existing products and services before they move into industrial operation. Government grants relating to research and development projects are recognized in profit and loss to offset the corresponding cost incurred. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Research and development | (29.6) | (21.8) |
Total | (29.6) | (21.8) |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Salaries | (201.6) | (187.0) |
Social security charges and defined contribution plan (a) | (66.3) | (65.0) |
Defined benefit plans, and voluntary and statutory profit-sharing schemes | (11.2) | (20.9) |
Stock options and other share-based payment expense (b) | (7.9) | (12.9) |
Other employee benefits | (16.5) | (14.0) |
Total | (303.6) | (299.8) |
December\u00a031, 2023 | |
France | 1,212 |
Germany | 801 |
Hungary | 981 |
Italy | 217 |
United Kingdom | 235 |
United States | 19 |
Japan | 15 |
China | 5 |
Total | 3,485 |
ACCOUNTING PRINCIPLE Other operating income and Other operating expenses mainly include realized and unrealized foreign exchange gains and losses on operating activities and gains and losses on disposals of non-financial assets. | ||
ACCOUNTING PRINCIPLE Other operating income and Other operating expenses mainly include realized and unrealized foreign exchange gains and losses on operating activities and gains and losses on disposals of non-financial assets. | ||
ACCOUNTING PRINCIPLE Other operating income and Other operating expenses mainly include realized and unrealized foreign exchange gains and losses on operating activities and gains and losses on disposals of non-financial assets. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Cost of debt(a) | (7.9) | (1.3) |
Interest income | 0.8 | 0.1 |
Cost of net debt | (7.1) | (1.2) |
Non-operating foreign exchange gains/(losses) | 1.5 | (1.3) |
Borrowing costs capitalized on tangible & intangible assets | 0.3 | \u2014 |
Unwinding of discounting of provisions (b) | (0.1) | 8.1 |
Net interest cost related to employee benefits | (2.8) | (1.2) |
Net interest expense on lease liabilities | (0.3) | (0.4) |
Net financial income/(expense) | (8.5) | 4.0 |
Of which financial expenses | (10.9) | (4.2) |
Of which financial income | 2.5 | 8.2 |
ACCOUNTING PRINCIPLE Income tax receivables and liabilities are presented within the line items \u201cOther non-current assets\u201d, \u201cOther current assets\u201d, \u201cOther non-current liabilities\u201d and \u201cOther current liabilities\u201d in the EUROAPI statement of financial position. Income taxes Current tax for the period includes amounts expected to be payable on taxable income in the period together with any adjustments to taxes payable in respect of previous periods, and is determined based on the tax laws enacted or substantively enacted at the reporting date in the countries in which the Group operates and generates taxable income. Deferred taxes and tax liabilities Deferred tax is determined by identifying the temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax for the period includes origination and reversal of temporary differences, remeasurements of deferred tax balances and adjustments in respect of prior periods. Deferred tax assets are recognized for all deductible temporary differences, carry forwards of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which they can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it is probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxation authority, on either the same taxable entity or on different taxable entities where there is an intention to settle the balances on a net basis. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Current taxes | (1.4) | (9.2) |
Deferred taxes | 54.4 | (9.0) |
Total | 53.0 | (18.2) |
Income/(loss) before tax | (242.8) | 3.1 |
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Income before taxes | (242.8) | 3.1 |
Standard tax rate applicable in France | 25.83% | 25.83% |
Theoretical tax income/(expense) | 62.7 | (0.8) |
Impact of permanent differences (a) | 49.4 | (5.0) |
Research tax credit | 1.0 | 0.6 |
Differences in tax rates | 4.2 | 2.7 |
Impact of non-recognized deferred tax assets | (65.6) | (16.0) |
Other | 1.3 | 0.3 |
Effective tax income/(expense) | 53.0 | (18.2) |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Deferred tax assets | 79.2 | 29.6 |
Deferred tax liabilities | (1.6) | (6.3) |
Net deferred tax asset/(liability) | 77.6 | 23.3 |
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Deferred taxes on: | ||
Consolidation adjustments (intragroup margin in inventory) | 0.1 | (0.2) |
Provisions for pensions and other employee benefits | 5.2 | 13.4 |
Accrued expenses and provisions deductible at the time of payment | 1.4 | 8.8 |
Temporary differences on PP&E and intangible assets | 60.6 | 1.7 |
Tax losses available for carry-forward | 8.4 | 2.8 |
Other | 1.8 | (3.2) |
Net deferred tax asset/(liability) | 77.6 | 23.3 |
ACCOUNTING PRINCIPLE Income tax receivables and liabilities are presented within the line items \u201cOther non-current assets\u201d, \u201cOther current assets\u201d, \u201cOther non-current liabilities\u201d and \u201cOther current liabilities\u201d in the EUROAPI statement of financial position. Income taxes Current tax for the period includes amounts expected to be payable on taxable income in the period together with any adjustments to taxes payable in respect of previous periods, and is determined based on the tax laws enacted or substantively enacted at the reporting date in the countries in which the Group operates and generates taxable income. Deferred taxes and tax liabilities Deferred tax is determined by identifying the temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax for the period includes origination and reversal of temporary differences, remeasurements of deferred tax balances and adjustments in respect of prior periods. Deferred tax assets are recognized for all deductible temporary differences, carry forwards of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which they can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it is probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxation authority, on either the same taxable entity or on different taxable entities where there is an intention to settle the balances on a net basis. | ||
ACCOUNTING PRINCIPLE Income tax receivables and liabilities are presented within the line items \u201cOther non-current assets\u201d, \u201cOther current assets\u201d, \u201cOther non-current liabilities\u201d and \u201cOther current liabilities\u201d in the EUROAPI statement of financial position. Income taxes Current tax for the period includes amounts expected to be payable on taxable income in the period together with any adjustments to taxes payable in respect of previous periods, and is determined based on the tax laws enacted or substantively enacted at the reporting date in the countries in which the Group operates and generates taxable income. Deferred taxes and tax liabilities Deferred tax is determined by identifying the temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax for the period includes origination and reversal of temporary differences, remeasurements of deferred tax balances and adjustments in respect of prior periods. Deferred tax assets are recognized for all deductible temporary differences, carry forwards of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which they can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it is probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxation authority, on either the same taxable entity or on different taxable entities where there is an intention to settle the balances on a net basis. | ||
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Deferred tax assets | 79.2 | 29.6 |
Deferred tax liabilities | (1.6) | (6.3) |
Net deferred tax asset/(liability) | 77.6 | 23.3 |
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Deferred taxes on: | ||
Consolidation adjustments (intragroup margin in inventory) | 0.1 | (0.2) |
Provisions for pensions and other employee benefits | 5.2 | 13.4 |
Accrued expenses and provisions deductible at the time of payment | 1.4 | 8.8 |
Temporary differences on PP&E and intangible assets | 60.6 | 1.7 |
Tax losses available for carry-forward | 8.4 | 2.8 |
Other | 1.8 | (3.2) |
Net deferred tax asset/(liability) | 77.6 | 23.3 |
ACCOUNTING PRINCIPLE Segment information is prepared on the basis of information communicated to the Chief Executive Officer (CEO). The CEO, who has been designated as the chief operating decision-maker (CODM) of EUROAPI in accordance with IFRS 8 \u201cOperating Segments\u201d, makes decisions on EUROAPI\u2019s strategy and on the allocation of resources. EUROAPI has identified a single operating segment that meets the IFRS 8 criteria. Reporting a single segment is consistent with the EUROAPI Group\u2019s cross-functional structure and governance arrangements; it reflects the level at which strategic and operational decisions are made, budgetary planning and resource allocations carried out, and performance measured on the basis of information provided regularly to the CODM. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 | |
Operating income/(loss) (EBIT) | (234.3) | (0.8) | |
(+) | Depreciation, amortization and impairment | 302.9 | 94.5 |
Operating income/(loss) before depreciation, amortization and impairment (EBITDA) | 68.6 | 93.7 | |
(+) | Restructuring costs and similar items excluding depreciation, amortization and impairment | 12.3 | 6.1 |
(+) | Increase in provisions for environmental risks, net of reversals of surplus provisions | 0.8 | 6.3 |
(+) | Other (a) | 11.5 | 13.9 |
Core EBITDA | 93.1 | 120.0 |
(In \u20ac million) | December\u00a031, 2023 | December 31, 2022 |
API Solutions | 727.5 | 709.1 |
CDMO | 285.8 | 267.5 |
Total net sales | 1,013.2 | 976.6 |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Large molecules | 76.5 | 98.4 |
Highly potent molecules | 96.4 | 82.2 |
Biochemistry molecules derived from fermentation | 184.1 | 148.3 |
Complex chemical synthesis molecules | 656.2 | 647.7 |
Total net sales | 1,013.2 | 976.6 |
December 31, 2023 | |||||||
(in \u20ac millions) | Total EUROAPI | Europe | of which France | of which rest of Europe | North America | Asia- Pacific | Rest of the World |
Non-current assets, excluding DTA and other non-current assets : | |||||||
- property, plant and equipment owned | 468.9 | 468.9 | 277.1 | 191.8 | \u2014 | \u2014 | 0.0 |
- property, plant and equipment Right of use | 37.2 | 36.2 | 8.1 | 28.0 | 0.2 | 0.8 | 0.0 |
- Goodwill | 4.6 | 4.6 | \u2014 | 4.6 | \u2014 | \u2014 | 0.0 |
- intangible assets | 34.2 | 34.2 | 29.4 | 4.8 | \u2014 | \u2014 | 0.0 |
December 31, 2022 | |||||||
(in \u20ac millions) | Total EUROAPI | Europe | of which France | of which rest of Europe | North America | Asia- Pacific | Rest of the World |
Non-current assets, excluding DTA and other non-current assets : | |||||||
- property, plant and equipment owned | 597.1 | 597.0 | 308.2 | 288.9 | \u2014 | \u2014 | 0.0 |
- property, plant and equipment Right of use | 42.2 | 41.3 | 6.4 | 34.8 | 0.1 | 0.9 | 0.0 |
- Goodwill | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 0.0 |
- intangible assets | 28.7 | 28.7 | 25.6 | 3.1 | \u2014 | \u2014 | 0.0 |
ACCOUNTING PRINCIPLE Segment information is prepared on the basis of information communicated to the Chief Executive Officer (CEO). The CEO, who has been designated as the chief operating decision-maker (CODM) of EUROAPI in accordance with IFRS 8 \u201cOperating Segments\u201d, makes decisions on EUROAPI\u2019s strategy and on the allocation of resources. EUROAPI has identified a single operating segment that meets the IFRS 8 criteria. Reporting a single segment is consistent with the EUROAPI Group\u2019s cross-functional structure and governance arrangements; it reflects the level at which strategic and operational decisions are made, budgetary planning and resource allocations carried out, and performance measured on the basis of information provided regularly to the CODM. | ||
At December 31, 2023 | Initial amount | Drawn amount | Net amount |
(in \u20ac millions) | |||
RCF Loan | 451.0 | 205.0 | 246.0 |
At December 31, 2023 | Total | Payments due by period | |||
(in \u20ac millions) | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |
Leases \u207d\u00aa\u207e | 0.4 | 0.1 | 0.1 | \u2014 | 0.1 |
Irrevocable purchase commitments | |||||
-\u00a0 given \u207d\u1d47\u207e | 264.4 | 137.5 | 57.4 | 13.1 | 56.5 |
-\u00a0 received \u207d\u1d9c\u207e | (91.1) | (91.1) | \u2014 | \u2014 | \u2014 |
Total - net commitments given | 173.7 | 46.5 | 57.5 | 13.1 | 56.6 |
December\u00a031, 2023 | |
France | 1,212 |
Germany | 801 |
Hungary | 981 |
Italy | 217 |
United Kingdom | 235 |
United States | 19 |
Japan | 15 |
China | 5 |
Total | 3,485 |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Short-term benefits | 7.6 | 8.8 |
Post-employment benefits | 0.3 | 0.5 |
Termination benefits | 3.4 | |
Share-based payment | -0.5 | 2.7 |
Total recognized in profit and loss \u207d\u00aa\u207e | 10.8 | 12.0 |
ACCOUNTING PRINCIPLE Transactions with Sanofi, which has exercised significant influence over EUROAPI since the IPO, or with its subsidiaries, are related party transactions. The detail of these operations is presented in the note below. Key executives also constitute a related party for EUROAPI. The company did not enter into any transactions with them in 2023. Their compensation is detailed in Note 10.5. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Net sales and other revenues (a) | 478.1 | 474.6 |
Purchases and other expenses | (150.6) | (139.8) |
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Trade receivables (Note 5.8) | 89.0 | 149.6 |
Trade payables (Note 5.14) | (30.6) | (36.6) |
Other non-current assets (Note 5.6)\u207d\u00aa\u207e | 6.6 | 13.4 |
Other current assets (Note 5.9)\u207d\u1d47\u207e | 14.1 | 16.5 |
Ernst & Young | BDO | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(in \u20ac millions) | Amount | % | Amount | % | Amount | % | Amount | % |
Audit: statutory audit of separate and consolidated financial statements | 0.9 | 88.5% | 0.7 | 81.9% | 0.4 | 100% | 0.3 | 87.1% |
Services other than statutory audit | 0.1 | 11.5% | 0.1 | 18.1% | 0.0 | 0% | 0.1 | 12.9% |
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Audit-related services | 0.0 | 0.1 | 0.0% | 0.0 | 0.1 | 0% | ||
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Tax | 0.0 | 0.0 | 0.0% | 0.0 | 0.0 | 0% | ||
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Other | 0.1 | 0.1 | 0.0% | 0.0 | 0.0 | 0% | ||
Total | 1.0 | 100% | 0.8 | 100% | 0.4 | 100% | 0.4 | 100% |
Europe | Interest (%) at December 31, 2023 | Interest (%) at December 31, 2022 | |
EUROAPI | France | 100 | 100 |
EUROAPI France SAS | France | 100 | 100 |
EUROAPI H1 | France | 100 | 100 |
EUROAPI H2 | France | 100 | 100 |
EUROAPI H3 | France | 100 | 100 |
EUROAPI Italy S.r.l | Italy | 100 | 100 |
FRANCOPIA | France | 100 | 100 |
EUROAPI Hungary | Hungary | 100 | 100 |
EUROAPI Germany | Germany | 100 | 100 |
BIANO | Germany | 100 | \u2014 |
EUROAPI UK Limited | United Kingdom | 100 | 100 |
North America | Interest (%) at December 31, 2023 | Interest (%) at December 31, 2022 | |
EUROAPI US | United States | 100 | 100 |
Asia | Interest (%) at December 31, 2023 | Interest (%) at December 31, 2022 | |
EUROAPI Japan G. K. | Japan | 100 | 100 |
EUROAPI Shanghai | China | 100 | 100 |
At December 31, 2023 | Initial amount | Drawn amount | Net amount |
(in \u20ac millions) | |||
RCF Loan | 451.0 | 205.0 | 246.0 |
At December 31, 2023 | Total | Payments due by period | |||
(in \u20ac millions) | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |
Leases \u207d\u00aa\u207e | 0.4 | 0.1 | 0.1 | \u2014 | 0.1 |
Irrevocable purchase commitments | |||||
-\u00a0 given \u207d\u1d47\u207e | 264.4 | 137.5 | 57.4 | 13.1 | 56.5 |
-\u00a0 received \u207d\u1d9c\u207e | (91.1) | (91.1) | \u2014 | \u2014 | \u2014 |
Total - net commitments given | 173.7 | 46.5 | 57.5 | 13.1 | 56.6 |
(in \u20ac millions) | December\u00a031, 2023 | December 31, 2022 |
Short-term benefits | 7.6 | 8.8 |
Post-employment benefits | 0.3 | 0.5 |
Termination benefits | 3.4 | |
Share-based payment | -0.5 | 2.7 |
Total recognized in profit and loss \u207d\u00aa\u207e | 10.8 | 12.0 |
ACCOUNTING PRINCIPLE Transactions with Sanofi, which has exercised significant influence over EUROAPI since the IPO, or with its subsidiaries, are related party transactions. The detail of these operations is presented in the note below. Key executives also constitute a related party for EUROAPI. The company did not enter into any transactions with them in 2023. Their compensation is detailed in Note 10.5. | ||
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Net sales and other revenues (a) | 478.1 | 474.6 |
Purchases and other expenses | (150.6) | (139.8) |
(in \u20ac millions) | December 31, 2023 | December 31, 2022 |
Trade receivables (Note 5.8) | 89.0 | 149.6 |
Trade payables (Note 5.14) | (30.6) | (36.6) |
Other non-current assets (Note 5.6)\u207d\u00aa\u207e | 6.6 | 13.4 |
Other current assets (Note 5.9)\u207d\u1d47\u207e | 14.1 | 16.5 |
ACCOUNTING PRINCIPLE Transactions with Sanofi, which has exercised significant influence over EUROAPI since the IPO, or with its subsidiaries, are related party transactions. The detail of these operations is presented in the note below. Key executives also constitute a related party for EUROAPI. The company did not enter into any transactions with them in 2023. Their compensation is detailed in Note 10.5. | ||
Ernst & Young | BDO | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(in \u20ac millions) | Amount | % | Amount | % | Amount | % | Amount | % |
Audit: statutory audit of separate and consolidated financial statements | 0.9 | 88.5% | 0.7 | 81.9% | 0.4 | 100% | 0.3 | 87.1% |
Services other than statutory audit | 0.1 | 11.5% | 0.1 | 18.1% | 0.0 | 0% | 0.1 | 12.9% |
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Audit-related services | 0.0 | 0.1 | 0.0% | 0.0 | 0.1 | 0% | ||
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Tax | 0.0 | 0.0 | 0.0% | 0.0 | 0.0 | 0% | ||
\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Other | 0.1 | 0.1 | 0.0% | 0.0 | 0.0 | 0% | ||
Total | 1.0 | 100% | 0.8 | 100% | 0.4 | 100% | 0.4 | 100% |